The early general elections in Turkey are taking place on 22nd July to appoint the 550 members of the Grand National Assembly. The official campaign started on 15th July and will end on 21st. All polls declare there will victory for the Justice and Development Party (AKP). However they differ with regard to the percentage of votes that the Prime Minister's party might win. The only doubts remaining are about the extent of the victory (will he be able to govern alone?) and the number of parties that will take seats in Parliament. To be represented in the Grand National Assembly all political parties must put candidates forward in at least half of the country's provinces and win a minimum of 10% of the votes cast nationally, a very high threshold which is extremely damaging to the 15 million Kurds living in Turkey.

The 27 European Finance Ministers decided on 10th July have given their support to the candidature of Dominique Strauss-Kahn, former Finance Minister as Director General of the International Monetary Fund in succession of Rodrigo Rato, who is resigning from his post as from October next. The new British Finance Minister Alistair Darling was the only one to question openly the tacit rule which implies that the position of the director general of the IMF should go to a European whilst the chairmanship of the World Bank is granted to an American.

Whilst the EU and the USA are on the verge of presenting a revised resolution to settle the final status of Kosovo as part of a UN solution, the EU High Representative for the CFSP, Javier Solana met with President Fatmir Sejdiu and Kosovar Prime Minister Agim Çeku on 11th July. The latter asked the EU to establish a final date for the vote by the UN Security Council on a resolution for the province's independence. He said that if the issue was not settled within the given time Kosovo would declare unilateral independence. "We would prefer the UN's route (...) but we suggest that the UN establish a timetable or that we establish a date," declared Agim Çeku. Javier Solana is working to bring about a UN solution in order to provide a status to Kosovo within the best possible time.

On 10th July MEPs adopted a compromise on the 2nd community action programme with regard to healthcare for 2007-2013. This compromise negotiated by the Environment and Public Healthcare Committee rapporteur, Antonios Trakatellis (PPE-DE, EL) will raise the budget to 365.6 million euro if the programme starts on 1st January 2008.

On 10th July MEPs adopted a report which insists on the need to establish a joint energy policy. They plead in favour of dissociating production/supply and the transport of electricity. In addition to this regulated tariffs and aid for non-renewable energy should be phased out including the promotion of national "champions". According to the report by Alejo-Quadras (PPE-DE, ES), the separation of legal ownership of energy transport networks and other activities (production, extraction, distribution and marketing) is "the most efficient means to promote non-discriminatory investement in infrastructures, fair access to a network for new comers and market transparency.

MEPs have backed a EU-wide strategy to protect critical infrastructure against terrorist attacks proposed by the European Commission in 2006, whilst stressing that responsibility for protecting critical infrastructure still rests primarily with Member States and private stakeholders. The approach takes into account risks of human origin, technological threats, natural disasters and structural threats. However priority should be given to the terrorist threat. According to this project presented in 2006 the Member States are obliged to identify and designate existing infrastructure as European Critical Infrastructure (ECI), according to sector-specific criteria established by national governments, the Commission and stakeholders. Once the list is ready, the directive would oblige owners and operators of the ECIs to establish an "operator security plan", with permanent and graduated security measures in the event of a terrorist attack.

On 11th July MEPs approved the report to open up normal postal services up to competition by 2011. A wide majority (512 votes in favour, 155 against, 13 abstentions) believed that this opening to the competition with regard to letters under 50 grammes (the last stage in the total liberalisation of the postal services) should be concluded by 31st December 2010. Letters under 50g represent nearly half of the post for a market of 90 billion euros involving nearly 5 million people in the Union.

Portuguese Prime Minister José Socrates presented the priorities of the Portuguese Presidency to MEPs on 11th July. He insisted on the treaty which will be the focus of work by the IGC as from 23rd July, the aim being to come to an agreement during the European Council on 18th and 19th October next. Parliament gave its go-ahead for the IGC's mandate 526 votes in favour, 138 against, 26 abstentions. The report by Jo Leinen (PSE, DE) notes that the new treaty includes a major part of the Constitutional Treaty even though the Union's cohesion may be weakened by dispensations granted to various Member States. This report on the reform of the treaties comprises the basis of an opinion by the European Parliament. Elmar Brok (PPE-DE, DE) Enrique Baron Crespo (PSE, ES) and Andrew Duff (ADLE, UK) were appointed to be part of the IGC.

