Outgoing Slovakian President Ivan Gasparovic, edged ahead in the first round of the Presidential election in Slovakia with 46.7% of the vote in the face of Iveta Radicova, 38%, according to the final results which were published by the Central Elections Committee. A second round is planned for 4th April since the turn out rate was insufficient (44%): to be elected in the first round more than half of the votes of the four million registered had to be won. According to local forecasts in the second round Iveta Radicova may benefit from a major transfer of votes collated from the five other candidates.

The candidate put forward by the present Prime Minister Nikola Gruevski -Revolutionary Organisation-Democratic Party for National Unity (VMRO-DPMNE), Gjorgji Ivanov won the first round of the presidential election in Macedonia on 22nd March. He won 35.04% of the vote. He came out ahead of Ljubomir Frckoski, former Home and Foreign Affairs Minister, who has the support of the main opposition party, the Social Democratic Union (SDSM) and the New Social Democratic Party (NSDP) who won 20.4% of the vote. A second round will bring the two men face to face on 5th April next.

The Montenegrins are being called to vote on 29th March for early general elections (the mandate was due to come to an end in a year's time). Six coalitions and eight parties are running. The most recent poll by CEDEM credits the coalition "European Montenegro" with 51.2% of the vote, the Socialist People's Party (SNP) with 16.8%, New Democracy 12% and the Movement for Change 6.3%.

Icelanders will be going to ballot on 25th April to renew the 63 members of the Parliament (Althing), two years before the end of the government's term in office. Indeed the world financial and economic crisis has literally ruined Iceland. Five parties are represented in the Althing at present: the Independence Party (SJ), that has dominated political life for the last fifteen years; the Social Democratic Alliance (SF) of Prime Minister Johanna Sigurdardottir; the Progress Party (SF); the Left Movement-Greens (VG); the Liberal Party (XF). Two new parties have been formed: the Civic Movement and the Anti-European Union List. According to the most recent poll most Icelanders want the government formed by the Social Democratic Alliance and the Left Movement-Greens to continue its work (54.2%). Another poll credits 31.2% to the Social Democratic Alliance, 26.5% to the Independence Party, 24.6% to the Left Movement-Greens and 12% to the Progress Party.

In an editorial published on his site Jean-Dominique Giuliani, Chairman of the Robert Schuman Foundation welcomes the return in strength of Franco-German dialogue that led to results during the European Council on 19th and 20th March; this means that new impetus will be given to the G20 meeting on 2nd April and the EU's management of the crisis.

On 16th March the Russian government revealed eight proposals in view of the G20 summit that is to take place in London at the beginning of April. The Kremlin is notably suggesting the adoption of macro-economic and common budgetary standards by all countries which are economically influential and the establishment of a world framework to regulate the financial system. Given that the number of currencies serving as reserves in the central banks is not enough, Moscow believes it necessary to increase and establish "a supra-national reserve currency". Russia also thinks that the IMF's role should be increased and that aid to poor countries be better coordinated.

In a letter addressed on 17th March to the President of the European Commission, José Manuel Barroso and to the president in office of the Council, Mirek Topolanek, German Chancellor Angela Merkel and the French President Nicolas Sarkozy called on the European Union to defend a joint position during the G20 on 2nd April in view of "building a new global financial architecture". They say they are "determined to achieve (...) concrete results to enhance international financial regulation." They are calling for "greater effort to be made towards achieving stability, transparency and supervision" with regard to the financial sector. They are supporting proposals for reform put forward in the Larosière report that is to be used as a basis for the establishment of a "European regulatory framework" that will help towards "the development of international standards." This notably focuses on a European organisation to detect dangers weighing over the stability of the financial system.

0n 19th March the IMF declared that in 2009 the world GDP would record its first contraction since the Second World War which it estimates at between -0.5% and -1%. The IMF believes that this worsening justified rich and emerging countries taking new steps against the crisis. Advanced economies should experience "deep recession" with a decline of 3% to 3.5% of their GDP. In the euro area the GDP will decline by 3.2%.

In a paper published on 19th March the rating agency Standard and Poor's believes that as a whole the euro area is less threatened by deflation than the rest of Europe. The dangers of long term price decreases that undermine the economy vary from one European country to another; Standard and Poor's says that the danger of deflation is high in the UK, Ireland and Spain.

