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Just a few days from the European Council on 17th and 18th June the chairman of the Robert Schuman Foundation Jean-Dominique Giuliani has published an editorial on his site entitled "Towards a European budgetary federation."
Elections/NetherlandsThe People's Party for Freedom and Democracy (VVD), led by Mark Rutte and the Labour Party (PvdA), led by Job Cohen emerged neck and neck in the general elections that took place in the Netherlands on 9th June. The States General Chamber (Tweede Kamer), the Lower Chamber in Parliament comprises 150 seats. The VVD won 31 seats (+9) whilst the PvdA won 30 seats (-2). The Freedom Party (PVV), a far right party led by Geert Wilders won 24 seats (+16). The Christian Democratic Appeal led by outgoing Prime Minister Jan Peter Balkenende is the grand loser in this election with 21 MPs (-20). The Socialist Party (SP), far left came fifth with 15 seats (-10); the Green Left (GL) 10 seats (+3); Democrats 66 centre left 10 seats (+7); the Christian Union (CU), 5 seats (-1); the Political Reform Party (SGP) 2 seats (=) and the Animals Party (PvdD) 2 MPs (=). Turnout rose to 74.5%.
Elections/SlovakiaThe party of outgoing Prime Minister Robert Fico, Direction-Social Democracy (SMER-SD) came out ahead in the general elections on 12th June in Slovakia. He won 34.79% of the vote and 62 seats. But its partners in the government coalition did not achieve such good results: the National Party (SNS) led by Jan Slota won 5.07% of the vote (9 seats, -11) and the Movement for a Democratic Slovakia (LU-HZDS) led by former Prime Minister Vladimir Meciar failed to rise above the necessary 5% threshold (4.32%). The main opposition party, the Democratic and Christian Union-Democratic Party (SDKU-DS) led by Iveta Radicova, won 15.42% of the vote (28 seats). Freedom and Solidarity (SaS) a party created by Richard Sulik achieved 12.14% (22 seats), the Christian Democratic Movement (KDH) led by Jan Figel 8.52% (15 seats, +1) and Most-Hid (Bridge), led by Bela Burgar, won 8.12% and 14 seats. Together these four parties have 79 seats in Parliament out of a potential 150 ie the absolute majority.
Elections/BelgiumThe New Flemish Alliance (N-VA) led by Bart de Wever won the general elections in Belgium on 13th June. The N-VA won 18.65% of the vote and 28 seats in the Chamber of Representatives; it won 20.64% of the vote and 9 seats in the Senate. The N-VA's excellent result is to the detriment of the other Flemish parties: Flemish Democratic Christian Party (CD&V) led by outgoing Prime Minister Yves Leterme, Open VLD, SP.A, Groen. If the votes of the N-VA, Vlaams Belang and the DeDecker List are added together the parties promoting the independence of Flanders represent 44.1% of the Flemish electorate. Elio di Rupo's Socialist Party (PS) is the winner in Wallonia where it won 11.43 % of the vote and 25 seats in the Chamber of Representatives and 12.24% of the vote and 7 seats in the Senate. It has become the leading French-speaking force once more ahead of MR led by Didier Reynders, the CDH and Ecolo. Bart de Wever (NV-A) is due to assume federal responsibilities and stand for the post of Prime Minister but he has said that he is ready to leave the position to Elio di Rupo (PS).
Election/Poland
30 million Poles are being called to vote on 20th June next for the first round of the presidential election. This electoral campaign is taking place in a country in mourning and is really specific: the accident on 10th April and the floods are weighing heavy on the two main candidates - Bronislaw Komorowski and Jaroslaw Kaczynski. According to the latest poll by GfK Polonia, published on 12th June last Bronislaw Komorowski is due to win the first round of the presidential election with 42% of the vote against 29% for Jaroslaw Kaczynski. Grzegorz Napieralski is due to come 3rd with 7% of the vote and Deputy Prime Minister and Economy Minister Waldemar Pawlak, 2%. The six other candidates will be below the 1% threshold of votes.
So what will happen in the second round on 4th July?
On 31st May last the President of the Federal Republic, Horst Köhler was the source of stupefaction when he announced that "he was resigning immediately," after learning of the reactions to the interview he had given on his return from Afghanistan on 22nd May and in which he justified the military engagement of 4,500 German soldiers in Afghanistan for economic reasons. On 3rd June the Chancellor put forward the candidate chosen by the government coalition, Christian Wulff, Minister President of Lower Saxony. Joachim Gauck, who undertook research in the archives of the former political police of the German Democratic Republic (RDA), the Stasi, will be the candidate for the Social Democratic Party (SPD) and the Greens. The Head of State will be elected by the German Federal Assembly (Bundesversammlung) that comprises 1,224 members on 30th June. Until then the interim will be ensured by the leader of the Upper Chamber of Parliament (Bundesrat), Jens Böhrnsen (SPD).
