>> hello and a very warm welcome to "european journal" coming to you from dw studios in brussels. it's good to have you with us, and here's a look at what we have in the show -- why italy's oldest bank is facing collapse. sellout -- how an egyptian investor is transforming a swiss village. and why spanish street musicians have to be on guard. first up, italy.

the oldest bank in the world was founded in siena in italy some 500 years ago and was a cornerstone of the town hospira spirit he and fortune for centuries, but its managers got involved in risky speculation, and now the bank has to be bailed out with taxpayer money. if you have ever wondered how it must of felt when entire countries faced insolvency because their banks had collapsed, just look at what is happening in the city of siena. >> siena seems peaceful and in order when viewed from the 100-meter bell tower that rises high above the city. once, it had many towers. building one was how a family demonstrated its power. in 1419, after a political quarrel, this family was expelled from the city. it's palazzo was confiscated and made the seat of the first bank

in the world. for 500 years, it contributed to siena's affluence. that ended in 2012 when the bank ruined itself with an expensive merger and risky financial derivatives. the bank president had to resign . the public prosecutor is investing bank practices. several former managers are under house arrest. >> unfortunately, we were the site of one of the biggest financial speculations. now this money is gone, and we are sitting on a huge mountain of debt. the city of siena is not only hard-hit, it is impoverished. >> a painful blow for once-a rich siena. through a foundation, the city

was the bank's biggest shareholder. hefty dividends provided plenty of money. >> it was easy to walk across the piazza delle comput to ask the bank foundation for money. money was always forthcoming -- lots of it and fast. no one had to think about additional revenues for the city or reducing outlays, so siena never had to budget. >> the blogger and book author calls the alliance between politics and the bank the system in the shadow of the bell tower. he had always ruled the city, he says, in accordance with printable's all too whole. >> everyone extorted each other and schemed to get the money of the banks. and you avoided making enemies, especially within the democratic party that govern here for generations.

and that likes to present itself as a moral authority in italy. >> a blog has repeatedly accused politicians and bankers of mismanagement. he says they are to blame for the city's huge debt. >> with all the money from the bank foundation, the city would not have had to take taxes and fees from its citizens. we could have lived tax-free, but the money was spent prodigiously, and now we have to pay off the debts with the highest city taxes in all of italy. >> siena's hospital is one of the best in central italy and was run with money from the bank. now that money is gone. the renowned musical academy faces the same situation. the foundation is no longer a

sponsor except on the poster. the bank has stopped being a patron in siena. and it's the same in sports. the basketball team has been italian champion eight times. now without its bank sponsor, it may lose its license. the situation is similar for the football team. the bank has cut off its funds as well. sports fans in the old city are frustrated. >> we thought our bank was solid and had no problems spending these amounts, but we have learned a painful lesson. >> they just want support from the population. where do you get it in italy? in the stadium when the home team wins, whether that is in football or basketball. >> bread and circuses was a

successful strategy for a long time as sports fans now critically admit. >> the bang crash annihilated billions. they have to have gone somewhere. they cannot just vanish into thin air. >> many people in siena want to hold people responsible. even if they know that will not make the debt burden disappear >> when bulgaria joined the eu, many were hoping for a fresh start for the political system, but with the five years after the collapse of communism, many bulgarians complained that the country is effectively still run by oligarchs and former

communist party officials. when a media oligarch was due to be appointed head of the domestic secret service last year, that triggered a wave of mass protest against corruption. >> everyone in sophia knows jesse and her mission. each morning before school, the 16-year-old demonstrates against the government. she wants to put an end to corruption and nepotism in her home country of bulgaria, the poorest country in the eu. every day starts the same way -- with hundreds of people shouting "resign" in front of the parliament building. at the rear entrance, well shielded from the protesters, the politicians are arrived in their chauffeured cars. >> politicians only think about how they can line their own pockets. they don't think about the

people, and that angers me. as a citizen, i feel it is my duty to protest. we demand his land finally be governed appropriately so we can stay and live here. >> one blogger is documenting the ongoing protests. the demonstrations take laced early in the morning to allow people to go to work, school, or university afterwards. >> i want a fundamental change in bulgaria's political culture. i want politics with integrity and made by decent, honest people. >> she supports the protests however she can. she runs the student television station and also looks after the demonstrators facebook page, showing the world the nature of the peaceful protests, which

