The centre-right coalition that is undertaking an austerity policy in Latvia won 63 of the 100 seats in Parliament after general elections on 2nd October. The coalition "Unity" led by Prime Minister Valdis Dombrovskis won 33 seats, the Greens and Farmers' Union 22 and the nationalists "Pro-Patria Union and Freedom", 8. The "Harmony Centre" coalition, on the leftwing and supporter of the Russian speaking minority won 29 seats and the "For a Good Latvia" coalition, 8.

According to incomplete results Bakir Izetbegovic (National Democratic Action Party, SDA) is due to win and become the future Bosniak President of the Collegial Presidency. He is due to win 34% of the vote and is ahead of the outgoing President Haris Silajdzic (Party for Bosnia-Herzegovina, SBiH) who is said to have won 25% of the vote. As for the Croat community outgoing President Zeljko Komsic (Social Democratic Party, SDP) is due to be re-elected to office with 58% of the vote. Within the Serb community outgoing President Nebojsa Radmanovic (Independent Social Democratic Alliance, SNSD) will retain his position with 50% of the vote, running just ahead of Mladen Ivanic (Democratic Progress Party, PDP) who is due to win 47% of the vote).

The Robert Schuman Foundation, the French research centre on Europe, leader in the use of IT's is launching a new tool available in both French and English on iPhone and iPad: EUscope.

The Federal Agency for Employment (BA) announced on 30th September that the gross unemployment rate had declined by 0.4%, now totalling 7.2% and that the number of unemployed had declined by 157,000 in September in comparison with August. Germany has 3,013,000 unemployed at present in gross figures ie 315,000 less than in September 2009. This is the lowest figure for September since 1992.

On 29th September the Commission adopted a series of legislative proposals that are part of the EU's economic governance. This legislative package comprises six distinct texts. The aim is to widen and improve budgetary policy surveillance but also improve that of macro-economic policies and structural reform. New restrictive mechanisms will come into force in the Member States which do not respect these rules.

According to figures published on 30th September by the statistics office, Statistik Austria, the Austrian public deficit rose to 3.5% of the GDP in 2009. "The public deficit of the Republic of Austria increased in 2009 from 8.3 billion euros to 9.6 billion euros. This represents 3.5% of the GDP, also the public deficit is above the 3% of the Maastricht criteria." In 2008, the public deficit lay at 1.3 billion euros, ie 0.5% of the GDP. Revenues decreased by 2% to 133.9 billion euros (48.8% of the GDP) in comparison with the previous year whilst expenditure increased by 3.9% to 143.5 billion euros (52.3% of the GDP). According to Statistik Austria, 194,000 people were looking for work in the third quarter of 2010 in Austria. This figures decreased by 27,700 (-12.5%) in comparison with the third quarter of 2009. The unemployment rate lay at 4.5% in the third quarter of 2010. It lay at 5.1% a year before.

During the meeting of Euro Area Finance Ministers in Brussels on 30th September the Eurogroup Chair Jean-Claude Juncker said he was pleased with the upkeep of Ireland's firm commitment to correct its excessive deficit by 2014. He also said that Ireland may resolve its bank problem "without having to resort to the European Rescue Fund". Jean-Claude Juncker also stressed on 29th September that the Eurogroup "was pleased with the consolidation and additional balancing measures that had been adopted by the Portuguese government." The Eurogroup confirms that these additional measures may enable Portugal to achieve the objectives that it has committed to.

Spanish Economy Minister Elena Salgado presented a draft budget for 2011 on 30th September that is distinctive because of its rigour. It plans for a 16% cut in spending in ministries and a 7.9% reduction in State spending; these are measures that aim to bring the country's deficit down to 6% in 2011. The ministry also said it was pleased with the "limited" reduction of the country's debt rating by Moody's. The indexing agency withdrew its maximum rating of Aaa from Spain on 30th September. The decision follows a worsening in the Spanish government's financial capacity. Madrid therefore drops from Aaa to Aa1. Moody's did however say that the Spanish government's commitment to reducing public deficits had mainly helped in limiting the reduction by one point only.

The French government presented its draft budget 2011 adopted by the Council of Ministers on 29th September. This budget that includes a reduction in spending and an increase in revenues via the reduction of tax and social advantages aims to bring the budgetary deficit down to 6% of the GDP in 2011 and to 3% in 2013. The burden of the public debt is now at the level of the national education budget as the first line in State spending.

The Estonian Central Bank announced on 28th September that it had more than doubled its GDP growth forecast this year to 2.5% in comparison with 2009 and against 1% as previously forecast. "The Estonian economy has overcome the recession and has started to grow especially thanks to exports," declared the bank in a press release. It also raised its 2011 growth perspectives from 4.1% to 4.2% and for 2012 from 3.3% to 3.8%.

