Brussels Edition: Fico highlights EU divisions

Welcome to the Brussels Edition. I'm Suzanne Lynch, Bloomberg's Brussels bureau chief, bringing you the latest from the European Union each

View in browser

Welcome to the Brussels Edition. I'm Suzanne Lynch, Bloomberg's Brussels bureau chief, bringing you the latest from the European Union each weekday. Make sure you're signed up. More than two weeks after Vladimir Putin's tête-à-tête with Donald Trump in Alaska,  the Russian leader found himself again on the global stage, sharing the limelight with China's Xi Jinping, India's Narendra Modi and not to be forgotten — Robert Fico. Slovakia's prime minister was in Beijing for China's "V-day celebrations," which mark victory over Japan 80 years ago. The optics of an EU leader cozying up to Putin are awkward to say the least, undermining the bloc's efforts to present a united front against Russia as a 19th sanctions package hangs in the balance. Along with Hungary's Viktor Orban, Fico has been hindering EU efforts to punish Moscow since Russia's full-scale invasion of Ukraine in February 2022, and he assured Putin at their meeting in Beijing that Slovakia would continue to accept Russian energy, criticizing an EU proposal that seeks to ban Russian gas by the end of 2027. Vladimir Putin and Robert Fico in Beijing on Sept. 2. Photographer: MAXIM SHEMETOV/AFP As Bloomberg's John Ainger reported overnight, EU countries are examining ways to plug any remaining loopholes to ensure that Russian gas won't be furtively mixed into the bloc's supplies once the ban takes effect. With the market to Europe all but closed, Russia and China announced a new pipeline via Mongolia in a win for Moscow. Fico is due to meet Ukrainian President Volodymyr Zelenskiy on Friday, but the Ukrainian leader may not get a sympathetic ear. Speaking alongside Putin, the Slovakian premier made it clear that his priority in his meeting with Zelenskiy is to take issue with Ukrainian attacks on infrastructure such as the Druzhba pipeline, which carries Russian crude to Hungary and Slovakia. In a reminder of what's at stake as Russia's war in Ukraine continues, NATO chief Mark Rutte cautioned that the threat from Russia is "increasing every day" and the much hoped-for  peace agreement is still in its early phase. His comments during a visit to Luxembourg come ahead of a hybrid summit of Ukraine's allies in Paris on Thursday.

The Latest

Spanish Prime Minister Pedro Sanchez committed to completing his term even if his government's allies in parliament reject his latest budget proposal. Belgium's government reached a deal to recognize Palestine as a state and adopt punitive measures against Israel, avoiding a political crisis over the issue which has divided the five-party coalition led by Bart de Wever.   Euro-zone inflation accelerated beyond the European Central Bank's target, according to figures, cementing expectations that officials will keep interest rates steady when they meet next week. Germany's highest-ranking general said a military exercise among NATO allies will likely overlap with a planned Russian drill and warned Moscow not to escalate tensions. Europe needs to help its copper smelters by stemming "huge" flows of scrap metal to China, Germany's Economy Minister Katherina Reiche said, potentially opening up a new front in trade tensions.

Seen and Heard on Bloomberg

Ludovic Subran, chief investment officer of Allianz SE, during a Bloomberg Television interview on, July 4, 2025.  Photographer: Jeremy Suyker/Bloomberg Allianz's chief investment officer has some advice for French Prime Minister Francois Bayrou: "put more water in his wine" when it comes to pushing through budget cuts. Ludovic Subran told Bloomberg Radio this morning that he believes there's still room to craft a compromise as Bayrou gambles on a no-confidence vote due next Monday. The team at our Brussels radio studio have been tracking the upward movement in European bond yields throughout today. France's 30-year borrowing costs briefly rose above 4.5%, for the first time since 2011. More in our Daybreak Europe podcast.

Chart of the Day

France's far-right National Rally said it's ready for fresh elections as the country prepares for the likely collapse of the current government. The nationalist party currently holds the most seats in the National Assembly and opinion polls predict it would finish first in the initial round of any snap vote, our Paris correspondent Samy Adghirni reports.

Coming Up

German Chancellor Friedrich Merz interview with Sat1/ProSieben TV this evening EU commissioners hold their weekly meeting tomorrow morning NATO Secretary General Mark Rutte visits Estonia tomorrow Bruegel's annual conference takes place in Brussels tomorrow German Foreign Minister Johann Wadephul holds talks tomorrow with his Indian counterpart in New Delhi

Final Thought

Arthur Heilbronn Photographer: Carly Stone/BFA.com/CAO_2819.jpg The dynasty behind the Chanel empire is putting its faith in 38-year-old Arthur Heilbronn to wield power over one of the best-known luxury brands in the world. The Harvard Business School graduate and ex-Goldman Sachs banker has taken on management positions overseeing his and his relatives' real estate, banking and media investments at Mousse Partners, the family office that oversees the $90 billion Chanel empire.

Like the Brussels Edition? Don't keep it to yourself. Colleagues and friends can sign up here. How are we doing? We want to hear what you think about this newsletter. Let our Brussels bureau chief know.

Follow Us

You received this message because you are subscribed to Bloomberg's Brussels Edition newsletter. If a friend forwarded you this message, sign up here to get it in your inbox. Unsubscribe Bloomberg.com Contact Us Bloomberg L.P. 731 Lexington Avenue, New York, NY 10022