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European divisions over migration will be laid bare in Paris today, where interior ministers gather to offer a temporary solution for the relocation of asylum seekers disembarked in Italian ports. The pledges won’t satisfy Italian Deputy Prime Minister Matteo Salvini, who is demanding an equal distribution of arrivals across EU ports — though he won’t bother to attend the informal gathering. Also missing from the meeting: a serious debate on how an aging Europe needs regulated migration to replenish its ranks and how uncontrolled climate change is making swaths of Africa ever more uninhabitable, meaning that millions may soon seek refuge on European shores. 

What’s Happening

Italian Elections | Salvini has more immediate concerns at home. As tensions run high with his Five Star coalition ally — on everything from EU policy to tax cuts — Salvini contemplates whether to finally pull the plug on the government and try to trigger snap elections. This may be a make or break week. 

Spanish Vote | Politics are no less fluid in Spain, where Pedro Sanchez is searching for support in a fragmented parliament ahead of a confidence vote this week. His Socialist party is inching toward a coalition government after a breakthrough in talks over the weekend with potential partners. 

Selmayr’s Legacy | Back in Brussels, this week marks the end of the reign of Martin Selmayr, the EU Commission’s top civil servant. While both friends and foes agree his departure may leave a hole in the EU machinery, his presence had become toxic, with many seeing the vast powers bestowed upon an unelected official and the methods he used to acquire them as the personification of all that’s rotten in this city.

Tory Contest | Ballots close at the Tory leadership election this afternoon, with Boris Johnson seen as the undisputed favorite to succeed Theresa May as U.K. Prime Minister. His first task will be to put someone in charge of the country’s finances, after Chancellor of the Exchequer Philip Hammond said he will resign by Wednesday, citing his opposition to the possibility of a no-deal Brexit.

In Case You Missed It

Tanker Tensions | May will spend one of her last days in office leading a meeting of the U.K. government’s emergency committee to discuss the security of shipping in the Persian Gulf after Iran seized a British oil tanker in the Strait of Hormuz last week. The U.K. has demanded the immediate release of the Stena Impero and over the weekend summoned Iran’s charge d’affaires in London following the incident.

More Heat | It’s not just political thermometers in Europe flashing red. The continent is bracing for another heatwave this week, which will see temperatures touching 40 degrees Celsius in Paris and Brussels. Last month was the hottest June in Europe ever, affecting crops, fueling wildfires and intensifying a debate over the urgency of action on climate change.

Pollution Permits | At least carbon permits for polluting are getting more expensive, prompting some power generators to switch away from coal to cleaner fuels. The value of the securities that cover greenhouse-gas emissions from industry and utilities has almost doubled in the past year, finishing Friday at their highest weekly close since 2006. 

Tariff Tactics | The EU is legendary for moving slowly — and that may be just the right pace for confronting Donald Trump’s trade wars. European negotiators are trying to run down the clock on the U.S. president, betting he may soon be too wrapped up in his reelection bid to risk new tariffs, Rich Bravo and Birgit Jennen explain.

Moon Shot | With all the heated debates and never-ending summits in Brussels so far this year, last weekend’s celebrations of the 50th anniversary of the first moonwalk may help EU leaders learn valuable lessons by highlighting what it means to be effective in coordinating people to achieve shared goals. Here are five management lessons the Apollo missions taught us.

Chart of the Day

Mario Draghi is entering the final three months of his European Central Bank presidency with a plan that will see his influence linger well after he’s replaced by Christine Lagarde. The ECB chief will lead a policy meeting this week that’s widely expected to set the stage for a September interest-rate cut and a possible resumption of quantitative easing.

Today’s Agenda

All times CET.

  • 1 p.m. Spanish Parliament session on Sanchez’s bid to stay on as prime minister
  • 3 p.m. European Parliament hearing with Single Resolution Board Chair Elke Koenig 
  • 5 p.m. U.K.’s Liberal Democrats, who have enjoyed a surge in the polls as the main voice for EU remainers, announce winner of their own leadership contest
  • 6 p.m. Ballot closes in Tory leadership election

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--With assistance from John Follain, Lorenzo Totaro and Gregory Viscusi.

To contact the author of this story: Nikos Chrysoloras in Brussels at nchrysoloras@bloomberg.net

To contact the editor responsible for this story: Heather Harris at hharris5@bloomberg.net, Chris Reiter

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