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

Tonight, France might find itself without a government. Again. With the National Assembly in disarray and the number of centrist lawmakers at a low, an unlikely alliance between the far right and leftist parties would be enough to topple Michel Barnier’s administration should they team up for a no-confidence vote. The showdown comes after the prime minister used a constitutional mechanism earlier this week to force through an unpopular budget — and as his boss, President Emmanuel Macron, insisted that he wouldn’t resign. Yet given the precarious situation of German Chancellor Olaf Scholz, whose coalition government collapsed in November, the EU might find itself without a power center right before Donald Trump assumes his second term in January. During a trip to Saudi Arabia, Macron appealed to lawmakers to set aside personal ambitions and back down.  

— Katharina Rosskopf

What’s Happening

Peace  | A potential peace deal with Russia could hinge on NATO membership for Ukraine, German Foreign Minister Annalena Baerbock said on Tuesday. Her remarks, made in advance of a meeting of NATO foreign ministers, came as NATO chief Mark Rutte asserted that ministers would focus on expediting military aid to Kyiv. Meanwhile, we’ve been told that the opening of the military alliance’s new Ukraine command center in Germany is running behind schedule.

Common Debt | The EU needs common borrowing to compete with the US, according to ECB Council member Fabio Panetta. “In the last decade, investment in research and development by European companies has been about 60% that of US companies, and the gap has been widening over time,” he said yesterday. Here’s his reasoning. 

Shedding China | The EU is taking new measures to boost domestic clean tech production and cut its dependency on imports. The Commission, which is inviting bids for €1 billion in grants for EV battery manufacturing, said it will favor projects that source less from China. New patents that originate from awarded projects will also have to be registered in EU member states. Here are the details. 

Late Return | Prime Minister Keir Starmer signaled during a meeting with Kyriakos Mitsotakis, his Greek counterpart, that the UK wouldn’t block a potential deal to return sculptures taken from an Athens temple more than 200 years ago. It’s up to the British Museum to negotiate with Greece, a spokesman for Starmer said yesterday. Since Greece gained independence from the Ottomans in 1832, it has repeatedly asked for the return of the sculptures.

Around Europe

Escalation Looming | Pro-EU protests could escalate in Georgia as a result of authorities cutting off political dialog, according to the country’s president. “When you close all the possibilities one-by-one, what you are doing is increasing the frustration of the people on the streets,” Salome Zourabichvili told us in an interview. 

Covert Accounts | TikTok executives said the social media platform removed a network covertly campaigning for Calin Georgescu, whose shock victory in Romania’s Nov. 24 presidential election threw the country into the biggest political crisis since the fall of communism. 

Behind Schedule | A landmark EU law to combat deforestation has been delayed until the end of next year, giving companies and supply chains a year to adapt to the far-reaching environmental legislation. The decision came in the wake of pushback from countries including Brazil, Indonesia and Austria, and stands to have an especially strong impact on chocolate producers.  

Trump Incoming | President-elect Trump plans to travel to Paris on Saturday to attend the reopening of the Cathedral of Notre Dame, which was devastated by fire in 2019. Macron will be the first European leader to meet with Trump since he won the US election in November. And as for Notre Dame — while it won’t look quite the same, some visitors may be pleasantly surprised.

Chart of the Day

With winter descending, Europe’s gas market is especially fragile. Inventories have seen faster-than-usual withdrawals due to cold spells earlier this year, and the market is bracing for the possible end of Russian flows across Ukraine when a transit agreement expires at the end of the year. Gas traders are taking a defensive position in light of these risks, which may impact supplies in the coming months. Consequently, natural gas prices are trading near the highest level in a year. 

Today’s Agenda

All times CET

• 11:45 a.m. NATO Secretary General Mark Rutte press conference after foreign ministers meeting 
• 2 p.m. European Parliament President Roberta Metsola meets Kosovo’s president, Vjosa Osmani-Sadriu
• 2:30 p.m. ECB President Christine Lagarde appears before European Parliament committee
• European Council President Antonio Costa delivers speech at European Economic and Social Committee