Conference"Is there a vision of a world specific to Europeans?" This is the question the Robert Schuman Foudation and the CERI invite you to come and ask of Gilles Andreani, associate professor at the University of Paris II and former director of the analysis and forecasting centre for the Foreign Minister together with Daniel Vernet, founder of the international political site, "Boulevard Extérieur" and former manager of the international pages of Le Monde. This sixth and final chapter in the series of seminars "The European Union in quest of legitimacy: towards a joint new approach?" will take place at the CERI on Tuesday 22nd June from 5pm to 7pm.
The 16 Finance Ministers of the euro area finalised the creation of an emergency fund for the euro area on 7th June to an historic total of 440 billion euro. The fund will take the shape of a limited company registered legally in Luxembourg and will also be established in Luxembourg. They agreed on 9th May on the principle of such a fund. Sweden and Poland, non-members of the euro area joined this mechanism that is to be completed by EU and IMF loans to rise to a total of 750 billion euro. In addition to this they commited to restricting the execution of 2010 and 2011 budgets. Finally Eurogroup chair Jean-Claude Juncker announced on 8th June that Klaus Regling former German and European top civil servant will chair the new European Financial Stabilisation Fund (EFSF) designed to support countries that are in difficulty in the euro area. Klaus Regling will take office as from 1st July in Luxembourg.
CouncilThe 27 European Finance Ministers came to an agreement on 8th June on the principle of providing the European Statistics Office, Eurostat with greater powers of investigation, together with greater investigative rights in the Member States to check the reliability of data they provide with regard to their debt. Ministers also gave their green light to the adoption of the euro on January 1st 2011 by Estonia thereby making it the first Baltic country to take the step and become the 17th Euro area state. This new enlargement of the euro area still has to be approved formally by the Heads of State and Government during the European Council on 17th and 18th June then it will finally be validated in July after consultation with the European Parliament.
ECBDuring a speech on 9th June the President of the European Central Bank (ECB), Jean-Claude Trichet insisted on the need for greater integration within the European Union. European integration, whilst remaining in the citizens' interests, would be one of the solutions to the budgetary crisis experienced by the Union. He observes that the establishment of a control and surveillance system for national budgets will offer a stronger political framework to the euro area. In addition to this after announcing the upkeep of the main rate at 1% the ECB issued its new economic forecasts. Hence it raises the euro area growth forecasts in 2010 from 0.8% to 1%. However it is forecasting a decline in growth in 2011 down to 1.2% (in comparison with 1.5% previously). With regard to inflation in 2011 the ECB believes that it will lie between 1% and 2%.
Task ForceOn 7th June the President of the European Council Herman Van Rompuy laid out the main results of the second meeting of the High Level Group on Economic Governance. With regard to the enhancement of the Stability and Growth Pact the Group is suggesting a "European semester" during which draft national budgets would be presented to the Commission and the Council for an assessment of the main guidelines; the Group also proposes possible sanctions against a State before stability criteria had even been surpassed; finally he explained that it was necessary to pay more attention to debt and support the independence of statistics authorities. To reduce divergence in competitiveness between the Member States the Group is asking the Commission to develop appropriate indicators which would issue warnings in good time. According to Mr Van Rompuy it would also be necessary to punish States which did not respond to these warnings.
IMFIn a document delivered on 7th June to the Finance Ministers of the euro area the IMF heavily criticises the dysfunctions in the euro area. According to the report the policies undertaken by the governments were not viable; the IMF is recommending the creation of a common authority enabling the definition of the admissible budgetary deficit for each member of the euro area as well as an effective means of sanction. The IMF recalls that the centralisation of budgetary goals is only possible if the treaties are modified. The IMF approves the Commission's proposal for euro area Member States to submit their draft budgets to it prior to any consultation with national parliaments. Finally the IMF suggests that for a recovery of growth in terms of reform there should be greater flexibility in the labour market, the deregulation of services as well as greater European competition.
France/GermanyFrench President Nicolas Sarkozy and German Chancellor Angela Merkel communicated their joint position with regard to the urgency of financial regulation in a letter dated 8th June to Commission President José Manuel Barroso. The two leaders call on the Commission to "step up and intensify" the regulation of the infrastructures of the derivative products markets. The enhanced monitoring of derivative products such as "short selling and Credit Default Swaps are of an urgent nature for which they are expecting proposals on the part of the Commission. Angela Merkel and Nicolas Sarkozy recall that they would like to "see greater transparency of short positions on equities and bonds, especially sovereign bonds."
