Outgoing Head of State Traian Basescu (Democratic Liberal Party, PD-L), won the second round of the Romanian Presidential election on 6th December. With 50.37% of the vote he beat the leader of the Social Democratic Party (PSD) and present President of the Romanian Senate, Mircea Geoana who won 49.62% of the vote.

The Lisbon Treaty entered into force on 1st December. To understand the issues at stake consult "The State of the Union 2009, Schuman Report on Europe." This is a reference work to find out everything you need to know about Europe.

The Chairman of the Foundation, Jean-Dominique Giuliani, is travelling to Berlin on 8th and 9th December to take part in the 8th Congress on European Defence and Security. He is speaking at the first round table on the theme of : Developing the European Security Strategy - how to implement a modified strategic concept?"

Just as the 15th conference on the climate in Copenhagen is starting the Chairman of the Robert Schuman Foundation Jean-Dominique Giuliani has published an editorial on his site entitled "Copenhagen or learning about power."

In 2009 France will have experienced a slightly less serious recession than originally forecast with a GDP decline of -2% to -2.1% said French President Nicolas Sarkozy on 2nd December as he visited La Seyne-sur-Mer in the Var - this is a more optimistic forecast than the most recent official forecast of -2.25%. France also accepted to establish the objective of bringing its public deficit down below 3% of the GDP in 2013.

Concerned about the restrictive attitude of banks towards loans the German government appointed a loans ombudsman on 2nd December. As from March 1st 2010 Hans-Joachim Metternich will be helping companies when they encounter difficulties in obtaining a loan or a bank guarantee. Chancellor Angela Merkel convened a summit on 2nd December at the Chancellery to correct the situation of loan penury. The aim was to reach an overall consensus on emerging from the crisis.

The Czech Republic's public deficit figures published on 1st December by the Finance Minister are the cause of great concern: they total 6.8 billion euros. The budget approved for 2009 planned for a deficit of 2.08 billion euros. On 2nd December MPs studied the draft 2010 budget on second reading that is reckoning on a deficit of 162.7 billion crowns ie 5.3% of the GDP. The Czech Republic will have to limit its spending because the European Commission notably requested in November that in 2013 the public deficit had to be reduced down below the 3% mark allowed by the treaty.

According to estimates published by the Italian National Statistics Institute (Istat) on 30th November inflation accelerated in November in Italy to lie at 0.7% over one year (and 0.1% over one month) in comparison with 0.3% in October. The increase did not however affect housing, water, electricity or petrol the prices of which declined by 2.1%.

According to OECD figures published on 1st December between October 2008 and October 2009 consumer prices increased by 0.2% in the OECD area, the first positive annual variation since May 2009. The monthly variation in prices that was stable between August and September lay at 0.1% between September and October 2009.

The European Central Bank (ECB) published its forecasts with regard to the economy and growth in the euro area on 3rd December. The ECB is reckoning on weak economic recovery with an average GDP lying between -4.1% and -3.9% in 2009. The ECB believes that GDP will rise in 2010 to lie at between 0.1% and 1.5% and finally to settle between 0.2% and 2.2% in 2011. With regard to inflation the ECB estimates this at around 0.3% in 2009 and between 0.9% and 1.7% in 2010 and between 0.8% and 2% in 2011. Finally the ECB decided on 3rd December to maintain its interest rates unchanged at 1% on major refunding operations and to keep the marginal loan and deposit facilities at 1.75% and 0.25% respectively.

The main European public financial institutions launched a pan-European infrastructure fund with an initial capital of 600 million euros and invited other investors to join them on the occasion of the First Closing on 3rd March 2011. The Marguerite Fund is a pan-European investment fund which intends to serve as an investment catalyst in vital infrastructures for the implementation of key EU policies in the areas of climate change, energy security and trans-European networks.

The Bulgarian Parliament adopted the 2010 budget on 3rd December that is forecasting a contraction of 2% in the economy. Revenues rise to 26.4 billion leva (13.5 billion euros), ie 41.6% of the GDP. Expenditure of 26.9 billion leva (13.75 billion euros) total 42.3% of the GDP which corresponds to a deficit of -0.7% of the consolidated budget.

