As the international financial crisis rages the Chairman of the Robert Schuman Foundation, Jean-Dominique Giuliani has published an editorial on his internet site in which he shows that there is just one matter of urgency: "regaining confidence". EU Member States must act together with the support of and in liaison with the European Central Bank. In his opinion it is during a period of crisis like this that it is vital to show the credibility and usefulness of the construction of Europe. He also gave an interview on 3rd October, just before the European meeting, to the French magazine, L'Express.

The general elections organised on 28th September in Belarus which the EU and the USA had set as a test to see how committed President Aleksander Lukashenko was to changing his regime, did not meet up to expecations. The election was marred by massive fraud: pressure on voters, refusal to inform observers, lack of ballot boxes security. One quarter of the electorate (26%) chose to vote early which seems to have opened the way to various infringements. Result: the opposition parties did not win one seat. According to the official figures these candidates won under 1% of the vote!

The Robert Schuman Foundation together with the SDA and the CEIS are jointly organising the Security and Defence Days 2008 in Brussels on 3rd and 4th November. This high level conference rallies players from the civilian and military environments to discuss and exchange ideas on the future of the European Security and Defence Policy (ESDP). This year the conference will look into the effectiveness of the present European security strategy and the future of the ESDP. It will also focus on industrial co-operation in the areas of aerospace development, maritime surveillance and cyber threats.

21 parties are running in the general elections that will take place on 12th October in Lithuania. 70 MPs will be elected by proportional representation. The other 71 members of the Seimas, the only Chamber in Parliament will be appointed by a majority system and therefore elected in the second round of voting on 26th October except for those who win an absolute majority in the first round. According to the most recent polls five parties are certain to rise above the 5% threshold of votes cast in order to be represented in the Seimas: the Social Democratic Party (LSP), the Homeland Union-Conservatives-Christian Democratic Party (TS/LK), For Order and Justice (TT), the Labour Party (DP) and the Farmers' Union (LVLS). A referendum will also be organised on 12th October on the continued running of the nuclear power plant Ignalina.

Since 1998 the town of Blois has organised an historical meeting. This event is taking place between 9th and 12th October and is offering a debate on Europe. The Chairman of the Robert Schuman Foundation Jean-Dominique Giuliani will be speaking on 11th October on the theme of "L'Europe puissance: projet, mythe ou réalité" together with Pascal Boniface, director of IRIS and Hubert Védrine, former Foreign Minister.

On 1st and 2nd October the 27 Defence Ministers met informally to take concrete steps towards European Defence. They decided to continue the EUFOR operation in Chad and to plan an EU naval operation against piracy off the coasts of Somalia. In response to increased military requirements they agreed to put together a multinational air transport fleet as well as a European aero-naval group, to modernise helicopters, to establish new military observation capabilities and to undertake arms research programmes. These various projects should be adopted by the end of the year. They also discussed the joint officer training programme that takes inspiration from ERASMUS.

On 29th September during the 9th Summit between the EU and India leaders said they hoped to correct the imbalance in trade relations between the EU and India. They notably approved a revised joint action plan extending the 2005 strategic partnership to new areas, a joint working programme on energy, clean development and climate change, a horizontal agreement in the area of civil aviation, and the launch of a European centre for companies and technologies in India, which will support inter-company co-operation and co-operation in research areas in EU and India. They spoke of the signature of a free-trade agreement. Whilst the EU represents India's leading trade partner with 60 billion euro trade in goods and service last year, India is only its 9th trading partner. Indian Prime Minister, Manmohan Singh declared that the agreement may be concluded by the end of 2009.

On 4th October a meeting was held in Paris between four heads of State and Government (Germany, France, Italy, UK) which sit in the G8 together with Luxembourg Prime Minister, Eurogroup Chair Jean-Claude Juncker, European Commission President José Manuel Barroso and the Chair of the European Central Bank, Jean-Claude Trichet. The heads of State promised to "work together within the EU as with their international partners." They spoke of the flexibility of controlling state aid and in the application of the Stability Pact and for new European rules with regard to credit rating agencies and the security of savings. Finally they called for an international summit in response to the financial crisis. The conclusions of this meeting will be looked into by the ECOFIN Council on 7th October and by the European Council on 15th and 16th October.