began last summer. >> we felt more like a society. it's very important not to be isolated. still, they are a society. they are together in this. >> school is out at this technical high school. time and again, she has tried to convince her fellow pupils to join the protest, but most of them are not that interested in politics. jesse -- desi has had a long day, and her father is waiting for her at home. he is a chef and has afternoons off. her mother is still at work. philip nichols off is very proud of his daughter and supports her activism. sometimes he even protests with her. "i have often thought of

immigrating for her benefit to give her a better future. sometimes i provoke her and say i will pay her to study abroad were ever she wants, but each time, she intimately refuses. >> i love oak area. i only want to vacation abroad to get to know other cultures. i'm staying put. i want things to change here. it's the only way. >> on the wall hangs the photo that made her famous across bulgaria. demonstrators had attacked him, and his nose was bleeding. she took pity on him. >> i said, "take care of yourself" and he told me the same. >> we are not allowed to ask the police what they make of all of this. officers from across bulgaria have been brought to the capital. during the day when protesters are at work -- the prime

minister and his deputy. >> in recent years -- >> the economic crisis has hit the eu's poorest country especially hard. one in every three people is out of work here. that's why 33-year-old samuel took heart in the antigovernment protests last summer, but now he feels it's a lost cause and has given up. he and his family have decided to leave the area. the decision wasn't easy, as

they have created a life here. his wife has a university degree, and samuel is and i.t. specialist. he has a steady job and is currently working on his second university degree. he would prefer to pay taxes to another eu member state like germany or the u.k. >> you are paying money to a political system that works they'll -- that works better. maybe it's not the best political system, but it works. the bulgarian political system is -- i don't even know how to explain it. the level is too low for a european country. >> some will leave the country. desi plans to stay. she is still hopeful things will change. tomorrow morning, she will be back demonstrating again, as she had for seven months, demonstrating for a better

bulgaria. >> snow-covered mountains, refreshing lakes, and cozy chalets. too many people, the swiss alps symbolize the picture-perfect holiday destination. the swiss used to be proud of that image. but lately, more and more ski resorts in the alps have joined in the race of attracting wealthy tourists, and that means they started building bigger hotels and wider slopes and set up gigantic snow cannons. also in formerly pristine areas. an egyptian investor wants to turn a small village into the most luxurious resort, but his project is controversial. >> a village in a valley, surrounded by dramatic mountains . it is draftee and shady but one of a kind. this swiss alpine village is sweet -- straight from a picture book. shingled houses, and magnificent baroque church, sleepy alleys,

and simple hotels. the ski area is an insider tip for aficionados and nature-loving families. there is no high tech here, no champagne. nothing chichi, and many people like that. >> it's homey here. the people are very friendly, as is the service in the pubs. this is a family skiing area. >> i can imagine that at some point i will no longer come here so often. >> that's because the old one will soon be history, replaced by a resort that takes luxury to access -- excess. six's hotels, 42 the things, a conference center, and a deluxe golf course. switzerland's biggest tour is in project is being built. the heart of the resort -- a

five-star alpine chalet. the interior is global chic, imported from the far east and tested in singapore. the michelin-star cook in the restaurant is specialized in asian delicacies. in the middle of switzerland, no one claims it is authentic. it is this man's baby. the egyptian billionaire who made his fortune with mass tourism on the red sea. switzerland is his second mainstay. he bought the grounds at a bargain and has already invested several hundred million euros, but on his scale, it's a modest project. >> when everything is built, we will still be very small. this is nothing compared to my

other destinations. there are 1500 residents. if it grows to 2500 or 3000, that is still nothing. on the red sea, we already have 20,000 residents, and that's not so big, either. >> of course, more guest mean the slopes will have to be expanded. this ski legend is on a pr tour to make his sponsor's plans appetizing for international journalists. they want to merge two skiing areas and that 14 new lifts and lots of snow blowers. there will be something for every taste. >> what we will need here are sunny ski slopes, simple slopes for families. we need the safari-style skiing experience. >> the new resort for the superrich will guzzle vast amounts of water and electricity. same nature conservation lists.

