According to the final results the Social Democratic Party (PSD) led by Mircea Geoana, allied to the Conservative Party (PC) won the elections on 30th November in terms of votes slightly ahead of the Democratic Liberal Party (PD-L) led by Traian Basescu. The PSD won 33.09% of the votes in the general elections and 34.16% in the senatorial election, whilst the PD-L won 32.36% and 33.57%. The National Liberal Party (PNL) led by outgoing Prime Minister Calin Popescu-Tariceanu came third with 18.57% of the vote and 18.74% - the Democratic Union of Hungarians of Romania (UDMR) came fourth with 6.17% and 6.39%. However the PSD has won more seats on both assemblies than the PD-L; the PDS won 114 MPs' seats and 49 senators seats versus 115 and 51 for the PD-L; the National Liberal Party won 65 and 28 seats; the Democratic Union of Hungarians of Romania, 22 and 9. What will the next government coalition be? Which Prime Minister will President Basescu choose?

In an editorial on his site Jean-Dominique Giuliani, Chairman of the Foundation analyses the recovery measures announced by the 27 Member States and the European Commission. He insists on the importance and the economic stakes of the European Council on 11th and 12th December.

On 4th December French President Nicolas Sarkozy set out details of a economic recovery plan estimated at 26 billion euro ie 1.3% of the GDP. 10.5 billion euros of additional State investment - major public companies and local communities will be included in various development programmes. To boost employment companies with under 10 employees will be exempt of employers' contributions. The State will provide a bonus of 200 euros at the end of March to potential beneficiaries of the Active Solidarity Income. An additional sum of 1.8 billion euro will be dedicated over 2009-2010 to housing. In the car industry "a scrap bonus" of 1000 euros will be given for the scrapping of old cars in exchange for the purchase of a new, less pollutant vehicle (under 160 grammes of CO2) is being planned for. Measures in this plan will extend France's public debt that will come close to 4 GDP points next year. On 5th December Patrick Devedjian was appointed Minister for Economic Recovery.

The European Central Bank decided on 4th December to reduce its main interest rate by 0.75 points from 3.25% to 2.5%; this is the greatest increase in its history. ECB Chairman Jean-Claude Trichet stressed the slowing of inflation, notably caused by decreases in raw materials' prices and the slowing of economic activity. The ECB lowered its annual growth forecasts counting on growth of between 0.8 and 1.2% this year, between -1 and 0% in 2009 (ie recession) and between 0.5 and 1.5% in 2010. Jean-Claude Trichet called for the rapid establishment of national recovery plans to guarantee the confidence of both financial players and households whilst respecting budgetary discipline mid-term.

On 5th December the Bundesrat (the upper chamber of the German Parliament) gave the greenlight for the package of measures totalling 31 billion euros over two years which aim to support the economy and stem the effects of the recession. This plan put forward by Chancellor Angela Merkel includes infrastructure projects and loan facilities for SMEs to stimulate private investment. Whilst the Länder were extremely reticent in the beginning and believed that they were having to support too great a part of the project, they finally agreed. However the financial plan seems inadequate in the opinion of some given the size of the crisis. Angela Merkel answered that she counted on assessing the effects of the measures adopted before launching other funding projects. The support plan for the economy has therefore been finally been adopted since the Bundestag, the lower chamber, approved it on 4th December.

The Bank of England decide to address the recession which Britain is sinking into by reducing its main interest rate by one point on 4th December - bringing it down to 2%, the rate of the pound between 1939 and 1951. As expected by analysts the BoE extended the trend of monetary flexibility by reducing its rate by one whole point. It already reduced this by 1.5 points in November after a reduction of 0.5 points in October as part of a concerted action by six major central banks in the face of the recession.

The Portuguese government announced on 3rd December the establishment of a support plan for the car industry totalling 900 million euros, to facilitate loan access for companies, to train workers and encourage the purchase of cars. This plan aims to "save jobs and improve competitiveness of a sector that is vital to the country's economy," said Portuguese Prime Minister José Socrates. The package notably incudes a loan of 200 million euros for export companies and other financial instruments to stimulate mergers and acquisitions in the sector. The government and companies have also decided to dedicate 70 million euro to the training of 10,000 workers.

The Russian state is to inject 300 billion additional roubles (8.4 billion euros) into the economy to support notably the banking sector together with companies affected by the financial crisis announced Finance Minister Alexi Kudrine on 3rd December. The government intends to support bank loans to companies and help businesses affected by the crisis whilst public funds will also be used to buy mortgage loans off the banks. The Russian State has already injected more than 150 billion euro in liquidities into the banking sector in an attempt to calm loan pressure associated with the crisis.

