On 2nd October next the Latvians are being called to vote to renew the 100 members of the Saiema (Parliament) elected for four years by proportional representation in five electoral districts: Riga, Vidzeme, Latgale, Zemgale and Kurzeme. All political parties have to win at least 5% of the votes cast to be represented in Parliament. Seven parties sit in Parliament at present: the People's Party, the Green and Farmers Union, New Era led by outgoing Prime Minister Valdis Dombrovskis, Harmony Centre, Latvia's First-Latvia's Way, the Pro Patria Union and Freedom, For Human Rights in a United Latvia. On 2nd October five coalitions are competing for the votes: "Unity (New Era, Civic Union, Society for other Politics);"Harmony Centre" (National Harmony Party, New Centre, Social Democratic Party); "For an excellent Latvia" (People's Party, Latvia's First-Latvia's Way, For a Better Latvia), "National Union" (Pro Patria Union and Freedom, All for Latvia);"Union of Greens and Farmers" (Union of Latvian Farmers, Green Party for Latvia and Ventspils).

The referendum organised in Moldova on 5th September was invalidated because of the low turnout. In effect only 29.05% of the electorate turned out to vote ie a rate lower than the minimum required by the electoral law for the popular consultation to be validated. Moldovans were called to answer the following question: "Do you agree for the Constitution to be modified to enable the election of a President of the Republic by direct universal suffrage? The Moldovans are due to be called to vote again soon in early general elections.

The Swiss economy grew by 1% in the first quarter in comparison with the previous one, ie twice that of the first government assessment that was 0.4%. However growth declined by 1.9% last year in comparison with 2008 ie slightly more than the first estimate of -1.5%. The growth of household spending over this period made it possible to limit the impact of the economic crisis.

The nationalised Irish bank Anglo Irish announced on 31st August that it had made a record half-year loss of 8.2 billion euros, a situation which shows a worsening in the financial crisis and the uncertainties surrounding the future of this institution which the State saved in 2009. The main fund provider for construction and real estate companies the Anglo Irish bank is laden with impaired property loans that were granted both to private parties and companies; the political classes are divided with regard to its future. Its deficit is estimated at 35 billion euros.

Unemployment increased in August after decreasing for 4 months indicated the Spanish Labour Minister on 2nd September. The additional number of unemployed totalled 61,083 in comparison with July which equals a rise of 1.5%.

On 1st September the German government adopted an austerity plan to save 80 billion euros by 2014. In 2011 alone the amount of savings will total over 11 billion euros. This austerity plan should lead to a rebalancing in Germany's public finances and ensure that in addition to European budgetary criteria, Berlin also respects a new limit on debt that will be a part of the constitution as from 2016. Amongst other cuts it is planning to reduce social spending and the defence budget. A tax on plane tickets leaving Germany will also be established.

On 2nd September the President of the European Central Bank (ECB), Jean-Claude Trichet announced that the ECB had raised its growth forecast for 2010 and 2011. The new forecast for the development of the GDP in the 16 euro area countries ranges from 1.4 to 1.8% (in comparison with 0.7% and 1.3% previously) for 2010 and between 0.5% and 2.3% for 2011 instead of 0.2% and 2.2% as announced previously. The ECB also reviewed its inflation forecasts upwards: this is due to settle at between 1.5% and 1.7% this year and between 1.2% and 2.2% in 2011. In both cases price rises will stay in line with the ECB's goal of inflation below 2%.

According to statistics published by INSEE on 2nd September the unemployment rate decreased to 9.3% in the second quarter in mainland France after 9.5% in the first quarter and 9.6% in the fourth quarter of 2009. The employment rate amongst 15-64 year olds is stable at 63.8% in the second quarter. This stability does however mask a rise in "specific forms of employment" and a decline in permanent contracts: those working on temporary contracts or as temps in the 15-64 year old category rose from 6.4% in the first quarter to 6.6% in the second whilst those on permanent contracts continued to decline to lie at 49% in the same age group.

The European Union succeeded in reaching an agreement of principle on 2nd September after months of negotiations over a project that aims to enhance financial supervision thereby learning the lessons of the world crisis. Three new supranational authorities responsible for supervising banks, insurance companies and the markets are due to be set up in spite of reticence on the part of the UK that succeeded in limiting the right to intervention of the latter in the event of crisis; it also obtained the power to counter any decision that it might not like. But the final compromise stipulates that it would not be able to "abuse" this safety clause. A future systemic risk committee has been planned for - a kind of European observer of upcoming crises, that would be managed by the European Central Bank for five years.

Bulgaria's Finance Minister Simeon Djankov announced on 1st September that the budgetary deficit consolidated over the first half of 2010 due to the fall of revenues and a rise in social spending. It now lies at 1.5 billion BGN (767 million euros).

