Turkey's present Constitution dates back to 1982 and no longer corresponds in the opinion of the Turkish political classes with international democratic standards. This is why the ruling party (AKP) suggested at the start of the year a constitutional reform that will transform the present Constitution into a civilian one - it will be submitted to referendum on 12th September next. According to Prime Minister Recep Tayyip Erdogan this reform that matches European requirements may, if it is adopted, accelerate the EU membership process. The result is uncertain but would, whatever the result, comprise a strong sign for the party in the majority (AKP) and the opposition parties (MHP and the People's Republican Party) just one year before the general elections planned for the summer of 2011.

According to data published on 29th July by the European Commission the confidence indicator with regard to the economic state of the euro area had risen in July by 2.3 points in comparison with the previous month (1.9 points for the entire EU). This is mainly the result of the extremely positive result on the part of Germany (+4) followed by France (+2.6), Poland (+1.9) and Italy (+1.7). Spain however recorded a decline of 2.2 points. The Business Climate Indicator also increased - a sign that the recovery in economic activity in industry will continue over the next few months.

On 5th August Greece successfully passed the first control of its accounts by the EU and the IMF three months after starting application of an unprecedented austerity plan. After a visit to Athens a group of experts from the EU, the IMF and the European Central Bank announced that the country's economy had made "significant progress" but that it still faced "major challenges". The control of the accounts aimed to assess the application of austerity measures adopted by the government in May in exchange for a 110 billion euro loan over three years on the part of the euro area countries and the IMF - the first instalment of 20 billion euros of which has already be given. The European Commission gave a favourable opinion with regard to the payment of the second instalment on 19th August - this is designed to help Greece face the crisis believing that Athens had mainly fulfilled the terms that it had been issued with and that it had implemented "impressive budgetary balancing."

France has reviewed its growth forecast for 2011 down to 2% instead of 2.5% previously according to a press release published on 20th August by the presidency of the Republic after a meeting between French President Nicolas Sarkozy, Prime Minister François Fillon, French Economy and Budget Ministers Christine Lagarde and François Baroin. The French President did however ask the government to continue the economic policy started in 2007 and said that the reduction of the public deficit to 6% of the GDP in 2011 remained the major priority.

The Danish government presented its draft budget 2011 on 24th August - this is still being affected by the crisis with a public deficit in Denmark forecast at 78.7 billion crowns (10.56 billion euros) ie 4.4% of the GDP. This deficit is due to show a slight decrease in comparison with 2010 when the government is expecting to see a public deficit of 4.6% of the GDP instead of 5.1% that was expected in a previous forecast in May. In addition to this the government maintained its growth forecast for 2010 at 1.4% but raised growth to 1.8% that was previously expected at 1.7%. At the same time it improved its expectations with regard to unemployment figures in 2010 that is due to affect around 121,000 people this year and 125,000 in 2011 whilst May forecasts announced 130,000 and 135,000 unemployed.

The financial evaluation agency Standard and Poor's decreased Ireland's debt mark from AA to AA- on 24th August giving it a negative perspective which means that it could decline again soon. It means a rise in the cost of support to the financial system for the State. "Our latest forecasts show that the public debt in Ireland will reach 113% of the GDP in 2012," explained S&P.

On 25th August the German government adopted a draft law to restructure the banking sector whereby in the future German banks will have to pay the State a share of their profits. This draft law is due to be validated by Parliament before the end of the year. The amount of the tax will be set according to the size of the establishment and the degree of risk created by its work. The sums collated, estimated at 1 billion euros each year will provide for a banking aid fund that will be created as a result. Germany hopes to convince other States to find inspiration in this measure.

On 5th August the ECB's Governing Council decided that key interest rates, main refinancing operations as well as those involving the marginal loan facility and the deposit facility would remained unchanged at 1%, 1.75% and 0.25% respectively.

The UK's GDP growth was re-assessed upwards in the second quarter of 2010. It lies at +1.2% instead of +1.1% during a previous assessment. The GDP in this period is 1.7% higher than its level in the second quarter of 2009.

Hungary will be ready to take up discussions with the IMF in the autumn after these were broken off in July said the Economy Ministry on 25th August thereby making a total change in direction after Hungarian leaders had said that the country no longer needed any help.

