The Lisbon Treaty has made provision for "enhanced cooperation agreements". In order to understand how this works the Robert Schuman Foundation has published in its series of "Notes" a study by Pierre Fauchon and François Sicard on "Europe and Voluntary Cooperation, or how to provide Europe with new impetus ...". This paper is available on the Foundation site. In an interview granted to "Window on Europe" Pierre Fauchon sets out the details of enhanced cooperation agreements.

According to new forecasts on the part of the Finance Minister published on 15th July Germany is due to return to within the framework established by the Stability and Growth Pact by 2012 with a public deficit of 3% of the GDP, one year before the date that was initially set. According to this new forecast the public deficit is due to rise to 4.5% of the GDP this year, 4% in 2011 and 3% in 2012. It will lie at 2% in 2013 and 1.5% in 2014. In absolute values the public deficit will total 117.5 billion euros this year says the Finance Ministry.

On 14th July during the 4th EU-Brazil summit in Brasilia European Council President Herman Van Rompuy, Commission President José Manuel Barroso and Brazilian President Lula da Silva expressed their satisfaction at the increase in exchanges between the two parties. They said they were pleased with the positive implementation of the joint EU-Brazil action plan adopted in December 2008 and with the results of High level political dialogue. They addressed global issues such as the economic and financial crisis, sustainable development, energy and biodiversity then they discussed regional relations. Mr Van Rompuy took part in the 4th meeting between European and Brazilian companies.

As part of the work that it is undertaking to make safe and consolidate the financial system the Commission presented proposals to modify existing European rules in view of enhancing the protection of bank account holders and retail investors. The Commission also launched a public consultation on the means to improve the protection of people who take out insurance. Amongst the options put forward are notably the creation of insurance guarantee regimes in all Member States. The measures adopted will guarantee bank account holders, in the event of their bank's bankruptcy, a faster return of their investments and improved protection. As for people who use investment services they will be reimbursed more rapidly. All of these proposlas are to be put to the European Parliament and the Council of Ministers.

Maximum use by the European Parliament and national and regional parliaments of the new powers that come as a result of the Lisbon Treaty were at the heart of interparliamentary discussions organised on 12th July in Brussels; this meeting brought together MPs from these institutions. The Lisbon Treaty enables national parliaments to express themselves for the first time ever with regard to legislative proposals independently of the governments and in extreme cases they can impede EU legislation. The legislative and budgetary powers of the European Parliament are also enhanced since Parliament now decides on the cohesion policy, on an equal footing with the Council. With this in mind the cohesion policy must continue to promote prosperity and reduce differences between regions but it must also take better account of their particular features and be less bureaucratic.

The 27 European Agriculture and Fisheries Ministers looked into the report on the future of the milk sector after the abolition of quotas in 2015. Contractual relations between dairies and producers, the role of professional organisations, the need for innovation and research, transparency of the supply chain and labelling were the focus of discussions.

On 15th July German Chancellor Angela Merkel and Russian President Dmitri Medvedev enhanced relations between their two countries during the 12th German-Russian intergovernmetal consultations. Ms Merkel said that German-Russian cooperation was a success story and she offered German aid to Mr Medvedev to modernise Russia. Several contracts between companies in both countries were signed. They addressed the issue of liberalising visas as well as the elucidation of the murder of Human Rights militant Natalya Estemirova that occurred on 15th July 2009. At the same time as the intergovernmental consultations the "Petersburg Dialogue" was taking place in Yekaterinburg; this enables German and Russian civil societies to meet each other and exchange views. Chancellor Angela Merkel took part in these discussions alongside President Medvedev; she welcomed the idea of creating a youth parliament.

Austrian Chancellor Werner Faymann declared on 12th July in Zagreb that Croatia's progress towards the EU opened up perspectives for accession by all Balkan countries. He met Croatian Prime Minister Jadranka Kosor who said that the conclusion of membership negotiations comprised "an important message to neighbouring countries". They discussed the possibilities for the enhancement of economic cooperation notably in the sectors of energy, the protection of the environment, infrastructures and tourism.

Russia and Bulgaria signed a vital agreement on 17th July with regard to the construction of a Russian-Italian gas pipeline, South Stream, under the Black Sea that will enable Sofia to make safe its gas supplies.

The network of savings banks in Spain is continuing to restructure taking on board the effects of the collapse of the Spanish real estate bubble in 2008. The Frob, a public fund run by the Bank of Spain that is specialised in the restructuring of savings banks, selected the BBK to take over the Spanish savings bank Cajasur. The BBK, a savings bank based in the Basque Country will now hold Cajasur's assets since the bank is experiencing financial difficulties and until now was controlled by the Catholic Church.

European Economy and Finance Ministers adopted a decision on 13th July authorising Estonia's transfer over to the euro as from 1st January 2011. The conversion rate was set at 15,6466 Estonia crowns for one euro - notes and coins will be introduced on 1st January. On this date the euro area will comprise 17 members.

