Welcome to the Brussels Edition, Bloomberg’s daily briefing on what matters most in the heart of the European Union.

The EU is set to publish today a provisional list of US goods that would be hit with additional tariffs if negotiations with Washington aiming to alleviate trade tensions fall flat. Potential countermeasures would affect around €100 billion in American exports, including industrial, agricultural and aerospace products. Part of the bloc’s plan is to propose tariffs on Boeing aircraft and US-made cars, we’re told. Such a move would be a significant retaliation to Donald Trump’s sweeping tariffs and would play to the long-standing Boeing-Airbus rivalry, which has been a flashpoint in broader transatlantic trade disputes. Still, Brussels may also hope that the list will serve as a catalyst for negotiations with Washington, even though officials expect that most of Trump's tariffs will stick.

—Michal Kubala

What’s Happening

Inaugural Trip | New German Chancellor Friedrich Merz and French President Emmanuel Macron pledged to reset relations and deepen cooperation on EU defense and competitiveness during Merz’s inaugural visit to Paris yesterday. The show of unity comes as the leaders of the bloc’s two biggest economies seek to reassert Europe’s global role amid geopolitical uncertainty. The mood on Merz’s trip to Warsaw wasn’t quite so festive, where Polish Prime Minister Donald Tusk pushed back against Merz’s plan to tighten border controls with his EU neighbors.

Tanker Clampdown | The EU is weighing sanctions on Litasco Middle East, a Dubai-based unit of Lukoil, as part of its 17th sanctions package targeting Russia’s covert oil trade, according to documents we've seen. The entity allegedly facilitated the buildup of the so-called shadow fleet used to transport Russian crude.

ECB Backing | The ECB has backed a compromise on Europe’s timeline for implementing new trading rules, allowing banks to choose whether to put the rules in place next year or wait until 2027. The approach could shield EU banks from uneven regulation as the UK stalled and US has failed to advance their own proposals. 

Novo Rebound? | Novo Nordisk shares surged amid optimism that competition around its weight loss drug Wegovy will ease. Despite trimming its guidance, the pharma company expects stronger sales later this year and challenges from cheaper knockoffs to wane.

Around Europe

Shifting Goals | The US is shifting its focus away from a 30-day ceasefire in favor of a long-term peace settlement of Russia’s war in Ukraine, US Vice President JD Vance said. The comments came after Trump missed his self-imposed 100-day deadline to end the conflict. Meanwhile, former US President Joe Biden said the current administration is appeasing Russia. 

Moscow Gathering | Chinese President Xi Jinping and Brazil’s Lula da Silva arrived in Moscow yesterday for WWII commemorations only hours after Russia and Ukraine exchanged heavy drone and missile strikes. The deadly attacks came ahead of a planned 72-hour Russian ceasefire and amid heightened international scrutiny of Moscow’s military parade and diplomatic outreach.

Political Shockwaves | Romania’s central bank is grappling with its sharpest market selloff since 2009 as political turmoil and surging support for the far-right rattle investor confidence. With elections looming and fiscal risks mounting, here's how the crisis is testing Europe’s longest-serving central banker.

Legal Roadblock | The Czech Republic's landmark nuclear project with South Korea’s KHNP will be delayed by several months after a lawsuit by France’s EDF, according to power utility CEZ. The pause threatens the country’s largest-ever infrastructure plan and poses a challenge to Korean nuclear technology in Europe.

Chart of the Day

Russia’s fiscal outlook is under strain as oil and gas revenues continue to decline, weakening one of Moscow’s most critical income sources amid the ongoing war with Ukraine. Officials are now weighing changes to the country's so-called budget rule to adapt to a prolonged slump in oil prices.

Today’s Agenda

All times CET

• 10.30 a.m. Commission President Ursula von der Leyen receives Irish Prime Minister Micheal Martin 
• 11.00 a.m. EU Agriculture Commissioner Christophe Hansen speaks at a conference on shaping the future of the farming and food sectors
• EU foreign ministers hold informal meeting in Warsaw
• EU Parliament votes on gas storage regulation at a plenary session in Strasbourg