Cecilia Malmström, European Commissioner for Security expressed her discontent on 6th August after the USA's decision to impose, as from 8th September 2010, a 14 dollar tax on inhabitants travelling to the USA from countries who are exempt of visa obligations. The EU, which in 2008, accepted the creation by the USA of a travel permit (ESTA) as long as this remained free of charge had already issue its reticence about any disguised re-introduction of a visa system. The Commissioner stressed in a press release that she believed the decision to be "incompatible with the commitment made by the USA to facilitate transatlantic mobility."

The reflection group on digitisation set up by the Commission in April 2010 as part of a strategy that aims to help the transition of the cultural sector over to the digital era launched a consultation on 18th August with regard to the means to encourage the on-line presence of our cultural heritage. This consultation, open until 30th September 2010 and in which private parties, companies and any other interested bodies and institutions can take part, will help to draw up recommendations by the end of 2010.

The Council of Europe, by way of its president, recently expressed its concern about the policies that are being undertaken at present in Europe, notably by France against the Roms - the European Commission already published a report on this subject in July 2008. This suggested the promotion of "joint action against the expulsion of Roms" promoting tools for better inegration of the minority that is victim in Europe to "continued discrimination" and "major social exclusion". This report notably recalled that community law banned any type of discrimination based on ethnic criteria. On 7th April last the Commission published a communication advising on the "social integration" of this ethnic minority which is the biggest in the Union.

EU scientists have succeeded as part of the third year of work of the SELFDOTT project, research funded by the European Union, to the tune of 2.98 million euros in obtaining viable mass eggs from Atlantic bluefin tuna in captivity, using natural means and without any hormonal induction. This experiment shows the ease of adaptation on the part of bluefin tuna after three years of domestication. Research, Innovation and Science Commissioner Máire Geoghegan-Quinn said "The SELFDOTT project is yet another example of EU funded research contributing to tackling the most important global challenges facing us today. If the results of this research can ultimately be commercialised, it can improve food supplies and contribute to economic growth and employment while also helping to ensure a sustainable management of bluefin tuna."

On 24th August the Commission issued an opinion on a proposal made on 21st May by seven Member States (Austria, Belgium, Bulgaria, Spain, Estonia, Slovenia and Sweden) with regard to cooperation rules between the European legal authorities in the area of cross-border crime. The request by the States aims to highlight the importance of greater coordination in view of promoting investigations and the quest for evidence. The Commission acknowledged that there was an interest in drawing up "clear, non-bureaucratic rules" to replace the present disparate, fragmented system with a single legal framework whilst maintaining the strict respect of the Charter of Fundamental Rights and guaranteeing the protection of data. The 27 Member States are to negotiate a final proposal that is due to be approved by Parliament.

The 27 European Foreign Ministers decided on 26th July to extend the surveillance mission in Georgia by one year (EUMM) until September 2011. The EUMM comprising 255 civilian observers is responsible for ensuring the application of the cease-fire agreement in the rebel Georgian areas of South Ossetia and Abkhazia. This agreement came after the Russian-Georgian war in the summer of 2008 that was caused by the secession of these two regions whose independence has been acknowledged by Moscow. The Georgian authorities welcomed this decision qualifying the EUMM as a "major factor for stability in the region" whilst hoping that "it might fully accomplish its mandate" in spite of Russian resistance.

The 27 European Foreign Ministers launched the Union's new diplomatic service on 26th July - this should enable the EU to speak with one voice in the international arena. Catherine Ashton the Union's High Representative for Foreign Affairs and the Security Policy will head this service - she presented the staff layout and how the service will be run without however making any appointments. She asked for the financial and staffing regulations together with the 2010 budget to be modified as quickly as possible to allow the EEAS to be operational on 1st December ie one year after the entry into force of the Lisbon Treaty.

The Union's High Representative for Foreign Affairs and the Security Policy, Catherine Ashton declared on 20th August that the Union was encouraging the Israelis and Palestinians to work "fast and hard" to try and finalise peace negotiations within one year. This declaration follows a call by the Quartet for the Near East (USA, Russia, EU and ONU) inviting both parties to take up direct negotiations again as from 2nd September. Calling for a solution that includes two independent, democratic States "that live alongside one another in peace and security with their neighbours" she also paid tribute to the work undertaken by American President Barack Obama and his diplomacy to encourage the peace process.

French General Xavier Bout de Marnhac was appointed on 27th July as head of the Rule of Law mission undertaken by the EU in Kosovo, EULEX KOSOVO. He succeeded Yves de Kermabon and will take office as of 15th October next.

