Five million Swiss are being called to renew the 200 members of the National Council and the 46 members of the Council of States, the two Chambers of Parliament, on 23rd October next. The latest poll by gfs.berne for the Swiss radio and TV company (SSRT) puts the Swiss People's Party (UDC/SVP) ahead with 29.3% of the vote, the Socialist Party 19.9%, the Free Democratic Party (15.2%), the Christian Democratic Party (14.2%) and the Ecologist-Greens Party (9.3%).

On 10th October the Maltese Parliament approved the reinforcement of the European Financial Stability Fund. MPs voted unanimously in favour of the project. Maltese participation therefore increases from 398 to 704 million euros.

According to figures published on 12th October by the Office for National Statistics, the number of British unemployed reached an unprecedented level in 17 years, with 2.57 million people registered at the end of August.

On 13th October the Slovakian parliament was the last of the 17 euro area Member States to approve the enhancement of the European Financial Stability Fund (EFSF). The first vote on 11th October was transformed into a confidence vote for the Slovakian Prime Minister Iveta Radicova. However part of the coalition in power abstained. Hence the EFSF was rejected, likewise the Prime Minister. On 12th October the main opposition party, SMER-SD, under the leadership of Robert Fico, accepted to vote in support of the EFSF in a second round of voting on condition that early elections would take place. On 13th October the enhancement of the EFSF was approved by 114 MPs against 30 and 3 abstentions. The European Support Fund thereby entered into force with a guarantee of over 779 billion euros.

The eight economic institutes in Germany have reduced their growth forecasts to 0.8% in 2012 well below the 2% forecast in April 2011. "The debt crisis in Europe is threatening to become a banking crisis that will weigh increasingly on the German economy," explain the institutes in their bi-annual report. The institutes raised their growth prospects for 2011 up slightly to 2.9% against 2.8% previously. They forecast inflation at 1.8% in 2012 against 2.3% this year. Advanced indicators are hardly more optimistic and notably business moral, measured by the IFO index, that fell in September to its lowest level since mid-2010. In spite of the worsening economic situation these institutes forecast a reduction in unemployment to 6.7% in 2012 against 7% in 2011. The German government is due to publish its economic forecasts on 20th October, which will be used as a base for its budgetary planning in November.

On 13th October the Portuguese government presented the 2012 budget. Prime Minister Pedro Passos Coelho announced measures that his government aimed to take in order to reduce the public deficit. The government plans, amongst other things, to reduce salaries in the civil service, to reduce the number of days of holiday and to increase working hours in the private sector. Portugal is the third country after Greece and Ireland, that is taking advantage of an aid plan to a total of 78 billion euros, to be funded by the EU and the IMF until 2014.

The American agency Standard & Poor's downgraded the Spanish sovereign debt rating a notch from AA to AA- on 13th October. The main reasons for this were a downturn in the country's growth prospects and the weakness of the banking system. The ratings agency declared that the factors explaining the downgrading were of an economic nature. The agency admits that work to reform by the government has been achieved. However Standard & Poor's fears that the government will not achieve its budgetary goals because the debt of local communities may effect the State's budget negatively.

The Finance Ministers and the Governors of the Central Banks of the G20 met in Paris on 14th and 15th October in order to bring decisive answers to restore confidence, financial stability and growth. The main progress achieved during this meeting was the definition of an action plan in support of coordinated policies and the commitment to do everything necessary to maintain the stability of the banking systems and financial markets; moreover real measures have notably been taken to enhance the stability and resistance of the IMF. However Finance Ministers said they rejected the idea of a tax on international financial transactions, a so-called Tobin tax.

On 12th October the European Commission published a draft reform for the Common Agricultural Policy (CAP) post 2013. The project aims to enhance competitiveness, sustainability, and the establishment of agriculture across all territories to guarantee European citizens with healthy, good quality food, to protect the environment and to develop rural areas. The Commission suggests for a new partnership to be established between Europe and farmers.

