>> coming up, the head of state against the most powerful paper in the land. the showdown that is gripping germany. iraq claim over 70 lives. and a wind storm makes waves in northern europe, knocking out electricity and closing airports. ♪ >> it is the scandal that is

pitting germany's president against its biggest tabloid newspaper. did christian wulff tell the whole truth in a crucial tv interview last night? says no. but chris schauble has refused permission to do that. it set up a showdown that is just the latest stage in the scandal that threatens to engulf the president. >> christian walmart -- christian wulff rejected a request. he says it is a private matter. bild said publication is the only way to clear up a dispute over what the president said. in wednesday's tv interview, christian wulff maintain that the voicemail message was not an attempt to stop publication about the story of his home loan. >> i ask the the number to delay publication by one day so we connection the facts were right. >> but his critics are not convinced. judging from today's headlines,

the president has not dispelled all doubts about his integrity. even though he made a heartfelt apology about his intent at intervention. >> calling the editor of the newspaper was a grave mistake, and i apologize. i also apologized personally shortly afterwards. that was also accepted. >> his lawyer has put a six-page document of the controversial loan on the internet. christian wulff claims the whole thing was above board. >> journalists from the paper came to my village to do research. they talked about corruption and caused a real fuss. afterwards, before a trip abroad, i made public the loan terms and who was giving it. then i was surprised to learn that the story would be published while i was on a trip abroad. >> of germany's governing polled -- coalition hoped that the interview would calm stormy waters. >> we would be well advised to

respect his comments and give him the opportunity to return to his duties. >> but the opposition says this problem has not gone away yet. >> even after the tv interview, all the important questions remain unanswered. the president has lost his credibility. >> this affair has been far from glad tidings for angela merkel. on her first day back at work, she hosted some children's choirs. but on the subject of the president, she was tight-lipped. >> we spoke earlier to our cheap political correspondent, melinda crane, and asked for more on christian wulff's refusal to allow the crucial voice not to be published. >> it is not clear by the way that the president's no will necessarily stop publication of the transcript of the phone call. it could well be that he will not have the legal authority to be able to prevent publication.

but, in general, it certainly does not look good for christian wulff. he holds an office that, more than anything else, is supposed to demonstrate moral integrity. the office of president here in germany is largely symbolic, but the president is supposed to provide a kind of moral leadership for the nation. so if it emerges that he lied in the interview yesterday about the contents of that phone call or at least intentionally misrepresented what he said, that certainly would go to the question of whether he has the moral stature to hold this office. >> what about the chancellor, angela merkel, she has indicated that she is standing behind christian wulff, but she has not said much -- is in pressure going to mount on her to really say something? >> qr spokesman did say yesterday that she has full confidence that the president will answer all the open

questions regarding the various transgressions and irregularities. she has none said anything since the interview. i think, of course, she will be biding our time to see whether further developments emerge. certainly the matter is very uncomfortable for her. christian wulff was our hand- pick a candidate to replace his predecessor as president, who did resign. a second resignation would be very uncomfortable, particularly when she is facing a lot of big challenges in terms of both the european crisis and a week junior coalition partner. she has a lot of her hands. she will be hoping that this matter is finally laid to rest. >> thank you for that, melinda crane. >we will be getting more from melinda later in the show with a closer look christian wulff's interview. first, other news. president barack obama has unveiled a new defense strategy that he says will save hundreds of billions of dollars without giving up america's military

superiority but up in a joint news conference with defense secretary leon panetta, obama said less forces would strengthen their position in the asia-pacific region and suggested that they would play a reduced role in europe. the military will no longer prepare for a large scale prolonged conflict but would still be called on to counter extremist threats after the pullout from iraq and afghanistan. obama's strategy envisions a smaller but more agile military force. with the u.s. pullout from iraq, it has left many worrying about a return to civil war there across the sectarian divide. those fears were raised further with bomb attacks in baghdad and the thought that the country. more than 70 people were killed, most from the shia majority. >> police said two car bombs were detonated at almost exactly the same time. the attack on one neighborhood of the fact that appears to have targeted the mainly shia population there.

