Crypto News: Brussels Edition: Saving the Green Deal

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

The European Greens were riding high less than two years ago, helping to negotiate a policy package to create the first climate-neutral continent by 2050. Then Russia invaded Ukraine. The ensuing energy crisis exacerbated a cost-of-living crunch for Europe's citizens who had barely recovered from the Covid-19 pandemic. The fallout has put the Greens on course to lose a third of their seats in next month's European Parliament elections. Surging support for climate-skeptical right-wing political groups leaves the future of the landmark Green Deal uncertain. Bas Eickhout, the party's lead candidate, told Bloomberg's Zero podcast how he hopes to turn things around and keep the deal alive.

— Jillian Deutsch and John Ainger

Russian Sabotage | From Berlin to Vilnius, governments are grappling with the growing threat from Russian-sponsored acts of sabotage and violent intimidation on NATO territory. Read more about how the Kremlin-sanctioned activities test the continent's support for Ukraine ahead of EU elections.

Putin Threats | President Vladimir Putin warned the West against threatening Russia and revived his nuclear saber-rattling during a military parade the same week he was sworn in for a fifth term. Russia has ratcheted up threats against the US and its allies as Ukraine struggles on the battlefield after months of delay in new military aid.

China Deals | Hungary said it struck 18 agreements with China during President Xi Jinping's visit to Budapest, the final leg of his swing through Europe. They included pledges to work together on rail infrastructure, nuclear energy, and electric-vehicle charging stations. Read more here about the key takeaways from Xi's visit.

Waning Investment | Meanwhile, China is losing its luster as a top country to invest in as firms seek to avoid geopolitical risks and turn to Southeast Asia and Europe, according to a new survey by the EU Chamber of Commerce in China. Only 13% of firms polled see the country as a top destination for investments, the lowest level since records began in 2010 and down from 27% in 2021.

Bank Debate | The ECB won't commit to what will happen beyond its planned June rate cut, according to the central bank's vice president. Debate among officials is heating up over how rapidly policy can be loosened following an initial rate reduction in June, with the economy having endured a mild recession in the latter half of last year.

Pyrrhic Victory | Spain's ruling Socialist Party is on course to win Sunday's Catalan elections, but that's not necessarily cause for celebration for Prime Minister Pedro Sanchez. Read our analysis on why the better his party performs, the worse the outcome may be for the Spanish leader.

Belgian Spending | Belgium is spending beyond its means, putting it on a path of ever-increasing debt. Read more here about how — with a population the size of Ohio's and a slightly smaller GDP — the country's public finances increasingly resemble that of the world's biggest economy, but without the impunity that comes with printing the dollar.

Croatian Right | Croatia's prime minister is on course to steer the nation to the political right after he agreed to form a coalition with Homeland Movement, an anti-immigration nationalist party. Three weeks after suffering an electoral setback, Premier Andrej Plenkovic pledged to maintain his agenda, saying Croatia's direction "won't change."

EU Club | Moldova's bid to join the EU received a boost yesterday when Budget Commissioner Johannes Hahn said the country will likely soon be able to start accession talks. Meanwhile, North Macedonia's main nationalist party claimed victory in a general election, opening the path for a coalition government that risks hindering already troubled talks on joining the bloc.

Thousands of tourists who used to come to Britain for tax-free shopping are now visiting stores in Paris, Milan and Madrid after the UK scrapped the incentive in the wake of Brexit. New analysis shows that 162,000 tourists from outside the EU sought refunds on VAT — a sales tax — exclusively in Britain in 2019. One fifth of those tourists are now claiming rebates in other parts of the EU, where the tax break still applies.

All times CET

Economy Commissioner Paolo Gentiloni delivers speech on climate transition in Rome
Financial regulation chief Mairead McGuinness delivers speech at the Financial Services Ireland annual meeting in Dublin

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