On 12th October the European Commission presented its enlargement strategy 2011-2012, which includes an interim report on several candidate countries. It recommends the opening of negotiations with Montenegro and granting the status of candidate country to Serbia, however although cooperation with the ICTY has improved Serbia still has to work on its relations with Kosovo,, if it hopes one day to enter the EU. Since December 2010 a visa-less entry into the Schengen area entered into force for Albania and Bosnia-Herzegovina. However the latter has still not formed a government after the general elections in 2010, which is impeding further reform. Macedonia is still in stalemate because there is no agreement over its name with Greece. Turkey is notably criticised for its lack of respect of commitments taken with regard to Cyprus. Hence negotiations are not moving forwards. Although Iceland meets most of the membership criteria there are still some major challenges to rise to, such as fishing, and notably whaling; the Icesave issue regarding the reimbursement of Dutch and British savings by the Icelandic bank has still not been settled.

On 11th October the Commission published a draft regulation in view of a facultative harmonisation of the EU's sales laws. In effect in spite of the establishment of the single market many impediments remain in place and limit intra-European trade. Differences in contract law are one of the main reasons for this and every year it impedes 26 billion euros in intra-community trade. The European contract suggests simplifying administrative measures for those selling and to guarantee better protection and more information for those purchasing. The Council and the Parliament will now have to look into the text over the next few months.

On 13th October the European Commissioner for Development Aid, Andris Piebalgs presented "The Agenda for Change" that redefines the aid granted by the EU according to several criteria to countries that need it most. Geographically aid will now mainly be given to the poorest countries, rather than to the emerging countries. In each country resources will be re-distributed according to three themes, in order to avoid an excessive dispersion of funds. Good governance, social protection, healthcare, education, sustainable agriculture and clean energies will be the main focus of this new policy, to guarantee sustainable growth and benefits for all. Finally the Commission intends to use new, more innovative, effective financial instruments. Reforms will be undertaken country by country and spread across the Multi-Annual Financial Framework (2014-2020). The Commissioner hopes that "each euro will go to those who need it most."

In a document published on 14th October the European Commission assesses the state of competitiveness in the EU country by country. It is notably based on three criteria: the productivity rate per worker in industry, the share of innovative companies out of the total number of companies and the degree of simplicity of national business law. Luxembourg is systematically one of the countries with the best scores, and Hungary one of those with the worst results. The Commission draws up an overview of the issues and opportunities for each country.

The President of the European Commission, José Manuel Barroso called on 12th October for Europe to recapitalise its banks "urgently" in order to put a halt to the spread of the debt crisis, which has now reached "systemic" levels and is threatening to destabilise the world's economy. Banks have to be recapitalised urgently he declared to the European Parliament in Brussels, without giving a figure to support his claims. To recapitalise, explained Mr Barroso, banks will have to call on private capital, with the national authorities providing support if necessary. In the event of this is not being possible the recapitalisation would have to be funded by a loan from the European Financial Support Fund.

On 12th and 13th October MEPs gave wide support to the candidacy of German Jörg Asmussen to the Council of the European Central Bank in replacement of Jurgen Stark, who has resigned. They also called on European leaders to continue their reforms and to harmonise their policies, in order to bring the present economic and financial crisis to an end. As part of the reform of the European VAT system MEPs suggested that the fight to counter fraud should be stepped up, contributions by SME's and NGO's should be limited, and the rates raised on organic products reduced; the Commission should also push for greater harmonisation of national tax policies. Finally they regretted that Romania and Bulgaria had not succeeded in integrating the Schengen area and asked national leaders not to give in to populist discourse.

On 10th October the 27 Environment Ministers addressed the EU's position in the various international negotiations relative to the protection of the environment. They notably defined the European position for the UN Conference on Sustainable Development for the 10th Conference in Basel and for the 17th UN Conference on Climate Change. They called for an extension of the Kyoto Protocol and for the greater use of legal tools to protect the environment. Ministers also looked into the results of the EU's sixth environmental programme and asked the European Commission to prepare a new one, that will be effective as of 2012.

On 11th October the 27 European Affairs Ministers notably decided to extend the duration of the loans to Portugal and Ireland as part of the European Financial Stabilisation Mechanism. They also decided on the agenda of the European Council on 23rd October which will mainly focus on the economic and financial crisis, climate change and the November G20 summit in Cannes. Ministers also spoke of the possibility of making changes to the European treaties in order to include the two protocols requested by Ireland and the Czech Republic.

