Spanish MPs approved the law/decision adopted by the Council of Ministers, 168 votes in favour, 8 against, 173 abstentions on 22nd June - this focused on the reform of the labour market. IMF Director General, Dominique Strauss-Kahn believed during his visit to Spain on 18th June that this reform was vital. The governor of the Spanish bank, Miguel Angel Ordonez believes this new legislation inadequate, notably criticising the financial penalisation of short term work contracts. In addition to this the Spanish government decided to freeze the price of electricity by suspending an increase of 4% planned for July to help households and companies to face the crisis, it announced on 24th June.

The Chancellor of the Exchequer, George Osborne presented the first emergency budget drawn up by the Cameron government to parliament on 22nd June - it is designed to eliminate structural deficit within five years. Amongst the main measures to be taken feature the freezing of the highest salaries in the civil service for the next two years, speeding up the transfer over from 65 to 66 years with regard to state retirement pensions, the rise of VAT from 17.5% to 20% as from January 2011 and the introduction of a capital gains tax rising from 18 to 28% for the wealthiest.

According to data broadcast by the National Statistics Institute (Istat) during the first quarter of 2010 employment decreased by 0.8 points in comparison with the same period the previous year to lie at 56.6% and the number of people looking for work increased by 14.7%. The unemployment rate now lies at 9.1% in comparison with 7.9% in 2009. In addition to this in May exports to third countries increased by 15.8% and imports by 35.5% in comparison with the same period in 2009, according to figures published by Istat on 21st June. Italy records a trade deficit of 1.416 million euros whilst in May 2009 it achieved a surplus of 464 million euros.

On 23rd June the INSEE published its economic paper. After slight recovery in the second quarter (+0.5%) the French economy will now recover moderately (+0.4%) in the third and fourth quarters. This growth will place France between Germany and the countries in the south of the euro area. Activity is due to grow by 1.4% in 2010. The depreciation of the euro will cause inflation to rise in France as in the rest of the euro area via the rise in prices of imported goods. However unemployment will remain stable in 2010 at 9.5% in mainland France. According to figures published by INSEE on 24th June the number of those registered as unemployed in mainland France increased in May by 0.8% (+22,600) to 2.699 million and by 0.4% (+16,700) to 3.942 million if those working on reduced time are included. Long term unemployment continues to rise.

Austrian Chancellor Werner Faymann declard on 22nd June that the last European Council had shown that discussion on the regulation of the financial markets were vital. "However in the EU we are still far from achieving common economic governance," he added. In his opinion a single agreement on fiscal measures is still not on the agenda.

According to an economic report by the Finnish Finance Minister published on 23rd June the Finnish economy is due to grow in 2010 thanks to a recovery in domestic demand and exports. In 2010 growth is due to reach 1.5% and 2.5% the following two years. However the employment market will continue to worsen. Across the entire year of 2010 the government is forecasting an unemployment rate of 9.5% and 8.9% in 2011. The budgetary situation is due to "strengthen significantly" in 2011 thanks to growth but the public deficit will continue on into 2011 and 2012.

The euro area balance of payments revealed a deficit of 5.1 billion euros in April after a surplus of 1.5 billion euros in March according to provisional figures published on Tuesday by the European Central Bank. The balance of payments is the most important measure of trade between the euro area and other countries.

The eight most industrialised countries (G8) met in Huntsville, Canada on 26th June. They condemned the bellicose attitude of North Korea and demanded that Iran "hold transparent dialogue" with regard to its controversial nuclear programme. They also demanded that Afghan forces make real progress "within the next five years". With regard to the economy the G8 countries re-iterated their commitment to reaching a successful conclusion to the so-called "Doha Round" on the liberalisation of world trade. They also noted that the world economic recovery was still "fragile" and noted that the crisis had "compromised" certain Millenium Development Goals. The next G8 summit will take place in Nice in spring 2011.

On 25th June the Greek government adopted unanimously the reform of the retirement system, one of the pillars of the economic policy agreed upon with the EU and the IMF in exchange for massive financial aid. The text will now be submitted to parliament where the socialist party and its allies have 155 of the 300 seats. To be able to receive the 110 billion euros in EU and IMF aid the project has to be adopted by the end of September.

