>> low and welcome to "the journal." >> thank you for joining us. >> as we look at our headlines this hour, the european finance ministers as fears grow of ae+ greek default. no halt to the slow of refugees out of syria as troops moved against another stronghold. a volcanic eruption in chile means air travel misery from south america to australia. euroan ion finance ministers have been meeting in brussels to discuss all options related to steering reset of the grip -- debt crisis.

solutions have emerged. germany would let private lenders to share the cost of another bailout but they're facing opposition. earlier, standard and poor's downgraded greek debt to its lowest level warning that any restructuring would be considered a default. >> a second greek bailout looks inevitable and the euro group chairmen would like all options on the table. germany is lobbying for private creditors to shoulder some of the burden by giving greece more time to repay their debt. >> a role for the private-sector is one element in the additional measures. that is what we are discucuing in detail today. >> they would like banks and insurance companies to put 30 billion euros towards a new bailout by excepting delay repayments. they have support from some

quarters but the ecb is resisting the plan. they said that forcibly delayed payments would amount to default which could topple the european banking system. >> the ecb is not in favor of restructuring. we should exclude all concepts that are not purely voluntary or that have any element of compulsion. >> the meeting offered at the ministers a chance to clarify their positions. the final proposals are due next monday. >> let's go to our brussels correspondent. how much support is germany getting for their proposals for a second bailout for greece? >> not overwhelming support but the majority of the finance ministers are keeping quiet and they are waiting to see how this will play. germany has support of the french, the finnish, and some support from the luxembourg prime minister who is head of

the european group. luxembourg is not clear. what this tel us is that there's not an easy equation. this is a question about what the market will bear. what is expected of greece and their creditors. signals from the german delegation that if they don't get clearance from a new transfer to greece which gives more responsibility on the private bondholders, they will not be able to sell anything and that could make the crucial meeting of the finance ministers very very difficult. >> we know the minists are discusng all options but what real options do o ey really have? >> basically, they want to throw more money and greece or you go along the path that the germans insist upon for presentation reasons as well as financial reasons which is to ensure that the private creditors, the bondholders are forced to extend

the line of credit to greece. they don't want payback on their commitment until much later. berlin insists that if you exnd that line of credit you will save in the near term about 30 billion euros worth of credits to greece. others say, those opposed, say it is not as easy as that. that would be a partial default on the side of greece. whether it works or not and, in terms of perception and the markets, it could lead to another attack on the euro from speculators and of course cause more damage. this is a difficult equation. >> thank you for your analysis from brussels. turng to syria where government forces are continuing large-scale operations against the opposition. troops are pursuing rebels throughout the countryside after consolidating their control of the town. reports say that soldiers are moving against another

opposition stronghold. hundreds of people have been gathering on the border with turkey preparing to cross over if the army advance continues. turkey has taken in thousands of refugees who are fleeing the violence. >> they managed to flee the fighting but they're not safe yet. convoys of refugees streamed towards the turkish border. many have been traveling for days and are nearing exhaustion. >> they have destroyed our houses and attacked our children with tanks and planes. they have even cut off our water supply. >> why a did they send these criminals? why? >> the refugees only have limited supplies and it will not be long before they run out of food. this footage shows tanks thought

to be entering a town. the army is going from town to town scouring the region for opposition supporters. refugees' reports of numerous arrests but despite a drastic and deteriorating conditions, many do not want to cross into turkey. they will -- they are afraid that damascus will label them enemies of t sta andhey wi not b bab to return. turkey is classifying the rising refugees as guests and not as refugees. a signal that they should not expect to remain in turkey long term. >> i will have more on the situation in syria coming up in a half-hour. canada has become the latest nation to recognize the libyan transitional council as the sole representative of the libyan people. germanyave the organization for more recognition on monday.

there has been a surge in fighting with rebels edging slowly beyond the western city of misrata towards tripoli. >> this is a war of attrition. in a few weeks since the rebel forces took misrata, they have made few advances. the fighters have taken up positions outside of the embattled city. the insurgents are trying to push west towards a coastal town bringing the battle closer to gaddafi's stronghold in tripoli. >> we will the be it -- liberate this area and capture gaddafi. we are yearning to be martyrs. >> they face more supply shortages. one worker said could take weeks to repair this generator. >> the refinery will stop producing and who knows when we can resume work. we have to find spare parts to

fix it. >> the fuel shortages will only compound misrata's problems. the city has already been hit hard by months of fighting. >> the german foreign minister guido westerwelle has warned that negotiations are the only way to resolve the peace process in the middle east. speaking at a press conference in ramallah, he said that any unilaterala call for recognition of a palestinian state would be counterproductive. he called on palestinians and israel to make concessions in order to get peace talks back on track. >> in jerusalem, the german foreign minister called on the israeli prime minister/ to show greater willingness to compromise. he said that israel should stop building new settlements in the occupied territories and resume dialogue with the palestinians. egotiations were also the main message in ramallah.

