>> very warm welcome to the "journal" here on dw-tv. no letup in the korean crisis as china issues in the warning over a u.s. military exercise with the south. russian prime minister vladimir putin visits berlin with a vision of big trade and economic cooperation. and more pressure o europe's single currency as markets ask -- will portugal be next on the bailout list?

north korea has warned that joint u.s./south korean military exercises in the yellow sea planned for sunday could put the peninsula "on the brink of war." china, the north's sole major ally, also warned against any military activity, repeatingits opposition to the scheduled war games. p'yongyang has been holding its own war drills with in the south korean island it shelved earlier this week. >> south korean soldiers are on high alert, keeping a close watch on their counterparts across the border. on friday, signs of artillery fire on the northern side spread fears of a fresh attack, attackseoul said no rounds landed on territory. south korea had increased troop numbers after its military was criticized for what some called a weak response to the incident. it has also changed its rules of engagement to allow a more forceful response in future. two south korean soldiers and two civilians were killed in the

attack. the president has now appointed a successor for the defense minister who resigned on thursday. the former chairman of the joint chiefs of staff will take over the role. meanwhile, most of the island's residents have fled to the mainland. some say the recent events are a chilling reminder of the country's bloody past. >> it breaks my heart that a tragedy like the korean war is happening again during my lifetime. >> those who fled the island are now in temporary shelter. many say they will not return home. russian prime minister vladimir putin has called for the european union and russia to link up in a single free-trade zone. he put forth that idea here in berlin where he is holding talks with chancellor angela merkel on trade and economic issues. putin says an economic community with russia could ultimately lead to a free-trade zone or

even more advanced forms of integration. >> at the german chancellery, the russian prime minister again laid out his vision of a free- trade zone stretching from lisbon to vladivostok. >> a free-trade zone like this is a complicated project, but the idea should be allowed to rise and into a practical realization. so i called for negotiations on this to start as soon as possible. >> in a careful reply, chancellor merkel showed she is at least open to the idea. >> i think that is right. europe and russia our strategic partners. but the cooperation can certainly be expanded. >> but the chancellor emphasized that import tariffs and other trade barriers would first have to fall. russia still employs high import tariffs to protect its domestic car makers from foreign competition, for instance.

earlier on friday, putin met with german business leaders. they also support closer cooperation. [applause] >> all we can do, whether by investments, a show us that we have a common destiny, but also in the sense of creating an area in which we can strengthen trade and step back from behavior that is counter-productive. >> vladimir putin's ideas go beyond closer cooperation with europe. he suggested russia could be joining the world trade organization next year. [applause] >> for more on this, i spoke earlier with our political correspondent who follow us conference between the two leaders. i asked if this apparent dispute over russia's vision of a free- trade zone that would stretch across europe and russia has been settled. >> well, not really settled,

brian. chancellor merkel described the idea as an important vision for the future, but she did appear to pour cold water on an earlier by pointed out that russia has introduc tariffs and protectionist measures that german exporters struggle with, and another problem with the idea is that russia is also building a free-trade zone with cause extent and belarus, which chancellor merkel said made it more difficult, but she said the first thing russia has to do is make sure that it does going to world trade organization, and mr. putin believes -- repeated that he believes that will happen next year. >> what else came out of this press conference? >> both leaders talk about strengthening economic cooperation in a lot of areas, simplifying these other arrangements between the eu and russia, as one important area, and they seem to have got some sort of agreement on that. both leaders talked about the

possibility of a common currency, but as always at these meetings, energy came up, very importantly. the europeans' reliance on russian energy supplies, and they want russia to modernize its infrastructure. >> simon, thanks for the analysis and insight, as ever. simon young for us. >> as many thought possible, it is not just greece and ireland thth need a bailout. how many eurothe zone countries will? inquiring minds want to know. -- how many eurozone countries will? portugal is now being pushed to accept a rescue, andfter greece and ireland, the logic is that a quick intervention will lessen the likelihood that a bailout will become necessary in

