10 candidates have been retained to run in the election on 19th December but the matter is almost settled! Indeed Aleksander Lukashenko is standing for the fourth time running and given the nature of the regime he leads all observers believe that the other 9 candidates have little chance of asserting themselves.

The permanent Secretary of the Moral and Political Science Academy, Michel Albert also a member of the board of the Robert Schuman Foundation gave a speech on "the Frenco-German couple as seen from the Coupole" on the occasion of the academy's annual public session.

On 8th December Prime Minister Brian Cowen gave a speech to the chamber of deputies (Dail) on the 2011 budget. On the previous day the Dail approved the technical measures which opened the way to the budget's adoption. In his speech the Prime Minister recalled the need to adopt this budget that aims to attenuate the deficit (from 11.6% of the GDP to 9.4%) whilst attempting to be fair to the Irish population. The adoption of the Irish budget should still take a few weeks. The examination of the most sizeable piece of legislation - the finance law - is only due to start mid-January and the process is not due to be finalised until then or the following month.

The 27 European Economy and Finance Ministers confirmed on 7th December that there would be financial aid to a total of 85 billion euros for Ireland. This aid includes a restructuring of the Irish banking system and Ireland's commitment to correct its budgetary deficit by 2015. Ministers came to an agreement to enable fiscal adminstrations to exchange data to reduce the risk of tax fraud in a context of increasing European mobility. They also adopted a directive maintaining the minimal VAT rate at 15% until 2015. Ministers took no decision over the management and prevention of crises contrary to market and IMF expectations.

The Central Bank of Denmark reviewed its growth forecasts upwards for 2010 and 2011 to 2% and 1.9% of the GDP respectively in comparison with 1.6% and 1.7% in a previous estimation according to a provisional report by the bank published on 9th December. This report also indicates that in 2012 the bank is planning for 1.9% growth in Denmark. According to figures published on 9th December by Statistics Denmark, the trade surplus in Denmark dropped by 10.9% in October in comparison with the previous month down to 5.7 billion crowns (765 million €). These figures have been adjusted according to seasonal variations and exclude ships and airplanes.

According to figures published on 9th December by the national statistics institute, Statistics Finland, the Finnish GDP increased by 3.7% in the third quarter in comparison with the same period one year ago. On a quarterly basis the GDP growth was 0.5% between July and September. Exports remained the same in the third quarter in comparison with the previous quarter but they have risen by 9.4% in one year.

As part of its work in creating a more transparent and stable financial system, the European Commission launched a consultation on 8th December on the review of the Markets in Financial Instruments Directive (MiFID) which provides a comprehensive framework for investment firms offering services in relation to financial instruments, as well as rules to protect investors. To achieve this it intends to enhance transparency in the shares market and the supervision of raw materials derivated markets. The range of measures planned to counter this type of "scandalous hyperspeculation" means that traders will have to publish the investments they make, limit the highest investment positions on markets and regulators will be able to bring speculators to heel if they make food and energy prices rise too much. The Commission also adopted a communication on 8th December on the means to enhance sanctions regimes in the EU's financial services sector. At present the rules applied in the Member States vary greatly and do not provide the means for effective dissuasion to counter financial infringements.

Europe's economic situation is still "of great concern" because the consequences of the crisis are "far from over" warned the head of the IMF in Geneva on 8th December, Dominique Strauss-Kahn. "The IMF's director made an appeal "to rebuild" everything as quickly as possible.

The Finance Ministers of the 16 Euro area members listened to a report by the Director General of the IMF, Dominique Strauss-Kahn on 6th December with regard to the euro area's economic, financial and monetary situation. The Eurogroup and the IMF observed major convergence in points of view with regard to growth prospects in the euro area. Ministers spoke at length on Ireland's financial and budgetary situation, together with that of Spain and Portugal. With regard to Greece the decision to extend the length of repayment time of the loans granted to Greece was postponed until 2011. In preparation for the European Council on 16th and 17th December Eurogroup looked into the issue of enhancing economic governance generally and in the euro area in particular.