>> the politicians have created this catastrophe in our country. the need to sit down together at one table. this is the tragic result of their disputes. >> the ongoing differences between the shiite and sunni muslims have escalated into a political crisis which is affecting many people in iraq. shortly before hand, two roadside bombs exploded near a bus stop in al sadr city. police said there were able to diffuse a third bomb. since the u.s. withdrew its combat troops from iraq, there has been an increase in sectarian violence. >> prosecutors in egypt have called for the death penalty for the ousted president hosni mubarak. the former leader who is said to be seriously ill is on trial for the killing of protesters during last year's uprising. the chief prosecutor says the order for security forces to

open fire on the protesters could only have come from the bark of the prosecuting team is also demanding the death sentence form of art poses security chief and six police commanders. for the first time in 20 years, authorities in burma said it will allow the opposition party, led by aung san suu kyi, to run in an election. the nobel peace prize winner met britain's prime minister on thursday. she has not yet said she will run for parliament herself in the elections which are due in april. but she does said she believes burma will hold full democratic posts with in her lifetime. 2011 was another deadly year for journalists. the international press institute says 103 reporters or other members of the media were killed trying to get a story last year. mexico was the most dangerous country of all. >> journalists in mexico are increasingly getting caught in the crossfire from the country's ongoing drug wars.

asking the wrong questions can prove lethal. the facts speak for themselves. 10 journalists murdered in just one year. reporters in mexico have been demanding increased state protection for years. but change has not been forthcoming. many politicians and police officers are themselves on the payroll of the drug cartels. journalists are also living dangerously in other countries, like honduras, were six journalists were killed. that is the same number of reporters that were killed in pakistan and also in yemen. it was a similar situation in iraq. last year's arab spring revolutions underscored how important journalists can be in overturning tyrannical regimes, but the risks were high. 21 journalists and camera operators were killed in the upheaval. >> ok, time to get to business. it was another rough day on the markets for europe's single currency. >> definitely. the hero and a 6 -- the euro in

a 16-month low against the dollar today. investors have the jitters for a number of reasons. france is in a tricky situation. and the nation's first bond auction of the year, the cost of borrowing has gone up and demand is weaker than expected because of fears that the nation's credit rating could face a downgrade in the coming months because of exposure to the debt crisis. france still needs to raise 178 billion euros on capital markets this year. in greece, prime minister lucas papademos is raising fresh concerns about the threat of default for his nation. he says unless workers accept major wage cuts, athens may not receive its next round up eight from the eu and imf. the connecticut face in the fall as soon as march without the funding. >> the greek government will need 17 billion euros of eu bailout funds in the month of march alone. but strict conditions have been linked to getting that cash.

next week, representatives from the trick of the european commission, the europeans a dropping, and the international monetary fund are due to visit athens to assess whether those conditions, which include spending cuts, are being met. greek prime minister lucas papademos has fallen trade union executives to support moves to cut labor costs, a plea they rejected. >> regarding the national collective labor agreement and the minimum wage of the low-wage workers, we say we're not willing to take a single step back. >> greece has been in recession since 2008, and the eu commission does not expect the greek economy to grow again until 2013, and even then only at a very slow pace. greece has been frozen out of the capital markets since 2010, with private investors shunning greek government bonds, athens is completely dependent on bailout funds from the eu and

imf. >> the markets have not been reacting well. our correspondent has more from frankfurt. >> the systemic risk is back in full bloom and not only because of the concerns about a potential bankruptcy of greece. in spain, the government reckons that the banks will have to raise 50 billion euros of fresh capital in the next few years because banks in spain are sitting on so many bad assets. then there is hungry, a country which is not part of the euro, but there are regular financial policy of the government in protest -- budapest is causing concern to the unit's credit, a bank which is big in hungary, shares lost 20% in only two trading days. >> let's get a closer look at the market numbers. we stick in frankfurt or the blue chip dax was down on the day, down 0.25%. the euro stoxx 50 at a similar story. in new york, the dow jones industrial average trading under way, and it is down on the day.