GermanyOn 7th June German Chancellor Angela Merkel and Deputy Chancellor Guido Westerwelle published details of a wide-ranging austerity plan unprecedented in German history; the plan aims to reduce public spending. It is planned to make savings of over 80 billion euro by 2014. The main targets are subsidies, social spending as well as the civil service and the army. However the government has abandoned raising income tax and VAT rates which some consumer products benefit from. Since 2009 the German constitution has included the goal of bringing the deficit down to 0.35% of the GDP by 2016.
AustriaAccording to final figures published by the economic institute Wifo on 10th June Austria's GDP declined by 0.1% in the first quarter of 2010 in comparison with the fourth quarter of 2009 but it has risen slightly over one year. In comparison with the previous quarters the GDP increased by 0.3% in the fourth quarter of 2009 and by 0.7% in the third quarter.
FinlandAccording to figures published on 9th June by Statistics Finland the Finnish GDP recorded a decline of 0.4% in the first quarter of 2010 in comparison with the previous quarter and a decline of 0.8% year on year. In addition to this the International Monetary Fund said on 7th June that growth outlooks for Finland "were highly uncertain" in spite of forecasts of increases in the GDP over the next two years, after a fall of nearly 8% in 2009. In its assessment of the Finnish economy the IMF believes that the GDP is due to grow by 1.25% after a decline of 7.8% in 2009 because of the world financial crisis that particularly affected this country whose economy relies on exports.
HungaryHungarian Prime Minister Viktor Orban announced on 8th June to Parliament that he was determined to continue the policy to reduce public deficits. He announced a series of measures designed to reduce public spending, increase revenue and stimulate growth: taxation of banks, that would bring in 200 billion forints (709 million euros) in the name of the "principle of taking mutual responsibility", cuts in spending would lead to savings of 120 billion forints (425 milion euros). He announced the introduction of income tax at a flat 16% rate and several reductions or tax exemptions to boost domestic demand. On 9th June he announced he would do everything he could to maintain the deficit at 3.8% of the GDP agreed with the IMF. In addition to this the Hungarian economy emerged from recession in the first quarter of 2010 with a GDP growth of 0.9% in comparison with the previous quarter according to figures that were published on 9th June.
ItalyIn the first quarter of 2010 the GDP increased by 0.4% in comparison with the previous quarter and by 0.5% in comparison with the same period in 2009 according to data published by the National Statistics Institute on 10th June.
LatviaThe European Commission together with the IMF, the World Bank and representatives of Sweden ended discussions with the Latvian authorities on the implementation of the action programme relative to multilateral aid of 7.5 billion euro. The aim of reaching a budgetary deficit of 8.5% of the GDP in 2010 can be done thereby leading to an acceleration in spending funded by the EU. All share the same point of view on the need for an additional net balancing of 395 to 440 million lats to reach the budgetary deficit goal of 6% of the GDP in 2011 (according to the SEC95 standard).
PortugalPortuguese President Anibal Cavaco Silva said on 10th June that he believed Portugal found itself in an "untenable situation" calling for a "contract of national cohesion" to rise to the financial difficulties that the country was facing. "As I warned previously we have reached an untenable situation. We have much work ahead, an enormous task and inevitable sacrifices to make," declared the head of State in Faro during the Portuguese national celebrations.
On 10th June German Chancellor Angela Merkel declared that she was in favour of changing the treaties of the European Union. The President of the Council Herman van Rompuy said he wanted to work respecting the present treaties but stressed that he felt there was no 'taboo' with regard to talking about reviewing these texts. However he said he believed that it was not useful to create new institutions that would be responsible for improving economic growth, competitiveness and budgetary discipline.
MontenegroOn 9th June the Prime Minister of Montenegro Milo Dukanovic travelled to Brussels where he met most European leaders. The President of the European Council Herman Van Rompuy renewed the Union's commitment to the country and said he was pleased with the role played by Montenegro in terms of regional cooperation. He invited him however to step up the pace of reform. The Commission is studying Montenegro's candidature at present. Mr Barroso, President of the Commission recalled that political criteria were vital and with regard to this Montenegro still has to make progress. Mr Dukanovic met the President of the European Parliament Jerzy Buzek, the High Representative for the Common Foreign and Security Policy, Catherine Ashton and Enlargement Commissioner Stefan Füle.
ItalyThe President of the European Council Herman Van Rompuy was guest to President of the Italian Republic, Giorgio Napolitano and President of the Council, Silvio Berlusconi, on 8th June. The enhancement of economic policies and the fight against international speculation were the centre of discussion notably in view of the European Council on 17th June and the next G20 meeting.
