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

The EU has shared a revised trade proposal with Donald Trump’s administration, which takes US interests on issues including labor rights, environmental standards and economic security into account, we’re told. The proposal — sent to officials in Washington earlier this week — includes measures to gradually reduce tariffs to zero on both sides for non-sensitive agricultural products as well as industrial goods. It marks a push by the bloc to inject momentum into talks with the White House — despite skepticism about whether a transatlantic deal can be reached. The commission’s offer comes in response to a paper shared by US counterparts, which one EU official described as a wish list of unrealistic demands. Technical talks are ongoing, and the two sides are aiming to meet in early June.

— Max Ramsay

What’s Happening

Stronger Market | In the face of trade tensions with the US, the EU unveiled plans to strengthen its common market by reducing barriers to trade, accelerating digitalization and helping boost small and medium-sized companies. After the announcement the bloc’s industry chief Stephane Sejourne told Bloomberg TV that he’s making the European case to CEOs to keep their companies in the EU. 

‘Reverse Yankee’ | Giants of corporate America are borrowing in euros like never before, inking more than €83 billion in deals, we’ve calculated. It’s an early sign that Trump-induced dollar volatility, inflated treasury yields and fears about US debt are fueling a reweighting towards Europe. 

Diversity Battle | European officials are debating how to respond to US efforts to thwart DEI programs within the bloc. The two regions have come close to clashing over anti-discrimination policies after US embassies sent letters to companies demanding they certify they don’t have DEI programs that violate US law.

Battlefield Data | Russian forces in Ukraine have made only small territorial gains this year amid steady resistance from Kyiv’s military, according to mapping data. That undercuts President Vladimir Putin’s assertions that his army has gained the upper hand in the war. 

Around Europe

Panzer Brigade | As Germany ramps up its battle tank brigade in Lithuania to strengthen NATO’s eastern flank, Chancellor Friedrich Merz and Defense Minister Boris Pistorius are in Vilnius to take part in a ceremonial roll call. With the US expected to pare back security commitments, Germany has pledged to play a greater role in the continent’s defense.

Wind Subsidies | Denmark is signaling it intends to hold on to its reputation as the global leader in wind power by offering developers huge subsidies for new wind farms despite huge costs. This comes five months after a failed auction for offshore turbines delivered a blow to the country’s expansion plans. 

Power Link | Spain and Portugal have called on the EU to accelerate the completion of a cross-border power connection with the Iberian Peninsula after a recent blackout highlighted risks for the region’s electricity supply. A planned interconnector with France must be “urgently completed,” the countries’ energy ministers wrote in a letter to EU energy chief Dan Jorgensen

European Aspirations | British soccer club Crystal Palace may not be able to play in the lucrative Europa League next season — despite winning a major trophy which would normally secure qualification. Rules say teams with common shareholders can’t play in a European competition in the same season, and Crystal Palace shares a co-owner with France’s Olympique Lyonnais, which could also qualify this weekend.

Chart of the Day

Italy will have a chance tomorrow to start shedding the near-junk status that has hung over Giorgia Meloni’s premiership. Suspense reigns as Rome waits for a review verdict from Moody’s, the only major rating assessor to have assessed Italy at the last rung of investment grade. We’re told officials are quietly confident that the country is now on a firm path toward improving its credit status.

Today’s Agenda

All times CET

• 11:20 a.m. Economy Commissioner Valdis Dombrovskis speaks at the Brussels Economic Forum
• 12:40 p.m. EU foreign affairs chief Kaja Kallas holds a press conference in Belgrade, Serbia and another one in Pristina, Kosovo at 4:15 p.m.
• 2:30 p.m. NATO Secretary General Mark Rutte holds a press conference with Norwegian Prime Minister Jonas Gahr Støre in Oslo
• 3:00 p.m. Parliament President Roberta Metsola speaks at Timișoara Award for European Values ceremony in Romania
• 3:30 p.m. EU tech chief Henna Virkkunen on panel at Brussels Economic Forum

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