Brussels Edition: Friends reunited

Follow Us Get the newsletter Welcome to the Brussels Edition, Bloomberg's daily briefing on what matters most in the heart of the European Union. After four years of tension, the EU and the U.S will next month vow to work together on contentious areas from tax and trade to climate and foreign policy. The pledge will broaden a rapprochement that began shortly after Joe Biden's inauguration with truces in tariff disputes and a re-engagement on the Iran nuclear accord. At an EU-U.S. summit in Brussels on June 15, the two sides will commit to "consult and cooperate on the full range of shared challenges and opportunities in the framework of our respective similar multi-faceted approaches to China." The early draft of the joint communique that we have (here it is) shows that there are still issues that need to be resolved, while the recent tension over vaccine exports highlights that the two allies are not always aligned (and the NATO summit on June 14 may expose such frictions). But there's no doubt that an old friendship is being rekindled. — Nikos Chrysoloras and Viktoria Dendrinou What's Happening China Backers | While the transatlantic rapprochement is in full swing, the chances of an EU-China investment deal being ratified are close to zero, diplomats in Brussels say. That doesn't mean that China doesn't have any supporters left within the EU. Poland's Foreign Minister Zbigniew Rau, who visited China along with peers from Hungary and Ireland this weekend, said his country believes the accord is beneficial for both sides, according to a Chinese readout from the meeting. Time to Borrow | Now that EU governments have all given their nod to key legislation underpinning the bloc's landmark recovery package, the focus this week shifts to how the money will be raised. The Commission is expected to sign off on a couple of key decisions indicating how much it plans to borrow this year and how many bond issuances and auctions it foresees. Tapping markets in June is the quick-fire option. Crypto Hazards | The rising popularity of cryptocurrencies such as bitcoin is "of great concern," according to Derville Rowland, one of the top officials at Ireland's central bank and incoming chairwoman of the European Securities and Markets Authority's investment management standing committee. European regulators are also eying rules to manage trading "gamification," she told us in an interview. Eco Offices | On a site steeped in history a few hundred meters from the Reichstag in central Berlin, an office building is rapidly taking shape that handily symbolizes how climate protection has come to dominate the political narrative ahead of September's election. Take a look at the structure that will provide working space for Germany's Bundestag and is symbolic of the rise of eco-politics in Europe. In Case You Missed It German Polls | Opinion polls in Germany show the Green party shed support for a second consecutive week and Chancellor Angela Merkel's conservative bloc clawed some back, four months before the country votes for its next government. Here's the latest. Mr. Popular | In Italy, meanwhile, support for Prime Minister Mario Draghi's agenda is soaring. His cabinet backed a plan to reduce bureaucratic obstacles, a key commitment he made to unlock the first tranche of 24 billion euros in EU recovery funds. Friend in Need | Russia will release $500 million from a previously agreed loan to Belarus after talks between the country's leaders. It's a sign of support from Moscow for its closest ally after the forced landing of a jetliner and the arrest of a dissident sparked a new wave of tensions between Minsk and the West. Russia will also look for ways to expand air services with Belarus to make up for some of the routes affected by the EU's limits. Cyprus Vote | Cyprus President Nicos Anastasiades's center-right party recorded its worst result in parliamentary elections in 40 years, as voters vented their frustration over corruption scandals and the government's handling of the "golden passport" program. While the results of the ballot have no direct impact on the government given Cyprus's presidential system, it will now be even harder for Anastasiades to pass legislation without the support of smaller parties. Chart of the Day Inflation in the euro area probably accelerated in May to the fastest since 2018. Economists expect Eurostat tomorrow to publish a reading of 1.9%. That would ostensibly meet the ECB's definition of price stability, though policy makers insist they would need to see far more evidence of its sustainability to start thinking about winding down stimulus. Today's Agenda All times CET. 3 p.m. European Commission President von der Leyen delivers speech at the 2021 "Partnering for Green Growth and Global Goals 2030" Seoul Summit 3 p.m. NATO Secretary General Stoltenberg briefs press ahead of meetings of ministers of defense and foreign affairs 5:30 p.m. German Chancellor Merkel and French President Macron news conference after virtual talks OECD Ministerial Council meeting, EU's Dombrovskis participates; OECD publishes economic outlook Iran nuclear talks continue in Vienna Greek Foreign Minister Dendias meets his Turkish counterpart Cavusoglu in Athens for talks on resolving bilateral disputes Like the Brussels Edition? Don't keep it to yourself. Colleagues and friends can sign up here. For even more: Subscribe to Bloomberg.com for unlimited access to trusted, data-driven journalism and gain expert analysis from exclusive subscriber-only newsletters. 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