tv Journal KCSMMHZ November 23, 2011 2:30pm-3:00pm PST
2:30 pm
2:31 pm
the financial future of europe is at the center of a showdown between brussels and berlin over eurozone debt, and it touches on overriding issues like national sovereignty and the rights of individual parliaments. the president of the eu commission has launched a new push for eurobonds, criticizing the german government's rejection. >> the eurozone president hopes that brussels can convince markets that it can resolve the debt crisis, and he wants germany to reconsider the introduction of eurobonds as a solution instead of just rejecting the idea. >> frankly speaking, i do not think it is appropriate in our european union in respect of the prerogatives and duties of all the institutions to say from the beginning that it should not be
2:32 pm
helped. >> the european commission has proposed three possible forms of yourbonds. in the first version, current individual government bonds would be replaced by eurobonds appeared in the second, eurobonds and government bonds would exist side by side. in both cases, the bonds would be backed by all countries. in the third version, individual countries would guarantee their share of eurobonds proportionately, but hopes of convincing berlin to agree to the new system were quickly dashed by german chancellor angela merkel. >> i find it extraordinarily regrettable and inappropriate for the european commission to present a very different types of eurobonds today. the message that they are trying to convey is that by sharing the debt burden among the member states, we will be able to overcome the structural weaknesses of the currency union.
2:33 pm
and that just will not work. then he vehemently defend his proposal for a common european economic policy coordinated and directed by brussels. otherwise, he warns, the eu will have no influence on the markets. >> 4, we are joined by simon young, who was following that debate force. you heard merkel. looks like she will be sticking to her top line? >> it does. she calls the proposal regrettable and out of place. that is pretty strong language from chancellor merkel. she is adamantly opposed to the idea of eurobonds. she thinks they will push of germany's borrowing costs, that they might stoke inflation, and she believes that the real focus in this debate should be on tightening the rules and
2:34 pm
increasing the pressure on eurozone governments that have been taking on too much debt. that is where she believes the emphasis will be and that is, i am share, the message she will be taking to her meeting tomorrow with the leaders of france and italy and strasbourg -- i am shirt -- i am sure. >> germany has plenty of debt as well, doesn't it? >> germany is indeed taking on even more debt even in the midst of this crisis. its total debt is 80% of gnp, which is more than allowed under european nationals, but the german economy is still doing quite well, much better than the other countries in europe. as a result, they might say that they can afford it. the government says it is committed to getting down the deficit still. the opposition, of course, say that they are not doing enough.
2:35 pm
>> simon young, thank you. the european commission believes eurobonds are the answer. there were about what it means in terms of losing national sovereignty. we learn more about what's barroso -- what barroso's proposals mean. >> it means extension of the powers of brussels. not least today, the proposal that you would have far more budgetary discipline than was foreseen until now and indeed, each member state according to brussels should be governed by an independent this co-counsel giving advice on its national budgetary measures every year. all statistics on which national budgets are based should be derived from an independent body. this is a hell of a move forward, and it is backed up by the fact that it bustles even then did not like the figures it saw on the table when they were transmitted, it could demand
2:36 pm
changes -- if brussels even then did not like the figures it saw. as you say, angela merkel is not in favor of eurobonds. she is not alone. the dutch finance minister said it was the wrong solution and could actually worsen the economic crisis. a political storm, but we have already got one, but it is building into a bit of a fury tonight. >> thank you. that here in berlin, policy- makers are debating the budget for finance -- back here in berlin, policy-makers are debating the budget for next year. german chancellor angela merkel suggested that germany would have to borrow more money next year to meet costs, leading her political opponents to accuse her government of a double standard. >> berlin plans to clog up more of its own debt next year. 26 billion euros -- that is 4 billion more than this year. the chancellor called her government's budget on this, pointing to germany's economic
2:37 pm
slowdown, but the opposition is outraged. the spd leader calls the plan a leading signal to other european states. >> you condemn europe to a savage austerity program. how credible is that policy is here in germany under much better conditions than in all the other member states, you are still increasing borrowing? >> applause from the opposition ranks, but merkel defended her government's course in an unusually defensive tone. >> what we're doing in the debate between europe and germany can hardly be taught in hypocrisy. if we stick to the usability criteria and on the other tried to contribute to growth because all of europe is asking us to, then you hold it against us. that, ladies and gentlemen, is not logical. >> the plan is to take on more debt to pay for spending on research and infrastructure.
