The EU today will announce plans to bring financial institutions along on its goal to create a carbon neutral continent by 2050. Among proposals are tighter measures on banks and credit rating agencies to prevent so-called "greenwashing," and making sure the market properly assesses which industries will be most vulnerable to climate change. The bloc will also unveil its "green bond standard," a voluntary rulebook that issuers of environmentally friendly debt will have to follow to get the EU stamp of approval. This is a key test for the world of finance, which has preached the need to shun dirty investments. Next week will see a torrent of green rules and regulations under the “Fit for 55” package, with proposals including a phase out of emission allowances for airlines. - John AingerandJohn Follain

What’s Happening

Grilling Jansa  | Expect Slovenian Prime Minister Janez Jansa to face a grilling at a news conference today on his country’s presidency of the EU. The nationalist premier has taken the helm just as the bloc struggles to halt an authoritarian tilt in its eastern wing.

China Talks | German Chancellor Angela Merkel and French President Emmanuel Macron urged China to allow more flights from the continent, as the two leaders pressed for closer cooperation and the resumption of business in talks with Chinese President Xi Jinping. Topics also included the pandemic, vaccine supply, climate protection and human rights.

Tusk’s Return | Donald Tusk returned to domestic politics with guns blazing, branding the Polish ruling party’s euro-skeptic policies a gift for Russian leader Vladimir Putin. The former president of the European Council, who took the reins of the biggest opposition party, pledges to reverse Poland’s drift with the likes of Hungary toward the EU’s fringe.

Lofven’s Return | Stefan Lofven, the leader of Sweden’s Social Democrats who was forced to resign as prime minister last month, will seek to form a new government via a parliamentary vote after enough parties promised not to block his comeback. Swedish politics have been upended since the rise of the anti-immigration Sweden Democrats.

In Case You Missed It

Pfizer Shield | Protection from Pfizer’s vaccine against mild forms of Covid-19 appeared to wane after a few weeks in data garnered in Israel as the delta variant took hold, although the shot continued to shield users against severe illness. Those who were vaccinated remained far less likely to be hospitalized, with protection dropping only slightly. 

Bettel Observation | Luxembourg Prime Minister Xavier Bettel will remain hospitalized, to be kept under observation for two to four days, after testing positive for Covid-19. His condition is “serious, but stable.” 

Hacker Targets | The hackers behind a mass ransomware attack exploited previously unknown vulnerabilities in IT management software made by Kaseya Ltd., the latest sign of the skill and aggressiveness of the Russia-linked group believed responsible for the incidents.

Electric Tussle | France is talking tough to defend Electricite de France. Finance Minister Bruno Le Maire said it will be difficult for the country to accept the European Commission’s requests regarding a proposed reorganization of the state-controlled utility. The Commission wants to ensure the plan won’t affect power market competition.

Chart of the Day

France desperately needs pension reform, just not right away. That’s the message for President Emmanuel Macron from a chorus of top business leaders, days before he’s set to announce whether he’ll attempt change before the 2022 election. With the economy staging a comeback, many business leaders are wary of once again rocking the boat after his first attempt to repair the country’s system triggered strikes.

Today’s Agenda (All times CET.)

• 9 a.m. Slovenian Prime Minister Janez Jansa and Commission President Ursula von der Leyen take part in presentation of the Slovenian presidency
• 10.05 a.m. European Commission Vice President Maros Sefcovic speaks at EU-U.K. Forum’s annual conference 
• 11.45 a.m. Jansa, von der Leyen and European Parliament President David Sassoli hold joint press conference
• European Commission unveils sustainable finance strategy package
• Competition commissioner Margrethe Vestager meets virtually with U.S. Treasury Secretary Janet Yellen
• European Commissioner for Neighborhood and Enlargement Olivér Várhelyi starts three-day visit to Georgia, Azerbaijan and Armenia