In an editorial published on his site, Jean-Dominique Giuliani, Chairman of the Foundation insists on the challenges of the upcoming European elections that will take place in the 27 Member States from 4th and 7th June 2009.

On 12th January the German coalition government (CDU/CSU, SPD) gave the greenlight for a 50 billion euro recovery plan, the biggest in 60 years. This plan relies on two pillars: a heavy investment programme (17-18 billion euros) and on tax and contribution reductions totalling around 9 billion euros. To this can be added incentives to purchase new cars (Scrap Bonus of 2500 euros), the creation of a 100 billion euro company guarantee fund, and even family bonuses (100 euro per child).

On 14th January British Trade Minister Peter Mandelson revealed a plan comprising the guarantee of up to 20 billion pounds for loans taken out by SME's in a bid to encourage banks to fund them. The government guarantee will cover up to 50% of the risk of non-payment of short term loans to a total of 10 billion pounds. The government is to set up a billion pound guarantee for long term loans taken out by SME's (up to 25 million pounds in turnover). Finally the Ministry of Trade is to create a fund of 75 million pounds (50 million provided by the State, and 25 million by the banks) that will invest in SME's that are struggling to find capital. This aid plan for SMEs represents a new stage in Prime Minister Gordon Brown's efforts to counter the crisis after the bank recovery plan in October that was an example to the whole world in the prevention of the collapse of the banking sector and a budgetary recovery plan announced in November.

On 14th January Italian MPs approved the series of anti-crisis measures announced by Silvio Berlusconi's government 327 votes in favour, 252 against and 2 abstentions. The anti-crisis package to a total of around 5 billion euros for 2009 reduced in comparison with the initial 6.3 billion by the committee at the Chamber of Deputies comprises a set of support measures for families and companies. It notably includes a bonus of 200 to 1000 euros for families on low incomes, the mostly costly of all the measures (2.4 billion euros) and fiscal incentives and exemptions for companies to a total of nearly 1.9 billion euros. The decision adopted at the end of November by the government is to become law before 28th January.

On 18th June the main Danish political parties approved a loan of 100 billion crowns (13.4 billion euros) for the banks of Denmark. 75 billion crowns are to be lent to banks and 25 billion to mortgage companies at variable interest rates depending on the financial strength of each institution. This measure is part of the government's programme to fight against the recession that is pending in Denmark. The first programme offered government support for interbank savings and loans.

On 12th January the Spanish government opened a new web site targeting citizens who want to find out more about the new economic measures taken to counter the economic crisis that is hitting the country. The Spanish Recovery Plan for the Economy and Employment (Plan E) includes 82 measures in favour of families, companies and the unemployed.

According to mid-term previsions published by the European Commission on 19th January the EU will experience a recession of 1.8% in 2009 and the euro area will suffer likewise with a 1.9% recession after a 1% growth rate in 2008. In 2010 the European Commission is forecasting a slight recovery with growth at 0.5%. It stresses that only consumption and investment in the public sector will limit GDP contraction due to a decline in private and external demand. The Commission is planning for a rise in unemployment to 8.75% in 2009 (9.25% for the euro area) but a slowing in inflation from 3.7% in 2008 down to 1.2% in 2009 (1% in the euro area) then rising to 2% in 2010.

In the wake of intense pressure on the part of the EU represented by the Czech Presidency and the European Commission, Ukrainian and Russian Prime Ministers, Yulia Timoshenko and Vladimir Putin met for the first time on 17th January for joint negotiations. The Czech Presidency welcomed the progress achieved during the negotiations. However the resumption of deliveries remains decisive.

On 18th January the Czech Presidency welcomed Israel's declaration for an immediate halt to military operations in Gaza. It invited "the Hamas to do the same urgently, immediately and unconditionally". Stressing the priority of guaranteeing humanitarian aid to the population and to avoid any additional civilian victims; the Czech Presidency also called on Israel to open corridors on the borders of Gaza. Finally the Presidency called on both parties to apply resolution N°1860 of the UN Security Council and to take up peace negotiations.

