♪ >> hello and a very warm welcome to "european journal" coming to you from dw studio in brussels. thank you for joining us. here is what we have for you today -- the deep fears of people in italy. largely exempt -- why the greek orthodox church is not affected by the crisis. and sniffing out winners for the euro 2012. regions, famous for producing fast cars like ferrari and lamborghini, balsa macall vinegar. it is very important for italy's

economy, especially now in the current crisis that is the -- particularly affecting south of europe, but life has come to a standstill since it was hit recently by two major earthquakes. the first was the heaviest quake in the region in 500 years. more than a dozen people were killed and thousands lost their homes. those houses are still standing do not dare return yet. >> the call of the birds is the only sound that interrupts the sound of the silence. in this area of northeast italy, many historic city centers are virtually abandoned. the many aftershocks that continue to hit the stricken region make clearing the rubble impossible. the town hall clocks stopped at 4:45, then it's after the as quake hit on may 20. most of the old bell tower was destroyed.

35 kilometers further west, the historic center is still standing. after every earthquake and aftershocks, the local architect had dealt with the fire department to inspect the damage. group of looters pertaining to the local officials are under way -- pretending to be local officials. the piazza is one of the largest city squares in all of italy. it has also been evacuated. nearly 1000 residents are now living in emergency shelters. many buildings are in danger of >> the cathedral has been heavily renovated over the past years, so it is still standing, but you can see the traces of damage. i hate to think what would happen if it collapses. them at the cathedral was built in the 16th century. now the walls are riddled with cracks.

>> the tower is on the medieval castle were also hard hit. we have already cleared away the chimneys that were destroyed in the first earthquake on may 20. the damage you see here happened after that. we still do not know what it looks like inside. >> the authorities are allowing people who live in the district to check on their homes, but no one wants to stay here right now. and i have been sleeping somewhere else for days now. my apartment is not to damage, but i am too afraid. >> pietro rossi also stops by every day. he owns a pet shop, and the animals need to beat that. democrats and dogs since the earthquake before we do. they tried to hide. the birds get very agitated, and

the flap their wings so hard in their cages that some of them injured themselves. >> outside the historic district, people are also afraid. many local residents are living in tents. a few lucky ones are living in camper vans right outside their own front door. the town council has set up shop in an elementary school nearby. the employees are trying to relocate people who have been left homeless to areas outside the earthquake zone. that compared to other areas, our town has been very lucky. no one here has been hurt, and no one has died. we have been very fortunate here. >> the classrooms next to the mayor's makeshift offices are empty, and just as the children left them. the mayor and his team are determined to keep the residence safe. no one should be injured by a

collapsing building. but in italy, very few buildings are designed to be earthquake- proof, despite the risks. >> we finally passed a law in 2008, which established guidelines for earthquake safety. for the most part, buildings that were built after 2008, like this school, are still intact. but that is just a small number of buildings. a small plot of the total. >> as well as the historic buildings, the warehouses and factory buildings in the industrial zone are also at risk. this is a center for the textile industry and mechanical engineering. buildings in the neighboring town just a 20-minute drive away suffered extensive damage. this truck was nearly buried under a collapsing wall. that is an ex -- that's of

expense of all solid vinegar had been left to spoil -- vats of expensive balsamic vinegar. >> this is the growth engine for italy, especially now with the economic crisis, italy needs of our economic strength all the more, but to regain our strength, we need our government to give us the support we need. >> but italy's track record in recovering quickly from earthquakes is less than good. so the people are worried that they will be living in tons for some time to come -- in tents. >> the election campaign is over, but france is still in the middle of a campaign. that will determine how much opposition the new president will face at home. many say the days of

predecessor sarkozy's bling- bling are over, but not everybody is impressed. hollande has announced a rise in taxes for the top income bracket, the 75%. some are looking for places abroad way they can still drink their campaign in place. -- in peace. >> a classic example of swiss town. population -- currently 6500 -- has been dwindling as locals wait for better opportunities. but it is now been linked up to france's high-speed rail network, cutting the journey time to paris to just two hours. >> it will transform the whole region. there is a new international spirits. we are showing the outside world that we are still here and that

everybody is welcome. >> wealthy french people who settled here are especially welcome. this man and his charming assistance have properties like this one to offer them, a huge modern villa with a luxurious interiors and fantastic views. the asking price is 2 million euros, a bargain by swiss standards. there are plenty of potential buyers from france, he says, and claims they are motivated by fear. >> i can understand why company owners, who have worked hard their whole life, are worried about the small fortune they have accumulated. it is more than understandable for them to come here. >> it is no coincidence that the french are keen to move to switzerland following the election of the new french president, francois hollande. he has announced plans to raise the maximum income tax rate to

