>> hello. you are watching the "journal" live from berlin. the eu budget summit ends in failure with deep divisions between member states. >> violent protests across egypt a day after president morsi assumes new sweeping powers. >> what is at stake in the battle for control of congress? we have a full report. the eu summit has ended without

any agreement on the union's next seven-year budget, but top officials in brussels say they are confident a deal will be reached early next year. >> hours of talks failed to bridge big gaps between richer countries and those that rely most on eu funding. be contributors like britain, the netherlands, and sweden want spending bold back across the board -- rolled back across the board. >> european leaders were skeptical going into negotiations, so it was no surprise when ministers called off talks without a working budget. >> everyone brought their own goals to the table, and you know germany's position, but we are still focused on working toward a budget everyone can agree to. >> that means winning over england. prime minister david cameron has promised to veto any deal that fails to cut spending, and he has found a supporter in the dutch leader, who wants to slash the budget under the $1 trillion

mark. >> we are cutting spending in the netherlands and the rest of europe as well. the eu also has to demonstrate that it is willing to tighten its belt. >> balancing the demands of all 27 member nations will take time, and the leaders do not want to rush a deal. eu leaders have their work cut out. they will have to balance national interests with the goals of the eu, and that has put many of the net contributors at loggerheads with poorer european countries. >> there is no need to dramatize these budget negotiations. they are so complex they generally take two tries. >> the second go at working out a budget is expected early next year. >> our correspondent has been covering the summit for us in brussels. what happens now? there must be real anxiety among those eu countries that rely on

this type of funding. >> after the meeting, the council president stressed that there was consensus among all the eu member states that they are working toward a budget of growth, and that is an important message to send to the poorer countries because areas like the agricultural policy seemed to be safe from further cuts. those are areas where especially poorer regions benefit, so that is good news. ahead of the summit, positions seem to be even further apart than they are now -- seemed to be even further apart than they are now. it is coming to a compromise, but the general feeling is one that they are trying to get towards a deal where positions still our part, and that is why they need a second ago. >> what do you leaders think they can achieve at the next summit that they could not achieve at this one? >> now it is time to go home and

do some homework -- crunch some numbers, of course, but most importantly, positions are a lot clearer. there are 27 members states at the table, and francois hollande said in his last press conference after the meeting that of course negotiations are bound to be more difficult when there are 27 trying to agree on a deal, and it has to be a unanimous deal. the most important message from the summit was that they are trying to reach such a deal, that nobody is talking about the shows anymore, and they are confident that next time around, they will get it done. >> nina, thanks so very much. egyptian protesters have set fire to or attacked the governing muslim brotherhood offices in a number of cities. >> they also held rallies in tahrir square and nationwide in protest of the president assuming new powers. >> he says he wants to put an end to what he calls the seemingly endless transition to

democracy, but his critics say he has set himself up as a dictator. >> these protesters are enraged at the actions of president morsi. in several egyptian cities such as here in alexandria, protesters set fire to buildings belonging to his freedom and justice party. authorities in cairo prevented a similar attack there. his latest decrees give him almost to treat the complete control over the judicial system until a new parliament is elected. opposition politicians are calling for mass protests. they include a nobel peace laureate who says morsi has put egypt back on the path to dictatorship. >> this is a coup against the revolutionary legitimacy that brought him to power. these actions represent a takeover of the country's authorities and make him an even bigger dictator then mubarak.

>> but morsi rejects the accusations and says he is working in the interests of all egyptians. he says he does not fear the opposition but that he needs to be strong to insure stability for all of the country. morsi says he wants the best for his people, but opposition is building and threatens the stability he wants to promote. >> for the latest, let's cross over to cairo and our correspondent there. just how serious is this unrest? could the egyptian army be called out now in force to keep order? >> there are reports now of morsi discussing the situation with the ministers of defense and the interior. the headquarters of the party of

the muslim brotherhood was stormed and set on fire. while we are speaking, there are also clashes going on in the vicinity of the ministry of interior. the situation becomes more violent and more serious. >> are we looking at the end of the national solidarity we saw during the anti-mubarak uprising? i was seeing an end of the solidarity we saw between all sections of society? >> we have a very polarized situation. we have part of the population going onto the street now calling morsi the new dictator, saying he has more power than mubarak had. [inaudible]

saying the country is basically stuck for several months. nothing is happening politically, economically paralyzed, so may be it is a good idea for morsi -- maybe it is a good idea for morsi to take power and move the country forward. >> thanks for that update. a palestinian man is dead after being shot by israeli soldiers as he approached the security wall at the gaza border. >> it is the first reported killing since the cease-fire between hamas and israel came into force on wednesday evening. >> relatives of the man said he had been trying to place a hamas flag on the fence. the army fired into the air three times before he was shot. >> hours after the shooting, the situation is still tense. the town is in southern gaza close to the border with israel.

