Since the Moldovan Parliament failed to elect the President of the Republic before 4th June, outgoing Head of State Vladimir Voronin (Communist Party, PCRM) dissolved Parliament on 15th June and convened early general elections for 29th July next. The Parliament's first mission will be to elect a new Moldovan president that it did not succeed in doing because it did not achieve a majority.

In France, household consumption rose by 1.4% in June according to INSEE statistics published on 22nd July. This figure, which is better than forecast, follows a slight decline recorded the previous month. Over the second half of the year the rise in consumption was 0.7%. In spite of the rise in unemployment the French seem to be continuing their purchases, notably cars (-0.2% after +2.5% in May) and goods to equip their homes (+0.3% after 0.8%). Consumer spending on white goods also rose (+1.3% after 0.7% in May).

The Icelandic State announced on 20th July that it would re-inject 270 billion krona (1.5 billion euros) into the three main Icelandic, nationalised banks as a matter of urgency in October because of the international financial crisis. The agreement that was preceded by several weeks of negotiations with the banks' creditors has to be applied on 14th August via the issue of new bonds. It is planning for the return of almost all the capital of both banks Islandsbanki (ex-Glitnir) and New Kaupthing to private shareholders even if the State stays in the administrative board. The restructuration of the banking sector is seen by the government as the key to economic recovery in Iceland which has to honour several billion euros in loans undertaken with the IMF amongst others.

According to figures published by the Croatian National Statistics Institute on 21st July industrial production slowed by 10.2% in the first half of 2009 in comparison with the same period the previous year. Just in June volumes decreased by 13.7% in comparison with June 2008. The manufacturing industry that employs around 90% of all employees in Croatian industry recorded a contraction of 12.1% over the first six months of the year. The pharmaceutical (-44.7%), tobacco (-32.4%) and furniture (-25.7%) sectors were the most affected. The country is being heavily hit by the economic and financial crisis and the government is reckoning on a GDP decline of 4.5% in 2009.

According to the Central Irish Statistics Office (CSO) manufactured goods' prices dropped by 0.2% in June 2009 and rose by 0.1% year on year on. In June the most significant reductions involved pharmaceutical and chemical goods, office equipment and computers. Over one year these products have risen in price likewise bread and pastries. However milk products, meat and basic chemical products have decreased in price.

During a press conference on 21st July British Prime Minister Gordon Brown spoke of "strong decisions" taken by the UK to face the recession and reduce its impact. The last few months have been difficult for the country but the government has implemented many measures to help businesses and citizens. He also warned against "being complacent" about the state of the world economy and said that a return to growth could not be taken for granted. On the same day the National Statistics Office announced a public deficit of 9.9 billion pounds more than the previous year in June. In addition to this the British GDP contracted by 0.8% in the second quarter in comparison with the first and by 5.6% over the year; figures are worse than forecast and reveal the worst annual contraction since the first statistics were issued in 1955, according to figures published on 24th July by the National Statistics Office.

The economic crisis is worsening in Eastern Europe, said Thomas Mirow, the BERD chairman in Vienna on 24th July - the institution is now forecasting a recession over 5% in 2009 in the region. In May the European Bank for Reconstruction and Development was reckoning on average decline of 5% in the GDP in the area but Thomas Mirow announced that the EBRD was soon to publish more pessimistic estimates. Developments are not as good as forecast especially in Russia and Ukraine according to the EBRD chairman. In all areas failure to reimburse loans should grow as the economic situations worsens.

On 24th and 25th July during an informal meeting in Sweden the 27 European Environment Ministers focused on issues that will be debated this autumn during the UN conference on climate in Copenhagen. "The EU has shown the way by presenting the most ambitious goals ever put forward by a group of countries. In Copenhagen we shall be the leaders in accelerating the pace of negotiations," declared Andreas Carlgren, Swedish Environment Minister. The Heads of State and government decided that the Union would commit to a 30% reduction in its emissions in comparison with 1990 by 2020. In addition to this the Commissioner for the Environment Stavros Dimas presented a report on the funding of these projects and said that "short term the developing countries were the ones in need of most aid."

On 22nd July the European Commission adopted concrete proposals to tackle Alzheimer's disease, dementias and other neurodegenerative conditions. These shared health and social challenges in Europe call for coordinated actions to ensure efficient prevention, diagnosis, treatment and care for those affected. In addition, European countries are also invited to pool their resources and better coordinate their research efforts in the field of neurodegenerative diseases, and Alzheimer's in particular, by programming their research investments jointly for the first time, instead of each separately. There are currently over seven million people with Alzheimer's disease and related disorders in Europe and it is predicted that this number will double in the next 20 years.EU Health Commissioner Androulla Vassiliou said: "Losing mental capacity to dementia is not just a normal part of getting older. As the European population ages, we must work together to better understand and prevent these conditions. We must show our solidarity to people with dementia by sharing best practice in caring for them and respecting their rights and dignity."

