Boris Johnson has at long last fired off his first salvo. Now call in the lawyers. The bill unveiled by his government yesterday seeks to grant the UK powers to unilaterally rewrite the bulk of the Northern Ireland protocol, which kept the region in the EU single market after Brexit. British Foreign Secretary Liz Truss called it “a reasonable, practical solution,” but Johnson faces a fresh fight with his own Conservative Party over the plan. The EU, despite its anger, remained reserved, with Commissioner Maros Sefcovic saying it would consider both new infringement proceedings and unfreezing earlier legal action. Reluctant to ramp up tensions in the short term, Brussels is likely to keep a close watch on the bill’s progress through parliament as it weighs its reaction. Down the line, financial penalties may be imposed on the UK — and, more significantly, the EU might suspend its trade agreement with Britain.

— John Follain

What’s Happening

German Rescue | The German government is preparing to lend billions to rescue a former arm of Gazprom now under the control of the country’s energy regulator, we’re told. A bailout for Gazprom Germania could come as early as this week, with a loan in the range of 5 billion euros to 10 billion euros. The money would help stabilize finances and ensure security of supply after Russia curbed shipments to its former unit. 

Green Rules | EU lawmakers from the European Parliament’s environment and economy committees will vote today on an objection to including gas and nuclear power plants in the bloc's list of sustainable activities, known as the Taxonomy. Support for a rejection could set the stage for a politically-charged showdown next month, when all 705 deputies will have the chance to torpedo the plan.

Carbon Reform | The European Parliament’s environment committee will also vote on reform of the bloc’s carbon market today, seeking to avoid a delay in further negotiations on the overhaul after lawmakers last week unexpectedly failed to clinch a deal. Political groups in the assembly decided yesterday that the committee will hold a procedural vote to send the reform to the next plenary on June 22-23, we’ve been told.

Macron’s Week | French President Emmanuel Macron has a week to convince voters to give him an outright majority in parliament. A setback would force him to contend with an emboldened leftist bloc united around a key objective: undo his pro-business agenda.  

Russian Assault | Russia continued its assault on Sievierodonetsk, pushing Ukrainian troops out of the center in what is Kyiv’s last foothold in the Luhansk region. Russia’s use of cluster munitions and indiscriminate shelling in Kharkiv, Ukraine’s second-largest city, constitutes a war crime, Amnesty International said. Here’s the latest news on Ukraine.

In Case You Missed It

Raising Rates | The European Central Bank is expected to raise interest rates in quarter-point increments following a hike of twice that size planned for September, economists tell us. To curb surging inflation, the ECB has pledged to lift borrowing costs for the first time in more than a decade in July, and survey respondents said it will increase them further at each of this year’s three remaining meetings.

Nuclear Talks | Iran said an agreement with the US that could help revive the 2015 nuclear deal was “within reach,” days after its decision to further restrict monitoring of atomic sites prompted warnings that the pact was almost beyond saving. Foreign Ministry spokesman Saeed Khatibzadeh said that Iran’s June 8 removal of some International Atomic Energy Agency cameras were “technical measures” and “reversible.”

Foreign Power | China has overtaken the US as the foreign power seen as having the biggest positive influence in Africa by young people, according to a survey. The results are further evidence that China is winning the battle against geopolitical rivals such as the US and the EU for the hearts and minds of Africans, with Beijing plowing vast sums of money into African infrastructure over the past two decades.

CIA ‘Lure’ | An Austrian banker wanted by the US on money laundering charges claimed he was “lured” by a longstanding CIA agent to fly his private jet to London, where he was promptly arrested at the airfield. Peter Weinzierl, the former chief executive officer of Austrian private bank known as Meinl Bank, is fighting extradition to the US. 

Chart of the Day

A selloff in European government bond markets gathered momentum yesterday as traders priced in a more aggressive pace of tightening from the ECB amid mounting concern over the deteriorating inflation outlook worldwide. Italian bonds tumbled for a fourth day as they led losses across the region, with 10-year yields pushing past 4% for the first time since 2014. The yield on Germany’s two-year government debt — the most sensitive to changes in policy — climbed above 1% for the first time in more than a decade. 

Today’s Agenda

• Commission President Ursula von der Leyen delivers speech and meets Prime Minister Naftali Bennett in Israel; also visits Ramallah and meets with Palastinian Prime Minister Mohammad Shtayyeh
• Commissioner Didier Reynders, prosecutor Karim Khan of International Criminal Court take part in conference in The Hague, co-hosted by the Netherlands, on investigating atrocities in Ukraine
• EU health ministers meet in Brussels
• WTO ministerial conference in Geneva
• EU-Indo-Pacific high-level meeting in Prague
• EU climate chief Frans Timmermans in Vienna for panel with US EPA chief Michael Regan and Arnold Schwarzenegger at Austrian World Summit

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