The French Budget Minister, François Baroin travelled to Berlin on 24th August to discuss with German executives in charge of preparing the two countries' budgets in 2011. After a meeting with German Finance Minister Wolfgang Schäuble he indicated that Germany and France "agreed to work towards greater convergence" quoting "company tax, the taxation of high incomes and electronic activity" but also VAT. The Auditors' Court will release a draft report on tax convergence between France and Germany at the end of the September said Mr Baroin on 25th August in an interview with radio station Europe 1.

German Foreign Minister Guido Westerwelle set off on a tour of the Balkans starting with Croatia on 25th August where he met President Ivo Josipović and Prime Minister Jadranka Kosor. Mr Westerwelle maintains that accession negotiations may be finalised rapidly but that there would be no relaxing in membership criteria. On 26th August he travelled to Serbia where he held talks with Serb President Boris Tadic, Prime Minister Mirko Cvetković and Foreign Minister Vuk Jeremić. He said that Germany supported Serbia's membership of the EU but he warned that the country had little chance of joining the EU as long as it did not adopt a cooperative attitude with regard to Kosovo. In addition to this he explained that the EU wanted to foster the launch of direct talks between Serbia and Kosovo to reach a settlement. He then travelled to Bosnia-Herzegovina and Kosovo.

German Defence Minister Karl-Theodor zu Guttenberg declared on 23rd August that he supported a reduction in the staffing of the armed forces and the end of obligatory military service. He presented five possible models to reform the Bundeswehr to experts in defence matters at the parliament stressing that his preferred option planned for a "smaller but more effective army that was capable of undertaking various operations." According to a ministry spokesperson the model recommended by the minister plans for a reduction of around one third of the staff in the Bundeswehr that would decrease from 252,000 to 165,000 soldiers. Obligatory military service would be abolished in effect but the army would however still count on the commitment of some 7,500 young people per year who would undertake voluntary service of between 12 to 23 months according to the ministry.

Whilst Belgium is still trying to form a new government after the general elections on 13th June last and whilst it has been ensuring the rotating presidency of the Council of the European Union since 1st July, Elio di Rupo, who has been asked by the king to find a compromise between the Flemish and the French speakers succeeded in obtaining an extension of his mission saying in a declaration on 18th August that he hoped to achieve results "within a reasonable time span" adding that for the last 40 days he had "tried to reconcile the unreconcilable."

According to the latest figures published on 25th August by the Labour, Solidarity and Civil Service Ministry the number of those looking for work registered in category A declined by 14,400 in July for the second consecutive month. It is the biggest decrease since February 2008. Also the rise in the number of job seekers in the ABC category slowed significantly in July, notably unemployment amongst the young in the "A category" which dropped by 2.8% in July. Long term unemployment continues to rise; +0.8% in July.

French President Nicolas Sarkozy gave a speech on 25th August as part of the 18th Conference of Ambassadors in which he set out the priorities for the months to come since on 12th November next France will take over the presidency of the G20 for one year and that of the G8 as from 1st January 2011. The president told an audience of 180 ambassadors that he wanted the reform of the international monetary system and the creation of a new tool for the international reserve to enhance the stability of the system and to put an end to the supremacy of the dollar. He also suggested the creation of a G20 secretariat and to extend the capabilities of this forum to climate development and funding issues.

On 4th August British Prime Minister David Cameron travelled to Rome where he met the President of the Italian Council Silvio Berlusconi. Their discussions focused on the economy, trade links between the two countries as well as cooperation in Afghanistan and the peace process in the Middle East. In addition to this they spoke of the next steps to be taken for the sustainable recovery of the European economy. Mr Cameron also informed his Italian counterpart of his visit to Turkey and the two leaders agreed to continue to defend Turkey's accession to the EU.

The new centre-right government in Slovakia that resulted after the elections on 12th June 2010 presented its working programme for 2010-2014. This plan addresses economic and financial issues with the aim of reducing the public deficit. It also insists on the need to strengthen democracy and prosperity in Slovakia, the need to create jobs and to enhance social protection, to look more into educational and cultural issues as well as domestic security and the country's foreign policy. On 10th August the government won a vote of confidence with 79 votes out of the 150 members in the Assembly in in Parliament with regard to this four year austerity plan.