The Swedish government announced on 5th December that it was to establish a three year emergency plan to a total of 22.9 billion Swedish Crowns (2.2 billion euros) 8.3 billion of which would be dedicated to 2009 for the recovery of the economy. Amongst other things the government is suggesting tax reductions on building repair work. In addition to this the Riksbank, the Central Swedish Bank, announced on 4th December a decrease of 1.75 points on its main interest rate - the Repo - which now lies at 2%.

On 4th December the Dalai Lama spoke to MEPs as part of the Year of Intercultural Dialogue. He spoke of peace, serenity and interreligious harmony. In addition to this he stressed the major role to be played by women in the future of a better world. Talking of Tibet, the Dalai Lama said he did not represent a separatist movement but supported the region's autonomy within the People's Republic of China. Thanking the determination of some MEPs the Dalai Lama called on the European Union to adopt a clearer position with regard to China. In conclusion the President of the European Parliament Hans-Gert Pöttering called on MEPs to support the Dalai Lama and his action for the Tibetan people.

On 4th December MEPs approved, 561 votes in favour, 24 against and 34 abstentions Gay Mitchell's decision (EPP-ED IE) to grant aid of one billion euros to developing countries in the fight against unstable food prices. This aid will lead to better access to agricultural services, notably fertilizers and seeds, the optimisation of infrastructures and storage and the support of professional categories in the agricultural sector. The aim is to increase agricultural production and to meet food requirements of the most vulnerable populations. To this effect a list of priority, target countries has been established. Thanks to this aid the EU will make a 10% contribution to the short term response to the food prices crisis.

On 4th December MEPs adopted two reports by José Manuel Garcia Margallo (EPP-ED, ES) that aim to prevent VAT fraud and make inter State co-operation more effective in terms of collating and exchanging data. These reports imply the modification of a regulation and a directive suggsting the reduction of the period to declare intra-community operations to one month and to reduce the time for information transmission between Member States also down to one month. The collation of company data has been three monthly until now. MEPs asked for an enhancement of the Commission's role as central co-ordinator and the establishement of an assessment report by the Commission after a two year period. The European Auditors' Court did indeed deplore the lack of administrative co-operation between the Member States with regard to VAT.

The European Parliament and the Foundation of the International Charlemagne Prize in Aachen is inviting all young people from the 27 Member States aged 16 to 30 to take part in a competition on the occasion of the Charlemagne European Youth Prize 2009. This focusses on the development and the integration of the European Union. The goals are as follows : promoting European and international understanding, fostering European identity and integration and providing a model to young people living in Europe by offering practical examples of Europeans living within the same community. The best three projects will receive a prize. The deadline for sending off projects in 16th January.

The European Commission gave details on 3rd December of its proposals for the Eastern Partnership. It is proposing to go beyond the present co-operation which is part of the European Neighbourhood Policy aiming for greater political co-operation with the Ukraine, Belarus, Moldova, Georgia, Armenia and Azerbaijan. With regard to Belarus the partnership will depend on the country's political development. This partnership will lead to association agreements without the perspective of membership, the establishment of free trade areas, the relaxation of the visa regime, in depth energy co-operation together with an overall programme to enhance institutions. The political and multilateral aspect will be particularly well developed. This partnership will also benefit from additional financial aid of 350 million euros. The Commission proposes to launch this initiative in the spring of 2009 during an "Eastern Partnership Summit".

European Transport Commissioner Antonio Tajani and and Consumer Commissioner Meglena Kuneva demonstrated that they wanted the application of European rules guaranteeing passenger rights. On 1st December they sent a letter to airlines selling their tickets over the Internet requesting them to respect the list of 30 passenger rights. The Commission will publish a report in May 2009 on sites selling tickets on-line. Moreover they recalled that infringement procedures would be launched against Member States which did not oblige companies to respect European rules. At the same time the European Commission suggested on 4th December the definition of new passenger rights for those travelling by bus and boat.

Antonio Tajani, Vice-President of the Transport Commission signed 11 funding decisions on 5th December allocating 1.7 billion euro to railway projects in the "Trans-European transport Network 'TEN-T' for the period 2007-2013. The projects notably include the Franco-Italian axes of the Lyon-Turin-Budapest line and the Germano-Italian line Berlin-Verona-Palermo.

