After a four month period of either stagnation or decline the Economic Sentiment Indicator (ESI) improved in the euro zone (by 0.8 points to 100.7) and in the EU (by 0.5 points to 104.0). The euro zone indicator is just above its long term average of 100 again. Amongst the major euro zone economies the ESI only declined in Spain (0.7 points), whilst it increased in Germany (+0.6 points), France (+1.1), Italy (+0.5 points) and in the Netherlands (+2.1 points). These estimations published on 30th October are based on regular, harmonised surveys of the EU's economic sectors undertaken by the DG Economic and Finance Affairs at the European Commission.

On 31st October the Supreme Court of Cyprus took decisions regarding four laws on unconstitutional real estate seizure. These texts were adopted by the Cypriot Parliament with the aim of limiting the impact of a law demanded by the EU, the European Central Bank and the IMF as part of the 10 million euro rescue plan granted in 2013 to Cyprus. Considering that these laws did not respect the conditions agreed during the establishment of the rescue plan the European Finance Ministers had suspended the payment of the next aid tranche of 436 million € planned for September 2014. The constitutional censorship of these laws should therefore now allow Cyprus to receive financing from the EU.

The Spanish GDP rose by 0.5% in the third quarter after 0.6% in the second quarter, according to temporary figures published by the national statistics institute, INE, on 30th October. These figures confirm Spain's recovery since it is the country's fifth consecutive quarter of growth states INE.

The European Commission has until 30th November to provide a final opinion on the budget of each of the 18 euro zone members. However in the event of "particularly serious non-respect of the obligations of the budgetary policy in the stability and growth pact" it will give an opinion within the two weeks following the presentation of the budgetary drafts by the governments in question. The Vice-President of the Commission Jyrki Katainen announced on 28th October that the Commission would not give a negative opinion at this stage since it was unable to identify "serious cases of non-conformity." France and Italy - whose changes to their budgets were deemed "useful and constructive" by the Commission - likewise Austria, Malta and Slovenia - which the Commission had asked to provide explanations on 22nd October, will not receive a negative opinion immediately. However Jyrki Katainen recalled on 29th October that this decision did not "affect the final result" and that only the final decision given by the Commission at the end of November would reveal whether "additional measures or replacements would be necessary to ensure total conformity" with the Stabilty Pact.

On 30th October the European Commission published a document that explains the different options that can be introduced in the EU for a simpler, more effective VAT system. The aim of the future VAT regime is to respond to business needs on the single market and to be less exposed to fraud than the present system. The document highlights five options deemed possible by the Commission which should lead to a new VAT system to adapt to the modern economy and to foster trade within the Union.

On 30th October the European Commission adopted a report that provides an overall assessment of the economic consequences of the publication of country-per-country information set on banks and businesses by the directive on reporting obligations adopted in June 2013. The aim of the report is to define whether the public of country-per-country information leads to negative effects on the economies of the EU. According to the report's conclusions the publication of this information affects transparency and accountability positively, including the strengthening of citizen confidence in the European financial sector.

On 31st October the European Commission announced that 21Schengen Area Member States and its associate countries had answered the call to participate in "Operation Triton" which started on November 1st 2014. Triton aims to support Italy to overcome the ongoing influx of migrants from across the Mediterranean. Coordinated by Frontex, Triton will enjoy a monthly budget of 2.9 million euro. The duration of the operation has not yet been set but will depend on the budget allocated to Frontex in 2015. It will then be decided whether the mission will continue, with which intensity and with which means.

The Juncker Commission's mandate started on November 1st 2014 for a five year period. Jean-Claude Juncker aims to reassure with his political, economic and social programme and guarantee the revival of growth, employment and investment in the EU thanks to the mobilisation of 300 billion € in public and private investments in the economy over the next three years. He hopes for a deepening of economic and monetary union, the establishment of true energy union and the legitimisation of the EU's work via greater efficiency on the part of the institutions in the areas of justice, legislation and security.

On 28th October, the 28 Environment Ministers adopted conclusions regarding the preparation for the 20th session of the Conference of the Parties in the United Nations Framework Convention on Climate Change which will take place from 1st to 12th December 2014. They focused on the greening of the European Semester and the Europe 2020 Strategy. They are now demanding greater emphasis be placed on sustainability and the efficient use of resources by integrating them into the Europe 2020 strategy. They debated a draft directive regarding the management of different types of waste in view of improveming waste management in the EU, protecting the quality of the environment and guaranteeing a prudent, rational use of natural resources.

