A spat between Europe and the US over the impact of green subsidies on European industry is bringing trade diplomacy back into focus. French President Emmanuel Macron hosted a dinner with top European business leaders last night, where he was due to urge them to pick Europe over the US for investment, as he tries to counter the lure of the US’s Inflation Reduction Act and its renewable-energy subsidies. It’s an issue EU trade ministers will continue to discuss on Friday in Brussels, after some member states raised concerns on the impact it could have on industry, and the Commission warned of potential retaliation. But elsewhere, the US and EU are aiming to work together to counter what they call non-market policies, including in China, according to a draft statement ahead of high-level talks due in Washington next month. - Max Ramsay

What’s Happening

Second Thoughts | Britain’s Brexit hardliners were confronted with a Sunday Times story last weekend that said senior figures in Prime Minister Rishi Sunak’s government are seeking a closer “Swiss-style relationship” with the EU.  The idea marks a departure from the recent bombastic “have cake and eat it” era and comes as the UK faces a prolonged recession and deep cost-of-living crisis.

Raising Tariffs | Ukraine plans to raise transit fees for Russian oil through the Druzhba pipeline to eastern Europe next year. The operator of Ukraine’s oil pipeline network informed its Russian counterpart that “continued destruction of the Ukrainian energy infrastructure has led to a significant shortage of electricity, an increase in its costs, a shortage of fuel, spare parts,” according to a letter we’ve seen from the company. 

Russian Travel | Russians are increasingly traveling back to Spain, despite restrictions imposed by the EU on flights from the country after its invasion of Ukraine. The number of short-term Schengen visas Spain granted to Russian nationals so far this year has almost tripled from the same period a year ago, according to Spanish foreign ministry data we’ve seen.

Escalation Warning | Kosovo rejected an EU proposal to ease tensions with neighbor Serbia in what Josep Borrell warned was a step that could stoke an already-tense standoff between the former wartime foes. The EU foreign policy chief said that Serbian President Aleksandar Vucic agreed to a proposal at an emergency meeting yesterday, but Kosovo Prime Minister Albin Kurti refused. 

Housing Downturn | Sweden’s home-price decline accelerated in October, showing what may lie ahead for other developed economies. The country has now seen home prices drop by about 14% from a peak earlier this year, according to Valueguard. On the rental front, Ireland is facing its biggest-ever squeeze, with tenants having to pay 14% more on average in the third-quarter, according to property website daft.ie.

In Case You Missed It

Energy Risk | Europe’s leading energy exchanges warned that a planned cap on natural gas prices poses a serious threat to the region’s security of supply, and will do little to achieve its goal of lowering energy costs. The Commission hasn’t yet unveiled the exact parameters for the last-resort mechanism but wants to outline its regulation this week. 

Twitter Turmoil | Twitter’s head of France announced his departure in a tweet on Sunday as Elon Musk laid off more workers from the sales side. Damien Viel, who confirmed his departure in a separate message to Bloomberg, had led the region for about seven years.

Election Watch | Bulgaria’s president said he’s preparing to schedule a snap election in March if needed, signaling that a political stalemate is pushing the Balkan state toward its fifth general election in less than two years. Following inconclusive October elections, no party has yet been able to find sufficient support for a cabinet.

Qatar Controversies | Seven national football teams, including four from the EU, will not wear a rainbow armband showing solidarity with LGBTQ rights, bowing to pressure from FIFA. The teams said they made the decision in light of a threat that captains who wear the armbands may face “sporting sanctions.”

Fraught Past | For more than 160 years, Credit Suisse’s stone-clad headquarters on Zurich’s moneyed Paradeplatz has exuded power, stability and quiet wealth. Those days are over, and the bank’s prospects of moving on depending overcoming the deep roots of its dire condition.

Chart of the Day

With just two weeks to go until EU sanctions come into force, Russia has already lost more than 90% of its market in the bloc’s northern countries. Russia shipped just 95,000 barrels a day to Rotterdam — its only remaining European destination for seaborne deliveries outside the Mediterranean/Black Sea basin — in the four weeks to Nov. 18. That’s down from more than 1.2 million barrels a day sent to the region’s ports each day in early February.

Today’s Agenda (All times CET.)

• College of Commissioners meets in Strasbourg
• European Parliament plenary continues, including a ceremony to mark 70 years of the institution at 11:30 a.m.
• EU Council President Charles Michel is in Ghana and participates in an Accra Initiative conference
• 4:30 p.m. EU foreign policy chief Borrell speaks to parliament on EU-China relations, the Ukraine grain deal and the Iran crackdown