The head of the Spanish government, José Luis Rodriguez Zapatero announced on 2nd December that there would be socio-economic reforms in 2010 including one concerning the labour law that will aim to counter rising unemployment. He said that this reform would be part of social dialogue between employers and the unions which is in a poor state at present whilst unemployment has risen dramatically since 2007 to lie at nearly 18%, almost double the European average.

On 30th November the Hungarian Parliament adopted, 201 votes in favour, 179 against and no abstentions, an austerity budget for 2010 which has been demanded by the country's international creditors. Hungarian Prime Minister Gordon Bajnai promised in April to respect the demands of the IMF, the EU and the World Bank which released 20 billion euros at the end of 2008 to help Hungary overcome the world financial crisis whilst foreign investors were withdrawing en masse from the country which was threatened with bankruptcy. Socialist and Liberal MPs who support the Prime Minister's minority government adopted a budget establishing the goal of the public deficit at 3.8% of the GDP (3.9% of the GDP estimated for the ongoing year). According to the budget the GDP will reveal a decline of 0.6% (-6.7% estimated in 2009) and an inflation rate targeted at below 3%.

Ukrainian President Viktor Yushchenko received Swedish Prime Minister Fredrik Reinfeldt on 4th December together with European Commission President José Manuel Barroso for an EU-Ukraine Summit. They addressed the priorities of the Swedish Presidency: climate and the economic crisis. But debate also focused on energy security and gas supplies as well as on the need for political and economic reform in Ukraine. With regard to energy, discussions focused on the energy efficiency project, the Eastern Europe Energy Efficiency and Environment Partnership (EEEEEP). This partnership will lead to a reduction in energy consumption and in greenhouse gases. The gas crisis was centre of debate because of Ukraine's strategic position in terms of the EU's gas supplies.

On 2nd December the EU budget for 2010 was approved on second reading by the Budgetary Committee. This vote confirms the budgetary concertation agreement with the Council of Ministers on 18th November and takes up Parliament's piorities on first reading, notably with regard to energy and entrepreneurship.

On 30th November the European Commission approved measures to provide information on, and to promote agricultural products in third countries. Member States submitted 20 programmes to the Commission to be examined. The 10 programmes that have been accepted are from France, Greece, Italy, Lithuania, Poland, Portugal and Romania. The products covered are PGI and PDO, wine, fruit and vegetables, meat, spirits, olive oil, and organic products. The EU contribution is € 11.1 million (50% of the total budget of the programmes).

On 2nd December the European Commission published a report establishing that 30% of Christmas lights expose consumers to an obvious, direct danger of fire and electric shocks. This report advises consumers to be wary and take precautions to reduce the dangers to a minimum. Great pressure is being put on manufacturers and retailers who sell lights at the lowest prices.

A new regulation that aims to modernise rules applicable to road transport entered into force on 4th December. The "road package" simplifies and clarifies the legal framework for the 900,000 European transport companies that work in the sector of merchandise haulage and the transport of passengers. In addition to this rail passengers now have new rights that will protect them and their belogings during train journeys in any EU country. The CE1371/2007 ruling on the rights and obligations of rail passengers which entered into force on 3rd December confirms travellers' fundamental rights and obliges rail companies to take on a certain number of responsiblities vis à vis their clients. Nearly 8 billion train journey's are undertaken each year.

The 27 Justice and Interior Ministers who met on 30th November and 1st December discussed the Stockholm programme as well as access on the part of the American authorities to European citizens' banking data. With regard to the Stockholm Programme ministers agreed on a flexible policy with regard to migration. The Stockholm Programme will be adopted by the heads of State and government during the European Council of 10th and 11th December. With regard to banking data the ministers rejected the European Parliament's suggestions and agreed temporarily with the USA enabling American investigators to have easy access to EU banking data. They decided to grant citizens from Macedonia, Montenegro and Serbia free, visa-less movement within the Schengen area.

The 27 Economy and Finance Ministers, who met on 2nd December, came to an agreement with regard to a new financial supervisory structure that comprises three new authorities to monitor microprudential issues: the European Banking Authority; a European Insurance and Occupational Pensions Authority; a European Securities and Markets Authority. These structures will work in tandem with the European Systemic Risk Board, created in October and responsible for microprudential supervision. In addition to this the ministers agreed on measures to "reverse the charges" in the event of transfer of CO2 quotas from one country to another together with the application of budgetary strategies to exit the crisis. They asked 14 countries to balance their budgetary situation, 9 of them will have to bring their deficit under the permitted European limit of 3% of the GDP by 2013.

