>> welcome to" here on dw-tv. the irish prime minister announces 15 billion euros in the cuts in tax cuts intended to restore the nation's financial stability. and south koreans survey the damage as the u.s. promises its support against any possible loss korean attacks. -- any possible north korean attacks. the irish government has unveiled a four-year austerity

plan of spending cuts and new taxes required to qualify for a bailout package of some 85 billion euros. ireland called for aid from the european union and international monetary fund to overcome the debt crisis triggered by massive bank losses and a drain on the government funds. the plan was described as a road map for the stone age. >> demonstrators took to the streets of dublin to protest spending cuts in -- and tax hikes. meanwhile, the prime minister held a press conference to outline the government's new strategy for ireland's struggling economy, concerning what many in the country had expected. dublin needs to save 15 billion euros, and plans to achieve that through cutting spending and raising taxes. new levies on property and drinking water are also in the

pipeline as well as cuts to social welfare and the minimum- wage. >> and of course, central to all of this is not just the cuts in spending or the increase in taxes, but it is about growing the economies, identifying those sectors of our economy which are proving to be competitive, which are insuring that we are learning our way in the world as we move to a balance of payments next year. >> but confidence in the ability to leave ireland through its economic woes has plummeted. >> the present government has proven itself to be totally incompetent. >> meanwhile, many irish are loath to see their country dependent on aid from other eu members and are still getting used to ireland's transition from california to tiger to -- celtic tiger to beckett --

economy in crisis. >> not really any surprises. most of it had already filtered through through the past days. only slight surprise as the disputed corporation tax of 12.5% stays at the same level, against the will of big eu countries like germany and france who wanted it raised. it is safe to say the irish have been a bit stubborn about that. >> how confident is the government of getting this plan through parliament? >> they seem very confident, but i think it is a bit of a showpiece. he is really in trouble. he is a lame duck at the moment. his government has only a majority of three votes. his coalition partners have already said they might walk out of the coalition. two indepdent members of parliament have already

withdrawn their support. also, his own party yesterday in their parliamentary party meeting came close to mutiny. the only thing sure at the moment is that brian: -- brian cohen is not going to be the man to lead his party through the economic crisis. measures have been hammered out in cooperation with the imf. the imf people of the year for a couple of days now and had apparently a major influence on this recovery plan. >> thank you so very much. austerity measures in portugal have led to that country's first general strike since 2007. with transportation's shut down, schools closed and services curtailed in much of the country, with unemployment at a record high, protesters are calling for more government

spending on jobs instead of more job cuts. >> the 24-hour general strike left planes grounded and rubbish piled up. the country's two biggest unions called the strike, but many portuguese think their economy is too weak to recover by itself. >> i think most portuguese people are aware that it would be better to accept help. >> if we continue like last year, the indecisiveness is bound to have a negative impact on portugal. it will drive unemployment up. >> but there are fears that the country's sovereignty will be undermined if it does accept an emergency loan from brussels. it is very likely ireland's fate will be closely watched here. >> in britain, the government stripling of university fees has led to student protests -- the

government's tripling of university fees. students took to the streets to protest the raising of fees to some 11,000 years. police say at least 15 people were arrested. two people were injured. student leaders say new protests are being planned. meanwhile, german chancellor angela merkel has repeated her call for a permanent mechanism to resolve the eurozone debt crisis. she faced some strong criticism. social democrats and greens have called her planned cuts to services antisocial. >> germany appears to have the -- emerged smoothly from the crisis, and although the economy appears to have bounced back, merkel is keeping the economy

titan, speaking to a strict diet of budget cuts and targetedt investments. >> we are not saving at the expense of the future. instead, this budget shows we are saving for our future. our budget is for more child care places for education and research, and for more investment. that is what our budget is about. alabama but the opposition are critical of the chancellor's government. they accused the conservative liberal coalition of facing in the wrong places, but fitting industry and the well-off instead of protecting the socially vulnerable. >> these policies are not made in the public interest but are instead policies, proposals, and ultimately laws that will deepen the divisions in this society. >> merkel has also garnered criticism for the top line she has taken over ireland's economic woes. critics say her policies are

creating a divided europe. >> these are not the easiest times for europe. but i still say our support for europe's core values should never be doubted. >> but whether the voting public are convinced by the government's policies we will know when they go to the polls early next year. >> the feeling among businesses in germany is that the future is looking pretty bright. >> rising optimism indeed. business sentiment here in germany has continued to rise. the closely watched business climates index was unveiled on wednesday and showed the reading for november soaring to the highest levels since the german reunification 20 years ago. the index rose to 109.3, showing that the upswing in the german economy is gaining more and more strength. the index is based on our

around 7000 monthly survey responses from managers in the manufacturing, construction, and resell manufacturers. >> earlier, we spoke with the president of the eagle institute and asked why german managers continue to be so confident about the future. >> it comes from germany's exports. we participate in the rise of the emerging countries, and surprisingly for some, it comes from the economy. investment is very strong. this is the largest contributor to the growth in germany this year. actually stronger than germany's exports. the reason for it has to do with the crisis. this is a turnaround of the world development.

