The Newsletter4026 juil. 2009

La Lettre

Jacques Charmelot

6 July 2009

Foundation

Elections/Bulgaria

1 January 1970

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The party of Citizens for the European Development of Bulgaria (GERB) led by the Mayor of Sofia Boïko Borissov made a landslide victory in the general elections that took place on 5th July. The GERB won 39.70% of the vote and took 116 of the 240 seats in the National Assembly, the only Chamber in Parliament. The Socialist Party led by outgoing Prime Minister Serguey Stanishev suffered heavy defeat with 17.72% of the vote and 40 seats. Its government partner, the Movement for Rights and Freedom, representing the Turkish minority won 14.47% of the vote (38 seats). The far right party Ataka won 9.37% of the vote and 21 seats, the Blue Coalition formed by the alliance between the Union of Democratic Forces and the Democrats for a Strong Bulgaria won 6.73% of the vote and 15 seats, the Party for Order, Law and Justice (RZS) won 4.13% of the vote and 10 seats. The party led by former King Simeon II is no longer represented. Turn out rose to 59.76%.

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Conference/Middle East

1 January 1970

The Foreign Affairs, Defence and Armed Forces Committee at the Senate is organising a press conference on 9th July during which Jean-François Poncet former Foreign Minister and member of the Administrative Board of the Robert Schuman Foundation and Monique Cerisier-ben Guiga will present the main conclusions of an information report on "The Middle East in the Nuclear Era".

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Financial Crisis

UK

1 January 1970

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The British economy suffered its greatest contraction in the first quarter of the year since 1958. The GDP fell by 2.4% instead of the estimated 1.9% and decreased by 4.9% in comparison with the first quarter of 2008. This contraction is mainly due to a decline in activities in the building sector to -6.9%, in the manufacturing industry to -5.1% and in the services sector to -1.6%. In addition to this the public deficit decreased dropping from 8.4 billion £ last quarter to 8 billion £ this quarter.

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Ireland

1 January 1970

On 30th June the Irish Statistics Centre (CSO) published its report on the national accounts for the first quarter 2009. The Irish GDP fell by 8.5% over one year and the GNP by 12%. This represents a contraction of 1.5% for the GDP and 4.5% for the GNP in comparison with the previous quarter. Capital investments have declined by 34.1% since the first quarter of 2008; in the industrial sectors the annual decline was 10.5% including the building sector which suffered a decline of 31.4%. Household consumption also declined by 9.1%.

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IMF

1 January 1970

According to an IMF report France is due to recover slow economic growth (0.5%) at the beginning of 2010 but the French government should not give up "its reform programme" and master deficits. The fall in the GDP is due to reach 3% in 2009, a first since 1949 whilst public deficit is due to reach 7 to 7.5% of the GDP this year against a 3% threshold allowed as part of the European Stability and Growth Pact. Whilst until now Austria has managed to fend off the crisis it is now feeling the full effect of this. Trade and investment flows, which were previously the drivers of Austrian growth have now become vectors transmitting the crisis into Austria. The IMF is forecasting a fall of 4% in the GDP in 2009. Tax incentives on the part of the government should help support demand but tax consolidation measures are to be put forward to guarantee the country's financial stability long term.

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France

1 January 1970

According to a report on the development of the national economy and on public finances in 2009 the budgetary deficit is due to settle at between 125 and 130 billion euros in 2009 in comparison with 56.3 billion in 2008. According to the French Budget Minister, Eric Woerth, "2/3 of this deficit are a consequence of the crisis". The worsening of the deficit is also linked "to the inflationary shock in the first quarter of 2008 which has mainly been felt in terms of spending". 29th June MPs adopted a draft law on the regulation of the 2008 accounts; it has to be examined by the Senate on 15th July.

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Slovakia

1 January 1970

The Slovakian Statistics Bureau announced that a change had occurred with regard to the economic sentiment index. After a nine month decline it is now rising again. In comparison with the month of May the index had increased by 1.3 points to lie at 67.6. This can be explained by a rise in confidence in industry and services as well as in household confidence.

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Slovenia

1 January 1970

An economic study by the OECD on Slovenia's situation in 2009 was published on 1st July. This study notes that Slovenia has achieved major progress in catching up on the average GDP per capita in the OECD zone without causing any major imbalance. Recovery has however been interrupted by the financial crisis. Slovenia is suffering the most serious crisis since its indepenence with a GDP contraction of some 6% expected in 2009. A slight recovery should occur in 2010 because of an increase in exports. Inflation will continue to slow due to a growing gap in production and high unemployment. The study puts forward some recommendations to re-establish sustainable growth. This notably includes continued structural reform in spite of the difficult times together with another reform of retirement pensions.

