anchor: hello and a very warm welcome to "focus on europe" -- taking a look at the individual human stories behind the big headlines. i'm damien mcguinness. and this week we have a special program for you, focusing on the greek debt crisis. the greek entrepreneurs hit hard closed banks. latvia's message to greece? we've done it, why can't you? and in spain, the boom is back, but not for the young. the greek crisis has become an incredibly emotive issue: i can't tell you the number of times i've seen a friendly chat almost turn into an angry row as

soon as greece is mentioned. some say greece should be helped more. while others argue that taxpayers in other countries shouldn't have to support a corrupt and inefficient system. either way the key player here , is germany the biggest , contributor to the bailouts. but berlin has lost trust in athens, and many german voters feel insulted by the anti-german rhetoric. as one german man said to me the other day, we give them money, and they call us nazis. but whatever the political tensions, many germans themselves still want to help. >> the greek-german athene elementary school in berlin is throwing its annual summer party. the event is overshadowed by the ongoing greek crisis. many of the families here still have close ties to their home country. they get regular updates from friends and family. >> companies are going bust, people are on the brink of financial ruin. it's very upsetting.

>> stylianos kolomoutzakis has lived in berlin for more than 10 years. according to media reports, greek-german relations are at rock bottom. but he doesn't agree. >> i've never experienced any problems. people are very sympathetic to us greeks. >> restaurant-owner alexis vaiou hopes they remain so. he grew up in bremerhaven and wants to continue living there. but he also wants to help the greeks. >> we're planning to introduce a care package project in greece. the initiative is called die tafeln. germany is a wealthy country but it also looks after needy people. the project makes sure they get a bag of food every day so they have something to eat. >> he's about to fly to greece to recruit volunteers, open a base there, and talk to supermarkets about donating food.

>> meanwhile in hamburg, for the last two years hinrich stechmann and his team have been collecting donations and medicine for people in greece. his colleague kalliope brandstätter is currently in athens, looking for families in need of support. >> the german public is happy to help. many germans worry that the government's financial aid doesn't actually reach the greek people. >> but kerstin bock knows her contributions arrive. she's been sending care packets to a greek family for two years now. >> when i went on holiday to greece, i saw how much the population is suffering from the crisis. that's why i decided to do something. >> she frequently visits greece

and is always glad to see how families there benefit from people's care packages. >> kerstin bock hopes her care packages will help the family through difficult times until they're back on their feet. >> i think that all the family wants is to be financially stable again and they hope their fortunes will turn. that they won't need to rely on care packages from germany any more. >> but until that time comes, kerstin bock will continue to do what she can to support them. anchor: of course, the main long-term aim shouldn't be for greece to become a charity case but rather to find a way to get , the country's economy back on its feet. the problem is that the longer it takes for political leaders to hammer out an agreement, the worse the situation gets. closed banks are taking a terrible toll on greek

businesses many of whom are , getting desperate. >> the lights are on, and business is continuing at this athens lighting firm. it's been in the trade for four decades. but right now the future is not , looking so bright for fanis gallis and his team. is there a light at the end of the tunnel for greece? >> i'm not optimistic. i think europe has had enough of us. if there is no final deal it wouldn't surprise me. >> gallis has 43 employees left. he's laid off 60 people over the past five years, just to stay afloat. he orders components from various countries for making his lamps, including one in austria. gallis says the two companies have worked well together for decades. now he's behind with his payments because he can't make money transfers abroad. the austrian firm is delivering anyway, giving him time to pay. but how long can that continue?

>> it's crazy that banks should close in a free society. it's just chaos right now. >> the greek government clamps down hard on companies that don't pay their taxes or insurances. if gallis doesn't keep up with those payments, he would quickly find himself in court. >> take another company -- yorgos and thodoris koukoulas sell tires from germany. they import them in bulk. their livelihoods are now under threat. >> we can't give our customers credit anymore. they have to pay in cash. and even that's difficult. >> the koukoulas brothers supply german tires to garages all over athens and its suburbs. one of their customers is andreas akrivios.

