>> hello, and welcome to the journal. >> welcome to the show. >> top stories this hour, afghanistan's president says his country will control its own security by 2014, but is that realistic? new recruits to the bundswehr recall the failed plot to kill hitler. and an extended contract as german soccer coach.

afghanistan should take over responsibility for its security within the next few years. foreign ministers also agreed to channel development aid in the central government, a vote of confidence in hamid karzai in exchange for a promise of better governance. >> once thing is to pave the way to transition between leadership. this will involve afghan forces assuming security responsibility within the next 4 years. >> we have determined afghans will be responsible for all

military and weapons operations by 2014. >> also on the agenda, money to support efforts to reach out to taliban members who renounce violence. >> the german government attached great importance to this approach and stand by our promise to make 50 million euro available over five years, 10 million this year alone. we are going to make sure this fund is effectively managed and implemented. >> he called on karzai to do more for the program. >> the office has new tools to combat corruption, and president

karzai issued a decree prohibiting nepotism. but we know much more work remains. >> this will be kabul's request to control 50% of aid, a move that will make the fight against corruption more important. i asked how realistic the 2014 deadline for security handover is. >> they are training afghan troops to take over, so they are hitting the target of huge numbers of new soldiers being created, about 6000 a month. where the issues lie are the quality of soldiers and whether they can take responsibility, and the afghans very much play a secondary role.

>> why is kabul entrusted with control of half the foreign aid when corruption has been such a huge problem in afghanistan? >> there is concern that huge sums are being squandered or stolen, reports that billions have been flown out of the country, legally, or illegally. but the decision comes from the fact that if you keep bypassing, the afghan government will not get stronger or more competent. they will remain weak. >> some are saying afghanistan is a lost cause. was this conference just for show? >> this conference was very carefully managed. not just for show, but there is

a feeling that the progress has to be showcased. >> in kabul, thank you very much for that update. we are taking an in-depth look at the situation later on with our in depth report. german later -- leaders have attended a memorial service in honor of the man who was to assassinate hitler in 1944 in a failed plan. they now celebrate every year. >> our pledge to serve germany and its freedom. the recruits at the reichstag symbolize the connection between the soldier and society at a

time when new demands are being placed on germany's troops. >> i hope when you return to civilian life, you take with you the fulfilling realization of having done your part for us, and we show you the gratitude we have shown your predecessors. >> financial constraints mean they will be cut in size, and the defense minister is considering making the armed services completely voluntary. >> there are good reasons for any choice. they have to make the organization more appealinh. >> but that costs money. the government needs to figure

out how to adequately meet their changing responsibilities. >> david cameron and barack obama have been holding talks at the white house over tensions with bp, whose ruptured oil well has caused the biggest environmental disaster in u.s. history, and there is also an investigation into bp's involvement with the release of the lockerbie bomber. more than 100 people died in 1988 as a result of his bomb. he might be the most unpopular company in america right now,

and it cast a long shadow over today's meeting, didn't it? >> it is the most hated company in america, even more than goldman sachs. but they called themselves by first names and it was an atmosphere of friendship. but bp was the dominant topic at the press conference, and especially thel ockerbie affair. they are building pressure to have a formal inquiry into the release of the bomber last year. the documents will be reread one more time to find out why this decision was taken back then. he made it clear he was opposed, against the decision a year ago. he still is, and thinks it is

the wrong decision. >> he does not want the government to get involved in their own investigation. will he lean on b.p. any other way? >> conerning the oil spill, he said of course bp had a responsibility. they had to clean up, to compensate people who lost jobs and money on the gulf, but at the same time he insisted bp could still be a strong company, because while there are jobs that depend on it, it is a big company, and tha is the point he tried to make. >> thank you very much for that update. straight over for some business news now.

some positive news in europe for a change. >> investors have confidence in europe's ability to manage debt. ireland and greece and one other had strong results today. the spanish government unloaded almost 6 billion euros in treasury bills despite banking concerns. ireland unloaded $1.5 billion in paper after seeing their rate lowered by moody's. greece, $2 billion in bonds. goldman sachs released disappointing second-quarter numbers. more on their numbers later, but here is a wrap-up of trading

action from the frankfurt stock exchange. >> the world waited for new numbers from goldman sachs, and they have been disappointing, the weakest since 2008. this shows there are still problems ahead for the banking section, and especially here in germany. goldman sachs has not been the only disappointment so far. ibm and texas instruments have been under expectation, so this all soured the mood here on the floor, and stocks went down under 6000 points. >> let's get a look at how stock markets ended the tuesday session. similar for the euro index.

new york and wall street, the dow in late trading, 10,230 right now and our currency versus the euro down just a tad, 28.86 u.s. cents. not making the grade. sources say germany has failed europe's bank stress test. tuesday, reports emerged that the real estate company owned by the german government is not healthy enough to withstand another crisis. >> germany's real estate company invested nearly 8 billion euros in greek bonds, and they say that is why it will not pass the eu stress test.

