Brussels Edition: A stronger shield

Welcome to the Brussels Edition, Bloomberg’s daily briefing on what matters most in the heart of the European Union

The EU is emerging from summer looking stronger in some significant ways. After faltering early on the vaccine rollout, the bloc has hit a key milestone of full inoculation of 70% of the adult population. And recovery funds are starting to reach member states. But a less-than-orderly retreat from Afghanistan is raising fears of a new refugee wave, prompting fresh demands for a European military force. EU leaders are also continuing to haggle with Poland and Hungary over rule-of-law and LGBTQ disputes that will keep officials under pressure. And all the while, the pandemic is far from over, with the delta variant continuing to frustrate back-to-normal life. This week, EU finance ministers and central bank governors will meet in Ljubljana to discuss simulations of fiscal scenarios to ensure a resilient recovery. The Brussels Edition is back five days a week to guide you through what promises to be an interesting end to the year. - Katharina Rosskopf

What’s Happening

Protect the Vroom | Italy is in talks with the EU to shield Ferrari, Lamborghini and other supercar makers from the planned phase-out of combustion-engine vehicles by 2035. “In the gigantic cars market there is a niche, and there are ongoing discussions with the EU Commission,” Roberto Cingolani, Italy’s minister for ecological transition, told us.

French Challenger | Former French Industry Minister Arnaud Montebourg is running for president. The Socialist Party member wants to avoid “the pain” of a second term for President Emmanuel Macron or “the danger” of a first mandate of Marine Le Pen, he said over the weekend — see what his plans are here.

Boost Ahead | Moderna submitted for a conditional marketing approval with the European Medicines Agency for a booster dose of its Covid-19 vaccine, even as the EMA said there’s no urgent need for widespread use of such shots. People with weakened immune systems, however, should be offered a third dose.

Money Talks | EU finance ministers speak twice this week: they hold an informal video call today to take stock of implementation of the Recovery and Resilience Facility. On Friday and Saturday, ministers then meet in person in Ljubljana and will be joined by central bank governors to discuss the economy’s revival from the pandemic.

In Case You Missed It

Merkel Wades In | With less than three weeks until the German election, things are looking bleak for conservative candidate Armin Laschet, and Chancellor Angela Merkel yesterday weighed in to try to help revive his fortunes against the resurgent Social Democrats. Laschet has run his state of North Rhine-Westphalia "very successfully" and is therefore well-suited to the job of running Germany, Merkel said in a rare direct intervention.

Not So Fast | Tightening euro-area monetary policy too soon would be a “big mistake,” Economy Commissioner Paolo Gentiloni told us in an interview in his native Italy. “The mainstream consensus is on the fact that this inflation is still a temporary phenomenon,” he said. Here’s what else he had to say.

Jab Deal | AstraZeneca and the EU ended months of bitter legal wrangling over Covid-19 vaccine supplies with a deal to provide millions of extra doses. The dispute escalated into a blame game earlier this year, with both sides trading accusations of bad faith in a Brussels courtroom.

European Chips | France, Italy, Germany, and possibly other EU member states should invest “in a coordinated manner” to give Europe more independence in the semiconductor market, French Finance Minister Bruno Le Maire told us. The effort will need “billions of euros on the table,” he warned in an interview from the Ambrosetti forum in Cernobbio.

Chart of the Day

More than 70% of adults in the EU are fully vaccinated against Covid-19, a success for the bloc after its initial stumbles. But there are stark differences across countries, with a clear east-west dividing line. The lowest figures are in Romania, with 32% fully vaccinated, and Bulgaria, which has only barely broken through 20%.

Today’s Agenda (All times CET.)

  • 11.30 a.m. European Council President Michel, French President Macron to meet in Paris
  • 2.30 p.m. Jens Stoltenberg remarks at NATO Conference on Arms Control, Disarmament and WMD Non-Proliferation
  • Informal video conference of finance and economy ministers
  • German Finance Minister and SPD chancellor candidate Scholz meets Macron in Paris
  • Competition Commissioner Vestager speaks to the European Parliament Special Committee on EU digital legislation
  • Agriculture and fisheries ministers meet in Slovenia