Hungarian Prime Minister Viktor Orban's government is in the dock again, the defendant in a lawsuit launched by the Commission for flouting the bloc's rule-of-law. If, as expected, the EU's top court rules that restrictions in Hungary on foreign-funded non-governmental organizations are illegal, it would amount to back-to-back legal setbacks for the populist leader after the Luxembourg-based court gutted his anti-immigration policy last month. Yet regardless of who wins in court, Orban appears unassailable politically — his dominance underscored by his decision to voluntarily hand back the indefinite rule-by-decree powers he obtained during the pandemic and which he's used in part to clobber his domestic opposition. With Orban marking a decade in power last month, the EU has never been further from stopping Hungary's authoritarian drift.

What’s Happening
Brexit Optimism | Commission President Ursula von der Leyen signaled that the EU may be willing to compromise on its demands over fishing and the role of its courts in any post-Brexit trade deal — but warned the bloc isn’t prepared to sacrifice its principles for the sake of an accord. An embattled Boris Johnson and Emmanuel Macron will meet Thursday, the U.K. prime minister’s first bilateral with a European leader since calling for fresh momentum to secure a post-Brexit trade deal.

China Curbs | In response to Commission proposals that could prevent takeovers of European firms by state-backed Chinese rivals, China's Mission to the EU told us in an email that the bloc must stick with WTO rules, "keep clear of protectionist moves," and "refrain from creating new trade barriers under the pretext of subsidies." China also hit back at accusations of bankrolling its national champions, saying it's mostly the U.S. and Europe which subsidize their companies.

Shunning London | For London's infamous housing market, the cost of Brexit is becoming clear, with European buyers staying away. Still, interest has increased from Hong Kong, where China's clampdown is encouraging more investors to look abroad, according the capital's biggest homebuilder.

Cheap Loans | Traders have their eyes on another trillion-euro milestone in Europe’s fight to bolster the region's economies, in the form of super-cheap loans provided by the European Central Bank. This is what to expect in the market today.

Virus Update | After Beijing cancelled more than 1,200 flights following a flaring of cases, fears of a second wave of coronavirus are growing. In Germany, a meatpacking plant was shut after hundreds of workers became infected by the coronavirus, adding to a string of outbreaks at slaughterhouses across Europe. Here's the latest.

In Case You Missed It
Digital Tax | Treasury Secretary Steven Mnuchin withdrew the U.S. from talks over a digital tax after failing to reach an agreement with countries looking to slap levies on the revenue of American tech companies. The decision suspends the Trump administration's previous approach to finding a global deal and could increase the likelihood that Amazon, Google and Facebook will be hit with a wave of foreign taxes.

Fire and Fury | European diplomats are furious that U.S. President Donald Trump shut them out of talks between Serbia and Kosovo over the latter's recognition as a sovereign state, fearing that EU interests will be sidelined and the two countries' will suffer. An outspoken American who's had run-ins with Germany is at the center of it.

Job Losses | One in five furloughed workers in Europe — equivalent to nine million people — might lose their jobs despite generous support measures designed to prevent that, according to research by Allianz economists. Is it time to fear zombified jobs?

Sweden's Slip-up | One of the ideas behind Sweden's controversial plan to avoid a lockdown was to gradually boost the immunity of the population to the coronavirus. That doesn't seem to be working as quickly as expected, according to the country's state epidemiologist, and the country's population is losing faith.

Pilots Grounded | Itching for a getaway after months of coronavirus lockdown? Well, European airlines are offering some tasty discounts. While they wait for you to decide on your next destination, pilots are turning to a mishmash of odd jobs and second-choice careers. Here's a glimpse into the lives of flyers whose wings have been clipped.

A drop of nearly 40% in new orders since February has left surprisingly few marks on the workload of German manufacturers. The overall order stock shrank by a mere 1.1% in April, and the decline was even less for investment and consumer goods. The data suggest factories haven't seen significant cancellations due to the coronavirus.

Today’s Agenda
All times CET.

• 9:30 a.m. EU top court gives binding decision in a challenge pitting the European Commission against Hungarian Prime Minister Orban and the legality of his crackdown on foreign-funded groups
• 9:30 a.m. EU foreign policy chief Borrell briefs EU Parliament on national security law for Hong Kong and the need for the EU to defend Hong Kong's high degree of autonomy
• 10 a.m. CEPS think tank webinar about relationship between China and the EU with Ambassador Zhang Ming, Head of the Chinese Mission to the EU
• 6 p.m. Press conference by Commission President von der Leyen Council President Michel following the Eastern Partnership leaders' video conference
• EU Commission Vice President Jourova speaks at the Online dialogue on the role of the EU in coronavirus and post-coronavirus era organised by the Institute for Politics and Society
• EU lower court hears arguments in the challenge by Volkswagen's Scania unit against the European Commission's 2017 decision to fine it 880.5 million euro fine for fixing truck prices