On 29th and 30th September during the 2nd Summit on Equality organised by the French presidency and the European Commission 400 participants representing national and European authorities, NGO's, unions and companies reviewed present levels of discrimination and looked into tools enabling the improvement of equality between citizens. The draft directive adopted by the European Commission in July may embody progress in the present legal context. The commitment of all players as well as the implementation of a support policy appear to be necessary. The signature of voluntary charters by companies reflecting social diversity was deemed to be an example to follow.

On 1st October the European Commissioner for Competition, Neelie Kroes said that the European Commission had approved the plan to save the bank, Bradford and Bingley, 24 hours after the British government gave notification of its intentions; this was thanks to information provided by the Commission during negotiations. She explained that although the plans were part of the vital solutions to the financial crisis the Commission would continue to look into them as part of the rules with regard to State aid. The Commission has now opened an indepth inquiry with regard to public funds delivered to the German bank, WestLB since February 2008. It also insisted on the need for governments not to act unilaterally but to inform the Commission of their plans to save financial institutions. On 2nd October, the Commission also approved the plan to save German bank Hypo Real Estate Holding AG.

On 2nd October the European Commission launched a new Internet site "financial system transparency" which enables European citizens free access to all data relative to the beneficiaries of EU funds directly managed by the Commission and its executive agencies in areas such as research, education, culture, energy, transport as well as aid to third countries. For example internet users can see the total amount of funding given to the Foundation in 2007. In paraellel to this Member States must also set up sites publishing data relative to agricultural aid beneficiaries by April 2009. This internet site is part of the European initiative towards transparency launched by the Commission in 2005.

On 3rd October the European Commission published two draft proposals aiming to enable women to improve work-life balance. The first proposal suggests the extension of the minimum length of maternity leave from 14 to 18 weeks. The second will enable women be self-employed and for farmers' wives also to enjoy maternity leave. The Commission also published a report on childcare services in the 27 Member States that reveals the inadequation of services and parents' needs which is still an obstacle to women's employment.

On 3rd October the European Commission confirmed the departure of Peter Mandelson and announced his replacement by Catherine Ashton. "The Commissioner for Trade Peter Mandelson handed in his resignation to the President of the Comission, José Manuel Barroso" in order "to accept the invitation on the part of the UK Prime Minister to join his government," indicated the Commission in a press release. British Prime Minister Gordon Brown "has appointed Baroness Catherine Margaret Ashton" to replace Peter Mandelson until the end of the present European Commission mandate in November 2009. She will be responsible for the same portfolio, Trade. With this appointment the number of women commissioners totals 10 out of 27.

On 29th September the Commission completed the strategic planning of community financial aid granted over the period 2008-2010 to candidate and potential candidate countries: Croatia, Turkey, Macedonia, Albania, Bosnia-Herzegovina, Montenegro, Serbia and Kosovo. This financial support aims to help these countries reform and develop their political system as well as their economy to enable them to fulfil their European aspirations. Over the period 2008-2010 the total amount of financial aid provided by the EU as part of the Instrument for Pre-Accession Assistance (IPA)totals 4.471 billion euro.

On 2nd and 3rd October the 27 Employment Ministers held a policy debate on the draft directive relative to the implementation of the principle of equal treatment irrespective of religion or convictions, disability, age or sexual orientation presented by the European Commission. In this respect Member States would like to see more ambitious measures with regard to the fight against discrimination associated with dissability. They said they were pleased with the progress made in the revised directive text on European Works' Councils which notably introduces principles relative to cross-border information and consultation between workers. Finally they agreed to make 2010 "the European Year for the Fight against Poverty and Social Exclusion."