he depends on these imported goods. if he didn't get the tires he'd have to close shop. he says his customers are also worried about the future. >> anyone who was planning to buy something in the next few months is going out and buying it now while the products are still to be had. >> we find the next customer to come to the koukoulas brothers agrees. his motorbike needs special tires. there's no telling whether they'll be around in the future. so he's buying them now while he can. >> it's like the market is in a deep sleep. it'll take a miracle to bring it back to life now. and in any case things will , never be like they were. >> no one denies that more jobs are needed and the greek economy needs to grow again. but how? if many employers are themselves in trouble and don't even know if they can survive. >> you can sense the chaos everywhere. we have no idea what the future

holds for greece. >> this is a very critical situation. europe and greece need to finally come up with a solution. if things keep going like this, it will hurt everyone. >> if the lights are to stay on and the doors remain open for business things need to change, , and soon. anchor: right now it's greece that's being seen as the e.u.'s economic basketcase. but five years ago those very , same words were being used to describe latvia. i was living there then and the main story we covered constantly was the ecnomic collapse. but unlike greece, latvians did support the incredibly painful budget cuts. at the time many said they were , mad. but today latvia's economy is in fact one of the fastest growing in the e.u. wages though are still lower than in greece. so many latvians are not too

keen on bailing out people richer than they are. >> black, strong, and tasty - that describes the beer that aigars rungis brews. for the past 10 years, he's run a small brewery in the latvian town of valmiera - with great success. booming sales are the reward for all his hard work and commitment. >> i was scared to death, honestly, because i had very big bank loans. i had very big investment loans, and i had no money left myself. but the idea was that we really believed in our product, in our taste of beer, and we looked for every small possible opportunity to improve our situation. >> just a few years ago, his company nearly folded. the 2008 global economic crisis hit latvia especially hard. rungis could see how bad the economy was by the fact that his sales were down by 20%. latvians were drinking less of his beer. his brewery would not have survived without support from the european union.

>> my strategy was keeping to the high-quality beer, and one opportunity we decided to use - we started to invest in even higher quality beer. and then we started to use subsidies from the latvian rural development agency. when we invest, let's say, one million euros, we get a half-million in subsidies back, so it was a very good time to invest. >> he wants to show us where the money went, so he takes us to his brewery. on the way, he tells us that to get out of the economic crisis, latvia adopted strict austerity measures. it cut pensions and balanced its national budget. but it also got millions of euros from brussels for infrastructure. his hometown of valmeira built new roads, squares, and bridges. he doesn't understand why greece doesn't take advantage of these possibilities. >> my advice is to use all the

opportunities, all the positive opportunities what europe offers. because it is possible to get investments, it is possible to get good business partners. europe is really a very big market. so really to use all these positive sides what europe could offer. >> he's not the only one who thinks that way. many latvians have little understanding for greece's demands for ever-new bailout packages. >> i think the greeks were really irresponsible with the money, especially the funds they were loaned. they had every opportunity and plenty of time to get themselves out of the crisis. and we here in latvia have set a good example of how it can be done. >> they've always had much higher pensions, better social security benefits, and they even

get a 13th monthly wage. we got rid of all that here. >> greece sets a bad example for all the other countries that are struggling. the message is: don't pay back your debts. that would apply to spain, portugal, and also us here in latvia. >> we're back at rungis' brewery. he shows us the new brewing coppers, where he brews his beer according to an ancient recipe that calls for it to age for a month longer than with other methods. his brewery produces nearly two million liters each year. he employs 100 people, and it's likely he'll be hiring more. >> i'm from valmiera so it's great i can work in my hometown. i've been doing this job for six years, and i have no reason to leave the country in search of a better job. >> valmeira has its little

employment miracle, despite the financial crisis and a sluggish economy. aigars rungis says latvia's past as a soviet republic is part of why it's successful, unlike greece. >> latvians are little bit like cats, because we always know how to fall on the legs. for the last 20 years probably, latvians are crisis professionals, so for us, the next economic crisis, which was a global crisis, was just for us to get ready how we can overcome it. so we were always positive thinkers, what we should do to overcome it. >> rungis ends his workday after nearly 12 hours. and of course, he does so with a glass of beer, fresh from his own brewery. like many latvians, he's very happy to be a member of the european union. anchor: one of my all-time favorite beers that. the question of austerity is very divisive. should you save or spend your

way out of a crisis? what do you think? let me know susan fraser got in touch about last week's report about the lonely policeman on the scilly isles, who was looking for a colleague. she said she tried to bribe her way in to the police force there by sending homemade cakes to no avail. they're obviously incorruptible susan. do keep those comments coming. here in germany, a lot of people i talk to are very skeptical about greece's governing far left party, syriza. but when i talk to spanish friends, the reaction is very different. like greece, spain was hit hard by the financial crisis and developed its own large left-wing anti-austerity movement whose members were delighted when syriza got into government in athens at the beginning of this year, promising to end the e.u.'s demands for austerity. but since then syriza has ended , up with even tougher austerity measures as the price for another bailout. this undermines the radical left in spain as does the fact that , the spanish economy is growing again. but young people say they're still not seeing the benefits.