On 6th December the German Finance Minister indicated in a press release that the country's public deficit in 2010 was due to be lower than forecast lying at 3.7% of the GDP. Next year the minister is reckoning on a deficit reduction of 92 billion euros ie around 17 billion less in comparison with the July forecast. The minister is planning that the country's public deficit will be brought down to 3% in 2011. Moreover and according to data published on 8th December by the German statistics office, Destatis, Germany exported goods to a total of around 86.8 billion euros and imported goods to a total of around 72.6 billion euros in October. According to non-adjusted, year on year data exports in October were up by 19.8%. The trade surplus lay at 14.3 billion euros in data adjusted to seasonal variations. According to a Destatis press release on 9th December consumer prices rose in Germany by 1.5% in November 2010 in comparison with November 2009.

On 10th December the Greek government launched two unpopular reforms that have been requested by the EU and the IMF - the liberalisation of the labour market and the reduction of salaries in state companies. The adoption of these reforms after a first set of austerity measures that aim to reduce the deficit, was set as a condition by the EU and the IMF for the payment - to be decided on in February - of the fourth 15 billion euro payment of a total 110 billion euros granted to the country over three years in May to save the country from bankruptcy.

The Hungarian Parliament adopted the key figures of the 2010 budget on 7th December 249 votes in favour, 83 against and no abstentions. The finance law was adopted thanks to the two-thirds majority which Prime Viktor Orban's party enjoys in parliament. According to final figures adopted on 7th December the Hungarian state can count on 13.151 billion forints (47 billion euros) in revenues and is planning expenditure of 13.839 billion euros (49.4 billion euros). Budgetary deficit is therefore 687 billion forints (2.4 billion euros). In addition to this the Hungarian central statistics bureau announced on 9th December that the Hungarian GDP increased by 0.8% in the third quarter in comparison with the previous quarter. The figures published confirm the country's growth, which came out of recession in the first quarter of 2010. The bureau also said that in the second quarter, the economy grew by 0.4%.

A relapse in the euro area crisis and delays in the adoption of the European currency by Latvia could threaten the recovery of the Latvian economy - victim of one of the deepest recessions in the world said the IMF on 9th December. "The present dangers are much more serious than last year, but mid-term challenges are still valid for the adoption of the euro" said an IMF report with regard to this Baltic State of 2.2 million inhabitants. This referred to Latvia's capability to reduce unemployment to two figures, to maintain the pace of reform and to continue reducing expenditure.

The Portuguese national statistics institute announced on 9th December that the country's economy had grown by 0.3% in the third quarter and by 1.4% over one year. These figures were welcomed with surprise by analysts who were expecting stagnation in the economy due to the effect of the austerity measures which entered into force this summer.

In his speech delivered on 10th December to the Italian Parliament the European Commissioner for Economic Affairs Olli Rehn said that Italy had to reduce its public debt, improve employment and enhance growth via structural reform. He insisted on the need to eliminate bureaucracy and to promote the liberalisation of the labour market - vital measures to guarantee the country's economic growth. In addition to this growth of the Italian economy was reviewed upwards to 0.3% in the third quarter in comparison with the previous one instead of a first estimate of 0.2% said the statistics institute Istat in a press release on 10th December.

The Cypriot economy that has been badly affected by the international crisis seems to be recovering quicker than forecast said the Central Bank of Cyprus on 6th December - which is now expecting growth of 0.7% for 2010 and 1.8% in 2011. "Growth forecasts in Cyprus's GDP were reviewed upwards to 0.7% in 2010 with an even better result in 2011 and 2012, when growth is due to reach 1.8% and 2.4% respectively, declared the governor of the Central Bank, Athanasios Orphanides.

On 8th December the Icelandic Central Bank reduced its main rate for the eighth time this year from 5.5% to 4.5% . In addition to this the Icelandic economy came out of recession in the third quarter for the first time since the collapse of its financial system in October 2008 according to official statistics published on 7th December. After having declined for seven successive quarters - from the fourth quarter of 2008 to the second quarter 2010 the Icelandic GDP rose between July and October by 1.2% in comparison with the previous quarter said the National Statistics Office in a press release.