2:38 pm
merkel called them investments needed to foster growth. >> nobody really seems to want german government bonds, either. >> a little more difficult, yes. german government bonds remain the safest in europe, but far weaker demand than anticipated at a bond auction this wednesday pushed costs even higher for other eurozone nations and sent the euro lower. the new bond promised to pay out just 2%, the lowest ever interest rate on an issue of german-10--- german 10-year bonds and a lack of buyer fears it is driving away investment. >> an organization called the german finance industry charged with selling german debt and normally, it is a pretty easy job. german bonds are popular investments, but suddenly, buyers seem to think they are not offering enough yield. the gap between interest rates paid for bonds by different eurozone governments is growing. italy and spain pay nearly 7%.
2:39 pm
france is paying over 3.5% interest. germany pays the least. so far, not even 2%. if the trend continues, france risks a downgrade in its credit rating. two agencies have already stated that france's aaa status is under review. a dangerous position for the eurozone's second largest economy. >> with investors suddenly showing little desire to buy german bonds, we asked the chief economist at the premier bank how he was interpreting the situation. >> first of all, we only could sell a little bit less than 4 billion euros. the target was 6 billion. it does definitely mean the european crisis is approaching germany. with all the other countries -- countries around germany, with others regard the stable, being greeted down by capital markets,
2:40 pm
that happens now through germany and it does mean the german policy has to move into a direction where they support fencing of the eurozone, whether it is the ecb bazooka or the eurobonds, it remains to be seen. but i expect it in the next few weeks. >> meanwhile, the lack of interest in the bond auction triggered a further sell-off in frankfurt. we have the summary from the frankfurt stock exchange. >> traders here at the german stock market are getting more desperate. after all this government changes in the and rescue packages, there's not much left to do to improve the situation, putting pressure on the german dax. the eurozone central bank should start a bond buying program peer this is the opinion here. traders here that the crisis could spread.
2:41 pm
>> we can say in frankfurt for look at wednesday's numbers. the dax finished down by 1.4%. the your socks -- euro stocks 50 also finishing out -- down. on the currency market, the euro trading lower at a value of $ 1.3330. nokia has announced plans to cut 17,000 jobs within the next two years as part of a radical restructuring plans. the cuts at the finish german partnership would amount to almost 1/4 of the firm's jobs. the move is designed to cut annual costs by 1 billion euros. observers said up to 1/3 of the work force based in germany could be affected. >> thanks. the yemeni president has signed a deal to hand over power, ending 33 years of rule in the country. he would hand over power to his vice president in the saudi capital. a spokesman for yemen's
2:42 pm
opposition, protestors rejected the deal and have called for demonstrations. protesters have been on the streets of the capital since january. bahrain's king pledged reforms after it was found the security forces used excessive force and torture detainees in a much crack down on protests. hours before the reports were released, clashes continued. dozens of young people in a majority shiite town protest the death of a local man. he was killed when his car was hit by a police vehicle. in egypt, police and protesters have clashed for the fifth day running with demonstrators demanding the country's military rulers hand over power immediately. the united nations has condemned authorities for what it is
2:43 pm
calling an excessive use of force and germany, one of egypt's top trading partners, has called for a quick transfer of power to a civilian government. upwards of 40 people have been killed and hundreds wounded. >> the streets around tahrir square resemble a wars appear demonstrators and security forces have clashed for days. the protesters want the field marshal, head of egypt's supreme council of the armed forces, to step down. demonstrators on tahrir square even launched a puppet of the field marshal in effigy. they blame him for the hard-line response from security forces, which are blamed for the deaths of dozens of protesters. they also criticize the use of tear gas. >> why are egyptians being attacked with gas? that is bad internationally -- that is banned internationally.
