The Homeland Union/Conservatives (TS-LK) which lies to the right of the political scale and led by Andrius Kubilius won in the first round of the Lithuanian general elections on 12th October. It won 19.55% of the vote. As it is often the case in the Baltic States a new party, the National Revival Party, was the source of surprise clinching second place and 15.11% of the vote. Both parties came out ahead of For Order and Justice (TT), a populist party led by former President of the Republic (2003-2004), Rolandas Paksas, which won 12.73% of the vote and the Social Democratic Party (LSP) led by Prime Minister Gediminas Kirkilas, which won 11.76% of the vote. Finally the Labour Party(DP) created in 2003 by Russian billionaire, Viktor Ouspaskitch and winner of the general elections on 10th and 24th October came fifth with 9.04% of the vote.

The 30th world conference on data protection organised for the first time by the French (CNIL) and German (BfDI), authorities will take place in Strasbourg between 15th and 17th October next. It will focus on the theme of "Protecting Private Life in a Borderless World". Jean-Dominique Giuliani, chairman of the Robert Schuman Foundation will speak on 16th October in a session entitled "Digitally Assisted Man: Digital Angel or Devil?"

Seven candidates will be running against each other on 15th October during the presidential election in Azerbaijan: Ilham Alyev, outgoing President and leader of the New Azerbaijan Party (YAP); Igbal Agazade, chairman of Umid (Hope); Fazil Gazanfaroghlu, chairman of the Great Creation Party; Gudrat Hasangukiev, chairman of the Popular Front of United Azerbaijan; Hafiz Haciev chairman of the Musair Musavat Party; Fouad Alyev, chairman of the Liberal Democratic Party; Gulamhusein Alibayi (indepdendent) has just founded Aylindar (Intelligentsia). According to the most recent poll by ELS, 86.3% of the electorate intends to vote for the outgoing president, Ilham Alyev. The other six candidates are due to win only a few of the votes.

On 17th October the Robert Schuman Foundation and the Fondazione Spadolini Antologia are organising a Franco-Italian seminar dedicated to the results of a year's political life in France and Italy and to the Union for the Mediterranean project.

As part of the French Presidency of the European Union, the Embassy of France in Romania together with the Romanian Foreign Office, the European Commission, the Robert Schuman Foundation and the French Institute of Romania are organising a seminar on 14th October in Bucharest "On the Black Sea, the European Union's New Border" notably with Lazar Comanescu, Romanian Foreign Minister and Henri Guaino, Special Advisor to the President of the French Republic in attendance.

On 8th October the European Central Bank (ECB) decided to decrease its main lending rate from 4.25% to 3.75%. This surprise decrease of half a point was undertaken in co-ordination with five other major central banks (the Bank of Canada, the Bank of England, the American Federal Bank, the Bank of Sweden and the National Swiss Bank), which did the same thing in an attempt to restore confidence in the markets and to ensure monetary liquidity. The Bank of Japan also expressed its support of these monetary policy measures.

In a speech to the European Parliament on 8th October the European Commission President José Manuel Barroso re-iterated his appeal for a co-ordinated response to the financial crisis whilst acknowledging that action had been taken nationally according to the logic that "we are a union of States and not just one State." He announced the establishment of a high level group responsible for drawing up a long term plan to regulate the financial markets; this group will be chaired by Jacques de Larosière, former IMF director and former governor of the Bank of France.

On 9th October MEPs adopted the initiative report by Ieke van den Burg (PSE, NL) and Daniel Dăianu (ADLE, RO) 565 votes in favour, 74 against and 18 abstentions on the supervision of the financial markets. They exhort the Commission to put forward proposals to improve reglementation with regard to European financial services and agreed on the joint principles that must govern the risk management mechanisms; they drew up recommendations for the "Lamfalussy Committees" that are responsible for ensuring co-operation between national monitoring authorities and for applying community directives coherently. Recommendations comprise the consolidation of the legal base of the surveillance structure as well as the role played by the European Central Bank System. They believe that greater transparency of data on financial products and the securitisation process together with the harmonisation of savings guarantees are vital.

On 8th October British Prime Minister, Gordon Brown announced a series of government measures designed to support the financial and banking system and to attenuate the fears of both private parties and companies. This financial stability programme comprises three main measures. The Bank of England will inject 200 billion pounds into the system by means of a special liquidities process to improve monetary flow; it is to help the banks raise up to 50 billion pounds by means of fund raising to improve the long term health of the system; it will provide guarantees of up to 250 billion pounds to encourage inter-bank loans. On 13th October the British government announced that it was to inject capital into the RBS, HBOS and Lloyds TSB banks to a total of 37 billion pounds (46.6 billion euro), as part of its bank sector rescue plan announced one week ago.