after many years where germany's savings were exported by the banking system to other countries and made it possible to have a time of soft budget constraints where money was available for each and every thing, now, there is a reconsideration. the banks do not dare to go to north america to buy structured securities or decrease to buy government bonds. çthey seek safer investment opportunities, and they seem to find them in germany. the mortgage rates in germany are the lowest in history, and the result is that people use the loans which are offered to them to build houses. so we are in the beginning of a construction boom and firms invest also the construction of factory buildings is shooting up. these things contributed demand inside germany. in the second place, they would

increase the capacity of german industry and lay the foundations for sustained long-term growth process. >> shares in german software giant s.a.p. fell about 1% after a federal jury in the united states ordered them to pay $1.3 million to its american rivals oracle for copyright infringement. oracle had argued they owed as much as $3 billion because one of its former business units illegally downloaded oracle software in documents, thereby infringing on dozens of copyrights. s.a.p. admitted liability for the actions but argued the copyright damages should be no more than $41 million. they say they will not pursue all available legal options to reduce the financial liability. investors were disappointed in the verdict.

for more on that and news that sent shares higher this wednesda we have this summary from frankfurt. >> people on the trading floor do not believe that the money s.a.p. set aside for eventual damage payments will be enough. the stocks were among the biggest losers this wednesday. the dax itself instead climbed significantly, to a stronger than expected -- thanks to a stronger than expected business climate index and also thanks to a stronger than expected american economic data, which gives hope that this upcoming thanksgiving weekend, many americans will start to go shopping and spend a lot of money. >> in frankfurt, where we can stay for a closer look at market numbers, and the dax index clawed back some of the gains it made in recent days, finishing nearly 1% higher. the euro stocks 50 index lock in a more modest gains, but

finished higher as well. in new york, shares their traded higher on positive jobs data. the dow trading at this hour and 11,186 points. you're treating just a tad lower at a value of one u.s. dollar -- $1.3324. the court-appointed trustee for the recovery of assets stolen by bernie madoff is suing ubs, accusing the swiss financial firm in participating in his bond scheme. ubs faces 23 counts of financial fraud and misconduct. ubs actively assisted the ponzi scheme by administrating so- called feeder funds, which allowed madoff to be the only source of information for valuing his financial products. madoff pleaded guilty in 2009 to running the most massive ponzi scheme in history and is currently serving a 150-year prison sentence. that is your business update.

>> the u.s. aircraft carrier group has left the naval base in japan heading for korean waters, the u.s. forces say the joint exercise with the south korean military had been planned well before the shelling of the south korean island by the north on tuesday. the nuclear-power u.s.s. george washington is carrying several planes. on wednesday, the bodies of two civilians were found on the island. two south korean marines were also killed when dozens of artillery shells hit the island, most of the striking military base. >> angry south koreans at this demonstration in the capital took to the streets to demand retribution for the north korean attack. irst attack on civilians since the korean war. was clearly an invading action against the republic of korea and our people. >> in communist north korea,

authorities appear to be playing down the attack. wednesday's editions of the state-run newspaper led with headlines of a visit by state dictator kim jong il to a factory. a report toward the back of the newspaper blamed the skirmish on the south. >> the south korea profit regime should well know that the korean army response to provocative buyer with a merciless shower of fire. >> these people experienced that shower a fire firsthand. they live on the small island. they fled to the mainland in the wake of the shelling. some say they will never go back. 03 and fired more than 50 artillery shells at the island -- north korea. the south korean military says it will increase military presence in the area. the south has also suspended deliveries of humanitarian aid to the impoverished north. >> hundreds of egyptian christians have clashed with police over government plans to halt the construction of a church. at least one person was killed.

dozens were injured. police fired tear gas at christians protesting work at the site, which had previously been approved by authorities. the official egyptian state news agency said some 3000 people took part in that demonstration. christians make up about 10% of egypt's population and say they are increasingly being subjected to governmentb persecution and mob violence. now this -- the united states is getting ready to celebrate thanksgiving on thursday. each and every year, the highlight of that holiday is gathering around the family dinner table, but for millions of turkeys, it means ending up on the table. their only hope -- a presidential pardon straight from the white house. this year, president obama saved two lucky turkeys from the chopping block, just one day before the big national holiday. the annual pardon has been a white house tradition now for decades. there he is. i will be right back.

the situation in the age of austerity in europe. more on that coming up in one -.