75% and also increase inheritance and capital gains taxes. pierre's phone has not stopped ringing. switzerland appeals to rich foreigners on account of its low taxes and zero inheritance tax. he has recently welcomed 50 new residents from france. >> we have entrepreneurs, doctors, artists, and a well- known actor. they all have a sizable fortune and want to live in the countryside, but with some links to big cities, and, of course, they value discretion. >> as we discover for ourselves, the new arrivals were reluctant to talk to us, but it does seem to be booming. frenchmen recently bought this building, and local boutiques are reporting an increase in business thanks to new customers across the border. >> i noticed it as a

businessman. i am happy to see any new customers, especially when they have money to spend. >> the same trend is evident in the swiss city of geneva, but on a far larger scale, of course. geneva has always attracted french tax exiles, and interest has increased since francoise hollande's election victory. since january, this tax lawyer has helped 12 frenchmen relocate to geneva -- more than double the usual number. demand for his services is growing. >> i got a lot of calls and e- mails after the election. lawyers sometimes have to go to their clients, so i have become a frequent visitor to france. >> moving to geneva is no cheap matter. the price of real estate has spiraled in recent years. this property will set you back a cool 16 million euros, but

despite these prices, the city has seen renewed demand from french house seekers -- good news for realtors. he had a group from paris here last week. >> geneva is not expensive. international customers, apartments in downtown paris cost more than a bill like this one here, so it does make financial sense. >> the scenario is reminiscent of when socialist candidate became president over 30 years ago. the rich panicked, and many headed for geneva. back then, however, property was cheaper, and swiss banking laws were more favorable. >> today, we are again seeing french people coming to switzerland. these days, though, it is not a case of taking illicit funds out of their mattresses and bringing them here. bank privacy has diminished. most banks would not accept

undeclared money now. mammon no matter how many french people n euros and up flowing across the border, he wants a piece of that pie -- >> no matter how many french people and euros and a flowing across the border, they want a piece of that pie. they have even spent a -- built a small replica of the eiffel tower in the middle of town. >> rich people in greece have also started syphoning their money out of the country, fearing they could lose everything, should greece exit the europe. it seems hard to imagine, but it could take place if elections again fail to produce a functioning government, or if the winners are parties that want to stop austerity measures. that could well mean that greece's international donors lose their patience for good. many greeks said they have had enough of tightening their belts, and speaking of austerity, one prominent group seems to have been scared from all the cuts.

>> this is where the greek orthodox church unfolds its mystery and magnificence. bold, icons, symbols of centuries of history, and of its traditional alliance with the greek state. the national flag stands beside the altar. governments are blessed by bishops. priests are state employees. it is a cozy relationship which today in the midst of a severe economic crisis, many greeks are unhappy with. more and more people are asking why the church has things in excess like well, a property, tax breaks, when they have nothing. in fact, the church once more, claiming that it used to be much wealthier. >> the church has lost 96% of its wealth, its property.

and the remaining percentage the church still holds consists of land for fields of forest that it is not permitted to put to use. and so this property cannot generate income. >> greek media, however, report that the church certainly does make a profit and ignores the rules if need be. one example is the litmus peninsula where the church has claimed and -- a large undeveloped area allegedly to build an orphanage, bassoon, hotels to be going up instead. the archbishop of athens personally troubled here. two properties have now been sold, allegedly threw letterbox

companies to avoid tax. the courts are investigating. >> if it belonged to the church, then these beaches should remain open to everyone and not be privatized. we hardly have any public beaches left as it is. >> i do not like churches to do usiness, earning money.es to do at his connected to my sort of church. >> and elegance and stone church has already been built to fit in with the planned luxury surroundings. a costly project, no doubt. the church was a business acumen does not surprise the leftwing parliamentarian who was among the first politicians to call for a strict separation of church and state and a stop to the church as many privileges.