Following the disappointing result achieved by the CSU (Social Christian Union) in the regional elections in Bavaria on 26th September, Chairman Erwin Huber resigned on 30th September - this will be effective as from 25th October in Munich during an exceptional congress. Horst Seehofer, Agriculture and Consumption Minister in Angela Merkel's government is given as favourite to succeed him as chair of the Bavarian party. Günther Beckstein, Minister-President of Bavaria also resigned on 1st October after only one year as governor of this Land. The two leaders are therefore suffering the direct consequences of a historic disaster when their party lost its absolute majority in the regional elections; it had held the dominant position in Bavaria for the last 46 years. It won 43% of the vote in comparison with 60.70% five years ago.

The German government is to provide a State guarantee to all individual savings said Finance Minister spokesperson Torsten Albig on 5th October. German Chancellor Angela Merkel also guaranteed that the savings of small "shareholders" were safe thereby trying to prevent any panic on the part of the population. Until now the State guarantee rose to 20,000 euro maximum for private savings. Now it will be unlimited. In addition to this the government and the banking sector agreed on 5th October to provide a 50 billion euro credit line to prevent the bankruptcy of Hypo Real Estate, Germany's fourth biggest bank, said the Finance Minister.

German Finance Minister, Peer Steinbrück is expecting a balanced public budget in 2008 in spite of the world financial crisis according to the weekly Spiegel published on 6th October. He made this forecast in a six monthly report sent to the European Commission at the start of October. Last spring Berlin planned for a 0.5% GDP public deficit in 2008. But since then "the financial situation in Germany has become distinctly better." "Contrary to our expectations the uptrend is continuing as it did last year," when the public budget which brings together Federal State, regional, communities' and social security funds was already balanced. The effects of the financial crisis had already been taken into account in the forecast and the share of GDP debt is to rise to 64.7% in 2008 versus 65.1% in 2007.

The Austrian government will decide on 8th October about an increase in the State guarantee of bank savings and public savings products in the ilk of the German example. This initiative was made public during an TV interview on the channel ORF. The decision will be taken in the council of ministers on 8th October - it was approved by Social-Democrat Chancellor Wolfgang Gusenbauer, the Central Bank chairman (OeNB), Ewald Nowotny and the Financial Market Regulation Authorities (FMA).

The French bank BNP Paribas will take control of the insurance bank Fortis in Belgium and in Luxembourg. BNP Paribas will hold 75% of Fortis Bank for a total of 14.7 billion euro. The Belgian State will become BNP Paribas' leading shareholder with 11.7%. This acquisition makes BNP Paribas the first savings bank in the euro area.

On 24th September the Economic and Social Council presented its communication on "Achieving the Lisbon Strategy: the Economic and Social Council's Contribution to the preparation of the national reform programme 2008-2010." Anticipating government consultation on the conception of the National Reform Programme between 2008-2010 the ESC stresses the importance of learning from the troika of the French, Czech and Swedish Presidencies to improve European governance, foster growth and to overcome the international financial crisis.

On 2nd October Dutch Prime Minister, Jan Peter Balkenende was French President Nicolas Sarkozy's guest at the Elysée. The two leaders discussed the present financial crisis and the European Council of 15th and 16th October. After the interview Jan Peter Balkenende said that no "American" salvage plan is being drawn up in Europe but that it is vital for politicians from the EU Member countries to come together for discussion.

British Prime Minister Gordon Brown announced on 3rd October that he was setting up a "National economic council" comprising the main ministers; it will be responsible for co-ordinating support to the population and businesses in the present economic situation. This announcement follows the one made about increasing protection of depositors' savings if a bank goes bankrupt; the ceiling rises from £35,000 per client to £50,000 (63,000 euro) and to £100,000 for a joint account.

