Robert Schuman Foundation Chairman, Jean-Dominique Giuliani pubished an editorial on his site entitled "Europe facing the challenge of Corporatism". He explains that the recent strike by French air traffic controllers, the third since the beginning of the year shows just how selfish corporatism can undermine the effective integration of Europe.

The International Monetary Fund (IMF) published its analysis report of the Euro Area on 21st July. We read that the Euro Area succeeded in undertaking effective budgetary and monetary policies to boost its economy. However the IMF warns that austerity measures may affect growth by impeding household consumption. Recovery plans in the Member States should focus on three main axes: to ensure the solidity of the banking system, to consolidate the viability of public finances and encourage the implementation of structural reforms, notably for manufactured goods and labour markets.

During her visit to Brussels on 19th July the President of the Helvetic Confederation Doris Leuthard spoke with the President of the European Council Herman Van Rompuy, the President of the Euorpean Commission José Manuel Barroso, European Commissioner for the Internal Market and Services Michel Barnier and the European Commissioner for Fiscality Algirdas Semeta. Insitutional issues were the centre of discussions. The President of the Confederation and Mr Barroso agreed on the creation of a joint working group. This group is due to look into institutional issues, notably with regard to means to adapting developments in the community acquis, the interpretation of agreements and the settling of disputes. He is due to present the first results before the end of the year.

On 20th July as part of the cooperation and verfication mechanism established on 1st January 2007 when Bulgaria and Romania joined the EU, the European Commission published its annual reports on the progress achieved by these two countries in terms of reforming their legal systems and in their fight to counter corruption. The conclusions of these annual reports reveal constrasted results. Although the Commission points to work undertaken by Bulgaria and encourages it to continue it highlights slacking on the part of Romania and provides it with a series of recommendations to help it in this process.

The EU's High Representative for Foreign Affairs and Security Policy, Catherine Ashton took part in an international conference in Kabul on 20th July rallying representatives from over 70 donor countries. Participants expressed their suppport for Hamid Karzai's project gradually to take on greater responsibility in the management of his country's affairs and to guarantee full security as from 2014. They also gave their support to the Afghan government's "reconciliation programme" with the Taliban. In addition to this Catherine Ashton presented the priorities in continuing the EU's work in Afghanistan which includes the reform of the justice and police sectors as well as Human Rights.

The European Central Bank (ECB) announced on 19th July that the seizures of counterfeit euro bank notes declined by 13% in the first semester of 2010, compared with the second half of 2009 which is the first decrease in nearly four years. In all 387,000 counterfeit notes were withdrawn from circulation in the first six months of the year ie a decrease of 13% in comparison with the previous six months according to an ECB press release. In the second half of 2009 the number of counterfeit notes seized increased by 8% to total 447,000.

During the press conference on 21st July that traditionally precedes the summer recess in Berlin German Chancellor Angela Merkel made a positive review of German policy. According to Ms Merkel Germany has resisted rather well to the economic and financial crisis; it is emerging strengthened from it. Internationally "our way of managing problems has earned us a certain amount of acknowledgement," she stressed. According to Ms Merkel the German government has set good priorities on a political scale, notably with its measures for recovery to counter the crisis, the extension of the law on the minimum wage in new sectors, support programmes for the significant development in the production of electric cars as well as the launch of a new programme for study grants. The Chancellor announced major decisions for the autumn.

On 20th July Austrian Chancellor Werner Faymann received his Bulgarian counterpart Boïko Borissov in Vienna. The two leaders discussed the economy and the fight to counter corruption. Mr Faymann said that Austria and Bulgaria were working together closely in order to fight crime. Moreover he pointed to the successes of the Bulgarian government in its fight against corruption that had been published in a recent EU report. The Bulgarian Prime Minister declared: "in the EU's report the political will with regard to the fight against organised crime was recognised in particular. It is extremely important for Bulgaria in view of its preparations to join the Schengen Area." The completion of the Danube Strategy was also addressed: "Austria and Bulgaria are striving towards the same goals in this domain."

On 21st July the Spanish parliament adopted the reform of the law governing regional savings banks that will lead to a limitation in the influence of local political powers over their management and help them raise funds more easily. Finance Minister Elena Salgado believes that this reform was "the most important ever taken in this sector since the 19th century," and that it "would enhance the country's financial system." The new law limits the voting rights that local administrations and public bodies can have over the management boards of banks to 40% against 50% before.

Russian President Dmitri Medvedev travelled to Finland on 20th and 21st July. He met Finland's President Tarja Halonen as well as Finnish Prime Minister Mari Kiviniemi. Mr Medvedev and Ms Halonen discussed the new European security architecture, the development of the strategic partnership between the EU and Russia and in particular the repeal of the visa system with the EU countries and the partnership for modernisation. During a joint press conference the Russian president launched a new appeal to the EU with regard to repealing visa requirements between Russia and Europe and he requested Finland's aid in this respect.

The President of the French Republic Nicolas Sarkozy received Doris Leuthard, the President of the Helvetic Confederation at the Elysee on 21st July. During the meeting issues relating to the preparation for the G20 were addressed, relations between the EU and Switzerland as well as certain bilateral and international issues. Ms Leuthard announced that main convergence in opinion existed between France and Switzerland with regard to the main G20 subjects - the next meeting of which will be chaired by France in November 2010 and November 2011. Mr Sarkozy believed that Switzerland should "be associated early on in the preparation of the G20."

