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Brussels Edition: How Bad?

Brussels Edition
Bloomberg

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

It seems a lifetime ago, but in those carefree, mask-less days before the coronavirus pandemic, the European Commission was predicting a 1.2% expansion in the economy. That was in early February. The crisis had hit China and officials described Covid-19's spread only as a "key downside risk." Then governments put their people under lockdown. Today, as the commission announces its latest forecasts, we'll find out just how bad it's got, and how long before things get any better.

— Ian Wishart

What's Happening

Arguing Back | A defiant message came from the European Central Bank last night after Germany's constitutional court criticized its bond-buying program. After a conference call, the ECB's governing council said it would remain committed to doing what it could to revive inflation.

Virus Latest | The U.K.'s coronavirus death toll leapt past Italy's, making it theworst hit country in Europe, with 29,427 fatalities. Italy reported its fourth straight decline in new cases as the lockdown started to ease, but deaths in France rose atthe fastest pace in six days. 

Opening Up | German Chancellor Angela Merkel meets 16 state premiers today to hash out a roadmap for a gradual reopening of the country. With the main vacation season approaching, here's why for some in the tourist industry, it feels like wartime.

Balkan Blues | EU leaders hold a call with their Balkan peers this afternoon, but the draft communique of the virtual summit is totally inconsequential, so don't expect much in terms of substance. There was a brief moment earlier this year when EU expansion was back in vogue but that's gone for now.

To the RescueBloomberg was given access to an Airbus plant in the U.K. to see how the company has been adapting its manufacturing during the pandemic. Read how the firm suddenly went from making jets to ventilators.

In Case You Missed It

Trouble Ahead | Read Stephanie Bodoni's analysis of yesterday's German court ruling on the ECB and why it's seen as a "declaration of war."

Further Back | A patient hospitalized with flu-like symptoms in France at the end of December turned out to have had Covid-19. That finding contradicts official statistics,which show the first cases in the country occurred in people who returned from Wuhan at the end of January.

Won't Forget | Apple Inc. dug in its heels in a standoff with the French government over the merits of protecting users' privacy versus giving the state access to information in efforts to contain the spread of Covid-19. Find out what upset Digital Minister Cedric O so much that he warned the company: "we will remember that." 

No Go | Virgin Atlantic Airways Ltd. will eliminate 3,150 jobs, or a third of the workforce, and shutter its London Gatwick hub after struggling to secure a U.K. government bailout. Chief Executive Officer Shai Weiss said the impact of the pandemic was "devastating."

Think Again | Ryanair has asked EU judges to cancel the bloc's approval of Sweden's 455 million-euro loan guarantees for airlines, the first of several potential lawsuits targeting European governments' efforts to rescue selected airlines.

Testing Times | Like many struggling through the pandemic, Bloomberg's Stephanie Baker suspected she might have been infected with Covid-19 sometime ago and was eager to find out for sure. Unfortunately, that was only the start of the story.


Chart of the Day

Italy's electricity demand jumped on Monday as lockdown restrictions were loosened, signaling that an economic recovery may be on its way. While consumption rose in France and Britain and held steady in Germany and Spain from the previous week, it's not clear how quickly demand will recover or if it'll ever reach pre-crisis levels. 

Today's Agenda

All times CET.

  • 11 a.m. Eurostat to release retail trade reading for March and early estimates about C02 emissions from energy use
  • 11 a.m. Press conference by European Economy Commissioner Paulo Gentiloni on Spring economic forecast
  • 11:00 a.m. Angela Merkel consults with regional leaders on possible further easing of virus curbs
  • 12 p.m. European Trade Commissioner Phil Hogan give online address on the role of trade in a post coronavirus recovery 
  • 4:30 p.m. EU and Western Balkan leaders hold video conference  

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