The financial ratings agency Fitch placed four major Greek banks in "partial default" on 29th June following the introduction of capital control in the country to prevent the massive flight of capital and bank panic. "The worsening in the situation of the NBG (National Bank of Greece), Piraeus, Eurobank and Alpha reflects Fitch's opinion that these banks have failed and would have defaulted if capital controls had not been introduced in view of the high rate of savings' withdrawals and the ECB's decision on 28th June not to raise the ELA (emergency liquidities assistance) of the Bank of Greece," maintained the agency in a press release.

On 1st July the ECB announced that it would be maintaining the ELA (Emergency Liquidity Assistance) allocated to the Greek banks. This position was maintained on 6th July. However when it took its decision on 6th July the ECB adjusted haircuts on collateral. Moreover the Greek government decided to extend the closure of the banks until 8th July.

On 1st July a Eurogroup meeting devoted to Greece took place. Finance Ministers assessed the Greek requests to extend the European financial assistance programme. However the Eurogroup deemed that the political situation and the government's position regarding the referendum had not developed, and so the request was rejected. Jeroen Dijisselbloem, the Eurogroup President, commented the results deeming that it was regrettable. A new Eurogroup meeting is planned for 7th July.

On 5th July a referendum took place in Greece on whether the country should accept the proposal put forward by the institutions in the "Brussels Group" or not - regarding the agreement to achieve further financial aid from the country's creditors. According to the final results released by the Home Affairs Ministry the "no" (oxi) totalled 61.3% of the vote for a turn out of 62.5%. Alexis Tsipras, the Greek Prime Minister described the result as a "major victory" but recalls that he hopes to take up negotiations with the institutions once more.

On 6th July German Chancellor Angela Merkel and French President Françoise Hollande met at the Elysée Palace during an interview followed by a working lunch in order to "assess the effects of the Greek referendum" and to define the Franco-German position on this issue. François Hollande said after the meeting that "the door was open for discussions" with Greece adding that Alexis Tsipras's government had to put some "serious" proposals forward. "It is urgent for Greece, and for Europe," insisted the French President. Angela Merkel indicated that it was "urgent" to "have precise proposals" from Greece, emphasising that the country had to reckon with the response of 18 other euro zone countries". "We shall also see how the 18 other countries react. This is also democracy. We have shared sovereignty. 19 of us share the same currency. So, everyone has to be responsible and stand together," declared the German Chancellor.

As a result of the Greek referendum Yanis Varoufakis, the Greek Finance Minister announced that he was resigning on 6th July in order to facilitate negotiations with the country's European partners and members of Eurogroup: "Shortly after the announcement of the referendum result I was informed of a certain preference on the part of some Eurogroup members and "associate" partners for my "absence" from the meetings; an idea that the Prime Minister deemed to be potentially useful as far as reaching agreement was concerned." Yanis Varoufakis was replaced by Deputy Foreign Minister Euclide Tsakalotos, the coordinator of negotiations with Greece's creditors. After being sworn in he will take part in his first euro zone Finance Ministers meeting (Eurogroup) in Brussels on 7th July. Former Greek Prime Minister and the main opposition party's (New Democracy) leader, Antonis Samaras also announced his resignation following the victory of the "no" in the referendum.

On July 1st the European Commission adopted a communication on the report delivered by the French government in which the latter lays out the details of the measures the country has taken in response to the Council's recommendation made on 10th March regarding the excessive deficit. The Commission's communication confirms the French budgetary strategy which is aiming to reduce the deficit by 2017 laying out the means to implement action in 2015 and 2016. Moreover although the Commission deems that the trajectory to reduce the government debt in 2015 and 2016 respects the goals set by the Council it stresses that the budgetary effort required in 2015 and 2016 is still insufficient. France will therefore have to step up its strategy. The procedure for excessive debt has however been suspended.

After growth of 0.9% in the first quarter of 2015 Spanish Prime Minister Mariano Rajoy raised growth forecasts to 3.3% for 2015 and to 3% for 2016 against an initial 2.9%. He also announced that the government wanted to bring forward the date for the introduction of income tax reductions to 1st July whilst this measure had been initially planned for January 2016.

On 29th June the Council adopted the compromise that was reached with the European Parliament during the trilogue on 23rd June last which aims to amend the regulation introducing the European small claims procedure as well as the regulation introducing the European order for payment regulation. The aim of this compromise text is to make the European small claims procedure more effective and more open to a greater number of cases. The compromise text is now due to be adopted by the European Parliament as well as by the Council on first reading.