>> thanks to visitors from all over the world, barcelona has been witnessing an economic upswing in the last 5 years. there's no trace of recession anywhere to be seen. >> tourism is a cornerstone of the spanish economy and has definitely helped it recover from the recession. >> the cheapest rooms in the majestic hotel cost 350 euros a night. >> we're fully booked at the moment. >> this suite costs two thousand euros a night. the crisis didn't pass the majestic by. but the hotel's owners took the opportunity to invest in renovating their premises - rather than saving. >> the renovation work was finished by 2013.

then the guests started returning and tourism recovered across the city. much to our satisfaction. >> but many hotel owners feel the city authorities have failed to see the bigger picture. >> the city needs to ensure the city is kept clean and to maintain infrastructure in top condition so that tourism is kept afloat. >> like many in the tourism industry, santiago martin is one of the winners of the spanish financial crisis. 18-year-old joan is one of the losers. he works illegally in a hotel for 700 euros a month. he could be sacked without notice at any time and has no social security. >> what i'd like is a real job, the proper position like my parents had. but they don't have that any more. >> joan wants to improve his prospects and is planning to study engineering as well as keep on working.

>> jorge is a history graduate. he was unemployed for 3 years and saw no hope of ever finding work in spain. he's now started training as a pilot because, he says, demand for pilots is growing in china. >> most locals don't benefit in any way from tourism. just the hotel-owners. >> the economic upswing comes at a cost for those at the bottom of the ladder. >> that is always the way it goes. it's the poor who pay the highest price. >> josep monge owns the 'via veneto' - one of barcelona's most renowned restaurants. he started out here as a waiter 50 years ago, working his way up and eventually taking it over. he's critical of the government's economic policy.

>> i don't think you can say that enough is being done when you see how many people are unemployed. >> salvador dali used to be a regular here. nowadays, via veneto's customers are wealthy tourists and business people. josep monge knows a few who managed to recover from the crisis. >> it takes a lot of discipline. you have to be aware of what the crisis means. it's not easy. >> spain's economic growth is still shaky. basically, tourism is the only sector that's in good shape. that's good news for barcelona. but many feel the city has been turned into a visitors' playground. field home -- few of whom think about the toll tourism takes on locals.

they have to put up with the hordes of revelers; overpriced apartments and groceries; pollution and illegal tourist accommodation. all local residents want is for stability to return to their lives and they want the , politicians to help this happen, despite the austerity measures in place. but they're losing hope. >> the rich are getting richer, the poor poorer. the middle class is disappearing. g.d.p. might be back on track but that doesn't help the workers. on the contrary. the crisis has not gone away. no way. >> across the social spectrum, many agree with him. >> things might be going well now, but they won't necessarily stay that way. the crisis taught us that.

it's a cycle. >> that is a lesson that spain has learned the hard way. anchor: but finally to poland - traditionally an enthusiastic member of the european union. i can remember when i lived in poland in the early 90's how excited people were at the prospect of joining the e.u. after a painful history of foreign oppression, for many poles e.u. membership meant stability. during the 90's, suddenly language schools were full of people, determined to ditch their russian, and learn english or german instead - ready to head west to work the very minute the borders came down. which many dead. but as the e.u. struggles to deal with the greek debt crisis, is the excitement about the european project wearing off? >> the skies darken over one of warsaw's popular beaches on the river vistula. young people flock here on summer evenings. the beach looks across to the

capital - a city that has changed with breathtaking speed in recent years, becoming a modern european city. the polish people have long been fans of the european union, but the enthusiasm is now less widespread. >> the e.u.'s heyday has passed. the whole thing is in decline now. major powers like france and germany who want to dominate everything are failing. >> the e.u. has lost some of its value. it's not able to solve the challenges we face. >> these are the first major problems that the european community has faced. we'll have to see whether it survives. this is definitely the start of a new chapter in its history. >> in 2004, poland became part of that history joining the , european union. it defied the reservations of some western powers, who considered it too big and too

poor to be part of the club. and four years later, a new prime minister made it clear, poland wasn't finished yet. former prime minister: in we 2011, want to join the eurozone. that will be a challenge, but we consider it realistic. >> that deadline is now four years overdue. warsaw has undergone an economic miracle thanks in part to e.u. , funds. poland has received more funding from brussels than any other e.u. member in the last decade. new stadiums, subways and museums have sprung up as a result. the entire infrastructure has been overhauled. but the people continue to pay with zloty. by adopting flexible exchange rates, poland has overcome the economic crises of recent years. and public support for joining the euro has halved. the finance ministry is now run by a young investment banker. he takes a pragmatic and a very confident approach.