The Bulgarian government is planning to bring its public deficit down to 2.5% of the GDP in 2011 and is reckoning on 3.6% growth next year said Finance Minister Simeon Djankov on 29th September. "The public deficit will rise to 1.96 billion levas (1 billion euros) which equals 2.5% of the GDP," declared the Minister after the government's adoption of the draft 2011 budget. In addition to this the statistics institute announced on 30th September that the Bulgarian GDP had increased in the second quarter of 2010 in comparison with the previous one for the first time since the start of the crisis thereby putting an end to the recession. In the second quarter Bulgaria recorded growth of 0.5% in comparison with the first quarter said the institute.

The Greek government presented an initial draft budget on 4th October for 2011 that is based on rigour, planning for a reduction of the public deficit down to 7.6% of the GDP. The initial draft is to take final shape in the next two months before being delivered to Parliament in December; it will be based on a severe austerity plan set down by the EU in May and the IMF in exchange for a 110 billion euro loan over three years to save the country from bankruptcy.

The Hungarian public deficit in 2009 was reviewed upwards rising to 4.4% of the GDP in comparison with 3.9% previously announced in a press release by the Central Statistics Bureau on 1st October .

The Polish government approved the draft finance law on 28th September for 2011 that is to be submitted to Parliament; it is reckoning on growth of 3.5% of the GDP. Revenues are due to rise next year to 273.3 billion zlotys (68.67 billion euros) and spending to 313.5 billion zlotys (78.77 billion euros). Privatisations are due to bring the Treasury 15 billion zlotys (3.77 billion euros). The public finance deficit next year will rise to 5% of the GDP says the government against 7% expected this year.

Portuguese Prime Minister José Socrates announced on 29th September the main outline of his 2011 budget that notably plans for a 5% reduction in the civil service's wage bill as well as a two point rise in the VAT rate which will rise to 23%. "The work we have to do to balance our public accounts is absolutely vital to defend the country's international credibility and to guarantee the funding of our economy," Mr Socrates declared in a solemn address to the nation.

The IMF paid tribute on 27th September to the budgetary austerity policy chosen by the British government led by Conservative David Cameron believing that this was vital and would not kill off economic recovery. In its annual report on the state of the British economy the IMF said that recovery was taking place at a "moderate rate" forecasting growth of 2% in 2011 whilst the government is still reckoning on 2.6%.

The Slovenian government reviewed its budgetary deficit upwards for 2011 on 28th September from 4.1% to 4.5% of the GDP but hopes to bring it down to 3.6% in 2012 announced Prime Minister Borut Pahor defending the government's austerity policy. The Slovenian public deficit will be progressively brought below the 3% of the GDP mark set by European law by 2013 indicated the Slovenian Finance Ministry on 29th September. According to revised figures the public deficit is due to rise to 5.4% of the GDP in 2010 in comparison with 5.5% in 2009. Ljubljana intends to bring this down to 4.7% in 2011 and to 3.8% in 2012 before returning within European bounds in 2013.

On 27th September last the working group on the EU's economic governance -the so-called "task force" met for the fifth time since its launch by the European Council on 26th March 2010. Herman van Rompuy, President of the European Council insisted on three points: granting greater attention to debt, establishing a new system to implement sanctions, and finally to create a new macro-economic surveillance framework.

On 28th September the European Parliament demanded a more severe control of the budget of the European External Action Service (EEAS). MPs of the Budget and the Budgetary Control Committees insisted on several important points: the EEAS budget should improve its accountability and its transparency thanks to documents on all kinds of spending undertaken. It should then provide annual activity reports, allow the European Parliament to intervene in the control of the budget and finally warn of any conflict of interest.

MEPs of the Civil Liberties, Justice and Internal Affairs Committee adopted a report on the exemption of visas for citizens from Bosnia-Herzgovina and Albania on 28th September. According to Tanja Fajon (S&D, SLO) the EU is prepared to lift visa requirements with regard to these two countries because both meet the necessary security criteria such as the reduction of illegal immigration and the improvement of public order. The report is due to be voted on during the next plenary session of Parliament.

On 28th September the European Commission presented the EU's 2009 financial report. Nearly 112 billion euros were spent to stimulate economic growth, employment, research, development and agriculture. The first line of spending is the EU's growth and competitiveness to a total of 44 billion euros and involves aid for technoogical research and development, innovation and competitiveness, the Erasmus progamme and the cohesion policy. The second line concerns agriculture and the development of rural zones to a total of 40 billion euros. External action comes third to a total spending of over 10 billion euros since the EU is one of the biggest development aid donors. Finally administrative spending represents nearly 7.4 billion euros.