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ECB

1 January 1970

During a press conference given by the European Central Bank on 2nd July in Luxembourg, Jean-Claude Trichet, Chairman of the ECB announced the upkeep of the key interest rates at 1%. This rate, believed "appropriate" is the lowest in the ECB's history. This announcement came as a fear of Europe wide deflation is grows together with a debate on the risks encountered. Jean-Claude Trichet is however optimistic. He said that the fall in consumer prices would be "for a short time only" in the euro area. In his opinion price decreases (0.1% in June over one year) were anticipated and this mainly reflects a base effect in the wake of the sharp rise in primary materials last summer.

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Estonia

1 January 1970

The Estonian Statistics Institute says in a study published on 1st July the country's retail trade diminished by 16% between May 2008 and May 2009. This trend is mainly due to the decine in the sales of manufactured goods that fell by 23% in one year. The contraction of textiles and shoe sales has also increased in comparison with previous months. Also in this sector the fall of sales over one year totals 23%.

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Ukraine

1 January 1970

On 30th June the Ukrainian National Statistics Office announced that the GDP had fallen by 20.3% in the Ukraine in the first quarter of the year. The Ukraine, whose economy was one of the most dynamic in the region with an average annual growth rate of 7% between 2000 and 2007, has been struck full on by the world economic crisis. The IMF forecasts that the Ukrainian GDP will contract by 8% over 2009; the World Bank is forecasting a decline in the Ukrainian GDP of at least 9% this year.

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Commission

1 January 1970

On 2nd July in the ilk of the USA the European Commission presented the main lines of a plan to regulate derivatives' markets better which were the cause of the crisis - it suggests the means to avoid another Madoff affair. In a communication the European executive lists the "tools" that have to be used to reduce the dangers of the derivatives markets. Amongst the main changes put forward, the Commission recommands the standardisation of derivatives as planned by the USA, the creation of centralised compensation chambers where these products would be negotiated. The Commission also announced the launch of a public consultation to toughten up on legislation surrounding UCITS in order to guarantee similar protection for those who invest savings funds in all EU countries.

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Germany

1 January 1970

German MPs approved a new finance law on 2nd July focusing on the Federal State's deficit 2009 that has reached a record level of 49.1 billion euros. They increased the government's estimation slightly which was previously at 47.6 billion euros. The previous record deficit on the part of the German Federal State, 40 billion euros, was reached in 1996. Germany, the world's leading export country, is suffering particularly badly due to the economic crisis and the collapse of international trade. On 3rd July they also adopted a law strengthening the powers of the Federal Authorities over the financial markets (Bafin), notably in terms of its control of the country's banks. Bafin may now advise on greater capital or liquidities in the results of the German financial institutes in order to ward off major risks threatening their assets and the brutal collapse of the markets.

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Cyprus

1 January 1970

Cyprus is not due to enter recession in the next few months in spite of a clear slowing associated with the world economic crisis said the IMF on 29th June; this may be a first in the euro area. "A recession seems highly unlikely at this stage although given a great amount of uncertainty a worse scenario cannot be ruled out," declared the head of the IMF mission in Cyprus, Angana Banerji to the press. He did however insist on the need for Cypriot authorities to control public spending.

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Hungary

1 January 1970

On 29th June the Hungarian Parliament adopted the fiscal law 2010 which reduces income tax but introduces a heritage tax in an attempt to boost the country's economy which is in recession. According to the measures adopted the lowest tax band will drop from 19 to 17% and this will be extended up to 5 million forints in income (18,100 euro) instead of 1.9 million (6,879 euros) prior to the law. Income tax rates in the upper band will drop from 36% to 32% as from January. According to government estimates 90% of Hungarians will pay 17% income tax. "Hungary's objective is to achieve sustainable economic growth and to do this more people have to pay less tax" said Prime Minister Gordon Bajnai before the vote.

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Italy

1 January 1970

Italy's public deficit rose to 9.3% of the GDP in the first quarter, its highest level in at least ten years, with the crisis weighing over public finances said the national statistics institute Istat on 2nd July. This is the highest level since 1999, when data collation started. Over 2008 the deficit rose to 5.7% of the GDP. The decline in the deficit is due to a 2.8% decrease in State revenues over one year whilst at the same time spending rose by 4.6% says Istat.

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Presidency

Atonement

1 January 1970

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At the end of the conference on the fate of the property of the victims of the Holocaust organised in Prague from 26th to 30th June 2009 46 countries committed to continue the atonement procedure with regard to the despoilment suffered by Jews during the Nazi regime in the so-called "Terezin Declaration", the name of the former Jewish ghetto in the north of Prague. Signatories notably promised to extend access to archives to facilitate the identification of confiscated property. The declaration also includes the use of victims' property when there are no descendants to provide social aid to survivors and to develop education on the Shoah. The EU also promised to create a European Institute on the Shoah Heritage that is to guarantee the continued process of restitution, which are only just beginning in Central and Eastern Europe.