According to the economic paper published by the INSEE on 17th March France is due to slide slightly more into recession with a plummeting GDP in the first quarter of 2009. After a GDP decline of -1.2% in the fourth quarter of 2008 the French economy is due lose a further -1.5% in the first quarter. The decline of the GDP is due to settle in the second quarter (-0.6%), since the recovery plans will help to limit the effects of the international crisis.

The recession gathered pace in the first quarter in Germany due to the collapse of exports on which this country is greatly dependent, said the Finance Minister in his monthly report on 20th March: "Indicators show overall that the GDP has declined at a greater rate than in the first quarter of 2009" and that "the recession has grown in Germany". In the fourth quarter of 2008 the GDP of Europe's leading economy shrank by 2.1%. The only ray of hope according to the March report: that the implementation of the recovery plan decided upon in January by the government will produce "its initial results".

The number of housing purchases in Spain, a country that has been hard hit by the economic crisis and the collapse of its real estate bubble, fell by 38.6% over one year, said the National Statistics Institute on 17th March. According to a press release "housing purchases have dropped by 38.6% in comparison with the same month of the previous year". However the number of housing purchases in January, 37,931 increased by 17.1% in comparison with December.

On 18th March the Italian banking group UniCredit announced that its net profit in 2008 had decreased, especially in the fourth quarter and asked to be able to benefit from the Italian support plans and the Austrian programme to enhance its own funds. UniCredit is the most badly affected Italian bank by the financial crisis. Its net profit declined by 38% in 2008 to 4,012 billion euros, in line with its forecasts and by 56.9% over the fourth quarter to 505 million euros because of the effects of the crisis on its market related activities. On 20th March the Italian bank Intesa Sanpaolo which suffered a heavy loss in the fourth quarter of 2008, announced that it was going to ask to take advantage of the government bank support plan to a total of 4 billion euros. The bank suffered a net loss of 1,225 billion euros over the last three months of the year in comparison with a net profit of 504 million euros a year earlier, says the establishment in a press release.

The Netherlands is experiencing a "deep recession" according to the Dutch Central Planning Bureau which confirmed its forecasts on 17th March whereby the GDP in the Netherlands are due to shrink by 3.5% in 2009 and by 0.25% in 2010. "The serious world recession is affecting the Netherlands in terms of its exports that have always been the driving force behind the Dutch economy," added the CPB. The CPB is forecasting two of the recession's immediate effects. Unemployment is due to reach 5.5% in 2009 (in comparison with 4% in 2008) and 8.75% in 2010. The public deficit is due "worsen sharply": reaching 5.6% of the GDP in 2010, in comparison with a 1% GDP surplus in 2008.

During the European Council on 19th and 20th March the 27 Heads of State and Government discussed the EU's energy security that is to be developed with a dual goal of solidarity and responsibility in mind. They also spoke of the Copenhagen Conference on climate change recalling the need to work globally and to create a world carbon market. The EU said it was ready to take on its financial participation in work undertaken by developing countries to help them fight against global warming without putting figures on this for the time being. This aid has already been estimated at 30 billion euro by the Commission. The 27 leaders finally agreed to review this issue during the next European Council in June.

On 20th March the 27 Heads of State and Government approved the establishment of an Eastern Partnership with regard to relations linking the the EU to six of its eastern neighbours (Armenia, Azerbaijan, Belarus, Georgia, Moldova and Ukraine). This new cooperation framework offers the long term abolition of visa obligations (under certain conditions); it hopes to promote stability and prosperity and to emphasise democratic values and transformation. 600 million euro will be dedicated to this plan. The Eastern Partnership will be officially launched in Prague on 7th May. In addition to this the 27 Heads of State and Government discussed the state of progress of the Lisbon Treaty and will look at this issue again during their meeting in June. They re-iterated the strategic importance of trans-Atlantic relations and discussed the EU-USA summit that will take place in Prague on 5th April.

New rules on air transport were adopted on 18th March to shorten total flight times and to reduce fuel consumption and emissions. This is the result of an agreement between the European Parliament and the Member States by the Czech Presidency. "The main objective of the new rules is to set up an efficient EU aviation system that will guarantee the level of safety needed and will make the best use of air space capacity." "The rules will put an end to the fragmentation of air traffic and will improve and unify air traffic management technologies."