On 14th January MEPs adopted 597 votes in favour, 69 against and 33 abstentions a directive that aims to open public defence markets up more and to enhance intra-European competition. Whilst defence market procurement is still mainly a national affair the aim is to create a European defence equipment market and establish co-ordination rules for awarding contracts. At present internal market exemption rules are general in the area of defence and security. From now on the directive ensures legal protection of subcontractors and greater transparency during the procurement of public markets. SME access to the markets will also be facilitated. National security is still however the entire responsibility of the Member States.

On 14th January Czech Prime Minister Mirek Topolanek presented his country's priorities for the EU, the chair of which it currently occupies. With regard to the economy he insisted on the need to remove the Union's internal impediments, notably administrative charges on companies in view of enhancing European competition. The presidency's second priority involves energy. In this area the presidency is planning to establish a third energy package, to diversify energy supply routes and to complete the harmonisation of the gas and electricity market. With regard to the Union's external relations it will adopt an active approach to help in finding a settlement to the conflict in the Middle East, develop the partnership in the East and enhance transatlantic relations. The last priority will be institutional and will comprise the continuation of dialogue with Ireland with regard to what is to happen to the Lisbon Treaty.

On 13th January on the occasion of the solemn session dedicated to the 10th anniversary of the euro, European Central Bank Chairman, Jean-Claude Trichet, Eurogroup President Jean-Claude Juncker, European Commissioner for Economic and Monetary Affairs, Joaquin Almunia and former French President Valéry Giscard d'Estaing expressed the importance of the euro in the European integration process and recalled the advantages of the single currency in the present financial crisis. They also highlighted certain challenges facing the euro area. This notably involves governments in the euro area acting together to quell the effects of the economic crisis. On 13th January MEPs adopted the initiative report by Donata Gottardi (PSE, IT) that aims to establish better co-ordination in the economic decision-making process and the improvement of the quality of public finances in the euro area.

On 14th January MEPs adopted a regulation modification that introduces biometric elements into passports including the document bearer's fingerprints. Biometric passports will be introduced across the entire EU as from 29th June 2009 aiming to improve security and step up the fight against fraud and counterfeiting. During the modification of the regulation MEPs succeeded in ensuring that it was not obligatory to have the fingerprints of children aged 12 and under due to the poor quality of their prints. The draft regulation also plans for the introduction of the "one person-one passport" principle and do away with the possibility of children being included on their parents' passport as a consequence. This measure aims to fight against the trafficking of children.

In a resolution adopted on 15th January MEPs exhorted Israël and the Hamas to cease fire immediately and permanently. The MEPs request includes rocket attacks on the part of the Hamas and the end of military action on the part of Israël in the Gaza Strip. The resolution also called for a negotiated guaranteed truce via a mechanism that might include the dispatch of a multinational force. Dismayed by the suffering of the civilian population in Gaza MEPs have asked Israël to ensure unimpeded access to humanitarian aid in Gaza and to allow access on the part of the international press.

Following the recent slump in milk and milk products prices the European Commissioner for Agriculture Mariann Fischer Boel pledged on 15th January to introduce new support measures for the market. Next week the Commission will re-introduce export refunds for butter, cheese and whole and skimmed milk powder. When intervention buying for butter and SMP begins in March, the Commission undertakes to, if necessary, buy more than the pre-determined quantities through regular tenders. In November, the Commission reintroduced private storage for butter with effect from 1 January 2009 - including for butter produced in December. This represented an introduction of private storage earlier than is usually the case.

On 16th January the European Commission, which is about to look into the numerous national plans to help the car industry, invited ministers to Brussels in order to provide greater co-ordination to their initiatives. "All of the ministers said they agreed on the need for European co-ordination" in a sector that employs a great number of people and which has witnessed a dramatic decrease in sales across Europe (nearly 8% in 2008) said European Industry Commissioner, Günter Verheugen. But no common remedy such as a "scrap bonus" emerged from the discussions. "It is important to make commitments with regard to the industry but Member States must also operate on an equal footing in Europe," recalled British Trade Minister Peter Mandelson. The Commission rejected a request on the part of France to relax rules governing State aid to allow EU countries to help their failing car industries.

