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

The EU may have just altered the course of its history, proposing what one government official described as a "game changer" — a 750 billion-euro rescue package of grants and loans for the region's hardest-hit economies. Markets reacted strongly, pricing out the risk of an imminent crisis and pushing the euro to the highest level in almost two months. 

There's still a long way to go, with Austria, the Netherlands, Sweden and Denmark — the region's so-called frugal four — set to push for changes. But even they signaled some compromise may be possible. Ursula von der Leyen's plan marks rarely-seen ambition from the bloc at a time when it needs it most. And there's a strong green component woven into the package: the stimulus aims to accelerate the transition to clean transport, increase energy savings and boost renewables.

What’s Happening
Iron Curtain | The coronavirus and the lockdowns imposed on Europe's populations are sparking memories of communist rule: bans on large gatherings, curtailed movement and empty shelves. Here's our correspondent Andrea Dudik's personal deep dive into the new walls being opened up between East and West.

Under Control | The easing of lockdowns across the continent doesn't seem to be causing a coronavirus resurgence. Here is the situation in continental Europe's major economies, as restrictions are lifted.

Green Recovery | The EU wants to earmark more funds to help regions most affected by the transition to a climate-neutral economy. The recovery package earmarks an extra 30 billion euros for the Just Transition Fund, with more details likely to be revealed today.

Dirty Power | In not so green news, a controversial German coal-fired power plant is set to enter service this week, angering environmentalists and seemingly at odds with Chancellor Angela Merkel's plan to quit the fossil fuel by 2038. Protesters say they are going to target the Datteln-4 plant, demanding its closure.

Spend Now | If governments needed an even greater incentive to start spending money, it turns out around 80% of company executives are making investment decisions based on the composition and size of fiscal stimulus, according to a report from EY.

In Case You Missed It
Largarde's Worst-Case | ECB President Christine Lagarde said the euro area is facing a recession as bad as her institution's more pessimistic forecasts. And she's not the only one fearing the worst: The EU warned that under its bleakest scenario, the bloc's economy could shrink by 16%.

Still Sinking | Lufthansa's supervisory board held off on accepting a bailout from Germany, raising the stakes in a tug-of-war with the EU over antitrust demands attached to the 9 billion-euro package. It said that the condition that it give up key takeoff and landing slots would weaken its hubs in Frankfurt and Munich.

China Warning | The EU's top diplomat, Josep Borrell, said China's efforts to tighten its grip on Hong Kong threaten the global international order, in a letter to the bloc's 27 foreign ministers seen by Bloomberg. They'll have a video call Friday to discuss relations with the superpower, but navigating a course between Beijing and Washington without alienating either won't be easy.

Moscow Easing | One day after Russian President Vladimir Putin declared that Russia had passed the peak of the pandemic, the city of Moscow announced plans to ease its lockdown. The city's inhabitants will be able to take walks from June 1, with some retailers, laundries and repair shops allowed to open.

Hot Bodies | They're a little freaky, but check out these thermographic images showing Londoners venturing out from the lockdown.

Today’s Agenda
All times CET.

• 9:30 a.m. An adviser to the EU's top court gives a non-binding opinion in cases brought by Hungary and by Poland against changes to an EU law on the posting of workers
• 10 a.m. Commission press conference by Executive Vice-President Dombrovskis and Commissioner Gentiloni, on Recovery and Resilience; followed by press conference by Commissioners Timmermans, Schmit and  Ferreira on a green and just recovery; followed by Vice-President Schinas and Commissioner Kyriakides, on the health program
• 11 a.m. The EU's lower court rules on CK Hutchison's appeal of the European Commission’s veto of its planned acquisition of Telefonica’s U.K. mobile phone unit
• 2 p.m. Commission President von der Leyen addresses the "High-level event on financing for development in the era of Covid-19 and beyond"
• 2 p.m. EU Parliament Trade Committee holds Exchange of views with Trade Commissioner Hogan on the EU response to the impact of COVID-19
• 4 p.m. Von der Leyen and Hugh Evans, Global Citizen co-founder and CEO, give press statement
• Video conference with EU-U.S Justice and Home Affairs Ministers