The European Commission’s proposal to regulate artificial intelligence hasn’t been formally published, but already no one’s happy with it. Digital rights group EDRI largely welcomed the plans outlined in a leaked draft to ban certain high-risk applications of AI, but warned against loopholes that would allow for controversial technology like biometric mass surveillance. Meanwhile, some industry representatives say the requirements to have AI systems undergo checks before deployment could cause major delays. The new rules, set to be unveiled today, are an attempt by the EU to replicate its global privacy regulation footprint — this time by governing AI. Like with the GDPR though, the EU appears destined for months of wrangling over the rules before they become law. - Natalia Drozdiak and Nikos Chrysoloras

What’s Happening

Climate Rules | The European Commission will also unveil today the long-awaited classification system for sustainable investment, a tool to help direct billions of euros to clean projects. The taxonomy, a guide to asset managers on what’s green and what’s not, has divided EU governments and environmentalists over issues ranging from the transitional role of fossil fuels to forestry.

Vaccine Supplies | Europe’s long-awaited Covid-19 shot surge is finally here, raising hopes the continent can bring the pandemic under control and reopen economies faster than had been expected. Following the EU regulator’s confirmation yesterday that the benefits of the Johnson & Johnson vaccine outweigh any potential risks, we take a closer look at Europe’s vaccination schedule here.

Green Germany | A new poll published just hours after Armin Laschet secured the nomination to lead Angela Merkel’s conservative bloc into September’s election showed the Greens surging into a seven-point lead, with the euro slipping to the day’s low on the news. Here’s a look at what Germany’s next leader means for Europe and the world order.

Taxing Amazon | A U.S.-driven effort to reach a global accord on taxing big tech companies’ overseas profits is getting bogged down over ensnaring one firm in particular: Amazon. The U.S. proposal called for including only “the largest and most profitable” multinational corporations, and Amazon’s unusual status as a low-margin tech giant is emerging as a sticking point in negotiations.

In Case You Missed It

ECB Uncertainty | Investors trying to predict the European Central Bank’s stimulus plans are about to run into deeper uncertainty even as the clouds around the pandemic start to lift. That increases the prospect of volatility in borrowing costs that could undermine the recovery, Jana Randow and John Ainger report.

Football Renegades | Europe’s rebel football league crumbled just 48 hours after a dozen of the continent’s elite teams triggered an outcry from the sport’s authorities, politicians and fans with their controversial move. While ostensibly over plans to take the cream from Europe’s most prestigious competition — the Champions League — the fight is also about control of a sport whose finances have been hammered by the pandemic, and the biggest clubs want more money.

EIB Woes | An EU lawmaker called for an investigation and two other members voiced concerns after a Bloomberg News probe into alleged harassment at the European Investment Bank. “I am shaken by this,” said Sven Giegold, a German lawmaker who sits on the committee on economic and monetary affairs.

Pollution Taxes | Europe is proposing higher taxes on the most polluting energy products as it seeks to become carbon neutral by 2050. The EU is planning to revise its energy taxes as part of a broader package of measures aimed at putting the bloc on track to meet a stricter 2030 goal of cutting emissions by at least 55% from 1990 levels.

Chart of the Day

German Chancellor Merkel expressed concern at continued Russian troop deployments around Ukraine that the EU estimates at 100,000, while the government in Kyiv appealed for sanctions to be tightened on its neighbor. Our latest from the escalating standoff.

Today’s Agenda (All times CET.)

• 11 a.m. The EU’s lower court rules in a trademark dispute between Chanel and Huawei technologies over the rights to a logo that Huawei sought to register across the EU
• 2:45 p.m. European People’s Party online conference on the Future of Europe with Germany’s Merkel, EU lawmakers
• The European Commission will propose standards for green investments, setting criteria for various industries to earn a sustainable label under its taxonomy regulation
• EU financial services chief Mairead McGuinness speaks at the Institute of International Finance Global Sustainable Finance Summit 2021