91 banks have undergone the test, and many are in germany. they are tested on their ab ility to withstand stocsk with at least a 6% capital ratio. early, only 4% was considered sufficient. it is unclear how much will be required to stay afloat, because risky securities will be spun off for bad bank assets. >> french air traffic controllers are beginning a one- day strike expected to disrupt flights at the two main paris airports, and many controllers are calling in sick. there are suspicions that the sick leave is aimed at

negotiating pay and working conditions. >> at spanish airports, a third of air traffic controllers have called in sick. passengers are less than sympathetic. >> they have a tough job, but they are not the only ones. >> they say that members cal led in sick because of stress, but authorities insist it amounts to a covert strike. >> it is almost impossible for so many people to be sick sumul -- simultaneously. >> air france expects 50% of paris short-haul connections to be affected. trade unions are protesting plans to merge france atc into a single european system.

>> tough contracts. >> ending weeks of speculation, joachim loew will renew his contract. >> now the uncertainty is over and loew is ready to look ahead. >> my team and i are very much looking forward to working with the german football association and the team. we had great fun at the world cup, and we look forward to the next challenge. >> he has signed up to work with the german team for 2 more years, together with the coach and team manager.

they have helped make the german squad into what it is today. fast, attacking, and a pleasure to watch. they are already bracing for the next challenge. >> now that this is over, it is our next priority. >> but he doesn't have much time to relax. a game aga denmark is scheduled for weeks from now. >> in cycling, a frenchman got the third successive victory in this year's race. alberto contador holds on to the overall yellow jersey. we are going to be right back with our in-depth report on the situation in afghanistan.

don't go away.

>> welcome back. they might not have a hard-and- fast exit strategy at nato, but they have a deadline. the approval was given to 2014 as the date to which afghan forces should be responsible for their security. they should cede control of provinces one after the next. the u.s. wants to start drawing down their forces next year. hamid karzai says he is certain afgan troops will be ready by 2014.

here's a look at what was achieved since the last conference, and all that still needs to be done. >> the conference lasted one day, but there were four issues to coever in that short time. the first was security. afghanistan's security forces need to be trained better and faster. 1000 police are trained to speed up the process. but that is not nearly enough. they described the program as a crash course at best. the international mission has proven to be unpopular, leading to the issue of troop withdrawal. the number of foreign soldiers is to be gradually reduced, starting in 2011.

the goal is to have afghanistan take over its own security by 2014. but the overall strategy must be dependent on the field. just how to handle the taliban was a debated topic at the conference. moderate taliban members are offered a way back to mainstream society. delegates in kabul have agreed to provide 600 million euros, but they warn the line between moderates and extremists is often blurred, and terrorists

could take advantage. they say government corruption was not discussed enough in london. afganistan is ranked among the most corrupt countries in the world. in kabul, they again insisted the u.n. must do more to stem corruption. >> opponents call the karzai election beset with fraud. the trade in opium remains one of the country's biggest problems. and next, how the poppy seed helps finance not just the taliban, but also some people in high places. the heroin trade begins in

afghanistan. the crop is 7,000 tons, valued at 2.4 billion euros, exploited to arm taliban fighters. but the drug trade is not fully of their making. >> my work sets out to show that even though the taliban may profit, in fact it is the government and regional leaders who profit the most. so why would the taliban have a benefit? it's far more widely dispersed. but they need profits from the drug economy.

local authorities can offer protetion from smugglers, or make sure poppy crops escape raids. amid karzai installed leaders into key positions. and he is now powerless to stop them using their offices for illegal purposes. >> the black market is closely tied. that means drug production and smuggling. president karzai needs support of these rulers, so he is unable to control their activities. >> while the international community pressures karzai to take action against the opium industry, complex relationships bar progress. >> that was evident last year

during the election process. there was systematic fraud, but the international community remained silent. >> afghan's drug trade further complicates security forces. >> one alternative to opium farming is the production of rose oil. the german aid organization has run a successful program in jalalabad for 7 years, and some farmers have shifted from poppies to roses. it is a lucrative business compared with many other crops. >> smell the roses. the scent wafts through this

office in bonn, where the german aid organization manages their campaign to replace opium with rose oil. 6 years ago, they cultivated poppies here. today, it is roses. warm during the day, cold at night. in these conditions, the plants generate large amounts of oil. >> you get high returns per hectare. it's great. the rose is also the flower of islam, with roots in the culture. >> but at first it was a hard sell. when farmers learned they would be involved in the whole process, they came onboard. roses are boiled in copper pots, and the oil is distilled.

the farmers keep most of the 8,000 euros generated. government is not involved. >> corruption often happens on the government level. as a consequence, we don't work with government agencies, but we keep them informed. >> the rules for the transfer are laid out. >> we do everything in writing. everything is documented, and everyone is clear about their documentation. >> the oil is sold to cosmetic and pharmaceutical companies. >> everything would be great if we could take ourselves out of the equation and farmers could

continue without our help. >> they want to be independent from the aid organization. >> that has been our in-depth report on afghanistan. thanks for watching, and stay tuned for more news and information. >> the weather for germany. partly cloudy skies and hot, 32-34 degrees celsius. rain forecast for the next couple of days, cooler for the weekend. elsewhere in europe, cloudy and hot through the mediterranean coast and central regions. now, here is the forecast for selected cities around the world.