On 4th and 5th December the European Commission organised a conference rallying African and European Universities, higher education specialists and members of the alumni association of the Erasmus Mundus programme (Erasmus Mundus Alumni) to look into ways of tightening links between higher education establishments in Africa and Europe and to increase student, resercher and teacher mobility between the two continents. The new phase in the programme Erasmus Mundus (2009-2013) will open up co-operation opportunities between higher education establishments in Europe and Africa.

The 27 competitiveness Ministers adopted the Small Business Act for Europe on 1st and 2nd December in support of European SMEs. In a context of European economic slowing this action plan provides immediate, targeted responses for SMEs. Ministers also adopted conlcusions on competitiveness clusters to foster their development in Europe. The 27 Higher Education and Research Ministers adopted "Vision 2020" for the European Research Area. The aim is to create an area for scientists to meet, for the free movement of researchers and for the production of a European borderless area. Finally Ministers defined guidelines for the future development of a Global Monitoring for Environment and Security programme (GMES).

Italian Major General Stefano Castagnotto took command of the EU Force in Bosnia on 4th December (EUFOR). He is replacing Spanish General Ignacio Martin Villalain. EUFOR took over from the NATO force in 2004 and ensures peacekeeping missions in the country which suffered an intercommunity war between 1992-1995.

On 4th December the 27 Environment Ministers addressed the last difficult points in the Energy/Climate Package and negotiations will be finalised to a total of almost 90%. But the issue of coal raised by Poland still remains - the idea of free quotas for industries in difficulty, the issue of financial solidarity. An agreement was however reached with Parliament on the 10% objective of green fuels by 2020, not just limiting these to biofuels. Therefore the Heads of State and government will be the final arbiters during the European Council on 11th and 12th December. At the same time the ministers adopted conclusions calling for the reduction in the dangers that mercury poses to human health and the environment; conclusions were also made with regard to GMO's together with an Action Plan for consumption and sustainable production.

On 5th December the High Representative for the EU for Foreign Policy, Javier Solana confirmed the launch on 9th December of the European Police and Justice Mission in Kosovo (EULEX). As from 9th December EULEX will progressively take over from the UN mission (UNMIK) across the entire territory, including areas where there is a Serb majority. Led by former NATO troop commander in Kosovo, French General Yves de Kermabon, EULEX is will finally comprise 1,900 policemen, legal advisors and European customs officers together with around 1,100 local agents. The EULEX mission has been qualified as vital by Javier Solana for the consolidation of the Rule of Law in Kosovo.

On 4th December the new Palais of the Court of Justice of the European Communities was inaugurated in Luxembourg. On this occasion the Court held a solemn session during which speeches were given by Mr Vassilios Skouris, President of the Court of Justice, Ms Diana Wallis, Vice-President of the European Parliament, Ms Rachida Dati, representative of the Presidency of the Council, Mr José Manuel Barroso, President of the European Commission, and Mr Jean-Claude Juncker, Prime Minister of the Grand Duchy of Luxembourg, in the presence of Their Royal Highnesses the Grand Duke and Grand Duchess of Luxembourg, the Members of the Court of Justice and the Presidents and Members of the Court of First Instance and the Civil Service Tribunal. During his speech Mr Barroso recalled the importance of law in the construction of Europe and more particularly the key role played by the Court of Justice in the construction of this community of law.

In a decision taken on 1st December the European Communities Court of Justice provided clarification with regard to the scope of the speciality rule which states that a person surrendered under a European Arrest Warrant for the purpose of prosecution for a criminal offence may be prosecuted for that offence. When asked about this as part of a case on the part of the Finnish court the Court of Justice said that requesting the agreement of the executing State for any change in the description of the "crime" would affect the aim of the framework decision that establishes the European Arrest Warrant which in fine aims to create a legal area of freedom, security and justice based on mutual acknowledgement and to accelerate legal co-operation.

From 30th November to 2nd December the CDU held its congress in Stuttgart. Whilst explaining her support programme to investment and consumption German Chancellor Angela Merkel said on 1st December that she intended to "keep all doors open" in the face of the economic and financial crisis which could only be solved by a common-sense, joint, co-ordinated action - she hopes that Europe would "join her in this vision". She pleaded in favour of the creation of a "World Economic Council" working for the construction of a new world economic order and hoped that the German social economy market model would be used as an example by Europe and the world. Angela Merkel was re-elected to the presidency of the CDU.

