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

For the EU, the key number was 20% as President Donald Trump rolled out his global tariffs and repeated his assertion that the 27 member states “rip us off.” Commission President Ursula von der Leyen said in a video address this morning that the bloc is preparing countermeasures to “protect its interests and businesses if negotiations fail.” As the EU decides how to calibrate its response, the UK notably escaped the worst of the impact, with only 10% tariffs, while the rate for China was set at 34% — and well above 50% on many goods. Meanwhile, we’re told the EU is preparing emergency support measures for industries most exposed to the blanket US tariffs while officials brace for economic fallout from Trump’s latest trade offensive. To follow our rolling coverage, please click here for our live blog. 

— Michal Kubala

What’s Happening

Europe’s Turn | The US has no plans to pull troops from Europe, NATO Secretary General Mark Rutte said ahead of a meeting of the alliance’s foreign ministers today. Still, with Washington’s gaze shifting toward Asia, he added it’s “logical for Europe to step up even more.”

Stake Boost | The ECB gave Credit Agricole the green light to increase its stake in Banco BPM to just under 20%. The move could complicate UniCredit’s buyout offer for the smaller domestic rival, which has been at the center of drama over potential mergers. Meanwhile, we’re told that the Italian lender is assessing alternatives after its agreement with Credit Agricole’s asset manager Amundi expires. 

Storage Options | EU countries are seeking ways to make this year’s gas storage targets more flexible, we’re told. Draft regulation put forth by Poland would keep long-term goals intact but add wiggle room on the 90% threshold — enabling traders to keep an eye on how fast reserves are replenished as the summer refill season kicks off.

Euro Challenge | ECB board member Isabel Schnabel said it’s time to renew the joint debt debate. As Trump shakes up global markets, hedge fund managers are looking for stability, which an elevated global role for the euro could bring about. The challenge lies in overcoming political resistance from countries such as Germany.     

Around Europe

Cautious Rise | France’s far-right National Rally is preparing to protest against what it called the “tyranny of judges,” even as an appeals court said it may rule sooner than expected on Marine Le Pen’s legal challenge to her conviction. Since the appeal could go either way, her likely heir Jordan Bardella faces a delicate balancing act in the months ahead.

Trusted Counsel | While most high-profile politicians under legal scrutiny turn to elite white-collar defense teams, France’s far-right leader hasplaced her trust in a lower-profile lawyer who is also the deputy mayor of a quiet Pyrenees village. Here’s a profile on Marine Le Pen’s lawyer.

Norm Defiance | Benjamin Netanyahu is set to arrive in Hungary today despite an outstanding ICC arrest warrant. He’ll be hosted by longtime ally Viktor Orban, who has vowed not to enforce the court’s order. The Israeli leader’s first trip abroad since the beginning of the war in Gaza comes amid hints from Hungary that it may start to withdraw from the Hague-based tribunal.

Defense Drive | As a result of decades of rivalry with neighboring Turkey, Greece has long prioritized defense. Even during the height of its debt crisis, it outspent many NATO peers relative to the size of its economy. Now, the Hellenic Republic has put a number on its future commitments — it will invest €25 billion in defense capabilities over the next 12 years.

Pharma Playbook | Spain is emerging as Europe’s pharmaceutical powerhouse. Tax breaks and a speedy regulatory process have made it a hotbed for clinical trials in the region. As global giants like AstraZeneca and Roche expand operations in the country, Madrid is working to lock in these gains even as Trump’s tariffs and Chinese competition loom above the sector. 

Chart of the Day

Longer and sunnier days in Europe risk flooding the grid with cheap power — and that could raise investors’ temperatures. A surge in solar panel intake when electricity demand is low could push prices below zero and squeeze profits for renewable energy producers. As the EU is expected to see a record amount of new solar panels connected this year, expanding storage and demand-side solutions remain key to keeping the system balanced.

Today’s Agenda

• NATO foreign ministers meet at NATO HQ in Brussels
• Commission President von der Leyen, Council President Antonio Costa take part in first EU-Central Asia summit, with presidents of Uzbekistan, Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan in Sarmarkand, Uzbekistan
• EU defense ministers hold informal meeting in Warsaw

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