On 2nd September the President of the European Parliament Jerzy Buzek announced that the situation of the Roma in Europe would be the focus of debate in Parliament on 7th September in Strasbourg warning against discrimination against this community. The European Commission as well as many representatives of the Civil Liberties Committee declared during a debate on 2nd September that the legality of the measures taken by the French government still had to be established with regard to the legislation governing free movement and residence and also with regard to the Charter of Fundamental Rights.

The European Commission adopted a decision on 1st September which defines the necessary criteria to achieve a good environmental status in European seas. These criteria which focus mainly on biological diversity, fish species, eutrophication, pollutants, waste and noise will help to foster coordination and coherence in the marine strategies of the Member States and facilitate the assessment of the progress made in various regions. This decision is part of the overall strategy defined by the Union which aims to achieve the good environmental status of all seas by 2020 and is "an additional stage in the EU's strategy relative to biodivesity after 2010," declared Janez Potočnik, European Commissioner for the Environment.

Enrolment for the young translators competition "Juvenes Translatores" organised by the EU was launched on 1st September and will last until 20th October. This competition launched in 2007 and in which young Europeans born in 1993 can take part this year aims to "promote the apprenticeship and use of languages in Europe as well as the specific art of translation," explained Ms Androulla Vassiliou, European Commissioner for Education, Culture and Multi-Lingualism and Youth. In all each of the 751 European schools selected will be able to present five pupils and the translation test will take place at the same time for all the candidates. The winners will be invited to Brussels in the spring of 2011.

As part of the FLEX mechanism that is designed to help the most vulnerable countries of Africa, the Caribbean and the Pacific (ACP) overcome the after effects of the world financial crisis and the slowing of economic activity, the European Commission approved the first decisions for funding to a total of 264 million euros in 2010. 19 ACP states will benefit from this sum. The FLEX mechanism relative to vulnerability is a short term instrument that has a total of 500 million euros to allocate over two years (2009-2010).

The head of European diplomacy Catherine Ashton called on 2nd September for "all parties involved" to abstain from any type of "provocation that might damage the success of the direct talks" between Israelis and Palestinians in Washington. She also lauded Israeli Prime Minister Benjamin Netanyahu and Palestinian President Mahmoud Abbas "for their vision and political courage". The Israeli Prime Minister said on 1st September that he "wanted to put an end 'once and for all' to the Israeli-Palestinian conflict in order to reach peace that would last for generations". Both leaders promised on 2nd September to see each other again in two weeks time to achieve an peace agreement. The next meeting is planned in Charm el-Cheikh in Egypt on 14th and 15th September.

On 31st August Germany celebrated the 20th anniversary of the signature of the unification treaty. On 31st August 1990 the representatives of the GDR and the Federal Republic of Germany, (FRG), Günther Krause and Wolfgang Schäuble signed the State Treaty that established the legal terms of the reunification. During a ceremony in the Kronprinzenpalais in Berlin where the text was signed, German Chancellor Angela Merkel said that this treaty "should serve as an example for other treaties that have to be signed in the world." The unification treaty entered into force on 3rd October 1990, the date when Germany will celebrate the 20th anniversary in Bremen in the north of the country.

On 31st August the French, British, German Envrionment and Energy Ministers, Jean-Louis Borloo, Norbert Röttgen and Chris Huhne met in Berlin to discuss the international climate policy over the months to come. They pleaded for a 30% reduction in greenhouse gas emissions and tried to set out the basis for a joint European position before continuing world negotiations on the climate at the Cancun summit in Mexico at the end of November.

On 31st August the French and German Transport Ministers, Dominique Bussereau and Peter Ramsauer confirmed their goal of creating strong Franco-German cooperation in the areas of air and rail transport. They announced the creation of a high-level Franco-German group with regard to railways to coordinate work on the establishment of a harmonised European regulation in this area. The two ministers also pointed to the importance of relations between the SNCF and the Deutsche Bahn (DB). The aim is to "reduce bureaucratic obstacles, accelerate procedures and also reduce costs," they added. With regard to the management of the ash cloud crisis that resulted from the Icelandic vulcano in April the ministers believed that in the future joint action and decisions will be vital for Europe.

German nuclear power stations should witness an average 12 year extension to their life span announced Environment Minister Norbert Röttgen on 6th September. The oldest power stations are to be given an extension of eight years according to the plans revealed by the minister whilst the most recent will remain open for a further 14 years. The agreement also stipulates that energy groups that use these power stations should spend some of their additional profits - which they will gain from this - on the development of renewable energies.

On 2nd September Belgian Prime Minister Yves Leterme together with Deputy Prime Ministers Steven Vanackere, Laurette Onkelinx, Joëlle Milquet and the Secretary of State for European Affairs Olivier Castel took part in a working meeting with President of the European Commission, José Manuel Barroso, as part of the Belgian Presidency of the Council of the EU. This meeting focused on the European agenda of the coming weeks notably the follow-up to the EU2020 socio-economic strategy and the European Council of 16th September that will notably be devoted to the external aspect of the EU. The Belgian Presidency will do everything it can to finalise issues related to the effective establishment of the European External Action Service by 1st January 2011. With regard to economic governance Belgium supports the idea of greater supervision beyond strictly budgetary issues and it will provide impetus to the debate on this subject.

