European Affairs ministers will seek agreement today on a communique for EU leaders to adopt later this week largely devoted to the virus. The latest draft includes an immunity pass to ease travel for those vaccinated, making Greece and other tourism-dependent economies happy. Leaders will also for the first time signal willingness to begin preparations to reopen their economies. The bad news is that the row with the U.K over vaccine supplies continues, though diplomatic efforts for an amicable settlement are under way. And tomorrow ahead of the leaders call, the European Commission may present a proposal for tighter curbs. - Viktoria Dendrinou and Nikos Chrysoloras

What’s Happening

Easter Lockdown | Chancellor Angela Merkel agreed with regional leaders early this morning to put Germany under a hard lockdown over the Easter holidays and extend most of the country's closures until April 18 after Covid-19 contagion rates nearly doubled. The move is a blow to pandemic-weary Germans, who opinion polls suggest are increasingly unhappy with the government’s handling of the crisis. Austria also canceled plans to further re-open the economy around Easter after surging cases threatened to overwhelm hospitals.

German Spending | Germany plans to lift borrowing to 240.2 billion euros this year, taking on just over 60 billion euros more debt than initially planned to help mitigate the impact of the coronavirus crisis. The plans for heavy government spending as the country grapples with a fresh wave of the pandemic will be presented by Finance Minister Olaf Scholz tomorrow.

Eyes Eastward | U.S. Secretary of State Antony Blinken is in Brussels today to meet with his fellow NATO foreign ministers as the administration looks to repair its battered transatlantic alliances post-Donald Trump. Russia is set to take center stage following President Joe Biden's agreement that Vladimir Putin is a "killer," while a raft of sanctions on Russia and China over human rights is also creating a tense geopolitical backdrop.

Russian Shot | Putin said he plans to get vaccinated today against Covid-19 – though he didn’t say which of the three home-grown vaccines now available he’ll take. Putin has touted Russia as a leader in the race to combat the pandemic, hailing Sputnik V as the world’s first Covid-19 vaccine cleared for use last August even though the country has been slow to vaccinate.

In Case You Missed It

Astra Boost | AstraZeneca’s vaccine was 79% effective in preventing Covid-19 in a U.S. clinical trial, while all those immunized were protected from severe disease and death. The findings should bolster confidence in the vaccine after confusion over its efficacy and the best dosing regimen slowed take-up. It’s also a welcome boost for a shot at the center of a supply showdown with the EU just days after concerns about blood clots prompted a dozen member states to temporarily suspend immunizations.

ECB Action | The ECB finally delivered on its promise to boost the pace of emergency bond-buying to combat the economic threat from higher yields. Net purchases last week climbed by 21.1 billion euros, the most since the start of December. The faster pace comes after weeks in which some policy makers expressed worry, yet official data shows no sizable or sustained pickup in buying.

China Sanctions | The U.S. and EU imposed sanctions against China over alleged human rights abuses, drawing an immediate reaction from Beijing, which set out its own punitive measures. The moves by the two allies to sanction the officials is likely to be mostly symbolic. While the U.S. has imposed sanctions on a number of Communist Party officials the measures haven’t impacted China’s economy or changed its behavior

Cash Paradox | Cash is alive and thriving in the euro zone despite the rise of debit cards and contactless payment, and the pandemic has even accelerated that trend, according to the ECB. Once dubbed the “paradox of banknotes,” the phenomenon is mainly down to two reasons: demand for the currency outside the bloc, and Europeans hoarding cash to store their wealth. 

Slovak Turmoil | Slovakia’s economy minister resigned, urging the prime minister to step down to allow a wider cabinet reshuffle and quell the turmoil sparked by a deal to purchase vaccines from Russia. The four-way ruling alliance has been rocked by infighting and personal animosities since it took power last year. Still, the government has overseen a wide anti-corruption sweep of the police, judiciary and business circles.

Chart of the Day

The rise of Bitcoin and other cryptocurrencies has prompted the greatest push yet among central banks to develop their own digital currencies. The topic will be a key focus at a Bank for International Settlements event this week, where central bank officials are set to discuss the topic.

Today’s Agenda (All times CET.)

• 8:40 a.m. NATO Secretary General and the US Secretary of State remarks
• 9:30 a.m. European Commission’s Director-General for Health and Food Safety Sandra Gallina discusses the EU’s advance purchase agreement on COVID-19 vaccines
• 10 a.m. European Medicines Agency Executive Director Emer Cooke will update MEPs on COVID-19 vaccines
• 10 a.m. EU General Affairs ministers video conference to finalize leaders' summit preparations
• 10 a.m. NATO Secretary General and US Secretary of State speak about the transatlantic bond
• 10:15 a.m. Elke König, head of the Single Resolution Board, speaks at the European Parliament
• 12 p.m. NATO Ministers of Foreign Affairs meeting
• 3 p.m. North Macedonia's Justice Minister Bojan Marichikj speaks at EPC event
• 5 p.m. NATO Secretary General press conference
• EU economy chief Paolo Gentiloni delivers opening remarks at online climate conference organized by France 
• EU climate chief Frans Timmermans delivers keynote speech at the online Clean Energy Summit
• ECB's Villeroy presents Bank of France annual report; ECB's Holzmann presents Austrian central bank annual report