so that's what it is' are literally duction when you and your fellow. fight the mental sciences up out of their femur we'll have a special structure source of the body but i'm working on breakthrough technologies for the defense industry and i should do if you know that such structures exist in other countries and i think many of these eventually will be later applied in their t.v. life that you catch night if you do. an important criteria of louis extend words is the quality of the political system we have since the year two of our political system at the federal and local level we have made a number of decisions with it as i was standing up in this room. with the thousand and eight i gave you ten points and then in last year i should also point out it's perfect the our little system i think everybody who was involved in discussing this issue did soul and deputies of the state duma all members of the federation council yet when you. level off local government we still miss you have the most i mean

more steps local so government is in important key of every city unfortunately there are many political parties in the municipal work is in sin that and then if your particular bill knew at the local level not all in your party so were a key as a blogger national organization is when you put a thought i think we should have proof your worship it or a mixed in with another but electoral system when. mean we support all the level you put up assemblies with the teacher with at least twenty deputies. elliptical is the home petition we get at the low level. building the true us to using our audiences to try to keep it as good and will make parties more responsibility they were. but usually we should have nearly every closer to the daily lives of whereas surely kill shark who could this is another detail. step to

string glenn now that you've got a democratic government doing everything that i mean goal which is still making the life of our people better to do that therefore elections to the south. in the december of next year and float will take place. in the exhilaration of a new political system that has been renewed at all levels ten. the before we all really should all sitting here in this room discussed a number of. policing attitude and i think our results are good up to that will now we'll have a similar discussion on the education act i think fashion to make this a regular practice we should have a public discussion is like we did with the police. and we should have a special procedure for this i instruct my executive office to create appear in their proposals before the end of this year on how we should have this public

discussion to make and all that we will just when you give the old city it is impossible to develop our society without providing national security on the field and defense we are modernizing our armed forces and the year of the conducting systemic reform so we thought stuff were you know our armed forces we got we have supplied us with each new with new hardware for our troops. in the mush that we are making and in this we we are conducting military exercises on the regular bases and also with the free large scale exercises with what i got on that will be coming in about the four military districts and said it is exciting we are providing new more new hardware for our troops what else do we need to do first and then the next year in one year we need to be superficial attention to get on to a strengthening the space the troops in what i call air force but it is serious in

a when are you come through ellis island area defense i mean those in the girly warning system that if you go and they should be under the same command of the libyan that i strategic command thirty min the army feel we need me you might noodle aren't you got annoyed in navy in the morning he should moves with the warden of minutes but that weapons and skill it specialists. this requires some of the little money and i have just given you the. and new solutions and new decisions sometimes there are difficulties that we should also take care of all the ruthlessly responsibilities that we have taken up with regard to people who have joined the ranks who are service men primarily providing housing as i doubt the let you third that that we should do in the relieve your army a different thing from the jobs that it shouldn't do you mine yet hold his job some we done by the civil companies. of the one thousand servicemen should

concentrate on their it's a regular little zone it's just one you miria that i thought were the current term over mandatory services so in your those young people who served in the army for one year should devote their time to mastering a necessary skills in the field next year not just developing with huge the it is up already armed forces we are also see it getting our international cooperation better than it with only interested states who are working together to strengthen the new. you've done to prevent proliferation of when you look at the recent but he will flee not only to russia summit in lisbon a he by sheer in moderation of your appeal to your soul defense system that would of like bring together the potentials of the russia and nato yes but on the you get with that would protect the old european countries from me sila tax. me but i will and we are already starting to consider all the wolves together on this of course

is a positive development but in this your job up at the sky i'd like to tell you. that in the next decade. but next year we have the following only tony that if we give are there will make a better when you reach an agreement on them dancing with me and three need a full blown mechanism for cooperation in the more or at least if we fail to do so and to have a constructive agreement and nor we get a new stage of the arms race will start in and we will. have to make a decision concerning creating new strikeforce of sin that it is obvious. at the thirty which in this scenario would be very difficult. very hard and i saw one year in lisbon when it putting it in with the some of his solutions were money to build more than partnership with no one on the ship not on the principle of the

