| Welcome to the Brussels Edition, Bloomberg's daily briefing on what matters most in the heart of the European Union. The European Central Bank is widely expected to keep its policy steady when the Governing Council convenes today, having already unleashed a massive wave of stimulus to support businesses and households. President Christine Lagarde still has to contend with a few challenges though, including a strong euro that's threatening to make life harder for the region's exporters. Her press conference will be closely watched for any comments on the level of the currency, while fresh forecasts are likely to show only slight changes to the outlook — signalling relief that some of the risks that the central bank had identified haven't yet become a reality. — John Ainger and Alexander Weber What's Happening Brexit Action | The EU is studying the possibility of legal action against the U.K. over Prime Minister Boris Johnson's plans to breach the agreement governing Britain's withdrawal from the bloc, according to a document seen by Bloomberg. The two sides will hold an emergency meeting today. Breaking commitments over the Irish border may also scupper Britain's hopes of a free-trade deal with the U.S. Climate Climax | The Green Deal is reaching crunch time in the European Parliament. Members of the environment committee will today vote on amendments to a key law to make the 2050 climate-neutrality objective binding. They are also set to recommend a stricter target for 2030. Mediterranean Links | EU efforts to put pressure on Belarus are on hold over an unrelated crisis in its own backyard. Cyprus has told peers that it won't sign on to a proposal to sanction Belarusian officials unless member states also agree to clamp down on Turkey over drilling activities in the eastern Mediterranean, people familiar with the matter said. Vaccine Deal | The EU will be supplied with 200 million doses of an experimental vaccine made by U.S.-German partners Pfizer and BioNTech. The bloc didn't disclose financial terms, while the companies are on track for a regulatory review in October. Another key front-runner though suffered a setback. Digital Tax | France wants the EU to make a formal proposal for a digital tax in the first quarter of 2021 as it's concerned the U.S. will block negotiations for an international agreement. Finance Minister Bruno Le Maire said those talks have stalled as the U.S. keeps changing position. In Case You Missed It Luxury Lobbying | LVMH Chairman Bernard Arnault asked for help from the French government in an effort to pull out of a deal to buy Tiffany, according to a person familiar with the government's thinking. The world's biggest luxury conglomerate formally denied it exerted any kind of pressure. Whack-A-Mole | A tidy bistro tucked in a side street of Paris's bustling Boulevard du Montparnasse shows how the coronavirus rebound is threatening an unpredictable hodge podge of restrictions that might be almost as debilitating as earlier lockdowns. Another Virus | A deadly pig disease may have just entered Europe's biggest hog-producing nation. Germany said it has a suspected case of African swine fever, which kills most infected pigs within 10 days. The possible infection was detected in the corpse of a wild boar near the Polish border. China Reliance | The Commission said the bloc's "economic sovereignty is at stake" due to its reliance on imports of raw materials, components and energy, adding to signs of increasing protectionism. It follows plans to curb takeovers of European firms, punish imports from polluting companies and build a common defense policy. Listen In | German Chancellor Angela Merkel is walking a fine line between politics and energy needs with Russian President Vladimir Putin. We speak to Judy Dempsey, non-resident senior fellow at Carnegie Europe and author of The Merkel Phenomenon, about the options facing Europe's matriarch in this week's podcast. Chart of the Day  Escaping the city heat and running to cooler destinations during the hottest weeks of the year is a short-term solution available for only a few. Cities will keep growing to house 68% of the world's population by 2050, according to a United Nations estimate. Some countries are taking drastic steps to try to gird urban areas against climate change, including moving their capitals to more resilient locations. But without immediate and drastic action, the only viable solution will be to adapt. Today's Agenda All times CET. - 1:45 p.m. ECB interest rate decision followed by President Christine Lagarde's press conference at 2:30 p.m.
- 4 p.m. European Parliament President David Sassoli meets with Kosovo's Prime Minister Avdullah Hoti
- 5:45 p.m. EU lawmakers exchange of views with Turkey's Foreign Minister Mevlut Cavusoglu
- 7 p.m. Lagarde speaks at Bundesbank event
- European Parliament's environment committee votes on the European Climate Law
- Eurofi Financial Forum 2020 in Berlin
- France will host a summit of Southern European nations in the Corsican town of Ajaccio
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