>> i will give you an example -- donations to the church are tax deductible. because of that, we have many arab nations, as they are called. i give the church 1000 euros, and the church issues a receipt for 20,000 euros. they save about 6000 euros in taxes, and there is no drawback for the church. and i can give you another example -- rent income from church property is taxed at a 20% rate. regular property owners have to pay 35% or 40% tax on their rent income. >> that adds up, especially since the church is the second- biggest property owner in greece after the state itself, and it seems some clergymen also take liberties with the law.

one notorious case is a monastery where the addicted -- sold a lake that did not definitely belong to him to the state in exchange for properties valued at 100 million euros. a deal facilitated by the justice ministry landed the atom in prison. a few weeks ago, he was released. many greeks are also outraged by the fact that the church is trying to cash in on land just outside the capital. a giant solar plant is to be built in this nature reserve. environmental activists discovered that environmental protection laws were supposed to be rewritten practically overnight with the support of the major governing parties. once again, church and state are seemingly working hand in hand. >> we are standing on a mountain that is one of the last green areas.

the forest burned down three times under mysterious circumstances. the territory is supposed to be reforested now. forests like this are the city's long spirit we are also protesting because the church is claiming land that we do not think it owns. >> after the elections, the church will again try to get the laws changed for this project. it is very important for the church, but we will keep protesting, and we are optimistic that we will win in the end. >> the monastery to which the land is lets it -- allegedly attached is 5 kilometers away. it was subsidized by the eu, the same view that the greek bishops recently publicly referred to as a new occupying force. in times of crisis, criticizing politicians is a popular tactic. the church is also distancing itself, at least publicly. it says the close ties that benefit both sides are just a media campaign.

>> the media play an important part in the fact that some people identify the church with a political system. but since people have seen that the church helps, that it is on the ground, that it is with the people and not the government, they feel close to the church. >> nast in athens biggest church is almost over. -- mass in athens' biggest church. and coffee with a conservative politician -- still old friends, it seems. >> the waiting is over for european football fans. euro 2012 kicks off this weekend. host nation poland opened the tournament friday with their match against greece. saturday sees germany pitted

against portugal in their first appearance. bookmakers will be busy again. so far, germany and spain are the odds on favorite. there was much talk about the your preparations in the run-up, centering on allegedly half- finished stadiums, ligands in ukraine, the other host country, and the way the ukrainian government is treating the opposition, but now, it is all about soccer again, and the big question is -- who will come on top of the 2012 european championships? >> one of the stars of the 2010 world cup. he correctly predicted germany's place in the tournament so is the outcome of the final. sadly, he died a few months later.

a host of pretenders -- there have been a host of pretenders. zookeeper's insist they have now found a worthy heir. the city certainly deserves more attention, they say. >> i think, to put it mildly, that it was a state to overlook this as a venue for the 2012 games. it is a beautiful place. fantastic hotels, the castle, so our animals took things into their own hands, and will feature of your 2012. >> among the potential animal or goals -- these parents and the temperamental female elephant. the contestants face a tough test to decide who will get the nod. i have to predict the result of major championship league final between chelsea and bayern-

munich. first the parrot. he picked the wrong peanut, despite the keepers conference. >> which shows the parent for its intelligence. can memorize up to 60 words and even forms of sentences. disparate can learn a new word every hour, especially if you give him enough. >> next, he had to choose between two peanuts, but he also picked the german side and failed. now, all eyes were on the donkey with a huge fan base among the young the generation. >> there is a phrase "dumb as a donkey" but they are not stupid. they are smart and careful animals. albeit very stubborn. >> she had to place her bet

without the support of her faithful following. she is not too keen on peanuts, said the keepers had heard choose between two buckets of water. she might have had a good nose for carrots, but not, it turned out, for football. one contestant did predict the right champions league winners, however. earlier in her career, she performed ball tricks at a german circus. perhaps given her crucial insights into the beautiful game. either way, the clairvoyant elephant pick the correct mellon, representing chelsea. her keeper is confident she will be up to the task and the media glare. >> she is smart, and i know she will manage it. she only needs one or two practices to pick something up. she will make her decisions on her own. >> she will be predicting all of

poland's games and then the quarters and semis and then the final itself. she has been training every day in recent weeks. just as well because there is competition from across the border. cohost ukraine apparently has a psychic pain, a lot larger than these duties at the zoo, and funding the four key predictor will be the tournament at the bases out in kiev. it had been awhile since she last had a game of 40. her keepers have been eager to get her ball skills honed, as well as a tipping talents. she certainly knows how to keep our eye on the ball, at least. although she found out that led the club footballs have nothing on honey melons. then it is your big day. journalists have gathered from poland, ukraine, and further

afield to witness her prediction for the opening match of the tournament. the media circus proved more of a commotion than her time under the big top. then, the moment bookie's worldwide were waiting for -- the winner of the first game is poland. but did she take out the right team? either way, getting to eat all those juicy melons made it a win-win situation for her. >> that report brings us to the end of this edition of "european journal." we hope you enjoyed the program. please do tune in again at the same time next week if you can. until then, from all of us in brussels, thanks very much for watching and by for now -- bye for now. captioned by the national captioning institute --www.ncicap.org--