the shooting incident occurred on friday morning right on the border. a group of palestinians approached the border fence. israel says its soldiers fired warning shots -- first in the air, then at their feet. one palestinian died and 19 others were wounded. >> this is a clear violation of the agreement, and i hope egypt has agreed to be very clear, very strong with a violation like this happens, that it will not be repeated again. >> neither side wants a return to fighting, and palestinians want the border to egypt kept open. on friday, some people were allowed into gaza, and border guards let through aid supplies, which are badly needed after eight days of israeli attacks. >> it has been the wonder of the

eurozone -- germany's economy has continued to grow while the rest of europe has slowed. >> that growth is now so minimal that economists say 2013 next year could see a return to recession. still, german businesses shrugging off that possibility. >> business managers are upbeat about their future. >> german business leaders are optimistic that exports will remain strong, and the latest figures back that up. consumer confidence is also surprisingly robust. all the talk of a crisis in the eurozone does not seem to have dented people's desire to shock, but growth overall is beginning to falter -- the talk of a crisis does not seem to have dented people's desire to shop. the eurozone as a whole has fare worse with zero growth at the start of the year and then downhill from there.

that has a knock on effect for german companies. so far, though, the german economy is weathering the storm. >> that news sent stocks in germany higher in what has been a bit of a winning streak recently. our correspondent has more from frankfurt. >> traders did not spend much time looking back on the slowdown of the german economy, but they have been very pleased about the surprising rise of business confidence, and nobody expected that, leading to the fifth day of gains in the german stock market, and the dax performed very well this week. it has been the best trading week so far this year. it fuelled hope that the recovery of the german economy will be stronger next year than expected thanks to higher demand in china and the u.s. >> let's get a closer look at

those market numbers for you now. we stick in frankfurt where germany's benchmark dax rounding out friday with a perfect week in the green every single day. it was the best week of the year here in europe. euro stoxx 50 also higher. the dow jones got a boost from shoppers going to stores after thanksgiving. and the euro is currently higher. >> survivors of super storm sandy that battered the east coast earlier this month spent this thanksgiving with an extra portion of gratitude, despite the ongoing lack of power and basic services and the threats posed by looters and gangs. >> we visited an ever had in new jersey where many are still picking up the pieces. we discover that along with strong faith in the future, people are under no misapprehensions. they know it will take years to rebuild. >> jim does not give up easily. his neighbors fled when

superstore and sandy carroll toward the coast of new jersey. he barricaded himself inside his seaside park home as the hurricane howled outside. >> all of a sudden, the wind picked up like crazy. the wind picked up. the water was here. i heard a loud noise, and the front of my house blown out. >> he was relatively lucky. hundreds of houses nearby were leveled or washed away. little remains of the boardwalk. when night falls, residents have to leave the area. police patrol the town, guarding against looters. three weeks on, some areas are still off-limits because of safety concerns. some people are only now being allowed to return to their properties. local police are overstretched, but like many people here, the police chief is upbeat about the area's prospects. >> the situation is improving every day. it is 100% better than it was the day before.

if we continue to do that, the roadways will be made safe. sinkholes are being filled in, utilities are coming back. we are a resilient people. we look to rebuild. >> that resilience applies to jim as well. he is not giving up on the place he grew up. he does not know what insurance will contribute toward repairs, and some of what he lost simply cannot be replaced. >> every once in awhile, i have to just sit down. every once in awhile, i realize that this storm is going to change a lot of lives and a lot of this entire area. >> the storm moved on after just one night, but jim and his neighbors will feel the effects for years to come. >> we have to take a quick break, but when we come back, we will take a closer look at developments in the democratic republic of congo where fighting continues. >> that story and plenty of

sports action, so do not go away. keep it right at that number on your dial here at dw.

>> thanks for staying with us. >> welcome back. we start this part of the program in the democratic republic of congo where fighting continues in the east. >> there are reports that rebels had taken a city about 20 kilometers away from goma, and they now have their sights on the capital kinshasa. >> the crisis is causing a major humanitarian problem. >> thousands are fleeing the rebels in east congo, cramming into makeshift rebel camps -- refugee camps with no food.

amid the chaos, 1000 children have been separated from their parents. rebels took goma, a key target earlier this week. there was no blood bath. the rebels are well-trained and equipped with heavy weapons. the government cozy army is poorly armed and demoralized -- the government's army is poorly armed and demoralized. >> is it an army? what is it? it is not able to protect the border. it is not able to protect this side of the congo, and they have capitulated faster than you can say the word capitulation. i do not think they are capable. they do not have the capacity, and they do not have the wherewithal to do what they are being tasked with to do. >> wrote -- many rebels took part in an earlier uprising and joined the congolese army as part of a peace deal. now they have gone back to being rebels.

they accuse the army of breaking promises it agreed to. they call themselves the march 20 -- m 23, the march 23 movement. some believe, of's neighbor hopes to benefit from the chaos. >> congo reminds me of brazil in latin america, but it is dysfunctional. it does not have a single government. it is not working properly. there are significant interests in there. there are plenty of raw materials. this is one of the richest parts of africa, and africa is rich in raw materials. >> with so much at stake, it is perhaps no surprise that more and more congolese soldiers are deserting to join the rebellion. >> for decades now, many germans have been happy to park their cash in switzerland.

