The first round of the presidential election will take place on 17th May next in Lithuania. Just over 2.5 million voters are to appoint the successor to outgoing Head of State Valdas Adamkus, who is not running again. Seven people are officially running: Dalia Grybauskaite, Algirdas Butkevicius, Valentinas Mazuronis, Kazimiera Danute Prunskiene, Loreta Grauziniene, Ceslovas Jezerkas and Waldemar Tomaszewki. Dalia Grybauskaite is the grand favourite in all the polls in which she easily dominates her adversaries. According to the polls she is due to be elected in the first round on 17th May. The latest poll by RAIT credits Dalia Grybauskaite with 65.5%, Kazimiera Danute Prunskiene 4.2%, Algirdas Butkevicius 3.1%, Waldemar Tomaszewki and Ceslovas Jezerkas 3% each, Loreta Grauziniene 2,5% and Valentinas Mazuronis 1.8%.

The European Institute of Romania and the Embassy of France in Romania are organising a conference in Bucharest on 13th May on the theme of: "The European Institutions at a Crossroads," with the Chairman of the Robert Schuman Foundation, Jean-Dominique Giuliani in attendance. This event is the fourteenth conference since 2007 in the series 'Romania-France - Together in Europe"; the aim is to provide a Franco-Romanian perspective on Romania's integration of Europe.

The 60 members of the Chamber of Representatives, the only Chamber in Parliament, in Luxembourg are to stand for election on 7th June next at the same time as the 6 MEPs. MPs are elected for five years from a proportional list according to the smallest eletoral quota. Luxembourg is divided into four constituencies: South (23 MPs), Centre (21), North (9), and East (7). It is obligatory to vote. Five politicial parties are represented in the outgoing Chamber of Representatives: the Christian Social Party (PCS/CVS) led by Prime Minister Jean-Claude Juncker, the Socialist Workers' Party (POSL/LSAP), member of the outgoing government coalition, the Democratic Party (PD/DP), Dei Greng-the Greens and Action for Democracy and Justice for Pensions (ADR). 452 candidates are running. In addition to the five parties represented there are three other parties (Dei Lenk-The Left, the Communist Party (KPL/PCL) and the Citizens' List). The campaign was launched on 4th May.

On 14th May as part of the "Women in Europe: achieving parity" project piloted by the Robert Schuman Foundation and funded by the European Commission the Ithaka Foundation is organising a debate in Bucharest on the presence of women in politics in Romania.

The Robert Schuman Foundation's new site devoted to the European Elections (www.elections.europeennes.org/en) provides internet users with an interactive map in French and English giving information about all the national lists that are running as well as an analysis of the electoral campaign in each Member States just one month before the election.

French President Nicolas Sarkozy launched the European electoral campaign in France with a speech on 5th May in Nîmes. He called for a voluntarist policy to face the economic crisis and to rise to other challenges. He recommended greater cooperation between EU members; in his opinion "Europe was weak because it was not united enough". The President re-iterated his hostility to "unending enlargement" and to Turkey's membership insisting on the need for a Europe that protects and reassures.

The on-line broadcaster YouTube and the TV channel Euronews launched a new service on 5th May to bring voters and candidates into contact with each other before the European elections on 4th-7th June next. The project "Questions for Europe" is attempting to encourage candidates, voters and experts to enter dialogue by means of on-line videos.

On 10th May French President Nicolas Sarkozy travelled to Germany to discuss the European Elections with German Chancellor Angela Merkel. They warned of a borderless Europe and clearly took a stance against accession to the EU by Turkey, stating their preference for a privileged partnership. The two leaders condemned the opponents of the Lisbon Treaty but who are calling for the enlargement of the European Union. They believe that the Union should be strengthened before any new enlargement is undertaken, so that it can continue to function.

On 4th May the governor of the National Bank of Serbia Radovan Jelasic announced that the country's economic activity suffered a contraction of between 5 and 7% in the first half of 2009. In these conditions and if Serbia does not receive an IMF loan it will be very difficult for it to limit the contraction of its GDP to 2% as forecast in its budget. He said however that the "crisis was not an excuse to create money and therefore inflation." In this respect he agrees with IMF proposals that include a reduction in public spending to limit inflation.

