... Essen (Germany) and Istanbul (Turkey) and Pecs (Hungary). Still to be ratified by the European Parliament.

They keep changing the rules and the rules will change again next year so it will be interesting to see what they come up with for the years after 2010.
I may be wrong but as I understand it, last year, 2005, Cork (Eire) was the first European Capital of Culture. Before that there were Cities of Culture (often more than one each year).
This year, 2006, its Patras in Greece.
Then we have joint EU and Non-EU Capitals
2007 is Luxembourg (EU) and Sibiu (Romania - Non-EU but hoping to join that year)
2008 Liverpool (EU) and Stavanger (Norway - Non-EU)
2009 Linz (Austria - EU) and Vilnius (Latvia - oh, hang on, Latvia is in the EU!)
Then we have EU, Non-EU and New-EU. Hence..
2010 Essen (Germany -EU), Pecs (Hungary - New-EU) and Istanbul (Turkey, Non-EU)

Is that clear?