and that in times of climate change and melting glaciers. >> when you are, you know that this little mountain cannot stomach it. the plans are too big. neutral rain is being open, vast tracts of it, and nature will take its revenge. >> the construction boom in the mountain village has many side effects. this nursing home with 22 residents, most of the more than 80 years old, has been hit very hard. once, its location was idyllic with a lovely view. but that's over now. the operator of the home want to leave the building as soon as possible. >> it had a fantastic view. to the south, we used to see the church, but no more. in the east, we have that mountains, but they are gone, too. in the west, see for yourself --

there are buildings. we will not even talk about the north. >> and yet, at first, more than 90% of the village residents voted for the project. real estate prices are rising, and businesspeople are investing. young people are moving in instead of away, so opinion remains divided. >> it's great for us. we can make deliveries. there are more jobs. people have a purely positive effect on the region. >> it's too big. a little too big. otherwise, it's good, but i think it's too big. >> but hardly anyone in the village dares express doubts. he has the status of a rock star or even a savior, and he hates criticism of his resorts.

>> the army is gone. that means fewer and fewer jobs. without this project, in 10 or 20 years, everyone here would be old. about jobs, the young people will not stay. the village will turn into a retirement home. is that good? >> the village doctor disagrees strongly. he says that has always lived well from tourism without ostentation. >> it was a town for average tourists with normal budgets. a place for schools or groups, for those freestylers from northern europe who come and break their bones. it had its own kind of charm. of course, that has been destroyed now by this oversized resort. >> luxury resort competition in the alps begins a new round.

ever bigger, more magnificent, and more expensive. no one knows whether the concepts are still timely and will even turn a profit. >> for three years now, people in spain have been taking to the streets in protest against austerity measures by the government. tensions have been running high, lately. more and more people are not willing to accept further cuts in the field of education and health, but the conservative government has had enough of the mass protest and is introducing assembly bans in public spaces. in the capital madrid, the crackdown is even affecting street musicians. >> the streets of madrid are a tough beat. competition is fierce. the musicians, foreign and

spanish, are crawling all over each other. times are hard and everyone needs money. among the musicians is the duo called potato omelette. by trade, she is a piano teacher, but she cannot get by on what she makes giving piano lessons. there are easy going sounds are technically illegal. they do not have the official permits needed to perform on madrid streets these days, and to get it, they had to audition at madrid's cultural center. >> is humiliating to have someone judge whether you are good enough to play in the streets. the principle of the streets, of course, is survival. if nobody gives you money, you are better off staying at home.

>> suddenly, the ones who do not have a permit are illegal, as if they were pickpockets. they can slap you with a 750-euro fine for doing it. >> madrid city hall is responsible for setting the police. for two years now, the wife of spain's former prime minister has been mayor. her conservative popularity -- the conservative popularity ratings have been falling, partly because she never misses the opportunity for a gas -- gaffe. >> i'm a great music lover, but it's not the same in a concert hall or opera as being in the streets. there are street musicians, and there are street musicians.

>> but her policies have yet to reveal any great love of music of any kind. there have been protests against her cuts in the city art budgets. madrid is deep in debt and has to cut spending, and the arts are almost always the first to feel the pain. spontaneous demonstrations are almost a daily occurrence in madrid. there have been thousands since the crisis began. now city hall has decided to crackdown on protesters even harder than on the buskers with fines of up to 600 euros for a legal demonstrations in front of parliament or politicians'

residences. the new law seems to have been made to squelch protests. liberal spaniards are horrified. >> we judges are very concerned because we say the government should discuss issues with the people in social conflict situations rather than punish their resistance through laws. >> one of the initiators of the mass protests in spain, the 15th of may movement, is claiming the proposed laws would curtail freedom of speech, and the extreme penalties would effectively bypass the justice system. and they would give police free reign to crush protests any way they see fit. >> of course, many people will be more afraid to take to the

streets while others are well aware of what this government is trying to do, and they've healed all the more motivated to demonstrate. >> the buskers even see the government's heavy-handed approach as a danger. >> things in this country have been relatively peaceful so far, but we may soon be seeing a much stormy or, wilder form of protest on the streets of spain. >> and the potato omelette band plays on, with or without a permit. >> that report wraps up this edition of "european journal." thanks very much for watching. join us again next time. until then, auf wiedersehen and bye for now.

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