Talks over Europe’s jointly-financed recovery plan are in full swing, and the strings attached to make the package decisively green could be a key aspect of securing the backing of skeptics. For Green Deal advocates, the latest buzzword is hydrogen. An important piece of the climate neutrality puzzle, it could help eliminate carbon-dioxide emissions from big energy users: aviation, shipping and trucks. And it could play the role of a battery for energy generated from intermittent renewable sources. The challenge is the cost and that’s where the European Commission’s strategy for hydrogen, due to be unveiled today, comes in (we have the draft). It will outline ways to help boost production, lower costs and prevent market fragmentation. Time is of the essence if Europe wants to avoid losing out to China, the U.S. and Japan, which already spend more public money on clean technology.

What’s Happening
Merkel’s Bet | Every six months, governments invariably hail whoever's holding the rotating presidency of the EU for delivering massive successes — whether it’s fair or not. This won’t be the case for Germany if talks over the recovery plan fail. Policy makers in Brussels and beyond will tune in to hear from Chancellor Angela Merkel this afternoon on how she intends to broker a compromise.

U.K. Warning | The other big dossier Merkel will have to deal with during the German presidency is Brexit. Boris Johnson warned her over a call yesterday that the U.K. is ready to do without a trade deal if the EU isn’t prepared to compromise.

EU Bystander | The EU will be absent from the race to lead the crisis-stricken World Trade Organization when the window for candidates closes today, leaving contenders from countries including South Korea, Nigeria and Mexico to duke it out. EU trade chief Phil Hogan spent a month entertaining a run to succeed Roberto Azevedo as WTO director-general before abandoning the idea last week on the grounds of a potentially protracted selection process. 

Polish Vote | Polish President Andrzej Duda is tilting further to the right in pursuit of the ultra-conservative voters he needs to win Sunday’s runoff election. The ballot is set to determine the fate of the east European nation’s nativist makeover after Duda and his allies in the ruling Law & Justice party upended Poland’s reputation as a model democracy.

In Case You Missed It
Artificial Intelligence | Germany said the EU may need an agency for regulating artificial intelligence to bolster consumer trust in the technology and help realize its economic potential. The bloc aims to be among the first major jurisdictions to regulate AI systems in fields such as health, policing and transport facing the possibility of legal requirements, including tests by authorities before deployment.

Financial Regulation | Around 31% of fintech firms in Europe aren't subject to any regulation, according to the European Banking Authority. Following the spectacular collapse of Wirecard, national and EU supervisors may have to do something about it. 

Huawei Ban | France’s decision to give only temporary security approval for fifth-generation mobile equipment shows the government intends to gradually sideline Huawei. The U.K. is doing the same, reflecting Europe’s hardening position against the world’s biggest maker of mobile network equipment, which is under threat from a growing U.S.-led boycott. 

Brexit Car | A 67-year-old billionaire who helped finance the campaign for the U.K to leave the EU, now wants to build a car bearing an uncanny resemblance to the iconic Land Rover Defender. The caveat? The car will be made in France.

Chart of the Day

Europe’s economy will suffer more than previously estimated this year and take longer to recover because of a slow easing of coronavirus restrictions, according to the European Commission. It's the starkest warning yet about the impact of the pandemic, with the divergences between richer and poorer countries opening up even further. 

Today’s Agenda
All times CET.

• 11 a.m. The EU’s lower court rules in a challenge by Infineon Technologies stretching back to 2014, when the European Commission fined the company 82.8 million euros for colluding with rivals to fix the price of chips used in mobile phones and bank cards
• 11 a.m. The EU’s second-highest court rules in four separate cases over prudential requirements for credit institutions, in which the European Central Bank is being sued over administrative sanctions it had issued against banks, including Credit Agricole and CA Consumer Finance
• 12 p.m. EU Commission to unveil strategy for energy-systems integration and Hydrogen strategy 
• 2:15 p.m. Speech by German Chancellor Angela Merkel before the European Parliament
• 3:20 p.m. EU Council President Charles Michel and EU Commission president Ursula von der Leyen speak at the European Parliament
• 6 p.m. Merkel to meet EU’s von der Leyen, Michel, Sassoli on recovery package 
• 8:05 p.m. MEPs debate with Health Commissioner Stella Kyriakides an overhaul of the EU’s public health policy to ensure that health systems across the EU are better equipped and coordinated to face future health threats
• Deadline for nominations for the next WTO director general