spain. as europe's fifth biggest economy, there are fears that spain might just be too big to bail out and that a spanish crisis could possibly spell the end for the european single currency. >> traders on the financial markets continue to view the eurothe zone bailout's with skepticism. bond rates hit record highs as investors speculated on the credit worthiness of ireland, portugal, and spain. this month, the country's risk premiums, as shown by their 10- year bond yields have shown a steady increase. that means it is becoming more and more expensive for them to borrow the money they need to stay afloat. although the three countries are suffering high deficits for different reasons, their financial problems are seen as a threat to europe -- eurozone

stability. it is thought that the three countries have a combined debt of eight trillion in euros. the safety net is currently set at 750 billion euros, but analysts at the hamburg institute of international economics have suggested pouring another 500 billion euros or more into the pot to cover future crises. -- it is thought that the three countries have a combined debt of a trillion years. italy is also being targeted because of its high burden, though its economy is far more robust. with brussels opted to bail out troubled states rather than allowing them to default, investors are speculating on further such action in the near future, which is in turn causing more instability on financial and stock markets. >> for more on the uncertainty plaguing the euro and the eurozone rescue fund, we spoke with our correspondent and asked if the mixed messages european leaders have been sending this week have worsened the message.

>> there is no doubt they are exacerbating the situation. we are in a repeat of what happened earlier this year with grease. anything that any senior politician or economist said triggered a market jump or fall depending on what was, and there was total frustration in brussels on all institutional levels about some of the things being said, not least by the german chancellor, who is being accused of having triggered the irish crisis, even, by her remarks a few weeks ago about bondholders ought to be made to carry the accounts and put up the costs even further, and some people are actually saying the immediate crisis they are in now was triggered by her saying that. she then went on to say that the euro is the european union, and if one collapses the other collapses. all these messages are feeding into the speculative frenzy, which as we have just said, is now moving on already from ireland to portugal, so there is a sense of total frustration about people saying things that

are moving markets one way or the other, and now, people are openly talking about whether the euro can survive. is driven by rumor and counter- rumor, and it is making clearing up the irish mess even more difficult. >> on friday's market action, german shares fell on the final trading day of the week, amid ongoing jitters over the health of economies in southern europe. our correspondents and as the summary of the day's trading action from the frankfurt stock exchange. >> the shares were among those to help the dax recover in the course of this trading friday. the reason was that the stainless steel division is soon going to be restructured. also, the biggest steel maker of germany will present its newest earnings report early next week, and many people here are betting on strong numbers. the concerns about the euro, of

course, also worried traders on this last trading day of the week, but the dax does not look too bad on a weekly scale. it even ended the week a few points on the upside. >> in frankfurt, where we can stay for clor look at friday's closing numbers. the dax index fell by about 15%. euro stocks 50 index slipping by a full percentage point to close the friday session at 2736. in new york, shares traded lower in a holiday-shortened session. the dow jones finished lower at 11,092 points. on currency markets, the europe trading sharply lower at a value of $1.3244. germany's largest bank, deutsche bank, says it has finalized its take over the country's leading retail bank. shareholders have accepted an offer of 25 year rose per share.

it has the largest network of branch locations throughout germany, and deutsche bank expects the acquisition to help strengthen its business with private customers here in its lucrative home market. that is your business update now. back to brian. >> that is a lot to debate at the german parliament. they have passed a budget for next year. germany has weathered the global downturn better than most countries, and the deficit looks set to be less than originally anticipated, but net borrowing is still at a high, and criticism against the government saying germany puts itself at risk by guaranteeing eurozone sovereign debt. >> the german finance minister had only a little bit of good news for people concerned about germany's budget deficit. new borrowing will be lower next year than previously expected. he originally, the government had forecast a shortfall of 57.5

billion euros, but now, it expects to need to around 48 billion euros. public debt is still set to reach new highs, and it remains to be seen what effect bailouts for ireland and other eurozone countries could have. the finance minister says he is not willing to make predictions. >> the speculation and uncertainty we are seeing on international markets right now do not contribute to economic and financial stability in germany, europe, or the world, and that is why i'm not going to add to it. >> the opposition accused the government of lacking european support for key reforms. >> they have not secured a financial transaction tax or stronger banking supervision, and they have not answered fundamental questions about the future of the euro. >> germany is expecting clarification on the financial aid package for ireland this week in. if the your safetytyet has to be widened, there are likely to be implications for germany's deficit as well.

