The Hungarian presidency has faced a series of truly challenging economic and political problems. These include the responses to the economic and financial crises and the uprisings in the Arab world.

As the European sovereign debt crisis deepens, the fiscal resources of the European monetary union seem increasingly inadequate. So far, the euro area policy response has failed to change the market's rather pessimistic expectations.

In response to the financial crisis that erupted in Greece, the European Council decided to amend the Treaty on the Functioning of the European Union to allow the establishment of a stability mechanism to safeguard the stability of the euro area. This is the first use made of one of the two ‘simplified’ Treaty revision procedures introduced by the Lisbon Treaty.

The EU and other concerned parties are now gathered in Durban in order to try to reach an agreement governing emission reductions after 2012, when the first commitment period of the Kyoto Protocol expires. The EU has been a leading actor in the climate negotiations since the 1992 Rio conference.

The impact of European law on the regional and local levels In the Member States is important. As local markets open up for competition, the scope of EU law is extended and competition and state aid rules become applicable.

At the end of last year, the Hungarian parliament adopted a new media law. It was met by strong reactions and believed – among other things - to constitute a threat to the freedom of the press and being incompatible with EU law.

Despite the financial crisis and the subsequent euro crisis, the Swedish public opinion is increasingly in favour of the EU. In the 2010 survey, 53 percent are in favour of the Swedish membership while 23 percent are against.

The Commission’s Fifth Cohesion Report provides a wealth of new data on social, economic and territorial trends in Europe. This gives an excellent basis for discussing the future of cohesion policy, but the questions asked by the Commission in its consultation are too narrow.

The Euro Plus Pact was developed as a complementary mechanism to support the economic governance reform program at the national level, particularly with regard to sectors, which are prerogatives of Member States. Already early on, however, it gained a rather controversial reputation.

When markets are liberalized and open for competition, the scope of EU law is widening simultaneously. Even though EU law permits considerations other than free competition, the member states must themselves use the space available.