UKBritish Prime Minister David Cameron received the President of the European Council Herman Van Rompuy on 7th June. They discussed the agenda of the Council that is to take place in Brussels on 17th June and the priorities of the UK for the next G20 summit that are notably financial regulation and boosting world trade. David Cameron highlighted the importance of cooperation between European states in the face of global challenges such as the upkeep of competitiveness, climate change and the fight against poverty.
The Commission decided on 10th June to encourage industry, governments and NGOs to set up certification schemes for all types of biofuels, including those imported into the EU. This will help implement the EU's requirements that biofuels must deliver substantial reductions in greenhouse gas emissions and should not come from forests, wetlands and nature protection areas. Günther Oettinger, Commissioner responsible for Energy, said: "In the years to come, biofuels are the main alternative to petrol and diesel used in transport, which produces more than 20% of the greenhouse gas emissions in the European Union. We have to ensure that the biofuels used are also sustainable. Our certification scheme is the most stringent in the world and will make sure that our biofuels meet the highest environmental standards. It will have positive effects also on other regions as it covers imported biofuels."
DiplomacyOn 9th June the European Commission adopted a draft proposal amending the Staff Regulations in view of the establishment of the External Action Service. The changes, which were discussed intensively with the staff unions, are aimed at ensuring equal treatment between the Service's three sources of staff – from the Council, the Commission and the national diplomatic services. These proposals pave the way for setting up the basic framework of the EEAS's personnel policy, but do not concern its organisation chart or the details of its future staff policy.
TrainingOn 9th June the European Commission put forward a communication entitled "Giving new impetus to European cooperation in terms of vocational education and training to support the Europe 2010 strategy". The Commission is encouraging young people to follow vocational training (at present 50% of pupils in higher education) to relax access conditions at all stages in life , stimulate creative and entrepreneurial spirit and facilitate mobility from one country to another. The aim is to provide young people with the necessary skills to find appropriate work and give adults the possibility of updating their skills during their entire working life.
MoldovaOn 9th June the Commissioner for Enlargement and the Neighbourhood Policy Stefan Füle spoke to the European Parliament on EU-Moldova relations. He welcomed the progres made in negotiations in view of deepening cooperation via a future association agreement. He also recalled the Union's commitment in support of the establishment of a free trade zone, the abolition of visas and structural reforms in Moldova. On the same day the Commission submitted a proposal to European Parliament for financial aid to the country to a total of 90 million euros.
On 9th June the President of the European Parliament Jerzy Buzek met Romanian President Traian Basescu, Prime Minister Emil Boc and the Romanian Parliament. They addressed the difficult issue of reforms and the responsibility of MPs in this test to repair the economy. Mr Buzek invited the Romanian political classes to pay the price of these austerity reforms that will help Romania to emerge from the crisis and consolidate its European integration. The President of the Parliament recalled the important regional role that Romania plays with its neighbours on the Black Sea and encouraged the country to continue cooperation work, notably in the area of energy.
European Employment and Healthcare Ministers agreed on 7th and 8th June on the general guidelines for employment policies and on a European social inclusion goal (to reduce by at least 20 million the number of people living in poverty before 2020), in view of the European Council in June that is due to adopt a series of goals for the Europe 2020 strategy. Ministers also adopted conclusions on sustainable social security goals, on new skills to develop in view of future jobs, on active ageing and on the inclusion of Roms. They acknowledged the right of independent women to receive maternity benefits for 14 weeks. With regard to healthcare ministers approved new rules in terms of cross border healthcare.
EnvironmentOn 11th June the 27 European Environment Ministers discussed the possible effects of moving on to a more ambitious goal to reduce greenhouse gases. The Union committed to reducing them by 20% which might rise to 30% if a similar commitment was made by international partners which would reduce the danger of the "carbon leakage". Ministers also adopted conclusions on adapting to climate change particularly with regard to water shortages and the protection of forests. They finally looked at the preparation of the UN conference on sustainable development that will take place in 2012 and on the prevention of biotechnological dangers, notably those associated with mvoement between borders of live genetically modified organisms.
TransportDuring a meeting of European Transport Ministers on 8th and 9th June in Saragossa, France, Spain and Portugal signed a declaration of intention with regard to high speed railway lines in the south west of Europe. The agreement "will lead to the effective coordination of the various sections" called on to link three new high speed lines from the Iberian peninsula to those in France over the next three years. European funding will be the focus of discussions as part of future negotiations with regard to the community budget 2014-2020. French, Spanish and Portuguese Transport Ministers asked for the creation of a common company between the three national operators (SNCF, Renfe, CP) along the lines of Eurostar and Thalys. A Lisbon-Porto line will join a Hispanic-Portuguese cross border connection from Aveiro to Salamanca as well as a direct line Lisbon/Madrid.
