  We report on first-principles calculations of spin-dependent properties in
graphene induced by its interaction with a nearby magnetic insulator (Europium
oxide, EuO). The magnetic proximity effect results in spin polarization of
graphene $\pi$ orbitals by up to 24 %, together with large exchange splitting
bandgap of about 36 meV. The position of the Dirac cone is further shown to
depend strongly on the graphene-EuO interlayer. These findings point towards
the possible engineering of spin gating by proximity effect at relatively high
temperature, which stands as a hallmark for future all-spin information
processing technologies.