The EU continues to put pressure on Microsoft which has already been heavily convicted for abuse of dominant position; this time the matter refers to its navigator Internet Explorer. On 15th January the European Commission sent the American group a "statement of objections" (SO). It draws the first conclusions of an inquiry opened just one year ago notably after a complaint lodged by Norwegian software designer Opera Software which put forward an internet navigator to compete with that of Microsoft. In its letter the Commission formally accuses the American group of abusing its dominant position by systematically integrating the Explorer internet navigator into the Windows operating system which equips nearly 90% of PCs in the world.

On 16th January the Czech Foreign Minister Karel Schwarzenberg took part in a EU/South Africa meeting with his South African counterpart Nkosazana Dlamini Zuma in Kleinmond near the Cape. The two parties agreed on the means to enhance their partnership in six new areas: immigration, space, healthcare, maritime transport and energy. The implementation of joint action in the strategic partnership was discussed. The ministers mentioned negotiations on the economic agreement between the EU and the South African Development Community. Discussions also focussed on the financial crisis, work to fight against climate change, the problem of foodstuffs' security, the situation in Gaza, Iran, Iraq and in the Balkans as well as on conflicts on the African continent in Zimbabwe, Sudan, the Democratic Republic of Congo and Somalia.

On 15th January the 27 Home Ministers addressed the problem of modern technologies and the dangers they might represent. They said they intended to develop these technologies in view of protecting borders, immigration management and the asylum policy. Discussions focussed on the development of the Schengen Information System (SIS II) and its use in the fight against pedopornography and other illegal practices on the internet that affect children. The final decision with regard to the orientation of the SIS will be adopted in June 2009. On 16th January the 27 Justice Ministers debated the principle of mutual acknowledgement in decisions relating to criminal matters. They notably spoke of the future of legal co-operation in the area of family law and inheritance. They hoped to facilitate the use of video-conferences that are a useful tool in accelerating cross-border legal procedures (e-justice).

The European Auditors Court published a special report on 15th January on the effectiveness of the EU's support with regard to freedom, security and justice in Belarus, Moldova and the Ukraine. European aid totalled 166 million euros between 2000 and 2005. The Court highlights satisfactory results with regard to border management. However it criticises inadequate progress in terms of the creation of detention centres for illegal immigrants and asylum seekers, the fight against organised crime, legal power and the fight against corruption. Although the Court stresses the influence of factors that are specific to these countries it criticises the European Commission for the co-existence of several financial tools for the same objective, inadequate co-ordination with other international donors and insufficient acknowledgement of any experience acquired.

On 15th January the European Central Bank (ECB) decided to reduce its main interest rate by half a point to 2%. The main rate has been brought down to record levels: it stagnated at this rate between June 2003 and December 2005.

During the annual press conference on 14th January in Paris the Director General of the European Space Agency, Jean-Jacques Dordain reviewed the results of 2008 and presented the Agency's programme in 2009. 2008 was marked by Europe's entry into the International Space Station (ISS) with the Columbus laboratory. In 2009 thanks to a budgetary extension of 10 billion euros to cover the next few years, the Agency's programme includes the launch of three Earth observation satellites to study climate change and the environment, two European scientific Universe observation satellites and the dispatch of new elements for the ISS. Moreover two Europeans will join the ISS which will pass over to European command.

German Chancellor Angela Merkel met her British counterpart Gordon Brown on 15th January as he visited Berlin. Discussions focussed on solutions to provide to the international financial crisis, on the situation in the Middle East and on the gas conflict between Russia and the Ukraine. With the G20 meeting in London on 2nd April on the horizon the Heads of State and Government of the European states members of the G20 will meet in February in Berlin to look at the new international financial market regulation rules together. The two heads of government believe that the conflict between Russia and the Ukraine must not continue to affect international gas exports on the part of Russia. Finally Angela Merkel called for a rapid ceasefire in the Gaza Strip.