indivisibility of security even though chilled trust drink spirits see and predictability we have decided you know when we're working on creating a common space of security at the pavilion in the year atlantic region them this union will give us a sense for you if you can reserve optimism that you have to go on working on the russian he would initiate of the security treaty you know if you can i mean we need them with us and they're canonic digital almost see them a bit and it should provide specific results of what in a seashell what our foreign policy should not be just in a missile site should be one specific using it itchy of months that are understandable if you're a people creating it but yet the joint ventures in russia who do seem to be on the high quality. inexpensive goods. facilitating the police are a shame but when such a break medical approach. and you go understanding from our for the ordinary sin

there were ready to share their experience of innovative development with us and that i should be thinking we should work this officially with those countries in companies that are ready for this team isn't it when the fuel enough of it. and with this is a guy i know the answer is to we have got a money partnership with say germany and france and we have a huge potential to develop our cooperation with china. and brazil with them you know the republic of korea single. japan eataly finland ukraine kazakhstan going to and some other countries just north of look at this kind of ships you will have the five priorities of russia's more than a station fairly as a key factor i think that the reach that we should develop our cooperation with the european union and the united states of america and i think the mechanism so for

russian american copper relationship be used up really to establish a full blown economic porking a ship on the line with us in proving that the investment climate and our copper ration in high tech lynching him is that i see you both agree man which we know russia and the european union on the partnership for more than a station that's in the title of the agreement it was a year ago that willy nilly muppet who said he should work in the full in a three year his first usual exchange of technology and not only to glom in the. us then there does in our technical regulations and standards on the little bit of a more european union the european union should help russia to join the w t o but secondly the ready room of facilitating the lisa rishi with the. to the full abolishment of it he says in the near future and third developing a professional you know with them and nothing of the. go with mushmouth but you know to me. educational exchange programs this is what i'm going to talk about in

brussels soon crania void out of our chairs your next to get out that i need to develop regional integration of russia into your an e.u. in asia pacific region you need to use the potential of russia's involvement a pyrrhic of shit in your theory is good for me to develop our ties with other countries in the region this is particularly important. for example our relationship with china to this is unprecedented level of mutual cooperation out of europe not only projected on the international arena with the opinion is reflected on the growth of such. unions. and yes you know without the additional fell so to villa ping our partnerships with the latin america and african countries play the servant probably another priority in our foreign policy is the c.i.s. look to it and the structures that we have there euro said seriously zero is that

you feel that you we have the set up the customs union and we are creating the common economic survey something earlier said because film leave here we're using a new integrative mechanisms and and concepts for effective economic common ration eventually do it in the telling you putting it online we need to use devilishly but on the common economic space from the arctic to the city throughout. eurasia. but somewhere i see it but i thought when you come up with different russia should use its unique experience up in any human resources to be beyond your work but it was due to the change in the new system would another two for me a year ago. the g twenty summit be just the initiative to combine military efforts in order to prevent the prevent sea from oil spills of that no we need to face the

maimed go into community we need to exchange very experienced and best practices in this area as you prevent or to. remove oil spills and finally on the international as they might. we need to would really suck operation in fighting with piracy we have suggested to set up to listen ash no courts for pirates and we think this will help will not be prosecuted pirates i'm with you with one of the key factors. i'm glad it's the fact that they're not punished where it's are not punished people each so i expect that our foreign ministry will take specific steps probably in this area in actually in all of these areas that i mentioned that argue that with your friends. but if they and we all need to be implemented with the plants that i told you. i don't doubt that we will be able to do social but i believe in your support.

and know i'd like to add just a few words which in the usual normally they're not included in official me policy but still. these words are probably the most important one stop another name for on we are a new country we are renewing our society we are changing our lifetime and we are changing ourselves but from a ship and we feel so generally speaking with everything we see couple you we do for those we love the most internationally for our children. but i wish them with you because we want to live to have a better life. and then we we want them to be better than we or we want them to with to do something that we weren't able to to use with you we want to hear success here to. produce the success of future of our

great russia and i'm confident that this is what the chapter.