The leader of the Chamber of Deputies, Gianfranco Fini announced on 5th September "the end" of the PDL (People of Freedom), the party he founded with the head of the Italian government Silvio Berlusconi but put forward a "pact" to take the present legislature until the end of its period in office.

On 24th August Luxembourg Prime Minister Jean-Claude Juncker together with his Finance Minister, Luc Frieden travelled to Sotchi in Russia for a working visit. Amongst other matters on the agenda were bilateral relations, economic and financial governance, relations between the EU and Russia as well as issues such as security relative to NATO and the OSCE. The Russian head of state Dimitri Medvedev pointed to the importance of Luxembourg's investments in Russia that totalled 28 billion euros which places Luxembourg in third position in terms of countries with the most investments in Russia.

After his visit to Brussels Polish President Bronislaw Komorowski travelled to Paris on 2nd September. After an interview with his French counterpart Nicolas Sarkozy he said he was pleased with the start of "a true rapprochement" between France and Poland. "We agreed to coordinate some issues with the French presidency of the G8-G20 during the Polish Presidency of the European Union in 2011," declared Mr Komorowski. During his Parisian trip Mr Komorowski also spoke with the leader of the National Assembly, Bernard Accoyer who welcomed the "European dynamism" of the former leader of the Polish Diet. The Polish President completed his official trip with a visit to Berlin on 3rd September.

British Deputy Prime Minister Nick Clegg travelled to Afghanistan to visit British troops on 21st August. He hailed the courage and professionalism of the British forces deployed in Afghanistan. He also promised that there would be no extension of the deadline with regard to the withdrawal of troops. "By 2015 there will be no British troops in Afghanistan" he said. During his visit to Camp Bastion Mr Clegg indicated that "what I have seen is a total transformation in military effort in comparison with what I saw when I first visited two years ago."

According to Eurostat unemployment in the euro area rose to 10% of the working population in July 2010, which was stable in comparison with June but higher than its rate in July 2009 (9.6%). Unemployment is at its highest rate since the creation of the euro area iin 1999. Across the entire EU the rate rose to 9.6% in comparison with 9.1% in July 2009. Amongst the Member States the lowest unemployment rates are in Austria (3.8%) and the Netherlands (4.4% in June 2010) and the highest were in Spain (20.3%), Latvia (20.1% in the first quarter of 2010) and Estonia (18.6% in the second quarter of 2010).

According to the first estimates published by Eurostat on 2nd September the GDP in the euro area and the EU increased by 1% in comparison with the previous quarter. Over the first quarter of 2010 the growth rate lay at +0.3% in both areas. In comparison with the 2nd quarter of 2009 the GDP increased by 1.9% in the euro area and the EU in comparison with +0.8% and +0.7% in the previous quarter.

On 31st August the Bertelsmann Foundation published a study on the European Citizens' Initiative entitled "A Revolution in Disguise: The European Citizens' Initiative". According to its authors, Dominik Hierlemann and Anna Wohlfarth this initiative may change Europe rapdily because it bears the seeds of a European public sphere and European parties.

The German Institute for European Policy (IEP) published a study on 30th August on the influence of the European Neighbourhood Policy on political developments in Ukraine entitled "The EU's 'transformative power' towards the Eastern Neighbourhood: the case of Ukraine."

Marc Pierini has published a book entitled "Diplomatic Telegrammes. Journey to the Heart of Europe's External Policy" in which he presents recent developments in European diplomacy via a study of the diplomatic telegrammes sent by European emissaries and his own diplomatic experience.

A book on the political transition of Albania during the period following the collapse of communism (1991) to the present has just been published by Editions universitaires européennes. Author, Ilir Nezaj illustrates the start of a new political system and the establishment of a multi-party regime after 50 years of totalitarianism. It seems that although Albania started a long period of political transition it still has not come to the end of this journey. The question of the effective extent of change arises in which too many players and political institutions left over from the old system seem to have survived.

The Pablo Picasso graphic museum in Münster, Germany is putting on a special exhibition entitled "Pablo Picasso - in the artist's workshop" until 21st November. It has brought together more than 160 paintings, drawings, sculptures and engravings by Picasso and reviews the theme of the workshop in his work.

The Austria Kunstforum in Vienna is presenting one of the biggest exhibitions ever devoted to Frida Kahlo until 5th December. This exhibition is showing some sixty well known oil paintings, often self-portraits by the Mexican artist; there are also drawings, sketches which are rarer and more personal. Other pictures such as her last self-portrait are on show for the first time.

An exceptional exhibition of a total 74 sculptures in bronze by French Impressionist Edgar Degas who was marked by the movement's ideas was inaugurated in Sofia on 2nd September. It is the only exhibition in the world of the copies of each of the 74 figurines created at first by Degas in wax or plastic and then made in bronze by his family after the artist's death.