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Sweden

1 January 1970

On 1st July the Swedish presidency of the Council of the European Union started. All of the European Commissioners travelled to Stockholm to meet the Swedish ministers and to discuss issues that will be on ths presidency's agenda. Swedish Prime Minister Fredrik Reinfeldt declared, "it will be six very exciting months, but the tasks before us are not easy." The Swedish presidency's slogan is "Taking on the challenge". Apart from the two main priorities: the fight against the economic and financial crisis and climate change, other objectives are also of importance: the Lisbon Treaty, the Stockholm Programme (which aims to enhance European cooperation with regard to justice and internal matters), the European strategy for the Baltic Sea etc ...

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France

1 January 1970

On 3rd July the Swedish Prime Minister Fredrik Reinfeldt welcomed French President Nicolas Sarkozy as the Swedish Presidency of the Council of the European Union was about to start. The Swedish Prime Minister insisted during the press conference on France's commitment to the climate. He also addressed issues with regard to the management of the financial crisis and the rise of unemployment in Europe, subjects that Sweden would like to treat as a priority during its presidency. He addressed the issue of the implementaiton of a European financial market surveillance structure. Institutional changes experienced by the EU at present were amongst other subjects under discussion.

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Parliament

Group/Name

1 January 1970

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The parliamentary group "Independence/Democracy which now comprises 30 MEPs and 8 member states will officially change name on the opening of the parliamentary session on 14th July to become the "Europe of Freedom and Democracy (EFD). This far right group that was formed on 1st July mainly comprises the British UKIP and Italian Northern League. It also includes the only Libertas representative, Frenchman Philippe de Villiers. Led by Briton Nigel Farage it will campaign agianst the Lisbon Treaty and will demonstrate its opposition to the EU's integration and immigration policies.

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Groups/President

1 January 1970

On 30th June former Belgian Prime Minister Guy Verhofstadt was unanimously chosen to chair the Alliance of Democrats and Liberals for Europe group (ALDE). The confederal group for the Unitarian European Left/Nordic Green Left (GUE/NGL) elected German Lothar Bisky to lead them on 24th June.

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EPP

1 January 1970

The EPP group in the European Parliament held its Group Study Days in Athens from 29th June to 2nd July. The analysis of the European election results, the upcoming challenges to the newly elected European Parliament, the political priorities of the Swedish Presidency of the Council as well as the enhancement of relations with national parliaments were the main elements on the agenda.

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Commission

Latvia

1 January 1970

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On 2nd July the European Commission established 2012 as the final date for Latvia to reduce its budgetary deficit to at least 3% of the GDP. This recommendation comes as part of the excessive deficit procedure. This deadline is also part of the economic and budgetary adjustment process undertaken by the country in view of adopting the euro mid-term. In addition to this the Commission has decided to pay the second part of 1.2 billion euros of the balance of payments loan granted by the EU to help Latvia through the economic crisis. This part will be paid in July after the signature of a new agreement protocol and afer raising money on the financial markets.

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Tobacco

1 January 1970

On 30th June the European Commission adopted, after extensive consultation, a proposal for a Council Recommendation calling on all Member States to bring in laws to protect their citizens from exposure to tobacco smoke by 2012. Tobacco remains the largest single cause of premature death and disease in the European Union. Currently, ten EU countries have comprehensive smoke-free laws in place. A recent Eurobarometer poll suggests that popularity is mounting for smoke-free policies. The Recommendation calls on Member States to act in three main fronts: adopt and implement laws to fully protect their citizens from exposure to tobacco smoke in enclosed public places, enhance smoke-free laws with supporting measures such as protecting children, encouraging efforts to give up tobacco use and pictorial warnings on tobacco packages; strengthen cooperation at EU level by setting up a network of national focal points for tobacco control.

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Energy

1 January 1970

On 30th June the European Commission adopted a decision establishing a model for national action plans with regard to renewable energies. This model aims to guide Member States in the elaboration of their national action plans and describes the strategy to adopt. Each Member State has to present a national action plan to the Commission for 30th June 2010 at the latest. The directive assigns restrictive national objectives to each State with the aim of reaching a 20% share of renewable energy sources in Europe's final energy consumption by 2020. The Commission's goal is not only to guarantee the complete nature of the national action plans but this should also lead to comparisons between them and with the reports that member States and the Commission are to establish with regard to the implementation of the directive 2009/28/CE.