On 11th October the G7 Finance Ministers, central bank governors as well as the directors of the International Monetary Fund and the World Bank came to agreement on a five point action plan drawn up in response to the financial crisis. The G7 has called for the implementation of as many measures as possible to avoid bankruptcies, to release the loan system and to boost the mortgage market, to ensure, if necessary, public funds for banks, to establish coherent national plans to guarantee securitized assets. Ministers insisted on the need to "act towards protecting the tax payer and to prevent potentially damaging effects on other countries," and they committed to enhancing their co-operation.

At a meeting in Paris on 12th October the leaders of the 15 members of the euro area succeeded in drawing up a concerted response to the financial crisis. Their action plan commits to boosting inter-bank loans, to enhancing banks' own funds so that they can continue to lend to companies and to households and to recapitalise the banks whose bankruptcy may threaten the financial system. To remedy the mistrust that is paralysing the inter-bank market the 15 States will guarantee, ensure or subscribe the loans contracted by the banks on the market themselves. These loans may extend over 5 years but will have to be taken out before 31st December 2009. The 15 Member States will also be able to strengthen bank capital by entering into the capital themselves and commit to "preventing any failure of the financial institutions which may be a danger for the financial system as a whole." Each country must reveal the details of their national plans by 13th October. Germany, France, Italy and "other countries" will present the details of their rescue plans against the financial crisis "simultaneously".

The Director General of the IMF, Dominique Strauss-Kahn indicated on 12th October that he supported the financial plan that the euro zone countries had just adopted. The IMF 'asked for concerted action and the fact that the euro zone countries agree on such a plan is extremely good," he stressed during a press conference in Washington. "Not only is this action co-ordinated, but it also pays attention to detail. We already have the details of the American Plan, the so-called Paulson plan. We know what the UK's plans are and obviously we know in detail what the euro zone plans are," he said.

Following their meeting on 8th October during which French President Nicolas Sarkozy and German Chancellor Angela Merkel agreed that Germany and France's action with regard to the financial crisis will be totally co-ordinated - France decided on 12th October at the Eurogroup meeting to provide a 'fee-paying' guarantee to inter-bank loans of up to 320 billion euro and to dedicate up to 40 billion euro to inject capital back into the banks in difficulty.

On 10th October the head of the Spanish government José Luis Rodriguez Zapatero spoke with French President Nicolas Sarkozy about the financial crisis. He suggested an emergency meeting between Heads of State and Government, an idea that Nicolas Sarkozy implemented on 13th October. The Spanish government announced the creation of a 30 billion euro fund to support banks.

In an editorial that has been published on his internet site the chairman of the Robert Schuman Foundation, Jean-Dominique Giuliani welcomes the Eurogroup meeting of 12th October together with the action plan.

On 13th October the Commission and the Presidency of the Ecofin Council published a joint press release on the situation in Hungary. The Ecofin Council welcomed the IMF's readiness to provide technical and financial assistance to Hungary. The Commission and the Ecofin Council promised to "use all available tools to support Hungary in continuing with its economy in the present difficult period."

Following the White Paper by the European Commission "Together for Health : a strategic approach for the EU 2008-2013" dating from October 2007 MEPs adopted an initiative report on 9th October by Alojz Peterle (EPP-ED, SI) which provides its support to the Commission's proposals. Whilst supporting the co-operation strategy put forward in the White Paper they insist however on the importance of the involvement of social partners. Moreover a European Health Index is required, in their eyes,to identify inequalities between Member States. Finally they would like to lay stress on prevention via vaccination campaigns and the improvement of research programmes.

On the occasion of the European Regions and Towns Week the European Commission presented the Green Paper on territorial cohesion on 6th October stressing that Europe has succeeded in maintaining a certain balance between urbanisation and the protection of rural areas and suggests ways of preserving this. The Green Paper highlights the need in the EU for better co-ordination between towns and the countryside and equal access to public services, effecient transport services, reliable energy networks and broadband internet connections.

On 7th October the European Commission demanded that Slovakia review its decision of 15th February 2008 with regard to the extension of the monopoly of the historic operator, Slovenská Pošta, to the provision of hybrid postal services whilst this activity was open to the competition until now. The term "hybrid mail" means the service of transmitting a message originally received electronically by post. The European Commission said that the extension of the monopoly was contrary to the rules included in the European Community treaty on the abuse of dominant position. Slovakia has one month to modify its law.

On 9th October the 27 European Transport Ministers came to agreement on all of the legislative proposals with regard to the internal energy market. In addition to this they adopted the conclusions relative to energy efficacy. They also came to agreement on the last two proposals in the third package "Maritime Security" the said "Erika III" on the obligations of the flag State and those relative to theships' owners' civil liability. They also committed to ratifying the international conventions relating to the International Maritime Organisation by 2012. With regard to aviation they adopted conclusions in favour of including aviation in the community CO2 exchange system and gave the greenlight to the launch of the development phase of the SESAR programme, an air control system which is part of the Single Sky package.

On 10th October the High Representative for the European Common Foreign and Security Policy, Javier Solana confirmed the withdrawal of Russian forces from the zones adjacent to Abkhazia and South Ossetia.

