>> it's friday, june 27 from the dw studios in berlin. this is the "journal." >> great to have you with us. coming up on the show -- >> it's a done deal --eu leaders picked jean-claude juncker for the top post. we will tell you why it is a defeat for britain. >> the ukraine and european union make it official with a landmark trade agreement. we hear from kiev and moscow. >> after weeks being held by separatist in eastern ukraine, for observers from the os the er finally free again -- 4

observers from the osce are finally free again. we start off here in europe where eu leaders meeting in brussels picked jean-claude juncker as the new president of the european commission. >> but not all leaders were happy with the nomination of the former prime minister of luxembourg. his appointment was overshadowed by british prime minister david cameron's vocal opposition. >> although tensions risk boiling over, nearly all member states through their support behind the eu veteran. but the heated dispute could still prove a turning point in the relationship between the u.k. and the european union. >> it was a bitter blow for british prime minister david cameron. he had fought jean-claude juncker's nomination to the last. >> this is a bad day for europe. it risked undermining the position of national governments. it risks undermining the power

of national parliaments, and it hands new power to the european parliament. >> cameron and victor or bond of hungary were the only two to vote no to juncker. the 26 other leaders voted in favor, including german chancellor angela merkel. >> the debate about a leading candidate has not only resulted in a decision about who it should be -- it has also set the agenda to the next five years. this strategic agenda sets up the challenges that we, together with the eu parliament, must face in the next five years. >> europe's and excavation president has a difficult job ahead of him. he needs to champion major reforms to the eu and at the same time address british demands that powers be given back to member countries.

>> let's find out what this all means. jeff is at the european council and has the details for us. great to see you. mr. juncker has been a very much in the thick of things, and david cameron says he has just been far too long around the eu block tom about other leaders disagree. >> they sort of did. to be honest, a lot of the leaders see mr. juncker is a compromise candidate. he is not actually the first choice of many of them, but he is a consensus candidate, with two exceptions, as you say -- hungary and the u.k. -- and david cameron decided to go for broke. only 10 days ago, he had the tacit support of angela merkel and the swedish and dutch prime ministers. that support fell away for domestic political reasons, and for similar domestic political reasons, david cameron could not give up, so he came here brazen-faced and simply said he was standing up for britain and europe. he was not going to win the battle but would be victorious in just making britain's case

felt. of course it was a big defeat. maybe even a humiliation for david cameron on this side of the channel, but when he gets back to the u.k. and addresses the house of parliament on monday, he will get the cheers and support of his back ventures, the conservative mp's who see him as victorious in defeat almost. he stood up for britain, made his case, and it was a magnanimous defeat. margaret thatcher before him has done the same thing. yes a defeat, but he heals he has made his point, and he said he will work with jean-claude juncker when he has to. the case has been made. he will just have to deal with it. >> the other big topic of the day, chancellor angela merkel had a warning for russia that they better back ukraine's peace plan. >> she did. after the signing of the peace plan, which remember russia managed to block last year, and now the european union has managed to get a ukrainian signature on a deal.

she was quite striking in her press conference saying that there is now an ultimatum. moscow has been warned that by monday, it must have made significant progress toward establishing a lasting peace in eastern ukraine. the threat is that there will be more sanctions against russia if there is no sign moscow is helping to forge a new piece. that will not be taken well by president putin, who is not best pleased, of course, that today, the new ukrainian president did sign a free-trade agreement with the european union, signifying something that russia does not want to see. >> thank you very much. it has been a very eventful summit as we just found out because in the sidelines of the meeting, ukraine and the

european union signed an agreement with the block that sparked a revolution. >> previous president viktor yanukovych had refused to sign the trade deal, and his rejection is what sparked off the major crisis in the country. he was toppled, and after months of violence, russia annexed crimea. >> ukraine's new president hailed the signing of the delay deal as a milestone for his country. >> poroshenko said this was an historic step, but he asked the eu to go further and ask that one day ukraine would be allowed to become a member. >> it must be worth something, for instance, to finally consider a simple statement of the part of the eu.