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Gas

1 January 1970

On 2nd July after the Gas Coordination Group the European Commission recommended that preparation be made for another gas crisis this winter. It stressed the need to improve "regional cooperation". At present Ukraine is looking for a loan to pay for its Russian gas deliveries; if this is not found the country runs the risk of not being able to fill its reservoirs this summer which enable it to ensure the transit of Russian gas to Europe, whilst one quarter of the gas used in the EU comes from Russia and 80% of which transits through Ukraine. To avoid another crisis the European Commission brought Russian, Ukrainian and international financial institution representatives together on 29th June. Another meeting is planned in the near future.

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Neighbourhood

1 January 1970

On 3rd July the European Commission declared its decision to allocate 40 million euros to projects in support of Eastern European and South Caucasian countries. All of the projects are due to have a regional effect ie address at least two of the seven partner countries that lie on the Union's eastern border (Russia, Ukraine, Moldova, Belarus, Armenia, Azerbaijan and Georgia). This envelope will fund aid programmes in areas such as the enhancement of cultural policies and civil society, the support of SME networks, border management, etc .. According to Benita Ferrero-Waldner, Commissioner for External Relations and for the European Neighbourhood Policy, "these countries often experience the same problems and facing them with a joint approach may help to strengthen their mutual confidence and help to improve security, stability and prosperity in the region."

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Employment

1 January 1970

The European Commission suggested on 2nd July the establishment of a new micro-funding tool for the allocation of micro-credits to small companies and to people who have lost their jobs but who want to create their own small company. This tool would be provided with an initial budget of 100 million euros that may lead to the mobilisation of over 500 million euros in a joint initiative with international financial institutions including the European Investment Bank. The creation of this tool is one of the actions announced by the Commission in its communication on 3rd June entitled "Shared commitment for employment."

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Education

1 January 1970

The European Commission announced on 1st July the funding of nearly 10,000 new projects by the Erasmus Mundus programme in the unversity year 2009-2010. Hence 8,385 students and university researchers will come and study in Europe whilst 1,561 Europeans will go to study in partner establishments in third countries.

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Telephone

1 January 1970

As of 1st July, sending a text message from abroad in the EU costs a maximum €0.11, almost three times cheaper than the previous EU average of €0.28 (excl. VAT). To make a roamed call in another EU country must not cost more than €0.43 per minute, and no more than €0.19 to receive a call. From now on, outgoing roaming calls will be charged by the second, after the first 30 seconds, rather than by the minute, and incoming calls will be charged by the second from the first second. Holidaymakers and business travellers can also surf the web, download movies or send photos with their mobile without fear of 'bill shocks' while roaming thanks to a wholesale cap of € 1 per megabyte (MB) downloaded. All these measures are expected to cut roaming charges for EU consumers by a further 60% and increase mobile phone use. The EU first acted on roaming in 2007 reducing the cost of voice roaming calls by 70%.

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Germany

Lisbon Treaty

1 January 1970

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On 30th June the German Constitutional Court suspended the ratification of the Lisbon Treaty demanding an additional law to guarantee the rights of the German parliament. The Vice-President of the Constitutional Court, Andreas Vosskuhle gave details of the decision: "To summarise the Constitution says yes to the Lisbon Treaty but demands a strengthening of the parliament's responsibility nationally with regard to integration." German president Horst Köhler was waiting for this decree to promulgate the law approved by the Bundestage and the Bundesrat. The Bundestag is to meet in an emergency meeting on 26th August in view of the adoption of an additional text on 8th September. This setback should not however delay the European agenda: a referendum on the Lisbon Treaty is planned for in Ireland in October and the Czech and Polish Presidents still have to sign the treaty, which has been ratified by their parliaments.

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Unemployment

1 January 1970

In Germany the number of job seekers dropped in June by 48,000 in gross data reaching 3.41 million (8.1% of the working population), according to the Federal Employment Agency. Expressed in data that has been adapted to seasonal variations total unemployment increased slightly in June (+31,000). Over one year it increased by 250,000. Over the same period the number of working people decreased by 147,000 in spite of a slight recovery in June.

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Taxation

1 January 1970

German MPs adopted an extension to legislation on 3rd July with regard to tax evasion on the part of private parties and companies. In the future companies will have to give more details about their activities in countries or places that do not respect OECD standards in terms of banking secrets and taxation. The tax authorities may demand more information from them and grant less advantages. The same goes for private parties notably with regard to those who earn more than 500,000 euros who may be subject to greater tax control on the part of the authorities.

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Bulgaria

Elections

1 January 1970

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The GERB won the Bulgarian general elections on 5th July clinching 39.71% of the vote and 116 seats of the 240 in the parliament, according to official results. The Socialist Party led by outgoing Prime Minister Serguey Stanishev suffered heavy defeat winning 17.7% of the vote ie 40 seats. The MDL (Turkish minority), member of the outgoing government won 14.46% and 38 seats. Three other parties have entered parliament including the nationalists Ataka with 21 MPs and 9.36% of the vote. The Blue Coalition, the GERB's partner within the European People's Party won 15 seats with 6.76% of the vote and the populist party Order, Legality and Justice (RZS) won 10 seats and 4.13% of the vote. They all declared they were ready to support a GERB government. Parliament will be sworn in on 14th July. The Mayor of Sofia, Boïko Borissov said he was prepared to form a new government and assume the function of Prime Minister.

