When she became European Commission president in December, Ursula von der Leyen said she wanted geopolitics at the heart of her role. But with the pandemic dominating her first months in office, it’s taken until today to hold talks with the leadership of China. Together with European Council President Charles Michel, von der Leyen will hold video conferences with Chinese Premier Li Keqiang and President Xi Jinping. According to officials, the EU side won’t hold back in airing its opposition to China’s plan to curb Hong Kong’s autonomy and they’ll want to discuss allegations China has spread disinformation about the coronavirus outbreak. If there’s still time, they’ll mention their frustration over Beijing’s curbs on foreign investors.

What’s Happening
Up in the Air | The German government’s 9 billion-euro bailout of Lufthansa is at risk because the airline faces a higher threshold for approval at a virtual shareholder meeting Thursday. The low voting registration at last week’s EGM means Heinz Hermann Thiele, a German billionaire and Lufthansa’s biggest shareholder, can scuttle the deal, which would dilute his holding and influence.

Legal Time Bomb | The European Central Bank’s most determined attempt yet to confront the German legal headache bedeviling its quantitative easing policy may emerge as soon as this week. With the account of the ECB’s June 3-4 meeting published on Thursday, all eyes are on officials’ justifications for continuing the program.

Serbian Victory | Serbia’s president led his party to a landslide victory in general elections, securing a majority in a country that’s at the center of a struggle for influence among global powers. Aleksandar Vucic’s Serbian Progressive Party won 63.4%, giving his party enough seats in parliament to change any law uncontested.

Eastern Weakness | The EU’s eastern wing outshone the west in containing Covid-19. The economic hit, however, is proving harder to dodge. While Slovakia's speedy lockdown resulted in the bloc’s fewest deaths per capita, it is suffering one of the worst contractions in GDP.

Orban’s Grip | Hungary’s largest news website, Index.hu, said its independence is being threatened by planned changes to its structure, adding to concern that Prime Minister Viktor Orban is tightening his grip on critical voices. “Index is under such external pressure that could spell out the end of our editorial staff as we know it,” Szabolcs Dull, the website’s editor-in-chief, said in an statement published late yesterday.

In Case You Missed It
Summit Summary | Friday’s call of EU leaders saw German Chancellor Angela Merkel, with backup from France and the ECB, warn the others they’ll be jeopardizing the bloc’s economic recovery and risking a market rout if they fail to complete negotiations over a massive stimulus package next month.

DAX Disaster | The company once hyped as the future of German finance has become a symbol of national embarrassment. After promising to shake up the world of payments, Wirecard saw its stock collapse and its chief executive officer resign over apparent accounting irregularities and has now admitted that the missing 1.9 billion euros of cash on its balance sheet probably doesn’t exist.

Macron Slips | French President Emmanuel Macron’s popularity has waned compared to that of Prime Minister Edouard Philippe, a poll showed, ahead of a possible government overhaul following municipal elections later this month. Macron’s approval rating dropped to 38%, while Philippe’s gained to 50%.

Green Bonds | Sweden’s once battered credit market is finding relief in an unexpected place. As firms and governments try to recover, they’re selling more debt earmarked for ethical projects than ever before. That issuance has provided a lifeline to a market that suffered one of the worst crashes in its history just a few months ago.

Another Term | Vladimir Putin said he’ll consider running for a fifth presidential term in 2024, arguing that the hunt for any successor risks paralyzing Russia’s government as the next election nears. On July 1, Russians will vote on the most sweeping changes to the nation’s constitution since it was adopted almost 30 years ago.

Chart of the Day

The coronavirus has upended consumer spending patterns, though supermarket sales have received a boost thanks to initial stockpiling and home cooking. Eurostat data show that people in Austria and Denmark ⁠— ⁠⁠countries that locked down relatively early ⁠— pay proportionally more for food than their EU peers. Still, non-EU members Switzerland, Norway and Iceland top the ranking, which uses 2019 data adjusted for purchasing power parity.

Today’s Agenda
All times CET.

• 10 a.m. European Commission President von der Leyen and European Council President Michel hold videoconference calls with Chinese Premier Li and President Xi
• 11 a.m. Press conference by EU Commissioner Gentiloni on progress towards the Sustainable Development Goals in the EU
• 12 p.m. EU Parliament Envi Committee holds exchange of views with Health and Food Safety Commissioner Kyriakides on the EU strategy for Covid-19 vaccines
• EU foreign policy chief Borrell delivers a speech on geopolitics at the Brussels Forum 2020
• European Court of Justice hearing on EU Commission lawsuit against Slovenia for failure to respect the protected status of ECB documents and failure to cooperate