In an editorial published on his site, Jean-Dominique Giuliani, Chairman of the Foundation analyses the issues at stake in the new gas crisis between Russia and the Ukraine.

On 6th January Czech Prime Minister Mirek Topolanek, whose country took over the presidency of the EU on January 1st for six months, presented the priorities of its mandate marked by the crisis in the Middle East and the gas conflict between Russia and the Ukraine. With regard to the Middle East he said that Prague was working at present on the possibility of negotiations linked to the opening of corridors with Gaza. With regard to the gas crisis he tried to dedramatise the situation in spite of reductions in supplies recorded in several European countries; he repeated that Prague would not play the referee between Moscow and Kiev. With regard to the economic crisis that will still be a major challenge over the next six months; he maintained that Prague hoped to limit the effects of the financial crisis and to prevent excessive regulation.

On the occasion of the Charlemagne Prize for European Youth 2009 the European Parliament and the Foundation for the International Charlemagne Prize in Aachen are inviting all young people from the 27 Member States aged 16 to 30 to take part in a competition. The latter aims to develop a European sense of awareness amongst young people and its goals are the following: to promote European and international understanding, foster European identity and integration and to serve as a model for young people living in Europe by offering practical examples of young people living within the same community. The best three projects will be awarded a prize. The deadline for the dispatch of the projects is 16th January next.

On 8th January the 27 Foreign Ministers met informally to look into the energy situation. They adopted a declaration relative to the conflict between the Ukraine and Russia which appeals to the two countries to fulfil their obligations as supplier and transit countries and to start delivering to the markets of Europe again normally. The declaration also recalls that the security of energy supplies is an EU priority. With regard to institutional issues and the ratificaiton of the Lisbon Treaty the Czech Presidency has promised to define legal waranties for Ireland in view of the European Council in June 2009. Finally ministers pinpointed three key areas in the development of relations with the new American administration: economic and financial co-operation; climate-energy; co-operation in the management of key foreign policy issues.

According to the most recent estimates published by the European Commission on 8th January the economic sentiment indicator and the The industrial and consumer confidence indicators declined significantly in the EU and the euro area in December 2008 to reach their lowest levels since their creation in 1985. The economic sentiment indicator that summarises the confidence of company heads and consumers fell by 7 points in the EU and by 7.8 points in the euro area to reach 63.5 and 67.1 respectively (for a long term average of 100). The industrial confidence indicator fell in November by -2.1 to 3.17.

In response to the "Industry, Research and Energy" Commission's request at the European Parliament, the European Economic and Social Committee (EESC) has called for a 50% reduction in the European demand for oil by 2050. According to rapporteur Derek Osborn, chairman of the NGO "Stakeholder Forum for our Common Future" the only solution to climate change is to develop the European energy base moving from the use of fossile fuels over to sustainable energies and to improve energy efficiency. The EESC suggests reducing European oil demand in areas such as transport, construction and electricity production. It stresses the need for fiscal and regulation measures, for public and private investment programmes together with industry and civil society leadership to encourge this change. This opinion will be adopted on 14th January, it will then be examined by the European Parliament.

In a speech on 9th January Jean-Claude Trichet, President of the European Central Bank called for a "change in pattern for the world financial system." He said that "its root cause was a widespread undervaluation of risk in the global financial system, especially in the most advanced economies" and he criticised the widespread view that markets auto-regulated themselves. He suggested three means of reform: questioning the priority given to the short term by a reform of the managers' remuneration system, reforming accounting rules to their just value - sources of pro-cyclicality need to be investigated and the transparency of the entire financial system has to be improved. In conclusion he suggests "a new framework based on three ideas of mid and long term sustainability, resilience and a holistic approach.

The European Investment Bank (EIB) signed three new loans for British small and medium sized companies. The loans to a total of 650 million euros will be distributed by the Royal Bank of Scotland, Barclays Bank and the Bank of Scotland to SME's which have goals that meet European objectives. The 4.5 million British SMEs represent half of all British jobs.

