The Nationalist Party (PN) in power won the general elections in Malta on 8th March just edging ahead of its main rival, the Labour Party (MLP) led by Alfred Sant. Prime Minister Lawrence Gonzi's party won 49.34% of the vote (-2.45 points in comparison with the previous general elections on 12th April 2003) and 33 seats in Parliament, in comparison with 48.79% (+ 1.28 points) and 32 seats for the main opposition party, - 1,580 votes difference. This is the smallest gap ever recorded between the two parties since independence in 1964. In line with tradition turn out was high at 93%, slightly lower than the figure recorded in the last general elections in 2003 (- 2.9 points).

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The Dalloz publishing house has released the complete text of the Lisbon Treaty together with a presentation by Nicolas Sarkozy, President of the French Republic.

Around 50 million Italians are being called to ballot on 13th and 14th April next to renew the two Chambers of their Parliament - the Chamber of Representatives (Camera dei Deputati) with 630 members and the Senate (Senato della Repubblica), 315. These early elections have been convened due to the resignation of the President of the Council, Romano Prodi, on 24th January since he no longer held the majority in the Senate. MPs are elected by a proportional system within 26 constituencies. Senators are elected in regional constituencies. The Senate also comprises, apart from its elected members, some life senators. The latest polls forecast a protest vote against the ruling majority - in office for the last two years and victory for the opposition; however the gap between the right and the left has continually grown tighter over the last few weeks. The battle between Walter Veltroni, Democratic Party and Silvio Berlusconi,Centre- Right Freedom House Coalition, will be a hard one and the result of the vote is extremely uncertain.

Just as the euro has reached its highest level in comparison with the dollar the Robert Schuman Foundation invites you to consult the article by Jean-Claude Juncker, Prime Minister of the Grand-Duchy of Luxembourg and Chairman of Eurogroup, on "the Euro : success and challenges" in the "Schuman Report 2008 on the State of the Union" published by Lignes de Repères. This work reviews the issues at stake in the EU by means of maps and statistical data. It comprises a work of reference for all of those who want to know everything there is to know about the EU. There is also an article by French President Nicolas Sarkozy.

On 13th March the 27 Heads of State and Government supported the project for the Mediterranean Union initiated by France to strengthen co-operation between the EU and the States that border the Mediterranean Sea and who are not members of the EU. They invited the Commission to present the necessary proposals to the Council in order to define the modalities of what will be called "the Barcelona Process: Union for the Mediterranean", in view of the Summit rallying all the EU States and its southern neighbours that is to take place in Paris on 13th July.

The next round of the renewed Lisbon Strategy for growth and employment (2008-2010) was the focus of discussions during the European Council. The 27 European leaders re-iterated that the four priority areas approved during their meeting in the spring 2006 are still the mainstays of the renewed Lisbon Strategy.They invited the European Commission and Member States to increase the exchange of good practice as part of multilateral monitoring, notably taking advantage of the open co-ordination method, effective co-ordination within the euro area. The 27 European leaders also debated the rise of the euro against the dollar, after a presentation by Luxembourg Prime Minister and Eurogroup chairman, Jean-Claude Juncker. They said they were concerned about the spectacular ascension of the euro that reached a new record in the face of the dollar at 1.5651 on 13th March.

During an External Relations - General Affairs Council on 10th March the 27 Foreign Ministers discussed the state of play in the WTO Doha Development Agenda negotiations. They notably supported Commission initiatives that aim to take these negotiations forwards. The Council also looked into the humanitarian, political and economic situation in Zimbabwe which may prevent the convening of general and presidential elections planned for 29th March. Finally they debated the situation in the Western Balkans and notably developments since the proclamation of independence by Kosovo.

