On 20th February last the Icelandic President Olafur Ragnar Grimsson announced the organisation of a referendum on the new Icesave agreement law adopted by the Althing, the only chamber of Parliament, four days previously, 44 votes in favour out of 63. This referendum is the second organised on this issue. On 6th March 2010 an overwhelming majority of Icelanders (93%) rejected the first law on the Icesave agreement approved at the end of December 2009. Polls forecast the victory for the "yes" vote in the referendum on the Icesave agreement law which will take place on 9th April. A poll undertaken at the end of February for the daily Frettabladid and the TV channel No2 revealed that 61.3% of Icelanders were about to vote in favour of adopting the new law on the Icesave agreement. Roughly one third (38.7%) say they will reject the text. Three people interviewed out of ten (29.6%) were still undecided.

Iceland's GDP contracted by 1.5% in the fourth quarter of 2010 in comparison with the previous quarter when the Icelandic economy had recovered growth for the first time since the crisis according to official statistics published on 8th March. In 2010 the Icelandic GDP contracted by 3.5% after a decline of 6.9% in 2009.

According to data published on 9th March by the Belgian National Bank in terms of volume adjusted to seasonal variations the GDP increased by +0.5% in the fourth quarter in comparison with the previous quarter. Over the entire year 2010 economic activity developed by +2.1% compared to a contraction of -2.7% in 2009. This recovery was generated by external demand and resulted in the creation of jobs for some 28,000 people, ie an increase of +0.6%.

According to final figures published by Wifo on 10th March Austria's GDP rose by 0.8% in the fourth quarter of 2010 against the previous quarter and by 2.7% in comparison with the same period in 2009. In the fourth quarter of 2010 Austria benefited from a dynamic export market again (+1.2%) and "investments started their recovery", up by 2.8% said the institute in a press release. The national statistics institute, Statistik Austria indicated on 11th March that the total imports by Austria in 2010 rose to 113.45 billion euros against 109.19 billion for exports. Imports and exports increased by over 16%.

In 2010 Estonia's GDP rose by 3.1% in comparison with 2009 according to provisional data from the statistics bureau published on 11th March. With regard to the fourth quarter of 2010 the Estonian GDP rose by 6.7%.

The Bundesbank is forecasting economic growth in Germany to a total of 2.5% in 2011 against 2% previously, said its Chair Axel Weber on 8th March during the conference on the annual results of the German Central Bank. The Bundesbank is therefore more optimistic than the government which is forecasting growth of 2.3% in 2011. In January Germany exported to a total of 78.5 billion euros, ie a rise of 24.2% in comparison with January 2010 according to provisional figures published on 10th March by the federal statistics office, Destatis. Imports totalled 68.4 billion euros over the same period thereby rising by 24.1% over one year. The trade surplus lay at 10.1 billion euros. According to figures published on 8th March by Destatis, France was still Germany's main trading partner in 2010 with trade to a total of 152.4 billion euros against 134.6 in 2009.

Portuguese Finance Minister Fernando Teixeira dos Santos announced on 11th March that there would be more measures to consolidate the budget to guarantee a reduction in the public deficit down to 4.6% of the GDP in 2011. These measures that will notably affect the healthcare sector, public companies and social allowances are "precautionary measures" that will lead to an "additional adjustment of around 0.8% of the GDP," he said. The Minister also re-iterated his government's commitment to reducing public deficit down to 3% of the GDP in 2012 and to 2% in 2013.

On 11th March the 17 Heads of State and government of the euro area agreed to increase the effective lending capability of their financial aid fund from 250 billion euro to 440 billion euros. The permanent crisis mechanism will succeed this as of mid-2013 and will be provided with 500 billion euros. They also accepted the reduction of the interest rates on European loans granted to Greece as part of the international rescue plan and to extend the deadlines within which the country has to reimburse the loan. However they refused to do the same for Ireland because the latter refuses to raise its business tax rate. The euro area welcomed the additional budgetary austerity measures announced on the same day by Portugal. An agreement was found to enhance the defence of the euro area. This pact plans for the 17 countries to enhance their competitiveness by reforming their economies, by promising to limit their deficits and debt and by promoting wage moderation in the public sector.