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Spain

Batasuna

1 January 1970

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On 30th June the European Court of Human Rights approved the Spanish government's action against the Batasuna and Herri Batasuna groups in which the latter were forced to disband, thereby making them illegal. Batasuna and Herri Batasuna appealed on 24th June 2004 invoking to the principles of freedom of expression, freedom to assemble and the freedom of association, the right to a fair trial and to effective appeal. With the sentence of 30th June 2009 the Court intended to guarantee the upkeep of public security and public order as well as the protection of rights and freedom. The Court also believed that both organisations were part of the ETA's terrorist strategy.

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Unemployment

1 January 1970

According to figures published on 2nd July by the Spanish Employment Minister unemployment fell by 1.53% in May ie 55,250 unemployed less in comparison with the previous month. As declared by the Secretary of State for Employment, Maravillas Rojo, this was the "biggest decrease in June since 2001". In spite of this news which implies a decline in unemployment totalling 80,000 people over two months, Maravillas Rojo is still cautious: "it is still too early to see whether this figure shows a real change in trend."

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France

Justice

1 January 1970

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The winners of the 2009 Franco-German Journalism Prize received their honours on 29th June in Paris in the offices of France Télévisions. Several personalities were present including the burgermeister of Berlin, Klaus Wowereit. Simone Veil, academician, former minister and former president of the European Parliament received the Grand Franco-German Prize for Journalism. The Franco-German Prizes for Journalism were given to the winners appointed by a Franco-German jury in the categories of TV, radio, the written press, internet and young talent. Thanks to their work and their perspicacity journalists help both the French and Germans to understand each other better and to take Europe forwards.

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Cinema

1 January 1970

On 2nd July the European Commission gave the greenlight for French state aid, established to encourage foreign producers to make films in France. Frédéric Mitterand, Culture and Communication Minister immediately expressed his pleasure on this authorisation. Films, TV films and foreign series will enjoy aid of up to 20% with a ceiling of 4 million euros of total expenditure. To be a candidate for this loan spending has to be a minimum 1 million euros and work has to include elements associated with culture or French and European heritage.

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Ireland

Internet

1 January 1970

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On 30th June Irish Foreign Minister Michael Martin created a new European internet site for Ireland (www.eumatters.ie) to inform the Irish of the EU's policies, events and programmes.

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Luxembourg

Taxation

1 January 1970

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A protocol agreement was signed on 1st July between Luxembourg and Finland planning for the exchange of information on request between the fiscal adminstrations of both countries. This applies to the tax years 2010 onwards. In line with the Luxembourg government's decision of 13th March 2009 the agreement is the eighth to take on board the demands made by the OECD in terms of banking secrets and the exchange of tax information. In addition to this a similar agreement was signed on 2nd July in London: this was the third addition to the Convention signed on 24th May 1967 between the Grand Duchy of Luxembourg and the United Kingdom of Great Britain and Northern Ireland that aims to prevent double taxation and tax fraud on income and wealth tax.

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Estonia

1 January 1970

The Prime Minister of Estonia Andrus Ansip visited Luxembourg on 1st July. He was guest to his Luxembourg counterpart Jean-Claude Juncker. Negotiations focused on the main topical issues in Europe and notably on Europe's economic situation in the euro area and Estonia. For the Luxembourg Prime Minister the economic situation is still extremely difficult. He sees no sign of economic recovery but signs that indicate that the brutal decline has now stopped. In 2010 he believes that we will see moderate recovery even though the situation will remain difficult. The two men then spoke of Estonia's drive to join the euro area. Jean-Claude Juncker said he was confident and hopes that Estonia will meet the euro area membership requirements in two to three years time.

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Italy

Immigration

1 January 1970

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The European Commission wants to look into the "Security Package" adopted on 2nd July in Italy to check if it is compatible with community law announced Jacques Barrot, Vice-President of the Commission responsible for Justice, Security and Freedom. He recalled that the EU "could not accept general measures" and that controls had "to be individual" "targeted" and "proportional". The new law adopted by the Italian parliament demonstrates a tightening up in terms of the anti-immigration arsenal. It introduces the crime of illegal immigration punishable by a fine of between 5,000 euros to 10,000 euros together with immediate expulsion. It makes the presentation of a residence permit or passport obligatory when declaring the birth of a child. The length of time spent by illegal immigrants in detention centres may be extended up to 6 months in comparison with 2 at present in order to enable their identification in view of their expulsion back to their own country. Smugglers run the risk of three years in prison.

