On the eve of the French Presidency Jean-Dominique Giuliani, Chairman of the Robert Schuman Foundation analyses in an editorial the issues and the direction of the presidency.

The most recent issue of the review "DFI Aktuell" Foundation Chairman Jean-Dominique Giuliani draws up an analysis entitled "A political vision for Europe: new challenges for the Franco-German partnership."

On 1st July France will succeed Slovenia in the revolving presidency of the Council of the European Union. It will ensure this role for six months until 31st December 2008. France has set four priorities: reviving European Defence, the creation of a European Immigration Pact, issues relating to the environment and energy and the reform of the common agricultural policy. A multilingual internet site (www.ue2008.fr) is dedicated to this presidency.

The 5th Meeting organised on 24th June as part of the discussions on energy between the EU the OPEC countries focussed on high oil prices. The request made by European Ministers of oil exporters to increase oil production to bring prices back down to a reasonable level was not accepted. The OPEC believes that there is enough oil on the market and is even planning to increase prices given geopolitical complications such as the conflict in Iraq, the increase in speculation and the fall of the dollar. Leaders did however come to agreement on a work programme to encompass the organisation of a round table on carbon and its storage as well as the launch of a feasibility study on the creation of a EU-OPEP energy technology centre. The drew up a report to submit to the 6th Ministerial meeting planned in June 2009 in Vienna.

On 25th June the President of the European Central Bank (ECB) Jean-Claude Trichet spoke to MEPs of the Economic and Monetary Affairs Commission. He announced the possibility of a slight increase in the main interest rates on 3rd July in order to control inflationist trends. Indeed the ECB fears that high inflation levels may "may become entrenched in private inflation expectations and lead to second round effects in price and wage setting." Hence he called for moderation on the part of all of those who had a part in setting prices. In his opinion speculation was not the main cause of oil and foodstuffs price rises, but that this was rather due to high demand on the part of emerging markets as well as the restriction of the offer.

On 24th June the European Commission opened negotiations with regard to the creation of a Transport Community with the Western Balkans. This first meeting, held in Brussels with the region's Transport Ministers, will be followed in the autumn by technical meetings with a view to concluding the Transport Community Treaty in 2009. The treaty aims to establish an integrated market for infrastructure and land transport, maritime transport and inland waterways and to align the relevant legislation in the Balkans region with the EU legislation, so as to enable transport users and the general public to benefit sooner from the advantages of accession.

On 23rd June the European Commission launched its on-line register of interest representatives. All interest representatives engaged in influencing the policy formulation and decision-making processes of the European institutions are invited to register. When registering, they will be asked to disclose some information to enhance the transparency of the relations between lobbies and the Commission. Organisations that sign up to the register will have to indicate who they are, what their objectives and missions are and what policy areas they are particularly interested in. Furthermore, they can describe their main activities of interest representation as well as their networking efforts. Registrants will also have to disclose financial information, so that the driving forces behind a lobbying effort become clear. Organisations lobbying on behalf of third parties will have to indicate the names of their clients.

On 25th June the Commission presented its proposal for small companies. Although most jobs in the EU are provided for by Small and Medium Sized Enterprises (SMEs), they very often face enormous bureaucratic hurdles and obstacles. The Commission is proposing to acknowledge the central role played by SMEs in the EU's economy and is planning for a new general exemption regulation per category with regard to State aid to increase subsidies granted to SMEs. In addition a new status will enable the creation of a private European company (SPE) that will be run according to the same principles in all States. Ten principles will guide the implementation of these policies: these are notably granting a second chance to companies that fail and reducing administrative charges by 25% by 2012.

On 26th the Commission sent reasoned opinions to the Czech Republic, Greece and Poland for non-transposition of EU rules prohibiting discrimination in the access to and supply of goods and services. The EU rules ban sex discrimination outside the workplace and prohibit direct and indirect discrimination based on sex, as well as sexual harassment. The deadline to bring into force the laws, regulations and administrative provisions necessary to comply with the Directive expired in 21st December 2007. The Member States have two months to respond. If they fail to reply or if the response is unsatisfactory, the Commission can decide to bring the case to the European Court of Justice (ECJ).

One European household in four has given up its landline and only uses mobile phones to make calls - a phenomenon that is particularly acute in Eastern Europe - and which is used by Brussels to justify its battle to reduce prices. An EU-wide survey of 27,000 households has revealed the emergence of new consumption patterns in telecoms services in Europe. Technological progress and competition have brought more choice to European consumers; 24% of households have given up their fixed telephone in favour of mobile phones while 22% of them are using their computer from home to make phone calls over the Internet. The landline is still the only means to make calls for 21% of households in Bulgaria, 20% of German households and 18% of French homes. But 64% have abandoned this means in Czech homes - the highest level in the EU followed by the Finnish (61%). Overall the new Member States have given up the landline more than the others - 39% in comparison with 20% on average in the 15 countries who were first Members of the EU.

Inflation increased again in June in Belgium to reach its highest level in 24 years - 5.80%, after 5.41% in May announced the Economy Minister on 26th June. It was in July 1984 that inflation was the highest in Belgium reaching 6.33%.

