Moldova has been deprived of a President of the Republic for the last year. In effect he is elected by a majority of 3/5 of the MPs, ie 61 of 101. The communists lost their majority and the four parties in the government do not have the necessary majority. On 5th September last although 87.8% of Moldovan voters approved the constitutional reform that entailed the modification of article 78 of the Constitution to enable the election of the President of the Republic by direct universal suffrage, the referendum was invalidated due to a low turnout. The failure of the referendum obliged the Moldovan authorities to dissolve Parliament which the interim President of Republic Mihai Ghimpu (Liberal Party, PL), did on 28th September. He announced that a general election would take place on 28th November next.

According to statistics published on 26th October by the National Statistics Office the British economy grew almost twice that forecast in the third quarter driving out perspectives of further monetary flexibility measures by the Bank of England mid-term. The GDP increased by 0.8% over the quarter, notably thanks to the building industry. This rise is less than the one observed in the second quarter (+1.2%). The pound recovered in the face of the dollar and the euro and State borrowing fell. Over one year the GDP grew by 2.8% - the biggest rise in three years after a 1.7% increase in the previous quarter.

The 27 European Heads of State and Government adopted an unprecedented action plan on 28th October to enhance their joint budgetary discipline and believed it necessary to establish a support fund for countries in the euro area. To this end they agreed to look into a limited change to the Lisbon Treaty. The European Heads of State and Government asked the President of the European Council, Herman Van Rompuy to undertake consultations by December in view of this targeted change in the treaty. Finally they exhorted the world's "big" countries "to avoid" a currency war. According to a declaration adopted on 29th October the EU "stresses the need to avoid any form of protectionism and to avoid launching movements in exchange rates that try to gain short term competitive advantages."

On 27th October José Manuel Barroso, President of the European Commission presented the new working programme for 2011 that focuses on five main points: helping the European social market economy to emerge from crisis and to establish itself sustainably; boost employment growth; continue the project for citizens (rights, freedom and justice); ensure that Europe can take on its role in the world to the full; draw the best from the EU policies (proposal relative to the next pluriannual financial framework).

An agreement was finally reached on 26th October on the "hedge funds" directive between the 27 Member States. It should be approved by a vote by MEPs in a plenary session in November. This agreement will introduce for the first time ever a European regulation for the managers of alternative funds. The regulation on speculative funds is part of the commitment made since the crisis by the G20. Due to credibility Europeans want to arrive at the G20 summit in Seoul with final legislation.

On 26th October the 27 Agriculture and Fisheries Ministers came to a political agreement on the regulations establishing fishing quotas in 2011 for EU ships in the Baltic Sea. This legal act includes a decrease in fishing quotas with regard to herring and even salmon. Conversely the quota for cod in the Baltic Sea was raised.

During their meeting on 27th October in Bern, the Swiss Federal Councillor Hans-Rudolf Merz and German Finance Minister Wolfgang Schäuble signed a joint declaration with regard to the opening of negotiations on taxation between Switzerland and Germany. Ministers also signed the revised convention against dual taxation in line with OECD standards. They thereby re-iterated their desire for both States to continue deepening their work together in the fiscal and financial areas and to enhance long term judicial security.

During the Austrian National Day on 26th October Austrian President Heinz Fischer delivered a speech as is the tradition each year. Having started his term in office in July 2010 he promised to stand firm in his role as mediator over the political parties. The President demanded that the Austrian immigration policy together with the asylum policy be made more human since they have been highly criticised in the media over the last few weeks. He addressed the reform of the armed forces and the education system in Austria.

In order to reach agreement on the finance law Johan Vande Lanotte - the mediator appointed by the King of Belgium whose goal it is to come to agreement on the reform of the state - set up a new method, the principle of which was accepted by the seven parties which are at the negotiating tables. On 26th October he asked each of them to deliver their own memorandum on the finance law. These will be studied by the National Bank of Belgium, the Planning Bureau and the Scientific Committee that has been created specially in response to demands made by the N-VA which questioned the independence of the other two public institutions. A first report is expected for 8th November - the final version was delivered four days later.

The Bulgarian government signed an agreement with unions and employers on 1st November focusing on a vast reform of the retirement system that aims to reduce its deficit which is on the increase. The agreement achieved after months of bitter negotiations still has to be approved by Parliament. It plans for a gradual increase as from 2012 for the length of time contributions have to be made in order to be able to retire. Hence the period of contribution will increase by three years to rise to 37 years for women and 40 for men in 2020 said Prime Minister Boiko Borissov. The retirement age - 60 for women and 63 for men - will officially remain unchanged until 2020. However the increase in the contribution period will oblige most workers to take retirement later if they want to receive a pension.

On 27th October the National Asssembly adopted the draft law on the reform of retirement pensions 336 votes in favour, 233 against. The main measure brings the legal age of retirement up from 60 to 62 (65 to 67 for a pension without tax relief).

Lithuania, a NATO member, signed a military cooperation agreement with Belarus on 27th October said the Lithuanian Defence Minister. "We have made an historic step forwards. For the first time Lithuania and Belarus signed a cooperation agreement" in the military area said the Lithuanian Defence Minister Rasa Jukneviciene in a press release. The two neighbours, whose joint border extends over 600km, are to cooperate amongst other matters in the training of executives, the surveillance of air space and military medicine.