On 23rd July the European Commission published guidelines on public aid for the restructuration of banks in Europe. It adopted a communication that explains the method adopted to improve restructuration aid. This is based on three fundamental principles. Banks that are helped have to be made viable long term without enjoying any additional state aid. These banks and their owners must take on a fair share of the restructuration costs. Finally structural measures (relinquishment of assets or restrictions with regard to acquisitions for example) should be taken to limit any distorsion in competition in the single market. These new guidelines will be applicable as from 31st December 2010.

On 22nd July the Commission presented its fifth progress report with regard to judicial reform and the fight against corruption in Romania and Bulgaria. The pace of reform has increased in both countries and positive measures have been adopted taking on board the concerns raised in the previous reports. The changes that have started are still deemed inadequate and the report denounces the lack of political will in general in the effective fight against corruption. The report ends with a list of recommendations for both States inviting them to continue work in these areas.

The project to bring the two German car manufacturers, Volkswagen and Porsche, into closer collaboration moved into a new phase on 23rd July. After its supervisory board Porsche announced the departure of the chairman, Wendelin Wiedeking and its financial director, Holger Härter. The group also announced that it would initiate an increase in capital of at least five billion euros. For its part Volkswagen said that after its supervisory boardit would take shares in Porsche AG. This rapprochement should lead to a merger between Volkswagen and Porsche SE, giving rise to a new, integrated car group that would offer ten brands on the market by mid 2011. Martin Winterkorn, chairman of the VW board said that Porsche would remain an independent brand within the Volkswagen group as is the case at present for Audi.

The Spanish government released one billion euros on 24th July to the tourism sector, a vital activity in the struggling Spanish economy. Tourism generates 11% of the Spanish GDP and employs two million people recalled the head of government, José Luis Rodriguez Zapatero after an exceptional council of ministers organised in Palma, Majorca. The main measure comprises the opening of a credit line of 500 million euros to tourist companies in the hope of restoring their equipment for example to save water and energy or to promote new technologies.

Unemployment continued to increase in the second quarter in Spain according to figures published on 24th July. A total of 4.137 million people were unemployed at the end of June ie 126,700 more than three months earlier, according to the National Statistics Institute (INE). The unemployment rate lies at 17.9%, an EU record. These figures bear witness to a slowing in the inrease in comparison with the start of year when the rate rose from 13.91% of the working population in December to 17.36% in March.

The seven Defence Ministers of the countries involved in the military transport plane programme, the A400M, who met in Castellet on 24th July signed a joint declaration confirming their desire to continue working on the programme. Launched by Belgium, UK, France, Germany, Luxembourg, Spain and Turkey the A400M has experienced several delays, with EADS indicating that it could not honour the 31st March deadline set for the inaugural flight. The contract ordering the machine was re-negotiated with Airbus Military, the programme's manager, and a final signature might be occur at the beginning of 2010 according to Hervé Morin, the French Defence Minister.

The chairman of Enea (the Italian National Agency for new technologies, energy and environment) Luigi Paganetto and the Director General of the CEA (Commissariat à l'Energie Atomique), Bernard Bigot signed a cooperation agreement on 22nd July in the sector of research on nuclear energy and renewable energies. The contract signed between the two institutions is the first stage in the implementation of an agreement signed on 24th Februray by the Italian and French governments. This plans for scientific and technical collaboration to develop fourth generation reactors, for research on rapid neutron reactors and the fuel cycle. It also aims to enhance research and the development of new technologies in renewable energies, to encourage the technological development of businesses and their competitiveness internationally etc ...

On 24th July the European Commission authorised the purchase of Chrysler by Fiat in virtue of the EC regulation on dominant position. After examination the Commission concluded that the acquisition of American car manufacturing group Chrysler Group LLC by Fiat SpA would not significantly impede effective competition in the European Economic Area (EEA) or any substantial part of it.

On 20th July in a solemn speech to Parliament Georgian President Mikheil Saakachvili confirmed that "the only way to rise to challenges" was to open up the country's political system to "renew commitment to strengthen our democratic institutions" and "provide impetus to the reform process". He thereby responded to the opposition which is requesting his resignation accusing him of drifting into an authoritarian regime which managed the military conflict poorly in Russia in August 2008. He proposes the elaboration of a new electoral code, early local elections and the election by direct suffrage of mayors in May 2010, together with the appointment of the head of the National Electoral Committtee by common agreement by the ruling party and the opposition. He also proposed to share the control of the state audiovisual media with the opposition within the next three months and to launch a national consultation in August or September on the priorities that the government should concentrate on.

