EU foreign ministers will take stock of transatlantic ties, largely applauding Joe Biden’s first moves — from reengagement with the Iran nuclear deal to the U.S. administration’s climate commitments. But a policy paper that was circulated by the Commission in preparation for today’s meeting, and seen by us, notes there are still some thorny issues, including “the extraterritorial effects of U.S. sanctions impacting EU companies and interests; the tariffs placed on the EU’s steel and aluminum on national security grounds; divergences in the technology area; the strong U.S. domestic focus on a Buy America policy.” What better proof that the sky is still partly cloudy over the Atlantic than Biden’s support for waiving intellectual property rights for coronavirus vaccines, which caught the EU off guard. The bloc regards this as an attempt to divert attention from the U.S.’s refusal to share the vaccines it produces with the rest of the world. And its leaders sent Biden a message in no uncertain terms about what they expect him to do. 

What’s Happening
Reluctant Recovery | EU lawmakers will discuss progress in deploying recovery funds with economy chiefs Valdis Dombrovskis and Paolo Gentiloni. One issue we have flagged is that national spending plans submitted so far indicate that many member states won’t tap the package’s loans. As a result, Bank of America strategists now estimate the jointly financed stimulus will be just 550 billion euros, much lower than advertised.

Brexit Opportunities | The U.K.’s departure from the EU has gifted the City of London’s European rivals with a once-in-a-generation opportunity to win back some of the business that gravitated towards the Square Mile over the past few decades. We spoke to the head of Luxembourg’s financial lobby group, Nicolas Mackel, about the Grand Duchy’s Brexit strategy and his take on how continental financial centers can best take advantage of the situation.

Fish Fight | Though few in the outside world can locate Jersey on a map, the British crown dependency, which is neither in the EU nor part of the U.K., has moved center stage in the post-Brexit theater of the absurd. This is a fight between Britain and France over a lot more than the mackerel, pollock and crab off Jersey’s shores, Joe Mayes and Ania Nussbaum report.

Greek Paradise | Further south, a coastal development three times the size of Monaco relies on people being ready to invest far away from home. But will they? Eleni Chrepa reports how the revival of Athens hinges on a pre-pandemic vision of paradise.

Taking Trains | One of the hardest climate puzzles to solve is how to cut greenhouse gases from airplanes. International travel is essential, but zero-emission flights are decades away. In Europe, where transport accounts for a quarter of emissions, policymakers may have a solution: get people to take the train instead.

In Case You Missed It 
Pollution Costs | The EU’s climate chief said the record prices in the world’s biggest carbon market must go even higher to meet the bloc’s stricter pollution goals. Frans Timmermans warned the EU should be very careful not to step into the market to moderate the cost of emitting carbon dioxide in the EU’s Emissions Trading System.

More Shots | The Commission signed a new vaccine contract with Pfizer and BioNTech for as many as 1.8 billion doses for 2022-2023, as the bloc seeks to secure an unimpeded supply of booster shots and inoculations for children. The new agreement includes clauses to allow the donation and reselling of doses, and also foresees monthly delivery schedules and sanctions for potential delays.

India Reboot | In an effort to strengthen economic cooperation in the face of common challenges, the EU and India agreed to revive long-stalled talks on a free trade deal at a virtual summit on Saturday. The bloc’s push to deepen its ties with the world’s largest democracy as well as other Asian nations comes as tensions with China grow. 

German Elections | Chancellor Angela Merkel’s conservatives slipped to an all-time low in a poll published Sunday, while the Green party stayed in the lead. Meantime, Finance Minister Olaf Scholz pledged to increase taxes on the wealthy, spend on cleaner technology and expand social programs if he were to win for the Social Democrats in the fall. Here’s the latest from the election campaign front. 

U.K.’s Future | Scottish independence is back on the agenda. The victory by First Minister Nicola Sturgeon’s Scottish National Party on May 6 has given her what she claims is the required mandate for a new vote on secession and threatens to inflame an already tense relationship with U.K. Prime Minister Boris Johnson’s government in London.

Chart of the Day

Lured by lockdown-fueled gains and surging valuations, technology and internet firms have racked up $9.2 billion in proceeds from initial public offerings on European exchanges this year through May 6 — the most for the period since 2000, data compiled by Bloomberg show. And with more deals under way from the likes of semiconductor company Alphawave and enterprise software developer SUSE, as much as $3 billion could be added to the tally in the coming weeks.

Today’s Agenda
All times CET.

9:30 a.m. The EU’s top court will hear arguments by Fiat Chrysler Automobiles — now known as Stellantis — in a fight against EU tax paybacks
9:30 a.m. EU foreign ministers to discuss Western Balkans, transatlantic relations and Belarus; U.S Special Presidential Envoy for Climate John Kerry will connect via video conference for a discussion on climate
11 a.m. European Parliament holds dialogue on the Recovery and Resilience Facility with Commission Executive Vice-President Dombrovskis and economy chief Gentiloni
5:45 p.m. Vera Jourova, Commission vice president in charge of the rule of law, speaks at EU Parliament’s legal affairs committee
Commission President Ursula von der Leyen meets North Macedonia’s Prime Minister Zoran Zaev in Brussels
Gentiloni and EU health chief Stella Kyriakides speak at the Delphi Economic Forum IV