The Lithuanian Parliament adopted an austerity budget for 2011 on 9th December 73 votes in favour, 56 against and 7 abstentions - which plans for a reduction in the public deficit down to 5.8% of the GDP just as the economy of this Baltic country is starting to recover.

On 9th December the Commission presented the European strategy for the Danube region that will benefit some 115 million inhabitants who are already amongst the 14 States committed to the cooperation process (Germany, Austria, Hungary, Czech Republic, Slovakia, Slovenia, Bulgaria, Romania, Croatia, Serbia, Bosnia-Herzegovina, Montenegro, Moldova, Ukraine). This strategy encourages the development of the economic use of this river whilst protecting ecological balance and its cultural heritage. This strategy should play a vital role in enhancing sustainable transport, energy systems, and also in protecting the environment and water resources. Focusing on sustainable growth it will also represent a major contribution in the achievement of the Europe 2020 goals.

On 9th December the European Commission submitted a draft regulation to clarify contractual relations in the milk and dairy products sector. The texts suggests the enhancement of the dairy product manufacturer's position within the supply chain to help stabilise the milk market and revenues. It gives greater negotiating power to producers, plans for specific rules applicable to inter-professional organisations and measures to enhance market transparency in this sector. The Commission also adopted a report on the same day on the dairy product market as part of the gradual abolition of the milk quota system.

Mobile phone tarifs that are invoiced to the user during travel abroad are not always competitive and the European Commission is thinking about how these can be reduced further. On 8th December it launched a survey to see what consumers, companies and telecommunications operators thought about this. The aim is to achieve a single market by 2015 in the telepone industry with an almost near to zero difference in domestic mobile communication prices and roaming abroad.

On 9th December the 27 European Defence Ministers agreed on stepping up cooperation in the area of defence. They welcomed the text that Germany and Sweden addressed them in November "with satisfaction" for its contribution to thought on "the European imperative" that is "increasing military cooperation in Europe". They invited the European Defence Agency (EDA), to do more work to help pinpoint areas that may give rise to a pooling and sharing of resources." The training of a "group of experts" under the EDA's guidance has been suggested by the Ministers. High Representative Catherine Ashton is due to deliver a report on the progress made by mid-2011. Catherine Ashton did not succeed in reaching a unanimous decision on the part of Ministers for the appointment of the EDA director. Frenchwoman Claude-France Arnould's candidature was rejected by the Italian delegation who also has a candidate, Carlo Magrassi.

During the EU/Russia Summit on 7th December Russian and European leaders signed a protocol agreement which heralded the completion of bilateral negotiations over Moscow's membership of the World Trade Organisation. The agreement settles the main bilateral trade disputes which still existed and prevented, from Europe's point of view, Russia's entry into the WTO. It notably plans for a reduction in customs duties regimes in the trade of wood and the use of the railways. After 17 years of negotiations Russia's entry into the WTO may take place in the first half of 2011. The summit was however less productive in another area believed to be priority by Moscow. Indeed the President of the European Commission intimated that the abolition of visas for Russians was not on the immediate agenda since Europeans believed that Russia is still not up to speed with regard to border control or secure passports.

Progress was made during the 11th EU-India summit on 10th December. This should lead to the signature of a free-trade agreement in 2011 which will have impact on 1.5 billion individuals. Progress was also made with regard to energy and cultural issues. The EU and India agreed to step up cooperation in the fight against terrorism and to refuse giving asylum to extremists, whilst New Delhi regularly accuses Pakistan of serving as a refuge for radical groups.

The Council finally approved the new draft 2011 budget presented on 26th November by the Commission. This decision opens the way for the budget's final adoption by the end of the year. The issue is now in the hands of the MEPs who will vote on 15th December during a plenary session in Strasbourg. This agreement will avoid the implementation of the provisional 12th's system which would have a notable effect on major policies and programmes.