UkraineOn 9th June there was an interministerial meeting between the EU and Ukraine on freedom, security and justice. The Ukrainian government committed before European representatives to step up the fight against corruption, the trafficking of people and drugs and to step up work to control borders. This latter point is particularly important for the EU in the fight against illegal immigration and this is still a condition for the continuation of the process to relax the visa system.
In a decision dated 8th June (case C-58/08) the European Court of Justice said it believed that the regulation (CE nº717/2007) with regard to roaming was valid ie when calls are received and made by a user outside of the network of their mobile phone provider. When challenged about the infringement of the principles of subsidiarity and proportionality it declared that the Community had the right to impose caps on the prices charged by mobile telephone operators for roaming calls in the interest of the internal market. It said it believed that the cost/price ratio in operation did not match the one that would be practised on a fully competitive market - thereby disturbing the running of the community's roaming market. As soon as the regulation was implemented on reserve that it would be limited in time it was in proportion with the goals to protect consumers. It is justified on a community level wtih regard to the goal of a harmonious internal market.
German Economy Minister Rainer Brüderle announced on 9th June that he was rejecting the request for guarantees for the car manufacturer Opel, leaving it up to its American mother company General Motors to restructure it alone. "As Economy Minister, I have decided to reject the request. I am convinced that Opel has a bright future even without 'public guarantees'", declared Rainer Brüderle. The car manufacturer was asking for 1.1 billion euros from Germany where it employs half of its 46,000 European workers to help it restructure.
GrowthAccording to a report published on 11th June by the Bundesbank the latter has raised its growth forecasts for Germany for this and next year, with Europe's leading economy taking full advantage of the recovery in world demand. In 2010 the German Central Bank is now counting on a 1.9% rise in the GDP in comparison with 1.6% forecast in December. The following year the economy is due to grow by 1.4% instead of 1.2% as previously forecast.
Austrian Foreign Minister Michael Spindelegger met his Macedonian counterpart Antonio Milososki on 9th June in Vienna. He highlighted the progress achieved by the country in view of joining the EU. According to Mr Spindelegger the integration of Macedonia would be good for the Balkans as well as for the EU and Austria.
The New Flemish Alliance (N-VA) led by Bart de Wever won 18.65% of the vote and 28 seats in the Chamber of Representatives and 20.64% of the vote and 9 seats in the Senate. It came out ahead of the Flemish Democratic Christian Party (CD&V) 11.64% (17 MPs) and 10.53% (9 Senators), the Liberals (Open VLD) 8.82% (13 seats) and 8.18% (3 Senators), the Flemish Socialist Party (SP.A) 9.8% (13 MPs) and 9.88% (4 Senators), Groen 4.54% (5 seats) and 3.87% (1 Senator), Vlaams Belang (VB), 8.36% (11 MPs) and 8.08% (3 Senators) and the Dedecker List 2.45% (1 MP). The Socialist Party (PS) led by Elio di Rupo won 11.43% of the vote and 25 seats in the Chamber of Representatives and 12.24% and 7 seats in the Senate. He came out ahead of the Reform Movement (MR) 8.92% (18 seats) and 8.81% (5 Senators), the Humanist Democratic Centre (CDH) 5.31% (11 seats) and 4.95% (2 Senators) and Ecolo 4.55% (8 MPs) and 5.28% (2 Senators). Turnout totalled 66.83% in the elections for the Chamber of Representatives and 66.55% for the Senate.
PolandOn 8th June Belgian Prime Minister Yves Leterme met his Polish counterpart Donald Tusk to discuss their priorities for the Presidency of the Council of the European Union which Belgium will take over on 1st July 2010. Yves Leterme supported the importance of reciprocal consultations during the Belgian and Polish Presidencies and stressed the importance of the role Poland is called to play within the Union "thanks to its surface area and geographical situation." He indicated that economic issues, the enhancement of stability and growth were amongst the priorities of the Belgian presidency.
The Spanish government delivered its project for the reform of the labour law to its social partners after the failure of negotiations between unions and management. The reform of the labour market is believed vital by the government, international organisations and analysts whilst unemployment nears 20% and the economy is struggling to emerge from recession.
ItalyThe Head of the Spanish government José Luis Zapatero travelled to Italy on 10th June; he met his Italian counterpart Silvio Berlusconi. The two leaders insisted on the importance of "common governance" for the euro area that has become a cause for concern because of the finances of some countries including Spain and Italy. The solution to the end of the crisis in their opinion would not be "national but European." They highlighted the good relations that existed between their two countries from both economic and political points of view and their determination to enhance this.
