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

Western allies say US President Joe Biden never really had a plan to help Kyiv win the war against Russia. In his final weeks in office, his administration has been pouring military aid into Ukraine and upped sanctions to cripple Russia’s economy, but officials say it hasn’t been enough. Ukraine is on course for a bitter settlement where the best case might be President Volodymyr Zelenskiy effectively giving up territory in exchange for security guarantees. As he met with EU leaders during their summit, the Ukrainian leader called for a common approach between the incoming Trump administration and the EU and asked the next US president “to help us end this war.” EU leaders discussed urgent steps to support Ukraine’s army, but the summit mostly betrayed how they’re just waiting around to see what Trump will actually do.

— Samuel Stolton

What’s Happening

Orban Threat | Hungary’s Viktor Orban surprised EU leaders at the summit by saying he wants to wait until the inauguration of his ally Donald Trump before deciding whether to extend the bloc’s sanctions against Russia, we’re told. The sanctions must be renewed unanimously every six months, with the next extension due 11 days after Trump’s inauguration.

Pushing Harder | The EU should consider confiscating frozen Russian central bank assets to compensate Ukraine, Economy Commissioner Valdis Dombrovskis told us. The idea is gaining new momentum as the bloc confronts the risk of a drawdown or cutoff of US aid to Kyiv once Trump is inaugurated.

Motor Probe | Formula 1 owner Liberty Media’s $3.8 billion swoop for MotoGP has been hit by a full-scale EU probe. Brussels competition regulators said the deal raises serious concerns for the licensing of broadcasting rights in Europe.

Missing Out | The market for crypto assets is being reshaped by EU regulations set to come into force soon. The move might weaken the bloc’s appeal as Trump vies to make the US more attractive to crypto investors. 

Green Costs | New EU rules designed to cut greenhouse gas emissions from shipping could be expensive. The industry is set to be hit by new requirements for a 2% reduction in the gas intensity of energy used by vessels, which could raise costs.    

Around Europe

Pension Gamble | France’s new prime minister offered to reopen negotiations on Emmanuel Macron’s pension reforms, in a bid to placate political parties in the fractious national legislature. Francois Bayrou now risks alienating Macron and his lawmakers, who expended enormous political capital to pass the bill last year. Bayrou also said he wants to present a new cabinet over the weekend.

Fugitive Row | Hungary granted political asylum to a Polish opposition lawmaker who is wanted over alleged fraud. Foreign Minister Radoslaw Sikorski called Hungary’s decision “a hostile act” and vowed a response today. 

Soaring Telecoms | On the heels of Mario Draghi’s call for greater telecoms consolidation across the EU, the industry turned a corner this year. Huge gains in the sector have put it on course for its best performance since 2013. 

Solar Fall | The fall of Denmark’s solar park developer Better Energy is sending shockwaves through the green industry. Meanwhile, Norwegian Prime Minister Jonas Gahr Store told us that he wants a reform of Europe’s electricity market after wind generation plunged across much of the continent and power prices in Oslo surged. 

Chart of the Day

Ukraine’s pledge to stop the transit of Russian-origin gas to Europe after this year, unless it gets assurances the Kremlin won’t benefit financially, has put gas traders on edge. European gas prices jumped as much as 5.6%, the biggest daily gain in over a month. In the new year, the lack of an agreement could also result in turbulent trading. Meanwhile, Hungary claimed the US exempted gas payments from under sanctions on Gazprombank, in a relief to eastern European consumers.

Today’s Agenda

All times CET

• 9 a.m. European Commission President Ursula von der Leyen meets Swedish Prime Minister Ulf Kristersson
• Defense Commissioner Andrius Kubilius meets Kristersson
• Equality Commissioner Hadja Lahbib meets Lebanese Foreign Affairs Minister Abdallah Bou Habib

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