Just over a year after EU leaders held their first emergency summit to deal with the pandemic, they’ll once again convene a virtual meeting today, as rising infections across the bloc render an in-person gathering impossible. While the virus continues to dominate its priorities, the challenges the EU faces are now different. Chief among them: how to step up the pace of vaccinations, ease the strain on health systems and allow economies to reopen. The video conference comes just after the European Commission unveiled plans to extend its powers to block vaccine exports, amid escalating tensions with allies and manufacturers, highlighting the tricky spot the bloc finds itself in. On the one hand, leaders need to show citizens they’re doing the utmost to protect them; on the other, seeing through any major export bans could draw accusations of protectionism and, crucially, endanger the critical supply chains the lifesaving shots depend on. 

— Viktoria Dendrinou

What’s Happening
Biden’s Message | U.S. President Joe Biden will dial in to the EU leaders’ call and is expected to send a warm message about the shared challenges of Covid-19, climate change, China, Russia, Iran, trade and tech. The exchange will be brief but comes three days after the U.S and the EU coordinated in sanctioning Chinese officials over human rights violations, so it’s a first sign of the transatlantic rapprochement. 

Turkish Delight | EU leaders will likely agree to offer Turkey more financial support for the refugees it’s hosting and vague promises of a closer economic partnership, as long as Ankara remains engaged with Greece over maritime claims in the Eastern Mediterranean. Some member states, notably Cyprus, find the communique’s tone overly positive so the debate could get bitter, but there's no prospect of immediate sanctions.

Drug Rulings | The EU’s top court will have the final say today in challenges to the Commission’s first “pay-for-delay” investigation. Nordic pharmaceuticals company Lundbeck was fined 93.8 million euros and a group of generic drug producers got a 52.2 million-euro penalty in 2013 for agreements the Commission said unlawfully stalled sales of cheaper versions of one of Lundbeck’s drugs.

Pass Uncertainty | Governments from Beijing to Brussels are turning to vaccine certificates as a way to safely reopen international travel or provide cover to businesses that require close contact or large gatherings. But given the uncertainty about their relative efficacy or longevity, the use of vaccination status as a societal get-out-of-jail card is a leap of faith, medical professionals say.

In Case You Missed It
Merkel’s Desperation | Chancellor Angela Merkel’s botched plan for a five-day hard lockdown over the Easter weekend is changing the shape of the German national election. Her conservatives are plunging in the polls as the public loses faith in her leadership, and there’s suddenly a real chance that the next chancellor might not come from her CDU-led bloc.

Slovak Fallout | The collapse of Slovakia’s government intensified over the prime minister’s decision to buy Covid-19 vaccines from Russia, raising pressure on him to resign. The crisis highlights the political stakes of the EU’s sluggish vaccination rollout, which has triggered voter anger after significantly falling behind similar efforts in the U.S. and the U.K.

Hungarian Lessons | Hungary is the deadliest place for the coronavirus right now — despite the government rolling out vaccines quicker than almost any other EU state. As frustrated citizens across the continent push back against lockdown extensions in the run-up to Easter, Hungary’s predicament may offer a lesson: A rapid vaccination program can’t contain the pandemic without harsh restrictions on daily life to accompany it.

Inequality Question | The ECB said further efforts must be made to understand what the unequal distribution of income and wealth across the euro area means for the impact of its monetary policy. The push for deeper analysis echoes recent efforts by the Federal Reserve, which committed to a more inclusive approach when it updated its policy strategy last August.

Power Issues | France’s electricity supply may be unable to cope with extreme cold or unplanned outages over the next three winters, the country’s grid operator said. As the country shuts its last coal plants in the transition from fossil fuels, margins will remain weak throughout 2024 as the pandemic continues to disrupt maintenance schedules and safety checks at atomic plants.

Chart of the Day

Most people aged 50 or over in the EU could be protected by a first Covid-19 vaccine dose by mid-May if governments are ready to deviate from the protocol of administering second shots within three to four weeks of the first ones, according to research by Bloomberg Economics. That’s a month earlier than if they stick to the two-dose time frame, but it still depends on health systems rising to the challenge of nearly tripling the current vaccination rate. 

Today’s Agenda
All times CET.

• 9 a.m. Chancellor Merkel statement to German lower house of parliament on EU summit
• 9:30 a.m. EU top court rules on challenges by drugs companies to topple EU antitrust fines for so-called pay-for-delay deals
• 9:30 a.m. The EU’s top court rules in challenges by Deutsche Telekom and its unit Slovak Telekom to topple EU antitrust fines 
• 9:30 a.m. The EU’s top court rules in a 2019 challenge by the Commission against Hungary over excise duties on cigarettes
• 1 p.m. EU leaders hold virtual meeting to discuss the pandemic, industrial policy, Turkey and Russia
• 2 p.m. Elke Koenig, chair of the Single Resolution Board, speaks at a Bruegel event
• EU economy chief Paolo Gentiloni delivers an opening speech at a webinar on the economics of climate change