♪ hello, and welcome to the "journal" on dw-tv. i am amrita cheema in berlin. i am steve chaid with the business news. >> our top stories -- agrees has a new government of national unity after lucas papademos and his cabinet are sworn in. italy's senate approves economic reforms as prime minister berlusconi prepared to quit. and remembering the end of the first world war. ♪

>> greece has a new government of national unity in what is being called the start of a new era for the country. lucas papademos was sworn in as prime minister with a cabinet of 48 ministers. the economist and former central banker now has to work with politicians from the left and the right. first up, getting parliamentary approval for a second bailout deal. it took extensive wrangling, but the new cabinet has finally taken shape. hours later than planned, the new leadership gathered in athens for an officials wearing- in ceremony. left, concern that -- conservative, and right wing parties are united in a common goal, to rescue the greek economy. the finance minister will retain his job. the socialists now occupy 13 of the 17 cabinet posts.

the conservatives will lead the defense ministry, while the right-wing populist party will take over responsibilities for infrastructure and transportation. despite the outward show of unity, the parties remain deeply divided. still, they're now focusing on one goal, saving the greek economy. >> agrees is our highest priority. there's no political parties, only greece. >> first of all, we are obliged to succeed. this is the command of the greek people. we have to work very hard in order to follow what has been decided from the european union. >> the unity government does represent a broad coalition of officials, and now they will try to put aside their divorces and deliver the results of grease so desperate that we -- and desperately needs. >> a technocrat heading a huge bunch of politicians from the

left and right. will this work? >> very well-put. at this moment, greeks would have accepted anybody, except a politician to lead them. greek newspapers have generally been very complimentary about papademos. they have talked to people who worked with them when he was the central bank governor. those people describe him as an orderly and methodical person. if there is one criticism they have, it is that he is sometimes over-meticulous. so it is going to be a question of whether, in the politics, he can take this left decisions that often is needed. >> if you can put things in order before elections, is this enough time to lift the political and economic stability in the country? >> i think most people think 100 days is enough to put grease on the right path. it is enough time for the new

loans that the troika is offering to be in place. so if he moves swiftly, and if, as you said, he can handle the rough-and-tumble of greek politics, then he has a good chance of achieving the limited aim that he has been brought in to do. >> brian williams in athens. turning to italy, where the senator of the house has approved a package of crucial economic reforms demanded by the european union. the measures up to be debated by the lower house. if passed, it would pave the way for prime minister berlusconi to step down in the coming days and the formation of a new transitional government. >> it did not take long for italy's senate to approve the latest austerity package. but time is of the essence. the bill includes strict cuts handed down by the eu, an effort

to cut debt in rome and fast. on the floor of the senate, all eyes were on this man, mario monti, a former eu competition commissioner, and now he has been tipped to lead italy out of its economic mess. some believe he is the best candidate to lead a democratic administration and calm the markets. >> mario monti is the first step for italy. because he will make the rules and try to apply -- [unintelligible] >> but the future of italian politics is still shaping up to the party of the outgoing prime minister's, silvio berlusconi, has yet to decide whether he will support a unity government with mario monti or push for early elections. the turmoil comes as it is facing a crisis of staggering proportions. the country's economy is on the verge of a meltdown, as italy struggles to deal with huge debt and record borrowing costs.

on the streets of the capital, many believe the worst is yet to come. even if there is a change in government and a new prime minister, italians will carry a heavy burden. severe cutbacks are set to kick in in the coming months. >> we now go live to our correspondent in rome, italy. the stakes are betty hyatt -- are very high. it is too big to bailout. tell us about the political mood. >> well, the senate passed the stability law without any problem, and is expected that the same thing will happen when the bill goes to the lower house of parliament, the chamber of deputies, on saturday. in the eerie, the stability law will then be signed into law by president napolitano, so that by the time the markets open on monday morning, italy will have obeid, as it were, the dictates

of brussels, and shown that it is serious about putting its economic house in order. however, the future of mario monti administration is by no means certain. a new name has come up today, and he is a possible leader of a technocratic government. he is a former official of the bank of italy. he has already been prime minister once in the 1990's. he served as foreign minister. he is regarded as a possible viable alternative to mario monti. the point is that if mr. deeney rigid takeover, he might get support of the freedom party. mr. berlusconi's party is split between those who are prepared to support the new mario monti government and those who are not. there is still a certain amount

of confusion about just how easy it is going to be for mr. mario monti if he is called to form a new government and to actually carry it out. there are many hurdles. >> right, thank you very much for that update. portugal is also under pressure. there have been austerity measures there as well. >> it was not just in athens and rome. portugal has confirmed its commitment to the fiscal austerity required by its rescue. portugal's parliament approved a package of measures that include a tax hikes and wage cuts to the government pledged to introduce the tough budget as part of the deal allowing it to receive 70 billion euros in imf and eu bailout fund earlier this year. the austerity will trim the deficit, but critics believe the measures could also plunge portugal into its worst fresh session in decades. spain has provided a reminder that the road to recovery will be long and difficult, according

