Brussels Edition: Will Putin show?

NATO's foreign ministers are gathered in Antalya today to discuss the military alliance's upcoming summit and the colossal effort underway to ensure that all 32 members meet Trump's demand to hit a defense spending target of 5% of GDP

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Welcome to the Brussels Edition, Bloomberg's daily briefing on what matters most in the heart of the European Union. NATO's foreign ministers are gathered in Antalya today to discuss the military alliance's upcoming summit and the colossal effort underway to ensure that all 32 members meet Trump's demand to hit a defense spending target of 5% of GDP. But budget matters may not be top of mind for those assembled, as Ukrainian President Volodymyr Zelenskiy will also meet with Turkish President Recep Tayyip Erdogan in Ankara. The looming question is whether they'll be joined by Russian President Vladimir Putin. While Putin himself initially proposed the talks, late last night he named a low-level delegation to represent his government. Any talks would mark the first direct Ukraine-Russia meeting in years. — John Ainger and Andrea Palasciano

What's Happening

Be Prepared | EU trade ministers meet today to start drawing up a list of the €95 billion worth of US goods that will be hit with tariffs if the bloc fails to reach a negotiated solution with the Trump administration over its levies. They are also expected to discuss the risk of trade being diverted, particularly from China.  Russia Compensation | Hungary and Slovakia called on the EU to explore ways to compensate countries should the bloc end imports of Russian fossil fuels by the end of 2027. Hungary has estimated its costs at as much as €2 billion as a result of the plan. Farmer Friendly | The EU will provide simpler financing for farmers and ease strict environmental rules after months of protests against the bloc's agricultural policies. The announcement comes as the EU tries to slash red tape to make it easier to do business. VDL's Embarrassment | European Commission President Ursula von der Leyen lost a court fight against attempts to force her to disclose secret text messages with Pfizer's boss as the bloc was negotiating massive vaccine deals at the height of the Covid-19 pandemic. Here's what that ruling means for her, and for future arrangements. Swiss Block | Switzerland says it can unilaterally cap immigration from the EU under its new agreement with the bloc, an announcement aimed at deflecting domestic criticism that the deal undermines its ability to manage its borders. With this, the Swiss are raising the possibility of a calculated breach of an agreement struck last year.

Around Europe

Financial Meltdown | ECB Governing Council member Joachim Nagel said financial markets were close to a meltdown after last month's US trade announcements, highlighting market vulnerability to erratic economic policies. That's left the direction of interest rates uncertain. Arming Up | German Chancellor Friedrich Merz said his government's top priority is to transform his country's armed forces into Europe's strongest conventional army to help counter the rising threat from Russia. The country will find other ways to save money, according to his new finance minister. Serbian Strongman | While many European nations are still reeling from Trump's willingness to undermine transatlantic ties, Serbia is positioning itself at the nexus of the Trump family's interests. A tour of Belgrade shows how President Aleksandar Vucic is cultivating links with the MAGA movement — and how he could reap the rewards. Moneyed Milan | Italy's plan to lure rich foreigners from the UK is known in private wealth circles as "svuota Londra" or "empty London." Judging by the recent wave of departures, it's working. Here's why Milan is proving so attractive.

Chart of the Day

China's widening trade surplus with the EU is fueling fresh concern that the 27-nation bloc risks becoming a dumping ground for cheap goods amid a volatile tariff confrontation between the US and China. As European officials step up to ward off a flood of Chinese products, data already indicates that China's surplus with the EU reached a record $90 billion in the first four months of this year.

Today's Agenda

All times CET 9 a.m. EU trade ministers meet 12:30 p.m. Press conference by commissioners Teresa Ribera and Dan Jorgensen on housing EU environment chief Jessika Roswall speaks at the Raw Materials Summit 2025 NATO holds informal ministers meeting in Antalya, Turkey EU defense chief Andrius Kubilius travels to Italy European Council President Antonio Costa travels to North Macedonia and Albania

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