the euro losing majorly against the u.s. dollar, trading for $1.2784. well, switzerland, the central bank chief has dismissed suggestions he should resign following a probe into the timing of the currency deal made by his wife. he said he followed the swiss national bank's internal rules when his wife made half a million dollar trade. the timing of the move is in question, because days later, he took action to lower the value of the swiss franc. his wife is a former currency trader who is now running an art gallery in zurich. as the debt crisis rages on in europe, many market leaders are focusing on emerging economies. india is one example. the auto expo in delhi began today, offering a showcase for car makers who want to present their wares to indian customers. clucks some 15 new car models

are making their debut at the auto expo. 2010 saw indian car sales increase by about 30%. although growth slowed last year, demand is expected to remain high. >> we're looking at a growth rate of close to 7.5% over the past few years. that is propelling the demand. >> but getting a foothold in india is not easy, with average annual income at 1000 euros, the market is dominated by compact cars, like the new model by an indian manufacturer. the starting price is 5000 euros. foreign luxury carmakers like bmw, mercedes, or for cannot compete with prices like that. suzuki has the lion's share of the midmarket with 45%, followed by hyndai with 14%. by comparison, general motors has 4% and volkswagen just 2%. but carmakers know their

presence on the indian market is key to future earnings. middle-class incomes are set to rise on a long-term, and with them, the number of potential buyers for medium-sized and luxury cars. >> and a german car maker posted record sales last year. it sold nearly 1.4 million vehicles. demand for luxury cars in china and the u.s. helped boost those figures. sales also rose as sharply in emerging economies like brazil and russia. as for next year, the automaker expects to the robust trend to continue. the brands include mercedes benz. back to richard. >> in northern europe is being battered by a huge winter storm. the name is andrea, and she's been causing havoc in the netherlands, france, and right here in germany. >> on the northern german island, tourists are getting more than they bargained for. the powerful storm front andrea is whipping up the wind and the

waves. >> i have been vacationing here for 50 years, but i have never seen anything like this. >> the storm may seem exciting to visitors, but residents are worried about their homes. the waves are fast eroding the famous cliffs. >> i could cry just looking at this. this is our home being washed away. >> the netherlands are also hard-hit by the storm. residents of the low-lying northern village were told to evacuate over fears a diet might break. air travel, too, has been impacted by the low pressure system. at amsterdam's airport, travelers faced delays and cancellations. falling trees, like these in belgium, made roads in northwestern europe highly dangerous for drivers. andrea is expected to die down over germany on thursday evening, but meteorologist are

expecting new storms in the coming weeks. >> stay with us. i will be back for one minute for more on the scandal gripping germany. can christian wulff hold onto his job? ♪ ♪ ♪

>> welcome back. germany's president is meant to stand above politics, above society even, as a figurehead for the whole nation. but right now, it is christian wulff's personal conduct that has to make transfixed. did he mislead lawmakers about the big home loan taken in his former career as a state premier? has he tried to bully the media? has he misled the nation on how you dealt with germany's biggest newspaper? wednesday night, christian wulff appeared on tv to defend himself in a make or break interview. we'll get reaction from our chief political correspondent melinda crane in a moment.

first, some experts from that interview. >> it is your first day back at the palace, a new year. have you thought seriously at all of resigning? >> no, over the past weeks i have received great support from friends, citizens, and staff. i enjoy carrying out my presidential responsibilities. at the end of my five-year term, i would like people to say i was a good and successful president. i carry out my duties with pleasure and conviction. i have not done anything wrong, but not everything i have done has been good. >> so have you been a good president so far? >> i have, that is the past few weeks that are being talked about. one has to take stock of their five years and decide. >> you have been under fire for calls made to the editor in chief of the bild newspaper, kai diekmann, and the ccf sprinter,

which owns bild. you are accused of leading voice mail messages threatening both men did you have spoke of waging war and of an unworthy breach. but isn't it undignified for a president to use such methods to try to suppress a critical story? >> calling the editor in chief of bild was a grave mistake which occurred -- regret and for which i apologize. i also have apologize personally, and that was accepted. in a statement before christmas, i underscore in my support of press freedom, and my actions cannot be reconciled with my own understanding of the presidential office. >> it started with information you give to the regional parliament of lower saxony, which at the very least was incomplete but you acknowledged this, also apologized. why did not reveal from the outset that big on perkins was

