in a city with a rich history dating back 1400 years, you might expect a lot of ruins. in the ukrainian capital kiev, however, ruins are not a witness to the city's past, but simply incomplete building projects. whether it's an abandoned sports hall, a rusting bridge, or a partly finished train station, there are more than 200 mere shells of buildings in kiev. for some, they are a blight to the city, while for others, they provide exclusive sites for unusual activities. actually, they should finish it, says this young man, but another part of me says, it's great to climb here.

more on that coming up later in the show. there's a stereotype of germans being law abiding and orderly. however, on the spanish island of mallorca -- often jokingly referred to as germany's 17th federal state due to the high number of tourists -- problems are on the rise. neo-nazis displaying racist tattoos and chanting xenophobic slogans are increasingly flocking to the beaches of the capital palma. while it's illegal in germany to perform the nazi salute or display any fascist symbols, there are no such laws in spain -- and these far right tourists aren't hesitating to take advantage of this loophole in the law. reporter: sun, sea, and sandy beaches. it's high season on the spanish island of majorca, popular with tourists from northern europe. but now the hawkers from north africa are worried. there have been a number of xenophobic attacks on the

island. ndiaye niang from senegal has been peddling his wares for years on the beach in palma. he has often been verbally abused. ndiaye: i wanted to sell a tourist something. he got angry and insulted me. and because i am an immigrant, i ran away. i don't want any trouble with the police. but i didn't like what happened. reporter: most of the tourists here just want to have a good time and enjoy their holiday on this stretch of beach popular mainly with german tourists. german beer flows freely. but now, right wing extremists have joined in. one incident occurred recently when german singer and party queen mia julia was performing. one guest used his mobile phone to film the scene. members of the white supremacist hammerskins waved a flag used by the german armed forces during world war ii. before they are said to have shouted, "foreigners go home," when a dark-skinned artist was singing. the audience reacted to this by

chanting, "nazis out." the hammerskins have long returned to germany. the state prosecutors on majorca are investigating the incident as a hate crime, but not as a racist act. could right wing extremists actually be welcome on the island? some of them have even settled on majorca. the owner of this bistro, holger apfel, is a former npd leader. after internal disputes, he quit the right wing party 3.5 years ago and moved to spain. he plays down the incidents. holger: the audience on majorca reflects society as a whole. i think things are heftier at village fairs and football matches and so on than they are on majorca. reporter: the locals would prefer to be spared such right wing extremists. natalia docolomansky lives in a tourist area. she says if the neo-nazis had

their way, majorca would be a german protectorate. everywhere she goes she sees stickers that she regards to be threatening. and also some very dubious characters. natalia: they raise their hand to give a nazi salute and sing. they have tattoos that we don't understand, but they look very aggressive. reporter: spanish law doesn't really protect people from right wing extremism. tattoos with nazi symbols can be shown openly here. the police can't do anything. journalist lorenzo marina has been observing the right wing scene for years. he says many things which are illegal in germany are tolerated in spain, and neo-nazis know that. lorenzo: the worst that can happen is that these people think they can do as they please and get away with it. that is very dangerous. it can lead to an increase in violence.

reporter: palma's newly-elected mayor now wants to introduce local legislation to ban right wing extremism. antoni: the fact that hatred, xenophobia, and violence are coming together in palma makes us ashamed. we will not tolerate this. and next time the police will react in a much stronger manner. reporter: in order to protect themselves, ndiaye niang and the other hawkers have developed their own strategy. ndiaye: we know when there are any nazis around. we warn each other. if we see one, we retreat and don't show them our wares. that is all we can do. reporter: ndiaye niang is disappointed that the spanish authorities don't take a tougher stance towards neo-nazis.