On 11th July MEPs adopted a report which will oblige airlines to publish the true prices of plane tickets and not "attractive" tariffs which do not include taxes and addtional fees. Parliament would like to put an end to airline practices whereby prices are published exclusive of their taxes, fees and other rights. "Like other consumers passengers have a right to price transparency," stresses the report by Arunas Degutis (ADLE, LT).

Although MEPs were in favour of the planned measures to extend American law with regard to the protection of private life (US Privacy Act) to data about Union citizens they believe that improvements can still be made. While recognising the difficult conditions under which the negotiations took place, MEPs regret that the EU-US agreement for the transfer of Passenger Name Records (PNR) is "substantively flawed", in particular by "open and vague definitions and multiple possibilities for exception." The fact that sensitive information with regard to ethnic origin, political opinions, sex life of the individual, etc. will be also made available and can be used by the US Homeland Security Department in exceptional cases is a source of concern on the part of MEPs who adopted a resolution on 12th July.

On 12th July MEPs approved a report on the progress made by the former Yugoslav Republic of Macedonia (FYROM) on the road to joining the EU. They welcomed progress made but warned of a need to continue work notably with regard to the environment, employment, training and minority rights. The dispute with Greece with regard to the country's name is still the focus of concern. In addition to this MEPs adopted a report planning for the Ukraine's accession in the long term if the country firmly commits itself to the road of democracy and reform. They are callig on Ukrainian leaders to resolve the present crisis peacefully, to free the political world from economic rule and to eliminate corruption; they also need to guarantee the independence of justice and to integrate Ukraine's energy markets with those of the EU to a greater degree.

On 11th July MEPs debated with the ECB governor Jean-Claude Trichet and the Eurogroup President, Luxembourg Prime Minister, Jean-Claude Juncker. On this occasion the latter said that "a strong euro would not endanger growth." The next day they adopted two reports in answer to the ECB 2006 and 2007 Reports on the Euro Zone by the Commission. MEPs insist on the need to proceed with caution with regard to any increase in interest rates to avoid compromising growth and believe it vital "that wages increase in line with developments in productivity in order to allow for job creation in a non-inflationary environment."

On 11th July the Commission adopted adopted a Green paper on bio-preparedness. The aim of the paper is to stimulate a debate and launch a process of consultation at European level on how to reduce biological risks, and to enhance preparedness and response capabilities. Cross-border, multi- agency and cross-sectoral co-operation is critical to any effective preparedness strategy, whether in the prevention of disease outbreaks or responding to them. This Paper is relevant for a broad spectrum of stakeholders, including national authorities responsible for risk prevention, investigation and response, human, animal and plant health, customs, civil protection, law enforcement authorities, the military, bio-industry, epidemiological and health communities, academic institutions and bioresearch institutes. The consultation will remain open until 1st October 2007, and all responses will be published online unless otherwise requested.

On 10th July the European Commission proposed a directive entitled 'Solvency II', which will reform the monitoring of the insurance sector. Insurers will now be required to take account of all types of risk to which they are exposed and to manage those risks more effectively. In addition, insurance groups would have a dedicated 'group supervisor' that would enable better monitoring of the group as a whole. The Commission aims to have the new system in operation in 2012. This proposal is part of the Commission's Better Regulation strategy and its firm commitment to simplify the regulatory environment and cut red tape. It will mean replacing 14 existing directives with a single directive. The proposal now passes to the European Parliament and Council for consideration.

On 10th July the European Commission issued its formal opinion before the opening of the Intergovernmental Conference planned for 23rd July. Entitled "Reforming Europe for the 21st Century" the Commission opinion looks at how a Reform Treaty respecting the mandate agreed at the last European Council will answer the strategic political demands facing Europe today. The Commission opinion sets out the benefits that a Reform Treaty will bring to citizens. The Commission welcomes the convocation of the Intergovernmental Conference and underlines that Europe needs a Reform Treaty to be agreed and ratified ahead of the June 2009 European elections.

Consumers will benefit from a new clearer labelling regime on sunscreen bottles being phased in this summer. The new labels - including a new UV-A logo or seal on bottles and a ban on misleading terms such as "sunblocker" or "total protection" - are a response to a Commission recommendation on sunscreen products adopted in September 2006. As well as explaining the new sunscreen labelling system, the Commission, through an information campaign in partnership with Member States is seeking to raise awareness that there are several reasons why sunscreen products should be only one out of a number of measures which are necessary to protect from the UV radiation of the sun. The improved labelling regime is being phased in and will appear on 20% of sunscreen bottles this summer.

