Crypto News: Brussels Edition: Ukraine’s wartime shakeup

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

The EU was caught off guard by the resignation of one of Ukraine's highest-profile politicians — foreign minister Dmytro Kuleba — as part of an unexpectedly broad government shakeup that has seen six cabinet members step down in the past two days. Kuleba, a familiar figure in Brussels and European capitals, has been the face of Ukraine's efforts to forge paths into NATO and the EU. He'll likely be replaced by his deputy, Andrii Sybiha. The move has rattled Western allies, who were also surprised by last month's incursion into Russia's Kursk region. Kuleba's successor will have to juggle growing weariness in European capitals over the war and the risk of shifting US support under a Trump presidency.

—Andrea Palasciano

Draghi Show | Mario Draghi met with EU ambassadors and European parliamentary leaders in Brussels to discuss his hotly anticipated report on enhancing the bloc's competitiveness. The former ECB Chief highlighted key challenges facing the EU and described the structure of the roughly 400-page document, which is expected to be released on Monday.

Air-Defense Splurge | Chancellor Olaf Scholz took delivery of an advanced air-defense system for the German armed forces and confirmed orders for five more, as well as an additional 17 for Ukraine. He said the procurement will play a key role in strengthening the Germany-led European Sky Shield Initiative, designed to protect the continent from air strikes, and it shows that "German support for Ukraine is not letting up."

Over Politics | Swedish Foreign Minister Tobias Billstrom is stepping down, having helped negotiate his country's entry into NATO as part of the biggest shift in Europe's security landscape since World War II. Sweden has been a staunch supporter of Ukraine, and during his tenure Billstrom stepped up arms transfers to the embattled country.

EU vs AI | Elon Musk's X agreed to stop processing the personal information of European users to train its artificial-intelligence chatbot Grok, bowing to EU demands. The company will delete the personal data collected in public X posts between May 7 and August 1 of this year.

Russian Exit | Western companies that exited Russia immediately after the full-scale invasion of Ukraine suffered big losses. Two years later, it's clear that those conditions were the best they could have gotten. Read an excerpt of Stephanie Baker's Punishing Putin: Inside the Global Economic War to Bring Down Russia, out on September 10, to learn how firms leaving Russia did so on Putin's terms.

VW Woes | Warnings of possible VW factory closures in the carmaker's home country of Germany are the most powerful sign yet of the decline of manufacturing in Europe's top economy. The reverberations are cultural and economic too in a nation that was hastily sewn together after the fall of the Berlin Wall but faces the reality that the reunification project has come at a cost. Here's a closer look.

Budget Français | Bank of France Governor Francois Villeroy de Galhau sketched out a road map for repairing the country's finances and urged quick action as President Emmanuel Macron continues to hesitate over appointing a new prime minister. On the menu: cutting spending and "overcoming the taboo" of raising taxes.

Birkin Millionaires | The family behind Hermès, the richest in Europe, has accumulated so much wealth that even a distant blood relative can make his children millionaires by donating a few shares of the luxury giant's stock. The maker of Birkin and Kelly handbags and silk scarves is successfully weathering the industry downturn, unlike some of its peers.

Deutsche Bank Chief Executive Officer Christian Sewing called on Germans to lift the country's flagging economy by simply working as much as their EU peers. According to Eurostat data, Germans work fewer hours a week on average than those in other Western European countries including Spain, France, Italy and Portugal. "We simply have to tell our fellow citizens that we have to do more again," he said.

NATO Secretary General Jens Stoltenberg to visit Norway
European Parliament President Roberta Metsola attends G-7 Speakers Conference in Verona, Italy

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