he can't understand that his work is considered illegal, but that right wing extremism is allowed. michelle: it's said that two things in life are inevitable -- death and taxes. except the latter has sometimes been an exception in greece. since the debt crisis, many greeks are fighting to survive financially. because taxes are at a record high, many individuals and businesses avoid paying them. as a result, the state loses billions of euros in taxes each year. but this is now all set to change with the rise of tax inspectors. reporter: when night falls in athens, tina papoiti and nikos tsepenekos start their patrol through the amusement district of plaka. the two inspectors are on the lookout for tax dodgers. their suspicions are aroused in this cocktail bar.

tina: there are no bills on the tables. reporter: it looks as if the owner is selling his drinks off the books. tina: good evening. we are tax fraud inspectors. could you please give me a bill for ten cents? reporter: each bill lists how many receipts were issued that day -- an important clue for the inspectors. many guests don't ask for a bill. and with vat at 24%, the temptation is great to pocket the cash. tina: no, that's not a bill, just an order. nikos: just 32 bills for the entire day? tina: let's have a closer look round. reporter: this is the second time the owner of this bar has been caught out. his fine is doubled to 500 euros. he won't speak to us while the camera is running. outside, some guests are

sympathetic. >> if we had lower taxes or the money was used for welfare, dodging taxes would not be good. but as things are, you cannot really blame the bar owner. >> we need more checks so business owners understand they have to give people receipts and pay taxes. reporter: next day, it is time to pay a visit to an antiques dealer in central athens. greek tv crews are already waiting here. a new law allows the authorities to close down businesses of re-offenders and expose them to the media -- all part of the war on the current ten billion euros or more in undeclared income every year. now, antiques dealer irina safela has been found guilty of several hundred euros undeclared income.

irina: life for small business owners here in greece is sheer hell. some days we sell nothing at all. we don't earn a single euro. but we pay high taxes, and then there are all the fines. it is a huge problem. reporter: her premises are sealed. now her customers know she has dodged paying taxes. tina: this is the best thing that we can do pursue them to be correct and don't violate the law. it's something that they are afraid of, because the fines are really not so big, that i was telling you about. but when they close for 48 hours or something, it's bad for their business. reporter: the ferry takes us to the saronic island of aegina. tina papoti speaks a number of different languages. she's the daughter of an air force pilot and lived in the u.s. and germany. there she found that most people

abided by the law. a good thing, she says. tina: living abroad, i saw that the countries that have this kind of mentality, it really works for everybody more. so, i got it from my family and i saw that it's really working. and i really hope that sometime in the near future, most of the greeks have this kind of mentality. because we just need a little organization, more. i think this is what we need. reporter: we arrive on the island. after a lengthy search, the inspectors find a small restaurant. most of the tables are occupied, but no bills in sight. we film with a hidden camera. tina: have you issued any receipts today? stelios: no, we do that later in the afternoon. every guest gets one. people just ordered. and i issued a bill, too. tina: only when we said we are tax inspectors. stelios: no, we always give our guests a receipt. look at the ones we issued

yesterday. tina: what use are they to me? reporter: the owner protests in vain. stelios: they don't care about small family businesses. my wife, my son, my daughter all work here. we only have one employee to wash the dishes. but we can hardly make ends meet. social welfare payments are enormous. but what can i do? i need to retire one day. reporter: the two tax inspectors know that for some of the people who receive a fine, it is a harsh blow. but when you look at the figures, it becomes clear that one in three businesses are guilty or tax evasion. and the government wants to get the message over. tina: now, maybe, they are just afraid, scared of us.

when we are still out there, every time, then sometime in the near future, they will get used to it. they will wait for us. they'll know we are here. so after that, maybe the next generation, there will be a change of mentality. reporter: actually, things are already changing. there has been a drop in tax evasion figures, but poverty and unemployment still remain widespread in a country with one of the highest tax rates in europe. michelle: an ice stadium, a bridge, and various residential buildings stand incomplete and abandoned across ukraine's capital, kiev, giving it the air of an unfinished city. construction came to a halt years ago after these projects ran out of money due to the financial crisis, and worsened by the ongoing conflict with russia. but, a group of so-called construction site pirates are

finding a way to bring some life back to these concrete skeletons. reporter: this was to be a sports and recreation hall with an ice skating rink in the south of kiev, but construction came to a halt years ago. the investors have fled. the site may be abandoned, but it's not deserted. a group of young people have made their way into the hall. they simply tell the watchman they have a permit, no problem. their leader oleg knows how to talk to security guards. oleg: sites like this are often very large, and the security guards can't be everywhere at once. that's good for us. reporter: there are plenty of choices for outings like this in kiev. experts have estimated the number of abandoned major construction sites around ukraine's capital at some 200. one is this unfinished theater academy.