On 26th June French Prime Minister François Fillon met his Spanish counterpart José Luis Rodriguez Zapatero in Saragossa during an Franco-Hispanic meeting. France and Spain signed an agreement on doubling electric connections according to the principle adopted during the 20th Franco-Hispanic Simmit on 10th January last. However discussions faltered over the European immigration policy. The heads of government of both countries were confident about reaching agreement. But as the President of the Spanish Council said during a joint conference "there is still some way to go and many themes to discuss."

The internet site www.euromonde2015.eu, launched on 27th June is dedicated to the "European strategy for globalisation". Laurent Cohen-Tanugi was asked by Christine Lagarde, Economy, Industry and Employment Minister, and Xavier Bertrand, Labour, Social Relations, Family and Solidarity Minister to look into the European strategy launched in Lisbon in March 2000. In this report he analyses the new challenges and opportunities the European Union now faces and puts forward a wide ranging, more ambitious European strategy for globalisation post 2010. This report will be the focus of a publication in English in September 2008 and an internet site www.euroworld2015.eu as from July.

On 26th June British Prime Minister, Gordon Brown revealed his investment project in renewable energies so that dependency on fossil energy will be reduced. The government plans to provide 100 billion pounds over the next twelve years to rise to the "overwhelming challege". The development of renewable energies should also improve energy security by diversifying energy suppliers. According to these proposals renewable energies should contribute to 30-35% of electricity production by 2020. This implies a modification in behaviour and ways of life as well as developing creativity, innovation, entrepreneurial spirit both in the economy and society.

The new Group of Friends of Georgia created in 2005 (an informal group rallying countries that want to help Georgia succeed in completing its democratic transition, )brought together Foreign Ministers and diplomats from member countries in Warsaw. Representatives from the USA, Slovakia, the European Council and NATO were also present as observers. The group was chaired by the Polish Foreign Minister, Radosław Sikorski. Discussions focussed on relations between Georgia and the EU, which have improved thanks to negotiations on visa faciliation procedures; the country's future integration into NATO; its relations with Russia, the settlement of the conflicts in Abkhazia and Southern Ossetia and the establishment of democratic reforms in the country.

According to Eurostat and the Commission's Directorate General for Taxation and Customs Union figures published on 26th June the weighted tax-to-GDP ratio (i.e. the total amount of taxes and social security contributions) in the EU increased to 39.9% in 2006 from 39.3% in 2005. In 2006, the overall tax ratio in the euro area was 40.5%, up from 39.8% in 2005. However, the tax burden varies significantly between Member States, ranging in 2006 from less than 30% in Romania (28.6%), Slovakia (29.3%) and Lithuania (29.7%), to almost 50% in Denmark (49.1%) and Sweden (48.9%).

The economic sentiment index of the euro area that summarizes the opinion of company heads and consumers declined radically in June, to its lowest level since May 2005 in an inflationary context marked by the surge in energy prices. The index declined by 2.7 points to 94.9 points according to an enquiry published on 27th June by the European Commission.

According to Eurostat figures published on 30th June the annual inflation rate in the euro area reached 4% in June 2008. In May the figure lay at 3.7%.

In a study published by the German Society for Foreign Policy - DGAP, Catherine Wihtol de Wenden looks into the perspectives of French and European migration policies as well as the conflicts and requirements (Von Widersprüchen und Notwendigkeiten: Perspektiven französischer und europäischer Migrationspolitik).

The Centre for European Reform (CER) has published a study on the new European Union policy with regard to Russia ("The EU's new Russia policy starts at home"). The Union hopes that the EU/Russia Summit will enable the settlement of energy and trade conflicts and provide new impetus. However Katinka Barysch thinks that it would be preferable for the Europeans to take their time and believes that discussions will only be productive when Russia has joined the WTO and when Europeans have a more coherent energy policy.

The Swedish Institute for European Policy Studies (SIEPS) has just published a study entitled "The potential impact of the Lisbon Treaty on European Union external trade policy".

The European Environment Agency has published a report showing CO2 emissions on the part of the EU between 1990 and 2006 by Member States and by economic sector. According to the report Member States have made progress with regard to emissions reductions and are on the way to achieving their Kyoto objectives. Indeed emissions have dropped by 7.7% in comparison with 1990 data. According to the Commission the main reasons for this reduction are global warming, the drop in the production of nitric acid, the reduction in the production of chemical products in France and Hungary and the household use of gas and liquid. The Commission is still concerned though about the rise in emissions in the new Member States.

The Franco-German Institute (DFI) of Ludwigsburg has published a paper "Points de vue France-Allemagne, un regard comparé" (Points of view France-Germany, a comparative vision) with the publishing house NDV, Doumic. The authors (Frank Baasner, Bérénice Manac'h and Alexandra von Schumann) suggest that the exemplary reconciliation between the German and French populations does not prevent misunderstandings - they paint a picture of the reality in each country and provide a guide to all of those who work on Franco-German projects.