On the occasion of the 33rd anniversary of the International Pact on Civil and Political Rights the Czech Presidency published a declaration by the Presidency on behalf of the EU on 18th March with regard to the human rights situation in Iran. Whilst welcoming the progress achieved by the Iranian people in the social domain as well as education and culture the EU would like to express its concern about the infringements made by the Islamic Republic of Iran with regard to the International Pact on Civil and Political Rights which it has both signed and ratified. Amongst the infringements feature arbitrary arrests, harassment and other repressive measures taken against a certain number of women's rights militants who signed the petition, "A million signatures" and the Maydaan Movement.

The 5th Plenary Session of the Euro-Mediterranean Parliamentary Assembly (EMPA) took place from 15th to 17th March. The situation in the Middle East was the heart of the debate. The EMPA provided its support to the Arab peace initiative and to the work in view of an inter-Palestinian reconciliation; it requested the freezing of all colonisation and called for the freeing of prisoners on both sides. Parliamentarians said that infringements of international law in Gaza should be the focus of an inquiry. Finally the EMPA made recommendations on the economy, energy and women's rights.

On 18th March the Commission adopted two ecodesign regulations to improve the energy efficiency of household lamps and of office, street and industrial lighting products. The two regulations lay down energy efficiency requirements which will save close to 80 TWh by 2020 (roughly the electricity consumption of Belgium, or of 23 million European households, or the equivalent of the yearly output of 20 power stations of 500 megawatts) and will lead to a reduction of about 32 million tons of CO2 emission per year. Inefficient incandescent light bulbs will be progressively replaced by improved alternatives starting in 2009 and finishing at the end of 2012. As a result of these regulations, 11 billion euros are expected to be saved and re-injected every year into the European economy.

On 20th March the Commission adopted a proposal for a Council Decision to extend the scope of application of the 1990 customs agreement between the EU and Switzerland in order to bring it in line with the new EC security measures on goods transport. The proposed agreement will waive the obligation for traders to provide customs with advance electronic information for security purposes in the bilateral trade between Switzerland and the EU. Meanwhile, in trade with third countries, Switzerland will implement customs security measures equivalent to those in the EU. This will ensure both smooth trade flows between Switzerland and the EU and a high level of security in the supply chain.

The CDU (Christian Democratic Union) published its programme on 16th March with regard to the European elections, in which it provides its support for the re-election of José Manuel Barroso as head of the European Commission. This programme focuses on five main themes: economic growth and employment, Europe's influence in the world, the stability of the euro and its funding, the internal and external security of the EU and finally the strengthening of the Union and the implementation of the subsidiarity principle. The CDU notably believes that its European identity and its institutions should be enhanced before any new members are accepted, Croatia excepted. The CDU's slogan is "A strong Europe for a safer future".

On 17th March the Parliament revealed its campaign strategy for the European elections in June 2009. The two Vice-Presidents of the European Parliament Alejo Vidal-Quadras (EPP-ED, ES) and Mechtild Rothe (PES, DE) presented several tools that will be used during the electoral campaign and the aim of which is to show how citizens can influence effective decisions by their vote.

The Central Commission of the Austrian Parliament decided on 17th March that the upcoming European elections will take place on 7th June. For the fourth time the Austrians will be electing their representatives in the European Parliament who will total 17. With the Lisbon Treaty Austria will have 19 MEPs. For the first time all citizens aged 16 and over will be able to vote. Green MP Ulrike Lunacek, suggested the modification of the procedure employed to appoint an Austrian candidate to the post of commissioner: the government is suggesting a "trio" which would then be the subject of a hearing within the Central Commission at the Austrian Parliament.

The German railway company Deutsche Bahn said on 22nd March that there were to be investments of over 11 billion euro in its infrastructures over 2009-2010 provided mainly by the Federal State. These investments will be used primarily to renovate small and medium sized stations as well as urban lines and to develop lines and hubs of communication.

The European Commission has asked explanations on the part of France in the decision of car manufacturer Renault to relocate some of its productioin from Slovenia to France after receiving state aid in exchange for a promise not to shut French plants or axe French jobs - as announced by French Secretary of State to Industry Luc Chatel on 20th March. This information is in total contradiction with the letter that Luc Chatel sent some weeks ago to Nellie Kroes, European Commissioner for Competitiveness in which he indicated that there was no link between aid in the automotive plan and the place where the cars were produced.

