EU members, including Poland and the Baltics, are pushing back against a change that they fear will weaken sanctions on Russian coal. We’re told that the commission quietly issued new guidance that allows EU companies to help transport, finance or insure the sale of Russian coal, wood and some cement products to third countries “to combat food and energy insecurity around the world.” The loosening comes at an awkward time as Russia is hastening its annexation of the parts of Ukraine its forces still control. The Kremlin suddenly announced plans to hold referendums as soon as this weekend, even as Ukrainian forces continue their advance across several fronts.

What’s Happening
Far Away | ECB Governing Council member Madis Muller said interest rates remain far from levels that would restrict economic expansion in the euro zone. “If we try to evaluate the level at which interest rates really start to put the brakes on economic growth, then we are actually a significant step away from this still,” Muller said.

Last Bank | The Swiss National Bank will probably end Europe’s decade-long experiment with negative monetary policy this week as officials raise interest rates emphatically above zero. Economists are split on what to expect, with about half anticipating a 75 basis-point hike.

Price Curb | The EU's energy watchdog is poised to set a firm upper limit for daily power prices to help curb the impact of the energy crisis on homes and businesses. The review comes as the continent rushes to find solutions to temper soaring energy costs following Russia’s invasion of Ukraine. All the while, blackouts are looming. 

ESM Vacuum | The two remaining candidates both withdrew from the race to head the European Stability Mechanism, throwing succession plans into doubt. Neither Portugal’s former finance minister Joao Leao or Luxembourg’s Pierre Gramegna won enough support to replace Klaus Regling. The plan is still to try to select a new leader before Regling’s departure next month.

In Case You Missed It
Energy Bailouts | Germany is planning to inject about 8 billion euros into Uniper as part of a historic agreement to nationalize the gas giant in a push to stave off a collapse of the country’s energy sector. The deal is unlikely to be Europe’s last energy-sector rescue, EIB President Werner Hoyer told us.

Same Course | Italy’s right-wing coalition won’t seek an overhaul of the country’s plan for spending EU recovery funds, Forza Italia deputy head Antonio Tajani said ahead of Sunday’s general elections. “More flexibility is possible, not a revolution,” Tajani told us. The coalition has yet to detail just what changes it would seek.

Mammoth Hike | The Riksbank raised its interest rate by a full percentage point to 1.75% in Sweden’s most aggressive tightening in almost three decades. By this time next year, the rate is likely to have reached 2.5%, according to new forecasts.

Dutch Budget | The Netherlands plans to increase its minimum wage and raise taxes on corporate profits as part of a 17.2 billion-euro package of support for households aimed at easing the pain of surging inflation. The measures include a freeze on gas and electricity prices from Jan. 1. 

Meta Setback | Meta’s Facebook suffered a setback in its EU appeal of a German antitrust decision ordering an overhaul of its entire business model. Competition authorities can also consider the EU’s data regulations and other rules in its probe, an adviser to the bloc’s top court said in a non-binding opinion. Such a ruling would hit at the heart of Meta’s challenge.

Chart of the Day

Russia is likely to ship more fuel to Asia and the Middle East in the coming months as Europe tightens sanctions to step up its response to the invasion of Ukraine. The two regions have already been taking a greater share of Russian exports since the war broke out, according to data from S&P Global Commodities at Sea, highlighting the as-yet-unfinished reconfiguration of global energy flows. Now, the EU is set to bar most imports of Russian crude beginning in December, followed by a prohibition on oil products that’ll kick in in February, ramping up the pressure on Moscow to redirect more of its energy output.

Today’s Agenda
All times CET

• 8 p.m. Council President Charles Michel hosts high-level "Women in Conflict" event in New York

• 9:15 p.m. Commission President Ursula von der Leyen participates in the Global Fund Pledging Conference chaired by US President Joe Biden

• Climate chief Frans Timmermans delivers opening remarks at the Bloomberg Climate Champions Forum in New York, and participates in the Informal Leaders' Roundtable on Climate Action hosted by UN Secretary General Antonio Guterres

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