The Spanish bank needs 15.152 billion euros to recover a healthy situation said the Bank of Spain on 10th March. According to the Central Bank twelve financial entities need additional capital to rise to new government requirements in terms of solvency set by the decision of 18th February and which enters into force on 10th March. Moreover the indexing agency Moody's took the country's sovereign rating down a notch.

Unemployment in Greece rose again in December over one year to 14.8% against 10.2% a year previously; this is the highest level in at least five years. It is particularly affecting the 15-24 year olds 40% of whom are without work said the Greek statistics authority, ESA, on 9th March. In November unemployment totalled 13.9% of the country's working population.

Italian growth slowed to 0.1% in the fourth quarter and rose to 1.2% over 2010 as a whole as planned by the government according to a final estimate published on 11th March by the national statistics institute Istat.

On 10th March the European Commission put forward the modification of the "Schengen Borders" code 2006 in order to facilitate the circulation of people crossing the internal and external borders of the EU. The proposal is mainly focused on improving cooperation between the EU and third countries, the acceleration of border control and the reduction of superfluous formalities.

On 10th March the European Commission adopted its first report on obstacles to trade and investment. It reveals the major impediments to market access of the six strategic economic partners of the EU: China, India, Russia, Japan, the MERCOSUR countries (notably Brazil and Argentina) and the USA. Moreover the report puts forward real measures such as the launch of an initiative for the opening of public procurement and a better use of high level forums such as the Transatlantic Economic Council and trade dialogue tools with China. This report will be presented to the European Council on 24th and 25th March.

On 11th March the European Commission published the consumer markets' scoreboard. It provides real information about the functioning of the internal market for European consumers. This edition reveals that the consumer situation has recovered in nearly all Member States after its sharp decline in 2009. It also confirms that national e-trade is continuing to grow (36% of consumers against 34% in 2009) whilst transnational e-trade has barely taken off (9% of consumers against 8% in 2009), mainly due to the inertia of supply in this domain.

On 8th March the European Parliament adopted 529 votes in favour, 127 against and 19 abstentions an initiative report on the world-scale innovative funding of a tax on financial transactions. The most controversial point was an amendment calling on the EU to promote a similar tax worldwide and failing that across Europe to fund European projects. At the same time the Economic and Monetary Affairs Committee approved a report on 7th March promoting stricter regulations on "Short Selling and certain aspects of Credit Default Swaps". These financial tools were questioned during the sovereign debt crisis.

On 10th March following a debate with the High Representative Catherine Ashton, MEPs adopted a resolution by a wide majority (584 votes in favour, 18 against and 18 abstentions) on Libya asking Member States to prepare themselves for a Council decision by the UN Security Council with regard to additional measures including the possibility of establishing an exclusion zone. Moreover the European Parliament called on the High Representative to establish relations with the National Interim Council to start an official acknowledgement process.

On 9th March MEPs adopted an initiative report supporting the European Commission's initiative with regard to sustainable industrial policy. The Commission launched this initiative in November 2010. The European Parliament pointed to the structural and economic problems experienced by European industry and put forward 140 recommendations- 15 of which were said to be key by the rapporteur Bernd Lange (S&D, DE). In particular MEPs suggest using European bonds (Eurobonds) to fund investments in industrial structures and innovation, to review the definition of "small and medium sized enterprises" and to create a European patent fund. MEPs also asked for a guarantee of reciprocity in external public procurement access.

The 10 to 12 million Roma living in the EU should benefit from European measures in order to promote their social, cultural and economic integration said MEPs on 9th March. The European Parliament's resolution adopted by 576 votes in favour, 32 against and 60 abstentions, is trying to influence the Commission's future strategy for Roma integration; it is also calling for greater protection of fundamental rights and better use of EU funds.

On 8th March during the plenary session the European Parliament adopted a resolution written by Mariya Nedelcheva (EPP, BG) on male/female equality. The resolution insists on the following points: the need to reduce the difference in remuneration between men and women, to increase female representation in decision making posts, to improve female employment. The importance of improving childcare structures and parental leave was also highlighted. Finally if employment rates, part time work and female productivity were similar to that of men the GDP would increase by 30% stresses the resolution.