2:44 pm
why is a peaceful protester being attacked with gas that can kill you? it even says so on the canister. >> of the opposition presidential candidate has called for restraint. that they have the right to express their views freely and to protest and to sit in, provided that there will be no attack on public buildings or public properties, but at the same time, there is no justification whatsoever for the use of violence. >> but the situation remains tense. concessions by the military have not made an impact among protesters. tahrir square is the scene of the longest and most intense protests since february, and those protests did not end until jose mubarak announced he was stepping down. >> france called for international intervention in syria to protect civilians in the country amid continued unrest. french foreign minister said he would ask european partners to help create humanitarian
2:45 pm
corridors to alleviate the suffering of syrian civilians amid the regime was a crackdown on anti-covenant protesters. the united nations estimates some 3500 people have been killed since the protests began earlier this year. here in germany, the president has met with families of the victims of a series of neo-nazi murders. the group of right-wing extremists killed 10 people over a decade without being caught. chancellor merkel read off the names of the victims in parliament. than the suffering that has been inflicted can never be undone, but we of the victims our support. therefore, i welcome the suggestion of the justice minister to compensate the victims and their families using the fund for victims of extremist violence. and the french police have been battling anti-nuclear protesters as they followed a train.
2:46 pm
put us are expected before the train is due to reach its destination. > the controversial cargo was due to reach its destination -- before they finally began the journey from france to germany. anti-nuclear protesters clashed with police before the train departed. usually only a handful of protesters show up on the french side. this time, it was hundreds. finally, the police dispersed the demonstrators. on its 1000-kilometer journey to the interim storage facility, the cargo will stop at the station to be transferred to trucks. protesters are already have out there. >> it is a good sign that so much is happening in france. we will see a lot of resistance this year as well. but the police say they are
2:47 pm
prepared. >> we are expecting to see blockades and people sitting on the tracks. we are also prepared to deal with objects blocking the tracks. >> anti-nuclear activists have announced a large demonstration for saturday. you are watching the "journal." i will be back in a minute. >> there is a natural resource that exists everywhere on the planet that could help end poverty. yet, it has been largely
2:48 pm
ignored. that resourced is wind. in many of the world's poorest communities, their potential often remains untapped. >> i am powerful. >> i am powerful. >> it is a source of power the world can no longer afford to overlook. she has the power to change her world. you have the power to help her do it. >> welcome back. how did a group of german neo- nazis remain undetected as they caried out a string of racist murderers over 10 years? that is the question many are asking here in germany. this week, the parliament held and then the silence for the victims as the country debates what to do about extreme right wing violence. some politicians are calling for the creation of a new anti- terror units to confront the militant far right. others are calling for a complete reform of the domestic intelligence services. here is more. >> the federal office for the protection of constitution,
2:49 pm
germany's top domestic intelligence agency -- his counterpart heads the federal office of criminal investigation, the country's top police agency. but the men are not allowed to collaborate directly. german law strictly separate -- prohibits sharing power to prevent the abuse that occurred during the nazi period. only police may act based on intelligence gathered by the security agencies, but as germany's system gives policing authority to individual states, the central office shares jurisdiction with 16 regional offices. when the series of killings now retreated to the right wing group was investigated 13 years ago, police agencies committed serious errors. >> i do not understand how they let the suspects get away. it is perfectly natural that they would not have had an arrest warrant at the time as
2:50 pm
they did not know what they would find in the garage, but the minute weapons and bombs were found, the suspects have to be at least temporarily detained. >> instead, the trio were able to go underground. it is still unclear whether later murders could have been prevented if the police and domestic intelligence had cooperated more effectively. germany's domestic security agencies are there to gather intelligence, to prevent crimes from being carried out. in the event of a perceived threat, the agency to enforce the federal government, but the 16 offices can decide for themselves what information they want to pass on to the federal office if any. >> we have a long way to go to improve cooperation between the state and federal level as well as between the various state offices. the facts at our deposal suggest there is indeed much room for improvement.
