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

The EU has issued its first fines under a powerful rulebook to keep Big Tech in check, and for now, the bloc has managed to avoid triggering the fury of US President Donald Trump. Apple and Meta were hit with relatively modest penalties of €500 million and €200 million respectively for violating the bloc’s Digital Markets Act —  some of the smallest fines the EU has issued in recent years against Silicon Valley giants. The move is viewed as a strategic maneuver to evade Trump’s wrath. He’s threatened to retaliate against non-tariff trade barriers and may still lean on the penalties to win concessions in EU trade talks. A spokesman for the US National Security Council, in the White House, called the DMA a “discriminatory” part of the EU’s “regulatory death spiral.” For their part, regulators in Brussels have distanced their Big Tech crackdowns from the spiraling tariff spat.  

— Samuel Stolton

What’s Happening

Peace First | Ukraine and European allies have told the US that any peace deal with Russia should come only in the wake of a ceasefire and with more clarity on security guarantees. European officials worry that the rush to halt the conflict may stack the odds against Kyiv.

Securities Boost | Eurex, Europe’s largest bond exchange, will unveil a contract for EU debt in September, a move it says will boost liquidity for the bloc’s securities. Officials have long debated launching a futures market for the bloc’s joint debt. 

Climate Alliance | European Commission President Ursula von der Leyen and China’s Xi Xinping discussed their countries’ respective climate ambitions in online talks hosted by the United Nations. Many see a Brussels-Beijing alliance as crucial in the fight against global warming. 

Vehicle Bump | European car sales returned to growth last month for the first time since December, with gains in the UK and robust demand for electric vehicles making up for weaker sales in Germany and France.

Around Europe

Keep Calm | French Finance Minister Eric Lombard tempered his country’s approach to Trump’s global trade threats, calling on the EU to avoid retaliating. The comments are a step back from Paris’s earlier more combative stance. 

Atomic Energy | In a significant shift for the country’s socialist government, Spain has indicated that it is willing to reconsider closing all of its nuclear plants over the next decade. Countries across the globe are reviving nuclear power in a push for greater energy independence, as solar and wind farms require the development of large-scale battery infrastructure.

Business Trip | Trump’s eldest son will travel to eastern Europe to strengthen his family’s business ties, we’ve been told. Donald Trump Jr. will arrive in Hungary this week and will also travel to Bulgaria, Romania and Serbia. 

War Town | Estonia is planning to build a military base in the easternmost city of Narva as part of Baltic nation’s latest move to bolster security along the Russian border. Estonia has doubled its defense budget in recent years. 

Defense Cash | Portugal will ask the EU to allow an exception to its fiscal rules in order to boost defense spending. Prime Minister Luis Montenegro has said Portugal wants to accelerate its timeline for meeting NATO’s defense spending goals. 

Chart of the Day

Bloomberg

Europe’s most valuable company, SAP, gained the most in six years after it reported estimate-beating first-quarter profits. Shares rose as much as 11% on Wednesday, the biggest intraday jump since April 24, 2019. The boost is fueled by the firm’s pivot to cloud services. Despite the growth, the company said the “prevailing dynamic environment implies elevated levels of uncertainty and reduced visibility.”

Today’s Agenda

All times CET

• 2 p.m. EU jobs commissioner Roxana Minzatu visits Louis Vuitton workshop in Paris alongside French Employment Minister Catherine Vautrin
• 3:40 p.m. Commission President von der Leyen delivers speech at IEA summit on the future of energy security in London; Energy Commissioner Dan Jorgensen will also participate
• 3:55 p.m. EU international partnerships commissioner Jozef Sikela will holds a fireside chat at the 2025 spring meetings of the World Bank Group and the IMF
• 6 p.m. EU foreign affairs chief Kaja Kallas holds joint press conference with Maia Sandu, President of Moldova 
• NATO chief Mark Rutte meets US Secretary of State Marco Rubio, Secretary of Defense Pete Hegseth and National Security Advisor Mike Waltz in Washington, D.C.