Kosovo, which seceded from Serbia in February of this year, is one of Europe's most under-developed economies and is highly dependent on foreign subsidies.

From 1999 to 2007, when under the direct administration of the United Nations, Pristina benefitted from over €3.5 billion in reconstruction assistance.

However, the official unemployment rate remains a worrying 43 percent, with youth unemployment estimated even higher, at around 60 percent.

Kosovo's economy grew by 4.4 percent in 2007, with an inflation rate of 13.6 percent as of April, 2008.

The largest chunk of money for Kosovo is to come from the European Commission, followed by an American contribution of some $400 million. Beyond the EU's own funds, member state Germany has pledged €100 million, and the UK has confirmed an aid package worth £23 million.

French President Nicolas Sarkozy has warned Europe against falling into institutional paralysis in the wake of Ireland's rejection of the Lisbon treaty and said he hopes to propose a solution to the situation before the end of this year.

In a passionate speech in the European Parliament in Strasbourg on Thursday (10 July), Mr Sarkozy said that nothing was worse for him than "immobility" and stressed the EU should not let itself be paralysed because of yet another "institutional psycho-drama."

Paris' "absolute priority" in the next six months will be tackling climate change, notably by pushing for the adoption of legislative proposals on how to reduce CO2 emissions by 20 percent by 2020 – a goal agreed by EU leaders last year.

Harmonising the 27 member states' immigration policies and strengthening the bloc's defence capacity are the other main policy areas outlined by the president.