Georgian President Mikhail Saakachvili was the guest of French President Nicolas Sarkozy on 8th June. During their interview the French president guaranteed the Georgian president that France was "one of Georgia's main supporters" after the European Union and that "it was pushing for an association and free-trade agreement that could start as from this summer." The Georgian President said he was happy with the unconditional support and "unhesitating " attitude of France towards his country in spite of concern raised by the project to sell equipment such as the Mistral to Russia. He also met Prime Minister François Fillon.
RussiaRussian Prime Minister Vladimir Putin visited Paris on 10th and 11th June. He spoke with French President Nicolas Sarkozy and French Prime Minister François Fillon with regard to bilateral relations between France and Russia, sanctions against Iran and the preparation of the G20 summit. The French President particularly welcomed Moscow's decision to freeze the delivery of S-300 anti-air missiles to Iran and re-iterated his desire to cooperate with Russia to reform the international monetary system. The Russian and French leaders said they wanted to step up negotiations on the sale by France of four Mistral helicopters to the Russian navy. Discussions on this subject that are the cause of concern on the part of Georgia and the Baltic countries, are still encountering difficulties with regard to the transfer of technology and production sharing.
Mari Kiviniemi was elected on 12th June as head of the Centre Party to take it to victory in the general elections in 2011 and to guarantee her by that time the role of Prime Minister, a position which she is due to inherit. Mari Kiviniemi, 41, replaces Matti Vanhanen who has resigned as the chair of the Centre Party and she is also due to succeed him as head of government after a vote in Parliament and the approval of Finnish President Tarja Halonen on 22nd June.
On 10th June the Italian Council of Ministers approved a measure that brings the retirement age of women civil servants up from 60 to 65 in 2012 and not 2018 as previously planned, to fall in with the European Commission's request of 3rd June. This modification will involve 25,000 women in all. With regard to this subject the Robert Schuman Foundation recently published a table to provide better understanding of the retirement systems in the 27 EU Member States.
BulgariaThe head of the Italian government Silvio Berlusconi inaugurated a monument devoted to the glory of Garibaldi in Sofia on 13th June - the latter was an Italian patriot who fought for the unification of Italy in 19th century. This visit came at the same time as the Bulgarian Prime Minister Boïko Borissov's birthday.
After the early general elections on 9th June in the Netherlands the Liberal Party (VVD) won 31 seats out of a possible 150, Labour (PvdA) 30 seats and the Freedom Party (PVV) 24 seats. The Christian Democrats (CDA) declined from 41 to 21 seats. Its leader and outgoing Prime Minister Jan Peter Balkenende who had been in office for eight years immediately announced his retirement. Queen Beatrix of the Netherlands asked on 12th June that politicians should "first explore the possibility of forming a government in which the biggest parties and clearest victor would take part." These parties are the Liberal VVD led by Mark Rutte and the far right PVV of Geert Wilders, declared Henk Brons, spokesperson for the "informer" Uri Rosenthal, who was asked by the Queen to sound out the political parties in view of forming a government.
The lower chamber of Parliament appointed former Prime Minister and Director of the International Monetary Fund for Europe, Marek Belka as head of the Polish Central Bank on 10th June. The candidature put forward by interim Head of State Bronislaw Komorowski was approved 253 votes in favour, 184 against. 58 year old Mr Belka succeeds Slawomir Skrzypek who died in the plane crash with Lech Kaczynski on 10th April.
EUDuring a press conference in Brussels on 9th June with European Commission President José Manuel Barroso, Polish Prime Minister Donald Tusk warned against an "elitist" trend in the euro area saying that economic governance of Europe should not be limited to the 16 countries that share the European single currency. Echoing a speech by José Manuel Barroso who does not support the plan for economic governance within the euro area, he said "We need greater governance within the euro area but also across the entire Union." "We must avoid the division of Europe. It seems important to me to retain the EU's integrity. There are 27 of us now and it is the Commission's duty to defend the idea of unity," he insisted.
Romanian President Romanian Traian Basescu travelled to Albania where he met his Albanian counterpart, Bamir Topi and Albanian Prime Minister Sali Berisha. This meeting provided an opportunity to renew bilateral relations between the two countries. Albania is continuing its process to integrate Europe after having joined NATO in 2009 - it received the Romanian President's full support; he is encouraging it to continue work in view of enlargement. Mr Basescu recommended finalising technical reform that will help Albania achieve a positive opinion from the Commission for the liberalisation of the visa regime as of autumn 2010. The Romanian President spoke of the status of minorities. He asked Mr Berisha to grant the Romanian community of Albania the status of national minority and to respect the rights that went with this.
DanubeIn Constanta in Romania the European Commissioner for Regional Policy, Johannes Hahn concluded a six month public consultation on potential developments on the Danube. During this final conference Mr Hahn declared that the European strategy for the Danube is "vital" for the future of the region. He estimates that the economic development of the countries that lie on the banks of Danube, victims of the economic recession, forcibly involves the dynamism of the river and a modernisation of the river and port network. The European Commissioner believes it necessary to apply a sustainable development model like the one applied to the Baltic Sea which focuses on three mainstays: the improvement of interconnections and of the network, economic and social development and environmental issues.