>> welcome back. europeans are increasingly angry about the deep spending cuts that are part of what is being called the age of austerity. wednesday sought a general strike i of portugal, for example. greece has been seeing regular anti-government strikes. also on wednesday, greece was joined by ireland as the second eurozone nation to announce deep spending cuts and taxes. then, of course, there is spain, a country on the edge, but being labeled too big to fail because it is too big to be bailed out. rich nations like germany want to help for now to ensure that

the euro remains a solid currency and that the eu remains a politically stable union. >> the crisis surrounding the euro seems to become sickle. markets get jittery, prompting politicians to step in until the next crisis triggers the process again from the start. ireland has accepted bailout from brussels. the money will come from the european stability facility. the 750 billion euro fund set up by leaders as a safety net for euro countries running out of cash. the existence of the luxembourg- based facility was meant to send a signal that disaster can be avoided when it comes to the crunch, but such political window dressing was not enough to save ireland. its deficit level at 32% of gdp is unprecedented in europe. dublin was pushed so far into the red by the huge costs of bailing out its failing banks.

now, the irish finance minister must save 6 billion euros in the coming year alone. >> we are working on the budgets. we need to pass this budget. >> but the crisis has pushed the irish governnt over the edge, and passing the budget is likely to be one of its last major actions. many fear ireland could go the way of greece. it was the first country to be rescued with eu-guaranteed loans. grieg's directed their protests to budget watchdog's from the international monetary fund and the eu. while dublin was dragged down by its banks, greece simply lived beyond its means. greece's rescued millions are being paid out in installments. recently, athens had to admit it had not reached predicted revenue targets. >> if greece fails to fulfil certain retirement or reach certain targets, we will need to talk about it. >> we are starting from a higher

point that what we really wanted, but we fully respect the targets and intend to take any measures that e necessary. >> the talk is getting tougher with in the european union, but politicians also want to preempt further crises by radically reforming the eurozone. the german chancellor wants to cap the claims in times of crisis. >> we decided to keep in mind certain points for our cris response mechanism. one of those is the role and responsibility of private bondholders. >> that set alarm bells ringing in the portuguese capital where the interest rates on state bonds raised. if investing in states brings added risk, investors will demand an enhanced return on their investment.

>> of portugal's 24-hour general strike against the government's austerity policies largely paralyzed the country on wednesday. trains and bus services were canceled. factories came to a halt. rubbish went uncollected. even soldiers who have no legal right to stage work stoppages organized a day of reflection. while many take to the streets, others are simply taking their chances overseas. >> the dream of faraway places. that means just one special place in lisbon -- commerce square. it was once the commercial center of portugals empire, and it is where explorers set out on their journeys. like those explores, these young women see their future elsewhere. >> they want to conquer the world.

now young people -- we feel that we have to conquer our own world, going to other countries and choosing other types of possibilities. i of portugal, it is so difficult to get a good job. >> the brain drain has become a subject for portugal's modern artists with the country portrayed as a leaking swimming hole. some see little alternative to immigration. >> that does not mean we cannot come back, but our main concern is how we can manage to make ends meet. >> tried to raise a family, doing grownup things, and we will not be able to because we cannot pay for education of the child. we cannot pay a house. we cannot pay anything. >> sarah is a journalist. until a few weeks ago, she was producing articles and films in new york. she was there for two years and

only returned because her visa ran out. she has a job in lisbon but wants to return to new york as soon as possible. >> i used to have an amazing life. i lived very well. every time i go to the offer, to be met, i was there. i really enjoyed the life. >> those are luxuries she can hardly afford in portugal. her friend is just managing to keep her head above water with temporary jobs running up to 700 euros a month, but usually less. rent ane is 300 euros. >> no, i cannot go on like this. there are no solutions on the horizon. >> many fear the crisis will cause even greater problems for portugal's economy. there is a lot of talk about whether it would be better for the country to accept eu help or even pull out of the common

currency. >> i do not know if it is going to be better if we save ourselves. it is like being on the seas. we are going, going, going, but if there is a bigger boat that can take the little boat and put it inside, maybe we are going to travel quicker. i do not know. that is what might happen with portugal. >> sera hopes that ireland's accepting a bailout could remove some of the pressure on portugal. but the country will not skate austerity measures aimed at reining in its budget deficit. >> people are buying only the bare essentials, but it is going to get worse. soon, value-added tax will be at 23%, even for the most basic essentials like milk. >> in the traditional bars in

their neighborhood, sara and ana teresa often hear about the good old days. there was a lot of immigration from portugal in the past, too, but many believe the situation is much worse now. many in the older generation believe accepting economic help would damage their national pride. >> i do not think portugal needs help from other countries. we can manage alone if we all work together. >> the euro is a prison. a prison. most young people have a different view, but many agree that traditions can help the country deal with the problems of the present. >> it is a way to remember the old times, and some people believe that the old times were the good ones. some people believe that remembering the old times make us believe that the new times are going to be also good. >> that hope, regardless of

whether their future is in portugal or elsewhere. >> that is all for in -- for our "in depth." thanks so much for joining us.