On 30th September Cecilia Malmström, European Commissioner for Internal Affairs put forward a new directive and a new regulation to enhance vigilance and effiency in countering cyber-attacks. The directive will make it possible to criminalise the creation and sale of malicious software and the regulation will enhance European police cooperation via the modernisation of the European Agency for Network Security and Information.

On 29th September the European Commission announced its intention to launch an infringement procedure against France by mid-October for its non-respect of European legislation after the recent controversial expulsions of Roma, except if Paris provides firm guarantees by then. This procedure focuses on the fact that "France has not transposed procedural guarantees into French law" as planned for European citizens as part of the 2004 directive on free circulation in the European Union.

The European Commission's annual report on the monitrong of the Application of Community Law (2009) notes that the total numbers of complaints and infringements brought to the Commission's notice declined by 16% between the end of 2008 and the end of 2009. In addition to this the average delay in dealing with infringements declined from 27 to 24 months in the past decade according to the report. The Commission notes however that the delay in the transposal of European directives in the Member Countries is still "a source of major concern."

On 30th September the European Commission presented a proposal in support of continued financial support to the Union's integrated maritime policy for the period 2011-2013. Funding that suggests an investment of 50 million euros aims to continue work as part of this policy set in place in 2007. The funding goals include the creation of synergy establishing links between all policies that affect the sea, such as transport, fishing, customs and the protection of the marine environment.

Following Israel's decision not to extend the moratorium on colonisation Catherine Ashton, the EU's High Representative for Foreign Affairs and Security Policy left the USA for the Middle East on 30th September. In Jerusalem she spoke with the President of the Palestinian Authority, Mahmoud Abbas and Israeli Prime Minister Benjamin Netanyahu. Recalling that the EU is the main donor in the peace process, Ms Ashton stressed the importance the EU gave to the construction of a stable Palestinian State and regretted Israel's decision with regard to colonies since this comprised an impediment to the establishment of sustainable peace. The High Representative also called for the opening of the Gaza Strip to trade and foreign investment believing that economic development is one of the keys to settling the conflict.

The 27 European Economy and Finance Ministers who met on 1st October exchange views and discussed the economic governance of the EU and structural reform, economic forecasts and predictions for the financial markets as well as the regulation of the financial sector.

On 28th September the German President Christian Wulff made an official visit to Estonia where he met Estonian President Toomas Hendrik Ilves, as well as Estonian Prime Minister Andrus Ansip. Mr Wulff said that both countries were working closely together in the EU, notably with regard to financial issues. He pointed to the success of Estonia's financial policy - illustrated by the introduction of the euro on 1st January 2011. The Estonian President said that his country wanted to help towards enhancing the euro area. In addition to this he said he supported the strengthening of the Union's budgetary policies and of a joint energy policy.

On 28th September the German government approved its new energy strategy in Berlin that aims to bring Germany into the "renewable era" by 2050. Renewable energies are then due to cover 80% of electricity consumption. To achieve this the government has decided, amongst other things to extend the lifespan of nuclear power stations, accelerate the development of offshore windfarms and to develop the electricity network. The energy sector will be used to raise taxes on fossile fuels and a funds for energy and the climate will be created.

On 3rd October Germany celebrated the 20th anniversary of its reunification. During the festivities German President Christian Wulff presented the integration of immigrants as one of Germany's main challenges as he delivered a speech in Bremen. In addition to this he invited Germans to be more respectful and show greater solidarity to foreigners. Former Chancellor Helmut Kohl "father" of the German Reunification took part in a ceremony in Berlin outside the Reichstag. On 2nd October German Chancellor Angela Merkel recalled the exciting period between the peaceful revolution of 1989 and the reunification on 3rd October 1990. She paid tribute to the East Germans for their courage and the fight they had made for their freedom. She also insisted on the fact that thanks to their joint effort the Germans had rapidly established the new Länder.

Hungarian President Pal Schmitt travelled to Zagreb on 1st October where he visited his Croatian counterpart Ivo Josipovic. During the visit the Hungarian president declared that Croatia's accession to the EU comprised an example for the region's countries and would give hope to all of its neighbours. Mr Josipovic confirmed that Croatia hopes to join the EU in 2012. The conditions for the country's membershiup remain legal reform, the fight against corruption and structural reform to the economy. Croatia has just opened the last three chapters of 35 in membership negotiations to the EU.

