On 10th June the Belgians will be renewing the 150 members of the Chamber of Representatives and the 71 members of the Senate. Members of Parliament are elected for a four year period. Outgoing Prime Minister Guy Verhofstadt (Open VLD), in office since 1999, is running for his third term. But Yves Leterme, (CDV-NVA), Elio Di Rupo (PS), Didier Reynders (MR), Johan Vande Lanotte (SP.A) are also running for this post. The kingdom has three regions, (Flanders, Wallonia and Brussels-Capital) and three communities (French, Dutch and German speaking). It is obligatory to vote. All lists must be absolutely equal, the first two candidates on the list cannot be of the same sex. An individual cannot stand both for the Chamber of Representatives and the Senate.

On 11th May Serbia succeeded Saint Marino in the rotating presidency of the Committee of Ministers; Serb Foreign Minister, Vuk Draskovic presented the main lines of his programme for the next six months. In a declaration published on 12th May René van der Linden President of the Parliamentary Assembly of the Council of Europe (PACE) welcomed "the announcement of the agreement that had been reached with regard to the creation of the new Serb govenrment ... This event will bring a period of uncertainty that we have experienced recently to an end. I hope that the new government will work hard to continue to apply democratic reform in the interest of all Serbs.

German Foreign Minister, Franz Steinmeier said he was optimistic on 8th May about the rapid conclusion of a free exchange agreement between the EU and the Gulf Co-operation Council. The latter which was founded in 1981 rallies Saudi Arabia, Kuweit, Quatar, Bahrein, the United Arab Emirates and Oman together.

At the meeting of the Council of Economic and Finance Ministers of the European Union (ECOFIN) in Brussels on 8th May political agreement was achieved on the so-called e-Customs Decision. This lays the foundation for the introduction of Europe-wide interoperable and easily accessible electronic customs systems. The next step – after the common position is adopted – will be for the European Parliament to deal with the draft in a second reading.

The Etelka Barsy-Partaki report (PPE-DE, HU) dedicated to the mid-term examination of the White Paper on transport published in 2001 by the European Commission and adopted on 8th May highlights the lack of funding in transport infrastructures which comprises a major downfall in the European transport policy; in the long run this might threaten economic growth in the Union. The Transport Committee at the Parliament has invited the European Commission to put forward new innovative funding strategies particularly with regard to the trans-European transport networks.

The new "Europe for Citizens" programme was launched on 10th May in a joint event taking place in Brussels and Rhodes. The Europe for Citizens programme is about promoting civic participation in European issues by citizens across the EU. It places the emphasis on achieving 'active European citizenship', to improve Europeans' participation in the construction of Europe by co-funding projects relative to the following themes: "Active citizens for Europe", "Active civil society in Europe," "Together for Europe," and "an Active European Remembrance". The overall budget for the Programme between 2007 and 2013 will be 215 million euro.

The report on the mission undertaken in Kosovo between 25th and 28th April was presented to the Security Council on 10th May. "The political status quo is unfeasible in Kosovo," indicated Mission Chief Johan Verbeke. Differences run deep, and are even 'unreconcilable' between the Serbs and Albanians of Kosovo with regard to the proposals for a settlement put forward by Martti Ahtisaari, the UN Secretary General's special envoy who advises "an independent, viable, sustainable and stable Kosovo." American Ambassador Zalmay Khalizad confirmed "that most of the members of the Security Council favour the UN plan that aims to provide monitored independence to Kosovo in spite of Russia's opposition." His Russian counterpart Vitaly Churkin indicated that he did not favour "stagnation" and was even "ready to accept the transfer of UN responsibilities over to the EU as well as some parts of the Ahtisaari plan."

Should there be a minimum salary to allow the long term unemployed to re-integrate society without encouraging wage dumping? The partners in the grand coalition now seem to be drawing closer to an agreement and made a joint declaration on 9th May "to settle modern and effective regulations in the area of low salaries." The Chancellor did not reject the idea of "flexible, specific solutions to specific sectors" in order to avoid wage dumping. She did however repeat her opposition to the creation of a single minimum salary that was valid right across Germany. Talking to union representatives she said that she preferred an autonomy of tariffs carried by strong unions. It is up to the unions to prevent the establishment of salaries that are too low.

The ruling Republican Party easily won the general elections on 12th May announced the Central Electoral Commission on 13th May. It is followed by another government party, Prosperous Armenia and the Revolutionary Federation. The opposition parties (State of Law, Heritage) lagged far behind. "These elections herald a clear improvement in comparison with the last elections and this is good for Armenian democracy," declared the OSCE mission co-ordinator, Tone Tingsgaard. He stressed that the elections took place "according to international standards", for the first time since the fall of the USSR in 1991.

After two weeks of growing tension between Russia and Estonia and just before the EU-Russia Summit on 18th May the Russian national railway company has announced that it was going to do away with the rail connection for those travelling between Saint Petersburg and Tallinn. According to the company RZD the closure is justified by the low number of passengers using the line and as a result connections were suspended on 26th May although it had only been inaugurated on 31st March, just one and half months ago! On 9th May MEPs supported Estonia."Today we are all Estonians," declared Joseph Daul, the PPE-DE chairman as he spoke to the EP.