On 7th May the Icelandic Central Bank announced that it was reducing its main policy rate by 2.5 percentage points to 13%, the third reduction in two months just as inflation is slowing greatly on the island. Inflation that rose to a high of 18.6% in January slowed to 11.9% in April and is due to decrease dramatically to return under the goal of 2.5% at the beginning of 2010. The reduction in the rates is slightly more than expected by economists in the Icelandic banks who were counting on a 2 point reduction. On 10th May in a general policy declaration the Icelandic government announced the country's return to budgetary balance in 2013 together with a series of measures to restructure the banking sector.

During an extraordinary meeting on 6th May the Spanish Council of Ministers assessed the Plan to Stimulate the Economy and Employment - the so-called E Plan. According to the government more than 50 billion euros have been injected into the Spanish economy by means of this plan. It is one of the most important financial efforts made by an EU Member State in response to the crisis. Maria Teresa Fernandez de la Vega, Deputy Chairman of the Spanish government said that the plan was effective and that it was helping families, companies (...) to overcome difficult times."

The International Monetary Fund (IMF) approved a flexible credit line (FCL) of 20.5 billion dollars for Poland. The FCL offers countries who benefit from it greater room to manoeuvre than the traditional IMF support programmes. Spending is not affected to specific programmes. Poland will benefit from this programme because of the high economic growth it has experienced over the last few years. The Executive Committee esteems that the FCL will play a major role in supporting the Polish authorities' policies in response to the crisis, that it will stimulate market confidence and place Poland in the best possible position to manage the negative effects of the crisis.

On 7th May the Council of the European Union approved the grant of a 5 billion euro loan to Romania in support of its balance of payments mid term and to face up to present financial difficulties. This loan is part of an overall financial envelope of 20 billion euros. In addition to the Council's participation this envelope is funded to a total of 12.95 billion euros by the IMF, 1 billion euro from the World Bank and one billion euro from the European Investment Bank for Reconstruction and Development. This joint action should help "to reassure the markets about Romania being able to fulfil its foreign obligations" said John Lipsky, the First Deputy Director General of the IMF.

On 8th May the International Monetary Fund drew up an overview of the Ukrainian economic performance after two years of loans facilitated by the so-called Stand-By Arrangement procedure (SBA). The IMF approved the immediate payment of the second part of aid included in this agreement ie around 2.8 billion dollars. The Ukrainian authorities' priority is to restore confidence in the banking system whilst continuing to work with the IMF.

On 7th May the ECB decided to reduce its main interest rate to a new record of 1% and announced an obligations purchase programme to stimulate the economy. The Council of Governors of the European Central Bank dedided to reduce the main interest rate for the seventh time since October - the latter is used as a credit gauge in the euro area. As expected the reduction totalled a quarter of a point and since the start of the cycle it has reached 3.25 percentage points. The new reduction did not surprise experts, contrary to the announcement of the secure obligations purchase programme in euros to a total of 60 billion euro. The technical means for these purchases will be revealed after the next meeting on 4th June said the ECB Chairman.

On 7th May the Central Bank of Denmark decided to reduce its main interest rates by 0.35 percentage points bringing them down to 1.65% in the wake of the 0.25% reduction by the European Central Bank (ECB) and because of strong currency reserves at the bank. The repo rate and that on savings has dropped from 2.0% to 1.65% starting on 11th May ie the lowest level ever recorded since the creation of the bank in 1818. The emissions institution stressed in a press release that it had decided to reduce the difference between the ECB rates by an additional 0.10 point after the "purchase of currency on the market".

The Czech National Bank indicated on 7th May in Prague that it was expecting a decline of -2.4% in the GDP at the end of the financial year 2009, due to the present crisis and then a rise of 1.4% in 2010. According to CNB governor Zdenek Tuma the bank was forecasting a "major decline" in the GDP in the first quarter of this year.

On 7th May the European Bank for Reconstruction and Development (EBRD) forecast an average 5.2% GDP ncontraction for countries in its activity zone (mainly the former Soviet bloc) this year after growth of 4.2% in 2008. In January the bank was still forecasting growth of 0.1% of these economies. In 2007 the GDP of the latter grew by 6.9%.