UnemploymentThe unemployment rate continued to decline in Romania in May to lie at 7.67% in comparison with 8.07% in April according to official statistics published on 8th June by the National Employment Agency (ANOFM). In May 2010 701,854 people were officially registered as unemployed in this country of 21.5 million people. In May 2009 unemployment lay at 5.7%.
British Prime Minister David Cameron undertook his first visit to Afghanistan on 10th June. During joint press conference with Afghan President Hamid Karzaï he rejected any perspective of sending more British troops to Afghanistan. The UK has the second biggest contingent (10,000 soldiers) in the country after the USA. He announced he would devote £67 million (83 million euro) to counter roadside bombs - the Talibans' favourite arms and double the number of anti-mine experts in the field.
SMER-SD of outgoing Prime Minister Robert Fico came out ahead in the Slovak general elections on 12th June with 34.79% of the vote. With the Nationalists of the SNS led by Jan Slota SMER-SD only succeeded in rallying 71 of the 150 seats available in the lower chamber of Parliament. The third element of the outgoing coalition, the LS-HZDS of former populist Prime Minister Vladimir Meciar did not rise above the 5% threshold required to enter parliament. Four opposition parties on the right and in the centre together succeeded in taking 79 seats of the 150 available: the Democratic and Christian Union (SDKU-DS) won 15.42% of the vote (28 seats), the liberals of SaS, 12.14% (22 seats), the Christian Democrats (KDH) 8.52% (15 seats) and Most-Hid 8.12% (14 seats). The Slovak President Ivan Gasparovic declared on 13th June he was going to ask outgoing Prime Minister Robert Fico to form a government but his task seems a difficult one to accomplish.
The Council of the European Union renewed the mandate of the European Justice and Police Mission in Kosovo for another two years (Eulex) initially established on 4th February 2008. The mission undertaken by French General Yves de Kermabon has also been renewed until June 2012 to accompany the creation of the rule of law in Kosovo. The goals of independent judicial and transparent police systems are struggling to become a reality. The last Eulex report published on 4th June believes that the Kosovar system is still showing signs of weakness and irregular ability for reform. Although the report highlights some progress made in Kosovo Roy Reeve the head of the Union's mission in Kosovo declared that the improvement in the rule of law is taking time and that active work still had to be done with the local authorities to counter corruption and to achieve sustainable change.
On 7th June Turkey and Azerbaijan signed an agreement in Istanbul on gas. They set quantities and prices on gas that Azerbaijan will provide to Turkey after the launch of the gas fields in Sah-Dniz II in 2017; they also reassessed the present price of Azerbaijani gas dispatched to Istanbul. The agreement also defines the amount of commission Turkey will receive for the transfer of gas from Azerbaijan towards Europe. This State which is rich in gas is the focus of great interest on the part of Europeans as part of the gas pipeline Nabucco betwen Turkey and Austria of which it may become a major supplier.
RussiaRussian Prime Minister Vladimir Putin met Turkish President Abdullah Gül on 8th June. This meeting between Russia and Turkey provided an opportunity for the two Heads of State to sign an agreement on the control of nuclear security and to express their desire to speed up the implementation of their energy agreements. As part of the summit on security in Asia he met his Turkish counterpart Recep Tayyip Erdogan. The turnover of bilateral trade is due to be multiplied by four in five years time to reach a 100 billion dollars per year.
The Emirates Airline made an unprecedented order on 8th June for 32 giant A380 planes from Airbus; this is good news for a programme that had a difficult start and which has been a financial black hole for the European airplane manufacturer. With this purchase of 11.5 billion dollars (9.64 billion euros) it is the "biggest order ever recorded in civil aviation history in dollars", said the marketing director of Airbus, John Leahy.
The UN Security Council approved several sanctions against Iran on 9th June since it is refusing to halt its programme to enrich uranium. The Union's High Representative for the Common Foreign and Security Policy, Catherine Ashton backed the UN resolution which was adopted 12 votes in favour, 2 against (Brazil and Turkey) and one abstention (Lebanon). The text repeats and extends the sanctions that were already announced three times against Teheran but doubts continue with regard to their real effect.