After having released 31 billion euros in the autumn the German government is about to announce a second round of measures to boost the economy in 2009 and 2010. Sums will rise to around 50 billion euros and will include new investments in infrastructures and education. The parties in the coalition (CDU/CSU, SPD) agreed on the main points and on the financial issues on 5th January. Government spokesperson Ulrich Wilhelm announced that new measures were underway within the various working groups associating representatives of the Federal State, the Länder, companies and social partners. They will finally be decided upon on 12th January during a meeting between the parties in the coalition and officially announced by Chancellor Angela Merkel during a government declaration at the Bundestag. Berlin is pursuing two goals : supporting companies and protecting or creating as many jobs as possible.

On 8th January the Belgian Chamber Representatives adopted the 2009 budget although budgetary discussions had been interrupted on 8th December last after the collapse of Yves Leterme's government. Final 2008 figures were also communicated revealing a GDP deficit of 0.9% ie a shortfall of between three and 3.5 billion euros. This deficit, greater than previously expected, is mainly due to a sharp reduction in VAT revenue, a decrease in early company payments and poorer results on the part of the regions. This explains why macro-economic figures and data on which the 2009 budget is based have been completely changed. Hence the government promised to undertake a budgetary check at the end of February to include any new data.

According to a report by the National Bank of Denmark on the country's financial stability in the second quarter of 2008 bankruptcies are to be expected in 2009 together with a rise in unemployment over the next two years (200,000 unemployed in comparison with 50,000 at the end of 2008). In addition to this the county is due to experience its greatest decline in productivity in 25 years due to banks' reticence to lend and the international recession. The chairman of the board of governors of the National Bank recommends the government introduce a "temporary facility" to complement capitals raised on the private market so that healthy banks can have temporary access to funding in conditions that are as close as possible to those on the market."

According to figures announced by the Spanish Employment minister on 8th January the number of unemployed increased sharply in Spain in December rising to over 3 million for the first time in 12 years. The number of unemployed increased by 139,694 in December ie a rise of 4.6% in comparison with November. Over the entire year the number of unemployed rose by 999,416 ie +46.9% in comparison with 2007. According to quarterly figures published by the Statistics Institute (INE) the unemployment rate reached 11.33% in Spain in the third quarter ie the highest level since 2004 after 10.44% in the second quarter and figures are due to continue to rise. Since the beginning of the year Spain has faced an extremely severe slowing in its economy and is on the verge of recession.

On 9th January the Finnish government announced that it was going to send 100 additional soldiers to Afghanistan bringing the total number to 210 in aid of the smooth running of the elections that are due to take place there this year. "Finland is preparing to enhance temporarily its participation in the crisis management in the north of Afghanistan with around 100 men in preparation for the elections," said the government in a press release. NATO has asked countries that are part of the International Security Assistance Force in Afghanistan to increase the number of soldiers they have deployed in view of the presidential and regional elections. The Finnish back up mission which depends on a favourable vote by Parliament is to last between three and five months.

On 8th and 9th January the seminar "New World, New Capitalism" took place. It was co-chaired by French President Nicolas Sarkozy and Tony Blair, representative of the Quartet and former British Prime Minister together with Angela Merkel, the German Chancellor. During his speech the French president declared "a return of the State". In his opinion "the major element in this crisis is the return of the State." He also defended "an entrepreneurial State" which would notably work using sovereign funds. German Chancellor Angela Merkel gave her diagnosis of the crisis and her thoughts on the future of capitalism. She hopes for a better regulation of the financial markets and the creation of an Economic Council within the UN. The seminar took place as the second summit that will bring together the 20 main powers in the world together in London at the start of April draws closer.

Greek Prime Minister Costas Caramanlis reshuffled his government on 7th January one month after the start of demonstrations that took place in the wake of the death of a 15 year old, killed by a policeman in Athens. Amongst the changes former Secretary of State, Yiannis Papathanassiou has taken over as Finance Minister, former Transport Minister, Costis Hatzidakis is now Development Minister (including trade, internal market and energy), former Education Minister, Evripides Styliandis is now Transport Minister and the Secretary of State for Tourism, Aris Spiliotopoulos, has replaced him. Four ministers have left the government and four people have made their entry: Antonis Samaras - Culture, Nikolaos Dendias - Justice, Costas Markopoulos - Tourism and Christos Markoyiannakis - Deputy Minister for Public Order at the Home Office. Finally a Secretary of State for Media has been created and Constantin Gioulekas has been granted this position.