>> the eu signed similar agreements with moldova and georgia. the plan is for all three former soviet states to be able to trade completely freely with eu countries once they comply with eu standards. >> but get the perspective now from russia. we go to the capital, moscow. how is the signing -- how has the signing of these trade deals gone down with the kremlin? >> obviously, it has not gone down well. the death of the ukrainian economy was basically declared today. vladimir putin did not directly comment on it, but he made a pretty clear case when he said that the chaos we see in ukraine now was caused by the fact that europe forced ukraine to choose between europe and russia. also, we had a high-ranking politician saying this would

have serious consequences for ukraine. experts tell us that could mean that russia might prepare to take actions to protect, as they say here, its own economy. that could mean that they hiked up custom duties. also, they might consider that legislation for migrant workers from ukraine is tightened the re. it would cause dissatisfaction in ukraine. >> in your assessment, do you think this now will also ratchet up tensions on the ground? >> the tensions are already rising high, and there is not really a sign of de-escalation for the kremlin. it is clear that the names are still the same. they still want to have a say in ukraine.

they're trying negotiations releasing the pressure a bit, but for them, it is a sure case that they do not want ukraine to fully integrate with your. they still want to have a say what is happening in ukraine. -- it is a sure case they do not want ukraine to fully integrate with europe. >> 4 osce monitors being held hostage in ukraine have been set free. >> they were held for over a month by pro-russian separatists after being sent to ukraine to monitor a peace agreement. >> rebels balk -- brought the four hostages from denmark, turkey, switzerland, and estonia to a hotel in downtown donetsk overnight. the osce hailed their release. >> we welcome tonight the return of our special monitoring mission teammates after 31 days. we are profoundly grateful to all those who have assisted in obtaining their release. >> the separatist said the

observers' release was a sign of their goodwill. >> to be honest, we freed them without any demands. we hope the international community will understand. >> the observers' release comes amid hopes for a diplomatic resolution to the conflict in eastern ukraine, but the situation remains critical, and numeral for more observers still remain in captivity >> for more on the situation, we go now live to kiev. this hostage release is being portrayed as a goodwill gesture. is it a sign that perhaps a goodwill contract with eastern ukraine is in the making? >> it clearly comes as an attempt by rebel leaders to appease authorities in kiev. the cease-fire is due to end

later this day, but i doubt if it will bring peace to eastern ukraine because we have other rebel leaders reported as saying they refuse any negotiations at all. based a they want to write -- fight -- they say they want to fight as long as it takes. rebel leaders in the region do not act in concert. this will make it very difficult for any peace brokers to bring peace to eastern ukraine anytime soon. >> it is a complicated situation. going back to our top story, what has been the reaction in kiev to this eu association agreement? >> many people dropped in here on independence square. they commemorated the protest movement in winter, and to celebrate what they call their victory. they say president petro poroshenko, having signed this association agreement, is actually their victory, and they

are very glad that he finally signed this agreement. many, of course, feel pity. it is a shame that ukraine had to pay dearly for this victory. more than 100 people have been shot in the protests by police officers. >> it is certainly a momentous day in ukraine. thanks very much. well, let's turn our attention now to the energy front in the ukraine crisis. russian energy giant gas from says it has begun pumping gas into storage facilities in europe to guard against any disruption to energy supplies here -- russian energy giant has from -- russian energy giant gazprom. >> and gazprom announced it sold a record amount of gas to

european and turkish customers in 2013. europe is the company's most important foreign market. sales rose 16% last year. >> what do the latest developments mean for the markets? i put that question to our correspondent at the frankfurt stock exchange. >> the situation in the ukraine and the possible cences for the energy supply for western europe was one of the main issues in the stock markets this week. and it was a clear burden for the frankfurt market. the dax this week went down about 2%. this friday, it was just a little bit better, but it was very nervous trading throughout the week. one of the other major issues and other major burdens was the development in iraq is also on the minds of traders. the problem is both of these issues continuing to the next week, so people are reckoning further with nervous trading. and ecb president mario draghi