On 10th June the World Bank published its "World Economic Outlook 2010". According to this study the world's GDP is due to rise by between 2.9% and 3.3% in 2010 and 2011 after its 2.1% decline in 2009. The discrepancy in growth between the rich and developing countries will be great with the GDP of the former rising by 2.3% maximum in 2010 in comparison with 5.7% to 6.2% for the latter. Recovery may however suffer from reduced international capital flows, high unemployment rates and constant increases in the sovereign debts of high income countries. According to the report, while the impact of the European debt crisis has so far been contained, prolonged rising sovereign debt could make credit more expensive and curtail investment and growth in developing countries public debt may increase loans and limit investments which will damage developing countries' growth.
FinancesAccording to a report by the International Finance Fund published on 10th June the implementation of the reform on the new regulation arsenal - Basel III may withdraw 0.6 points on average per year from the real GDP growth of the USA, the euro area and Japan over the period 2011-2015.
EducationOn 7th June the European Commission presented a study on the way European countries address inequality between men and women in education. Half of the countries have policies that aim to counter stereotypes and the traditional role sharing in the choice of profession but differences associated with gender continue on all levels. Teachers are mainly women, but educational systems are run by men; only one third of countries have set in place real policies to counter vertical segregation. Moreover boys are more affected by school drop out. Only Austria and the UK have programmes designed specifically to raise the level of boys' competence with regard to reading and for girls to improve in maths and science.
DiscriminationDiscrimination continues in the EU ten years after the adoption of a directive on racial equality according to an annual report by the Fundamental Rights Agency published on 10th June. Racism is still part of everyday life for a great number of immigrants and minorities living in the Union highlights the report.
CrisisThe European Parliament has just published a study entitled "The Cost of Non-Europe in the Crisis". The authors analyse the importance of the decision making structures of the European Union on the economic crisis and highlights what would have happened if the Union had had a more coordinated and effective mechanism at its disposal. The study focuses on the Union's role in preventing and managing the crisis, identifies the political shortcomings and action to take Europe-wide to avoid a crisis like this happening again.
According to figures published by Eurostat on 11th June the European Union's current operations account registered a deficit of 23.4 billion euros in the first quarter of 2010 compared with a deficit of 50.6 billion in the first quarter of 2009 and 9.2 billion in the fourth quarter of 2009. Over the same period of time the EU balance of services recorded a surplus of 13.2 billion euro compared with a surplus of 13.3 billion in the first quarter 2009 and 19.1 billion in the fourth quarter of 2009.
On 11th June Eurobarometer published two new surveys one focusing on blood donors and transfusions and the other focusing on organ donations and transplants. The first survey reveals that 37% of Europeans have already given blood. This indicates an increase of 6% since the first survey Eurobarometer undertook in 2002 in the EU. Most Europeans (57%) think that the security of transfusions has improved over the last ten years. The second survey shows that more than half of Europeans are prepared to give their organs after their death and that 40% of Europeans have already raised the issue with their families.
The 6th "biennale" of modern art in Berlin entitled "Was Draußen wartet" - 'What is waiting outside' - presents the work of 43 national and international modern artists in six places in the city until 8th August.
Exhibition/Scy-ChazellesThe Robert Schuman House in Scy-Chazelles is putting on an exhibition until August 1st: "From the Father of Europe to the Fathers of Europe: History of the Charlemagne Prix of Aachen (1950-2010)". The inauguration of the exhibition will take place on 19th June at 6:30pm.
Exhibition/RouenAs part of the "Normandy Impressionist" festival and until 26th September the Fine Arts Museum of Rouen is presenting about one hundred works of art by the greatest masters of impressionism, devoted to the town "of a hundred bell towers". The work by Monet, Gauguin, Pissarro and other great 19th century painters will be brought together to explore one of the biggest themes in the history of impressionism that has never been the focus of an exhibition before: the Norman city as a laboratory for the new painting technique, between urban agitation and the countryside, old stones and expanding industry, all glimmering in the light of the Seine.
Molière FestivalAs each year and for one month the town of Versailles is being transformed into a grand stage for "Molière's Month". Until 30th June the Molière Festival will be host to 250 shows (theatre, dance, concerts and conferences) in sumptuous locations such as the Grande and Petites Ecuries, the royal manège, the Montansier Theatre, the Domaine of Madame Elisabeth and even the Jeu-de-Paume.
Museum/KrakowA branch of the historic museum in Krakow was inaugurated on 10th June in Oskar Schindler's Emalia Factory. A multi-media exhibition on daily life in Krakaw during the second world war from 1939 to 1945 has been open since 11th June.
Museum/ZwickauOn 8th June 2010 it was the 200th annivesary of the birth of Robert Schumann, the German romantic composer who was born in 1810 and died in 1856. Robert Schumann's home town, Zwickau is celebrating the 200th anniversary with more than 80 events.
General Affairs and External Relations Council
Plenary session of the European Parliament (Strasbourg)
European Council
Presidential Election in Poland (Round 1)
Environment Council