Luxembourg Prime Minister Jean-Claude Juncker, chaired the Eurogroup meeting, between the Finance Ministers of 16 Member States of the euro area on 1st December. They exchanged views on the economic, financial and monetary situation in the euro area from several angles: the latest developments on the financial markets and issues related to exchange rates, the events in Dubai, the Stability and Growth Pact, the worrying situation in Greece and implications of the entry into force of the Lisbon Treaty with regard to the Eurogroup. In addition to this Jean-Claude Juncker informed his colleagues that he would be running for re-election as Chairman of the group.

The 27 Research and Consumer Ministers who met on 3rd and 4th December spoke of European research. They adopted conclusions that aim to make European research more competitive and more prosperous notably in the IT area. They even agreed on patents in Europe. In addition to this they adopted conclusions establishing joint work between Member States as part of the fight against neuro-degenerative diseases. The Consumer Ministers suggested a new directive to include all existing directives with regard to consumer protection.

On 3rd December German MPs approved the 12 month extension of the deployment of the Bundeswehr in Afghanistan without increasing the limit of 4,500 men. A great majority of the Bundestag - 445 out of 594 present supported the government's decision. They also approved the extension of the mandate in Lebanon until 30th June 2010 (500 in favour, 82 against, 10 abstentions).

On 30th November French Prime Minister François Fillon addressed a letter to the President of the National Assembly with regard to the appointment of two observers at the European Parliament. Since the implementation of the Lisbon Treaty plans for the attribution of two additional MEP seats to France the Prime Minister requests the appointment of two observers amongst MEPs. "These two MEPs elected by direct universal suffrage would temporarily retain their national mandate and be observers at the European Parliament at the same time in expectation of a modification to the law of 7th July 1977 on the election of MEPs which will allow them to have a status of MEP until the elections in June 2014," explained the Prime Minister.

Antonis Samaras was elected president of the Greek conservative party, New Democracy (ND, opposition) thereby succeeding former Prime Minister Costas Caramanlis, head of the party for the last twelve years and who resigned after his defeat in the general elections on 4th October.

Paweł Samecki, European Commissioner for Regional Policy announced on 1st December that the European Regional Development Fund (ERDF) will invest 64 million euros to co-fund the redevelopmentof properties seized from the Mafia in Southern Italy into legal activities as part of the Cohesion Policy. This vast programme that covers the period 2007-2013 finds support in a pilot project that has already led to the transformation of 50 properties confiscated from the mafia into agro-tourism ventures, youth centres or economic and social enterprises after an investment of 11 million euros.

President of the Italian Council, Silvio Berlusconi travelled to Minsk on 30th November for the first visit by a western leader to Belarus since Aleksander Lukashenko came to power in 1994. The two leaders signed a number of agreements in the economic, taxation and adoption fields. The Belarus President stressed that he believes this visit "eloquent support in the international arena". He hopes that this visit that comes as the EU and Belarus are drawing closer together will be the first step towards the end of his country's diplomatic isolation - which it has suffered due to the human rights infringements that have occurred there.

Russian President Dmitri Medvedev met the President of the Italian Council, Silvio Berlusconi at the Italian-Russian Summit that took place on 3rd December in Rome. Silvio Berlusconi said he was pleased with the signature of a number of institutional and trade agreements (Alitalia/Aeroflot), notably with regard to the South Stream Project (Eni/Gazprom) and said he was pleased with the document put forward by Russia for the new European security Treaty. Dmitri Medvedev called on Italy to help Russia "develop new relations with the EU" in the spirit of "Pratica di Mare" (the place which hosted the 2002 reconciliation summit between Russia and NATO).

The Italian government that met in Council on 3rd December gave the greenlight for the dispatch of around 1000 additional solidiers next year.

On 30th November British Prime Minister Gordon Brown announced the dispatch of 500 additional British soldiers to Afghanistan. These troops will provide greater security to Afghans, strengthen local and national government, support the Afghan army and police in assuming their responsibilities in terms of security. The UK will host a conference on Afghanistan on 28th January with the members of the international coalition to disucss the means of transferring control of the country over to the local authorities.