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Lithuania

Government

1 January 1970

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Whilst Lithuania is suffering severely from the effects of the economic and financial crisis, Lithuanian President Valdas Adamkus appointed a new Finance Minister on 3rd July on the proposal of Prime Minister Andrius Kubilius: this is Ingrida Šimonytė. The latter has been Deputy Finance Minister to date and expressed her support for the austerity programme undertaken by her predecessor in order to limit budgetary deficit.

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Portugal

Resignation

1 January 1970

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Portguese Economy Minister Manuel Pinho handed in his resignation on 2nd July after a faux-pas during a debate in Parliament after the heckling of an opposition MP; he was immediately replaced by Finance Minister Fernando Teixeira dos Santos. "The minister presented his resignation and I accepted it," said Prime Minister José Socrates to the press as he left parliament.

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Criminality

1 January 1970

The USA and Portugal signed a bilateral cooperation agreement on 30th June for the prevention of and the fight against organised crime, said the Portuguese Foreign Minister, Luis Amado. "We signed a major agreement to fight and prevent terrorism and organised crime," said Mr Amado during a press conference with Janet Napolitano, American Secretary for Domestic Security. This agreement plans "for both countries to share information in the prevention and fight against crime" and to "protect the citizens of both countries," said Mme Napolitano.

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Czech Republic

Elections

1 January 1970

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The early general elections in Czech Republic will take place on 9th and 10th October decided Czech President, Vaclav Klaus on 1st July. "President Vaclav Klaus set the date of the elections at the chamber of deputies at the Parliament for Friday 9th and Saturday 10th October," says the press release issued by the presidential office. On 8th May the present transitional government led by Jan Fischer comprising non-aligned experts replaced Mirek Topolanek's government (ODS) that had to resign at the end of March during the EU presidency after a motion of censure initiated by the Social Democratic Party (CSSD).

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Romania

France

1 January 1970

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On 2nd July France and Romania concluded a cooperation agreement aiming to promote information exchange and the pooling of expertise with regard to European affairs; this agreement is part of the strategic partnership signed in 2008 between the two countries. Gilles Briatta, secretary general for European Affairs for the French government (SGAE) visiting Bucharest declared: "We are going to work together mainly on topical European issues and notably the economic and financial future of the EU, energy and enviromental issues, transport and agricultural policy." In the opinion of Vasile Puscas, head of the Department for European Affairs (DAE) for the Romanian government this agreement will enable "the harmonisation of our positions" since "we shall be benefiting from the experience of an EU founder state."

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UK

OECD

1 January 1970

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The Organisation for Economic Cooperation and Development called on the UK on 29th June for whom it is forecasting a slow yet modest economic recovery to stabilise its public finances once it has emerged from the crisis. In its latest economic study of the country the OECD recalls that it is now forecasting a 4.3% reduction in the GDP in 2009 before zero growth next year. Moreoever once the recovery has started the financial crisis may amputate the country's growth long term, given the weight of the financial sector in the GDP it warned. Unemployment is due to rise to around 10% in 2010.

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Sweden

Rates

1 January 1970

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The Swedish Central Bank, the Riksbank, reduced its main interest rate to 0.25%, a new record low due to the fragility of the economic situation; it is now forecasting greater recession in Sweden in 2009 it announced on 2nd July. "The lowest level of economic activity demands a slightly more flexible monetary policy. This is why the Riksbank decided to reduce its main interest rate by 0.25 points announced the Central Bank in a press release.

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Albania

Elections

1 January 1970

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According the preliminary results issued by the Central Electoral Committee the Democratic Party coalition led by Prime Minister Sali Berisha won 46.81% of the vote and is ahead of the Socialist coalition led by the Mayor of Tirana, Edi Rama who won 45.42% in the general elections that were held on 28th June. The Socialist Party for Integration (LSI) led by Ilir Meta won 5.56% of the vote. On 4th July Ilir Meta accepted Albanian Prime Minister Sali Berisha's invitation to join the government - an alliance that will enable the creation of a new majority.

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Croatia

Government

1 January 1970

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On 1st July Croatian Prime Minister Ivo Sanader announced his resignation more than two years before the end of his mandate without giving any real explanation. He is also quitting the chair of the Croatian Democratic Community (HDZ) which he took to power in 2003 and which was re-elected in 2007. On 3rd July Jadranka Kosor was appointed Prime Minister by the Croatian head of State. At 56 she will be the first woman to undertake this position since the country's independence in 1991.