Swiss Foreign Minister Micheline Calmy-Rey spoke on 23rd August at the opening of the Conference of Swiss Ambassadors in Interlaken. She said she believed that Switzerland's present relations with the EU were barely "satisfactory" and pondered the issue of the most effective possible defence for Swiss interests. As a non-Member State Switzerland she said was open to a high risk of discrimination and a reduction of its sovereignty which makes its position difficult. Whilst negotiations are on going in view of new bilateral agreements the minister suggested to the Federal Council that it should find a new way that will "enable a better adaptation of its relations with the EU in line with new requirements."

The IMF and the EU accepted on 4th August the paymet to Romania of a further part of the 20 billion dollar aid granted in May 2009. In exchange the Romanian authorities promised to adopt a drastic austerity plan notably including major cuts in salaries for civil servants and a rise in VAT. The austerity policy undertaken by the Romanian government has already brought about positive results and will, according to the IMF and the European Commission, enable it to meet the goals planned in terms of reducing the public deficit. The government is also determined to facilitate the use of these funds to counter corruption and fraud. Analysts are forecasting recovery of growth in 2011.

The annual inflation rate in the euro area rose to 1.7% in July 2010. It increased by 0.3% in comparison with the month of June according to figures published on 16th August by Eurostat. In July 2009 this rate lay at -0.6%. The EU's annual inflation rate lay at 2.1% in July 2010 in comparison with 1.9% in June. A year pior to that it lay at 0.2%. In July 2010 the lowest annual rates were seen in Ireland (-1.2%), Latvia (-0.7%) and in Slovakia (1%) - the highest being in Romania (7.1%), Greece (5.5%) and Hungary (3.6%).

According to initial Eurostat estimates for June 2010 published on 13th August the euro area recorded a external trade surplus of 2.4 billion euros (5.2 billion in June 2009). In June 2010 exports increased by 5.2% and imports by 4.3% in comparison with May 2010. The first estimates with regard to the extra-EU trade balance for June 2010 indicates a deficit of 9.6 billion euros in comparison with -4.1 billion in June 2009. In May 2010 the balance lay at -14.8 billion in comparison with -7 billion in May 2009. In June 2010 in comparison with May 2010, exports rose by 5.8% and imports 5.2%.

A Eurobarometer survey undertaken in May and published on 26th August reveals that most Europeans support greater economic governance across the European Union. 75% of those interviewed believe in the efficacy of greater economic and monetary policy coordination and 72% say they support stricter control of the activities of the major financial groups. An increasing share believes that the Union ahead of the G20 and the USA is best placed to act effectively to counter the crisis.

The Irish Institute of International and European Affairs (IIEA) has published an analysis of the UK's European policy entitled "Coalition in Britain-Coalitions in Europe? An Analysis of the UK's European Policy," by Shane Fitzgerald.

The French Institute for International Relations (IFRI) has published a paper entitled "The EU's Major Electricity and Gas Utilities since Market Liberalization". Author, Christian Schülke analyses the development of the main companies in the energy sector within the EU since the start the liberalization of electricity and gas markets in the 1990's.

Paris Europlace, an organisation created in 1993 which rallies all international players in the financial market in Paris released a report in the summer pleading for the establishment by 2020 of a true European industrial policy in the area of financial markets thereby establishing goals and the means for the building of a competitive financial industry, for better funding of the European economy and to enhance its position in the world. This document was presented as a draft to Michel Barnier, European Commissioner for the Internal Market and Financial Services on 8th July 2010.

The Impressionism Museum in Givery is putting on an exhibition until 31st October entitled "Maximilien Luce, neo-Impressionist, Retrospective." Around 70 paintings and drawings as well as many historical documents trace the life of Maximilien Luce (1858-1941) believed to one of the best representatives of the neo-Impressionist movement.

The Federal Republic of Germany's National Centre for Art and Exhibitions is putting on an exhibition entiled "Afghanistan. Saved Treasure". The 230 objects on show, which bear witness to the wealth of ancient Bactria and which survived destruction, will be in Bonn until 3rd October.

The 12th Architecture Biennale of Venice opened its doors to the public on 29th August proposing up to 21st November a series of national pavilions and exhibitions on the theme of "People meet in Architecture." In all the Biennale will host 48 participants (architects, engineers, artists and studios) and of course around fifty guest countries. For the first time Albania, Bahrein, Malaysia, Morocco and Rwanda will be represented.