The Romanian government announced new measures associated with the IMF and the EU to reduce the budgetary deficit whilst part of its austerity plan was deemed non-constitutional on 25th June. As a consequence the government decided to increase VAT from 19% to 24% to limit the budgetary deficit and to achieve a new part of the vital IMF aid said Prime Minister Emil Boc.

The German Federal State will have to borrow much less this year than initially forcast since Europe's leading economy is doing better than forecast said the Finance Minister on 22nd June. The minister indicated that the structural budgetary deficit, the difference between the spending and the revenue the State has to fund with a loan will be 15 billion euros less than in the budget adopted in March. The structural budget is therefore due to be brought down to 53 billion euros.

The leaders of the G20 countries, who met on 26th and 27th June in Toronto maintained, in a final press release that their "priority" was to "protect and enhance" world economic recovery, qualified as "fragile and unequal". They promised to reduce deficits by half by 2013 and reduce public debt in a ratio with the GDP before 2016. Plans to reduce deficts should be adapted to the specific conditions of each country. The G20 has given up the idea of establishing a specific coordinated tax on the banking sector; some EU Members (Germany, France and the UK) plan to implement this tax to force the financial sector to contribute "in a just and consequential" manner to the cost of public interventions thereby leading to a restoration of the banking system or the funding of a settlement to financial crises. The G20 hope "for greater flexibility in exchange rates in some emerging markets." The next G20 meeting will take place in Seoul in November.

In 2008 and 2009 a record number students benefited from EU aid to study or to train in companies abroad in one of the 31 countries taking part in the Erasmus programme (EU, Iceland, Liechtenstein, Norway and Turkey). According to figures published on 21st June nearly 200,000 students in higher education received a grant to study or to train abroad which represents an overall increase of 8.7% in comparison with the previous university year and brings the number of young Europeans who have benefited from the Erasmus programme's support to over 200 million since it was created in 1987. This sharp rise involves the number of students participating in company training schemes which increased by over 50% in comparison with the previous year. Last year over 36,000 staff members from higher education establishments went abroad to teach or take part in training sessions in one of the 31 countries.

On 24th June the European Commission issued a motived opinion as part of a Court of Justice procedure between Hungary and Slovakia. Hungary is accusing Slovakia of having refused access by its President to Slovakian territory on 21st August 2009. The Hungarian authorities then turned to the Commission before turning to the Court of Justice, believing that Slovakia had not respected its obligations in virtue of Community law. The Commission finally concluded that the measures of EU law were not applicable to visits by Head of Member States since these are governed by international law. The free movement of citizens only applies to "a person as a private citizen".

The USA and the EU signed the "Open Sky" agreement on 24th June in the area of aviation. It opens up new trade paths and enhances the cooperation framework with regard to issues such as the environment, social protection, competition and security. It also offers additional possibilities for investment and access to future markets. Within this context the Transport Commissioner Siim Kallas said, "Today we are taking an important step forwards in our mutually advantageous relationship with the USA in the area of aviation." The implementation of the entire agreement should boost the economy to a total of 12 billion euros and create up to 80,000 new jobs.

On 24th June the European Commission started legal proceedings against all Member States for the non-respect of the Union's legislation in various areas. In particular the Commission asked 20 Member States to apply the rules designed to create a single gas and electricity market to the full so that this is transparent, interconnected and effective to guarantee competition and the security of supplies. It also decided to apply to the Court of Justice for legal action against 13 Member States which have not correctly implemented legislation on the opening up of the European railway market to the competition. The Commission also moved on to a new stage in the infringement procedure against 12 Member States which still have not completed the implementation of the "Services" directive. Finally several decisions have been taken against the States that do not respect European environmental standards.

On 24th June the EU adopted measures that are designed to simplify the management of structural funds and cohesion to help European regions rise to the crisis. The Commissioners responsible for regional policy, Johannes Hahn and for Employment, Social Affairs and Inclusion, Laszlo Andor welcomed this decision pointing out that these measures will help meet problems related to liquidity and that they will reduce administrative restrictions with regard to access to European funds. The three funds in the cohesion policy are investing a total 347 billion euros in European regions over the 2007-2013 period.