On 9th January Italian Home Minister Roberto Maroni announced a meeting with his G8 counterparts on illegal immigration at the end of May in Lampedusa, a small island off the south of Sicily where most migrants from Northern Africa arrive. Italy that took over the presidency of the G8 on January 1st "wants to make the other ministers realise what it means to live with a phenomenon of illegal immigration," said Robert Maroni who was on a trip to Lampedusa. The G8, includes the most developed countries in the world, namely Germany, Canada, USA, France, UK, Italy, Japan and Russia.

Portugal is due to experience a year of recession in 2009 with a decline of 0.8% in the GDP according to forecasts issued by the Bank of Portugal on 6th January - it is anticipating a moderate recovery in growth by 2010. The decline of growth in 2008 is a "result of a worsening external environment that will directly affect export growth and the postponement of consumer expenditure and investment," writes the bank in its newsletter. Portuguese Prime Minister José Socrates, admitted for the first time that there would probably be a recession in 2009. "Increasingly it looks like there will be a recession," he said.

On 8th January Czech Finance Minister, Miroslav Kalousek indicated that his country may adopt the euro on 1st January 2013 at the earliest recalling that the final date will be announced on 1st November next. He is not "worried about his country's ability to meet with criteria" noting for example that the Czech public deficit in 2008 lay at 1.2% (of the GDP), ie greatly below the ceiling of 3% demanded by the EU. Czech industrialists have been calling for the government to acclerate work to adopt the euro for months. The local car industry, one of the pillars of the national economy, suffered for months due to the strength of local currency on export before the financial crisis caused the collapse of the Czech crown.

British Prime Minister Gordon Brown confirmed on 5th January the implementation in 2009 of a new investment programme to a total of 40 billion pounds across the entire UK. These funds will be used both for short term measures to help private parties and companies to face up to the present economic difficulties and long term reforms that aim to enhance capabilities and employment. He stressed that the areas of education, transport and housing would be the main beneficiaries of these investments. He also spoke of the importance of preparing the economy for opportunities that will foster developments in the area of environmental and digital technologies.

On 8th January the official ceremony of Slovakia's entry into the euro area took place - it was called "Goodbye krone, welcome euro". The President of the European Commission José Manuel Barroso, European Commissioner for Economic and Monetary Affairs, Joaquin Almunia, Chairman of the European Central Bank, Jean-Claude Trichet and President of the Eurogroup, Luxembourg Prime Minister, Jean-Claude Juncker took part in the ceremony alongside the Slovakian authorities.

In an interview with the Slovenian daily Mag on 7th January Slovenian Foreign Minister Samuel Zbogar spoke of a possible referendum on Croatia's accession to the EU if border disputes between the two countries are not settled. He believes that a referendum "is not a threat but a fact if the border issues are not resolved." Croatian Prime Minister Ivo Sanader believes that the organisation of a referendum is not a "politically intelligent" decision and that with this as a possibility he is convinced of the Slovenians' support to his country's access to the EU.

On 7th January Albanian Prime Minister Sali Berisha announced that his country intended to stand as candidate for membership of the European Union within the next few months. Before achieving this status Albania will have to answer a long questionnaire on the part of the EU (15,000 pages for Macedonia!), which takes, up to one year at least to complete (Croatia); it took Macedonia 21 months and will take Albania about the same amount of time if not more.

The International Monetary Fund (IMF) announced on 31st December that an IMF mission and the Belarus authorities had reached agreement for an IMF loan to Belarus to a total of 2.5 billion dollars inlcuding 800 million that Belarus will be able to use immediately. After years of strong growth Belarus is now experiencing significant slowing and is severely affected by the economic crisis. This loan which represents 420% of the Belarus quota at the IMF is said to be part of a loan, to be extended as a 15-month Stand-By Arrangement, and is subject to final approval by the IMF's Executive Board. It will be conditioned by a reform programme including measures to ensure a strengthened monetary and exchange rate policy framework, fiscal restraint through cuts in public investment and directed lending by banks, and strict public-sector wage restraint. The social safety net would be strengthened to protect the most vulnerable.