On 10th May the European Commission asked France to amend its legislation within nine months in order to eliminate the obstacles to the internal market rules represented by the special rights to distribute savings books ("livret A" and "livret bleu") granted to Banque Postale, Caisses d'Epargne and Crédit Mutuel. The Commission considers that the special distribution rights in question constitute a restriction which is incompatible with Community law (articles 43 and 49 of the Treaty) comprising a restriction to free establishment and the free provision of services and that it impedes the entry and the development of French or foreign competitors on the savings market in France. Competition Commissioner Neelie Kroes said "With this decision, the Commission is opening up the distribution of "livrets A" and "livrets bleus" for the benefit of consumers without harming or undermining the role of attracting funds for financing social housing, which is accepted as a service of general economic interest."

The Independence Party led by Geir Haarde won the general elections with 36.6% of the vote ie 25 seats out of the 63 in the Althing (Parliament). The Alliance (Social-Democrats) came second with 26.8% of the vote and 18 seats. The ecologist party, the Left-Greens recorded the highest rise in popularity and came third with 14.9% of the vote and 9 seats. The Progress Party, a member of the outgoing government coalition won 11.7% of the vote and 7 seats. The Liberal Party came 5th with 7.3% and four seats. The outgoing coalition (Independence Party/Progress Party) is therefore certain of having 32 MPs, which means one seat to comprise the majority. However it is still uncertain about whether the coalition will remain and whether it will change. The participation rate rose to 83.6%.

On 7th May the Netherlands became the first Member State to provide guarantees that EU funding was being used correctly. The European Commission welcomed the national, voluntary declaration on the part of the Dutch government with satisfaction since it gave details of the way in which community expenditure is undertaken and controlled. Siim Kallas, Vice-President of the European Commission with regard to administration said, "The European Commission encourages other Member States to follow the Dutch example and assume greater responsibility on how EU funds are spent in their countries."

The Constitutional Court in Poland has partially invalidated the extremely controversial "lustration" law that was meant to check on the past of some 700,000 Poles and their possible collaboration with the Communist regime. This decision comprises a major setback for the government. It is a victory for all of those who were against it such as MEP Bronislaw Geremek and former Prime Minister Tadeusz Mazowiecki. "The Court has confirmed that Poland is still a state of law," said Bronislaw Geremek. It did indeed decide that the MEP would maintain his status as MEP believing that "someone elected by universal suffrage cannot lose his status for having refused" to make a declaration on whether he worked with the former Communist secret police or not .

Prime Minister Tony Blair put an end to the suspense with regard to the date of his departure from office. "I am announcing my decision to leave the Labour Party leadership. The Labour Party will choose a new leader and I shall hand in my resignation as Prime Minister to the Queen on 27th June." On 11th May he declared that he supported his Finance Minister Gordon Brown in his bid to succeed him after his departure. Gordon Brown immediately announced that he would run to succeed Tony Blair. In office since 1997 Tony Blair has helped Labour win through since then, he therefore holds the longevity record as a Labour Prime Minister,(10years). But he ranks behind Margaret Thatcher (Conservative) who stayed in power for over 11 years (1979-1990).

After several weeks of negotiations and events the Democratic Party (DS) led by President Boris Tadic, the Democratic Party of Serbia (DSS) led by outgoing Prime Minister Vojislav Kostunica, and the G17 Party led by Mladjan Dinkic came to an agreement on 11th May to form a government. They immediately requested the replacement of the ultra-nationalist leader, Tomislav Nikolic (SRS) who was elected on 8th May as Chairman of Parliament. The latter announced on 13th May that he was resigning. President Tadic has given V Kostunica the responsibility of forming the next government that has to be approved by Parliament in order to take office. He hopes that a "new democratic, pro-European government" will be formed before 15th May-midnight, the deadline established by the Constitution after the general elections on 21st January last that did not allow a clear majority to emerge.

On 10th May the Grand National Assembly adopted a number of amendments to the Constitution including the election of the president by universal suffrage in two rounds for a five year term in office renewable once only. The reform was adopted by 376 votes in favour and one against. This project was presented by the ruling Justice and Development Party but it still has to be approved by the outgoing president Ahmet Necdet Sezer who in all probability will reject it. Parliament could overcome the veto but the president will have the final say by convening a referendum.

Ian Paisley (Democratic Unionist Party) announced on 8th May "an era of peace" in Northern Ireland after becoming the Prime Minister of a two-faith government. His Deputy Prime Minister is Martin McGuiness (Sinn Fein), a former IRA leader. The latter qualified the day as 'a moment in history ... one of the greatest steps forward that the process has witnessed in nearly 15 years." After four and a half years of waiting the Provincial Assembly was finally re-instated in the presence of Irish Prime Minister Bertie Ahern and his British counterpart Tony Blair.

On 7th May the European Commission published its annual report on the SOLVIT network which offers citizens and companies rapid and effective solutions to problems associated with an incorrect application of European legislation by national administrations. The Commission and the Member States created the SOLVIT network in 2002 to help to solve real problems in the single market. 467 cases were processed. 69% of the cases were submitted by citizens notably with regard to issues involving social security (23%), taxation (16%) and the recognition of professional qualifications (15%). 31% of the cases were presented by companies notably with regard to access to the market for products (8%), the provision of services and setting up as an independent (11%).