As from 1st July consumers no longer have to fear astronomic bills when they use internet if they connect onto mobile networks in the EU by means of a telephone or a computer. Thanks to rules established by the EU in terms of roaming a limit of 50 euros before VAT will automatically be set for roaming data services (except if the user has opted for a higher or lower limit). Operators will have to send a warning to users when their consumption has reached 80% of the planned limit. The maximum tarif to make a roaming call will be brought down to 39 cents per minute (before VAT), instead of 43 at present whilst to receive a call it will cost a maximum of 15 cents per minute (before VAT) instead of 19 at present. The cost of calls sent or received abroad within the EU will therefore have decreased by 73% in comparison with 2005 when the EU started to take steps against excessive tarifs practised with regard to roaming.

On 21st and 22nd June the President of the European Parliament Jerzy Buzek met the Russian President Dmitri Medvedev in Moscow. Mr Buzek, who is the first President of the European Parliament to travel to Russia in the last eleven years, confirmed the need for Russia to enhance democracy and the protection of civil and political rights. He also expressed his support for the modernisation of Russia and called for the respect of the Energy Charter and the Transit Protocol. With regard to visas he said he understood the expectations of the Russian authorities, but certain conditions had to be fulfilled before the total liberalisation of the system could take place.

The 18 additional MEPs planned for in the Lisbon Treaty will soon be able to take up their seats in the European Parliament. The modification of the treaty was approved by Member States' representatives during an intergovernmental conference on 23rd June; European Parliament gave its greenlight. The 18 new MEPs will be able to take up their seats as soon as the national parliaments of the 27 Member States have ratified this modification.

On 23rd June Parliament approved its support to Albania and Kosovo's accession to the Union in two resolutions on condition that the two countries fulfil the admission criteria. Parliament pointed to the progress that both countries have made in terms of reform but insist on the enhancement of measures to counter corruption and organised cirme, notably in Kosovo. Parliament gave a favourable opinion to the Commission's proposals to lift visas on Albania by the end of the year. MEPs called also on all Member States to acknowledge the independence of Kosovo to "enhance a common approach" towards this unstable country.

On 21st June the High Representative of the Union for Foreign Affairs and the Security Policy, Catherine Ashton signed an agreement with representatives of the Commission, Parliament and the Council on the organisation and running of the European External Action Service (EEAS). The aim is to have an operational EEAS in time for the first anniversary of the entry into force of the Lisbon Treaty, even if, for budgetary reasons European civil servants will only join it on 1st January 2011. The Parliament, determined to play its role to the full, achieved the right to view the EEAS's operational budget and to have the power of codecision with the Commission with regard to development aid, a vital chapter in the Union's diplomatic work, notably from a financial point of view.

The EU and the States of Africa, Caribbean and the Pacific (ACP) signed the revision of the Cotonou Agreement on 22nd June; this treatyt aims to reduce poverty, promote sustainable development and integrate these States into the world's economy. The new text steps up the fight against the proliferation of light arms, organised crime, human trafficking, drugs trafficking and AIDS. The agreement also facilitates the aid provided for adapting to climate change and highlights the sectors of aquaculture and fishing and regional cooperation.

The 27 European Transport Ministers signed a protocol on 24th June modifying the "Open Sky" agreement with the USA to step up the opening of markets and opportunities for investment in the aviation industry. Ministers also discussed the contribution of the transport sector to the new European strategy for growth and employment and adopted the conclusions on an action plan that aimed to help local and national authorities achieve the goal of sustainable, healthy, safe urban mobility. They reviewed the measures taken to rise to the aviation transport crisis caused by the irruption of the Icelandic volcano and invited the Commission to continue work to establish joint risk management procedures and to improve the sector's financial situation.

French Prime Minister François Fillon received the report by Michel Camdessus on 25th June on the constitutional reform of the balance of public finances. This report will directly inspire the government in preparation for this vital reform for the sustainable recovery of French public accounts.