According to a survey that was published on 10th January the Swiss are quite in favour of the continuation and extension of the free movement agreements with the EU to the Romanians and Bulgarians which will be submitted to referendum on 8th February. According to the independent organisation gfs.bern 49% of citizens are in favour of continuing the agreements with the EU that have been in application since 2002 together with their extension to Bulgaria and Romania. 40% say they are against whilst 11% say they do not know. The French part of Switzerland is mostly in favour of the agreement (61%) whilst the Italian part of Switzerland is 66% against, explains the daily "Le Temps". In the German part 47% are in favour in comparison with 44% who are against. The referendum is of vital importance for relations between independent Switzerland and the EU. If the NO wins Brussels has threatened to look into most of the co-operation agreements it has with the Confederation which is the cause of stress in Berne.

On 8th January Turkey appointed a new negotiator to undertake membership discussions with the EU. This role that until now had been assumed by Foreign Minister, Ali Babacan, will be undertaken by the Vice-President of the Justice and Development Party (AKP) in office at present, Egemen Bagis. Whilst membership negotiations started in October 2005 Turkey has only opened ten chapters to date and only one of the 35 necessary for its membership of the EU has been completed.

Managers of the companies Naftogaz and Gazprom met on January 8th to negotiate the transit of gas towards the EU whilst blaming each other for the interruption in supplies. Obstacles continue to prevent the transit of gas because of a written clause added by the Ukrainians in the transit protocol and because Russia is refusing to sign the document; the means that they are delaying the resumption of deliveries to Europe and ignoring the damage caused to the EU because of this. The dispute between the Ukraine and Russia with regard to the debt and the price of gas deliveries is far from being settled. Indeed both sides are sticking to their guns: the Ukraine believes that it has paid its debts to 1st January 2009 whilst Russia is demanding 614 million dollars. Finally there is no planned agreement for the supply of gas to the Ukraine in 2009, which have been totally stopped for the time being.

2009 will herald the 60th Anniversary of the Council of Europe. On this occasion many events will be organised throughout the year to recall the importance of Human Rights and fundamental freedom which the respect of which the Council of Europe endeavours to promote.

On 8th January the international community called for an immediate ceasefire on the Gaza Strip nearly two weeks after the start of the Israeli offensive against the radical Palestinian movement, Hamas, which has led to the death of over 770. The UN Security Council launched this appeal in its resolution 1860 adopted by 14 votes in favour out of 15 - the USA abstained. In this text the Council "calls for an immediate, long term, totally respected ceasefire, that will lead to the total withdrawal of Israeli troops from Gaza." It condemns all violence and hositility undertaken against civilians and all acts of terrorism without explicitly pointing to the rocket attacks by the Hamas.

According to Eurostat figures published on 6th January the annual inflation rate in the euro area lay at 1.6% in December 2008 in comparison with 2.1% in November 2008. This information fed forecasts that suggest an additional decrease in interest rates at the next ECB meeting on 15th January next.

The CEPS has published a study by Pami Aalto, Helge Blakkisrud and Hanna Smith; it is entitled "The New Northern Dimension of the European Neighbourhood". The authors look into the regional co-operation initiatives in Northern Europe, specifically within the context of the "Northern Dimension".

Jean-Paul Betbèze, professor at the University of Paris-Pantheon Assas, a member of the Economic Advisory Council to the Prime Minister and member of the Scientific Council of the Robert Schuman Foundation has published a book entitled "Crise, une chance pour la France" (Crisis, an opportunity for France) with the Presses Universitaires de France.

On 9th January the European Commission adopted an international audiovisual co-operation programme entitled MEDIA MUNDUS for the period 2011-2013. This programme aims to strengthen cultural and commercial relations between Europe's film industry and film-makers of third countries to increase the diversity of films. The programme has a budget of 15 million euros. MEDIA MUNDUS is an extension of the preparatory MEDIA International programme by which the EU supports 18 co-operation projects in the international cinema industry with a budget of 2 million euros.