On 20th October the first European navigation satellites Galileo will be launched into orbit. The launch will take place from French Guiana, and will form the core of the Galileo fleet; this "open", civil navigation system, a product of European innovation, was 100% funded by the European Commission and its launch is being ensured by ESA (the European Space Agency). It will also be the first launch of Soyouz rockets from the Guianese Space Centre.

British Defence Minister Liam Fox resigned on 14th October after having been accused of a conflict of interests. He will be replaced by Philip Hammond, who was Transport Minister until now - himself replaced by Justine Greening who was Economic Secretary to the Treasury. Chloe Smith, deputy at the House of Commons, has taken over her post and is replaced by Greg Hands.

On 12th October Eurostat published figures on industrial production for August 2011. There has been a recovery in activity with a rise of 1.2% in the euro area and 0.9% in the EU as a whole. In comparison with August 2010 this represents a respective rise of 5.3% and 4.3%. Portugal, Ireland and Italy, who are still experiencing major economic problems, had the best recovery rates.

According to figures published on 14th October by Eurostat the annual inflation rate in the euro area lay at 3% in September 2011, against 2.5% in August. One year previously it lay at 1.9%. The monthly inflation rate lay at 0.8% in September 2011. The EU's annual inflation rate lay at 3.3% in September 2011, against 2.9% in August. One year ago it lay at 2.3%. The monthly inflation rate lay at 0.6% in September 2011.

In a document published on 14th October Eurostat revealed that the EU's trade balance was in deficit in August. The EU was in deficit to a total of 17.8 billion euros in August and the euro area to a total of 3.4 billion. These deficits are less than in July but more than in August last year. The energy bill has notably weighed heavily on European accounts which however have benefited from a clear rise in the export of manufactured goods. Germany and the Netherlands have better external trade results, whilst France and the UK notably have the greatest deficits, ahead of Spain, Italy, Portugal and Greece.

Eurofound, the European Foundation for the improvement of living and working conditions has published its first report entitled "European Jobs Monitor". The study notes that five million jobs were destroyed between 2008 and 2010. The number of jobs in the tertiary sector increased. However the number of jobs in the secondary sector decreased significantly. Men were more affected by the crisis than women. Finally the study reveals that the employment rate of senior citizens increased whilst that of young people declined.

Desclée de Brouwer publishing has released a book by Nicolas Quillet entitled "Une Europe de la sécurité?" The author who worked for the European Affairs Ministry for nearly four years covers the work of eight presidencies and reveals the strengths and weaknesses of an historically unique organisation.

The Ny Carlsberg Glyptothek in Copenhagen (Denmark) is showing 50 pictures by Paul Gauguin (of Tahiti) with primitive art work (statues, arms, jewellery ...) from Polynesia, which was the source of inspiration to the French painter. The exhibition is open until 31st December 2011.

The Pompidou Centre in Paris and the Kunsthalle in Bremen are both devoting exhibitions to the Norwegian painter, Edvard Munch (1863-1944). The German exhibition is entitled " Mysteries behind the canvas". At the Pompidou Centre the exhibition is called "The Modern Eye". It shows that Munch held a constant dialogue with the most modern forms of representation: photography, cinema and the theatre of his time.

The Louvre Museum is hosting an exhibition entitled "In the Kingdom of Alexander the Great: Ancient Macedonia" until 16th January 2012. 500 works cover the history of ancient Macedonia from the 15th century BC until the imperial Roman times. The exhibition notably focuses on the progressive ascension of the kingdom of Macedonia with regard to Greece, thanks to the political sense of its kings, the most famous of whom is still Alexander the Great.

From 20th to 23rd October the 38th International Contemporary Art Fair is showing at the Grand Palais in Paris. During this international meeting 168 exhibitors, representing 21 countries will be present in the hall of the Grand Palais and also in the Jardin des Plantes where the 2011 FIAC will be inaugurating a outdoor exhibition.