According to a report by the Federal Environment Agency (UBA) Germany rose above its objectives in 2007 with regard to reduction in CO2 emissions. It succeeded in reducing its emissions by 22.4% in comparison with the reference years (1990-1995). It would now be able to meet its commitments made as part of the Kyoto Protocol (-21% emissions) on average over the period 2008-2012. Electricity production is still a black spot whose emissions have increased yearly since 1999. The German Environment Minister Sigmar Gabriel presented an national plan for energy efficiency on 16th October to remedy this situation. He recalled the need to invest en masse in "greener" materials.

In her government declaration to the Bundestag on 4th December, one week before the Europoean Council on 11th and 12th December, German Chancellor Angela Merkel thanked and congratulated the French presidency of the EU for the work it has accomplished over a difficult six-month period. She did not mention the French management of the financial crisis, since Paris and Berlin do not agree on the means to deal with it. She also addressed two themes in the European Council programme ie the fight against climate change and the international financial crisis. These, in her opinion, are global problems which require the adoption of a joint response and this enhances Europe's importance and need for it to act.

French President Nicolas Sarkozy travelled to Gdansk on 6th December. He took advantage of this visit to take negotiations forward with regard to the climate. During a lunch with Polish Prime Minister, Donald Tusk and the leaders of eight countries (Bulgaria, Hungary, Romania, Czech Republic, Slovakia, Estonia, Latvia and Lithuania) which are heavily dependent on coal he tried to foster the agreement that the EU presidency would like to see signed before the end of the year. These countries fear that the European project to reduce CO2 emissions by 20% and notably the auction of CO2 quotas will weaken their economy. "We made progress, I really do hope that we can come to agreement," said the French President. He stressed Poland's responsibility in ensuring Europe's unity in the face of the worsening climate. Although a compromise may be possible "the solidarity of the nine held firm and is powerful", insisted Donald Tusk.

French President Nicolas Sarkozy met the Dalai Lama for the first time on 6th December during a meeting for the Nobel Peace Prize in Gdansk. Nicolas Sarkzoy and the Dalai Lama notably discussed the situation in Tibet. In answer to criticism on the part of the Chinese authorities the French President declared,"as president of the European Council I am the bearer of values and beliefs. It was my duty to do this and I did it willingly." He also relativised this meeting insisting on the Dalai Lama's wish not to ask for Tibet's independence and his hope that China would "take up its place in the governance of the world."

On 1st December Irish Prime Minister Brian Cowen welcomed the Support Funds for small and medium sized companies put forward by the Bank of Ireland to a total of 250 million euros. He is aware of the difficulties created by the crisis for SMEs and is pleased that this fund will help facilitate loans. He hopes that other financial institutions will put similar initiatives forward.

Czech Prime Minister Mirek Topolanek, the next President of the Council of the European Union in the first semester of 2009 was re-elected as head of the liberal ODS on 7th December just two days before an extraordinary meeting of the lower chamber of parliament on the Lisbon Treaty. ODS Congress Delegates preferred Mirek Topolanek to the Mayor of Prague, Pavel Bem, a close colleague of Czech President Vaclav Klaus; "the founding father" and head of this movement from 1991-2002. Vaclav Klaus announced that he was leaving the honorary presidency of the ODS because of his disagreements with Mirek Topolanek and in protest against the ratification of the Lisbon Treaty.

British car manufacturer Rolls-Royce announced on 4th December that it would be working with the French nuclear group Areva in the construction of nuclear reactors which will be "the first to be built in the UK in over 20 years". The project also includes Balfour Beatty. The British programme to build new nuclear power stations represents 20 to 25 GW of established power.

Georgian Defence Minister, David Kezerachvili and Foreign Minister Eka Tkechelachvili were dismissed from office on 5th December. Georgian Prime Minister Grigol Mgaloblishvili explained that "new energy" was needed in the government as he announced the departures that were to be accompanied by a major reshuffle of the diplomatic corps. He announced that Culture Minister Grigol Vachadze has been appointed Foreign Minister and Deputy Defence Minister, Batou Koutelia, will replace David Kezerachvili.

The 14th Conference of the UN Framework Convention on Climate Change opened for work on 1st December in Poznan. In his inaugural speech UNFCCC secretary Yvo Boer asked participants to focus on what brought them together rather than on what divided them so that an agreement could be met by 12th December. Rallying 187 member countries of the UN Convention the conference is to agree on an action plan for the first year of negotiations before the Copenhagen Conference in 2009 that is to conclude the round. In Poznan the main themes of discussion are the enhancement of capacity-building for developing countries, reducing emissions from deforestation (REDD), technology transfer and adaptation; advance understanding and commonality of views on "shared vision" for a new climate change regime; strengthen commitment to the process and the agreed timeline.

