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

An EU proposal to lower a Group of Seven oil-price cap to $45 per barrel from $60 and tighten the screws on Russia's revenues could be losing steam, we’re told. The US is opposing the move and some member states are hesitant to move forward without President Donald Trump’s backing. The surge in oil prices over Middle East tensions adds a new level of complexity, making arguments for going it alone with G-7 nations other than the US more difficult. One diplomat told us that several member states are worried that a lower price threshold could push crude prices even higher. Before exiting the G-7 summit in Canada early, Trump indicated he’s in no rush to impose tougher sanctions on Russia. On the sidelines, Commission President Ursula von der Leyen met with Trump, and the EU’s trade chief Maros Sefcovic sat down with US counterpart Jamieson Greer to discuss trade negotiations ahead of a July 9 deadline, when the US could hit the bloc with 50% tariffs on most EU exports.

Michal Kubala

What’s Happening

Original Sin | Commission chief von der Leyen told the G-7 that the source of "the biggest collective problem we have" was China's accession to the WTO. In order to tackle its unfair trade and economic practices, and the "weaponisation" of critical minerals, she proposed the group's leaders use their joint leverage on Beijing.

Apple Warning | Apple faces a looming EU ultimatum to fix alleged Digital Markets Act violations by June 26 or risk daily fines further down the road. The warning could kick in if the company fails to come forward with an offer allowing developers to inform customers of cheaper deals away from the App Store.

Gas Ban |  The commission will be hoping that the Russian gas ban it puts forward today will end any lingering skepticism among member states that it will not be strong enough for companies to exit contracts without stiff financial penalties. Here's why it can't use sanctions.

United Spending | Luxembourg's Prime Minister Luc Frieden supports joint EU debt to fund defense and climate efforts, he said in an interview for Bloomberg TV. The topic remains controversial in the bloc, broadly opposed by countries like Germany, though voices have been rising to have the bloc leverage its financial power.

Cautious Stance | The ECB’s governing council member Joachim Nagel said it's not sensible to commit to further interest rate cuts or pauses in monetary policy. The reason is persistent uncertainty in growth and inflation forecasts. While price growth appears largely under control, Nagel warned against complacency.

Around Europe

Luxury Revival | Luca de Meo was named as CEO of Kering, a move aimed at revitalizing the troubled brand. The Gucci fashion brand owner hopes the ex-Renault chief can mirror the kind of success he achieved in turning Renault's fortunes around.

Wealth Watch | France’s wealthy are bracing for what a post-Emmanuel Macron landscape could bring. With Macron set to leave office in 2027, many anticipate a rollback of tax breaks. They’re restructuring portfolios, offloading real estate, and preparing for a more pronounced “tax the rich” climate. 

Livability Slide | Western European cities are slipping in global livability rankings due to rising threats from terrorism, civil unrest and antisemitic attacks.  The region’s ranking has fallen overall — and Vienna is no longer considered the world’s most livable city, according to the Economist Intelligence Unit. 

Pride Stand | Hungary’s capital will organize this year’s Pride parade under its own auspices to shield itself from efforts by national authorities to block the event. Budapest Mayor Gergely Karacsony, a vocal critic of Prime Minister Viktor Orban, said international leaders will join the June 28 march.

Chart of the Day

Germany could return to growth this year after two years of contraction, according to analysts we've surveyed. Respondents project a modest 0.2% GDP rise and stronger momentum through the following two years. While the EU’s biggest economy could expect a boost from infrastructure and defense spending, economists warn that minimum wage hikes and rising social security costs could burden the recovery.

Today’s Agenda

All times CET

  • 8:30 a.m. Denmark's EU ambassador Carsten Grønbech-Jensen speaks at EPC event on upcoming presidency
  • 12:00 p.m. King Abdullah II of Jordan addresses EU parliament plenary in Strasbourg, France
  • 12:15 p.m. Press conference following EU foreign ministers' videoconference on Middle East
  • 3:00 p.m. EU energy commissioner Dan Jørgensen press conference in Strasbourg on REPowerEU legislation to phase out Russian gas imports and improve monitoring of potential energy dependencies
  • 5:00 p.m. EU financial services commissioner Maris Luis Albuquerque presents review of the Securitization Framework
  • EU's von der Leyen, Costa attend G-7 summit in Kananaskis, Canada
  • College readout by EU tech chief Henna Virkkunen, and economy commissioner Valdis Dombrovskis and defense commissioner Andrius Kubilius present Defense Omnibus to follow Jørgensen’s press conference
  • EU transport commissioner Apostolos Tzitzikostas attends Paris air show, meets US Transportation Secretary Sean Duffy
  • EU environment ministers meet in Luxembourg

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