In a communication published on 12th July the European Commission has put forward measures which would simplify the business environment for EU companies in the areas of company law, accounting and auditing. The proposed measures would remove or reduce a range of administrative requirements that are considered outdated or excessive, such as simplifying disclosure requirements for companies and for branches;further reducing reporting and auditing requirements for small and medium-sized enterprises. All interested parties are invited to comment on the proposals by mid-October 2007.

On 12th July the Commission adopted a proposal aiming to extend the Erasmus Mundus programme to university grants with third countries in order to make European higher education more competitive and more attractive. Launched in 2004 Erasmus Mundus aims to promote higher education across Europe as a centre of excellence in the world. More than 2,300 students have taken part in the programme and more than 1,800 have just been chosen to start their studies in Europe as from September this year. Over five years 950 million euros will be dedicated to this new programme entitled Erasmus Mundus II.

The new regulation on transboundary shipments of waste which came into application from 12th July on aims to ensure that waste is properly handled from the time it is shipped to the time it is disposed of or recovered at destination. To achieve its objectives the regulation reinforces and clarifies the current legal framework for waste shipment within the EU and with non-EU countries. The regulation also bans the export of hazardous waste or waste for disposal to certain countries.

On 11th July the Court of Justice agreed that French company Schneider Electric should receive compensation for abusive annulment of its merger with the company Legrand in 2001. The court said that "the grave and manifest failure by the Commission to have regard to Schneider's rights of defence constitutes a sufficiently serious breach of Community law to confer such a right" to justify compensation for any damages incurred. Schneider is claiming 1.66 billion euros. The Commission has two months to appeal.

On 12th July the German government published a national integration plan comprising 400 measures to improve the integration of the fifteen million foreigners living in the country. 750 million euros will be made available each year to enable notably the acquisition of the German language: integration lessons planned since 2005 will rise from 600 to 900 hours and the illiterate and the young are due to benefit from a specific programme. In addition to this a network of "educational tutors" who will take care of migrants' children in school or during their apprenticeship will be established. A programme entitled "a second chance," should also enable the re-integration of young people who have left school: the government is to launch the initiative with the Chamber of Commerce and Industry to achieve up to 10,000 new apprenticeship positions by 2010 for young people of foreign origin. All of these measures will be assessed in terms of their results in the Autumn of 2008.

The international network Railpol that brings together the various police forces on the European railways undertook international action on 10th July with the aim of fighting against the theft of metals from the railways. On an initiative by the Italian railway police this action was undertaken together with the police services of nine other countries: Austria, Belgium, Germany, the Netherlands, Romania, Slovakia, Spain, the UK and Italy. In all 2505 metal depots were checked on across all of the various participating countries. This operation led to the arrest of 113 people and to the discovery of around 63 tonnes of stolen metal to a total value of around 205,000 euro.

French Foreign and European Affairs Minister, Bernard Kouchner travelled to Belgrade and Pristina on 12th and 13th July. He indicated that Serbia's integration into the EU should be preceded by a settlement of the problem in Kosovo. He recalled that Frnace supported Serbia's rapid integration into the Union and yet he said that this did not mean "Serbia could enter the Union with ongoing ethnic conflicts and religious turmoil." He supported the principle of new negotiations on the Serb province's status which hosts an Albanian majority. "If we cannot settle this, we shall return to Martti Ahtsaari's plan," he declared.

The High Representative for the CFSP, Javier Solana was received on 12th July by the French President Nicolas Sarkozy. The meeting mainly focussed on the issues of the status of Kosovo, the peace process in the Middle East, the Iranian nuclear issue and the situation in Darfur.

On 11th July French Prime Minister François Fillon held talks with European Commission President José Manuel Barroso and Competition Commissioner Neelie Kroes. Discussions focussed on energy policy, the protection of the climate, the Lisbon Strategy, the Union's project for the Mediterranean.

On 14th July and for the first time the National Day in France was celebrated under the colours of Europe. French President Nicolas Sarkozy together with the main European leaders welcomed the armies of the EU who paraded alongside French troops. Together with Portuguese Prime Minister José Socrates, who is ensuring the presidency of the Union, the President of the European Parliament Hans-Gert Pöttering, European Commission President José Manuel Barroso and High Representative for the Common Foreign and Security Policy, Javier Solana - Mr Sarkozy listened to the Robert Schuman Declaration of 9th May 1950 which was delivered by a young man."The Hymn to Joy", the European anthem closed the ceremony.