prime minister: the eurozone is quite a different place today than it was 10 years ago. there are aid mechanisms, financed by public money. the eurozone is constantly changing and we want to know who we're entering a union for life with before we celebrate the wedding. >> has the euro or even the e.u. itself lost its appeal in poland? the country's pro-european president was voted out of office in replaced by a young may, eurosceptic. >> we thought we had to earn our way into europe. we work hard, obviously for our own gain. but the kind of privileges that greece is now seeking to defend we can't even dream of. >> jan komasa is part of a new generation of polish film directors. he's discovered his country's soul by delving into the past. his latest film warsaw 44 - an

action-packed drama on the warsaw uprising. >> this one event in the second world war continues to this day to impact the identity of many young poles. >> it was the younger generation at that time that rose up against the nazi occupiers. 200,000 poles paid with their lives. >> the film projects a longing for a world, a unified europe, where poland's freedom would be guaranteed. the european idea. director: we still have an inferiority complex. there's nothing we'd like more than to be able to feel stronger. we don't want to be self-important, but we do want to feel we're part of a strong e.u. >> back to the beach. in 1944, the polish insurgents

crossed this river to flee the germans only to be arrested on , the other side by the soviets. the 20th century was not kind to poland. today, 84% of poles associate europe with freedom and security. a bulwark of strength that most poles hope they can continue to rely on. anchor: so it looks like poland is not going to adopt the euro any time soon. but the hope is that when or if the e.u. solves this crisis, it could come out of it stronger than before. never let a good crisis go to waste as the expression goes. that's it for today. thanks very much for watching. do feel free to get in touch anytime with your thoughts and comments on twitter, email or facebook. but in the meantime, it's goodbye from me. and look forward to seeing see you next week, same time, same place.

[captioning performed by the national captioning institute, which is responsible for its caption content and accuracy. visit ncicap.org] steves: a selection of ferries make the 50-mile crossing between helsinki and tallinn nearly hourly. because of the ease of this delightful two-hour cruise and the variety a quick trip over to estonia adds to your nordic travels, pairing helsinki and tallinn is a natural. stepping off the boat in tallinn, the capital of estonia, you feel you've traveled a long way culturally from finland. its a mix of east and west.

tallinn's nordic lutheran culture and language connect it with stockholm and helsinki, but two centuries of czarist russian rule and nearly 50 years as part of the soviet union have blended in a distinctly russian flavor. fins and estonians share a similar history. first, swedish domination, then russian. then independence after world war i. until 1940, the estonians were about as affluent as the fins, but then estonia was gobbled up by an expanding soviet empire and spent the decades after world war ii under communism. when the ussr fell, estonia regained its freedom, and in 2004, it joined the european union. tallinn has modernized at an astounding rate since the fall of the soviet union. its business district shines with the same glass and steel gleam you'll find in any modern city. yet nearby are the rugged and fully intact medieval walls, and the town within these ramparts

has a beautifully preserved old-world ambiance. among medieval cities in the north of europe, none are as well preserved as tallinn. the town hall square was a marketplace through the centuries. its fine old buildings are a reminder that tallinn was once an important medieval trading center. today it's a touristy scene, full of people just having fun. through the season, each midday, cruise-ship groups congest the center as they blitz the town in the care of local guides. like many tourist zones, tallinn's is a commercial gauntlet. here there's a hokey torture museum, strolling russian dolls, medieval theme restaurants complete with touts, and enthusiastic hawkers of ye olde taste treats. woman: [ laughs ] steves: but just a couple blocks away is, for me, the real attraction of tallinn -- workaday locals enjoying real freedom and better economic times.

still-ramshackle courtyards host inviting cafés. bistros serve organic cuisine in a chic patina of old-world-meets new. and just outside the walls, it seems there's no tourism at all. under towering ramparts, the former moat is now a park, perfect for a warm afternoon stroll.

ceiling panel from the number one reactor using a remote controlled crane. the cover prevented the disburse l of radio active materials into the atmosphere andee