Following the resignation of Alessandro Profumo as head of Unicredit, Italy's biggest bank, Frederico Ghizzoni was appointed Director General on 30th Septemer. Dieter Rampl, the group's chair declared that Mr Ghizzoni who has been the Deputy Director General of the bank until now will have to strengthen Unicredit's position as a leading bank in Europe as he continues the work of his predecessor.

Silvio Berlusconi, President of the Italian Council won a vote of confidence on 29th September at the Chamber of Deputies which saves his government and avoids early elections. Dissidents on the right close to Gianfranco Fini, leader of the Chamber of Deputies, finally supported him. The Cavaliere's discourse was approved by a majority of 342 votes in favour, 275 against and three abstentions. This vote of confidence comes during a government crisis, mid-way through Silvio Berlusconi's term in office.

According to an estimate published on 30th September by Eurostat, the annual inflation rate in the euro area lay at 1.8% in September 2010. In August the rate lay at 1.6%.

During the 8th ASEM Summit (Asia-Europe) on 4th and 5th October Eurostat will be publishing data relative to the trade of goods between the EU and the 19 countries that are part of the ASEM. After an approximate 20% decline in goods trade in 2009 Eurostat observed growth in this area in the first half of 2010 between the EU and the ASEM partner countries. According to Eurostat these trade partners represented 29% of all EU goods exports and 45% of imports in the first half of 2010; the EU's trade deficit with the ASEM countries has therefore grown in comparison with 2009.

The unemployment rate in the euro area remained unchanged in August at 10.1% of the working population according to data published by Eurostat on 1st October. For six consecutive months unemployment rose above the 10% mark, its highest level ever since the creation of the euro area in 1999. In all 15,869 million people were unemployed in August in the euro area. Amongst the EU States the highest unemployment rate was recorded in Spain (20.5% in comparison with 20.3% in July). The lowest is in Austria (4.3%). Germany, the euro area's leading economy records a rate of 6.8% (in comparison with 6.9% in July) and France 10.1% (in comparison with 10% in July).

In August 2010 in comparison with July 2010 the industrial producer price index increased by 0.1% in the euro area and remained stable in the EU. In July 2010 prices rose by 0.2% in both areas. In August 2010 compared with August 2009 industrial producer prices rose by 3.6% in the euro area and by 3.9% in the EU.

The Stockholm International Peace Research Institute (SIPRI) has just published a study on the limitation of the EU's reports on arms exports and looks at the case of Central Asia. This study was written by Paul Holtorn and Mark Bromley.

The Centre for European Policy Studies (CEPS) has published a paper by Paul de Grauwe entitled: "What kind of governance for the eurozone?".

The 21st edition of the British Film Festival in Dinard (Brittany) is presenting twenty-one films including six in the official competition 2010 from 6th to 10th October.

At the same time as the retrospective devoted to Claude Monet at the Grand Palais, the Marmottan Monet Museum is presenting a unique exhibition on the artist from 7th October to 20th February 2011 entitled "Claude Monet, his museum." For the first time ever it presents its entire Monet collection. The exhibition pays tribute to the 136 works by the French impressionist as well to some paintings by his contemporaries.

The Modern Art Museum of Lille has just re-opened after being closed for four years for extension work. In all the museum that is established in Villeneuve d'Ascq now has 4000 m2 of exhibition area for the 4500 works it owns.

The Reiss Engelhorn Museum in Mannheim (Germany) is devoting a major exhibition to the dynasty of the most important European sovereigns of the 12th and 13th centuries, the Hohenstaufen. Until 20th February 2011 the exhibition "The Staufer and Italy. Three innovative regions in medieval Europe", is offering the public original documents and precious objects sometimes presented for the first time in Germany which bring the story, arts and culture of the period of the Hohenstaufen alive.

Until 6th February 2011 the "Rodin and Vienna" exhibition is presenting the Viennese influence over the artist notably that of art nouveau and the Secession Movement at the start of the 20th century at the Belvedere Museum in Vienna. The exhibition brings together 92 objects and links the French sculptor's works with others which inspired him: "The Burghers of Calais" and "Saint John the Baptist" by Rodin for example include aspects of work by Italian painter Giovanni Segantini or German Max Klinger.

81 young pianists from 23 countries qualified for this test that will be taking place from 3rd to 20th October before a jury commprising some major names in piano. The winner of this piano marathon which demands perfection of the victor in the execution of all kinds of music written by Frederic Chopin will win a gold medal together with a cheque of 30,000 euros. He/She will have the honour of playing in concerts performed by the New York Philharmonic and the NHK Symphony Orchestra.