An international treaty that prohibits the use, production, stockpiling and transfer of cluster munitions opened for signature in Oslo, Norway on 3rd Norway. "This Convention marks a major step forward in global efforts to protect civilians and control the noxious spread of deadly, inhumane weapons", wrote the Secretary-General. "The horrific humanitarian impact of cluster munitions is well known," he added. "During and long after conflict, they have maimed and killed scores of refugees, nurses, journalists, passers-by, women and men working in fields and orchards, and children helping with household chores or at play." The CCM was adopted by 107 States at a conference in Dublin, Ireland in May 2008. The CCM will enter into force six months after 30 States ratify it. Nearly 100 countries have signed the Oslo treaty prohibiting cluster munitions, the USA, China and Russia have not signed however.

According to Eurostat figures released on 2nd December in the EU (as well as in Norway, Iceland and Croatia) 60% of households had access to the internet during the first quarter of 2008, compared with 54% during the first quarter of 2007, and 48% had a broadband internet connection, compared with 42% in 2007. Household internet access varies between 25% in Bulgaria and 86% in the Netherlands. In 2008, the proportion of households with internet access was three quarters or more in the Netherlands (86%), Sweden (84%), Denmark (82%), Luxembourg (80%) and Germany (75%). The lowest levels were registered in Bulgaria (25%), Romania (30%) and Greece (31%).

According to Eurostat figures published on 2nd December in October 2008 compared with September 2008, the industrial producer price index fell by 0.8% in the euro area and by 1.4% in the EU. In September, prices decreased by 0.3% and 0.4% respectively. In October 2008 compared with October 2007, industrial producer prices increased by 6.3% in the euro area and by 7.3% in the EU. Among Member States for which data are available, the only increases in the total index were registered in Hungary (+1.2%), Slovakia (+0.9%), Ireland (+0.4%) and Cyprus (+0.1%). The largest falls were observed in Denmark (-5.1%), the United Kingdom (-4.2%) and Greece (-2.8%), while prices remained stable in Germany.

According to Eurostat figures published on 5th December one quarter of European children under three attend a formal childcare structure. This figure varies significantly from 73% in Denmark to 2% in the Czech Republic and Poland. However 84% of children between three and obligatory school attendance age attend formal childcare structures - with differences ranging from 98% in Belgium to 28% in Poland.

The Swedish Institute for European Policy Studies has just published a study by Christian Lequesne and Olivier Rozenberg dedicated to the French Presidency of the Council of the European Union. Whilst France established four priorities (immigration, energy-climate, defence and agriculture), as well as the project for the Union for the Mediterranean; it also had to face a certain number of unexpected crisis: the negative referendum in Ireland, the Russian-Georgian crisis and the international financial crisis. The authors analyse the French presidency in the light of these priorities and crises.

The Centre for Europoean Policy Studies (CEPS) has published a report by Karel Lannoo entitled Concrete Steps towards More Integrated Financial Oversight: The EU's Policy Response to the Crisis". Arguing the limits of the present supervision system the author notably recommends the establishment of a European Financial Supervisors System which, without being a totally centralised agency, might undertake the necessary tasks Europe wide, whilst leaving the essential part of the monitoring to national supervisors.

Grasset Editions has publisehd "La reconquête russe" by Laure Mandeville. Author and lead reporter for the Figaro who has lived in Russia and who covered the many post-communist crisis since 1989, from Chechnya to the most recent events in Georgia. She analyses the Russian trend towards nationalism which is turning into a major challenge for the West. Although we cannot stop the sorcerers' apprentices at the Kremlin who until now have acted in total impunity, Russia's rise to power will not only be synonymous to another tragedy for the Russian nation but it will also mean the end to the security of our democracies.

The Foundation "Musei Civici Veneziani" of Venice is dedicating an exhibition to George Barbier (1882-1932) or the birth of decorative art until 5th January.

The Italian film "Gomorra" won the best European film prize during the 21st European Film Awards on 6th December in Copenhagen. The film also won the prize for best director (Matteo Garrone), best actor (Toni Servillo, also for his role in Il Divo by Paolo Sorrentino), best scenario (Maurizio Braucci, Ugo Chiti, Gianni de Gregorio, Matteo Garrone, Massimo Gaudioso and Roberto Saviano), and the Carlo di Palma prize for the best photograph (Marco Onorato).