Europe will edge closer today to putting in place rules to rein in what it sees as anti-competitive behavior by Big Tech with a final vote in the European Parliament’s internal markets committee. After a long battle between center-right and left-leaning politicians, the committee will vote on the EU’s Digital Markets Act that could particularly hit the five biggest American tech companies — Google, Amazon, Facebook, Apple and Microsoft, collectively known as GAFAM. Others likely to be affected are travel site Booking.com and, down the road, online marketplaces Zalando and Alibaba. After a signoff from the plenary next month, parliament will start negotiations with the Commission and 27 member states that could put more companies under the purview of the new rules. But the biggest battles have now shifted to the Digital Services Act. Key parliamentarians this afternoon will grapple with how far to limit targeted advertising and push algorithm transparency. - Jillian Deutsch and Katharina Rosskopf

What’s Happening

Travel Boosters | European affairs ministers kick off talks today on how to update digital Covid-19 certificates and deal with travel inside and outside the bloc, EU diplomats tell us. Amid varied approaches by member states, the Commission is due to submit proposals tomorrow on revising recommendations on non-essential travel between the EU and third countries.

Delayed Rules | Europe will likely delay a vital plank of its anti-greenwashing regulation for fund managers. Authorities overseeing the process are being slowed down by the sheer complexity of the task, we’re told. Technical standards may not be in place until the end of next year. That would be a six-month delay compared with a previous deadline, which was already later than the original plan.

Foreign investment | EU governments are increasingly checking if foreign investors might undermine public security — rules initially aimed at China that were broadened in sensitive industrial areas. The Commission is looking into how governments apply the guidelines and is due to issue its first report this week on some 400 deals screened since October 2020. The U.S. is the source of most foreign investment, followed by China, Canada and United Arab Emirates, it will say. 

Consulting EU | The European Parliament is looking into the Commission’s increasing reliance on pricey consulting firms to conduct studies or provide technical assistance. Lawmakers are concerned about the “significant increase” in resources assigned to Deloitte, Ernst & Young, KPMG and PricewaterhouseCoopers. By our estimates —  based on the EU’s financial transparency system —  the Commission spent at least 618 million euros on such services between 2016 and 2020.

Tackling Emissions | The EU is set to drastically ramp up efforts to curb emissions of methane, which has the potential for trapping 80 times more heat than carbon dioxide, according to a draft document we’ve seen of legislation to be unveiled next month. Meanwhile, the bloc also wants to step up its use of technology to remove CO2 from 5 million tons from the atmosphere annually, according to another document.

In Case You Missed It

Bundesbank Warnings | German inflation may spike even higher than previously forecast this month with a rate just under 6%, according to the Bundesbank. An increase of the magnitude seen by the German central bank is likely to intensify focus on the ECB. The current surge — partly linked to spiking energy prices — has stoked public attention, with both the Council of Economic Advisers and national tabloid Bild warning on ultra-loose monetary policy.

Worst Spike | Outgoing German Chancellor Angela Merkel said the latest surge in coronavirus infections is worse than anything Germany has experienced so far and called for tighter restrictions to help check the spread. Her health minister was even more grave, saying that “just about everyone in Germany will probably be either vaccinated, recovered or dead” by the end of this winter.

Serious End | The ECB is “serious” about ending its emergency bond-buying program in March and may not need to expand regular asset purchases to cover the shortfall, according to Governing Council member Francois Villeroy de Galhau. The Bank of France chief’s reluctance to commit to more stimulus comes amid a bout of elevated inflation — but also as Europe’s economic outlook is clouded by a surge in Covid infections that have triggered lockdowns in some countries.

Missing Plans | The ECB warns that most lenders it oversees have yet to produce concrete plans showing how they will change their business strategies to account for climate change. While around half the 112 institutions said in a survey that they are “contemplating setting exclusion targets for some segments of the market, only a handful of them mention actively planning to steer their portfolios on a Paris-compatible trajectory,” Executive Board member Frank Elderson said in a blog post yesterday. 

Orban Speaks Up | Hungarian Prime Minister Viktor Orban wants the EU to end lawsuits targeting the country’s asylum procedures. Looking at the situation on the Belarusian border, he demands the Commission adapt the legal framework “to the new realities,” he wrote in a letter to President Ursula von der Leyen. 

Puzzling Boris | U.K. Prime Minister Boris Johnson raised more than one pair of eyebrows yesterday when he quoted Lenin, compared himself to Moses and asked his audience if they had ever visited the Peppa Pig World in southern England. Talking to the Confederation of British Industry he was heard making car engine sounds and muttering “blast it” when he lost his place in the speech. The purpose of the exercise? Convincing voters he was serious about his “leveling up” agenda.

Chart of the Day

Europe is growing increasingly reliant on coal to keep the lights on as the weather turns cold, sending the cost of polluting to a record. Carbon prices exceeded 70 euros for the first time ever as utilities turn to the dirtiest of fossil fuels. Power plants in the U.K. are burning the most coal since the beginning of the month to keep the lights on with sub-zero temperatures forecast for major cities this week.

Today’s Agenda (All times in CET.)

• 3:30 p.m. Readout of the College meeting between top diplomat Josep Borrell and Commission Vice President Margaritis Schinas
• Commission President Von der Leyen participates in the EP Plenary debate on the conclusions of the recent European Council meeting
• European Affairs ministers meet in Brussels