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

Europe’s tough stance on Russia was put to the test after US President Donald Trump insisted that Ukraine meet Russia for peace talks regardless of whether a ceasefire in place. The leaders of France, Germany, the UK and Poland gathered in Kyiv on Saturday and demanded Russian President Vladimir Putin agree to an “unconditional” ceasefire before meeting Ukrainian President Volodymyr Zelenskiy in Istanbul. Bowing to the US pressure on Sunday, Zelenskiy said he “will be waiting” for Putin in Turkey on May 15 about an hour after Trump’s demand. Putin later offered to hold direct talks with Ukraine in Istanbul that day, saying he didn’t rule out reaching an agreement on a ceasefire in the war. “We’re in the mood for serious talks with Ukraine,” Putin said in late-night comments to reporters at the Kremlin.

— Michal Kubala

What’s Happening

Trade Thaw | The US and China both reported “substantial progress” after two days of talks in Switzerland aimed at de-escalating a trade war, marking what Chinese Vice Premier He Lifeng called “an important first step” toward resolving differences. Treasury Secretary Scott Bessent said more details will follow today and He promised a joint statement.

Euro’s Moment | Transatlantic capital flows may be reversed. The euro is gaining ground on the dollar amid optimism about Europe’s economic resilience and more institutional stability. Now, the currency is experiencing a resurgence rarely seen since its formation in 1999. 

United Front | European leaders confirmed late last week they are united in their strategy to respond to Trump’s tariff threats. German Chancellor Friedrich Merz said he told the US President that one-on-one deals with EU members are off the table, while Commission President Ursula von der Leyen insisted she would visit the White House only with a concrete set of trade proposals in hand.

Industry Revival | In response to rising global protectionism and Trump’s bid to attract industries back to the US, the EU is pushing to ease regulations across key sectors — from autos to aeronautics— to reinvigorate its internal market. Read what bloc’s industry chief Stephane Sejourne told us here. 

Around Europe

Visa Overhaul | The British government is introducing tougher visa rules today, including higher thresholds for skilled foreign workers and tighter controls on lower-skilled migration. Its Prime Minister Keir Starmer’s response to pressure to bring legal foreign labor down, as migration-related discontent fuels support for populist parties.

Staffing Slump | Trump’s tariffs are adding to the labor market’s strain, stalling hiring and job openings in favor of more flexible labor. Staffing firms in the US and Europe are reporting weaker earnings, with some warning uncertainties could extend into 2026. 

Peace Appeal | Pope Leo XIV offered a glimpse into the geopolitics of his papacy. The new elected pontiff used his first Sunday address to urge peace in Ukraine and Gaza in an echo of his predecessor, Pope Francis. His views may put him at odds with Donald Trump. 

Expensive Eurovision | As half a million fans descend on Basel for the Eurovision song contest, they’re about to discover local prices — buoyed by a soaring franc — will make this into quite the pricey pilgrimage. Some, however, are undeterred. 

Chart of the Day

The ECB will lower interest rates more than previously expected this year, according to our survey. While Executive Board member Isabel Schnabel pushed for caution late last week amid inflationary concerns, Governing Council member Boris Vujcic said price growth should be at the ECB’s target of 2% by the end of the year. 

Today’s Agenda

All times CET

• Euro-group finance ministers meet
• EU Commission President Ursula von der Leyen opens the Strategic Dialogue on the European Defence Industry and the Strategic Dialogue on the Future of the Chemical Industry
• EU chief diplomat Kaja Kallas, EU defense chief Andrius Kubilius take part in EU-Ukraine Defence Forum
• EIB President Nadia Calvino speaks at event hosted by Bruegel