Macron Faces Huge Test in His Debt Battle

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

The massive protests engulfing France over Emmanuel Marcon’s pension reform plans are setting the stage for a prolonged battle. More than a million people took to the streets Thursday, led by labor unions opposing the plan to tackle deficits by raising the minimum retirement age to 64 from 62. Macron is under pressure to reduce the country’s record debt burden and boost France’s competitiveness. More broadly, Macron said the EU should quickly deploy new tools to overcome a stand-off with the US over industrial subsidies, adding that the issuance of more joint debt is “not a taboo.” Macron and Spanish Prime Minister Pedro Sanchez agreed yesterday to support a joint EU instrument to respond to Biden’s $370 billion green-investment plan.