On 10th December the 27 European Ministers responsible for competitiveness discussed the strengthening of European consumer rights. They hope to develop an innovative, integrated industrial policy. They adopted 50 proposals for the Single Act for the recovery of the European domestic market. They aim to improve work, companies and trade. Finally European leaders addressed the legal context of games and gambling in the EU enabling national authorities to check on the integrity of practices in sporting wagers generally, to analyse the impact on society and the effects on health and consumer behaviour.

During the 13th Franco-German Council of Ministers on 10th December in Freiburg-im-Breisgau the governments of both countries discussed the strengthening of bilateral cooperation as well as the preparation for the European Council in Brussels on 16th and 17th December. Angela Merkel and Nicolas Sarkozy said they agreed with regard to the euro and the on-going reforms; they again said they were against the idea of European borrowing. The Chancellor said "Sharing interest rates and risks will not help us structurally," setting as a prior conditon "more political" integration and "coherence" with regard to economic policies. Nicolas Sarkozy added,"States must be made to feel responsible, and not the contrary" and he said it was necessary to have "more political integration".

During the fifth summit on TICs on 7th December nearly 700 political leaders, company heads and scientists met in Dresden together with German Chancellor Angela Merkel and the Vice-President of the European Commission, Neelie Kroes. Thought and debate focused on the implementation of the new German strategy in support of the digital economy (Deutschland Digital 2015).

During a meeting on 11th December in Berlin Indian Prime Minister Manmohan Singh and German Chancellor Angela Merkel announced that Germany and India wanted to increase the volume of external trade to 20 billion euros by 2012. The two leaders also said they were going to work closely together as non-permanent members of the UN Security Council in 2011 and 2012, to improve the effectiveness of the Security Council and to promote an extension of permanenet members of the Council.

German President Christian Wulff travelled to Warsaw on 7th December. He reminded his Polish counterpart, Bronislaw Komorowski of the importance of the historic gesture made by Chancellor Willy Brandt as he kneeled before the Memorial of the Jewish Ghetto of Warsaw in December 1970. He also discussed the importance of the Warsaw Treaty for German-Polish reconciliation. They discussed the meaning of history in the construction of the future between Poland and Germany to an audience of 60 German and Polish pupils.

The Spanish government announced a plan on 10th December to make industry "a driver of growth and a creator of jobs" with an investment of 83 billion euros over the period 2011-2015 - which is spending that is compatible with the goal to reduce the deficit." The strategic plan which extends to 2020 "includes 24 initiatives on the part of ten ministries in 26 areas associated with industry, with a direct budgetary impact estimated at nearly 83 billion euros over the period 2011-2015," a figure which correpsonds with the "financial effort to be made by the State administration" said the Industry Ministry in a press release.

On 8th and 9th December French Prime Minister François Fillon undertook an official visit to Moscow to take part in the 15th meeting of the Russo-French Committee for Bilateral Cooperation and to review the Cultural Year France-Russia with his Russian counterpart Vladimir Putin. Economic exchange increased by nearly 38% over the first ten months of 2010 between the two countries. France went from being the ninth to the fifth foreign investor in Russia. Several Russo-French agreements and cooperation memoranda were signed notably in the area of aeronautics (Sagem Défense Sécurité) and energy (Alsthom) including the creation of a Russo-French Centre for Energy Efficiency.

Polish President Bronisław Komorowski was guest to his American counterpart on 8th December, Barack Obama at the Whitehouse. The two heads of State stressed the importance of the partnership between the USA and Poland, notably within NATO. Mr Obama thanked Mr Komorowski for Poland's commitment in NATO's military operation in Afghanistan. The two Presidents also said they were pleased with the new strategic idea for the Atlantic Alliance that was drawn up at the Lisbon Summit.

British Prime Minister David Cameron travelled to Afghanistan on 6th December. He acknowledged the progress achieved in 2010 and spoke of withdrawing troops. Some 10,000 British soldiers are fighting in Afghanistan. He believed that troops would start withdrawal in 2011 and promised that all troops would be withdrawn by 2015.