the palestinian authority's prime minister use the chance to propose palestinian plans for you in recnition. >> what is it that is required that could bring an end to the occupation? we want a country of our own. >> guido westerwelle said that a ununateral bid for recognition could harbor many problems. >> the german government thinks that unilateral steps could be very counterproductive. this is our opinion and it underlines the opinion in the name of the german governmen we think that negotiations should be the right way. >> he warned that further escalation of the conflict could create a very dangerous deadlock between the two parties. >> iraqi security officials say at least 8 people were killed

today after gunmen assaulted provincial government offices. the attackers were reportedly wearing iraqi uniforms and they stormed the building and took about 45 employees hostage. iraqi forces supported by american troops were able to free the hostages after a gunbattle. this is the latest in a resurgence of attacks. we have news of the financial fallout of the e. coli outbreak. >> we have seen hundreds of tons upload is destroyed. farmers will be getting some money back. the opinion has approved 210 million euros for emergency aid. the financial aid willo to growers of cucumbers, tomatoes, lettuce, zucchini, and sweet peppers, withdrawn from the market after the outbreak in northern germany in late may.

the bacteria has killed 37 people so far. spain, france, poland, slovakia, voted against the package after demanding more help for farmers producing a wider range of fresh vegetables. belarus is getting help from china. the government has confirmed that the chise bks will be lending the country over a billion dollars to finance industrial and infrastructure projects. the deal is unlikely to contribute much towards belaru'' efforts to deal with the deficit, it could help them to prop up economic activity at a time when they are cutting down on spending. that is forcing citizens to resort to increasing desperate measures to make ends meet. >> this internet video shows demonstrators blocking a road the belarus-police border last sunday evening.

the government as recently banned the export of foodstuffs and petrol. the products get good prices and the other side of the border. there are scarcities at home which have led to the new regulations. what did these images do not show is how the police forcibly ended the protest. >> we have an obligation to our neighboring countries with regards to transit permits. when this kind of situation arises, it will be iestigated as matter of administrative and criminal law. >> the president says he will strike hard to suppress further protests. after 17 years with a planned economy, the country's on the brink of bankruptcy. the ruble has been sharply devalued against the dollar. food prices are spiraling. many goods have disappeared from the market altogether.

minsk cannot ask -- to minsk has asked for support without ccess. >> on to the markets. despite ongoing concerns about greece, the major markets rallied to finish with strong gains. our correspondent sent us this from frankfurt. >> the crews continued to be in the limelight with the downgrade by standard and poor's creating a new situation. despite all the discussions on the net steps by the politicians, people here on the floor are convinced that in the long run you probably will not get around a default because reec is just tting on t 00 high of a mountain of debt. the prices in the end, the dax gaining considerably because there was good news from the economies of the u.s. and china. they are both important customer countries for german exporters. >> we can stay in frankfurt for a closer look at the numbers. the dax closed 1.7% higher.

across the atlantic on ll street the dow finhed at the top of the hour and managed to lock in gains of about 1%. the euro trading this hour at a value of one u.s. $40 4 cents. despite efforts by the chinese government to bring inflation under control, the cost of living and the world's second- biggest economy rose by 5.5% last month representing its steepest climb in nearly three years. the chinese central bank has increased its interest rates four times in four months. food prices and the could have continued to climb aggressively at a rate of 12% in the month of may. a combination of drought and flooding in various regions of china has exacerbated the

situation. analysts are expecting two more interest-rate increases this year. volcanoes are causing more problems for air traffic, this time in the southern hemisphere. >> the cloud continues to cause chaos for air travelers in south meri ands faway as australia and new zealand. the volcano began erupting 10 days ago sending up a plume of ash that is more than 10 kilometers high. strong wind has been carrying the ash around the southern hemisphere. >> the ash hangs in the sky over the valley. the army has handed out masks a to residence as a caution. sometimes they have had to be evacuated. the volcano erupted 10 days ago? experts say it could remain active for months with far reaching consequences. the wind is blowing the ash from chile across argentina out into

the south atlantic. 10,000 kilometers to the east, it is disrupting air travel in australia and new zealand. thousands of passengers are stranded in airports. >> i have all connecting flights. >> natural disaster. there's nothing that can be done about it. >> passengers might have to put up with it for some time. the civil aviation stories it will be a week or four air traffic returns to normal. >> we are back after a short break with an in-depth look at syria. don't go away.

