in italy and to contribute to the continued existence of the hero because i think it's a stupid idea to start with and it's just chucking money down the drain pulling the plug on those states could trigger a chain reaction greece believe investors can. quit the euro that in turn will spark the exits of portugal even italy and spain. ireland the border. there over the last couple of. spain over germany germany started europe's top banks hold billions of euro in greek and portuguese debt if those countries go bust they could lose that money we might see scenarios. means that people will run to the bank in order to withdraw their deposits because they believe the bank might not be able to pay them the euro's facing an existential crisis admits german chancellor angela merkel but

the head of your biggest economy will. find a compromise at the brussels summit that's raising tensions across the globe. at the moment the most visible the most obvious. problems but on the other side of the atlantic you have the u.s. economy. but some very weak economic figures and suffering as well e.u. leaders could sign the death warrant for the single currency here at the summit if again they fail to do a deal to halt the spread in europe experts fear public panic will take over denying them control. brussels well to discuss the financial woes gripping the e.u. when joined by professor. and apartment of political science at the paris western university thank you for joining us here in the studio. made no attempt to hide his skepticism over this meeting and there's only. they come up with

a joint agreement with france on the pressure always seeing cracks forming among the leadership over all this i think the cracks of always been there and there's an attempt now to paper over the cracks basically the germans are reluctant to involve private banks whereas the french. press french president of course is more in favor of involving the private banks that's on the surface but i think everyone has to make an effort because the crisis is very serious in part because the when the euro was created it was a rush towards a common currency with very different economies. they all want to save the euro although the euro is in danger and the i.m.f. said recently that europe was not going about it the right way so yes there are cracks and now it's an attempt to paper over the cracks so are they trying to save something that cannot be saved essentially they're trying to save the euro. stiffle

to say now if the euro can be saved because there's a real danger of greece defaulting and if greece defaulted which is something we've got the big greek government doesn't want and the other european partners do not want but i mean from an economic point of view it would make sense because the greeks could devalue the trying to see the europe and maybe maybe confront the markets up to a certain point what about this idea of trying to levy a tax on banks and rein in the credit ratings agencies and things like that i mean half the hole will they go to try and save the euro but now you know we have to distinguish between rhetoric and reality because at the g. twenty two years ago the french president said that he would reform the financial system of the well and of course nothing happened so as an idea after all the banks are partly responsible for this crisis for example the greeks were advised by american banks when. the former government was cheating about the size of the debt

so they should take the part of the responsibility and they should pay for the for their own mistakes the question is now will political authorities have the power to confront the markets even minimally because what they're proposing now is a minimal contribution by the banks if the but the contribution is voluntary i don't think it in work and you talk about taking responsibility here and historically speaking many would say that germany after world war two really countries waived their responsibilities to pay reparations and germany should say now ok we'll forget you all debts that well i think there's a point there because germany was saved mostly by the united states after the first world war one german debts were cancelled but also after the second world war germany developed there was the. economic miracle in part because of american many

because german debts what cancel so if greek debts. but partially cancel that would be something good and germany should contribute not only in the name of belated reparations for they have been nazis created in greece during the second world war but also for good economic reasons and germany benefited from debt cancellation in the past so now maybe germany because of its economic situation could make a slight effort and cancel well maybe the whole debt but part of the greek debt now this is all the politics and economics of course but what about the person on the street as it were how are they seeing all this i mean they be quite resentful about what's going on possibly a rise of nationalism because of this no doubt of course the germans feel that the club med countries are not paying their dues in fact they badly informed for example the greeks well more than the germans and the idea is in terms of the number of hours every. but everyone thinks the germans are the hardest workers in

europe and they don't they shouldn't pay for the greeks who refused to pay their debts and of course there's a lot of corruption in greece and so it's true but. you know there's a deficit in terms of information among the general population unfortunately the general population is never consulted for example when the banks invited greeks to go deeper and deeper into debt the populations of greece of germany were not informed now there's an effort to be made to inform the population and maybe this idea of a collective fund european fund to save greece independently of the markets is not such a bad idea how is this going to pan out there do you think are you leaders going to change strategy or just in a carry on trying to save and if they go on doing what they did for the last two years it's going to feel because there was one plan the second plan and if they had with a plan of the same nature it would feel and maybe at the end greece would be forced

