Brussels Edition: Eyes on Moscow

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

While EU foreign ministers gather in Croatia today to discuss risks of a new refugee crisis, the meeting that really matters will be taking place further east — in Moscow. Vladimir Putin and Recep Tayyip Erdogan will try to patch up relations after the deadliest battles yet between Turkish and Russian-backed Syrian forces. Alarmed by Erdogan's threat to let millions of refugees cross from Turkey into Greece, the EU will be watching nervously from the sidelines. Another location that really matters is Washington, where the U.S. government is weighing a request by Erdogan for extra Patriot air-defense batteries, currently supplied to Turkey by Spain. Such an offer from within NATO — while largely symbolic — could persuade Erdogan to back down on the refugee front, but his relations with western allies have soured so much that there's no guarantee any of them would be willing to make the gesture.

What's Happening

Amazon Hearings | Amazon heads to the EU courts today for two days of hearings to fight a 250 million-euro fine over fiscal deals with Luxembourg that the Commission said violated state-aid rules. The same judges who'll decide on this bill have so far failed to give clear guidance on the legality of the bloc's crackdown on such tax agreements amid multiple appeals. 

Virus Response | After EU finance ministers said they stood ready to take further coordinated policy action — including fiscal measures — to manage the coronavirus impact, focus will shift to their top aides. The latter will meet in Brussels today to discuss the outbreak and plan the finance chiefs' next gathering later this month, when they'll reassess the situation and any next steps needed. 

Hungarian Limits | An adviser to the EU's top court will today give a glimpse into the Commission's chances of winning its challenge of a Hungarian crackdown on foreign-funded colleges. The George Soros-founded Central European University in Budapest said a ban on issuing U.S. diplomas was aimed at shutting it down and has relocated these degree programs to Vienna.

Cheesy Spat | Cypriot cheese makers fighting for the exclusive right to the “Halloumi” name will eagerly anticipate a ruling from the EU's top court today over whether a Bulgarian company can get a trademark of “BBQLOUMI.” Spats like this one are not new to the bloc, where similar cases have ranged from Balsamic vinegar to Spain's Queso Manchego.

In Case You Missed It

No Bailout | EU officials are weighing a new crackdown on bank bailouts after governments exploited loopholes in rules passed in the wake of the financial crisis. A key tool that could be up for review is the so-called “precautionary recapitalization” rule used to prop up Italy's Monte dei Paschi di Siena, as officials seek to tighten limits on taxpayer funds for institutions close to collapse.

Green Law | The EU unveiled its plans to commit the region to become the first climate-neutral continent by 2050, without setting intermediate targets at this stage. That triggered criticism — including from Greta Thunberg, who condemned the lack of more rapid action — highlighting the challenges policy makers face as they seek to balance business interests with Europe's green ambitions.

5G Beef | As countries in Europe grapple with U.S. claims that Huawei's gear could open them up to Chinese spying, Switzerland is quietly building a network with the company. The Swiss have become world leaders in the rollout of 5G technology with the early sprouting of private and public networks. Their latest secret: cows. 

School Holiday | Italy is set to ban all public events and will close schools and universities until March 15 as it redoubles efforts to curb the spread of the coronavirus epidemic. The ban would be another blow for Italy, where travel and tourism generate more than 13% of economic activity, further hitting a country that was already heading into recession.

Chart of the Day

The tourism business faces a growing threat from the outbreak of the coronavirus. Many of the Chinese travelers who have driven the industry's expansion were already staying home, but the global spread now means that Germans and Belgians are rethinking ski trips to Italy and Japanese are canceling visits to Bali. At stake is the $1.7 trillion in revenue that international tourism generated in 2018, according to the UN World Tourism Organization.

Today's Agenda

All times CET.

• 8 a.m. EU economy chief Paolo Gentiloni speaks at EPC event in Brussels
• 9:30 a.m. EU top court rules in trademark spat between Cypriot Halloumi cheese makers and a Bulgarian company
• 9:30 a.m. Hearing at EU lower court on Amazon's 250 million-euro fine over allegedly illegal tax rulings in Luxembourg
• 9:30 a.m. EU top court adviser gives opinion in Commission challenge against Hungary over restrictions imposed on foreign education institutions
• 4:15 p.m. CEPS Ideas Lab event on Brexit and financial services with officials from central banks, Commission, U.K. treasury
• Two-day informal meeting of EU foreign ministers starts in Zagreb
• Commission's Ursula von der Leyen, Valdis Dombrovskis, Maros Sefcovic and Paolo Gentiloni deliver speeches at the BusinessEurope Day 2020
• EU trade chief Phil Hogan delivers an address at the Transatlantic Conference in Dublin
• Commission unveils its gender equality action plan, including a pay transparency initiative
• Senior euro-area finance ministry officials to discuss Greece, coronavirus impact, preparations for IMF meetings

--With assistance from Stephanie Bodoni, Zoe Schneeweiss and Jonathan Stearns.

To contact the editor responsible for this story: Caroline Alexander at calexander1@bloomberg.net, Chris Reiter

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