The EU’s Achilles’ Heel

The Israel-Hamas war is testing the European Union [View in browser]( [Bloomberg]( Welcome to Balance of Power, bringing you the latest in global politics. If you haven’t yet, sign up [here](. The aftershock of the Israel-Hamas war is playing out across Europe and laying bare the continent’s panic over how to stop the conflict from spreading. Israel’s buildup to a retaliatory invasion of the Gaza strip after Hamas’s Oct. 7 attack left 1,400 dead is a humanitarian catastrophe unfolding in real time, with thousands of Palestinians already losing their lives. The diplomatic back channels are in overdrive, with an emergency European Union videoconference today to iron out the 27-member bloc’s mixed messages on the crisis. Those include an early reversal over a suspension of aid to the Palestinians and criticism from some officials that EU Commission President Ursula von der Leyen overstepped and was freelancing on foreign policy for the bloc. German Chancellor Olaf Scholz is visiting Israel today. Foreign policy was always the EU’s Achilles’ heel, one exposed in the 1990s when the region collectively fell short in the Balkans. Decades later, while Europe has remained largely united against Russia’s invasion of Ukraine, it has yet to find a common response to the Middle East crisis. All this at a time when events playing out in the region are resonating across Europe, with cities placed on high alert for possible extremist acts. Jewish communities are vulnerable, Muslim ones are feeling exposed. In Brussels, police shot and killed a man suspected of murdering two Swedish football fans as they investigate a possible terrorist-related motive. In the northern French town of Arras, a teacher was fatally stabbed by a Muslim perpetrator. In London, pro-Palestinian protests drew a heavy police presence. On the diplomatic front, the US has [once again taken center stage](, with President Joe Biden due to visit the region tomorrow. All the while, the EU and the UK seem lost in the conversation. — [Flavia Krause-Jackson]( Protesters flee from tear gas during a pro-Palestinian rally in Lyon, France, on Oct. 11. Photographer: Olivier Chassignole/AFP/Getty Images Global Must Reads US Secretary of State Antony Blinken has spent the past week [criss-crossing the Middle East]( to drum up support for Israel’s right to retaliate for the Oct. 7 attack by Hamas. Iain Marlow reports that he’s found little sympathy in Arab capitals where leaders were more focused on the humanitarian crisis unfolding in Gaza. Russian President Vladimir Putin arrived in Beijing today to attend Chinese President Xi Jinping’s Belt and Road Initiative Forum, a show of their burgeoning ties even in the face of Putin’s war on Ukraine. But as Rebecca Choong Wilkins and Colum Murphy report, there is [disquiet]( among some experts and academics in Beijing who think China is getting little from their relationship. Xi and Putin following talks in Moscow on March 21. Photographer: Pavel Byrkin/AFP/Getty Images Representatives of President Nicolas Maduro are expected to sign a [deal]( in Barbados today with Venezuela’s US-backed opposition that could open the door to sanctions relief in exchange for basic electoral guarantees. Here’s what’s on the [table](, including why a breakthrough is in sight. India’s Supreme Court refused to [rule on legalizing same-sex marriage](, saying it’s an issue for Parliament, a move that allows the country’s current limits to stand for the foreseeable future. India decriminalized homosexuality in 2018 but has yet to extend marriage rights to the LGBTQ community. EU member states failed to agree on a deadline to phase out fossil fuel subsidies ahead of the COP28 climate summit in Dubai next month. Green groups [regard the result as disappointing](, since the EU is typically one of the most ambitious regions in tackling the causes of climate change. A Canadian general criticized the Chinese air force over an incident off the coast of the Asian nation where a fighter jet [cut off a patrol plane]( and dropped flares in its path. Jim Jordan closed in on the votes he needs to be the next US House speaker, but a [band of Republican holdouts]( continues to threaten the hardline conservative’s bid. South Africa is set to briefly overtake Nigeria and Egypt as [the continent’s largest economy]( next year, International Monetary Fund forecasts show. Washington Dispatch The Senate Judiciary Committee today will examine a rapidly shifting and confusing phenomenon that has transformed American college sports: NIL, or name, image and likeness. Because of federal court decisions and pressure from state lawmakers, the National Collegiate Athletic Association has made two tectonic changes that not only freed players to change colleges without having to sit out for a season, but allowed them to earn money through NIL sponsorship deals. The committee points out that NIL policies have been left up to states, leading to a “patchwork” of rules. Some members of Congress want a federal standard. In the new sports landscape, some players have signed multimillion dollar contracts, team rosters have been gutted and business opportunities beckon. In August, the new chief executive officer of OneTeam Partners, which represents commercial and licensing rights of more than 10,000 college and professional athletes, said the organization aspired to a long-term valuation of $10 billion. Last year, it was valued at about $2 billion. One thing to watch today: House Republicans plan to vote on the nomination of Jordan as speaker. [Sign up for the Washington Edition newsletter]( for more from the US capital and watch Balance of Power at 5pm ET weekdays on Bloomberg Television. Chart of the Day Prime Minister Abiy Ahmed warned that Ethiopia’s lack of access to a port on the Red Sea is a potential [source of future conflict]( with neighboring countries, raising the prospect of more instability in a region already wracked by violence. Ethiopia lost direct access to the sea in 1993, when Eritrea gained independence after a three-decade war. And Finally Time is running out for France and Germany to resolve their dispute over the role of nuclear power in Europe’s energy transition — or risk stalling the region’s green agenda. Energy ministers from the EU’s 27 member states are set to meet in Luxembourg today to find common ground on the issue. At stake is a key piece of legislation the bloc hopes will drive capital into accelerating the rollout of renewable energy, [reducing the role natural gas]( plays in setting power prices and leaving the EU less dependent on Russian supplies. Workers at the Bugey nuclear power station in France. Photographer: Jose Cendon/Bloomberg More from Bloomberg - [Next Africa](, a twice-weekly newsletter on where the continent stands now — and where it’s headed - [Bloomberg Opinion]( for a roundup of our most vital opinions on business, politics, economics, tech and more - [Economics Daily]( for what the changing landscape means for policy makers, investors and you - [Green Daily]( for the latest in climate news, zero-emission tech and green finance Explore more newsletters at [Bloomberg.com](. Follow Us Like getting this newsletter? [Subscribe to Bloomberg.com]( for unlimited access to trusted, data-driven journalism and subscriber-only insights. Want to sponsor this newsletter? [Get in touch here](. You received this message because you are subscribed to Bloomberg's Balance of Power newsletter. If a friend forwarded you this message, [sign up here]( to get it in your inbox. [Unsubscribe]( [Bloomberg.com]( [Contact Us]( Bloomberg L.P. 731 Lexington Avenue, New York, NY 10022 [Ads Powered By Liveintent]( [Ad Choices](