On 21st July Greece expressed its support to Cyprus with regard to the proposals made by Cypriot President Demestris Christofias to speed up ongoing talks that aim to reunify the island that has been divided for the last 36 years. President Christofias's proposals "show that he is a step ahead in the initiatives taken to settle the Cypriot issue," declared Greek Prime Minister George Papandreou to the press after a meeting with Mr Christofias at the airport of Larnaca.

On 21st July Hungarian Prime Minister Viktor Orban travelled to Berlin where he met German Chancellor Angela Merkel. During a press conference, Ms Merkel pointed to the close collaboration and friendly links between Hungary and Germany. From an economic point of view she said that even though Hungary was not in the Euro Area it should as an EU Member State respect the Union's budgetary criteria setting the budgetary deficit at a limit of 3%. Mr Orban said: "We are slowly becoming the world champions with regard to reducing spending," adding that Hungary would succeed in reducing its deficit to 3.8% of the GDP in 2010 as agreed with the IMF and the EU against a loan of 20 billion euros.

In June Italian exports to extra-EU countries increased by 26.4% and imports by 37.4% in comparison with the same period the previous year according to statistics issued by the National Statistics Institute (Istat) on 20th July. Italy recorded a trade deficit of 1.064 million euros in comparison with a surplus of 77 million euros in June 2009. This situation is however mainly due to energy imports without which the country would record a surplus of 14.266 million euros. On a monthly basis exports are up by 9.2% and imports by 2.9%.

Negotiations that were started on 5th July in view of forming a government coalition between the Liberals (VVD) and the left in the Netherlands failed. The hypothesis of a government coalition including Geert Wilders' party (PVV) rose to the surface again after the Christian Democrats (CDA) accepted the launch of exploratory discussions on 24th July with this party as well as with the Liberals who emerged the winners of the general elections that took place on 9th June last.

Helena Vasquez has just been appointed political advisor on the crisis in Kyrgyzstan to work with the EU Special Envoy for Central Asia, Pierre Morel. She is due to help acquire better knowledge of the situation in the country since the riots in April 2010 that led to the deaths of many and caused major population displacements. Helena Vasquez was recruited by CRT (EU's Civilian Response Team), created by Sweden in 2004. This comprises European experts who work on crisis situations in the world and look for solutions to settle them.

On 20th July the British Prime Minister David Cameron started his first official visit to the USA since his election in May 2010. The aim of this visit is to reconstruct "the special relationship" entertained by the two countries. David Cameron and Barack Obama agreed on the strategy to undertake in Afghanistan which comprises the transfer of the country's security over to the Afghans via the training of the Afghan army and policeforces and to plan for the withdrawal of the Anglo-American troops. Iran, bilateral exchange, and the BP/Lockerbie affair were also on the agenda.

On 21st July the Appeals Chamber of the ICTY ordered that a new trial be held for former Prime Minister of Kosovo, Ramush Haradinaj. As a former leader of the Kosovo Liberation Army (UCK) he was tried in 2008 and found not guilty of war crimes and crimes against humanity. Mr Haradinaj is again being prosecuted for war crimes including murder, cruel treatment and acts of torture. He will be judged with two other suspects Idriz Balaj and Lahi Brahimaj, former UCK commanders. It is the first time that suspects are being tried again at the ICTY.

In a consultative opinion published on 22nd July the International Court of Justice said it believed that Kosovo's declaration of independence did not infringe international law. The Court which was addressed by the General Assembly of the UN on 8th October 2008 concluded that the declaration of 17th February 2008 did not infringe either general international law nor the Security Council's resolution 1244. However the international judges could only decide on the conformity of the declaration with international law; the Court insisted on saying that it was not responsible to say whether Kosovo had achieved the status of State and that this decision did not comprise a precedent. Serbia announced that it would not acknowledge independence. The EU welcomes this decision that opens "a new stage" and says it is ready to "facilitate a process of dialogue between Pristina and Belgrade" because the future of the two countries lay in the Union.

According to estimates published on 22nd July by Eurostat the index of new industrial orders in the euro area increased by 3.8% in May 2010 compared with April 2010. In April the index rose by 0.6%. In the EU new orders increased by 2.7% in May 2010 after a 0.3% rise in April. Excluding naval construction as well as railway and aerospace equipment whose variations tend to be more volatile new industrial orders recorded a rise of 2.6% in the euro area and 2.7% in the EU. Year on year new industrial orders increased respectively by 22.7% and 20.1%.

A Eurobarometer inquiry published on 20th July shows that Europeans want EU countries to do more in favour of road security. 94% of Europeans think that alcohol whilst driving is the main problem in terms of road security, 78% believe that excessive speed is a major problem. Most of those interviewed (52%), think that EU countries should as a priority improve road infrastructures; 42% of them believe it is a priority to impose the respect of the law of the road and 36% believe that this code should be applied in the same way to foreign drivers as to local drivers. In addition to this the Commission adopted an ambitious programme for road security on the same day thereby aiming to reduce the number of deaths on the roads by half over the next decade.

The think-tank Chatham House published a study on British policy with regard to the USA and the EU entitled "Between Faith and Reason: UK Policy Towards the USA and the EU", written by Anand Menon.

Documentation française has published a study by Stéphane Saurel in its series "Réflexe Europe" on "Le Budget de l'Union européenne" (The EU Budget). Budgetary issues feature amongst the most sensitive, complex stakes but they are also the most stimulating in European integration: they give an idea of the level of integration achieved by the EU. This study attempts to provide the necessary information to understand future discussions.

The Pergamon Museum of Berlin is putting on an exhibition until 3rd October entitled "Bunte Götter. Die Farbigkeit antiker Skulputur" (Colourful Gods. The Colours of Ancient Sculpture).