for that we have that we've just been listening to the thoughts of state of the nation address delivered thought i think as they did to me from ed said if the federal assembly chairing that address it did come but a wrong division. both within the domestic field and concerning foreign policy he talks about the need for more of my say she within the political and economic sphere he also focused a great deal on the children in the need to safeguard russia's future generations regarding their health they were education in their legal rights he talked about

russia's demographic problem he talked about the need to concentrate on lumbar mental issues he talked about the needs of the humanizing the criminal justice system of improving the relationship between the states and the individual of corruption and of improving russia's missile defense systems he also talked about the need for russia to work together with europe in building a missile defense system of increasing cooperation in that sphere and i believe that we can listen to what president to beat the timid bed of have to say on the box. fortunately i've just been told that we don't quite have those sound bites ready you hate the we will do a show he did concentrated the boats paul solman domestic policies but in the latter part of his speech which didn't quite which the wreck ordered phase of his longest were on the one of one hour forty minutes he did then we were on to foreign

policy two it's about the need a great suit cooperate should know certainly in terms of missile defense but also of trade with the both america but also with europe in increasing russia europe cooperation but also looking beyond europe to china and to japan and to asia and to all of the stages you mentioned brushes bid to join the w.c. you know again and also all be interesting economic bases with all the countries are doing it so they need to fight international piracy so a wrong to topics confidence to help me pick up. some of them i'm now joined by fred with from the this christian science. paper many times and joining us. this while the chilly lice paul said nice he's come to join us here not what we're you expecting to come out of that speech i understand this into a number of states the nation to speak just because it will korea. i first came here twenty five years ago and have been listening to this peculiarly russian type

each russian leaders seem to feel it their duty to take control of every detail of the country and to produce history magisterial address that covers everything as you said a complete laundry list of issues and i was listening for something new and different. and for the most part didn't going to. force. clearly wants to reorient the country but i must say every leader since gorbachev has talked about. democracy for transparency. taking care of children improving public service all of these things. i think he really means it. and he really hopes that. he can use his presidential bid to push things you know in what is his theme is be the modernizing direction that modernization not that you

will see you mention that to talk about children a great deal and as we were listening to that speech we did remodeling i think we still say it was maybe the first off an hour he chiefly focused on future generations the need to look off to them to improve their accessibility to education to health were you surprised by the level of attention given to this and i think that's clearly his speech. he spent almost half of that address talking about actual. and you and he kept returning we even when he when you took other subjects even when you started with international policy he talked about things like education and speed and he was returning to the youth team so we can see that . back. when he we should know it in russia your grandchildren and children that we are ashamed. that his speech. and

afterwards in your list well done there and eventually just to put everything every item he told to improving the the state of tension is out he didn't he bad but it was so he did so you could see a quarter loss on the demographic problem that russia faces didn't see the need to encourage families out here to have more children to really get a clear idea though i think exactly what sort of policy they want to bring forward on balance currently as i understand it if you have a second child you are given the monetary compensation by the government. we have any idea what's going to be done beyond that to encourage families to have a third child who even mobile well he didn't mention you would think in the basics to just keep ricky is pretty great you know for the next fifty years russia is going to be so free. country this march he could order to get in and

consuming economic resources i don't know that it's kind of scruffy. but he mentioned just about everything you get a laundry list you need to improve housing you need to improve the kindergarten use in availability of child care and all that you need to improve the health service of the you know you've heard it and everybody can go back and listen but he is the book touched on every single item in that laundry list of things to do to make family life better to make it more attractive to have children. he mentioned he didn't talk about sex that was the only subject i noticed was missing and also of course the polls would it was more of my station they need to diversify the economy away from the height. of oil and gas you mention the skulk of a project called silicon valley did we hear anything new on the topic of modernization and you know again it was it was largely in the room. and well

it was it was a long and impressive wish list. and he took i mean i hesitate to use the word platitudes because i think he's absolutely sincere and he did mention it's a roof or it's i'm going to introduce legislation on this or that we're going to fund this or that so clearly he has a beef. or i trade with them the person signs one many times to speak to or simply hear. vegas say to the nation address and we did and talking about. drive to lot of noise russia's economy and all that sort. do you believe that we can now hear more on this pro-ball business reports about suit for a loss from the center of moscow back to the studio and back to business.