olga balytska is an attorney and city councilor for a centrist party. she realizes just how much of a burden the unfinished buildings are for kiev. the skeleton of the planned academy stands in her electoral district. olga: on some of these construction sites, work stopped in the 1990's, after the soviet union fell apart. the chernobyl disaster put an end to other plans. and on top of that came the economic crisis. reporter: the crisis hit the transportation infrastructure especially hard. a subway station had been planned for under the academy, but it, too, is just a shell. the trains don't stop here. the young men at the ice-skating rink are going to do some rope jumping. they're here for the adventure -- not to steal the materials.

oleg: we want to do and see what's not allowed. forbidden fruit tastes the sweetest. reporter: in the early 1990's, work began on a new bridge over the dnieper. it's been rusting away for years, now. it would take over 300 million euros to complete -- money ukraine simply doesn't have. some say it's becoming kiev's new landmark. olga: i see this bridge as a monument to the city government's mismanagement. the construction could've been completed long ago. i hope they'll finish it some day. then we'll have a monument to corruption. reporter: the young adventurers are among the few who benefit from the mismanagement. the abandoned sites are a parkour playground. this urban wasteland stirs up some strong feelings. what would oleg do if he were mayor? oleg: i'd like to see everything completed.

but another part of me says, damn, it's fantastic to go climbing here. reporter: one of the favorite spots for climbers is this unfinished hospital. the building's shell is gradually crumbling. local politicians are calling for round-table discussions to find a solution. olga: the state and the city should deal with this and come up with a policy for how to handle unfinished structures. the city could hold a competition for proposed partnerships between the state and private investors. reporter: it's unlikely this solution would work for the expansion of the darnytskyi railway station in southeastern kiev. construction halted in 2010, when the ukrainian state railway could no longer afford the building costs. many privately financed buildings have also been left unfinished. they, too, attract their share of adventurers.

oleg and his group defend their perilous hobby. oleg: even if they tore this building down, the land would most likely remain unused. it's pretty hard to sell a piece of real estate in our city, so it's better if this stays the way it is, so people who know about the place can enjoy sunsets like this evening. reporter: to some, it's a monument to failed city planning. to others, it's a recreation spot. with a bit of imagination and daring, even kiev's construction ruins have something to offer. michelle: a model post-communist country, transformed by its membership to the european union. that is how hungary was once described. but in recent years, critics of the government complain that prime minister viktor orban is transforming the country from a democracy to an autocracy, one that is plagued by corruption.

nowhere is this more palpable, many allege, than in orban's hometown felcsut, where inexplicable windfalls have lead to mass protests. reporter: felcsut, the home town of hungarian prime minister viktor orban. the local residents have never seen anything like it -- their main street filled with demonstrators. >> it's a disgrace what's happening here in hungary. reporter: many hungarians have begun see the town of just 1800 inhabitants as a kind of breeding ground for shady politics -- in particular for viktor orban and his old school chum, lorinc meszaros. both came from modest backgrounds. meszaros worked as a gas fitter. orban went into politics. today, meszaros is also a politician -- he's mayor of felcsut.

