The Chairman of the Robert Schuman Foundation, Jean-Dominique Giuliani has published an editorial on his site in which he explains why the crisis is still raging in Europe.

On 1st October 2012, 3.6 million Georgians will be appointing the 150 members of their Parliament (73 elected by a majority vote in constituencies and 77 appointed by proportional voting within one national constituency). Two electoral coalitions and 21 political parties are running in the election. Head of State, Mikhail Saakachvili will be facing businessman Bidzina Ivanichvili, the founder of the Georgian Dream-Democratic Georgia movement. One month before the election the United National Movement led by Mikhail Saakachvili is due to win 46% of the vote, the coalition, Georgian Dream-Democratic Georgia, 24%, the Christian Democratic Party (KDM) led by Giorgi Targamadze, 5% and New Rights led by Davit Gamkrelidze, 3%.

According to a press release by the Spanish National Statistics Office (INE) published on 28th August 2012 the recession worsened in the second quarter of 2012 and the GDP contracted by 0.4%. This downturn is due to a "decrease in demand on the domestic market", notably in terms of household consumption and public spending, says the release. On September 1st 2012 a further increase in VAT came into force, the main rate of which has risen from 18 to 21%, as part of an unprecedented austerity policy designed to reduce the public deficit to 6.3% of the GDP this year.

On 28th August 2012 the President of the European Council, Herman Van Rompuy, and the President of the Spanish government, Mariano Rajoy met to discuss the economic crisis in Europe and more particularly Spain's predicament. Herman Van Rompuy lauded the number of reforms undertaken by the Spanish government and the solidarity illustrated by other Member States, insisting on the need to reform in depth the Spanish financial system. He also stressed the urgent need for unified banking supervision Europe wide.

On 30th August 2012 the President of the European Commission, José Manuel Barroso presented his point of view on the crisis during a speech delivered at the Economic Symposium of Alpbach. He recalled the three main causes of the crisis: excessive debt in some Member States; a failing financial system, and a lack of competitiveness. The answers given to date will suffice short term but the long term greater political, economic and budgetary integration has to be taken on board. He announced the Commission's proposal on 12th September to form a base to establish banking union. It is also necessary to improve the internal market and to provide the EU with the budget it needs if Member States really want it to fulfil all of its obligations.

In an interview granted to the German newspaper "Die Zeit" on 29th August the President of the European Central Bank, Mario Draghi, repeated his arguments in favour of exceptional measures taken by the ECB. Indeed he anticipates the possibility of the ECB to reviving its public bond purchase programme. He did say however that he ECB would only intervene within the terms of its mandate and that it would adhere to its main objective which is to counter inflation.

German Chancellor Angela Merkel was guest in Beijing on 29th August 2012 to Chinese Prime Minister Wen Jiabao. This is Angela Merkel's second visit to China this year. The German Chancellor notably visited the Airbus assembly factory in Tianjin. On 30th August, the Chinese State Bank ordered 50 A320 Airbuses for a total of 3.5 billion euros.

On 30th August 2012, Mariano Rajoy was host to French President François Hollande. Both spoke in support of the euro, since both believe in that "it is impossible to go back on the single currency". Mariano Rajoy recalled that he wants the European Union to move forwards working actively in favour of banking and budgetary union Europe wide. For his part the French president welcomed the amount of work achieved in terms of austerity and reform undertaken by Spain. In regard to the decision to activate the European Financial Stability Facility, the French President believes that it is up to Spain to decide. Both leaders also spoke of international issues, notably the situation in Syria; in their opinion the departure of Bachar El-Assad will help to settle the Syrian crisis. Finally they announced that there would be a Franco-Spanish summit on 10th October in Paris.

On 30th August 2012 the members of the Estonian parliament ratified the European Stability Mechanism. 59 MPs voted in favour, 34 against. The entry into force of the ESM planned for July has been delayed because the German constitutional court wants to look into the complaints lodged by various opponents who believe that the ESM might deprive the German Parliament of some of its budgetary sovereignty.

The French Finance Minister Pierre Moscovici and his German counterpart, Wolfgang Schäuble, announced on 27th August in Berlin that they were creating a joint work group on the euro zone crisis. This work group will be looking into the "implementation of the decisions taken on Greece and Spain." There are also more "structural" questions, ie everything which involves banking supervision, banking Union, and European integration" said Mr Moscovici. According to several articles published in the press on 30th August 2012, a Franco-German initiative to revive economic and industrial cooperation will soon be established. It will be chaired by Jean-Louis Beffa, the former CEO of Saint-Gobain and Gerhard Cromme, Chair of the Supervisory Boards of ThyssenKrupp and Siemens.

On 29th August 2012 German Chancellor Angela Merkel and the President of the Italian Council, Mario Monti met in Berlin to discuss the euro zone crisis. Both expressed their satisfaction at the progress made both by the euro zone and Italy in overcoming the difficulties set by the sovereign debt crisis. They did however express their difference in opinion over the European Stability Mechanism, since Angela Merkel believes that granting a banking licence would be contrary to the treaty, whilst Mario Monti believes it would strengthen it.

On 29th August 2012 the Ukrainian Court of Cassation announced that it had rejected the appeal made by former Prime Minister Yulia Tymoshenko thereby confirming its seven year sentence for abuse of power. High Representative Catherine Ashton and European Commissioner for the Neighbourhood Policy, Stefan Füle spoke of their disappointment and called on the Ukrainian authorities to implement the necessary judicial reforms so that the system might become impartial and transparent. The President of the Parliamentary Assembly of the Council of Europe (PACE) Jean-Claude Mignon and the co-rapporteurs on Ukraine, Mailis Reps (Estonia)and Marietta de Pourbaix-Lundin (Sweden), also expressed their dismay. On the invitation of President Yanukovich the co-rapporteurs intend to travel to Ukraine before the Assembly's next session in order to look into the political paths available to settle this issue according to the norms set by the Council of Europe.

According to an estimate published by Eurostat on 31st August 2012 inflation in the euro zone lay at 2.6% in August in comparison with 2.4% in July.

The Foundation for International Relations and External Dialogue (FRIDE) has published a collective paper entitled "Europe in the reshaped Middle East". 18 months after the start of the Arab revolutions the authors present the new challenges that face the region and future prospects as well as the role that European countries could play in this transition phase.

The Beethoven Festival in Bonn is taking place between 7th September and 7th October this year. This festival devoted to Ludwig van Beethoven born in Bonn in 1770 will be hosting some 2000 international artists over the next month. Amongst them are conductors Andris Nelson, Michael Tilson Thomas and Kent Nagano, the quatuor Artemis, violonists Gilles App and Isabelle Faust, and pianists Andras Schiff and Pierre-Laurent Aimard.