During a summit in Prague on 7th May the President of the Council of the EU Mirek Topolanek and the President of the Commission José Manuel Barroso launched the Eastern Partnership between the EU and six neighbouring countries: Armenia, Azerbaijan, Belarus, Georgia, Moldova and Ukraine. The project aims to promote stability in the region, ensure Europe's energy supplies and stimulate democratic reform in these six countries. As part of the partnership the EU has released a total of 600 million euros over four years to enable indepth economic integration of these eastern countries in the common market. As for the issues raised by Russia Mirek Topolanek stressed that the "Eastern Partnership did not correspond either to the re-establishment of blocs nor to a competition to master a sphere of influence."

The meeting at the EU and the Southern Corridor States summit took place in Prague on 8th May. It presented an opportunity for the President of the Council of the EU, Mirek Topolanek, President of the European Commission, José Manuel Barroso, the Presidents of Azerbaijan, Georgia, Turkey and the Oil Minister of Egypt to sign a joint declaration that is due to become the foundation of closer cooperation between these regions and between various States. "The Southern Corridor is to become a two-way means of transit for the trade of merchandise, investments, knowledge and people, a kind of modern analogy with the Silk Road."

The Parliament and the Council agreed on vital details in the "Telecoms Package" such as consumer rights and the protection of private life. But the restriction of internet access is still a source of disagreement. Hence Parliament confirmed on 6th May its opposition to any cuts in internet access without a prior court decision. With 407 votes in favour, 57 against and 101 abstentions MEPs re-introduced on 2nd reading an amendment stipluating that internet users' fundamental rights could not be restricted "without a prior decision on the part of the legal authorities". Rapporteur Catherine Trautmann (PSE, FR) recalled that "as soon as any part of the compromise is not adopted, the entire package has to go to conciliation."

MEPs adopted a negotiated legislative proposal, 454 votes in favour, 106 against and 25 abstentions based on the report by Othmar Karas (EPP-ED, AT), that aims to modify the directives relative to "requirements in terms of captial". It is a question of increasing transparency and improving the monitoring of the financial system to guarantee appropriate risk management in the banking sector. MEPs voted for the establishment of "monitoring colleges" designed to facilitate cooperation between national authorities responsible for the surveillance of cross-border financial establishments, a transitory measure in expectation of a more integrated surveillance system. The national governments are to then transpose the proposed legislation by 31st October 2010 and observe new measures in 2011.

On 7th May MEPs demanded more humanity to be included in the asylum policy, which is still extremely restrictive in the EU. They approved a series of proposals designed "improve the running of the asylum system and seekers' rights. The asylum policy is a competence exclusive to national governments. One of the recommendations approved by MEPs governs the placement of asylum seekers in detention. MEPs asked that this should be "considered case by case" and it should not "take place in prisons". "Legal guarantees against arbitrary detention should be established and the detention of minors should be prohibited," they insisted.

On 6th May MEPs approved by 538 votes in favour, 35 against and 37 abstentions a negotiated compromise prior to the Council that aims to extend the scope of the European Globalisation Adjustment Fund to situations associated with the economic and financial crisis. The aim of the compromise is effectively to support workers who have lost their jobs due to the crisis. Member States that call for help from the EGAF will have to establish that there "is a direct link between the dismissals and the financial and economic crisis." This dispensation will apply to all requests submitted before 31st December 2011.

On 5th May the European Commission launched an on-line portal called "eYouGuide" that provides European consumers with information on their rights when they surf the net. The guide was born of a request on the part of the European Parliament to provide practical advice for on-line purchasing, downloading musical recordings, personal data protection and socialistion sites. Given that most European internet users do not dare undertake transactions on-line "eYouGuide" is to enhance consumer confidence with regard to internet security thereby aiding the full use of the on-line market's economic potential.