he also happens to be one of hungary's wealthiest businessmen. on the way to the felcsut city council, reporters ask the multi-millionaire how he managed to grow his fortune so much faster than even facebook ceo mark zuckerberg. meszaros replies that he's just smarter than zuckerberg. andras varadi found out how meszaros uses his smarts. at one time, andras and his family made a good living as sheep farmers. they grazed several hundred sheep on state pasture land which they leased. andras: suddenly, the lease was terminated without notice. we had to sell off our sheep immediately. sheep farming was our livelihood. now it's all lost. reporter: the new leaseholder is meszaros. he uses his power to get more and more agricultural land in

hungary under his control. his connections with orban have certainly done no harm. small farmers like varadi had to get out of the way. in budapest, too, orban's friend has been active. he's said to have gained enough influence over the largest opposition daily to have it closed down. the reporters were out of a job from one day to the next. one of them, gabor horvath, is now with another opposition publication. he says the worst part of it is that all the revelations about meszaros and orban have had no effect. nobody is investigating -- the state prosecution is controlled by the government. meszaros has a completely free hand. gabor: it's obvious -- hardly anyone else is getting public construction contracts in hungary anymore. and meszaros is everywhere. he bought up the hotels around lake balaton. and tenders with eu funding are

formulated so he's the only one who could possibly get them. reporter: nepotism seems to be flourishing in orban's hungary. the parliamentary opposition is weak, but persistent. akos: i ask you, mr. orban, is meszaros, the mayor of felcsut, a relative of yours? i repeat, are you related to mr. meszaros? viktor: and if i understand you correctly, my answer is no. reporter: in felcsut, the mayor deals with pointed questions in a similar manner. lorinc: i've never counted my private fortune. i don't know how much it is. i'd have to sit down and add it all up and see how much this and that is worth. it's not so easy. gabor: anything goes in hungary.

all that matters is whether or not you have a good connection with orban. reporter: andras varadi isn't going to take it sitting down. he's joining the protests against the ever-increasing nepotism under orban. now, many more outraged people have arrived in felcsut. andras varadi has never seen this kind of solidarity before. michelle: more than 30 years ago, the beach in the irish village dooagh vanished after heavy storms -- and with it, so did tourists, hotels, and restaurants. but after a freak tide this spring, villagers now hope they can turn back the sands of time. reporter: the atlantic ocean can be very rough around the island of achill in western ireland. the locals say the sea plays an important role in their everyday lives. they are proud of the cliffs --

some of the steepest in europe -- and the beaches. and they are especially proud of this beach in the village of dooagh -- some call it a miracle. for 33 years, the beach had disappeared. then, a few months ago, it returned. before, there were only rocks and pebbles. in 1984, heavy storms had washed away the sand. the local residents were shocked. john: with all the rocks that you see there, it wasn't attractive. and people didn't come down onto it, you know. so, that was the difference. we were very disappointed that we weren't in competition with all these other blue flag beaches in achill, which there are five. reporter: at the island's tourist office, sean molloy und emmet callaghan refer to this as a historical event. the beach disappeared several

times in the past 200 years. but it always returned. photos from 1890 -- just rocks, but no sand. so how long will the sand stay this time? nobody knows. sean and emmet record as many images as possible. since the sand came back, the number of tourists has increased. sean: during the 1950's, 1960's, and 1970's, four hotels sprouted up, and lots of b&b's and restaurants and pubs, because people used to come down and enjoy this beach. but of course in 1984 when the beach went, slowly but surely it was the start of a decline of the village and a lot of those businesses just shut down. so, it's great to have it back now. reporter: roisin lavelle has run a small guest house opposite the beach for decades. she proudly tells new arrivals about the beach that has come back. she's glad, because when the economic crisis hit some ten years ago, she faced a bleak future.

now she plans to expand her property. the new rooms will all have sea views. roisin: last year was quite busy. this year is busier. and then for something like this then, it's nearly like saying, yeah, go ahead. this could be something that you could go on and on with. reporter: in times of trouble, the islanders on achill become a close community. they meet in the local pub. but they say a lot of the young people are moving away. still, john mcnamara and many of the others on the island hope the newly returned sandy beach will give achill a bright new future. michelle: for their sake, i hope the sand sticks around. that's it for today. thank you for watching. see you next time. ♪ [captioning performed by the national captioning institute, which is responsible for its caption content and accuracy. visit ncicap.org]

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