The head of the Russian government, Vladimir Putin travelled to Berlin on 16th January where he met German Chancellor Angela Merkel. During talks the two leaders looked into the transit of Russian gas via the Ukraine towards Europe and said they were optimistic after a joint press conference. Angela Merkel supported a test phase during which gas would be delivered again to Western Europe, with the supply being monitored by European observers. It is appropriate to differentiate between the issue of gas supplies to Europe from that of the coverage of the Ukraine's own needs.

German Chancellor Angela Merkel's Christian Democratic Union (CDU)overwhelmed the Social Democrats (SPD) in the regional elections in the Land of Hessen on 18th January. The CDU won 37.2% of the vote in comparison with 36.8% during the previous elections on 27th January 2008. The SPD impeded by the issue of its alliance with the radical left, Die Linke, only won 23.7% of the vote in comparison with 36.7%, falling to its lowest ever level in this Land. The Liberal Party (FDP) won 16.2% of the vote in comparison with 9.4% a year ago. It is the FDP's best score in a regional election in half a century. The CDU and the FDP indicated before the election that they were ready to govern together as they did between 1999 and 2003.

According to a demographic report by INSEE (National Institute for Statistics and Economic Studies) published on 13th January France maintained a record fertility rate in 2008. With Ireland it is the EU country where the fertility rate is the highest. More than 800,000 babies were born in France in 2008 a figure that had not been achieved since 1981. The French fertility rate rose above the two children per woman threshold in 2008 (2.02 in comparison with 1.98 in 2007, 2 in 2006), whilst life expectancy has stagnated even declining with regard to women. On 1st January 2009 the population in mainland France and its Overseas Departments was estimated at 64.3 million by Insee, ie 366,500 more people in one year (+0.6%). 13% of EU citizens are now French, with France thereby strengthening its rank as the second most populous country in the EU after Germany.

On the suggestion of French Prime Minister, François Fillon, President Nicolas Sarkozy modified the composition of the government on 15th January. Eric Besson replaces Brice Hortefeux on Immigration, Integration, National Identity and Solidarity Development; the latter has been given the position of Employment, Social Relations, Family, Solidarity and Towns Minister in replacement of Xavier Bertrand who has left the government to take over the management of the UMP. Nathalie Kosciusko-Morizet has been appointed secretary of State for Economic Forecasting and the Digital Economy.

French President Nicolas Sarkozy co-chaired an international summit on 18th January with his Egyptian counterpart Hosni Moubarak - it was dedicated to the situation in the Middle East after three weeks of Israeli attacks on Gaza; also present were Czech Prime Minister Mirek Topolanek, German Chancellor Angela Merkel, British Prime Minister Gordon Brown, Italian and Spanish Presidents of Council Silvio Berlusconi and José Luiz Rodriguez Zapatero. Nicolas Sarkozy called on Israel to "leave Gaza" if the Hamas stopped its rocket attacks. He stressed the need to consolidate the cease-fire and to restore confidence and also to put an end to arms trafficking. He announced another summit dedicated to humanitarian aid and stressed the need for a conference on peace to settle this "conflict which is not just a regional but a world conflict". He suggested with Angela Merkel and Gordon Brown to provide Israel and Egypt with the technical and diplomatic means to help put an end to arms smuggling.

According to a press release by the Finance Ministry published on 14th January Italy will organise a meeting in Rome on 14th February with G7 Finance Ministers and the main bankers; G7 is the group of the seven most industrialised countries. This meeting will be held prior to the G20 Finance Ministers' meeting (G7 plus South Africa, Saudi Arabia, Argentina, Australia, Brazil, China, South Korea, India, Indonesia, Mexico, Russia, Turkey and the EU) planned for 14th March in London in preparation for the summit that will rally the leaders of the major developed and emerging countries on 2nd April, also in London

Albanian President Bamir Topi announced on 14th January that general elections would take place on 28th June next. These elections will be an important test with regard to Albania's European future; the country has just introduced a new electoral law. All elections organised in the country since the fall of Communism at the beginning of the 90's have been challenged by the various political parties which denounced infringements and manipulation. The adoption of the new electoral law at the end of November which enables Albania to organise free, honest elections, was requested by the EU. The new law includes a regional, proportional electoral system as well as the identification of voters by means of new ID cards and a new counting system - all measures to put an end to infringements and all disputes.

