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To almost everyone's surprise, including the recipient's, President Barack Obama was awarded the Nobel Peace Prize. Disbelief, outrage and approval were expressed around the world. Mr Obama said he would give the substantial cash prize to charity.

At the UK's Conservative Party conference the shadow chancellor of he exchequer, George Osborne, set out plans for big cuts in public spending, reduced middle-income benefits, public sector pay freezes and a higher age for official retirement.

Italy's constitutional court rejected a law giving prime minister Silvio Berlusconi immunity from prosecution; at least two pending cases against him will be resumed.

The Papandreou political dynasty was revived in Greece when George Papandreou led the Socialists to electoral victory; both his father and grandfather served as prime ministers.