On 29th June the Council adopted a version of the regulation on the improvement of transparency in the financing of securities operations. This text aims to reach compromise with the European Parliament on 17th June. The regulation adopted by the COREPER aims to improve financial stability by guaranteeing that the operations in question are effectively reported to trade repositories and investors in collective investment undertakings. The regulation now has to be adopted by the European Parliament on first reading as well as by the Council.

On 1st July the Luxembourg Presidency of the Council started. This Presidency will last the second semester of 2015 and is the 12th undertaken by Luxembourg - but the first under the Lisbon Treaty. In this regard seven priorities have been set for the next six months: liberating investment for growth and employment; deepening the social aspect of Europe; managing migration, allying freedom, justice and security; reviving the internal market by focusing on the digital; including European competitiveness within a global, transparent framework; promoting a sustainable approach to development; strengthening the EU's profile in the world. The Presidency was officially launched on 3rd July.

On July 1st the Danish government announced that it intended to reduce the number of refugees present in the country. New benefits rules submitted to parliament on 3rd July, which are due to enter into force in September, provide for reductions of nearly half of the benefits paid out to a childless asylum seeker, dropping from 10,849 crowns to 5,945 (797€). An additional allowance of 1,500 crowns will be paid to people who have the required level of knowledge of Danish to obtain work or training. On 30th June the Foreign Minister Kristian Jensen announced that he wanted to re-introduce border controls between Denmark and Germany and Sweden as he made his first foreign visit to Berlin.

On 1st July the EU announced, via the European Commission, that it was increasing the humanitarian aid it has been providing to Ukraine in support of victims of the present crisis in the east of the country. The new aid will rise to 15 million euro, bringing the total provided by the EU so far to 62 million. Although direct contributions by the Member States are being taken into account more than 223 million euro in humanitarian aid has been dispatched to Ukraine since 2014.

IMF staff and the Ukrainian government came to agreement on a series of reforms to introduce to complete the first assessment of the extended fund facility arrangement. The agreement is due to be accepted by the IMF's Executive Board if it deems that the government debt is sustainable and that the programme can be financed. The validation of this assessment would lead to the disbursement of 1.7 billion dollars.

According to Eurostat estimates the annual euro zone inflation rate dropped in June 2015 to 0.2% which is one point less in comparison with May 2015 (0.3%).

According to Eurostat around 1 million people (985,000) acquired the nationality of one of the 28 EU Member States in 2013, ie an increase of 20% in comparison with 2012. Amongst these 985,000 people, 89% were citizens of a third country. The main recipients of an EU Member State's nationality were Moroccan (86,500), Indian (48,300) and Turkish (46,500). The highest naturalisation rates were recorded in Sweden (7.6 nationality acquisitions for every 100 foreign residents), Hungary (6.5) and Portugal (5.9). Conversely the weakest levels were recorded in Slovakia (0.3), Czech Republic (0.5) and in Denmark (0.5).

On 2nd July the OECB published a report entitled "Indicators of Immigrant Integration 2015: Settling In". This report highlights the fact that the children of immigrants continue to encounter a certain number of difficulties in terms of integrating the countries of the OECD, notably in the EU. The problem of integration can be explained amongst other things by low levels of education which lead to difficulties in finding work. The figures are revealing with young people born of immigrant parents being 50% more likely to be out of work than those who did not have a history of migration. Moreover another revealing figure is that in the EU countries one young person born of immigrant parents out of five believes they are victims of discrimination. However the latter trend was not witnessed in the non-European OECD countries.

The National Portrait Gallery of London is paying tribute British actress Audrey Hepburn (1929-1993) until 18th October. Thanks to work by some of the greatest photographers like Richard Avedon, Cecil Beaton, Terry O'Neill, Norman Parkinson and Irving Penn and also prints, magazine covers, films, the exhibition reviews the life of the "Fair Lady" from her debut as a chorist to her commitment to UNICEF at the end of her life and her years as an icon for Givenchy.

Rome is hosting the Rock in Roma rock festival until 6th September. On the line-up there are major names from the international rock scene like Muse, Linkin Park, Robbie Williams and Noel Gallagher but also different types of music ranging from techno to pop and rap as well as artists like Damian Marley and Stromae.

Until 20th September the 2015 Photography Meeting is taking place in Arles. On the agenda are photography training sessions, open air nocturnal viewings, conferences and debates and over 60 exhibitions in places that are usually closed to the public. Created in 1969 this festival is the meeting point for enthusiasts who turn Arles into the international capital of photography.

The town of Gent in Belgium will be hosting a Jazz Festival from 10th to 19th July. Comprising two stages the festival hosts many personalities from contemporary jazz as well as folk, pop and variety singers. Amongst the artists not to miss - a duo of guitarists from South America - Rodrigo y Gabriella on 16th July.