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Brussels Edition: Low expectations

Brussels Edition
Bloomberg

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

Nothing the EU does ever comes easy — not even during one of the worst crises it's ever known and with an economic crash of epic proportions looming. That's why expectations for today's video conference of EU leaders are low. This is just the start of the horse-trading on the 750 billion-euro coronavirus recovery fund. More hard bargaining will come soon if, as German Chancellor Angela Merkel urged yesterday, leaders try to get a deal by the summer break. Senior EU officials warn that more countries have problems with the plan that just the outspoken four fiscal hawks. By the time leaders log off, success will merely be an acceptance that the plan lives to fight another day. 

—  Ian Wishart

What's Happening

No Let-Up | The EU will impose full customs controls and checks on goods from Britain from 2021, declining to reciprocate London's plan to offer traders a six-month grace period, according to Joao Vale de Almeida, the EU's ambassador to the U.K. "You can count on us to be forcible and systematic in implementing the deal," he said at a think tank event.

China Call | The European Parliament is due today to call on EU countries to "consider" taking China to the International Court of Justice should Beijing enact its controversial new national-security law for Hong Kong. The non-binding resolution will put no obligations on EU capitals, which are generally loathe to provoke China over human rights.

Plane Problems | Over the past few years, Spanish companies have reaped the rewards of supplying Airbus, with a host of manufacturers in the country making parts for the most popular jets in the sky. But with passenger aircraft sitting idle as the coronavirus grounds global fleets, the economic and personal effects could be devastating.

Guns & Cash | Click to read more about how Bulgaria's prime minister accused the country's president of spying on him with a drone after photos were leaked of what appeared to be the premier sleeping in his bedroom with a gun on the nightstand and a drawer full of cash.

In Case You Missed It

Back to Spain | Spanish Prime Minister Pedro Sanchez announced a 4.25 billion-euro package to bolster the country's battered tourism industry. "The good news is that thanks to how the epidemic has evolved, we've been able to move forward the re-opening of our borders," Sanchez said.

Cash Questions | Wirecard, the German payments firm that's fending off allegations about its accounting, suspended a senior executive after auditors were unable to find about 1.9 billion euros in cash. There was evidence that "spurious balance confirmations" had been provided, the DAX company said as it delayed releasing 2019 financial results for the fourth time.

Legal Defeat | Hungarian Prime Minister Viktor Orban lost a court fight with the EU over controversial curbs on foreign-funded non-governmental organizations and groups linked to financier George Soros. The Hungarian law imposed "discriminatory and unjustified restrictions on foreign donations to civil society organizations," the EU Court of Justice in Luxembourg said in a final ruling.

Set Free | Prisons across Europe, led by Turkey, released more than 122,000 inmates during the initial weeks of the Covid-19 outbreak to try to slow the spread in often overcrowded prisons. Turkey released 102,944 prisoners alone, more than double the rate on a per capita basis of the next two countries on the list, Cyprus and Slovenia, according to the study commissioned for the Council of Europe

Chart of the Day

The U.S. has the worst record among major developed countries when it comes to workers' rights, according to a survey of labor unions. The world's largest economy is ranked a 4 by the International Trade Union Congress, meaning there are "systematic violations of rights." Every other Group of Seven country ranks 3 or better.  Europe dominates the top-ranked countries for workers, with the list including Sweden, Italy, Netherlands, Ireland and Germany. Uruguay is the only non-European nation in the group. 

Today's Agenda

All times CET.

  • 10 a.m. EU leaders hold video conference to discuss proposal for jointly-financed recovery fund and the new EU long term budget
  • 1:30 p.m. European Parliament announces result of vote on Hong Kong resolution

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