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

EU leaders gather today to discuss conflicts encircling the region, a day after NATO approved a historic boost to defense spending to position the alliance for a new age of warfare. The agreement was a boon for President Donald Trump, who had pressed European members of the alliance to stump up more cash. But it was equally important for EU nations, who had leveraged some royal pomp and much flattery to sway Trump on NATO’s importance. Now EU leaders are readying a message of strong support for Ukraine, despite Hungary blocking progress on membership talks for the war-torn nation. The summit is expected to give the green light to a new package of Russian sanctions, but before that, the Commission needs to address Hungary and Slovakia’s concerns over plans to phase out Russian gas imports by 2027.

— Samuel Stolton and Jorge Valero

What’s Happening

NATO Clause | NATO’s ‘Article 5’ commitment for members to defend one another when attacked is crystal clear, according to the EU’s top diplomat. Trump had earlier seemed to question the clause.  

Clean Tech | The EU loosened its state aid rules to foster investments into clean technologies. The move came in response to US and Chinese policies that had moved aggressively to support their own companies in climate-related investments.

Mars Attacks | Mars’s $36 billion bid for Pringles chips maker Kellanova has hit a fork in the road, after EU regulators opened an in-depth probe. Brussels watchdogs fear the deal could raise prices for consumers. 

Apple Offer | After being slapped with a €500 million EU fine earlier this year, Apple is set to offer fixes to regulators to avoid further penalties. The pledge will make it easier for developers to link away from the App Store.

Bad Banks | The EU agreed on rules to ease winding down smaller lenders in trouble. The legislation will facilitate access for failing banks to deposit guarantee funds.

Around Europe

Spain Jab | Trump threatened to penalize Spain economically after Prime Minister Pedro Sanchez refused to agree to NATO’s new defense spending target of 5% of GDP. The US presient suggested Spain could end up facing higher tariffs. 

Turkey Ask | President Recep Tayyip Erdogan pressed French counterpart Emmanuel Macron to involve non-EU allies like Turkey in helping shape Europe’s new security architecture. The pair spoke on the sidelines of the NATO summit yesterday.

Swiss Talks | Switzerland is jockeying for talks on a new defense pact with the EU. Fears in the country over a US withdrawal from the continent are prompting a rethink in security policy in Bern. 

Canada Security | After holding talks with European defense suppliers, Canadian Prime Minister Mark Carney said he expects to conclude a review of a major contract for Lockheed Martin F-35 jets soon. Canada recently signed a new EU security pact.

Greenland Spotlight | Greenland’s biggest miner Amaroq Minerals is in talks with several state-backed agencies as Trump’s political spotlight translates into concrete investor interest.

Chart of the Day

The EU wants China to understand the threat to European business emerging from Beijing’s new controls on magnets. Ambassador Jorge Toledo delivered the message to Chinese Foreign Minister Wang Yi that shortages in Europe are affecting supplies in the bloc “very, very badly.” Chinese exports of permanent magnets have slumped  in recent months after Beijing imposed permit requirements for shipments of some rare earths, hobbling global supply chains of cars and other high-tech products. Meanwhile, China’s trade surplus with the EU jumped almost 23% in the first five months of this year, hitting a record $117 billion.

Today’s Agenda

All times CET

• 8:10 a.m. EU competition chief Teresa Ribera gives an interview with Bloomberg TV
• 1 p.m. European economy chief  Valdis Dombrovskis meets European Investment Bank President Nadia Calviño
• 2 p.m. EU tech chief Henna Virkkunen speaks at CEPS event on EuroStack
• Trade commissioner Maros Sefcovic hosts EU-Vietnam trade committee in Vietnam
• Climate chief Wopke Hoekstra attends the London Climate Week

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