Commission President Ursula von der Leyen takes part in a virtual summit on the western Balkans today after a scolding from the U.S. about leaving an open flank for Russia and China. The quest for EU membership has stalled in six countries for a variety of reasons. For North Macedonia, it was objections from Bulgaria about the origins of its name and language; others such as Montenegro and Bosnia and Herzegovina have so far failed to implement the necessary economic and judicial reforms. As a result, European influence in the territory of 18 million people is at a low point, leaving the nations vulnerable to “predatory overtures” from more autocratic states, Assistant U.S. Secretary of State for Europe Philip Reeker said on Friday. Von der Leyen, already mired in a prolonged spat with Hungary and Poland over their alternative versions of democracy, will have to tread a fine line between sticking to the small print of accession criteria and reviving membership talks if the EU is to regain credibility.

What’s Happening
Call With Xi | Chinese President Xi Jinping, German Chancellor Angela Merkel and French President Emmanuel Macron are due to hold a video call this week. While the agenda isn’t known yet, Macron is said to be keen to give a new push to the interests of Airbus and to press Xi on easing travel restrictions for EU citizens, especially for businesspeople. 

Permanent Debt | France intends to push for a permanent mechanism on joint-debt issuance in the EU to drive investment in innovation and projects that nations can’t finance alone. Germany has been quick to pour cold water on the proposal, highlighting Bundestag election in September and France’s presidential vote next year.

Taxing Talks | Margrethe Vestager, the EU’s digital chief, will meet U.S. Treasury Secretary Janet Yellen on Tuesday to discuss the bloc’s planned digital levy and global tax negotiations. The EU had originally pushed digital taxation that would hit American firms the hardest. That plan was in the absence of a global deal, which now looks more likely — even if three small EU countries are standing in the way.

Climate Clash | The EU is set to propose its sustainable finance strategy tomorrow, which will call for tightening climate rules on the sector. Norway’s sovereign wealth fund, the world’s biggest, cautioned against changing its investment mandate, arguing that the inclusion of climate targets could put returns at risk. 

Transport Divide | Cities across Europe are starting to tackle the gender divide in transport. Rather than favoring car journeys and the traditional role of the male commuter, networks are becoming more diverse and inclusive. Carolynn Look and Elisabeth Behrmann report. 

In Case You Missed It
Bettel Hospitalized | Luxembourg Prime Minister Xavier Bettel was admitted to hospital after testing positive for Covid-19 a week ago. Bettel, who attended a June 24-25 summit in Brussels before contracting the virus, will stay in hospital for 24 hours as a precaution and undergo further tests, the government said.

Back on Top | London moved back ahead of Amsterdam as Europe’s largest share trading center in June — just as British Chancellor Rishi Sunak tries to boost the sector. Despite reclaiming the top spot for the first time this year, it’s too soon to call a turnaround as the city’s lead is a fraction of what it was before the end of the Brexit transition period.

War of Words | Poland’s most powerful politician accused the EU of plotting a cultural revolution to destroy traditional families and the continent’s Christian heritage. It marked the latest escalation in tensions between the bloc and the member state over LGBTQ rights. And remember former European Council President Donald Tusk? Well, he’s returned to frontline politics in the country.

Transgender Rights | In Spain, rights for the transgender community are improving, with the government passing a draft bill last week that will allow people to self-determine their gender. We take you to Madrid, one of Europe’s most LGBTQ-friendly cities, where there is still controversy over the new legislation.

Kick Off | Differences over soccer soured Angela Merkel’s final visit to the U.K., as the German chancellor warned Prime Minister Boris Johnson that his plans to boost crowd sizes for European Championship matches in London risked spreading the delta variant of the coronavirus. The issue also fits into a broader dispute with the U.K. over international travel during the pandemic.

Chart of the Day

Demand for meat has waned in previous financial downturns, only to bounce back. What’s different now is the plant-based boom. The twin forces of inflation and food trends are coming together to signal a seismic shift away from animal-based protein consumption in the world. “When meat becomes too expensive to eat, then absolutely consumers will move away from it if they can’t afford it,” said Tom Rees, industry manager at market researcher Euromonitor International in London.

Today’s Agenda
All times CET.

• 7 p.m. ECB Vice President Luis de Guindos speaks at IESE banking conference

• Commission President Ursula von der Leyen participates in the Berlin Process (Western Balkans Summit) via video conference. German Chancellor Angela Merkel holds a briefing after the talks at about 5:30 p.m. 

• The Commission launches the EU Code of Conduct on Responsible Food Business and Marketing Practices, with a speech by Health and Food Commissioner Stella Kyriakides

• Eurostat releases data on early estimates of income inequalities during the Covid-19 pandemic

• CEPS think tank holds a discussion on regulating crypto with the legal officer for DG FISMA