The European Investment Bank (EIB) has granted the Valeo Group up to 300 million euros in funding. This funding will be used to support spending by the group as part of its research projects to reduce the consumption of fuel and CO2 emissions as well as improving active security. The total amount of Valeo's investments for these projects is estimated at 645 million euros over four years. EIB funding is granted together with attractive conditions in the shape of two loans the first of which to a total of 225 million euros will be granted at the end of July. This funding is in line with the EU's goal of creating a competitive economy based on knowledge and the EIB's vocation of funding research and innovation.

According to figures published by Eurostat on 23rd July the EU's external current operations account recorded a deficit of 58.2 billion euros in the first quarter of 2009 in comparison with -46.2 billion in the first quarter of 2008 and -68.3 billion in fourth quarter 2008. However the balance of services revealed a surplus of 12 billion in comparison with +18.5 billion in the first quarter of 2008 and +20 billion in the fourth quarter of 2008.

In the wake of the economic crisis, unemployment amongst the 15 to 24 year olds has started to rise again in the EU said Eurostat on 23rd July. In the first quarter of 2009 five million young people ie 18.3% were unemployed, a rate that was considerably higher than the overall unemployment rate of 8.2%. Compared with the first quarter of 2008 unemployment amongst young people has grown by 3.7 points thereby increasing at a greater pace than for the entire population which recorded a rise of 1.5 points. Amongst the Member States the highest rises were witnessed in Latvia (from 11.0% to 28.2%) in Estonia (from 7.6% to 24.1%) and in Lithuania (from 9.5% to 23.6%) whilst Germany (from 10.2% to 10.5%) and Poland (17.8% to 18.2%) displayed the lowest increases.

The EurObserv'ER recently presented its 8th set of results with regard to "the State of Renewable Energies in Europe". The work offers a complete review of the development of new types of renewable energies, including air turbines, photovoltaic and biofuels as well as two future technologies, ie solar thermal energy and marine energy. Then the authors measure the progress achieved by the EU Member States with regard to the objectives set in the European Commission's White Paper and its Biomass Action Plan. Given that renewable energies already provided 7.5% of primary energy consumption in 2007 the report put forward is quite optimistic with regard to achieving the 12% goal in 2010.

The Robert Schuman Centre for Advanced Studies has just published a voluminous studies entitled "Migrations Mediterranées 2008-2009". The authors analyse the migratory policy of the countries in the South and East of the Mediterranean whilst addressing the economic, social, demographic and legal context of migratory flows. The report focuses notably on migration towards the EU and the so-called "circular" migratory flow.

On 23rd July the Centre for European Policy Studies published a series of studies focusing on economic and political relations between Central Asia and the EU. The first analysis provides an overview of trade relations and recommends the integration of business into the EU's Asian policy in order to foster European interests in the region better - this includes the stabilisation of the States involved, their democratisation, cooperation in terms of energy and the weakening of both Chinese and Russian influence. The second study is devoted to energy relations between the two entities as well as to the key role played by Turkmenistan, the region's main gas producer. The last analysis pinpoints trends and problems in the area of the free press in Central Asia and provides proposals on how the EU can improve the situation.

90 years ago Walter Gropius founded the Bauhaus school in Weimar. The leading locations for modern architecture, the three historic Bauhaus sites in Weimar, Dessau and Berlin, are working together to offer an exhibition on the history and artistic ideas behind the school. Via its title, "Modell Bauhaus" the exhibition reflects the ambition that Bauhaus embodied: to act as a reference point for creation. It illustrates the work accomplished by the masters of Bauhaus (Josef Albers, Marcel Breuers, Vassily Kandinsky, Paul Klee ...) and its themes. The exhibition shows a wealth of over a thousand objects - models, drawings, photos, furniture, lamps, wardrobes and cutlery which reflect the muliple facettes of Bauhaus. The exhibition will last from 22nd July to 4th October.

The Bregenz Festival on the banks of Lake Constance offers a series of concerts, recitals, operas on a floating stage on the lake! This year it is taking place from 6th July and 23rd August. On the programme are notably: Aida by Giuseppe Verdi and King Roger by Karol Szymanowski was well as plays and operettas.

Patras, Greece's third biggest city that lies in the north of Peloponnese has opened an ultramodern museum covering 8000 m2, that includes works of art from antiquity (1200 BC) to Roman times (300AD) Inaugurated on 24th July it has become the country's second biggest museum after the Acropolis.

From 19th to 30th August Verona will be welcoming the 87th Opera Festival organised by the Arena Foundation of Verona. Five open air operas have been planned: Carmen, Aida, Turandot, the Barber of Seville and Tosca. The Gala evening during which Placido Domingo celebrated the 40th anniversary of his beginnings with Arena took place on 24th July.