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

Volkswagen is inching closer to widespread walkouts as executives and unionists remain divided over how to carry out the German automaker’s massive restructuring, which has gained urgency in the face of slumping EV demand, high operational costs and fierce Chinese competition. A third round of negotiations between the two sides kicks off today, after labor leaders offered €1.5 billion in additional cost cuts. In another sign of the challenges facing Europe’s car industry, Ford announced it plans to cut 4,000 jobs in the region by the end of 2027, around 14% of its workforce. The reductions will primarily hit operations in Germany and the UK, pending consultations with unions and governments.

— Max Ramsay

Storm Shadow | Ukraine’s armed forces fired British cruise missiles at military targets inside Russia for the first time, a Western official told us, expanding the use of Western-provided long-range weapons as the 1,000-day conflict enters a new phase. The UK approved their use in response to the deployment of North Korean troops by Russia. 

NATO Pick | President-elect Donald Trump has picked Republican lawyer Matthew Whitaker to be the US Ambassador to NATO. Whitaker was a trusted ally to Trump in his first term and served for a time as Acting Attorney General. Trump has regularly criticized the defense alliance and assailed NATO allies over their defense spending.

Funding Curbs | The EU, US and other countries are hammering out a plan to cut off tens of billions of dollars for foreign oil and gas projects, aiming to land a deal at an OECD gathering by Thursday, we’re told. The push is an about-turn by the US just weeks before Trump moves into the White House and is an effort to lock in a hard-to-reverse climate policy. 

Budget Approval | The commission is set to approve France’s budget for next year but will seek more clarity on how Paris will control longer-term expenditure before granting additional leeway on the timeframe to balance the the country’s public accounts. The green light for the 2025 plans would deliver a boost for Prime Minister Michel Barnier as he struggles to get them through the French parliament.

ECB Caution | Amid rising trade tensions and global conflicts, it’s “crystal clear” the European Central Bank will reduce interest rates further but officials shouldn’t rush the process, Vice President Luis de Guindos told us. The governing council is expected to lower interest rates once again at its December policy meeting, but a surge in a key gauge of euro-zone wages could dampen expectations for a spate of cuts in 2025.

Election Gambit | Ireland heads to the polls next week, with incumbent Prime Minister Simon Harris hoping to capitalize on the country’s strong economy to secure another five years in power. Here’s our essential briefing on how the race is shaping up, and what’s at stake.

Property Rebound | Germany’s struggling real estate market is showing tentative signs of recovery, with a year-on-year increase in large deals in the first nine months of 2024. Real estate broker Cushman & Wakefield is expecting commercial transactions to rise 16% for the full year. The office market continues to be stuck in a post-pandemic slump, with uncertainty over future demand for workspace. 

Russia Deal | Hungary is moving toward allowing an increase in the cost of a contract with Russia to expand its sole nuclear power station a decade after the deal was signed. Hungary agreed a deal with Russia’s Rosatom in 2014 but the expansion has been plagued by delays, including over permits, the pandemic and Western sanctions.

Football Fever | Italian football team Hellas Verona is a potential takeover target for a group of US-based investors, we’re told, with Texas-based Presidio Investors raising up to €75 million for a controlling stake in the Serie A team. In recent years, American investors have been clamoring to buy up European soccer clubs.

Denmark’s military is staying near a Chinese ship that may be linked to damaged data cables in the Baltic sea. The bulk carrier, Yi Peng 3, was in the vicinity when two undersea data links were cut on Sunday and Monday. One connected Finland to Germany and the other Lithuania and Sweden. It’s the second such incident in the Baltic Sea in just over a year. 

All times CET

• EU trade ministers meet in Brussels, with arrivals from 9 a.m. and press conference due at 2:30 p.m.
• Parliament President Roberta Metsola meets with French Prime Minister Michel Barnier in Paris
• EU’s chief diplomat, Josep Borrell, visits Jordan and holds joint press conference with Foreign Minister Ayman Safadi

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