Romanian President Traian Basescu received his Polish counterpart, Bronislaw Komorowski in Bucharest on 26th October. The latter also met Romanian Prime Minister Emil Boc who welcomed the signature of the action plan that represents "an extraordinary opportunity for the realisation of the Romanian-Polish Strategic Partnership." The two men expressed their opinions with regard to the measures to reform or boost economic recovery. They pointed to the major role played by the European absorption funds in economic recovery and on the fact that Romania still had a lot to learn form Poland's experience in this area.

In a three monthly information report on the situation of British troops in Afghanistan presented to the House of Commons on 27th October Foreign Minister William Hague spoke of specific progress made by the international troops in Afghanistan, notably in the Helmland province where British troops are stationed. This progress will enable the Afghan government to gain ground. The minister also confirmed that British troops would depart by 2015. This information procedure on the situation in Afghanistan was established in June last by David Cameron's new government to consolidate support on the part of the public opinion with regard to British troops' commitment in this war.

On 26th October Slovakia and Norway signed a cooperation agreement in Bratislava. Slovakia will benefit from a fund of 80.75 million euros made available over a period 2009-2014 by Norway and the other Member States of the European Economic Area - ie Iceland and Switzerland. This fund will target, as a priority, protection against flooding, climate change, violence and the development of civil society. Emphasis will also be placed on improving the situation of Roma in the region.

Once the most firmly closed dictatorship in Europe, Albania has increased its economic peformance which is now acknowledged worldwide and is a surprise to the EU. It has gained 39 places in the Transparency International ranking on corruption lying 87th amongst the 158 countries that were examined. It received the second UN prize for digitising 100% of its calls for tender after Germany. It is recognised by the World Bank for the ease it has experienced in developing its economy and serving as a host for foreign investment - it has been distinguished in the Euromoney 2010 Country Risk Report and by the Wall Street Journal as being one of the vigourous growth economies in Europe. Since 2005 fiscal revenues have doubled, the size of its civil service has been reduced by one third and the cost of this brought down from 3 to 1.8% of the GDP. Albania that does not fear comparison with its neighbours should win its ticket to enter the EU very shortly.

After his meeting in Brussels with Croatian Prime Minister Jadranka Kosor, the President of the European Commission José Manuel Barroso expressed his hopes for Croatia's membership of the European Union as of 2011. Echoing what was said last week by Jean de Ruyt, the EU's Ambassador for Belgium Mr Barroso refers to chapter 23 of Croatia's membership negotiations with regard to the fight against corruption (entitled "Legal and Fundamental Rights) as being a key test for the country's accession. Believing that the membership date will be set once negotiations have been completed, Mr de Ruyt added that Croatia should also convince the Union's countries of its full cooperation with the International Criminal Tribunal for Former Yugoslavia (ICTY).

Russian Prime Minister Vladimir Putin travelled to Ukraine on 27th October. He was received in Kiev by Ukrainian President Viktor Yanukovich. He said he was pleased with the "totally different atmosphere" that now reigned between Russia and Ukraine and that this will lead to "great" cooperation between the two countries, notably on an economic and social level. Mr Yanukovich said he was pleased with the progress achieved towards an agreement on Russian-Ukrainian relations by 2020.

The Council of Europe's Commission for the Efficiency of Justice published its fourth assessment report on 25th October with regard to European judicial systems. The report observes the budgetary pressure that weighs at present on European judicial systems - emerging in the West by a reduction in the number of courts. The reports notes however that the number of judges remains stable and that the number of lawyers increased between 2004 and 2008. This number remains highest in the States in the south which have a more extensive judicial system than the States in the north. Europe is, in addition to this, divided over the use of popular juries - with Western Europe being in favour and the East being more reticent.

NATO Secretary General Anders Fogh Rasmussen announced on 29th October that the total number of men in the Peacekeeping Force in Kosovo (KFOR) would progressively be reduced to 5000 men given the improvement in security conditions in the country. The KFOR mission will remain unchanged.

According to figures published by Eurostat on 28th October in the second quarter of 2010 the investment level of companies adjusted according to seasonal variations as well as their share in benefits in added value have increased in comparison with the previous quarter both in the euro area and the EU. In the euro area stocks remained almost stable after five quarters of destocking. In the euro area the gross non-financial company investment rate increased because the gross creation of fixed capital increased more rapidly (+2.7%) tha the added value (+1.2%). Material stocks, supplies and finished products remained almost stable after five quarters of destocking.

Eurobarometer has published a study on civil justice. The survey results indicate that most Europeans (56%) believe that access to civil justice in another EU Member State is difficult. Three EU citizens in four believe that steps should be taken to improve access. The study shows that citizens' personal experience in terms of civil justice abroad is limited and that lack of knowledge of the laws and legal procedures is believed to be the main impediment to starting proceedings in another Member State. Nearly two thirds of European citizens feel that the EU should launch initiatives with regard to family law in a cross border context.

The Centre for European Policy Studies has just published a policy brief on the changes made to the EU treaties entitled "How to Change the EU Treaties - an Overview of Revision Procedures under the Treaty of Lisbon", written by Peadar ó Broin.

The Grand Palais in Paris is devoting an exhibition to the key period between the Middle Ages and the Renaissance until 20th January 2011 - this period comprised the reigns of Charles VIII (1483-1498) and Louis XII (1498-1515). More than 200 major works - paintings, sculptures, stained glass windows, tapestries, gold work, books, enamels from French State museums and collections as well as from many foreign, prestigious establishments have been brought together in this exhibition entitled "France 1500. Between the Middle Ages and the Renaissance."