On 12th July after a final vote by the Senate and then the National Assembly, the French parliament adopted the draft law put forward by the Foreign and European Affairs Minister with regard to France's foreign policy. The leading measure in this text is the creation of an agency responsible for external cultural action named "Institut Français". This agency will be placed under the control of the Foreign Affairs Ministry and will be led by former minister Xavier Darcos. It takes over from the association "CulturesFrance" whose work has been extended to the promotion of the French language, ideas, knowledge and scientific culture.

Nicola Consentino, who is subject to an arrest warrant for working with the Mafia resigned from his post as Under State Secretary for the Economy and Finance on 14th July. Mr Cosentino already presented his resignation in February to avoid "any instrumentalisation" of his legal mishaps before the regional elections in March, but head government, Silvio Berlusconi had rejected this move until now.

The new Polish President Bronislaw Komorowski was host to his German counterpart in Warsaw on 13th July. The two men want to enhance relations between Poland and Germany. They hope to improve the European integration process by organising conferences that bring together German and Polish intellectuals who will think together about the future of Europe.

Following the results of the general elections on 28th and 29th May the new Czech government was officially appointed on 13th July. The new Czech Prime Minister Petr Necas is leading a three party coalition comprising the Civic Democratic Party (ODS), TOP 09 and Public Affairs (VV). Enjoying a majority of 118 seats out of 200 in the Chamber of Representatives the new government, which includes no women members, wants to implement without delay audacious reforms that will affect the retirement and health systems. It announced that it wanted to bring the public deficit below the 3% of the GDP, a criteria to be a member of the euro area even though the adoption date of the single currency is still not on the agenda.

Romanian President Traian Basescu turned to the Constitutional Court on 13th July with regard to a reform of the Anti-Corruption Agency (NAI) adopted by the Senate but which was highly criticised by NGO's specialised in the fight against corruption. The Romanian Constitutional Court declared on 19th July that the law reforming the National Agency for Integrity responsible for the fight against corruption adopted on 30th June last by the Senate was unconstitutional. The Court's decision means that this law will have to be brought before the Romanian Parliament again for further modifications - this comes just as a report by Brussels on the state of the legal system in Romania is to be published during the summer.

The number of requests to register for unemployment benefit has declined for the fifth consecutive month in the UK whilst the number of workers is at its highest level in four years. The percentage of unemployed receiving benefit fell in June to 4.5% of the British working population. In all the unemployed represent 7.8% of the working population in the UK: it is the lowest percentage since January 2010.

The World Bank has just granted another loan of 425 million dollars to Albania. This loan is designed to support the country's growth between 2011 and 2014 and will fund infrastructure projects, notably in the areas of public health thanks to investments in water and environment management as well as in education. This loan comes in addition to the 50 million euros granted in June by the European Investment Bank for the rehabilitation of the road network in rural areas.

Foreign Ministers of the 56 OSCE Member countries started bilateral talks with their Kazakh counterpart Kanat Saoudabayev near Almaty, the biggest town in Kazakhstan, which is ensuring the organisation's rotating presidency this year. During their informal meeting the heads of diplomacy mentioned their support to Kyrgyzstan and also the situation in Afghanistan and security in Europe.

According to estimates published on 13th July by Eurostat energy produced by renewable sources represented 10.3% of final consumption of raw energy in the EU in 2008 in comparison with 9.7% in 2007 and 8.8% in 2006. In 2008 the greatest shares of renewable energy consumption in total consumption figures were seen in Sweden (44.4% of total consumption from renewable energy sources), in Finland (30.5%), in Latvia (29.9%), in Austria (28.5%) and in Portugal (23.2%) and the lowest were in Malta (0.2%), Luxembourg (2.1%), the UK (2.2%), in the Netherlands (3.2%) and in Belgium (3.3%).

According to a Eurobarometer survey on the geographical mobility of labour 17% of Europeans plan to work abroad one day and 48% would be ready to look for work in another country or region if they lost their job. Six Europeans in ten believe that mobility is a good thing for European integration and that it is good for the economy, the labour market and people as individuals. On 13th July the European Commission adopted a report that summarises Europeans' right to live and work in another EU country. This report provides updated information on the development of legislation over the last ten years. At present 2.3% of EU inhabitants live in an EU member state other than their own.

The "TEEB for Business" report presented by the European Commission on 13th July pleads in favour of the inclusion of biodiversity in business plans and the primary activities of the private sector across the world. It highlights the recent high growth in the sector of products and services that carry an ecological label and consumers' increasing interest in sustainable production. It shows that biodiversity can offer businesses significant economic perspectives. The Commission also adopted a proposal to review the community regulations on GMO's (Genetically Modified Organisms). The proposals enable Member States to choose to allow or not the cultivation of GMO's on part or all of their territory, .

The Gluck Festival is presenting operas by German composer Christoph Willibald von Gluck (1714-1787) in Nuremberg from 16th to 23rd July. This year the festival is called "Gluck, Paris und die Folgen (Gluck, Paris and the consequences); it also offers work by Hector Berlioz and André-Ernest-Modeste Grétry.