involved in this loan? >> by now, this must be very clear. mrs. gierkins offered to lend me 500,000 euros from her account. i pay the interest into her account, and the sum was paid back onto her account by a bank mortgage. >> but why all the hair splitting? >> on december 15, i said it was mr. gierkins, who has been a friend of mine since my school days, a father figure who has stood by me for 35 years, who established contact with the bank. that was published. in the state assembly, nobody asked me about his wife. palazzo asked whether i had business ties with him, which i do not. i should have disclosed might business ties with her. today, i would give an interview the minute i bought the house during knowledge that friends lent me money for the initial phase and refurbishment, and i

am paying interest. >> sons in the interest rates were favorable. you say no. there are the partially and pay for vacations with wealthy business people. critics say the vacations' violated lower saxony's ministerial regulations. the leading social democrat lawmaker has called on you to clarify this. are you going to? >> the state government is going to respond to that. and anyone can call on the state's constitutional court. it is clearly not a breach of ministerial regulations. the people i stayed with her old school friends of mine. so if a nice couple who owns a candy shop as a luxury vacation house, and they have a guest room and a holiday in their guest room, and if and then there are photographers covering to take pictures of the family on vacation, if they then visit us in berlin, we're not going to charge them for bedding. and we are there, i have known

them since i was 14. >> you were the guest of the ceo of a large german insurance company. >> i have been close friends with them for years. does not work for them anymore but you could say he is now a retiree. and he said, look, if you're trying to keep your divorce secret in your marriage secret and everyone is still hot on your heels. >> but did you feel it was incorrect to accept these invitations from friends as a premier? >> no, and it is the premier is not a lot of friends anymore and of all politicians in germany are not allowed to overnight at friends' homes and induce the by any friends guest room, they then have to ask for a receipt, and this republic is taking a turn for the worse. >> men me ask again, has in your behavior in the past weeks badly damaged the office of the federal president? >> their many ways in which the office of germany's federal president has gotten more difficult. and this way of handling evens surely has not served the office.

but i am convinced that a whole role of activities during my time in office has strength in the office of the federal president. >> are cheap political correspondent melinda crane has been following this story from the start of rush hour chief political correspondent has been falling this from the start. i asked for her analysis. >> i saw a politician who was quite adept at seeming simultaneously contrite and victimized, who was adept at making himself appear humble and unlikable. a politician, but not necessarily a politician with the kind of presidential stature that germans expect from their president. this is a largely symbolic office, but at its very core, it is the idea that the president is supposed to have moral leadership, and i am not sure

that is what i saw yesterday. >> the tabloid bild has asked the president of the can publish the transcript of this disputed voice man. christian wulff has said no. how do you read that? >> well, i think there is a real conflict about the facts here. the president said in the interview that he had asked, his voice mail, for the paper, the tabloid newspaper, the bild, to delay a report that it was going to publish on his loans for the purchase of a private home. questions had been raised about whether those loans possibly subjected him to undue influence by the businessman who loaned the money. and he says that he only asked for a delay in this report that was going to be published. the papers is that is not true. they say he was trying to stop their coverage of this loan. as i say, that is a dispute

about the facts, and the paper has said it, in the interest of the transparency that the president has claimed is essential, would like to publish the transcript. he has now said no. he possibly may be looking at taking legal action. it is unclear whether he would be successful in that. of course, this is all about the role of the press and about the president's respect for freedom of the press. so it is a very central issue that goes to the heart of his role. and i think this scandal will continue, and we may, in d, c publication of that transcript. >> it is almost as if there was an attempt to draw a line under the scandal, and it has only made things worse. do you think resignation is still on the table? >> i think it is very much on the table. if anything, we're seeing the media who shape public opinion more determined than ever to get to the heart of the matter. and public opinion also seems to

question whether the president is suited for his office. >> all right, thank you for that assessment, melinda crane. that wraps up our "in depth" report. thank you for watching, and stay with dw-tv. ♪ ♪ captioned by the national captioning institute --www.ncicap.org-- ♪ ♪