The United Nations signed a "strategic partnership" with Serbia in order to foster its European integration with various aid programmes to a total of 202 million euros between 2011 and 2015 said the Serb government on 25th June. This strategy includes investments in projects linked particularly to sustainable development, social inclusion and the promotion of regional cooperation said the Serb Foreign Minister in a press release.

The Parliamentary Assembly of the Council of Europe adopted a recommendation on 22nd June focusing on greater investment by the Organisation in Kosovo alongside the OSCE and the European Mission Eulex. The Assembly believes that the Council has a role to play in fostering democracy and the respect of law by diversifying its activities in Kosovo whilst maintaining its neutrality. The goal of this recommendation is to encourage the Council of Europe to increase the aid it provides to the country as part of the process to modernise it.

According to estimates published on 24th June by Eurostat the index of new industrial orders in the euro area increased by 0.9% in April 2010 compared with March 2010. In March the index grew by 5.1%. In the EU new industrial orders decreased in April by 0.2% after a rise of 7.1% in March. Excluding shipbuilding as well as railway and aerospace equipment whose variations tend to be more volatile new industrial orders recorded a rise of 1.1% in the euro area in 0.9% in the EU. Year on year new industrial orders increased respectively by 22.1% and 21.8%.

According to Eurostat figures published on 24th June Foreign Direct Investments (FDI) by the EU in third countries decreased by 24% in 2009, dropping from 348 billion euros in 2008 to 263 billion in 2009 whilst FDI from the rest of world into the EU increased by 12%, rising from 199 billion to 222 billion euros.

Eurobarometer has published a study on the social effects of the crisis. According to the survey's results, one European in six says that they are constantly in difficulty with regard to paying their household bills; three quarters of citizens think that poverty has increased in their country over the last year. 73% of Union citizens explicitly forecast a decline in their retirement pension or believe that they will have to work longer and save more for their old age; one European in six is not very sure or not sure at all that they will retain their job over the next twelve months. On 17th June EU leaders set themselves the goal of helping 20 million Europeans to overcome poverty and social exclusion over the next decade.

The second edition of the euro area's quarterly report in 2010 published by the European Commission on 24th June focuses on "Euro area exports, pre-crisis results and future challenges". Over the ten years prior to the crisis euro area exporters enjoyed vigorous growth amongst emerging markets and achieved high specialisation in key sectors that served to drive exports along. These are now facing a certain number of challenges that have emerged because of the crisis.

On the eve of major reforms to the retirement system in France the report by Frenchman Arnaud Robinet entitled "Retraites: l'Europe à l'heure de la réforme" offers a summary of the various European experiences in this area. The Robert Schuman Foundation invites you to consult its summary table on retirement systems in the 27 EU Member States.

The Fesch Museum of Ajaccio which is home to the biggest collection of Italian paintings in France after that of the the Louvre officially re-opened its doors on 24th June after two years of work which now places it amongst the biggest Fine Arts Museum in France. For its re-opening the museum is hosting three exhibitions. The first is organised on the museum's key work "The man with a glove" by Titien. Another is devoted to "Lucien Bonaparte, a free man" the younger brother of Napoleon and a great collector and the third is devoted to "Drawing in Florence in the time of Michelangelo".

The Maeght Foundation at Saint-Paul-de-Vence is putting on a "Giacometti & Maeght 1946-1966" exhibition until 31st October. Using more than 170 works as a base; some of these are exceptional and on show for the first time, surrealism and the post-war period are illustrated via a great number of stretched, long-limbed sculptures including that of "The Walking Man". Paintings, on canvass, wood or cardboard as well as various drawings and intimate letters are also on display.

Domenico Ghirlandaio (1449-1494) was a major portrait painter of the "Quattrocento" in Italy and the Thyssen-Bornemisza Museum in Madrid is paying tribute to the Florentine artists in an exhibition which will go on until 10th October. The retrospective "Ghirlandaio and the Renaissance in Florence" brings together about 60 works of art focusing on the artist - who notably painted the Sixtine Chapel with Sandro Botticelli - and his main piece of work, "the Portrait of Giovanna Tornabuoni".

The Summer Exhibition at the Royal Academy of Arts will be presenting the works of artists such as Ed Ruscha, Gillian Ayres and Tracey Emin until 22nd August.