>> stayed in germany, new research shows a marked increase in cancer rates near a nuclear waste storage facility in the north of the country. the social administrator of hanover says the have doubled the national average of leukemia cases among men, and cases of thyroid cancer among women tripled between 2002 and 2009. many residents believe the blame lies with tens of thousands of barrels of radioactive waste stored in the old salt mine there. >> the russian parliament has for the first time officially blamed joseph stalin for the world war ii massacre of 22,000 polish officers. in a rare combination of the soviet dictator, the state passed the resolution saying documents of secret archives show that stalin had indeed ordered the mass executions. communist deputies opposed the declaration. for decades, soviet propaganda blamed the nazis for the crime

appeared at the end of the cold war, moscow acknowledged the killings were carried out by stalin's secret police, but this is the first formal statement indicating the soviet leadership in such explicit terms. >> a new exhibit in the german city combines works by two very different american artists. duane hanson, who died in 1996, is best known for his life-size human cultures, while the photographer gregory kurds and has made a name for himself with images of american homes and neighborhoods. the combination offers a serial take on the american dream. >> the exhibition does not open until saturday, but it looks as if visitors have already begun arriving. that populate this basis if they were real museumgoers. baffling lifelike, these cultures could almost have originated from these pictures. photographs.

the works are connected by the bleak, that is on it, and by the emptiness of life. >> what you notice right away is that the people are sitting very still, and through this expressive sense of inner emptiness. at first glance, it is pretty eery. because you do not know what they are doing there or what has happened to them. >> like here, a dining room, dinner on the table. who are they waiting for? it wouldn't have an. inside, a young mother and her newborn -- a wooden cabin. they draw the viewer into the daily despondency of american life. it is easy to imagine her in having this neighborhood depicted in one of the photographs. both documents of aspects of

american reality. >> stay with us. i will be right back with an in- depth look at the upcoming election

>> elcome back. eegypt is holding a parliamentay election this sunday. the government has rejected charges the boat will not be free and fair. the country has refused to allow international observers to monitor the poll. there are also concerns that the ballot could, like previous elections, be disrupted by violence. some media outlets, bloggers, and opposition groups have criticized the government harassment and censorship in the run-up to the ballot. >> egypt -- a land of ancient history, beset by some very modern problems. the country has an increasingly young population with every third inhabitants under the age of 15. most egyptians have only ever know one man in charge.

that have been in power for a genetion but have shown no signs of wanting to pass on authority. emergency laws have been in place which allow exceptional powers since 1981. critics say those powers allow the president to stifle political dissent, and nobody doubts that his national democratic party will win the election. >> we look forward to free and fair elections monitored by the electoral commission and egyptian civil society. the biggest possible participation of voters has been assured. >> the electoral commission, however, is a province of the interior ministry. this came about as a result of a constitutional change backed by a referendum three years ago. that makes the election fast in the eyes of the opposition parties. and they are putting their hopes on this man, the former head of

the united nations atomic watchdog. he has called for a boycott of the upcoming vote. several parties support him, but not all opposition groups will be ignoring the poll. the outlawed moslem brotherhood is running candidates to achieve by democratic means their goal, turning egypt into an islamic state. to get around its official ban, the brotherhood is fielding candidates of independence. they complain they are being unfairly targeted by the authorities and harassed by the security forces and the police. >> the muslim brotherhood is under siege. several of our rallies have been disrupted by police and more than 1000 members have been detained. >> there are 508 seats up for grabs in sunday's elections, and 64 of those reserve for women, a

first for egypt. yet, perhaps just a small concession from egyptian leaders, who looks set to come out of the vote as powerful as ever. >> earlier, i spoke with a representative of the german institute of global and area studies, and asked if she thought the election would be free and fair. >> well, it is very likely that these elections are going to be rigged. in fact, reading has already started in the run-up of the elections. the question has been, of course, why hold elections if they are going to be rigged anyway? the answer lies in the nature of the egyptian political system. this system is an authoritarian system, but it is a liberalized form of authoritarianism, and that means that there is a certain space of political freedom and political pluralis however, this space is severely limited, and as soon as its borders are crossed, this is met with the power of the space.