to default this is what they want to avoid now so they have to have a new tactic and eutectic may involve calls for the banks which would be i think in order because the banks are part of the problem and they should they should pay for it after all you know if the greeks did something like the people nice and said no we're not going to pay our debts back the markets would suffer a defeat but it's very much a situation of a conflict between the markets and political leaders ok we'll leave it there for now interesting stuff professor thank you very much for joining us thanks a lot thank you. while a london based team investigating a phone hacking by journalists use international as an expanded from forty five to sixty police officers and staff as a scandal intensifies comes after he's warned that any did name complete investigation. put back the start of the planned public inquiry russian billionaire

alexander lebedev meanwhile says he may be interested in reading. shamed news of the world's top lawyer you know and to other british papers the london evening standard and the independent. reports from london now where the phone hacking scandal is. also the prime minister david cameron trying to answer every point this is. my life i'm enjoying this so. who will survive the phone hacking scandal and keep his job cameron comes under fire for hiring andy coolth a former editor of the now defunct news of the world he's accused of encouraging his staff to hack into private voice mails there's been a large amount of fingers and there isn't just a kind of heads in the sand and that is lethal for a prime minister and he's now in a real fight isn't a real really bad situation he could well be looking at some serious consequences

for himself at the very least start still around him betting shops have slashed the odds on cameron being the next m.p. to quit backing they offered one hundred to one at the beginning of the week that just five to one three days later in the last two weeks or so we've seen a lot of money go on camera in the last forty eight hours when the. committees have been going on behind us. and we've seen cameron over the last few weeks fall from one hundred to want to be the next cabinet member to leave to forty one years just slightly crept up again to five to one today as a result of his statements in the house where we thought he gave quite a good performance on choose day it was murdoch's turn for a close shave attacked by a protester with pai and saved only by his wife's right hook despite profuse apologies to victims of his own newspaper's unethical the hey. he had no intention

of stepping down himself. what's less clear is whether david cameron remains the best person to lead britain out of this crisis of confidence he hired coos and who in turn it was later revealed was being advised by another ex news of the world hack neil wallis if that wasn't enough he was simple taney asli working for the metropolitan police politicians and police under fire for cruising up to and colluding with the murdoch empire and in the wings cameron's arch rival edge miliband is limbering up to step into the ring was so the country can have the leadership we need why why doesn't he do more why doesn't he do more than give a half apology and provide the full apology now for hiring mr colson and bringing him into the heart of downing street. commentators say the prime minister came out

on top in wednesday's round in the house of commons when he was grilled by m.p.'s over his relationship with news quote but the fight is far from once you know. he is damaged before he was he was beginning to develop and. because none of the sort of damage that was actually stuck to him the scandal has forced resignations all round top executives at news corp and the u.k.'s two most senior police officers many are asking why the prime minister shouldn't be next for a knockout david cameron's promised a full some apology if it turns out and he calls and light to him about his involvement with phone hacking but some say that would be enough when it's over and we are a long way from that it's far from clear who can survive the rounds still to come and remain at the top of the media the police and the government your avatar the.

new york based radio host. facing the collapse of his business and political ambitions. i would be shocked if he is still at the helm of news corp in the next couple of months and i think we're going to see actually a reversal of this i mean murdoch was in many ways a throwback and. professor jay rosen at n.y.u. has basically said that this was not a a new this company it was a media company that has a news division that essentially functions as a lobbyist as a lobbying arm for that media enterprise and i think murdoch wanted that political power and i suspect that anybody who takes over from murdoch and we don't know who that will be but i'm sure there will be somebody will see this this pursuit of political power just for the sake of political power to be antithetical to running

a good business. or that coming up in just a few minutes frenzy rips the central russian region of the discovery of priceless extraterrestrial materials. the rest of. the international criminal tribunal for the former yugoslavia to focus on the completion of its mandate that's according to the u.n. chief ban ki-moon who welcomed the end of a seventy a manhunt creations generally used of atrocities i know from the early ninety's yugoslav conflicts is the last in the tribunals one to list but with all this cross lines now to launch the sarah hughes in belgrade. do we know when it is expected to be delivered to the court to the hague exactly. well the expedition's expected in the next week we saw yesterday it was just hours after his detention the court here in belgrade approved decision texted him to the hague now they have the defense has

three days to appeal that decision but according to local media reports we've heard that the lawyer has said that the defense don't plan to do that and we've heard also from the deputy. war crimes prosecutor he said he doesn't expect any big jury in that three day deadline for the pill and after that it's expected fairly quickly he will be extradited to the hague detained obviously after many many years on the run that happened yesterday near it's thought his family home in a small village northwest of belgrade and this really seen as quite a victory for especially for president he pushing for the tension of these war crimes serbia has come under criticism over the years the north calling and holding to task these people bringing the men and this is the last of the war crimes suspects wanted by the u.s.

