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France said yesterday (4 January) that a new media law passed by Hungary, which took up the EU's rotating presidency on 1 January, violated EU laws on press freedom, and called on other members of the bloc to take action against it.

In France, the law has drawn criticism from across the political spectrum, with the main opposition Socialist Party labelling it "a very bad sign for Europe and for the liberty of the press". The controversy over the media law has contributed to a growing cloud over Hungary's EU presidency. Budapest and Brussels have clashed several times since Prime Minister Viktor Orban rejected austerity measures, cut ties with the International Monetary Fund and opted for unorthodox fiscal steps to cut the budget deficit and boost economic growth. The European Commission announced on Monday that it was investigating the legality of crisis taxes imposed by Hungary's centre-right government on the telecoms, retail and energy sectors.

France broke ranks with its European partners yesterday (10 March) by becoming the first country to recognise Libya's opposition and by deciding to "explore the possibility" of carrying out targeted bombings in the civil war-torn country. EU foreign policy chief Catherine Ashton finds herself pushed onto the sidelines as EU leaders flock to Brussels for a crisis summit.

According to the EU Treaties, the bloc's Common Foreign and Security Policy is an area of "shared competence" between member countries and the Union. In an effort to ensure greater coordination and consistency in EU foreign policy, the Treaty of Lisbon created Catherine Ashton's post. Ashton is in charge of implementing the agreed common positions of the EU. It appears, however, that there is no obstacle preventing one member country from breaking free from positions that have already been agreed, as illustrated by France in the Libya case.

Eurozone finance chiefs have backed new rules for stricter fiscal discipline, including automatic penalties. Meanwhile, France and Germany have spoken out in favour of a permanent bail-out fund that would require a change to the EU treaties. Under the previous set-up, eurozone governments which flouted rules limiting the size of their public deficit could only be sanctioned following a majority decision by their peers. As a result, scofflaws regularly got away without punishment.

The new "reverse majority" system agreed in Brussels on Monday (18 October) flips the framework on its head, with penalties automatically applied unless a majority of states oppose the move. Governments will be given a six-month period of grace in order to fix their excesses in a softening clause pushed through by France. Paris, as well as Warsaw and Rome had initially opposed the idea of automatic sanctions, while Germany insisted any reforms would not be credible unless they had some teeth.

This move would require an EU treaty change agreed by a fresh inter-governmental conference, coming hot on the heels of the newly-agrees Lisbon pact.

Just one year after the second Irish referendum on the Lisbon Treaty - one of the most bitter political battles in EU history - France and Germany are coming into an EU summit ready to pitch the idea of rewriting the legal pact. As the premiers and presidents of the bloc's 27 states arrive in Brussels on Thursday (28 October) for a two-day summit intended to endorse new fiscal rules, a last-minute deal between two of the EU's most powerful countries has caused shocked and anger across the continent.

Last week at a bilateral pow-wow in Deauville, France, President Nicolas Sarkozy and German Chancellor Angela Merkel cut a deal in which Berlin backed Paris in its desire to water down sanctions to be imposed on excessive-spending EU countries. In return, Paris endorsed Berlin's push for a change to the EU treaty in order to set-up an EU bailout fund and default mechanism. Ms Merkel is adamant that her country cannot endorse a repeat of the emergency bail-outs cobbled together this spring. Germany is the main bankroller of the €110 billion loan to Greece and of the European Financial Stability Fund (EFSF), the yet-to-be-tapped €440 billion rescue mechanism for the eurozone as a whole. Both of these funds have an expiry date of 2013 and Berlin is looking to see that something more substantial replaces them before then. The default mechanism would signal to investors that they, rather than taxpayers alone, would be on the hook for at least part of the costs of the bankruptcy of a country. The mechanism is designed to deal with sovereign defaults without setting off a cascading panic in the markets similar to the Greek debt crisis that shook Europe in spring. The idea is highly controversial, with even the reticent European Central Bank chief Jean-Claude Trichet voicing steadfast opposition.

EU interior ministers are on Monday (8 November) expected to lift visa requirements for Albanian and Bosnian citizens despite limited progress in terms of democracy, the fight against organised crime and corruption in the two countries.