On 7th and 18th December the delegates of 192 countries are meeting in Copenhagen in Denmark at the UN Conference on Climate Change to conclude an agreement that should enter force after the Kyoto Protocol comes to and end in 2012.

According to figures published by Eurostat on 2nd December the industrial production price index increased by 0.2%, in the euro area as well as in the EU in October 2009 in comparison with September 2009. In September prices decreased by 0.4% in both zones. In October 2009 compared with October 2008 industrial production prices declined by 6.7% in the euro area and by 5.8% in the EU.

According to figures published by Eurostat on 3rd December during the third quarter of 2009 the euro area GDP increased by 0.4% and that of the EU by 0.3% in comparison with the previous quarter. Over the second quarter in 2009 the growth rate lay at -0.2% in the euro area and by -0.3% in the EU. In comparison with the third quarter of 2008 the GDP in the euro area recorded a decline of 4.1% and that of the EU by 4.3% after -4.8% and -5% respectively in the previous quarter.

According to a study by the Institute for the Environment in Stockholm undertaken together with Friends of the Earth Europe, the European Union could double its goal of reducing greenhouse gases by 2020. The report shows that emissions could be reduced by 40% in 2020 and by 90% by 2050 in comparison with 1990 levels. This reduction may be achieved by an improvement in energy efficiency, by an acceleration in abandoning fossile fuels, by greater use of renewable energies and by a change in life style and also by using more public transport for example.

The Bertelsmann Foundation has published a study by Barbara Kunz and Daniela Röß entitled "Forget Copenhagen". The Copenhagen Summit from 7th to 18th December offers an opportunity to define a global response to the issue of climate change. However this opportunity may be spoilt and the perspectives of a follow-up to the Kyoto Protocol are low. Europe must not however take the possible failure of Copenhagen as an excuse not to act.

The Center for European Reform has published a study by Tomas Valasek entitled "NATO, Russia and European Security". The Eastern and Northern European countries are worried about a possible confrontation between NATO and Russia. They asked the Alliance to start preparing for a conflict with Russia. The author asks NATO to take steps to reassure these European governments otherwise the Atlantic Alliance may have problems in "re-initiating" relations with Russia and to maintain the population's support of the war in Afghanistan.

The Senate's European Affairs Committee published an information report entitled "The German Constitution and Europe" following the decision taken by the Federal German Constitutional Court on 30th June with regard to the law approving the Lisbon Treaty. This decision was important in that it legislated on the compatibility of the Lisbon Treaty with German Fundamental Law thereby detailing the framework of Germany's participation in the construction of Europe. This report analyses the context then the content of this controversial decision, followed by some conclusions with regard to European construction. On 7th September the Robert Schuman Foundation and the Konrad Adenauer Foundation organised a debate on this subject together with two legal experts Anne Levade and Rupert Scholz.

Publishers be.bra Wissenschaft have just released the German translation of a work by Philippe Meyer entitled "France et Prussie - Une Histoire Croisée". This translation was published with the support of the Robert Schuman Foundation and the Foundation for Franco-German Entente.

The German government decided to create a German Digital Library accessible via the internet. The databases of over 30,000 archives, libraries, museums and other scientific and cultural institutions will be available for consultation by everyone via computer. The government will provide 5 million euros to set up this library. For the German government this is a means to protect national heritage. It also comes in response to a project to create a world virtual library, that is being designed by the American company, Google.

The Cervantes Literary prize believed to be the equivalent to the Nobel in Spanish literature was awarded on 30th November to Mexican poet and essay writer José Emilio Pacheco, said the Spanish Minister for Culture, Angeles Gonzalez-Sinde.

On 30th November the Victoria and Albert Museum in London revealed a new part of its art collection from the Middle Ages and the Renaissance - an extension that required seven years of work. The ten new galleries that take up a whole wing of the museum will be open as from 9th December free of charge; they "present the most important treasures on the planet". A thousand years of works of art and social history including entire sections of buildings, large sculptures and stained glass windows are on show alongside the notebooks of Leonardo da Vinci, objects in enamel - including a tribute, created around 1180, to the murdered Archbishop, Saint Thomas Beckett; there are sculptures the Renaissance masters such as Donatello. Over 1,800 objects are on show in the new rooms which are all linked together to offer visitors a journey that is interactive in part - through the history of art and creation in Europe, from the fall of the Roman Empire to the end of the Renaissance.