Finnish President Tarja Halonen met her Turkish counterpart Abdullah Gül on 8th October in Turkey. She said she was satisfied with developments in Turkey hoping that other reforms would be undertaken to speed up the country's accession to the EU. Both presidents addressed regional issues and notably that of security in the Caucasus. They stressed the excellent relations and the enhancement of co-operation and trade between the two countries. Tarja Halonen also spoke at the Turko-Finnish Business Forum.

On 3rd October French President Nicolas Sarkozy addressed a letter to the President of the European Commission, José Manuel Barroso to request the rejection of the amendment adopted by the European Parliament. In his opinion "this amendment tends to exclude the possibility for Member States to apply an intelligent strategy to discourage piracy." Hence to discard the amendment Nicolas Sarkozy asked for "José Manuel Barroso's personal commitment". But on 6th October the European Commission officially rejected the French President's request arguing that the decision of the Parliament had been a democratic one. The Council will look into the "Telecoms Package" in November.

On 8th October French President Nicolas Sarkozy and his Russian counterpart Dmitri Medvedev met in Evian. Two months after the war in Georgia time has come for easing up on matters. They discussed the international financial crisis at length, the Georgian affair and the possibility of a new security system in Europe. The vital test in Georgia was the withdrawal of the Russia army from the buffer zones. Dmitri Medvedev had "kept his promise" said the French President. Hence negotiations on a strategic EU/Russia agreement will be taken up again with the possibility of the creation of a common economic area in view. Nicolas Sarkozy also took up the proposal put forward by Dmitri Medvedev in June in Berlin with regard to a new "security pact in Europe" that would replace structures inherited from the Cold War. He suggested dedicating an OSCE summit at the end of 2009 to this project since the organisation extends from "Vancouver to Vladivostok" rallying 55 countries including the USA and Canada.

Polish Prime Minister Donald Tusk travelled on 8th October to Cordoba in Spain and then to Paris and Berlin on 9th October. In Cordoba he notably signed two co-operation agreements: one between the Polish railways PKP and the Spanish rail company ADIF; the second with economy ministers to share Spain's experiences in the use of European structural funds. In Paris and Berlin he talked with Nicolas Sarkozy and Angela Merkel about the financial crisis, the future of the Lisbon Treaty and the Energy-Climate Package.

During a Russo-Belarus Council of Ministers meeting on 6th October in Minsk Russian Prime Minister Vladimir Putin said he was ready to support the Belarus economy since Belarus President Aleksander Lukashenko has promised for his part not "to barter" with the West. They discussed the price rises of Russian gas delivered to Belarus - gas which is still below market prices - making the country all the more dependent on its Russian neighbour. To compensate for these rises negotiations are also on going with regard to the granting of a 2 billion dollar loan to Belarus.

Following the murder of a young woman in the centre of Zagreb on 6th October Croatian Prime Ivo Sanader announced the replacement of the Home and Justice Ministers, Berislav Roncevic and Ana Lovrin together the police chief Marijan Benko. The posts will now be taken by Tomislav Karamenko (former director of the Information Services), Ivan Simonovic and Vladimir Faber respectively. He also announced the adoption of an anti-mafia law according to models seen in other European countries.

On 8th October after a proposal by Serbia the UN General Assembly decided to start proceedings with the International Court of Justice (ICJ) on the "unilateral" declaration of the independence of Kosovo. 77 countries voted in favour, six against (Albania, the Federate States of Micronesia, the USA, the Marshall Islands, Nauru and Palau), and 74 abstained. The ICJ must provide a consultative opinion on "the issue to see whether the unilateral declaration of independence by the provisional administrative institutions of Kosovo is in line with international law."

A Eurobarometer enquiry published on 9th October entitled "European attitudes with regard to Animal Cloning" reveals that in general Europeans are against animal cloning. 57% think that animal cloning would always be unjustifiable for food production and 43% think they would 'probably never' buy such products. However 41% think that cloning may be justified to improve animal resistance to disease and 44% think that it would be justified to protect rare animal species.

TEPSA, a trans-European political studies association has published its 7th edition of "EU27 Watch" on institutional and political issues. This study brings together articles by 29 research institutes from 27 Member States as well as from Turkey and Croatia.

Bruegel has published two articles for debate on the financial crisis. The first by Ignazio Angeloni entitled "Testing Times for Global Financial Governance," looks into the perspectives of world financial regulations. The second by Nicolas Véron entitled "Is Europe ready for a major banking crisis?", explains the gulf that exists between trans-European banks and national regulations.

The Nobel Prizes 2008 have been awarded. Five Europeans won the prize: French writer Jean-Marie Gustave Le Clézio for literature; the French scientists Luc Montagnier and Françoise Barré-Sinoussi for their discovery of the AIDS virus in 1983 and German Harald zur Hausen for his research on the papillomavirus, responsible for cervical and uterus cancer. The Nobel Peace Prize went to former Finnish president Martti Ahtisaari for his numerious mediation missions (Namibia, Northern Ireland, Kosovo and Indonesia).