>> syrian army forces are

continuing their massive operation in the northern part of the country. the government ss 120 troops were killed by armed rebels while the activists say a brutal repression is under way. syria is on to a large sunni majority that is increasingly calling for more representation. the reserve and is growing towards the ruling elite. we look at how political and economic power in the country is divided and some of the flashpoints of the protest. >> these people have abandoned their homes leaving in fear for their lives. thousands of serious have fled to turkeyey, running scared from the crackdown by the assad regime. the uprising began in mid march in the south of the country. tensions escalated after security forces arrested and tortured several youths force

plane anti-government graffiti. images were only seen on video posted online. foreign journalists are needed -- are banned. the protests of gained momentum and spread across the country. demonstrations erupted in homes and in some suburbs of the capital. the center of damascus and aleppo remained relatively calm. they are home to the beneficiaries of the economic growth, a new middle class that has come out and protested in support of the assad regime. the strongest supporters are the villages minority that the south belongs to. -- are the religious minority that the south belongs to. they have the most to lose. they say that reprisals from the city majority -- they fear

reprisals from the sunni majority that they rule over. many do not know which side they should be on. the stance is propagated by iran. syria is an important toehold in the region. damascus is a vital ally against israel along with lebanon in gaza. iran is supporting a sock in his fight against his own people with weapons and know-how. -- iran's supporting president assad in his fight against his own people. earliethis month, tens of thousands of people took par in a demonstrators tossed in a demonstration, the largest number since it began. -- tens of thousands of people

took part in a demonstration, the largest number since it began. >> syria has been wracked by military coups. parliamentary institutions have been weak. when the father of bashar al- assad gave up power -- seized power, pro-democracy activists began leaving the country in droves. many of them found asylum in britain which is now home to a large exile community of syrians would like to see their home country become a democracy. what's down with the -- >> down with the assad regime is the chant outside of the syrian embassy. >> they will do anything to shut our mouths. and we don't have weapons. we're just shouting. >> this woman arrived from syria

a few days ago. she does not want to give her name. she fears reprisals against her husband. she describes the atmosphere there after friday prayers. >> if you walk down any area, you will find in the corner men stand with guns or groups of men with sticks or buses of men waiting. >> the repression has it very close to home. >> -- has been in prison. then there were ny that were put down. >> this man goes to the protests as a journalist. he says that president assad's

days in power are numbered. >> the regime's prestige will collapse. that will encourage people to the fact the -- people to defect. >> this show is broadcast live by satellite. the colleagues have been following the uprising in the middle east. they regret that iran is supporting syria. that support must end, say the protesters. they want the west to do more to isolate the assad regime. >> we're happy to be joined by a journalist has been reporting from the inside of syria for years. thank you for joining us. how much is the syrian government in control of the country and the military right now? >> it seems that in the north,

we have reports of mutinies in side of the army. there had been soldiers that affected and had joined the protests. i would thiis crossed into turkey. his cerinly a danger and a threat to the regime. there might have been some kind of syrian benghazi which means that the regime controlled by the protesters and this is what they tried to fight off. they're trying to restore control in the north. this is why there have been the major military force. >> how much is syria at risk from the divisions we have seen? >> the probability for sectarian divisions is definitely there because syria is a multi religious societynd side of e securityorce the majority of the soldiers are cindi -- are sunni. the protesters are saying that

they are united in a matter which religious they belong to in their fight for democracy and liberty. -- the protesters are a sign that they are united no matter which religions they belong to. this could turn into some kind of into religious vlence in tis of turmoil like we have seen now. >> the government says the opposition is armed and attacking their troops. is that true? >> the opposition is claiming the protest is peaceful and on armed but it seems that the demonstrators cannot control every citizen who was taken to the streets. it might be that people are just fed up with the violence by the government and that they are taking of some arms. this would definitely be a catastrophe for the protest movement because it would confirm what the govnment is saying, namely that they are fighting off armed gangs and terrorists. the demonstrators are trying to keep their protest peaceful.

>> what is happening in the days and weeks ahead? >> well, i dare this protest movement turns into a violent insurrection with the government troops. there might be more violence and maybe further war. or, it will turn into a peaceful as -- revolution that gas weight with ehelp the mile cssesn damascus and those that have not joined yet and with the help of splits inside of the army that we have seen right now. and with the international community asking for bashar al- assad to step down. this might add to the regime change but so far we are far away from that. >> thank you for joining us. >> with that, we wrap up "the journal," for this hour. thank you for joining us.

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