| Welcome to the Brussels Edition, Bloomberg's daily briefing on what matters most in the heart of the European Union. The EU's rotating presidency is set to be handed over tomorrow to a stalwart Marxist turned right-wing firebrand, whose career includes two (overturned) criminal convictions and who regularly trolls his critics on Twitter. Meet Slovenia's nationalist Prime Minister Janez Jansa. The vocal supporter of former U.S. President Donald Trump and ally of Hungary's Viktor Orban may pose a challenge to the bloc's efforts to bring increasingly authoritarian countries in its eastern wing back onto the democratic path. Strengthening the rule of law and European values are part of Slovenia's stated plans for its presidency — along with bolstering resilience to crisis, discussing the bloc's future and accelerating EU accession in the western Balkans. But the bloc's leaders will have to keep a close eye out for any mischief. — John Ainger and Jan Bratanic What's HappeningGay Rights | The EU is working on potential legal action against fellow rebel Poland over its crackdown on LGBTQ rights. The move, in response to Poland's so-called LGBTQ-free zones, could come as soon as next month, people familiar with the matter tell us. Still, don't expect anything concrete anytime soon: Such legal action can drag on for years. Tax Time | Representatives from around 140 countries negotiating changes to global tax rules start a two-day meeting today as they seek a consensus on how to set a minimum corporate rate and share the rights to tax the profits of the largest multinational firms. Here's what's at stake as they try to find consensus ahead of a G-20 meeting next month. Sausage Truce | The U.K. expects to reach an agreement with the EU on extending a grace period for post-Brexit trading rules in Northern Ireland, a move that would reduce tensions in the so-called "sausage war" between the two sides. The U.K. had asked for a three-month extension to the grace period and a person familiar with the EU's position said the request would be granted. Italian Phoenix | Italian Finance Minister Daniele Franco and Economy Minister Giancarlo Giorgetti will speak to EU antitrust chief Margrethe Vestager about Italy's plans for a new national airline, ITA, to rise from Alitalia's ashes. Vestager has insisted that there must be a clear separation between the two airlines if ITA is to avoid taking on Alitalia's hefty debts. Separately, Iberia parent IAG SA faces an extended EU probe into its plan to buy Spanish rival Air Europa amid concerns the deal could cut competition and increase prices. In Case You Missed ItRed List | Spain backtracked on a decision that placed the U.K. on a restriction-free travel list. Now, travelers coming from Britain will have to either certify full vaccination or provide a negative test for Covid-19. It comes with the delta variant spreading rapidly in countries like Germany, where it now likely accounts for 50% of cases. Here's the latest. Trade Engagement | A key European Commission trade official said the Biden administration should take a different approach to trade than that of its predecessor to help improve the U.S. economy. "What we need to see is a clear sense of engagement and the recognition that you need to also integrate into the world trading system in a manner which is acceptable for everyone else," said Sabine Weyand. Pollution's Price | The price of polluting in the EU may rise by more than 50% by the end of the decade as the bloc tries to tighten its carbon market, according to a draft analysis seen by Bloomberg. It comes with the Commission due to unveil next month a package of laws to put the region's economy on track to meet tougher emission targets agreed under the European Green Deal. EU Blockbuster | The EU's second sale of bonds to finance the recovery fund showed little sign of diminishing appetite from investors — and crucially it included banks that had been excluded from the first sale for previous misdemeanors. It's yet another positive sign that there is demand for pooled debt in Europe. Paris Calling | Paris has become JPMorgan's main trading center in the European Union, Chief Executive Officer Jamie Dimon said at the inauguration of the bank's new headquarters in Paris, which has six trading floors and will see between $300 billion and $400 billion in trading volume every day. Not everyone is keen on such a shift post-Brexit though. Chart of the Day Confidence in the euro-area economy improved to the highest level in more than two decades in June as a reopening of shops, restaurants and other services propelled the region's recovery from the pandemic crisis. A European Commission sentiment index increased to 117.9, exceeding almost all estimates in a Bloomberg survey. The gain was driven by surging optimism in services, with many countries expecting demand over the summer months to surge as travel and business activity resumes. Today's AgendaAll times CET. - 9 a.m. ECB President Christine Lagarde speaks at the European Parliament
- 3 p.m. EU Economy Commissioner Paolo Gentiloni, French Finance Minister Bruno Le Maire, Spanish Finance Minister Nadia Calvino and Portuguese Finance Minister Joao Leao attend conference in Lisbon about the recovery
- 4.30 p.m. European Commission press conference with Vice President Maros Sefcovic on EU-U.K. relations
- 5 p.m. Commission President Ursula von der Leyen receives Iraqi Prime Minister Mustafa Al-Kadhimi
- 7 p.m. Germany's CDU Chairman Armin Laschet speaks in online discussion on Europe
- 7 p.m. EU antitrust chief Margrethe Vestager meets Italian ministers to discuss Alitalia rescue
- Two-day meeting of OECD Inclusive Framework starts
- German Finance Minister Scholz begins three-day trip to Washington
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