On 11th March MEPs adopted the report by Gabriele Albertini (PPE-DE, IT) 542 votes in favour, 79 against and 26 abstentions to improve the urban transport situation by tackling air and sound pollution. This report advises the reduction of gas emissions produced by the various modes of transport, to put an end to the almost total dependence on fossil fuels, to intensify the quest for renewable energies, to invest in the creatioin or renovation of infrastructures and in intelligent transport systems, to rethink urban structures to encourage sustainable mobility, to encourage intermodal transport and to develop interoperability.

On the 50th Anniversary of the European Parliamentary Assembly, created on 19th March 1958 the President of the European Parliament, Hans-Gert Pöttering reviewed Parliament's main developments and paid tribute to the founding fathers. The first president in 1958 was Frenchman Robert Schuman. Representing 493 million European citizens the Parliament has become a key player in European politics. Hans Gert Pöttering highlighted the role of the Lisbon Treaty and the Charter of Fundamental Rights "in favour of democracy and parliamentarianism within the EU," and the co-operation between the European Parliament and national parliaments.

The report by Lutz Goepel (PPE-DE, DE) adopted on 12th March by 510 votes in favour, 88 against and 80 abstentions approves the Commission's main communication guidelines on the Common Agricultural Policy (CAP) "health check". Most of the political groups said they were in favour of greater decoupling of aid that was started in 2003. Decoupling means that aid given to farmers is no longer linked to the volumes produced. This system encourages farmers to produce according to market requirements. Parliament did however reject the Commission's proposal in terms of further modulation. The CAP health check should allow the consolidation of reforms without reducing funds available under the first pillar, nor applying discriminatory capping to direct aid. It advises to take on board the particularities of regions that were experiencing problems and sensitive sectors such as breeding and greatly simplify rules for farmers.

On 11th March the European Parliament approved the creation of a European Institute for Innovation and Technology (EIIT) that may start work in the summer. "Innovation is where we really have to catch up: too often, our brilliant students and researchers do not reap the rewards of their work simply because there is no one to help them turn research results into commercial products." The institute will need an overall budget of 2.4 billion euros for the first six years, to be funded from a combination of private and public sources. On 18th December 2007 the EP and the Council agreed to revise the Multi-Annual Financial Framework 2007-2013 in order to ensure funding for Galileo and the EIIT and to provide 308.7 million euros from the Community budget for the EIIT.

The current EU-wide minimum rate of tax on diesel should be increased to match the current minimum rate for unleaded petrol, but no further highlights a consultative report by Olle Schmidt (ADLE, SE) adopted on 13th March. MEPs would also want to set a limit on further petrol and diesel tax increases in the Member States which already have the highest taxes. MEPs agreed with this in principle, but said the minimum taxes on diesel should rise more slowly, from the current level of 302 euros/1000 litres to the current petrol level of 359 euros/1000 litres by 2015 rather than 2012. In addition to this Latvia, Lithuania, Poland, Bulgaria and Romania should have until 2016 to reach the target.

On 11th March the European Parliament received the Estonian President. Toomas Hendrik Ilves, former MEP, delivered his view of the major challenges facing the EU in the future. Competitiveness is in his eyes one of these, likewise declining fuel stocks. Toomas Hendrik Ilves hopes for the establishment of a common energy policy. He highlighted the Lisbon Treaty "to take Europe forwards" and the importance of the neighbourhood policy," "given the differences between the EU and its neighbours in terms of economic well-being and political freedom". Finally he said he believed the terminology of "new" Member States no longer made sense saying that his country was now starting its fifth year as an EU member. "Today within the EU there are coalitions of interest, political parties but no coalition in terms of dates of accession," he added.

On 11th March the European Commission proposed to implement dissuasive sanctions on ships' captains and operators who are responsible for pollution at sea. "The project completes legislation on the protection of the environment by penal law," explained Vice President of the European Commission responsible for Justice, Franco Frattini. Punishment for "green crimes" now has to be approved by the Council and the European Parliament. If they come to agreement Member States will have six months to transpose the law into their national legislation. Infraction procedures together with fines may be implemented against them if they do not comply. The level of sanctions, left to the judgement of the Member States, will be monitored to ensure their equivalence within the EU and in order to "prevent some sanctions being too lax compared with those applied in neighbouring States."