2:51 pm
>> germany is looking to reorganize its efforts to county -- counter neo-nazi terrorists. there are efforts to create a central hub modeled on germany's joint counterterrorism center. critics claim this would infringe on germany's loss to separate police and intelligence services, but there is no law in germany that prohibits agencies from exchanging information. >> links between right-wing groups and german intelligence services have become the major story. the secret service has come under fire for paying active neo-nazis to inform on the extreme right wing groups they belong to. the best example -- approximately 100 people in the far right mpd party were in the pay of the state. at one point, some 15% of its members. an effort to ban the party failed in 2003, and many are now calling for a new attempt to outlaw it. here is more on right wing
2:52 pm
police informers. >> right wing extremists fuelling hatred against foreigners and those who think differently. many of them glorify violence and some are willing to use it. to prevent that from happening, investigators monitor the far right seen. they pay informants -- not undercover investigators, but real neo-nazis. the informants are meant to deliver information for money, but critics say their information is no good. >> experts know that informants never give up their intentions. it always remain 100% right wing extremists. take for example this former regional leader who worked as an informant for domestic intelligence until 2001. he openly admitted to funneling some 100,000 euros paid to him by the german state to a radical neo-nazi group, which the three terrorists from slick california
2:53 pm
also belong to. the opposition wants this practice stopped. >> these people are not trying to deliver useful information about the nazi seen but rather to cover it up. to cultivate nazism and fund it with taxpayer money. what's worse, some even boast of their crimes are funded for the protection of constitution. in other words, by us. >> germany's interior minister insists that investigators still need insider information about far right activities, but he says agencies need to be more careful about who they recruit. >> i will leave informant's play an important and indispensable role as an early-warning system for what is happening in the scene, and we will see that it is essential to get information on the organizations in a question. >> the value of the informant system is now coming under
2:54 pm
intense political scrutiny. it appears that investigators had no idea about the neo-nazi group that was able to murder and challenged across germany for years. >> let's bring in our correspondent for more. john, this is an unbelievable failure here on behalf of the domestic intelligence agencies. how could their informant system break down so completely? >> critics of the informant system would say it did not break down at all. it just did not function at all right from the beginning. the problem is that these informants are not police agents. they are in fact convinced, committed neo-nazis, who are lured by money by the authorities to, as it were, betrayed their comrades. that might work in the drug scene. it does come to some extent, because the motive there is excusable money anyway. but in this political context, where people are motivated by hatred and by a perverse
2:55 pm
ideology, the danger is if you take the money, use the money to build up their organization, and then give information to the authorities, which the authorities could have gotten out of the internet anyway. that appears to be what happened in this case. >> politicians are calling for a merging of intelligence agencies, but ironically, it was the experience with the fascist police state that made these separations necessary in the first place. >> some politicians are calling for that. some national politicians. regional and state politicians are not because the divisions in germany are between various peace forces and the intelligence services on state lines as a key element of the german federal system since the second world war. that reaction to the hitler state, the hitler regime, and the wish that there should never ever be anything like the gestapo again in germany -- that may have been relevant, of course, and was just in the years immediately after the second world war, but it is
2:56 pm
definitely a systemic weakness in combating terrorism today. >> there have been comparisons between the neo-nazi groups and left-wing or even islamic terrorism. would you say that is going to far? >> i think the problem is that we have got a lot of pieces of a jigsaw puzzle at the moment, but we do not have any coherent picture, and it is much too early, i think, to make comparisons between the two. i think, though, that it is interesting that what pieces of the jigsaw puzzle we do have at the moment suggest that there are some really rather strange elements in this story, one of in being that the perpetrators of these murders did not publicize the fact that they were responsible. that is normally a key element of any terrorist action because you want to use the murders to intimidate a particular section of the public. that was not the case here, but it will have to wait for the next few weeks or may be months before we can start making that
2:57 pm
198 Views
IN COLLECTIONS
KCSMMHZ Television Archive Television Archive News Search ServiceUploaded by TV Archive on