On 7th May the European Commission set out clear guidance for EU telecoms regulators on the cost-based method to be used when calculating termination rates – the wholesale fees charged by operators to connect the call from another operator's network which are part of everyone's phone bill. The guidance is in the form of a "Recommendation" that national regulators are obliged to take "the utmost account" of. The Recommendation indicates specifically that termination rates at national level should be based only on the real costs that an efficient operator incurs to establish the connection. Eliminating price distortions between phone operators across the EU will lower consumer prices for voice calls within and between Member States, saving business and household customers at least €2 billion in 2009-2012, and help investment and innovation in the entire telecoms sector.

The 27 Chiefs of Staff of the EU armies met in Brussels on 5th May under the chairmanship of French General Henri Bentégeat, chair of the EU military committee (EUMC); they examined progress in military operations that are being managed at present by the EU and which are designed to improve European military capabilities. In addition to this the EUMC agreed to recommend Dutch General Tom Van Osch as the next director general of the Chief of Staff of the EU as from spring 2010. The final decision will be taken by the Council.

On 4th May during the EU-Japanese summit European and Japanese leaders re-iterated their hope to continue to play a leading role for example by working towards recovery for the world economy and looking into climate change, by achieving the Millenium Objectives for Development, more specifically with regard to the development of Africa as well as supporting the maintenance of peace and international security.

On 6th May during the EU-Canada Summit Canadian Prime Minister Stephen Harper, the President of the European Commission José Manuel Barroso, the High Representative for the Common Foreign and Security Policy Javier Solana and Czech Prime Minister Mirek Topolanek discussed the economic and financial crisis, energy security, climate change and foreign policy. They welcomed the application of the air transport agreement that enables direct flights between all points in the EU and Canada. In addition to this and in spite of a fundamental disagreement on seal products the EU and Canada came to an agreement on an economic partnership that includes the liberalisation in the trade of their goods and services. In a joint declaration the leaders maintained their will to "enhance and deepen the strategic partnership".

The 16 Finance Ministers of the Euro Area met in Brussels on 4th May and looked into the zone's economic and financial situation on the basis of economic forecasts made by the European Commission and published on the same day. Member States of the Euro Area unanimously agreed with the Commission's conclusions, notably with regard to economic slowing now evaluated at -4% in 2009 and -0.1% in 2010 for the entire Euro Area. Eurogroup Chair Jean-Claude Juncker believes that the greatest concern lies in the significant rise in unemployment, the estimated rates of which are to rise to 9.9% in 2009 and 11.5% in 2010. He forecasts a "social crisis" in Europe, which could be "potentially" explosive due to the sharp rise in unemployment and demanded that companies avoid massive dismissals.

The German government that will take over the presidency of the EUREKA (technological cooperation in Europe) initiative on July 1st wants provide new impetus to innovation in SME's by relaunching the Eurostars programme. Adopted in the spring of 2008 by the Council and the European Parliament this programme support SME competitiveness. It facilitates access to innovation by supporting cooperation projects in R&D associating partners from several countries. Companies define the projects themselves as close to the market and to their requirements as possible. The programme has an envelope of 300 million euros to do this - spread over the period 2008-2013 including 100 million euros from the European Commission.

German industrial orders rose again in March after six months of decline according to figures published on 7th May which leads to analysts' hope that the worst of the economic crisis is over. According to a press release by the Economy Ministry figures increased by 3.3% in one month - when in fact analysts of UniCredit had been forecasting a decline of 0.5%. The ministry believes that this is good news. Although the recovery in March cannot compensate the decline of recent months entirely it shows however that "hope of stabilisation can grow".

On 5th May the Spanish Employment Services totalled 39,478 more unemployed since April ie an increase of 1.09% in comparison with the last month. The Secretary General for Employment Maravillas Rojo said that this "increase in unemployment is more moderate than over the last nine months." In spite of this slowing trend it is impossible to talk of a real change on the employment market.

On 8th May the interim government piloted by Jan Fischer replaced the outgoing government led by Mirek Topolanek overthrown by a protest vote on the part of Czech MPs. Comprising experts and non-aligned civil servants the Fischer government also has to manage the last weeks of the six-monthly presidency of the EU before Sweden takes over on 1st July next. After announcing the make up of his government Mr Fischer gave an interview to indicate what his task was in time for the early general elections that will take place in October.