According to Eurostat figures published on 14th January industrial production fell by 1.6% in the euro area and in the EU in November 2008 in comparison with October 2008. In October production decreased by 1.6% in both areas. In comparison with November 2007 industrial production dropped by 7.7%. The greatest annual decreases were witnessed in Estonia (-17.6%), Spain (-15.1%) and Latvia (-13.9%).

According to Eurostat figures published on 15th January the monthly inflation rate lay at -0.1% in December 2008 in the euro area and in the EU. The annual rate in the euro area was 1.6% in December 2008 in comparison with 2.1% in November 2008 and 3.1% in December 2007. The annual EU inflation rate lay at 2.2% in December 2008 in comaprison with 2.8% in November. In December 2008 the lowest annual rates seen were in Luxembourg (0.7%), Portugal (0.8%), and Germany (1.1%) and the highest rates were in Latvia (10.4%), Lithuania (8.5%) and in Estonia (7.5%).

According to Eurostat figures published on 16th January the euro area recorded an external trade deficit of 7 billion euros with the rest of the world in comparison with +2.3 billion in November 2007. The balance recorded in October 2008 was +0.5 billion, in comparison with +4.2 billion in October 2007. In November 2008 in comparison with October 2008 seasonally corrected exports decreased by 4.7% and imports by 2.5%. EU trade with most of its main partners tended to rise, with the exception of exports to the USA and Japan as well as imports from South Korea and Japan. The biggest increases involved exports to Brazil (+28%) and Russia (+24%) as well as imports from Russia (+29%) and Norway (+27%).

A report by the Legal Studies Department at the French Senate analyses the policies adopted to sell-off national collections in six European countries (Germany, Denmark, Spain, Italy, the Netherlands, UK) and the USA. The analysis reveals that the non-sell-off principle of national collections is not absolute and although sales operations are not specifically prohibited by law they are monitored and are restricted. Overall the foreign texts appear not be as strict as the French ones. This study follows the debate that took place in France in January and February 2008 when Jacques Rigaud, honorary State Counsellor and Vice-President of the Foundation delivered his report to Culture Minister Christine Albanel with regard to the selling off of national collections.

The world annual report by Human Rights Watch published on 14th January questions the EU's immigration and asylum policies as well as its anti-terrorits measures. "The EU and its main Member States continue to apply anti-terrorist measures that infringe human rights. Expulsion for national security reasons in spite of the danger of poor treatment in the country of origin, inadequate protection in detention, as well as restrictions with regard to freedom of expression and the right to private life are all equally worrying issues," says the report. France and the UK are pinpointed for their anti-terrorist policies, whilst Italy and Greece are denounced for the way they treat migrants, Roms and Turks respectively.

The European network ESPON (European Spatial Planning Observation Network), established by the European Commission has published a paper on "Territorial dynamics in Europe: Trends in population development". This paper reveals that migration plays a vital role in population growth, compensating for the weak or negative natural growth. It also reveals a trend towards polarisation between East/West in 2001-2005 due to the negative migratory flow into Eastern Europe. In contrast it stresses that regions that have experienced high population growth developed significantly between 1996-1999 and 2001-2005.

The works of art in the Prado Museum in Madrid have made their "high resolution" entry onto the net thanks to a Google Earth project - the major American internet satellite image site. This is a world first according to the initiators of the project. This technological progress enables "access to works of art by anybody anywhere in the world," explains Miguel Zugaza, Prado Director during a presentation. Internet users can see the Garden of Earthly Delights, the famous triyptich by Hieronymus Bosch that is alive with a great number of characters in the tiniest detail or explore the amazing detail of the realism of the Descent from the Cross by Roger van der Weyden. Fourteen pictures from the museum have been put on-line including Las Meninas by Velazquez, The 3rd of May by Francisco Goya, the Three Graces by Pierre Paul Rubens, Artemis by Rembrandt and the Knight with his Hand on his Breast by El Greco.