and it is very typical for such a system that there is a mixture of repressionñ and liberal legacies such as targeting the elections. >> is there likely to be violence as there was in 2005? >> well, there have -- opposition candidates have been bullied, have been threatened, and even some of their supporters have been beaten up. >> just how strong is the opposition in egypt? >> what is interesting here is that the official legal opposition parties -- they are very weak. instead,the most important and the strongest t position is the illegal muslim brotherhood. the reason for that is that the state has systematically week and the political parties -- systematically weakens the political parties. tteans they have traded their political voice for

economic rewards, and this has, of course, bird and their credibility amongst the people. >> what role exactly does the muslim brotherhood play, and why is the government so very afraid of them? >> repression on the muslim brotherhood has been increased. especially since 2007, and then again now in the run-up to the elections. the reason for that is that the brotherhood is actually the strongest opposition is force in egypt. the biggest opposition as a bloc in parliament, even though they had a weird legal status. officially, they are banned, but in officially, they are targeted. the reason why the region is so afraid of the moslem brotherhood is that it is the only political force which it has not been able to corrupt. in addition to that, the brotherhood is not only at political actor, but also a social and religious organization that runs a dense net of social services, and that provides the brotherhood with a

big grass roots space, and that, of course, frightens the regime in a sense. >> thank you so very much for the analysis. >> secularists, radical islamists, and members of the muslim brotherhood, which is moving into the political mainstream in spite of its oppression, all have been using global technology and social networking sites to organize demonstrations. one group is also planning to use the internet to keep tabs on any attempts to rig the vote. >> he rarely slows down to take a break, and he never goes anywhere without his cell phone. he uses it to planned and organized political opposition in egypt. his work has pitted him squarely against the regime, and for that, he has often ended up behind bars. on april 6, 2008, the 29-year- old use facebook to call for a general strike as a show of solidarity with striking workers in the north of the country. news of the facebook page spread

quickly, and soon, he had thousands of dollars. the group is fighting for more democracy, and they rely on social networking sites to spread their message and avoid censorship. >> what is important is that they did not forbid everything. it is impossible for us to go on the streets of egypt. it is a red line for us. activities on the street are dealt with with great violence. yet, facebook is allowed, and independent press is somehow allowed. it is like a vintage in orders to get out anger. facebook, 20 is a means for that. -- facebook, twitter is a means for that. >> the hold workshops to explain how to use social networking tools, how to plan a spontaneous demonstration on facebook, how to organize activists using a text message, and how to plan an escape route at a protest. the government does not ban websites, but security officials keep a close watch on any activity.

the facebook group is planning a demonstration, officials are aware. >> sometimes, they arrest people. there were a couple caught last week. sometimes, they close in on us, and then we change our plans spontaneously and is something surprising. >> the activists who took part in the april 6 demonstration are getting ready for the elections. thousands of them are planning to stand in front of police stations on sunday so they can gather important information -- in front of polling stations on sunday. it will keep track of who was allowed to vote, where there are irregularities, and where they have seen violence. all of the data will be posted on the website. members know their actions could put them in danger. >> we tried to protest peacefully, and date threaten us with physical violence and more aggression, but they will not break us. we have a goal, and we will not give up. >> they're determined to take to the streets on election day, despite the =isks involved.

>> that is our "in depth" as each of prepares for sunday's upcoming parliamentary elections. thanks for joining us. -- as egypt prepares for sunday's upcoming parliamentary elections.