The Presidents of Russia, Belarus and Kazakhstan signed a declaration on 9th December in Moscow on the creation of a Common Economic Area. Other documents also adopted plan for the harmonisation of macroeconomic and monetary policies in these States. Russia, Belarus, Kazakhstan created a Customs Union just one year ago aiming to do away with tarif barriers between the three countries.

According to figures published by Eurostat on 7th December over the last decade the rate of unemployment of women aged 15-64 in the EU has decreased regularly dropping from 39.9% in 2000 to 35.7% in 2009 which means that five million women entered the labour market. Amongst the Member States the rate of unemployment for women aged 25 to 54 is lowest in Slovenia (12.1%), Sweden (12.9%) and Denmark (13%) and the highest in Malta (51.1%), Italy (35.5%), Romania (29.4%) and Greece (29%).

According to figures published by Eurostat on 9th December in 2009 12% of EU companies faced IT security issues because of problems in computing equipment or software. Incidents which led to the destruction or alteration of data in the wake of virus infection by malicious software or unauthorised access were reported by 5% of companies. In January 2010 half of EU companies used a strong password and token hardware for user authentification and identification.

The Austria Institut für Europa-und Sicherheitspolitik (AIES) has just published a paper on NATO and its new strategic concept in which author, Arnold Kammel describes the content of this concept and analyses what this means for the Euro-Atlantic security community.

The ageing of populations in the new EU Member States and Croatia is growing more acute according to a study published on 9th December by the World Bank which calls on these countries to take emergency steps to safeguard their health and social security systems. This document on Bulgaria, Croatia, Latvia and Poland presented in Sofia predicts a constant increase in the number of inhabitants aged 65 and over in the next few decades. In 2025 more than 20% of Bulgarians will be over 65 in comparison with 13% in 1990 whilst the average age in Slovenia will be around 47. Simultaneously the working population will decrease sharply. In Bulgaria in 2010 there are four workers per pensioner - in 2050 the ratio will be less than two to one.

The Center for European Policy Studies (CEPS) has published a study entitled "The EU Budget: Responsibility without accountability?". Author, Gabriele Cipriani, director for structural policy, energy and transport at the European Auditors' Court looks into the issue of the "responsibility deficit" in the European budget and explores the factors that are at the root of this such as expenditure opaqueness and the irresponsibility of the bodies which manage the budget on a European level.

For the 12th year running the Short Film Festival (KuFiFe) in Stuttgart is being organised by the High School for Media (HDM) with films by young producers on show. On 17th December the public will choose - after having watched a selection of films selected by the festival's organising committee - three of the best short films this year.

The Tiroler Landesmuseum Ferdinandeum in Innsbruck is exhibiting around 80 pieces of work by Johann Evangelist Holzer (1709-1740) - these include portraits, oil paintings, drawings and retables - one of the greatest masters of the 18th century. The "Johann Evangelist Holzer, painter of light" exhibition will be open until 13th March 2011.

The "From Canova to Modigliani, the face of the 19th Century" exhibition is being held at the Zabarella de Padua Palace until 27th February 2011. It reviews the development and history of the portrait in art in the 19th century via the work achieved by Canova, Modigliani, Ingres, Tito, Appiani and Thorvaldsen in particular.

The European Book Prize 2010 was awarded on 8th December to Roberto Saviano in the essay category and to Sofi Oksanen in the novel category. The Italian writer was lauded for his essay "Beauty and Hell" whilst the Finnish writer who has already won the Femina foreign prize and the Fnac novel prize was rewarded for her novel "Purge". The jury was chaired this year by German film maker and writer Volker Schlondörff.

As part of the Franco-German Council on 10th December German and French Culture Ministers Bernd Neumann and Frédéric Mitterand awarded the first France-German Franz Hessel literary prize to Kathrin Röggla, who received the award for her work entitled "Die Alarmbereiten" and Maylis de Kerangal for her novel "Naissance d'un Pont". The prize totalling 10,000 euros and given by the Genshagen Foundation and the Villa Gillet aims to "enhance literary dialogue between Germany and France and encourage modern authors" explained the German Minister in a press release.