In a resolution adopted on 10th March MEPs invited the EU's competent institutions and partner countries to look into extending the scope of the restrictive measures so that these include prosecutors, judges and KGB agents involved in Human Rights infringements in Belarus if repression does not stopped immediately. The resolution refers to the cases of Ales Mikhalevich, former presidential candidate imprisoned after the post-electoral demonstrations and who was only released when he promised in writing to work with the KGB, and Natalia Radina, the creator of an opposition internet site who was arrested for having organised and taken part in massive demonstrations after the elections who was also freed but forced to stay in her town of residence until the inquiry involving her was finalised.

On 10th March the Council of the European Union authorised the start of enhanced cooperation between the Member States in view of the creation of unitary protection via the patent. All Member States except for Spain and Italy supported the use of this procedure for the creation of the single patent which will be valid in all participating States. The main obstacle to a unanimous agreement came from a controversy over the linguistic regime applicable to the future patent system. It will be based on that in application at the European Patents office where the official languages are English, French and German. On 8th March the European Union's Court of Justice delivered a negative opinion to this agreement.

On the occasion of an extraordinary meeting on 10th March the 27 EU Foreign Ministers debated events in Libya and the strategy drawn up by the European Commission and the External Action Service to support countries in the region. At the same time the High Representative Catherine Ashton announced that she had met representatives of the National Transition Council of Libya in Strasbourg. Ministers also unanimously decided to extend restrictive measures to five Libyan financial entities that are central to the State. Mustafa Zarti was also added to the list of 26 people believed to be responsible for the violent repression inflicted on the civilian population since 15th February, and whose assets have been frozen. Defence Ministers who met on 10th March agreed to step up NATO's maritime presence in the Mediterranean.

In the wake of the earth quake and the tsunami that struck Japan on 11th March the various EU institutions expressed their support to the Japanese government and people. In a joint message of solidarity the President of the Commission Mr Barroso and President of the Council Mr Van Rompuy expressed "solidarity and condolence on behalf of the EU to the people, families and government of Japan." They also said that they were "ready to help in any way that was possible." The heads of State and government expressed their support and asked the Commission and the High Representative to mobilise all appropriate surplus aid that may remain. Finally the Commission launched, on Japan's request, the community civil protection mechanism in order to provide aid notably with search and rescue teams for ongoing operations.

On 8th March Austrian Chancellor Werner Faymann hosted Bulgarian President Gueorgui Parvanov in Vienna. They notably discussed economic issues such as tax on financial transactions, the Nabucco gas pipeline project, as well as Europe's competitiveness. Mr Parvanov thanked Mr Faymann for Austrian support towards Bulgaria's European integration.

On 10th March French President Nicolas Sarkozy hosted Greek Prime Minister George Papandreou. They discussed the decisions to take as part of the extraordinary European Council on the situation in Libya and with regard to the Mediterranean; they also discussed the euro area summit. After their meeting Mr Papandreou said that Europe had to support the rebuilding of economies and help with the democratic transition in North Africa and in the Arab world.

Lithuanian Economy Minister Dainius Kreivys resigned on 8th March after being accused of confusing public and private interests while participating in making decisions related to companies whose main shareholder is his own mother.

On 11th March the Slovenian Constitutional Court validated the principle of a referendum on the controversial reform of retirement pensions, rejecting a request by the government against this popular consultation. According to the dailies Delo and Dnevnik the Court is due to announce its decision officially next week.

Serb Prime Minister Mirko Cvetkovic revealed his reshuffled government on 8th march which will have a reduced number of ministers. The government which comprises 17 ministries and 21 members has to be approved by Parliament. The previous government had 21 ministries and 27 members. Apart from the function of Prime Minister Mr Cvetkovic is also going to take charge of the Finance Ministry.