their southern neighbors are pretty discreet when it comes to money matters. >> that is right. when the steady trickle of cash became a torrent following the 2008 crisis, the german government decided to clamp down and at the same time fill its and the state coffers, but its treaty on tax evasion with the swiss has led to trouble. >> the deal was done and dusted with switzerland, but the german opposition has found a way to undo it. >> the government desperately wants this treaty, but the opposition was having none of it. >> we cannot have a situation where people who avoided taxes by hiding money overseas are left better off than if they had paid their taxes properly. >> the opposition says the treaty is not tough enough. it would allow people with funds in switzerland to remain anonymous, paying a retroactive flat tax rate to avoid further scrutiny, but the government says the swiss agreement is the

best deal anyone can expect. >> we will not find a better way of collecting unpaid taxes from the past. switzerland promised customers confidentiality, and it will not abolish that retroactively. >> even so, these demonstrators outside the assembly welcomed the vote. now it is back to the drawing board to find a way to get germans with swiss bank accounts to pay up. >> this is a real hot button issue in germany right now. let's go to our chief political correspondent. the swiss are not happy at all about this. the treaty, for them, they say is being held hostage to domestic german politics. >> yes in deed -- yes, indeed. we have elections coming up, and tightening the screws on rich tax evaders is a subject that lends itself to some populist grandstanding. both the opposition parties, though -- the social democrats

and the greens -- deny that this is about the elections for about politics -- party politics. they say they are taking a stand solely on the basis of fairness and that it would not be right to let rich tax debaters get away with a one- time relatively nominal payment in their eyes. >> are there any options at this point for a deal with the swiss to be reached? >> the finance minister says he does want to take this bill into a mediation committee and see if the deal can be reached, but as you pointed out in your report, the treaty cannot be reopened at this point. the swiss have sent it through all the various stages of negotiations, and they've got other similar treaties with other countries. may be some wheeling and dealing could be done in a mediation committee, offering federal states that have been blocking this some kind of other carrots in order to get them to go

along, but that chance is probably pretty slim. >> thanks so very much. still to come, we will have a look at a legend of formula one racing ahead of his final. >> first, a look at some other stories around the world. hundreds of people have demonstrated in peru against a proposed pardon for former president alberto fujimori, who is serving a 25-year jail term for corruption and human rights abuses. his children have called for him to be freed for human rights reasons. >> more anti-government clashes and arrests in chile. police have used water cannons and tear gas to break up protests by students who have staged repeated demonstrations this year, often organizing them be a social media to get around an official ban. >> what is in a name? quite a lot according to mexican

president felipe a. calderon -- felipe calderon. he wants a change in the name of his country to mexico. not many people know its full name is the united states of mexico, which originally imitated its northern neighbor, but calderon says mexico does not need to copy others anymore. sunday's formula one brazilian grand prix will be one of the -- will be the last race for one of the best drivers in the world. >> we're talking about seeking a formula one -- michael schumacher, who is set to retire, but do not forget, he has already done it before. >> michael schumacher pose a return to formula one has been dogged by mediocrity, but he says he is retiring a second time knowing he gave it his best -- michael schumacher's return

to formula one has been dogged by mediocrity. >> i am quite happy to finish from here and go for another game. >> he began his career racing cards before moving on to single seaters. after winning the formula 3 championship, he signed on as a driver for the benetton formula one team. the rest is history. his consecutive victories in 1994 and 1995 gave germany schumy fever. the men became a national icon. he racked up an unprecedented seven world championships before leaving the sport in 2006, but the natural born race driver could not keep away from the track. he staged a comeback in 2010, this time driving for mercedes. now 43, it seems he is leaving the cockpit for good, a bittersweet ending for a racing

legend. >> here is an inspiring tale. it is the story of an individual who tries to bring a little bit of color to our world. >> and a little bit of art. nothing so unusual about that you might think, but this man does it all in secret and under the cover of darkness. >> imagine you could change the color of the moon. would you turn it blue or red or may be, rather, green -- maybe, rather, green? if you could paint the night, what color would you choose? in this city, there is a man who adds color to the darkness. no one knows who he really is. he is a phantom of sorts, specializing in street art, out of the realm of shadows.

>> my heart races. i cannot let my guard down, and i have to have eyes in the back of my head. >> the family leaves painted and sculpted figures started around. in the dark of night, he dons his mask and gets to work, adding a splash of color to the city's drab walls. the figures have become collector's items for many people. >> a lot of it happens spontaneously. i take some figures out with me , and when i see a wall that appeals to me, i stick something on it, or sometimes i think i have to make something for it. >> his girlfriend left him. he turned art, and then began to wonder -- is it just too dark out there?

it was an idea that drove him onto the street. two years later, he is still adding art to walls, casting a spell of magic color across the city. it is a dream, of course, but at least a colorful one. >> who says one person cannot make a difference? >> absolutely, and it is happening in many cities across the world, actually. street art. >> thanks for joining us. remember, you can join us again at the top of the hour. >> be right back. captioned by the national captioning institute --www.ncicap.org--