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Macedonia

Resignation

1 January 1970

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On 30th June the Macedonian government announced the resignation of its Deputy Prime Minister for European Affairs, Ivica Bocevski. "Every generation has its own battle to fight for Macedonia and mine was to promote European and Euro-Atlantic Macedonia," said Ivica Bocevski. "My contribution to the present government is now exhausted," he added. In expectation of a new Deputy Prime Minister the interim is being undertaken by Pero Dimsoski, Secretary State for European integration.

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Russia

USA

1 January 1970

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On 1st July Russian President Dmitri Medvedev declared that Russia was ready to review relations with the USA just days before the visit of his counterpart Barack Obama in Moscow on 6th-8th July. "The New American Administration - with Barack Obama as its leader - has shown its desire to change the situation, to build more effective, safer and finally more modern relations," stressed Mr Medvedev in a video that appears on his blog."And we are ready," he added.

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Serbia

Police

1 January 1970

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On 2nd July the first Serbian Deputy Prime Minister and Home Minister Ivica Dacic said that his country was prepared to take part in peace-keeping missions undertaken by the police forces of the EU. He said that this issue had been discussed with EU leaders and participation was extremely important to his country.

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Turkey

Nabucco

1 January 1970

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The gaspipeline project Nabucco that is to reduce EU dependence on Russian gas entered a new phase on 2nd July with the announcement of the signature on 13th July in Ankara of an intergovernment agreement between the five countries involved. The Bulgarian Economy and Energy Minister Petar Dimitrov announced in Varna that "the intergovernment agreement on the gaspipeline Nabucco project will be signed in Turkey on 13th July." This information was rapidly confirmed by the Turkish government that is preparing the programme for the signature ceremony of this agreement of principle between Austria, Hungary, Bulgaria, Romania and Turkey.

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Council of Europe

Justice

1 January 1970

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Judges and prosecutors of 47 Member States of the Council of Europe met in Bordeaux on 30th June to 1st July to discuss their respective roles and their complementarity. Their discussions helped to prepare the opinion that is due to be adopted at the end of 2009. The conference led to the identification of common values with regard to both of their roles which are distinct and yet complementary together with common principles that should govern the status of judges and prosecutors whatever the system in which they practice.

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Kosovo

1 January 1970

On 2nd July the Council of Europe presented a report on Kosovo. This report is based on the special mission undertaken between 23rd and 27th March last. The Commissioner of the Council of Europe for Human Rights, Mr Hammarberg insisted on the fact that the Kosovars as a population should benefit from European standards in terms of the protection of the human rights in spite of the lack of a consensus on the status of Kosovo. Even though progress has been made Mr Hammarberg observes: "In practice access rights to the judicial system is not respected, notably in the towns in the north. A more effective fight has to be undertaken against the corruption of the judicial system and the public sector."

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OSCE

Georgia

1 January 1970

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The Organisation for Cooperation and Security in Europe (OSCE) ended its mission in Georgia on 30th June after spending 17 years in the country raising fears in Tbilissi with regard to the security of the separatist territory of South Ossetia. Negotiations on the extension of the OSCE's mandate failed after the short Russian-Georgian war in August 2008. The UN Observation Mission in Georgia has also started to withdraw from Georgia since there is no agreement within the UN Security Council on the continuation of this mission. On 1st July the Russians and the Georgians agreed to meet on 17th September to continue the "Geneva Discussions" after the sixth session that was deemed positive by all. The highpoint of this session was the issue of the OSCE and UN missions which had come to an end.

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Declaration

1 January 1970

The OSCE Parliamentary Assembly adopted "the Vilnius Declaration" during the 18th Session on 29th June to 3rd July. The OSCE Parliamentary Assembly caused Moscow's anger as it condemned both Nazism and Stalinism in the same resolution the vote of which the Russian delegation boycotted. The declaration puts forward policy recommendations to governments of OSCE Member States. The 28 resolutions adopted notably focus on the enhancement of the OSCE, the observation of elections, food security, the international financial crisis and its social effects, Iran, Afghanistan, Human Rights and civil freedom, arms control and disarmament in Europe, labour migration in Central Asia, energy security, climate change, water management, freedom of expression on the internet and a moratorium on the death penalty. Assembly Chair, Joao Soares, (Portugal) was re-elected for a second term in office.

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EIB

Finland

1 January 1970

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On 29th June the EIB invested 250 million euros in the company Nokia Siemens Netowrks to encourage research and development in Finland. This investment will fund a mobile technology project whose R&D section will also be undertaken in Finland, Germany, Poland and Italy. EIB Vice-President Eva Srejber stressed the importance the EIB accords to the development of knowledge economies which guarantee the long term growth of European economies.

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Montenegro

1 January 1970

The European Investment Bank (EIB) signed a Guarantee Contract with the banks of Montenegro to a total of 100 million euros on 2nd July in Podgorica. This agreement should lead to greater support for SME's as well as investments for sectors such as energy and the protection of the environment. A minimum of 70% of this loan is due to be allocated to SMEs.