The OECD announced on 8th March that inflation remained stable in 2010 within the OECD area at a rate of 2.1% - the same as in 2009. Although inflation has gathered pace in the UK (4% in comparison with 3.7% in December) and in Germany (2% compared with 1.7%), it remained stable elsewhere with annual rates of 2.3% in Canada, 2.1% in Italy, 1.8% in France, 1.6% in the USA and 0% in Japan.

According to data published by Eurostat on 14th March industrial production adjusted to seasonal variations increased by 0.3% in the euro area and by 0.6% in the EU in January 2011 in comparison with December 2010. In December 2010 production increased respectively by 0.3% and 0.2%. In January 2011 in comparison with January 2010 industrial production progressed by 6.6% in the euro area and by 6.8% in the EU.

The French Institute for International Relations (IFRI) has published another edition in its series "Visions franco-allemandes" entitled "Un leadership par la crédibilité - Prospectives franco-allemandes sur l'avenir de l'UE", written by Andreas Marchetti and Louis-Marie Clouet in which four future scenarii for the EU's future on the horizon of 2010 are put forward.

The Centre for European Policy Studies has published a paper on the European financial stabilisation mechanism entitled "On the Tasks of the European Stability Mechanism" and written by Stefano Micossi, Jacopo Carmassi and Fabrizia Peirce. This paper clarifies the role financial assistance role of the EU to the Member States that faced debt crises and lays out the tasks that the new European mechanism would have to be able to implement to establish an effective crisis management system for the euro area and the EU.

The Institute for Security Studies in the EU has published a report on "The wave of Arab democracy: how can the EU take up this opportunity?" The authors aim to pinpoint the impact of these democratic revolutions on the various countries in the region, the main challenges to a successful democratic transition and which priorities the Union should adopt.

The Centre for European Policy (CEP) has published a paper by Claire Dhéret on the EU's cohesion policy. The author criticises the present approach that is focused on the GDP level as an indicator for the allocation of cohesion funds and advises on "the development of a more holistic approach placing the well-being of citizens (measured by various indicators) at the heart of the cohesion policy.

The Federal Trust for Education and Research published a paper entitled "The European Union Bill. A Federal Trust Briefing" in which author Andrew Blick describes and analyses the draft law on the EU in the UK.

The Swedish Institute for European Studies has just published a study by Nicolas Jabko on economic governance in the EU, entitled "Which Economic Governance for the European Union?" in which the author looks into shared sovereignty issues.

The Economic Analysis Council has published a report by Jean-Paul Betbèze (member of the Foundation's scientific committee), Christian Bordes, Jézabel Couppey-Soubeyran and Dominique Plihon on central banking after the crisis. This report addresses the necessary development in the vocation of central banks in response to the financial crisis.

Euroeditions have published a book on the Lisbon Treaty and the charter of fundmental rights with an introduction by Enrique Baron Crespo and a preface by Herman Van Rompuy.

From 17th to 20th March the Leipzig Book Fair will take place with an expected 2,071 exhibitors from 39 countries.

The Grenoble Museum is presenting an exhibition until 13th June "Chagall et l'avant-garde russe," in which 150 works from collections of the National Modern Art Museum enables vistors to review a particularly fruitful period in the history of 20th century art - the Russian avant-garde. The leitmotif is the fascinating world of Marc Chagall (1887-1985).

Until 11th May the "Catharijneconvent" Museum in Utrecht is dedicating an exhibition of the artistic treasures of Macedonia entitled "Unimagined Beauty Icons From Macedonia". It includes more than 50 icons made as of 11th century, a golden mask of the 500BC as well as a unique collection of Christian reliefs in terracotta. The exhibition reviews the rich culture of Macedonia of 4000BC until the 19th century.

On 18th March the Paris Book Fair will open its doors for the 31st year running. This year it pays tribute to Scandinavian writers with around forty guest authors; the detective novel is also at the centre of the fair likewise the town of Buenos Aires, the World Book Capital 2011. The fair will end on 21st March.

From 16th-19th March "Les Fallas " the art and culture festival of Valencia will bring the streets are alive with fireworks displays, music bands, artistic lighting, street performances, parades... Every part of the town orders work from artists. The main work of art "falla" is surrounded by "ninots" which shape the festival's message which is always satirical.