will also be speaking next week. that is also something to watch out for. what will the ecb do again in order to support the economy in euro land? >> now let's pull up the market numbers for you. the dax is up slightly, and the euro stoxx down .17%. let's see what the euro is doing -- trading up. $1.36, and the dow jones down .25%. >> the german government has canceled a contract with u.s. telecommunications firm verizon. >> the german interior ministry says it has done so because it is concerned about links between foreign companies and intelligence agencies. >> the cancellation comes after documents leaked last year by former nsa contractor edward snowden showed verizon was forced to provide customer records to u.s. agencies. the interior ministry has announced deutsche telekom will

now become the government's official internet service provider starting next year. when we come back, a dire situation in iraq. >> plus, we will have some group stage >> and welcome back. iraq's prime minister says his country will attend the first session of the new parliament inside ongoing turmoil. >> he told military commanders as is militants would nail to prevent parliament from meeting is planned next tuesday. he did warn that isis would try to undermine security in baghdad. the sunni-islamist forces have seized large swaths of iraq in recent weeks. while the fallout from the turmoil in iraq is having serious humanitarian consequences. up to 10,000 people have fled a mostly christian town in northern iraq after it was shelved with mortars.

>> sectarian violence has turned many people in iraq into refugees, and it is not the first time. >> that's because back in 2006, fighting between sunnis and shiites led some to flee their homes and the shelter in united nations refugee camps. some of them have never left. >> hussein was forced to move into this refugee camp eight years ago. at the time, extremists were carrying out attacks every day. a group came to his house and ordered him to leave. today, workers from a german relief agency are rebuilding his roof. >> i hope that it will not be like back in 2006. i hope shiites and sunnis can learn to live together in peace again. >> he works for german relief agency rebuild iraq. he is there to help people like

hussein, and he is in demand. the need here is great. many people were forced to leave their homes in 2006. now they are afraid of another sectarian war. >> people are afraid of al qaeda, shiite militias, and isis extremists, so they are looking for a place where they can feel safe. >> the work is funded by the united nations. he also works with people in the mainly sunni region of anbar and to the north of that data where isis extremists have been writing the iraqi army. he says it is important to get on with all sides. >> of course, there are tensions, but they are being whipped up by the extremists. simply said, most people here just want to be iraq is, but radicals are gaining more and more influence.

>> he has to wear a bulletproof let -- best when he leaves for one of the camps. he is accompanied by armed guards. these days, militants also target aid workers. >> two or three years ago, i thought we could slowly start to leave iraq. that is no longer the case. >> hussein will get his new roof, but the problems besieging his new country will be harder to fix. religion used to be secondary and iraq. today, it can mean life or death. >> there's a saying in arabic. people sit down and eat and drink together, they can get on with each other, but that is over. today, someone may come and eat and drink with me, but then a short while later, he wants to kill me. >> it's all too much. the tragedy of his homeland leaves him speechless. >> we stay in the region because

the united states is stepping up efforts to strengthen opposition forces in serbia. president barack obama has asked congress to approve $500 million to train and equip what he calls moderate groups. >> to the world cup now, just over half the matches have been played at this point, and it has certainly been a wild ride. >> reigning champs spain are out, and germany have a lot to be proud of. thomas mueller is the highest scorer so far with 4 goals. >> soccer lovers are seizing a chance for a little r&r before the knockout phase begins. >> after two weeks of world cup lake, soccer fans in brazil get a day off to relax on copacabana beach and review the actions so far.

