Talks on the EU’s coronavirus recovery plan are going down to the wire. Council President Charles Michel is expected to present a compromise next week to try to bridge differences between richer member states and those counting on support from the 750 billion euros that Brussels plans to borrow. Under Michel’s proposal, wealthier states led by the Netherlands will be offered rebates on their contributions to the EU budget. But a deal at this month’s in-person summit still looks uncertain, even as Angela Merkel, who this week took over the bloc’s rotating presidency, continues to push for an agreement this summer. The German Chancellor pledged yesterday to work "very hard" to achieve one and urged EU partners to quickly come together to authorize a “massive” response to the economic fallout from the pandemic. — Alexander Weber

What’s Happening
Getting Closer | U.K. and EU negotiators have started to sketch out the broad outline of an agreement on their future relationship as both sides look to the other to make compromises to seal the deal. Talks in Brussels ended yesterday, a day earlier than planned, with the teams closing in on a general “landing zone."

Cliff Edge | European authorities are fast learning that to prevent a massive spike in unemployment and bankruptcies they need to extend emergency aid programs longer than initially anticipated. That means putting aside concerns over a surge in public debt to focus on protecting jobs and businesses.

Croatia Poll | On top of ravaging one of eastern Europe’s top tourist destinations, Covid-19 is denting its government’s re-election chances this weekend. Foreign visitors haven’t returned to Croatia en masse amid rising infections, and there’s been uproar at the prime minister’s decision not to self-isolate after a virus scare.

Virus Update | French Health Minister Olivier Veran said the virus is under control in the country after some 200 clusters were contained. Germany’s infection rate remained below a key threshold, while U.S. officials continue to grapple with a surge in infections, with Texas and Arizona reporting record new cases. Here’s the latest.

Week Ahead | The European Commission publishes updated economic forecasts on Tuesday and Finance ministers get a chance to dissect them and talk about their coronavirus response at virtual meetings on Thursday and Friday. They’ll also try to agree on a successor for outgoing Eurogroup President Mario Centeno.

In Case You Missed It
Threat Defused | German lawmakers ended a legal standoff over the ECB’s bond buying, backing a monetary program seen as a key prop for the euro area’s battered economy. A broad, cross-party alliance voted to accept the explanation the central bank provided for its public-sector purchase program, or PSPP, sending a signal that Germany’s political establishment intends to keep Europe together.

Drug Supply | The EU is in talks with Gilead about reserving a "sufficient number of doses" of Covid-19 treatment remdesivir, after the U.S snapped up almost all the drugmaker’s supplies. The agreement this week fueled worries about countries locking up access to drugs, vaccines and other pandemic essentials.

Data Warning | Microsoft’s licensing agreements with EU authorities gave the U.S. tech giant free rein to oversee data-processing activities for more than 45,000 officials, the bloc’s own watchdog warned. It’s an unusual step for a body that tends to keep a far-lower profile than authorities who police tough data-privacy rules at national level.

Travel Ban | Hungary won’t open its borders to a list of non-EU countries that the bloc painstakingly agreed on this week, according to Prime Minister Viktor Orban. Instead, it will only allow unfettered travel to and from neighboring Serbia, said Orban, who cast the announcement as a defiance of Brussels.

Greek Sovereignty | Greece signaled it’s willing to hold talks with Turkey on a range of bilateral issues, while pledging to do whatever it takes to protect its sovereignty. Relations between the two nations have been tense in recent months after President Recep Tayyip Erdogan signed a maritime deal with Libya, prompting Turkey to claim rights in some zones that Athens says are Greek under international law.

Chart of the Day

Businesses in Spain are the most concerned about the economic fallout of the coronavirus among Europeans, while companies in the Netherlands are least worried, according to a new survey from Swedish debt collector Intrum. Among 9,980 companies polled, two-thirds rank the risk of pan-European recession in the top three challenges stopping customers paying on time over the next 12 months.

Today’s Agenda
All times CET.

• 9:30 a.m. Chancellor Merkel addresses German upper house on EU presidency
• 2 p.m. Competition Commissioner Vestager delivers speech at the Forum Europe conference on the Digital Services Act
• 4:05 p.m. Vestager speaks at Rencontres Économiques d'Aix-en-Provence
• Eurostat publishes quarterly sectoral accounts for businesses, households