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Eurostat

Inflation

1 January 1970

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The 16 countries of the euro area experienced negative inflation of -0.1% in June in comparison with the same month last year after 0% in May according to a first estimate published on 30th June by Eurostat. It is the first time that inflation has been in the negative since the creation of the euro area in 1999 even though the danger of deflation mid-term has been rejected for the time being.

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Unemployment

1 January 1970

According to Eurostat figures published on 2nd July the unemployment rate in the euro area lay at 9.5% in May 2009 in comparison with 9.3% in April. It lay at 7.4% in May 2008. In the EU the unemployment rate rose to 8.9% in May 2009 in comparison with 8.7% in April. It lay at 6.8% in May 2008. This is the highest rate in the euro area since May 1999, and in the EU since June 2005.

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Industry

1 January 1970

According to Eurostat figures published on 2nd July the industrial production price index fell by 0.2% in the euro area and by 0.4% in the EU in May 2009 in comparison with April 2009. In April prices decreased respectively by 0.9% and 1%. In May 2009 compared with May 2008 industrial production prices declined by 5.8% in the euro area and by 5.7% in the EU.

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Studies/Reports

Middle East

1 January 1970

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The Centre for Applied Policy Research in Munich has published a study: "Europe and the Gulf Region - Towards a New Horizon". In spite of political and economic developments over the last few decades, the EU and the Gulf countries continue to share common interests that should encourage them to enhance their cooperation.

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Gas

1 January 1970

The German Society for Foreign Policy (DGAP) has published a study : "Vermittlung der EU im Gaskonflikt" (EU mediation in the gas crisis). Whilst Ukraine will elect a new president at the beginning of 2010 the threat of another gas crisis between Ukraine and Russia may grow. The study by Alexander Rahr reviews the situation in Ukraine - one of the worst affected countries in Eastern Europe by the economic crisis - on the eve of the presidential election.

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Publications

Georgia

1 January 1970

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In a work entitled "The Georgian Tragedy" published by Grasset, Salomé Zourabichvili writes about what happened when Mikhail Saakachvili came to power in November 2003 after the "Rose Revolution" up to the entry of Russian tanks into Georgia in August 2008. Dismissed in October 2005 after having been Foreign Minister since March 2004 she witnessed the "chronical of a foretold war" in the opposition: the threat of their great neighbour now seems to be the only thing which maintains the autocrat of Tbilissi in power. In the new game that is emerging between America, Russia and Europe Georgia will be a major stake.

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Culture

France/Turkey

1 January 1970

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The "Saison de la Turquie en France" (Season of Turkey in France) was officially launched on 30th June by the French Culture Minister. The event that will last nine months from July 1st 2009 to 31st March 2010 will offer 400 cultural, economic, intellectual events all over France (notably heritage, modern art, architecture and photography exhibitions, theatre shows, dancing and street art together with musical concerts) to discover the liveliness, youth and modernity of Turkey.

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Kiefer Opera

1 January 1970

German visual artist Anselm Kiefer is presenting an opera from 7th to 14th July at the Bastille Opera (Paris). The most French of German artists finalised this project on the initiative of the institution's director Gérard Mortier who hopes to introduce modern art to the opera on the occasion of the Bastille Opera's 20th anniversary. The work is called "Am Anfang" (In the beginning).

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Aix Festival

1 January 1970

From 3rd to 31st July the 61st International Festival of Lyrical Art is taking place in Aix-en-Provence. Created in 1948 the Aix Festival has grown over the years to become a truly European and international event. This year many events complete and enrich the programme, which grant a central position to Mozart's work, with two operas: The Magic Flute and Idomene, King of Crete.

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Avignon Festival

1 January 1970

From 8th to 31st July Avignon will welcome theatre and shows becoming the world's biggest stage. This is a highpoint for many artists and troops which set up in dozens of different places putting on nearly 1,000 shows. The Avignon Festival will focus on two distinct programmes. For three weeks the "In" programme devoted to prestigious theatre will mix with the "off" theatre - the so-called itinerant shows devoted more specifically to street art!

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Agenda

Newsletter Archives

A Union of criminal law - the vital European area of freedom, security and justice.

General elections 26 October in Georgia: a referendum on Europe

What the European Parliament should ask of future Commissioners

The European Union between the United States and China: should we choose between equidistance and following?

What future for European defence?

The Editors of the Newsletter :
Stefanie Buzmaniuk, Helen Levy

N°ISSN : 2729-6482

Editor-in-Chief :
Eric Maurice

Director of Publication :
Pascale Joannin

Any questions or suggestions?
Contact Us!

info@robert-schuman.eu

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The Newsletter n°402- version of 6 juil. 2009