The blue, star-decorated flag of the EU was raised on 13th July over the French Foreign and European Ministry where it will now fly on a permanent basis. The Quai d'Orsay is the first French ministry where the European flag will remain permanently alongside the traditional three-coloured French flag. Other ministries might follow this example.

The report by the Committee on Iraq chaired by Lord Paddy Ashdown who was the High Representative for the International Community in Bosnia-Herzegovina from May 2002 to January 2006 believes that a shift in British policy was inevitable after the failure of the "over ambitious initial idea" of the coalition led by the USA."There is now no easy option in Iraq, only painful ones (...) The British government must therefore redefine its objectives," warned the Committee. Its main recommendation is for the UK to "maintain and support" Iraq's territorial integrity, promote mutual regional aid for the country's reconstruction and prevent Iraq from becoming a base for Al-Qaïda." To do this "the UK should focus its military efforts differently, progressively stop offensive military operations and finish the training programme" of the armed Iraqi forces.

According to revised estimates published by Eurostat on 12th July Euro area and EU27 GDP both grew by 0.7% in the first quarter of 2007, compared to the previous quarter. In the fourth quarter of 2006, growth rates were +0.9% in both the euro area and the EU27. In the first quarter of 2007 and among the Member States for which seasonally adjusted GDP data are available, Ireland (+4.7%) recorded the highest growth rate, followed by Greece (+3.2%), Latvia (+2.6%), Slovakia (+2.4%), Estonia and Lithuania (+2.3% each).

Seasonally adjusted industrial production increased by 0.9% in the euro area in May 2007 compared with April 2007. In the EU27 output rose by 0.7% in May. In May 2007 compared with May 2006, industrial production rose by 2.5% in the euro area and by 2.7% in the EU27.

On 10th July the European Commission published the 2006 annual report on the protection of the Communities' financial interests and the fight against fraud. This year, the Commission's report on the protection of the Communities' financial interests and the fight against fraud highlights the topics of risk analysis and risk management, debarment databases and early-warning/whistleblower tools. The report sets out the most significant measures taken in 2006 by the Member States and the Commission to improve prevention and fight against fraud. A statistical evaluation of all irregularities communicated to the Commission by Member States shows that the total number of irregularities increased for agriculture, cohesion and pre-accession funds, and decreased for own resources and structural funds. In spite of well over 12.000 irregularities notified, further progress in speed and quality of transmission remains an objective.

On 9th July the EU's Anti-Fraud Office (OLAF) presented its 2006 activity report. The volume of information received by the Office has constantly increased from 529 new items in 2002 to a new high of 826 in 2006. In 2006 OLAF reinforced its strategy to focus on major, complex fraud cases, both within the European institutions or agencies and in sensitive areas of the EU budget. While the preventive effect of OLAF action cannot be measured in figures, in 2006 a sum exceeding 450 million Euros was recorded as recovered in the context of OLAF cases. The total financial impact of all cases investigated by OLAF since its creation in 1999 is estimated at over 7.3 billion Euros.

On 12th July the European Commission published a report which focuses on the respective work timetables envisaged by national authorities of Canada, Japan and the USA for the convergence between International Financial Reporting Standards (IFRS) and their national Generally Accepted Accounting Principles (GAAPs) as applied in the EU. The report also contains a first review of convergence work in other major areas and welcomes the progress achieved by Japan, Canada, China and India.

According to a report published on 12th July by the Commission although European regulations with regard to electronic communications has brought about significant progress both to the population and companeis national and European regulation authorities still have to overcome several major challenges. The report presents the results of 600 regulatory decisions sent to the Commission by national regulation authorities. The mechanism they use to assess these decsions led to more coherent market analyses and greater transparency. It made it possible to ensure that only markets that have to be competitive were regulated.

On 13th July the Joint Research Centre (European Commission) published a report on the consumption of electricity and the trends with regard to energy efficiency in the EU. The report, Electricity Consumption and Efficiency Trends in the Enlarged European Union, highlights the key findings of an in-depth 2006 survey on electricity consumption in buildings in the enlarged EU, and the market share of energy-efficient appliances and equipment. It calculates future potential savings based on currently available technologies. According to the report, electricity consumption in the tertiary (service) sector increased by 15.8%, and industry consumption by 9.5%. The average consumption for a single household in the EU-25 was 4098 kWh in 2004. This could be reduced by 800 kWh per house per year, or about 20 % less electricity consumption in each household, if replacement of existing appliances and equipment and a full phase out of incandescent lighting were to be actively promoted in all EU Member States.