Brussels Edition
The French government could collapse as early as this week after the far-right National Rally supported a no-confidence vote
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Welcome to the Brussels Edition, Bloomberg’s daily briefing on what matters most in the heart of the European Union.

The French government could collapse as early as this week after the far-right National Rally promised to support a no-confidence vote over a proposed budget bill. Prime Minister Michel Barnier’s last-minute offer not to cut reimbursements for medicines wasn’t enough to get the Marine Le Pen-led party’s backing, and the country looks set for more financial and political instability. If the government falls, President Emmanuel Macron, currently in Saudi Arabia, would have to appoint a new administration — either the current one in a caretaker capacity or a new cabinet whose funding would need to be approved month by month. A new legislative election cannot be held until July. French assets came under renewed selling pressure.

Saim Saeed

What’s Happening

Border Trouble | French IT firm Atos is at the center of the EU’s long-delayed efforts to revamp how it controls the movement of travelers into and out of the bloc. The so-called Entry/Exit System has been delayed four times in five years, largely due to financial and technical problems like delayed bug fixes, missing parts, inexperienced teams and additional maintenance costs. Read our investigation here.

Restoring Trust | Hungarian opposition leader Peter Magyar is pledging to restore investor trust by unlocking EU funds and ushering the country toward euro adoption if elected in the 2026 general election, he told us in an interview. Magyar has quickly emerged as the most formidable challenger to Prime Minister Viktor Orban, and his Tisza party is now polling 11 points ahead of the ruling Fidesz.

Auto Protests | More than 60,000 German Volkswagen workers staged walkouts to pressure the company’s management after negotiations over cost-cutting measures stalled. The protests are part of a wider malaise — slow EV uptake, competition from China — that has overwhelmed Europe’s auto industry, with the CEO of Stellantis stepping down the day before as its profits slumped.

Intelligent Drones | German startup Helsing, known for developing AI software for fighter jets and unmanned aerial vehicles, is now developing its own attack drones that can carry ammunition and navigate without GPS or pilot instructions. The company is pitching them to Ukraine and NATO allies, and claims its technology can solve the problem of Russian electromagnetic jamming.

Around Europe

Court Clearance | Romania’s top court rejected a challenge that sought to annul the first round of the presidential election after anti-establishment and pro-Russian candidate Calin Georgescu unexpectedly placed first. The ruling clears Georgescu to face opposition leader Elena Lasconi in a Dec. 8 runoff.

Georgian Protests | Prime Minister Irakli Kobakhidze ruled out talks with the opposition as pro-EU protesters clashed with law enforcement for a fourth day. The protests started after the ruling Georgian Dream party said it would delay accession talks with the EU until 2028. The party won another four-year term in October, which the opposition claims was fraudulent.

Defense Fund | EU countries are nearing a deal on a new €1.5 billion fund to help bolster the bloc’s defense industry and assist Ukraine over the next three years, we learned. Talks on the fund will likely conclude by the end of the year, and would allow purchases of military equipment consisting of up to 35% of components from outside the EU.

Surveillance Probe | A Polish central banker was detained for questioning regarding the previous government’s alleged use of Pegasus spyware. Piotr Pogonowski, a member of the central bank’s management board, used to run the country’s Internal Security Agency between 2015 and 2020. He previously refused to testify before a parliamentary committee citing security concerns.

Carbon Capture | A new carbon-capture plant installed at a cement factory in Norway is ready to go, according Heidelberg Materials, its German owner. The facility is expected to capture about 400,000 tons of carbon dioxide annually and move them to a storage facility near Bergen. The EU says hundreds of millions of tons of CO2 needs to be captured in order for the bloc to reach net zero by 2050. 

Chart of the Day

Sick days are on the rise in Europe, a phenomenon that can partly explain the continent’s lagging productivity. Norwegian workers take more sick days than anyone else and absences are at the highest level in 15 years. Critics blame an overly generous welfare system, where spending on health-related benefits outranks other developed nations. Workers get their full salary for a year, with a cap at somewhat higher than the average wage, and then two thirds of former income after that. The Norwegian government has listed reducing sick leave as a priority.

Today’s Agenda

All times CET

  • 10:30 a.m. NATO Secretary General Mark Rutte holds a press conference before the alliance’s foreign ministers meet; Rutte meets with US Secretary of State Antony Blinken at 1:45 p.m.
  • European Council President Antonio Costa hosts Western Balkan leaders over dinner
  • TikTok representives answer questions about the popular Chinese app’s compliance with the EU’s content moderation laws in the European Parliament’s internal market committee

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