for the crimes committed during the break up in yugoslavia during the one nine hundred so we've heard that already it has three and has been had it has been questioned about the atrocities committed in particular certain incidents is there was one very specific moment it's the massacre of three hundred prisoners in the town of nine hundred twenty s. already being questioned about that and of course this has been seen as one of the major obstacles to serbia gaining full even membership and now that he's arrested it's thought perhaps that would be the next step now. having can see for that membership when indeed as you say so because government is clearing all obstacles on that surface to land membership but what are the serbian people think about belgrade visions on the tactics as using so. well the government here has been looking very much to the west and t. this again in the membership the public opinion this is quite significantly in fact

certainly over the last year or so we've seen a number of these arrests just two months ago that right came out it was taken in less than two months ago now of course with this new arrest they they feel that really the hague and the e.u. has been putting pressure on serbia to jump through all these seats and they've met all these different demands and yet they haven't really had anything over simple kate is now we heard from president tadic staying that they've filled their moral and legal obligations to the hague critics is that the really to assume that this is now going to pave a sneeze way for serbia to enter the and again membership i would be very naive and in fact there's going to be a number of bumps in the road along the way and not least that is the public opinion there's been a lot of criticisms of the government's policies in fact i was actually here in the vendor and i spoke to the deputy prime minister and he said that he's even membership as a chance the serbian people to have a normal life with the people saying they're completely disillusioned with that ideal and as they've seen quite recently you know the e.u.

itself is going through quite as they've got a number of problems they're dealing with as greece is learning the hard way that really the e.u. is not the problem but that the resolution to the country's problems there are a number of issues in the country that they need to do with as he said they really feel that they've been meeting all these demands and they've had nothing back from the year with this latest arrest really what's done is the cool brussels bluff they said that this is one of the fine logs to cause to gaining even membership and talking about their candidacy and now we'll see worth of the comes back and actually meets that with with any actions. ok leave it there for now to sara first thank you for that. well the arrest comes less than two months after the capture of the former bosnian serb commander general cone that it buchan's experts marker gusset explains why the international criminal tribunal for the former yugoslavia is so focused on serbian what time need is. well you just

lose saying really in their propaganda operation if they didn't indict him then there would be one serbian leader who wasn't accused of being a criminal and that would be inconvenient they had they have to accuse all the all their leadership of being criminals for this propaganda picture to take hold as to why serbs generally. use this to paint a picture because the tribunals have been set up to to accuse all serbian leaders of being i didn't serve the big criminals while hiding the real criminals so the tribunals pointing finger is the one that the actual criminals who broke up the country hide behind. their brief look now at some of the international headlines at this hour the u.s. has announced it will send humanitarian aid to famine hits regions controlled by al qaeda in the sure liveries intercepted rain has declared a state of me to areas of southern somalia where nearly four million people are in

danger of starvation monetary and agencies estimate the country needs more than the believe in the hard u.s. dollars in aid the current crisis has been caused by a devastating drought the worst in decades. and the space shuttle atlantis is waiting to touch the surface in about two hours off its last really craft and it's for the international space station due to land at the kennedy space center in florida down the end of the nasa shuttle program after that atlantis will become a museum piece with plans to turn the mission control room into a training facility. sometimes you have to dig deep to reach the stars at least that's the case in central russia than region would be to write fever has spread in recent years on a boy who jumped at the chance to catch a falling star. they don't believe in aliens so the time machine but they do spend most of their time looking for extraterrestrial matter that will take them billions

of years back in time most meteorite hunters in russia do it for profit but some still see it as their way of heat hiking through the galaxy. this is the oldest matter you can hold in your hands there is a theory that meteorites are part of planets court rule one just imagine this piece is about four and a half billion years old like the air at them this valley about three hundred kilometers east of moscow is their latest pitstop about ten thousand years ago the local fields to go have a pounding from an audience shower creating the most telling me to write the ground in central russia is discovering two thousand was a pure accident. a few ditches we dug kids help with the draining off the excavators left a local resident was passing by if you noticed a rather strange broken picked out of the rug lay idly in his bomb for two years until the store program brought meteorites on t.v. and sent it in for testing that's. been the next few years about three tons of