Following an annual re-assessment on 30th October 2014 the Council decided to extend the restrictive measures it is implementing against Belarus until 31st October 2015. This decision was motivated by the fact that the respect of human rights, the rule of law and democratic principles have not improved significantly in the country since last year. Moreover the Council recalls that political prisoners have not all been released or re-habilitated. Adopted during the Council on 15th October 2012 these sanctions comprise an embargo on arms and materials used for domestic repression as well as an asset freeze and travel bans that target those responsible for Human Rights infringements.

The European Central Bank (ECB) published a regulation on supervisory fees on 30th October. It was approved by the Council of Governors following a public hearing. On 4th November 2014 the ECB will start its task as the banking supervisory authority as part of the Single Supervisory Mechanism (SSM). This regulation sets the means whereby the ECB will receive an annual sum covering spending associated to the undertaking of its new tasks.

French President François Hollande hosted his Swiss counterpart Didier Burkhalter on 30th October at the Elysée. The two presidents addressed both bilateral issues structuring the Franco-Swiss relationship (taxation, the Basel/Mulhouse airport) and international subjects in which Paris and Bern are jointly involved - starting with Ukraine where the OSCE's role - chaired this year by Switzerland - remains decisive.

French President François Hollande hosted his Armenian and Azerbaijani counterparts, Serge Sarkissian and Ilham Alyev on 27th October for a summit devoted to the Nagorno Karabakh conflict. As there have been a growing number of armed incidents since this summer in Nagorno Karabakh, which have led to the deaths of many, including civilians, the Paris Summit enabled the resumption of direct dialogue between the Armenian and Azerbaijani presidents. They decided to exchange data on those who have disappeared in the conflict under the aegis of the IHRC and agreed to continue talks notably during a meeting in September 2015 on the side-lines of the UN General Assembly in New York.

Italian MP and former Communications Minister Paolo Gentiloni was appointed on 31st October as Foreign Minister in replacement of Federica Mogherini who has been appointed head of European diplomacy and Vice-President of the European Commission. Mr Gentiloni was sworn in at the Quirinal Palace.

According to a press release published by Eurostat on 31st October unemployment in the euro zone, adjusted to seasonal variations, lay at 11.5% in September 2014, which was stable in comparison with August 2014, and down in comparison with a level of 12% in September 2013. In the EU the unemployment rate lay at 10.1% in September 2014 also stable in comparison with August 2014, and down in comparison with the September 2013 rate of 10.8%. Amongst the Member States the highest unemployment rates were recorded in Greece (26.4% in July 2014) and Spain (24.0%) whilst the lowest rates were recorded in Germany (5%) and Austria (5.1%).

Inflation rose slightly in October in the euro zone to 0.4% said Eurostat on 31st October 2014. Inflation was lowest in September at 0.3% and totalled 0.4% in July and August stresses Eurostat. A year ago it totalled 0.7%. To be precise, energy prices have decreased by 1.8% (against -2.3% the previous month) and industrial goods - energy apart - by 0.1% (-0.2% in September). However services increased in price by 1.2% after 1.1% in September followed by food, alcoholic beverages and tobacco (+0.5% against +0.3% in September).

The new reference report on global warming was published on 2nd November by the IPCC. Sounding an alarm the report stresses how climate change might effect "irreversible, dangerous" changes. The report also states that there are options to limit the effects of these. Amongst the most worrying changes noted by the panel are the increases in rainfall as well as rising sea levels, the reduction of the Arctic and Antarctic landmasses and a further increase in greenhouse gas emissions.

The European Economic and Social Committee (EESC) is running an exhibition until 25th November 2014 on "Fellini as Demiurge and Travelling Performer". In partnership with the Fellini Foundation for the Cinema unique works undertaken by the Italian director covering his entire career will be on show at the EESC's HQ in Brussels.

The Ixelles Museum in Brussels is running an exhibition until 18th January 2015 on "Paul Delvaux unveiled". The public can view the artist's universe via original works in which they will note omnipresent concepts, - mystery, silence, femininity and seduction.

The exhibition "Looking at Monet" will be running until 8th February 2015 at the Belvedere Museum in Vienna. It highlights the influence the master of Impressionism had on Austrian artists as he did on the following generations like Gustav Klimt, Emil Jakob Schindler, Max Weiler and Olga Wisinger.

As is customary the 55th International Film Festival in Thessaloniki will be taking place until 9th November 2014. For ten days Thessaloniki will become a place of discovery and productive dialogue on the seventh art. There will be films from all over the world, cinematic surprises, distinguished guests, tributes, Master Classes, round table discussions and parallel events.

The royal library of Turin is running an exhibition until 15th January 2015 "Leonardo and the King's Treasures" with around 100 of Leonardo da Vinci's works, alongside those of Raphael, Carracci, Perugino, Van Dyck and Rembrandt. There are also manuscripts, illustrations and autographs of famous literary figures.