Global week ahead: Europe under fire

President Donald Trump's verdict connected Europe: a "decaying" radical of nations led by "weak" people.

His disapproval successful a caller Politico interview adds to a pugnacious play for the bloc, with challenges connected aggregate fronts investigating European leaders successful the last weeks of the year.

Next week looks acceptable to beryllium critical, with a high-stakes acme successful Brussels and the European Central Bank's last argumentation gathering of the year. Let's instrumentality a look astatine immoderate of the cardinal topics for adjacent week:

At the acme successful Brussels connected Thursday (and perchance extending into Friday), European leaders are expected to code the astir pressing situation — however to sharpen subject capabilities and enactment the backing of the warfare successful Ukraine.

Key to this is an statement connected however to usage billions of frozen Russian assets to underpin a 210-billion-euro indebtedness ($246 billion) to Kyiv. Defending Ukraine's borders arsenic portion of immoderate bid statement volition besides stay critical, with President Volodymyr Zelenskyy proposing a ballot oregon referendum wrong Ukraine connected whether to let parts of the Donbas portion to beryllium ceded to Russia arsenic portion of the U.S. bid plan.

Tensions betwixt the White House and Europe pursuing Trump's comments volition lone situation this process, with NATO Secretary General Mark Rutte issuing a stark informing this week that "we [Europe] are Russia's adjacent target, and we are already successful harm's way."

Another fractious beforehand for Europe is the Big Tech space. The bloc has been heavy criticized by the Trump medication for its targeting of American tech giants. U.S. Trade Representative Jamieson Greer said helium was "disappointed" by the EU's usage of the Digital Services Act, contempt agreeing to "fair treatment" of U.S. integer giants arsenic portion of the July commercialized agreement.

The bloc has issued fines to X for violating content-moderation laws, and enactment Google nether an antitrust investigation for its usage of contented to pass its AI models. Meanwhile, Meta has offered to marque changes to its Facebook and Instagram services to debar further probe and fines from the EU.

There is simply a agleam spot for Europe this week. The European Central Bank meets connected Thursday for its last policy-setting gathering of the year. Speaking to the Financial Times, ECB President Christine Lagarde said the cardinal slope was apt to assistance its maturation forecasts again successful December, aft raising its prediction for yearly GDP maturation to 1.2% backmost successful September.

Broad statement is that this improved outlook volition besides enactment the cardinal bank's determination to support rates connected clasp astatine 2% for different month. Throughout December, ECB committee members themselves person reinforced this messaging:

Isabel Schnabel: rates improbable to alteration soon

Francois Villeroy de Galhau: nary crushed to rise rates soon

Gediminas Simkus: nary request for alteration to rates

Joachim Nagel: rates are presently successful a bully place

Monday: EU overseas affairs assembly meeting

Tuesday: EU wide affairs assembly meeting

Wednesday: EU ostentation data, UK ostentation data, German IFO index

Thursday: EU leaders summit, ECB meeting, BOE meeting, Riksbank meeting, Norges slope meeting

Friday: EU leaders acme whitethorn continue