meteoric material was discovered here at the sun would be unlikely to air out of the nation he's honest as he's the only dog in russia trying to account for rocks from other planets in many ways meteorite hunting is a lot like gold digging you have to spend weeks in the wild hoping for stroke a flock but in today's prices searching for these accidents arrests are rocks can be more profitable than even the good old gold fever marcion no lou and i meteorites we are in high as the month can cost two or even three times the weight in gold the biggest findings usually gravitate to the united states and western europe when most need to write collectors at base and about the law actually where the facts are correct for the rocks ten percent of their value of must be paid to this. sure still some delusional dodge the meteorite tax. on halt was uncovered earlier this year at

a moscow airport on its way illegally to the czech republic. for some their fallen stars but what bothers you to write are increasingly becoming a blazing hog. region. with their feet firmly on the ground has marina now the latest business news. hello and welcome to business here on our team now we start this hour with minority shareholders off who are preparing a lawsuit demanding up to ten billion dollars in damages over b.p.'s failed bid to partner also left in arctic exploration their shareholders and the russian court ruling ordering papers surrounding the multibillion dollar deal to be revealed this will allow them to evaluate the damages. felt to strike the deal this spring as shareholders claim b.p.'s russian joint venture should be the primary vehicle for

arctic exploration. the us has come up with in the eleventh hour plants are a result of that law that ceiling it's hoped the plan will help the country avoid a technical default that includes deficit cuts zero four trillion dollars and calls for tax increases of one trillion bazza chief strategist of i enjoy the bank course we for says there might be a gap between promises and real cuts. if the government makes too many cuts and raises taxes too severely then they could cause a double dip recession they could cause a substantial slowdown in u.s. economic activity which would of course hit the u.s. federal budgets and exacerbate the problem so they have to be very careful not to introduce the cuts to violently or to quickly so be a very tricky balancing act and that's why i'm not expecting even the four trillion dollars cuts i really don't expect those to be put in place for

a very long time i think that's what we're seeing no are promises of cuts in order to get it done but there's a very big difference between promising a course of action and making it and i think the implementation of the cuts will be very much linked to what the indicators are of economic growth in the u.s. . and let's take a look at the markets now crude is news in the sour that's after earlier gains as u.s. oil stockpiles shrank indicating fuel demand will increase in the world's biggest consumer all of the commodities. and the european markets are in the red this hour earlier we saw gains as chancellor merkel and french president sarkozy agree on a joint approach to greece's debt crisis ahead of today's summit the footsies losing about a third of a percent this hour and the german dax is lower by more than half a percent. and here in my skull both markets have slipped into negative territory and that's despite reports of lower unemployment rates and accelerators retail

sales in june let's have a look at the index movers on the my sax and your stocks are in the rad there we go you're about see them gas form is losing three quarters of a percent this hour on banking stocks are also trading in negative territory despite a bank is shedding around a half a percent and bucking the trend as ross telecom it's rallying all speculation it could be completely sold to private investors. and. that's all the business is for now and you can find more stories on our web site that's r t dot com slash business in the meantime stay tuned for the headlines with carrie.

fisher disciplinary on. your. good entry system transform a criminal into a law abiding citizen. and prison life behind bars on r.g.p. . that

time for the the main stories we're covering for you the south the leaders baker in brussels on. out of punk continuing bailouts of the debt that make gripping in spain the strains and us on its last legs. international media mogul and top politician come on the huge public scrutiny raising doubts they'll be able to survive the fall out of the sky and restore public trust. the last remaining un indicted war crimes suspect corps and is awaiting extradition to the hague home to being captured in serbia the great hopes that it will bring the

country closer to the membership. but next. discusses the prospects of economic cooperation between paris and moscow the french president's special representative to russia. after the last special representative of the french president on cooperation on russian french business relations thank you very much for being with us today so you come to russia every fifteen days what is your primary mission now your coffee at my first mission given by president sarkozy in line with president would be needed if it is to report an. interview russian economic zone and the second part of this mission is to strengthen economic cooperation in all possible areas between

our countries. now you have responsibility also developing the trade between french france and russia which sectors of the russian economy do you think are most attractive for business leaders and friends. today for france it is of course more materials in trade. but there is much more. doing with france much holding building locomotives for exports the world. is doing the pharmaceutical area we cooperate in many new technological areas these areas are multiplying because we are in charge of russia's modernization plan and french companies can offer quality technology and so for us at the point of interest not only will materials which remain essential to your nuclear sector which we cooperate more do you. talk about. the good good sides of the modernization and present inventive has criticized the.