Every August, as the European Union's bureaucrats go on holiday, the union itself closes down for a month, leaving the residents of Europe's European cities wondering where all the diplomats have gone.

To mark the August break, the dpa English Service will as of Tuesday run a twice-weekly series of stories entitled "Curious Europe," looking at the inventions, arguments and oddities which make Europe an institution like no other.

What is the connection between Colombian coffee and Scottish lamb? Why does Germany come before Belgium in the alphabet? And why does Europe have at least six hearts?

They may not be the kind of questions which often make the headlines, but they lie at the very heart of the European Union.

Strasbourg, France - All sides in the conflict raging in Georgia should cease firing and open peace talks before it is too late, the head of the Council of Europe urged Friday.

"The human toll of the escalation of the conflict in Georgia continues to rise and the country is now on the edge of a full-scale war which would have devastating consequences for the people in the region," council Secretary General Terry Davis said in a statement.

"The first priority is an immediate and unconditional ceasefire. This should be followed by direct talks in order to find a peaceful and permanent solution," he said.

Brussels - The European Union on Friday brought into force the latest round of UN sanctions on Iran in the dispute over its nuclear programme.

An announcement published in the EU's official journal ordered the bloc's 27 member states not to enter into new commitments for grants, financial assistance and concessional loans to the Iranian government, but to continuously monitor the dealings of their own banks with Iranian institutions, especially Bank Saderat.

It also mandated member states to inspect cargoes carried by Iran Air Cargo and the Islamic Republic of Iran Shipping Line, as long as there are "reasonable grounds" for suspecting that they are carrying nuclear-related cargoes.

Helsinki - Finland, current chair of the 56-nation Organization for Security and Cooperation in Europe (OSCE), expressed "serious concern" over the situation in South Ossetia in Georgia.

Chicago - European Airbus is facing the loss of a 2.2- billion-dollar contract with United Airlines amidst plunging airline revenues, the airline said Thursday.

The airlines mother company, UAL, referred to the possibility in a filing with the US stock oversight agency, the Security Exchange commission.

UAL said it was highly possible it would not uphold its order for aircraft of type A319 and A320. United Airlines would lose the 91 million dollars downpayment if it cancels the contract.

Frankfurt - The European Central Bank (ECB) is set to leave its benchmark refinancing rate on hold at 4.25 per cent Thursday, analysts predict, as it faces up to the twin economic threats of surging inflation and slumping growth.

This comes after firing off a warning shot at its meeting at the start of July to ward off resurgent inflation by lifting borrowing costs in the 15-member eurozone by 25 basis points.

But since then while signs have emerged of a pickup in inflation, the economic gloom surrounding the eurozone is starting to deepen as new grim economic numbers continue to roll in.

At 4.1 per cent, inflation in the eurozone is more than double the ECB's target of "close to, but just below 2 per cent."