According to figures published by Eurostat on 5th May the industrial price index declined by 0.7% in the euro area and by 0.8% in the European Union in comparison with February 2009. In February prices decreased respectively by 0.4% and 0.3%. In comparison with March 2008 industrial production prices decreased by 3.1% in the euro area and by 2.3% in the EU.

According to Eurostat figures published on May 6th the volume of retail trade sales declined by 0.6% in the euro area and by 0.3% in the EU in comparison with February 2009. In February retail trade decreased respectively by 0.3% and 0.8%. In comparison with March 2008 sales declined by 4.2% in the euro area and by 3.1% in the EU.

According to Eurostat figures published on 8th May in 2008 there were nearly 240,000 asylum applicants registered in the EU, or 480 applicants per million inhabitants. The main countries of citizenship of these applicants were Iraq (29,000 or 12% of the total number of applicants), Russia (21,100 or 9%), Somalia (14,300 or 6%), Serbia (13,600 or 6%) and Afghanistan (12,600 or 5%). In 2008, among the Member States for which data are available, the highest number of applicants were registered in France (41,800 applicants). The United Kingdom recorded 30,500 applicants, however this figure covers only new applicants. Germany (26,900), Sweden (24,900), Greece (19,900), Belgium (15,900) and the Netherlands (15,300) followed. When compared with the population of each Member State, the highest rates of applicants registered were recorded in Malta (6,350 applicants per million inhabitants), Cyprus (4,370), Sweden (2,710), Greece (1,775), Austria (1,530) and Belgium (1,495).

The German Society for Foreign Policy (DGAP) has just published a study entitled "Schluss mit den Alleingängen" (Down with Individualism). Marcel Viëtor believes that energy dependence between the EU and Russia is due to continue - in the short term at least. Both parties should cooperate and stop developing projects individually. The latter are indeed destined to fail because it is impossible to integrate the other partner in the project after the fact as was the case for example with the European Energy Charter, "the new legal framework document" issued by Russia and the network modernisation agreement with regard to gas/oil pipelines in Ukraine.

The Centre for International Political Economy (ECIPE) recently published a study on the European Commission's anti-dumping measures. The report analyses 10 recent cases and shows that the Commission often supposes that there has been an infringement of the anti-dumping regulation without effecting a prior inquiry. The study shows that the Commission has already enforced unjustified fines in several instances. Because of this the author advises on the creation of an independent anti-dumping authority.

On 6th May the Hungarian Central Statistics Office (HCSO) published a statistical study of the population of 48 countries in Europe. The study revealed that Russia is the most populated country and the only one to have more than 100 million inhabitants. It is followed by Germany, Turkey, France and the UK. The population of the 27 Member States lies at 497 million whilst that of Hungary with a population of over 10 million lies 16th out of the 48 countries in the ranking.

On 7th May the European Court of Auditors presented its annual report providing an overview of the Court's activities, the resources used and what has been achieved. In reference to expertise which certifies that the Court can undertake its work quite independently and objectively the report draws up a positive view. Hence for the first time the Court was able to issue a "favourable" opinion with regard to the reliability of the EU's accounts in 2007. The report also looks at the Court's new auditing strategy that aims to maximise the effect of its audits and to improve efficiency. According to the Chairman the Court's role has become increasingly important during this time of economic crisis because it ensures the judicious use of limited resources and the respect of transparency, which is vital in enhancing citizens' confidence.

The Staedel Museum in Frankfurt is organising an exhibition on 7th June on the drawings of Michelangelo. This major Italian architect of the Renaissance is known above all for his sculptures, frescoes and his buildings. Many drawings by Michelangelo were burned, some were never signed. This unique exhibition brings together most of his drawings and explains which are attributed to him.

On 16th May and for the fifth year running the European Museum Nights will take place. On this occasion more than 2000 museums will be open across Europe. Many European institutions, organisations and associations join in the Museum Night in Europe. For the first time the Director General of UNESCO Koïchiro Matsuura agreed to the organisation's patronage of the 2009 event because it works for the development of museums and falls in line with UNESCO's objective in terms of cultural promotion.