On 11th March the European Commission called for a new approach to looking at the role and governance of European agencies. In recent years, using agencies to implement key tasks has become an established part of the way the European Union does its business. The communication calls on the European Parliament and the Council to give a new momentum to the need to develop a clear and coherent vision on the place of agencies in European governance. The Commission calls for the establishment of an inter-institutional working group to allow the key issues facing agencies to be set out as ground rules to apply to all.

On 12th March Italian economist Luisa Corrado received one of the five Marie Curie excellence prizes during the European Prizes Ceremony for Scientific Research. She was rewarded for her work on links between contentment and wealth. Other prize winners were Robert Nichol of Portsmouth and Valerie O'Donnell of Cardiff (UK) and Andrea Ferrar of Italy.

On 11th March the prohibition of the sale of lighters that do not have child security mechanisms came into force. The decision taken by the Commission adopted on 13th February 2007 helps to strengthen European consumer protection by banning the sale of lighters than can be dangerous for children as from 11th March. The marketing and import of these lighters were prohibited as from 11th March 2007 but companies had a year to get rid of stocks. The decision also requires Member States to ensure that ordinary lighters that are marketed in Europe are safe for children. The marketing of lighters that are attractive to children (fantasy lighters) has also been banned.

On 13th March the Bundestag, the lower chamber of German parliament started to examine the new European treaty of Lisbon. All parliamentarian groups except for "Die Linke" (far left) lauded the text's merits. In Germany the ratification procedure of the Lisbon Treaty demands a constitutional revision designed to provide German parliament with extended rights granted to it in the treaty. To be ratified the treaty will have to win a two-thirds majority in both chambers, the Bundestag and the Bundesrat. The government intends to complete the ratification of the text by 23rd May, a symbolic date since it was on 23rd May 1949 that the declaration of the Fundamental Law of the Federal Republic of Germany was proclaimed.

British Finance Minister, Alistair Darling reduced the government's growth forecast for 2008 on 12th March; this now only lies at 1.75-2.25% for 2007 due to the effects of the international financial crisis.

European public opinion is widely in favour of the CAP component that regulates how aid to farmers is distributed. Most (52%) believe that the increase in funding for rural development and the fact of giving aid directly to farmers instead of subsidising their products are a positive development. In addition to this an overwhelming majority of European citizens (between 85% and 88%) support the conditionality principle, whereby farmers see the money they receive reduced if they do not meet standards in terms of protecting the environment, the well-being of animals and the security of foodstuffs. 43% believe that guaranteeing reasonable prices for foodstuffs must be a political priority. Agriculture and the rural area continue to play a major role in the EU; 89% of European citizens say these are vital issues for the future of Europe.

According to figures published by Eurostat on 12th March in January 2008 compared with December 2007, seasonally adjusted industrial production1 grew by 0.9% in both the European Union and the Euro Area. In December 2007 production remained stable in both zones. In January 2008 compared with January 2007, industrial production rose by 3.8% in the euro area and by 3.5% in the European Union. In January 2008, among the Member States for which data are available, industrial production rose in ten, remained stable in the United Kingdom and fell in three. The highest increases were registered in Lithuania (+5.9%), Poland (+5.7%) and Slovakia (+4.6%), while the largest decrease was recorded in Portugal (-1.7%).

According to figures published by Eurostat on 14th March Euro area annual inflation was 3.3% in February 2008, up from 3.2% in January. A year earlier the rate was 1.8%. Monthly inflation was 0.3% in February 2008. European Union annual inflation was 3.4% in February 2008, unchanged compared to January. A year earlier the rate was 2.1%. Monthly inflation was 0.4% in February 2008. In February 2008, the lowest annual rates were observed in the Netherlands (2.0%), Germany, Portugal and Sweden (2.9% each), and the highest in Latvia (16.5%), Bulgaria (12.2%) and Estonia (11.5%).