>> everyone comes to watch soccer here. the atmosphere is great. people from all over the world celebrating together. i am really satisfied. >> everyone is concerned about crime, but i have not seen that one bit. it's just fantastic. people are wonderful, and there is no better place in the world to watch soccer than brazil. >> the hosts cruised to victory in group a. argentina is one of the favorites. germany are also among the top contenders. mueller's outstanding performance helped the squad live up to expectations. some other european favorites disappointed. defending champions spain were out after just two matches, and italy did not advance to the knockout stage, either. the english team also had to pack her bags. >> spain was the biggest surprise, but england and italy,

too. they have all won the title in the past, and then, a lot of teams advanced that you would not have expected to. >> costa rica an even bigger surprise. the outsiders played sensationally in their group. >> we are still hungry. this team is not full yet. >> with more than half of the tournament played, her test against the government and fifa have decreased significantly. >> most people want to join the celebrations. only a very small minority are still taking part in the demonstrations. >> but even on a day off, there is still plenty of reminders of the world's most popular game. >> all right, meanwhile, a fifa official says luis suarez should seek treatment to help them stop biting other players after the uruguay striker was found guilty

of adding for the third time in his career. >> a disciplinary panel took his past into account. suarez sunk his teeth into an italian player in a match on tuesday. he will now miss the rest of the world cup and the start of next season with his club, liverpool. >> now to something altogether different -- the shot that triggered the first world war was fired 100 years ago this saturday in sarajevo. the assassination of archduke frantz ferdinand of austria hungary change the course of the 20th century. >> even today, the balkan nations have differing views about the killing. bosnian serbs unveiled a statue to honor the assassin on friday in sarajevo. they consider him a freedom fighter and a national hero. bosnian muslims and croats say the one you meant is a provocation. they believe he was a terrorist.

-- bosnian muslims and croats say the monument is a provocation. >> in his speech, the president warned against particular is him and hostility toward the european union. he affirmed what he called european values. >> a return to the nationstate and its classic form cannot be the answer europe is seeking to globalization and the confusion it brings. we cannot solve our present problems by withdrawal or voluntary isolation. >> is from east germany and recalled the determination with which eastern european's rejoin the european community as the soviet empire collapsed a quarter-century ago. >> they knew that each european country on its own was too small

to play a meaningful role on the world stage of the future. >> too small even to retain its own scope for action and to live in security. >> he then addressed the situation in ukraine, criticizing russia for opposing kiev's efforts to step up cooperation with the european union. >> what we are encountering today is old-fashioned reasoning based on power and spheres of influence, leading e-book -- even to the destabilization of states. >> that was demonstrated by infants after 1914. he said the international community should never again tolerate such violations of international law. >> we have a bit of art for you before we go. some russian artists are calling for the boycott of a high-profile international art exhibition which opens tomorrow in st. petersburg. >> it is the first time it is being held in a former soviet

state, and it tackles some very timely issues in a prominent way. >> the hermitage is the pride of st. petersburg. it boasts one of the world's best art collections. millions of tourists to visit the regal gallery every year, but right now alongside the gallery's collection of the great masters, visitors can check out a painting by a giant of contemporary art -- gerhard richter. this installation is sure to cause a stir. designed to look as though he has ripped a hole in the side of the museum. curators have defended their decision to organize the contemporary art show in russia amid political tensions. >> the hermitage, once the winter palace, is one of the wonders of the world, so it is the chance of a lifetime. you would be mad not to take it, and the artists were quite keen for it to go ahead.

and true to tradition, the exhibition confronts the big taboos of vladimir putin's russia. on display are portraits of gay men and pictures from a ukrainian photographer which document kiev's revolution. he says he could not understand the calls for artists to boycott the show in russia. >> if you have something to say, then you should say it. we had to take part here. it would have been different if they have stopped us from expressing our views. >> so it is full steam ahead, despite months of controversy over its staging here. >> a lot of food for thought there. thank you for spending this part of your day with us. thanks for watching. captioned by the national captioning institute --www.ncicap.org--

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>> the main story, ukraine has decided to sign a historic trade agreement with the eu. this has been after months of the people. this true and immediate threat of the grave consequences from russia. >>