Bloomberg In their first two weeks in power, Italy’s populist leaders sparked a dispute with France over immigration and threatened to scupper a landmark EU trade pact with Canada. It’s hardly the way to make friends with European partners in key deciding positions when Italy seeks approval for the big-spending budget plan it will submit to Brussels in four months. ...

Bloomberg Chancellor Angela Merkel accepted a two-week deadline to win agreement on tougher migration policy, a concession to her Bavarian coalition partner that eases an immediate standoff without removing the threat of further government tension down the road. Interior Minister Horst Seehofer, who heads Bavaria’s Christian Social Union party, insists the chancellor reach a deal by the end of June ...

Bloomberg Theresa May is surrounded. On one side, the UK prime minister has the European Union, sharpening its knives to defend the club of 27 remaining members against British “cherry picking” during Brexit talks. On the other side is her own Conservative party, split into two feuding tribes, either one of which could topple her from power. It’s the domestic ...