Europe Pursues Sovereignty Drive After Trump’s Electoral Setback

Welcome to the Brussels Edition. I’m Sam Stolton, EU competition reporter with Bloomberg, bringing you the latest from the EU. Make sure you’re signed up.As the US president and his MAGA cohorts lick their wounds following a shellacking in the midterm elections, the EU pushed ahead today with the effort to Trump-proof its policies, mapping out a detailed to-do list for the coming year.

Officials in Brussels stress that Europe’s drive for greater economic and security independence — accelerated by the transatlantic tensions Trump has ignited — is already too deeply embedded into EU strategy for the bloc to change course.

At the same time, the plans for 2027 — heavily influenced by Russia’s war on Ukraine — could find a more receptive audience in a Democrat-controlled Congress, where lawmakers have generally been more supportive of the government in Kyiv.

Although Trump retains enormous authority over policy thanks to his veto powers, the midterm outcome could also strengthen Brussels’ hand on trade, giving the EU more room to push for better terms on tariffs as his protectionist agenda comes under pressure stateside.

In response to a question on the US vote, the EU trade commissioner, Maroš Šefčovič, said he would continue regular contact with counterparts in Washington, and planned to push “very hard to have further progress on the steel derivatives,” which face tariffs as high as 50%.

As part of its effort to strengthen independence and boost competitiveness, Brussels’ 2027 agenda plots another wave of simplification spanning banking, energy, transport, housing and digital regulation.

“It shows the way forward for Europe to retain its ability to forge its own path,” Šefčovič said, highlighting industrial competitiveness and energy costs as priorities.

While the US-Israeli war on Iran has stoked inflation, the European Commission also wants to tackle stubbornly high costs that have hammered manufacturers. It plans to do this next year through an energy simplification package and a review of state-aid rules for the most exposed sectors.

The EU executive also wants to break down barriers that still prevent the 27-member bloc functioning like a single economy. That includes clamping down on territorial supply constraints — practices that can prevent retailers from sourcing products more cheaply across borders and which have landed consumer giants including Oreo maker Mondelez in the crosshairs of regulators.

Trump may have been bloodied by the midterms, but the forces his presidency unleashed in Europe are harder to reverse. Fundamentally, Brussels wants to build an economy less dependent on Washington — and the US leader’s political setbacks won’t change that anytime soon.

Around Europe

In a blow to Prime Minister Pedro Sánchez, Spanish Transport Minister Óscar Puente resigned, saying he was unable to remain in office after last month’s high-speed train crash that killed 69 people.Montenegro is on track to join the EU in 2028, the commission said, potentially restarting expansion as the continent seeks to expand its global influence.Euro-area inflation climbed to 4% in October — double the European Central Bank’s target — reflecting a surge in energy costs.Euro-area pay growth is poised to slow sharply in the third quarter of 2027 according to the ECB’s wage tracker, encouraging news for the bank as it battles inflation driven by the Iran war.Meta pulled in €53 billion of investor demand for its debut euro bond sale, setting a record for any corporate deal in Europe after offering generous yields to shore up funding for massive AI investments.

Seen and Heard on Bloomberg

Novo Nordisk CEO Mike Doustdar told Bloomberg TV the company is hopeful a new obesity drug called CagriSema can secure US FDA approval at the end of this year and launch at the beginning of 2027. The company boosted its financial guidance for the year once again today thanks to strong demand for both its new Wegovy pill and the older shot Ozempic.

Market SnapshotContinental AG€70.80+6.1%Market data as of 08:59 AM ET. Data is subject to provider delays.

Shares in Continental surged by as much as 6.7%, the biggest intraday gain in about six months, after the German tiremaker raised its guidance thanks to higher sales of its ultra-high-performance line and a particularly strong showing in Europe.

Coming up

Trade Commissioner Šefčovič addresses European Parliament trade committee later todayEuropean Commission President Ursula von der Leyen attends Visegrad Summit in Slovakia today and tomorrow

Final Thought

Three years after Deutsche Bank bought London broker Numis, it’s still waiting for the stock market drought to end. The German lender had hoped for a flurry of lucrative deals from Numis’ more than 160 clients at the time of the £410 million takeover, as well as new business from companies looking to list on the London Stock Exchange. The combined broking business — now called Deutsche Numis — has lost roughly a third of its clients since the deal was completed in 2023, according to data provider Adviser Rankings.