The unemployment rate rose to 6.9% of the working population in the fourth quarter of 2008 in Italy ie the highest level since the second quarter of 2006; the crisis has led to the disappearance of many jobs said Istat on 20th March. According to seasonally corrected data the unemployment rate rose to 6.9% over the last three months of 2008 in comparison with 6.7% in the third quarter says the National Statistics Institute. In gross figures unemployment has risen sharply to 7.1% in comparison with 6.1% in the third quarter. The number of people looking for jobs lay at 1.775 million at the end of the fourth quarter in gross data ie 248,000 more than in the third quarter.

In February a record number (70%)of Czechs said they were against the installation of a radar designed to complete the American anti-missile shield in their country in comparison with 65% a month earlier according to a survey by the official institute CVVM, which was published on 19th March. According to this survey 42% of the Czechs say they are "totally against" the radar and 28% "somewhat against" it. However one quarter of those interviewed (25%) say they support the project including only 7 in 100 who support it "resolutely". "Results since 2006 show that the Czechs are constantly in disagreement with the project - 61% minimum and 70% maximum," said the CVVM. The survey was undertaken between 2nd and 9th February amongst 1,133 Czechs aged fifteen and over. Around three Czechs in four (72%) believe that the issue should be the subject of a referendum, contrary to the government decision of liberal Prime Minister Mirek Topolanek, who opted for the parliamentary vote.

Car production in the UK fell by 59% over one year in February - the collapse witnessed over the previous months continued said the Society of Motor Manufacturers and Traders Ltd, SMMT on 20th March. The number of cars produced in the country fell to 59,777 units per month including 78% of which were earmarked for export said the professional organisation in a press release. Industrial car and commercial vehicle production fell by 71.6%. The SMMT, which thinks the aid given to the sector by the British government is inadequate, took the opportunity of repeating its request for the establishment of a vehicle scrappage scheme in the ilk of most other European countries.

On 16th March Ian Micallef, the President of Congress of Local and Regional Authorities of the Council of Europe invited Azerbaijan to postpone the referendum on the amendments to the Constitution on 18th March. According to the Congress the planned amendments are not in line with European democratic standards. The Azerbaijanis voted by referendum on 18th March in favour of lifting the limitation of two terms in office for the presidential office thereby opening the way for the Aliev family to continue its hold on power. The Azerbaijani opposition denounced the results of the referendum on 19th March and said that it intended to take the affair to court.

According to figures published by Eurostat on 16th March the annual inflation rate of the euro area was 1.2% in February 2009 in comparison with 1.1% in January 2009 and 3.3% in 2008. The monthly inflation rate was 0.4% in February 2009. In February 2009 the lowest annual rates were seen in Ireland and Portugal (0.1%) as well as in Cyprus (0.6%) and the highest were in Latvia (9.4%), Lithuania (8.5%) and in Romania (6.9%).

In January 2009 compared with December 2008, seasonally adjusted industrial production fell by 3,5% in the euro area and by 2,9% in the EU. In December production decreased by 2,7% in both zones. In January 2009 compared with January 2008, industrial production declined by 17,3% in the euro area and by 16,3% in the EU.

On 16th March the Bruegel Institute published a study entitled "Beau temps contre mauvais temps - la gouvernance dans la zone euro" (Good weather against bad - governance in the euro area). Authors Jean-Pisari Ferry and André Sapir believe that the euro is an attractive currrency as long as the economic situation is stable. The world financial crisis is a test for the single currency and a chance to show that it is stable.

The Centre for European Reform (CER) has published a study on EU-Russia relations in Bosnia-Herzegovina. Author Thomas Valasek shows that in spite of Euro-Russian co-operation between 2007-2008 Russian leaders encouraged the Bosnians not to accept the reforms set by the EU in the country's European integration process. He encourages the EU to replace the multi-national mission that is supervising Bosnia-Herzegovina in order to put an end to these practices.

The German Society for Foreign Policy (DGAP) has just published a study entitled "Zwischen Wirtschaftswunder and Extremismus" (Between economic miracle and extremism) dedicated to Slovakia that entered the euro area on 1st January 2009. Against all expectations the economic development of this country has continued under the government of Robet Fico who is considered a populist. However behind this "economic miracle" some aspects may be the cause for concern: the decrease in public expenditure by way of radical tax reductions that have led to an increase in social differences, the domination of the car industry during the crisis and the terrible lack of qualified labour.

The Grand Palais in Paris is dedicating an exhibition to the "Grande Monde d'Andy Warhol" until 13th July 2009. More than 250 portraits are on show. With this series Warhol draws a complete picture of society and establishes a new form of artistic, serial, almost industrial production.