| Welcome to the Brussels Edition, Bloomberg's daily briefing on what matters most in the heart of the European Union. Poland is poised to win approval today for its plan to spend 36 billion euros of the EU's post-pandemic stimulus. The deal has been delayed for a year as the country's ruling coalition resisted demands to roll back some contested changes in the judiciary. A vote last week striking down a key piece of Poland's court legislation eased the deadlock. The government in Warsaw needs the money to help with more than 3 million refugees fleeing Russia's war in Ukraine. Commission President Ursula von der Leyen will be in the Polish capital tomorrow to mark the ocassion. — Piotr Skolimowski and Jorge Valero Croatia Verdict | The Commission and the ECB will publish reports today on progress by euro candidates toward adopting the common currency. All eyes are on Croatia, which is planning to join the club next year and whose central bank chief has been optimistic it will get the green light. A positive recommendation from the Commission would need to be confirmed by national governments. Sanctions Pause | With details of a sixth package of sanctions still to be finalized by EU ambassadors, some leaders warned a new round of measures anytime soon seems unlikely as measures against Russia are increasingly hurting Europe. "This package is a big step forward, we should pause it right now," Belgian Prime Minister Alexander De Croo said. Other leaders, including Estonia's Kaja Kallas, were also cautious about including gas in the next package. Food Aid | EU leaders discussed yesterday the mobilization of additional EU funds to address the food crisis in Africa, as Russia's invasion of Ukraine deprived the continent of vital supplies. The Commission will tap reserves of the European Development Fund to boost aid to the continent, we're told. Some governments are concerned about the ramifications of the global food crisis, including more migrants making their way to Europe. Record Inflation | Euro-area inflation reached an all-time high, intensifying a debate about how quickly the ECB should raise interest rates from record lows. Prices jumped 8.1% from a year earlier in May, driven by food and energy as Russia's invasion of Ukraine sent commodity prices soaring. ECB Governing Council member Ignazio Visco warned interest-rate hiking must be "orderly" to avoid threatening the euro zone's integrity. Weapons Deal | Germany and Greece agreed to send more heavy military equipment to Ukraine to help fend off Russian forces, as Berlin draws criticism from Kyiv for apparent delays to shipments of heavy weapons. Russia's equity benchmark fell for a third consecutive session yesterday after EU leaders agreed on a partial ban on Russian oil. Follow our Ukraine updates here. Germany's Spending | Germany will prioritize its air force as part of a 100 billion-euro spending spree to modernize its military after Russia's invasion of Ukraine. About 41 billion euros will be directed at air power, including further developing the Eurofighter and buying F-35 warplanes as well as establishing a space-based early warning system, according to a government we've seen. Gas Cut | Russia will halt gas shipments to Denmark today for refusing to pay in rubles, just as the Nordic country holds a referendum on joining the EU's defense pact. Four other European countries and a small contract supplying Germany have also had their supplies halted as the gas war intensifies. But the bloc's top buyers have paid according to the new terms, and no more companies will get cut off, we've been told. No Response | The OPEC+ coalition will likely hold firm to its oil production plans this week. The group considers there is still no severe disruption to Russian exports and so little action is needed, officials told us. But with most members struggling to increase production, the decisions of the 23-nation alliance are becoming largely symbolic. Oil's rally slowed as inflationary fears dragged down broader markets, but crude was still on course for its longest run of monthly gains in more than a decade after EU leaders agreed on a partial ban on imports from Russia. West Texas Intermediate futures in New York pulled back after rising almost 5% to top $119 a barrel, the highest since early March. Most traders believe prices over $120 should lead to some demand destruction, but that may not occur until after the summer driving season. All times CET. - 1:35 p.m. Commissioner Paolo Gentiloni delivers speech at Capital Markets Union Conference
- 4 p.m. College meeting starts
- 6:15 p.m. German Chancellor Olaf Scholz and Croatian Prime Minister Andrej Plenkovic hold news conference after talks in Berlin
- EU Vice President Maros Sefcovic receives members of the Czech Senate and Polish Minister Waldemar Buda
- EU Executive Vice President Margrethe Vestager participates in meeting of European Parliament Intergroup on SME
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