Imperfect unions, imperfect times

Follow Us Get the newsletter Unions are rarely perfect. We're seeing even more evidence of that lately. The massive stimulus package that European Union leaders have agreed to was a win for the 27-member bloc as the pandemic decimates growth. But the effort to get there tells us just how fragile things are. As this inside tale reveals, it took close to five days of brinkmanship. The arguing laid bare the realities of a group that is an awkward mix of weak and stronger economies, of open democracies and increasingly authoritarian administrations — with suspicion between the "frugal" north and southern nations accused of frittering money away, and where Hungary and Poland chafe at Brussels's lectures about the rule of law. In the U.S., meanwhile, we see close to open warfare between mayors and state governors and Donald Trump's administration in Washington over the protests against racial inequality, the role of police, and rules around mask-wearing during the pandemic. The idea of one America seems ever fainter as the lawsuits pile up. Not only are two of the biggest powers — the U.S. and the EU — divided from within, they're at loggerheads with each other on trade and geopolitical hot spots such as Iran. Speaking in Brussels this morning, Germany's Angela Merkel said she was "very relieved" to get a deal. That's Merkel's way of describing how close it was. Even so, in the pandemic era — where the risk is countries simply go their own way, alliances splinter and unity goes completely out the window — it's about the best there is. — Rosalind Mathieson   The leaders of Denmark, Sweden, Austria and the Netherlands — known as the "Frugal Four" — on the sidelines of the summit. Photographer: Francisco Seco/AFP via Getty Images Tell us how we're doing or what we're missing at balancepower@bloomberg.net. Global Headlines Law and order | Trump is escalating tensions with state and local authorities by seeking to deploy more federal agents into cities — including New York and Chicago — gripped by protests against police brutality and spikes in crime. As Chris Strohm and Josh Wingrove report, it's a policy that appeals to his base ahead of the November election but which faces legal challenges. Unforced error? | Trump's struggling campaign is increasingly pinning his re-election on the claim that Joe Biden is mentally unfit for the job and is looking toward the presidential debates as an opportunity to goad his 78-year-old Democratic rival into a gaffe that will sink his poll numbers. Biden is enjoying front-runner status but has accomplished that largely with a highly scripted campaign. Biden today unveiled a $775 billion plan to bolster child and elder care, financed by taxes on real estate investors with incomes of more than $400,000. Faltering bridge | Beijing's insistence that to stay in Hong Kong Taiwanese officials must sign a statement agreeing that both sides belong to "one China" adds pressure on Taipei to close its de facto consulate and chips away at the city's role as a gateway to the democratic world. A sweeping national security law imposed last month is also forcing technology firms to reconsider their presence in Hong Kong just as it was poised to become a regional hub. Upping the ante | Senior British lawmakers will seek to use a visit today by U.S. Secretary of State Michael Pompeo to press Prime Minister Boris Johnson to take an even harder stance toward Beijing. Pompeo meets with members of Parliament who want sanctions on Chinese officials and the Asian superpower cut from the U.K.'s nuclear power program. The U.K. government turned a blind eye to Russian interference in its elections, and Russia is so embedded in the British establishment that attempts to curb its influence are focused on damage limitation rather than prevention, a long-delayed report said. Delicate balance | Corpse stealing by family members is just one of the challenges facing Indonesia as Covid-19 spreads along the world's largest archipelago and the government is caught between the need to contain the virus and the difficulty of enforcing isolation for millions who have to work to eat. Indonesia's failure to deal effectively with the pandemic could spur its first recession since the late 1990s and send millions back into poverty. What to Watch  U.S. Treasury Secretary Steven Mnuchin and House Speaker Nancy Pelosi will kick off a first round of negotiations today on the next virus relief plan even as Republicans are still hashing out an agreement among themselves. The African Union is holding virtual talks today with regional leaders in a bid to defuse a dispute over an Ethiopian hydropower dam on the Nile River that's roiled relations between Ethiopia, Egypt and Sudan. Iraq's new prime minister, Mustafa al-Kadhimi, landed in Iran today after a first stop in Saudi Arabia was postponed. He's accompanied by his oil, electricity and finance ministers on a mission to drum up desperately needed investment and reset his nation's role in regional rivalries. Amid sagging poll numbers, Canadian Prime Minister Justin Trudeau will make his first appearance before parliament since it emerged last week that the WE Charity lobbied his government before winning a controversial contract. And finally ... The latest results from front-runners in the race to produce a vaccine against Covid-19, including the University of Oxford-AstraZeneca partnership and Moderna, are promising. But both are conducting final-stage testing with two doses, meaning a double-shot inoculation that would complicate manufacturing and logistics of a roll-out to billions of people across the globe — especially if repeat doses are needed. The #NoToVaccination group protests outside the University of the Witwatersrand in Johannesburg on July 1 against coronavirus vaccine trials in Africa. The university is collaborating with the University of Oxford on the South African trial.  Photographer: Marco Longari/AFP via Getty Images     Like Balance of Power? |  Get unlimited access to Bloomberg.com, where you'll find trusted, data-based journalism in 120 countries around the world and expert analysis from exclusive daily newsletters.   You received this message because you are subscribed to Bloomberg's Balance of Power newsletter. Unsubscribe | Bloomberg.com | Contact Us Bloomberg L.P. 731 Lexington, New York, NY, 10022