Brussels Edition: Talking migration in Tirana

Migration is on the agenda today at the European Political Community summit in Tirana.

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Welcome to the Brussels Edition, Bloomberg's daily briefing on what matters most in the heart of the European Union. Migration will be high on the agenda at today's European Political Community summit in Tirana. Leaders including Germany's Friedrich Merz, Emmanuel Macron of France, Britain's Keir Starmer and Ukrainian President Volodymyr Zelenskiy will all attend. They'll also discuss Russia's war on Ukraine and how to boost the continent's competitiveness. The summit comes with Albanian Prime Minister Edi Rama riding high after he secured an unprecedented fourth term in office. As governments across the continent seek to convince voters they have irregular migration under control, Starmer said at a press conference with Rama in Albania yesterday that the UK is in talks with several countries about hosting so-called return hubs for failed asylum seekers. — Saim Saeed

What's Happening

Putin No-Show | EU leaders accused Russian President Vladimir Putin of trying "to play for time" after he appointed a low-level delegation to go to Turkey for talks due to take place today on ending his war on Ukraine. US Secretary of State Marco Rubio played down expectations, echoing earlier remarks from President Donald Trump, who said that "nothing's going to happen" until he meets the Kremlin leader. Trade Offer | The EU is revising its proposals for a potential trade deal with the US, providing more details on ways to lower trade and non-tariff barriers, and boost European investments in the US, we understand. Despite slow progress, European trade ministers believe they can get a deal after the US reached agreements with the UK and China. Reset Prep | The UK and the EU have to settle for more modest goals to "reset" their relationship. With both sides keen on their red lines — no loosening of immigration rules for the UK, and no favorable trading terms without free movement and full alignment with EU rules for the bloc — the focus of discussions has been on less contentious areas ahead of a UK-EU summit on Monday. Age Limits | France, Spain and Greece are pushing for mandatory age restrictions for users of social networks including Facebook and X, according to a document we've seen. Digital services ministers from the three nations are coordinating on the proposal ahead of a meeting with EU counterparts on June 6, the document shows. Water Standards | The commission will work on setting minimum performance standards to curb water usage in data centers as the continent grapples with potential shortages over the coming decades. It will propose the measure by the end of 2026 as part of a plan to make data centers more sustainable, according to a document we saw.

Around Europe

Romanian Turmoil | Investors are treating Romania's eurobonds on a par with junk-rated debt due to months of political turmoil, and Sunday's presidential run-off brings fresh risks for the currency and local debt. The outcome of the election may affect the country's fiscal consolidation path and access to EU funds. Trade Quotas | The EU is considering reinstating quotas on imports of several agriculture goods from Ukraine, a move that could end trade relief for the war-hit nation. The commission plans to reintroduce limits on Ukrainian wheat, corn, barley, poultry and eggs from June through December, according to documents we saw. Airspace Incursion | Russia deployed a fighter jet in NATO airspace after Estonia tried to inspect a tanker passing its economic area, according to Estonian Foreign Minister Margus Tsahkna. Estonian ships and aircraft followed the Russia-bound oil tanker Jaguar, concerned it could pose a threat to undersea electricity cables. Defense Deals | Europe's fragmented defense industry will eventually succeed in creating players that can take on rivals from the US and China, according to the CEO of Leonardo, Italy's largest defense contractor. "I have no doubt that in the future, Europe will find a way" to create defense giants, Roberto Cingolani told us in an interview. WEF Strife | Klaus Schwab's abrupt departure from the World Economic Forum, the organization he founded and led for more than half a century, has complicated carefully laid plans to persuade Christine Lagarde to assume the helm in a seamless transition, we've learned. Schwab, 87, had intended to stay on until early 2027, the same year Lagarde's term as European Central Bank president comes to an end, but he left last month amid accusations of financial misconduct, which he denies.

Chart of the Day

The German government will reap €33.3 billion less than expected in tax income through 2029 due to the economy's sluggish performance, according to updated estimates published yesterday in Berlin. Finance Minister Lars Klingbeil said the forecasts won't make the process of finalizing the new government's budgets for this year and next any easier.

Today's Agenda

All times CET 11:45 a.m. The leaders of Albania, Ukraine, France, the UK, Turkey and Germany, as well as European Council President Antonio Costa and Commission President von der Leyen speak at the European Political Community summit in Tirana 2:45 p.m. The defense ministers of Germany, France, Britain, Poland and Italy give a joint news conference after talks in Rome

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