to data unveiled friday. spain's economy recorded zero growth in the third quarter. domestic spending has fallen as confidence in the future continues to wane. spain's unemployment rates are the highest in europe at 22%, meaning a lower income tax revenue for the government in more benefit payout key factors as the government in madrid speaks to a chip away at the country's massive deficit. but investors are good news friday. let's look at the markets. after a volatile week, the dax finished firmly up, and positive territory. here is the report from the frankfurt stock exchange. >> on this last trading day of the week, hope returned to the stock trading floor. the dax had lost for a while, up to 4%, but ended trading on friday night with a weekly gain. the plans for austerity in italy were one reason for the good

mood, just as consumer confidence in the united states, which proves to be stronger than anticipated by economists. and strong earnings reports came in, for example, from a steel maker and from the hamburg port operator. >> we will stay in frankfurt for a look at friday's numbers. the blue-chip dax went into the weekend up by 3.2%. the euro stoxx 50 also looking solid. across the atlantic in new york, the dow having a very strong session, up by more than 2%. and currency markets, the euro trading at $1.3738. europe's largest insurer is a feeling the effects of the debt crisis. allianz's profit fell much more than forecast, dropping 258 million euros, compared to nearly 1.3 billion a year ago

during the same type of the company blames the fall on investment losses and agreed bond writedowns. the company still expects to meet its operating earnings estimates for the full year. and the french finance minister is demanding some clear answers from standard and poor's. s&p accidentally sent out a message friday to clients announcing a downgrade of the credit rating of france. it took a number of hours to abolish the error, which spanned the is living on a technical which -- coolidge. it is said that the incident is grave. >> it was a nasty shock for paris. traders worldwide were rushing to offload french government bonds. paris has opened a probe into the mistake, and authorities are highly alarmed. >> this incident is serious, and

it shows that in the current volatile market situation, market players must exercise discipline and demonstrate a special sense of responsibility. >> for days, rumors have circulated that france could lose its aaa rating pitta that has pushed up the interest of the country has to pay on its 10-year bonds to 3.4%. germany's interest on 10-year debt has fallen to 1.8%. the mistake gives a new fuel to proponents of tougher regulations for ratings agencies. in germany, some politicians the government's need to win back control >> we really need to address the liability of ratings agencies. there has been gross negligence, and that is why we need clear liability rules in this sector, to deal with grisly negligent conduct or into and buy ratings

agencies. >> standard and poor's mistake is the latest incident to highlight the ratings agencies the effects on the markets. the european commission is already thinking about outlawing ratings for countries to try and rein in the influence of the agencies. >> that is your business update. back over to amrita cheema. >> suspected kurdish rebels rejected turkish periander holding as many as 20 passengers and crew hostage. the turkish transportation ministry says the boat was hijacked on at the northwestern coast. it is not clear how many hijackers are on board. officials say one of them claimed to have a bomb. there is no word on what demands, if any, have been made. the u.n. has dealt a blow to palestinian hopes of gaining full membership in the world party. a security council committee has failed to reach agreement on the issue. now palestinian leaders must decide whether they still want a security council vote. the u.n. has about to veto the

application. the organization unesco admitted palestine as a member, and they will cut off funds to the organization. germany is one of the country's not committed to supporting the palestinian bid to the i am joined by the spokesman of angela merkel democratic party. explain germany's position to us. why do they have to say yes or no? >> when we decide to give something to the palestinians, we want to have something positive. that means that the have to take the costs also politically for joining the united nations. i am not for a free lunch for them. therefore, they have to get together with the israeli government and to talk and to find a way for peace. >> some of your colleagues disagree with you. is this another example of eu not being able to coordinate its policy? >> i am frustrated about the

situation of brussels in this case, because brussels is not able to announce what the position is that the european union. there is so much national influence on this question. there is the need for one european voice in this, but this voice does not exist. >> chancellor merkel and westerwelle have said it is part of germany's identity. what does this actually mean? >> germany's one of our most important parts, how we see for policy and now we see germany's role in the world, that we stand united with israel. that means for the future that by the situation of america and of the american president that germany's days closer with israel than it was before. and we would have to take more responsibility on the issues of israel. that means that we are no longer neutral or a moderator in this situation. we stand clear on the side of

israel. >> we will also be taking an in- depth look at the palestinian statehood later in the program. german authorities are investigating suspicions that right wing extremists may be responsible for the murders of 10 people over a seven-year time span. from 2000 to 2006. prosecutors say they're looking into the killings of eight people of turkish origin and one ethnic greek. last week, police found a pistol and a burned out apartment. it is believed to be the murder weapon. at another location, they also discovered a service revolver belonging to a police woman murdered in 2007. ceremonies taking place around the world to mark the anniversary of the end of the first world war. 93 years ago today that the armistice was signed between germany and three allies. in france, president sarkozy

laid a wreath at the arche de triomphe. it is a day to remember the dead and honor all veterans but you're watching the "journal" on dw-tv. stay with us. "in depth" is that next. i will be back with you in a minute. ♪ ♪ ♪