thank you alice and hello welcome to our business program armstrong. the e.u. has agreed on an eighty five billion euro bailout package for ireland but that is still only a fraction of the money the banks in ireland have lost and many doubt this is enough to have many doubt that whether this sums actually enough to halt the crisis the head of london school of economics told business r.t. that the bailout package is credible but irish banks will have to give up their global ambitions. the i.m.f. and the rest of the european union are now standing behind the irish government the question remains however what is the future for the irish banks because in the past they were very large they did a lot of international business particularly in the u.k. and my own view is that so over that we will have to see a significant contraction in the activities of the irish banks and they will have to go back to being essentially local domestic banks because this adventure that

they went on overseas was a failure last week chancellor merkel made a strong quote asked if politicians had the courage to confront the bankers and bondholders to make those who took the risks share in the bailout how comments were barely reported in the western press why is this a touchy issue because if you say that's what you are thinking about people in the market react to it immediately so this is not something that you can speculate about either have to have a clearly worked out plan which involves a debt restructuring which is for everybody painful maybe but at least equally painful if you have that plan and you can do it you could do that for greece or italy for portugal you could say we're going to have a standstill and over the weekend we're going to work out but everyone's going to

take a haircut that's possible what you can't do is speculate about it is this still a threat of a double dip recession in europe and should any additional be taken i'm not personally concerned about a double dip in the center of the european economy if you look at what's happening in germany which remains by far the largest economy the economy is moving ahead really quite well the french economy is doing ok and the british economy is also recovering actually rather better this year. expected the problem is in the periphery if you like the southern european countries including. where they lost competitiveness during the years the first decade of the euro particularly the southern europeans did very now have a fundamental structural problem they have to try to improve their competitiveness which unfortunately within a single currency zone means they're going to reduce their wages and reduce their

prices and that's what is going on and it's very very difficult to do. now let's take a look at the markets asian stocks closed down on the day the nikkei lost point eight percent while the hang seng was down point six percent financials are dragging in hong kong with h.s.b.c. down almost want to have percent away from the financials the lenovo group is also lower after the data group gartner forecast of global peace and sales this year and that's. why european stocks are higher with banks among the leaders the footsie is up point four zero four percent led by gains of around three percent for royal bank of scotland and lloyds banking group the german dax is up point three two percent with deutsche bank up one percent. and in russia both indices are down on the day of the t.v. and was now fourth close to three quarter of a percent on my six year old callias shares fell the most in almost four months

after subsistence at a rail link in the company's main party deepens however lukoil gained almost two percent on the r.t.s. . and russia's largest independent oil producer ways profits twenty nine percent in the first nine months earnings came in at around six point eight billion dollars under the international accounting rules lukoil credited cost controls with generating record free cash flows. and despite monday's losses alexander's recall of fun phenol is positive about the russian market he advises to pay attention to find out chill and energy stocks we are looking on the banking sector because we can sirius the best bet on economy recovery which we believe now in the second sector we are pointing out yes because of drastic over the relation in comparison with the sake of on the russian market or were all we are

positive by the end of the year we are waiting for one thousand seven hundred five on our dance index by the end of the year within the whole year zero market these looks a lot worse than any other. market differ specially if you compare it to break. countries and if you compare the relation of the market we can see the trade with a twenty five thirty percent discount comparing to. to become just and that's all the updates for this hour you can always find more business stories on our web site that's archie dot com slash business stay with us.

the close a team has been to the tome screech where rich academic life gives birth to innovative ideas. known largely goes to the area which together with boosting industrial development. offers to make a journey into russia's history. and to enjoy a person vivid cultural life. welcome to the pearman region in russia goes on and on she.