Brussels Edition: A continent divided

Follow Us Get the newsletter Welcome to the Brussels Edition, Bloomberg's daily briefing on what matters most in the heart of the European Union. There's long been a rift between the EU's north and south, but Covid-19 is turning it into a potentially insurmountable economic and political chasm. In Rome, churches are now food banks, while charity boxes crop up in city squares. But over in the city of Stuttgart, the home of iconic German car brands Porsche and Mercedes-Benz, things look very different, with one company even eschewing aid and dishing out chunky bonuses to employees. The solution may be an obvious one — more redistribution — but it is also an unpalatable one for many. Can the bloc survive? Read our deep-dive into the fault lines. — John Ainger What's Happening Dreams of Summer | As Germany aims to reopen its borders from June 15, the Commission is pushing for a continent-wide revival of tourism, covering everything from free movement to the use of mobile-phone tracing applications. Here's how it might affect your getaway plans. Stalling Powerhouse | Just as Germany starts counting the cost of the coronavirus's damage to economic growth, officials will get another glimpse of the shaky foundations it was built on. GDP data tomorrow will reveal not only that Europe's biggest economy began a nose dive in March, but also how its stalling engine was already in need of repair. Euro Defense | The future of Europe's common currency is once again in doubt, but it does have one important backer: Angela Merkel. The German chancellor vowed to defend the euro after her country's highest court questioned one of the ECB's key policy tools.  Italian Plan | It's taken weeks, but finally Italy has approved a 55 billion-euro stimulus package to help its citizens battle economic turmoil wrought by the coronavirus. The stakes are high, with Bloomberg Economics expecting a 13% contraction this year and the far-right leader Matteo Salvini waiting in the wings. Salvage Operation | As the EU lurches toward one of the worst slumps since the South Sea Bubble burst in 1720, its regulators have adapted their playbook from the banking bailout a decade ago to help salvage companies. And it comes with strings attached. In Case You Missed It Vaccine Priority | Americans will likely get first access to French drug giant Sanofi's Covid-19 vaccine if it can successfully deliver one, the company's CEO said in an interview with Bloomberg. It highlights the global competition in getting protective doses to those who need it. Here are the other companies in the race. Russia Warning | Merkel accused Russia of mounting what she called an "outrageous" cyberattack on her email account and floated the possibility of further sanctions against Moscow. Here's how relations between the two sides have become increasingly strained. Polling Poles | Poland's lawmakers approved a mixed way of voting in the delayed presidential election, backtracking from a plan to hold the ballot only by mail for the first time in the country's history. Citizens will now be allowed to vote at polling stations too, though a date hasn't yet been set. Family Firm | For years, Czech billionaire Andrej Babis wanted to run his country like a business and now the coronavirus pandemic has finally given him the chance. This is how he's faring (pretty well).  Chart of the Day Economic uncertainty in the euro area has soared to record levels in the face of the pandemic and stringent containment measures, according to Bloomberg Economics' uncertainty gauge. As the region starts to exit lockdowns, some of the smoke clouding the outlook should dissipate. Still, a lot of uncertainty will persist, dragging down activity well into next year. Today's Agenda All times CET. 9:30 a.m. The EU's top court rules on a final challenge against a 2014 Commission decision to fine Goldman Sachs and a group of cable makers for fixing the price of high-voltage power cables 9:30 a.m. The EU's top court rules in a 2019 challenge by the Commission against the U.K. over a VAT-related plan 12 p.m. Commissioner Elisa Ferreira speaks at EPC event on cohesion policy and the bloc's next multiannual budget 6:15 p.m. Press conference by Air Chief Marshal Sir Stuart Peach, chairman of the NATO military committee after the alliance's highest military authority holds its first virtual meeting via secure teleconference Videoconference of G-7 health ministers Like the Brussels Edition? Don't keep it to yourself. Colleagues and friends can sign up here. We also publish the Brexit Bulletin, a daily briefing on the latest on the U.K.'s departure from the EU.  For even more: Subscribe to Bloomberg All Access for full global news coverage and two in-depth daily newsletters, The Bloomberg Open and The Bloomberg Close. How are we doing?  We want to hear what you think about this newsletter. Let our Brussels bureau chief know.   Before it's here, it's on the Bloomberg Terminal. Find out more about how the Terminal delivers information and analysis that financial professionals can't find anywhere else. Learn more.   You received this message because you are subscribed to Bloomberg's Brussels Edition newsletter. Unsubscribe | Bloomberg.com | Contact Us Bloomberg L.P. 731 Lexington, New York, NY, 10022