| Welcome to the Brussels Edition, Bloomberg's daily briefing on what matters most in the heart of the European Union. Boris Johnson's decision to resign as UK prime minister may bring glee in some EU quarters but regardless of who succeeds him, it's unlikely to result in a sea change in EU-UK relations. That's according to an EU diplomat who noted that Johnson's resignation had very little to do with his Brexit approach. Relations between Brussels and London have deteriorated in recent months after the UK proposed a bill to unilaterally override parts of the Brexit agreement, risking a trade war with the bloc. Another diplomat said it was hard to see how the situation could get any worse than under Johnson, who treated the bloc with disdain. It's unclear what will become of the bill under the next British leader but the hardline Liz Truss succeeding Johnson wouldn't bode well for EU-UK relations, the diplomats said. — Natalia Drozdiak Ditched Limits | Germany is set to ditch its plan to return to strict borrowing limits next year if Russia stops natural gas deliveries for good, we're told. There's a silent agreement among cabinet members of Chancellor Olaf Scholz's coalition that Berlin can't stick to its fiscal plans if Russian President Vladimir Putin uses scheduled maintenance on the Nord Stream pipeline as an excuse to end gas flows for a longer period. True Friend | Ukrainian President Volodymyr Zelenskiy said he's confident UK policy toward his country won't change with Johnson's decision to resign. Calling Johnson "a true friend of Ukraine," Zelenskiy told CNN that his country has gained a lot from the relationship, especially in military support. Crisis Tool | ECB policy-makers have a working name for their new crisis tool but aren't yet saying for sure that it will be ready by their July 21 decision, we're told. The measure is being referred to as the Transmission Protection Mechanism, though that could still change when it is unveiled. Catch 22 | The EU's executive is blocking a 1.5 billion-euro ($1.5 billion) loan for Ukraine as caution prevails over the country's urgent needs, in what amounts to a Catch-22 for the country. Ukraine is pushing for help to keep its economy afloat as it counters the Russian invasion, but has seen the proposed loan blocked by the Commission's budget unit because of concerns over its financial reliability, officials said. Travel Chaos | British Airways reached an agreement with check-in employees to head off a strike that threatened further disruption after the carrier scrapped thousands of flights amid a staffing crunch. Meanwhile, Lufthansa is preparing another wave of flight cancellations due to staff shortages. Air France-KLM's low-cost carrier Transavia is at risk of walkouts by cabin crew this summer. Abortion Rights | EU lawmakers voted to uphold abortion rights in the bloc and denounced a backslide in women's health rights in the US following the Supreme Court's abortion ruling. In a largely symbolic vote, members of the European Parliament backed a call to include the right to abortion in the EU charter of fundamental rights. Flying Green | EU lawmakers voted to make air travel almost green by the middle of the century, backing plans to rapidly scale up the use of so-called sustainable aviation fuels. While that doesn't mean that your sense of flight shaming will fade anytime soon, it potentially marks the start of a radical overhaul for the second-most polluting form of transport. Hungary Bends | Hungary has decided to accept the Commission's demands in four key areas including tackling corruption, a senior Hungarian official said of talks to unlock crucial funding. The concessions comes as Prime Minister Viktor Orban is under intense pressure to compromise on key issues to help reverse a dramatic currency decline. French Test | The government unveiled a package of measures aimed at sheltering households from the shock of surging inflation, in the first test of whether President Emmanuel Macron's economic agenda will survive him losing an outright majority in parliamentary elections last month. Meanwhile, Finance Minister Bruno Le Maire said companies have until the end of the year to increase wages amid rising prices. Kyiv Flights | Ukraine International Airlines, which stopped operations in late February when Russia began its invasion, has agreed to fly charters from Polish cities to holiday destinations in Spain, Egypt, Tunisia, Albania and Turkey. UIA and Polish tour operator Itaka will analyze possibilities to add more destinations and extend their cooperation until the end of the high tourist season. The supply squeeze has unsettled gas markets. Europe's benchmark futures, which have doubled in value over the past month, yesterday were headed for the longest stretch of daily gains in more than nine months. The higher prices coupled with a supply shortage are putting companies such as Uniper at risk. Germany's biggest buyer of Russian gas is in talks with the government over a bailout as it struggles to fulfill delivery contracts amid the price surge. All times CET. - 9.30 a.m. EU's top court gives a non-binding opinion in a challenge by Airbnb against a new Italian tax system
- Commission President Ursula von der Leyen, Commissioner Paolo Gentiloni in Long Island, US for a United Nations Retreat
- Commissioner Frans Timmermans holds a Climate and Environment Dialogue with China, via video conference
- Commissioner Helena Dalli delivers a keynote speech at the Madrid LGBTIQ and Pride March
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