| Welcome to the Brussels Edition, Bloomberg's daily briefing on what matters most in the heart of the European Union. It's far from the pomp and ceremony of a full-blown EU-China leaders' meeting in Germany today. Instead, a video conference with four top officials: Chinese President Xi Jinping on one side, and German Chancellor Angela Merkel, EU summit chair Charles Michel and European Commission President Ursula von der Leyen on the other. The call will be another test of the bloc's carrot-and-stick approach toward a more economically and politically assertive Beijing. Expect the EU side to keep alive the goal of a deal this year with China to open its market further to European investors by saying recent important Chinese concessions must be followed by more. The Europeans will also praise China's vow to help fight climate change, while pressing Beijing to be more ambitious in cutting greenhouse gases. There will be less room for diplomatic nuance when it comes to China's controversial national-security law for Hong Kong. — Jonathan Stearns and Nikos Chrysoloras What's Happening Connecting Apps | A group of EU member states including Germany, Italy and the Czech Republic will today start piloting a technical system to connect their national Covid-19 tracing apps in an effort to contain the spread of the virus as people travel across borders. The system, due to be fully operational in October, arrives as cases are again on the rise across the bloc. (Your latest iPhone update has a contact-tracing option which is enabled by authorities here in Belgium.) Climate Targets | The European Commission will this week propose a stricter emissions-reduction target for 2030, an initiative that — if approved — will leave no sector of the continent's economy untouched. Bloomberg's Ewa Krukowska got the draft and explains what it means for the world's biggest carbon market. Brexit Stalemate | After yet another weekend of exchanging warnings, reminders and barbs, talks between the U.K. and the EU continue this week with the two sides still far apart over mostly the same issues that divided them eight months ago. And it's all happening under the shadow of British government efforts to pass a bill through parliament that the EU sees as a deal-breaker. Mediterranean Talks | Greece says it's ready to begin talks with Turkey over maritime borders in the eastern Mediterranean after its neighbor decided to remove a survey ship from contested waters. If negotiations on a settlement begin, the summit of EU leaders next week will be a much calmer affair. Bolder Germany | Whether it's coordinating the response to an increasingly powerful China, tightening foreign-investment rules, or challenging Russia over the poisoning of opposition leader Alexei Navalny, Germany has become far more explicit, and unapologetic, about calling the shots in Europe. As Birgit Jennen reports, it's partly a recognition that Berlin has no choice but to step up to the plate with Europe caught in the middle of a growing conflict between the U.S. and China. In Case You Missed It Gas Conundrum | With Merkel weighing up the arguments for scrapping the Nord Stream 2 pipeline project, a cornerstone of the German chancellor's carefully crafted energy strategy is at stake. Cancellation of the Russian-led venture would mean unwinding years of strategy to turn Germany into a lucrative gas hub as it boosts supplies of the fossil fuel during the green energy shift and would also unravel the plans of corporate giants like BASF and Engie. Euro's Strength | The ECB is facing a tough predicament with the euro's recent rise to the strongest level in more than two years. Policymakers are attempting to strike a balance between voicing concerns about the currency's surge and avoiding any impression that they're deliberately trying to weaken it. Here's the latest from Christine Lagarde. Putin's Embrace | Russian President Vladimir Putin is tightening his embrace of beleaguered ally Alexander Lukashenko as the Belarusian ruler intensifies a crackdown on month-long protests. The crisis engulfing Moscow's closest partner echoes revolts that swept away pro-Kremlin leaders in Ukraine and Armenia since 2014. Cashless Conundrum | Sweden may be about to take its world-beating cashlessness to the next level, as the pandemic threatens to push its notes and coins close to extinction. But if there's no cash at all to fall back on, what happens if digital networks fail? Debt Discipline | Swedes don't like cash, and Germans don't like debt. Just because Germany has embraced a massive fiscal binge to address the coronavirus crisis, don't assume the country has suddenly changed its ways. Politicians are already plotting how to reinstate parsimony when the bad times are finally over. Chart of the Day  Global central bankers are discovering that monetary policies they once viewed as unconventional and temporary are now proving to be conventional and long-lasting. The mounting debate is whether the need to prop up economies will ultimately push central banks to do even more, perhaps in unison with governments. Today's Agenda All times CET. - 10:15 a.m. EU trade chief Dombrovskis participates in the online BusinessEurope event on "EU-US: How to build a positive agenda"
- 11 a.m. Eurostat to publish July industrial production reading
- 2 p.m. EU's Michel, von der Leyen, and Germany's Merkel hold EU/China teleconference with President Xi, followed by press conference by the leaders of EU institutions at around 4:30 p.m.
- 2:45 p.m. EU's Vestager speaks at International Competition Network online conference
- Germany's CDU leadership sets out plans for party convention to choose a new leader
- U.K. government's controversial Internal Market bill continues passage through Parliament
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