>> welcome back. a setback for the palestinian authority. it fell to get support in the u.n. security council for a vote on its bid for statehood. after weeks of closed-door meetings, reports said there was no majority for the application in the 15-member security council. the united states said it would veto any bid. palestinian leaders are now considering their next move. one option would be to go directly to the general assembly of the united nations, where palestine could get status of the once two-thirds majority.

for decades, palestinians have dreamt of state had, and they feel their time has come. >> palestinian cartoonists have been having a field day since the application for united nations membership. and this car to its is no exception. the bid has real political debate in the palestinian territories, and that of always good news for satirists. >> this cartoon shows as carrying our own seed to the united nations. it shows that it is not an easy journey. it puts a burden on our shoulders. but we're choosing to take this road. though it is long and difficult. with all the obstacles placed in our path. by the u.s. with its veto or by israel. >> originally from gaza, he explains his work to these young seminar participants. his cartoons are published online in appear on local tv. he aims to reflect the everyday

concerns and emotions of the palestinian people. >> so far, people have just said the feeling that negotiations were a waste of time. they did not establish facts, on the ground or change people's lives. but this time, there's a feeling that palestinians really want a state of their own. >> he has been working on the u.n. project for months. he is a palestinian who grew up in a delay and is an advocacy worker for president of loss -- abbas' u.n. membership bid. >> palestine continued to be the last colony in the world. we want to do something. this something, i think has to deal with our choices. our choice is to claim independence through non-

violence, through negotiations, through diplomacy. that is where i get my work from. i am very proud of it. >> today, he is meeting a group of swedish high school students at the presidential palace in ramallah to explain the u.n. membership in bid to them. usually his job involves getting a permission from journalists and diplomats. >> it is not a job like any other. i am thinking about the dignity of want to give to my children, once i have kids. maybe they had dignity i do not have been a to have every state, to go around the world and be proud. >> it is part of his job to be optimistic. just like the cartoonist. both hope their optimism will eventually prove to be justified. >> it is not limited to the palestinian territories. it is also alive and among the 100,000 palestinians who live in

germany, including in berlin. they're getting increasingly impatient that their aspirations for a separate homeland has been thwarted again and again. >> this nt room in central berlin as a meeting place and and vice center for palestinians living in the german capital, especially those with ties to the plo. most came to germany to study. some have lived and worked here for years. but they all dream of having their own independent state. >> i am a palestinian to the that is my identity. i would like to have a country of my on like everyone else did of the nacogdoches palestine tomorrow if i wanted to. >> our economics at george showed be very different. we could set up our country, build up the whole economy. we can do that. we are well-educated. we are very capable. >> i hope to be able to go there

one day without having to pass through several checkpoints where you are in danger of being sent back and not being allowed to get through. >> they knew there was little chance of this united nations membership bid being successful. but palestinian leaders are undeterred and will press ahead. the men here know it is a political gamble but say it is the right thing to do. >> the point is to get united nations to face the issue and realize that there needs to be a palestinian state, and it will happen sometime. >> i believe there are very many people around the world whose support palestinian statehood. i am pretty sure of that. and whatever the outcome, it is worth a try. >> these berlin-based palestinians recognize that there is still a long way to go

on the road to statehood. but they remain convinced that their dream will come true in the end. >> we're now joined by the head of the palestinian general delegation to germany. having your efforts at the u.n. been counterproductive? >> no, not at all. actually, it is the palestinian leadership trying to save the two-state solution. israel has always refused to have a two-state solution based on the borders of 1967. by the admission of palestine to the u.n., i think we create a new basis for peaceful negotiations based on the borders of 1967. by this, we are progressing the peace process. >> will you just end up getting observers like the vatican at the u.n.? >> many countries historically applied several times until they were admitted to the u.n.

so there are many ways, definitely the way through the general assembly is one of the options that the palestinian leadership is studying currently. but then we will come back to the security council. because our ultimate goal is the full admission of palestine as a full member of the un >> you have a step that the and then the nation's bitter unesco has recognized palestine. washington has come to the aid of the organization. >> it is very unfortunate that the u.s. reacted the way they did. the u.s. was in the minority in the general assembly of unesco. the overwhelming majority of the members of the unesco international community are with palestine as a full member. that is why i think the united states and israel have isolated themselves. >> many find it hard to support the palestinian bid because

hamas controls the gaza strip. many view hamas is a terrorist organization. >> this month there is a meeting between president abbas, and the head of hamas. we hope that the two sides will manage to find a common denominator. this will, of course, help the palestinian cause to have unified palestinian position. >> do hamas and fatah see eye to eye on the application for statehood? >> well, it is our application for admission to the united nations and has nothing to do with hamas. the palestinian people legitimate leadership, the leadership of the plo and the palestinian national authority, headed by the prime minister, are the legitimate leadership of the palestinians. we are applying to admit palestine as a full member. so i do not really understand how to bring hamas in this

picture. >> thank you very much for talking to us. the palestinian bid for statehood was the focus of "in depth." thank you for being with us. we leave you now with a look at the latest headlines. captioned by the national captioning institute --www.ncicap.org-- ♪