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

The EU plans to sketch out its road map to phase out Russian fossil fuels early next month, seeking to reduce import dependence on Moscow while lowering energy costs for industry. The plan, originally due earlier this year, was delayed as the EU weighed the impact of America’s shifting stance on Ukraine and amid efforts to maintain unity among nations in the bloc. Some member states increased imports of Russian liquefied natural gas after piped supplies were cut following Moscow’s invasion of Ukraine. The EU plan will explore options to reduce Russian energy imports, including the potential use of trade-related tools such as quotas or tariffs. The road map will be followed by a legal proposal. While sanctioning Russian gas is unlikely due to opposition from Hungary and Slovakia, tariffs can be adopted by a qualified majority.

— Gian Volpicelli

What’s Happening

Trade Diplomacy | The EU’s trade chief, Maros Sefcovic, was in Washington yesterday to meet with US Commerce Secretary Howard Lutnick and Trade Representative Jamieson Greer as President Donald Trump forges ahead with his trade war. Sefcovic’s objective, he wrote in a post on social media, is to try  “for a mutual solution to unjustified tariffs” and he reiterated that Europe “remains constructive and ready for a fair deal.”

Ammo Output | The EU’s top diplomat, Kaja Kallas, said the bloc can source as much as two thirds of the two million artillery rounds requested by Ukrainian President Volodymyr Zelenskiy. The announcement by Kallas came after a more ambitious plan to supply Kyiv with as much as €40 billion in military aid failed to gain traction.

Cracking Down | Hungary’s parliament amended the nation’s constitution, paving the way for a potential clampdown by Prime Minister Viktor Orban ahead of next year’s election. The reformed constitution, critics say, could be weaponized by the government to ban protests and the move is likely to exacerbate the EU’s clash with Orban over his consolidation of power.

Debate Fail | The front-runner in Poland’s upcoming presidential election slumped in polls just five weeks before the vote following an unconvincing performance in a TV debate. Warsaw Mayor Rafal Trzaskowski — tied to the ruling party — struggled against the main opposition candidate, Karol Nawrocki, whom he accused of anti-German phobias and of spreading Russian propaganda.

UK Rapprochement | Britain has signaled it’s prepared to retain some regulatory alignment with the EU and accept supervision of the bloc’s court over a deal to cut checks on imports of foods and agricultural products, we’re told. The move highlights the growing rapprochement between the two partners five years after the completion of Brexit.

Around Europe

Seeking Peace | Trump’s special envoy, Steve Witkoff, described his talks with Russian President Vladimir Putin last week as “compelling,” saying they discussed steps that could end the war in Ukraine and lead to business opportunities. Witkoff told Fox News yesterday that the key to an agreement revolves around “five territories.” He didn’t provide more details, but Russia insists that its seizure of parts of Ukraine since 2014 must be recognized in any deal.

Missile Strikes | Ukraine said Russian strikes on the northeastern city of Sumy on Sunday morning left 34 dead and more than 100 injured. Trump wrote on Truth Social yesterday that he was working “diligently” to end the war, while blaming Zelenskiy and former US President Joe Biden for allowing the conflict to begin.

Nuclear Talks | The US and Iran are expected to hold a second round of nuclear talks on Saturday in Rome. The negotiations coincide with a visit to Italy by US Vice President JD Vance, but it’s unclear if he’ll be involved. A first round of negotiations took place in Oman over the weekend, which both sides described as constructive.

London Slowdown | House prices in London will suffer more than any other part of the UK from Trump’s trade war, real-estate agents warned, as a global slowdown risks hitting the city’s already struggling market. Asking prices in London rose just 0.5% on average in April to £699,200, according to property website Rightmove.

Luxury Slump | LVMH sales fell more than expected in the first quarter, weighed down by weak demand for luxury goods in China and the US and the trade-war threat. Louis Vuitton owner LVMH is considered a bellwether for the luxury industry, which is struggling to emerge from a period of sluggish growth.

Chart of the Day

Euro-zone inflation will turn out slower than previously forecast because of higher US tariffs, according to our latest survey. Analysts see consumer-price growth averaging 1.9% in 2026 and 2% in 2027 — a downward revision of a tenth of a percentage point for each prediction. The findings bolster the case for the European Central Bank to cut interest rates.

Today’s Agenda

• EU foreign policy chief Kallas meets US Representative Keith Self, a Texas Republican
• EU Defense Commissioner Andrius Kubilius receives the chair of the NATO Military Committee, Giuseppe Cavo Dragone
• NATO Secretary General Mark Rutte meets with representatives of the presidency of  Bosnia and Herzegovina at NATO headquarters in Brussels