Russian Prime Minister Vladimir Putin met his Ukrainian counterpart Yulia Timoshenko in Moscow on 2nd October. The two leaders came to a protocol agreement on Russian gas deliveries to the Ukraine. "The parties confirmed their good will to transfer gradually over a three year period over to market prices," announced Yulia Timoshenko adding, "the Ukraine has promised to guarantee the uninterrupted, long term transit" of Russian gas to European consumers. She said that Moscow and Kiev were renouncing all intermediaries in the delivery of Russian gas in the Ukraine. These deliveries which until now were undertaken by an untransparent Russo-Ukrainian company, RusUKrEnergo, much to the discontent of Kiev will now be undertaken by the Ukrainian gas company Naftogaz and the Russian giant Gazprom as from January 1st 2009. With regard to this on September 8th the Foundation published a study which looks into Russo-Ukrainian gas relations.

The Serb government and the Italian group FIAT signed an agreement in Belgrade on 29th September with regard to the creation of a joint venture in the car factory Zastava, planning for investments to a total of 700 million euro. FIAT and the Serb Economy minister said that the joint venture 67% of which is held by the Italian group - 33% by the Serb government, acquires the property at the Zastava car factory in Kragujevac. The agreement was signed before the press by the Deputy Prime Minister and Serb Economy Minister Mladjan Dinkic and FIAT delegate administrator Sergio Marchionne, together with Italian Foreign Minister Franco Frattini and the Serb President and Prime Minister, Boris Tadic and Mirko Cvetkovic.

According to figures published on October 1st the euro area unemployment level increased slightly from 7.4% in July 2008 to 7.5% in August ie a return to the level of August 2007. As for the EU the unemployment rate remains unchanged in comparison with July at 7.1%. Amongst the Member States the highest decrease is in Poland (from 9.2% to 6.7%), the highest rise was in Spain (8.3% rising to 11.3%).

According to figures published by Eurostat on 2nd October the industrial production price index dropped by 0.5% in the euro area and by 0.7% in the EU in August 2008 in comparison with July 2008. This decrease can be explained by the drop in prices in the energy sector. However in August 2008 compared with August 2007 industrial production prices increased by 8.5% in the euro area and by 10.4% in the EU.

The German Society for Foreign Policy has published a study entitled 'Russische Wirtschaftpolitik zwishcen Staat und Markt' (Russia's Economic Policy: between State and Market). As the international financial crisis rages what is the strategy privileged by the Russian leaders to reform their economy? In spite of a new trend given by President Medvedev Russian economic policy will not change radically. The political culture and industrial structure provide the Russian state with a major role in the economy.

The German Institute fro International Affairs and Security has published a study on foreign policy perspectives for the EU. Author, Annegret Bendiek believes it vital to draw up a coherent common foreign and security policy. Because of the difference in interests between Member States (Atlantism, relations with Russia, neighbourhood policy, Union for the Mediterranean etc ...) she believes it vital to encourage the creation of small groups, notably for the renewal of co-operation between France, Germany and Poland as part of the Weimar Triangle.

The October issue of "The World Today" published by Chatham House is dedicated notably to the financial crisis. It also focusses on relations between Georgia and Russian, South Africa, the food crisis and the international treaty on the arms trade.

The Strategic Analysis Centre has published a paper on "Le modèle social européen est-il soluble dans la mondialisation?" Authors Yves Chassard and Jean-Louis Dayan believe that there is a social model specific to Europe typified by a high level of protection against major social dangers and of employment. They reject the idea that globalisation will destroy the basis of a European social model but stress that "flexicurity" is now the new goal.

The CEPS has published a paper under the guidance of Johan Swinnen entitled "The Perfect Storm: The Political Economy of the Fischler Reforms of the Common Agricultural Policy". The eleven articles by economists and political experts analyse the reforms made to the Common Agricultural Policy implemented by European Agriculture Commissioner Franz Fischler between 1994 and 2005.

The third edition of the "Rome Cinema Festival" (22nd-31st October) will give preference to European cinema productions particularly the French and Italian film which comprise the most of the 21 films competing.