To Bosnians and Albanians, the news is sweet after they were left behind last year when Serbia, Macedonia and Montenegro got on the visa-free list. Kosovo, on the other hand, has little prospect of catching up as it is not even recognised by all EU member states. On the EU side, some capitals are unhappy about the developments. The Netherlands is opposing the move, saying there has been too little progress in terms of democratisation, organised crime and corruption in Albania and Bosnia and pointing to the political chaos in both countries. France is also reluctant, fearing a massive influx of migrants. The EU commission has given reassurances that Tirana and Sarajevo will make it clear that visa-free travel is not a ticket to asylum or residence in the EU after problems with Macedonian asylum seekers last year. But even if France or the Netherlands votes No or abstain on Monday, the decision will be adopted by qualified majority. The commission itself shares Dutch concerns. In the 2010 accession progress reports on the two countries, to be published on Tuesday and seen by EUobserver, neither Albania nor Bosnia win much praise. "Bosnia and Herzegovina has made limited progress in addressing key reforms. Incompatibilities between the Bosnian constitution and the EU convention on human rights were not removed, despite the ruling of the European Court of Human Rights," the document says. It also criticises Bosnia for lacking "a shared vision by the leaders on the overall direction of the country and on key EU-related reforms." On Albania, it says the political stalemate after 2009 elections is the biggest obstacle to progress. It adds that Albania has made too little headway to be granted the status of EU candidate country, for which it applied in 2009. "Activities of organised crime groups in Albania, having impact outside of the country, remain an issue of serious concern. Further strenghtening of co-operation at the international level is necessary, including in particular with neighbouring countries," it says.

Britain and other European Union countries put their weight behind Franco-German calls for tougher eurozone rules at a summit today (29 October), agreeing on "limited" changes to the EU's main treaty in return for a cap on the EU budget.

Officials struggled to deliver the message that legal tricks could accommodate both Germany's push for treaty change and conflicting calls from several other countries which had rejected the idea. Regarding treaty change, the key word is "simplified", officials explained. A simplified provision, enshrined in Article 48, Section 6 of the Lisbon Treaty, allows member countries to unanimously adopt a decision amending all or part of the main elements of the Treaty on the Functioning of the EU (TFEU), which governs how the Union carries out its work. Such a procedure would avoid the need to call a constitutional convention, experts explained. In addition, the European Parliament would only be "consulted" instead of enjoying full voting rights as part of the normal co-decision procedure. The changes to the treaty are to be settled by mid-2013, before the expiry of the present emergency fund agreed earlier this year to deal with crises such as the one that hit Greece. The objective is to replace that with a permanent mechanism. The simplified treaty change procedure will not enter into force until it is approved by member states in accordance with their constitutions. Most EU countries are expected to ratify the decision by a simplified procedure in their parliaments. As for Ireland, it remains unclear whether a change effected in this way would require another referendum.

UK Prime Minister David Cameron appears to have been instrumental in forging a deal, lending his backing to Franco-German calls for treaty change in return for keeping a lid on the EU's 2011 budget. 11 member states, including Britain, France and Germany, will send a letter to the European Commission and Parliament today saying that their plans to increase the EU budget by 5.9% in 2011 are "especially unacceptable at a time when we are having to take difficult decisions at national level to control public expenditure". The letter was signed by the leaders of the UK, Germany, France, the Netherlands, Sweden, the Czech Republic, Denmark, Austria, Finland, Slovenia and Estonia. The bloc's finance ministers had earlier voted for a limited increase in the EU budget of 2.9%. "We are clear that we cannot accept any more than the 2.9% increase proposed by the finance ministers," the leaders say in the letter. Cameron argued that a planned increase in the EU budget would cost his country's taxpayers the equivalent of one billion euros. The 2.9% rise would still cost them £435m (500m euros). Parliament to fight back By agreeing to cap the budget, EU leaders set themselves on a collision course with the European parliament, which has the power to approve or reject the proposed budget. Negotiations between the European Parliament and the Council, which represents the 27 member countries, over the EU's 2011 budget kicked off on 27 October (see 'Background'). "If Cameron is prepared to give up the British rebate [...] then we can for sure discuss a reduction of the budget," said Martin Schulz, leader of the Socialist & Democrats group in the European Parliament, speaking to EUX.TV, the European policy news channel powered by EurActiv. "The European budget is not to be compared with national budgets," said Schulz. "There are no own resources. We have no European taxes. We have no own money. It is money coming from the member states. We can make no debts. The British budget must be reduced because there is enormous debt. Europe has no debts," he said.