it means drop you democracy let's have an oligarchy that's what an independent central bank means in the long as you have a central bank run by right wing bankers who will say we want to bring in an anti labor economist like the lady in france who said of the i.m.f. . and we want to be anti-democratic anti-labor and you say that's the whole market democracy but how on earth are you ever going to have a civilized with a different democracy in the euro is it a toxic mix very much so i mean essentially we're dealing with a neil version of plato's republic being played out in such a base i mean it's absolutely terrible there's no democracy to just follow up on a plate that you may you know i would argue that there is a real structural dimension to this crisis in other words financialization has starved the real economy of capital and entrepreneurial energies that would have gone into innovation previously and as a consequence of that we're not seeing the deployment of as many innovative technologies as we perhaps would have in the past oh nor the development of them so

i think that you're right to a certain extent it's a false crisis but on a deeper level there is some real dimension to this we're going to jump in because i'm not a big i mean i agree i'm going to be your general global problem about i don't financially dominant you know financial services about how about the banking sector you know but i mean that's that's true of and i come back to what i said i got a year at the year i was a currency you know it's kind of it's kind of chrysler most of the way you know the sort of how it goes kind of the idea i think that these was right you maybe imposed in a severely deflationary policies on countries that couldn't survive it i do think that's a separate issue what do you hate anglo merkel so much i don't hate her if the fact that you may be in europe although there are the programs she has bought the banking myth she says we have to give money to the banks and make them solvent if they lose all the money in the bad that make them good you use the word financialization she doesn't she thinks that the economy needs bankers to run it in . to make it work but the bankers product the dept and the reason we're in

a crisis is that the debt crisis because the bankers that created irresponsibly she says it's nothing government to tell banks to be productive be parasitic that's the free market rip us off hey that's the free market our job is to give the bankers enough money so that when they make bad loans they can do everything they get paid and we're willing to sacrifice the economy year after year we're willing to say so what merkel is is an american politician she can deliver her constituency to her campaign contributors and if that's the kind of politics you have a new europe then the american somebody runs most of the writers of the eurozone in referring to old europe the way he was just. one point which is that i thought she was scared of the losses of the european banks which would suffer if you know for example i mean it's obvious to anyone that greece should default but instead three hundred seventy g.d.p. it has economy contracts us have said yeah there's absolutely no way it could be

good to be paid it's that it actually if you talk if you talk to people in the balkans are mostly kind of hedge funds and have a baby no they're not going to be paid out to said it was that on the year i know that i've been lucky to get fifty cents on the year i had settled some of that but that's a scared of the losses are you out of stock data b.m.p. and those are bank of the rest of it that allow it to happen it would be much better for everyone if they allowed the peripheral countries to default and then if they need to rescue those too bad for me to go out you could have a debate about afterwards if you do. this here i wouldn't. do it your way where everything is above board and everyone can see the figures being much better and we have a very rich with sweden a lot of feel of course the swedish banks were terrified as was the swedish government what deals with the poles and i think you're absolutely right matthew we need to get right on we have to stop maintaining this fiction that these debts are retailed they're not but just to just take a huge haircut everybody will know no one can so all right just cancel the public would actually benefit from this so the banks would take a haircut just a job. so to get back to the point michael made i mean i think what he was

describing was a kind of a functional outcome of the system when michael has used an analogy or metaphor before they're rather like and that is of a parasite that actually convinces its host to act in ways that it wants and so we have this ideology that's present and that's how the system runs in a very parasitic fashion you have a clone of those who actually control intellectual production and politicians pick up on that and i think many of them think they actually are acting in the public interest so where jeff and i disagree with the europeans is that we're free marketers we believe in what adam smith said adam smith said that no government has ever repay its debt and he was right and we believe that. the pretense that governments can repay their debts the banks know very well that they can't repay the debts what they want is now foreclosure time is arrived oh you can't pay give us the parthenon give us your water supply give us your tourist land this is the big grab and that's finances now doing but military with that kind of pain it's

massive and give you the last word that kind of is that kind of finance destroying the real economy. but i said this that even the us i mean the insistence that peripheral countries be paid by days he's absolutely catastrophic for these and for these economies i mean i think you know people just need to look at the figures of what's happening in places like greece investors the most extreme example the same things happening in italy and portugal and spain you know we see recessions in the u.k. the united states but this is a nine hundred thirty style dust bowl recession as are you thinking of these countries and it's it's completely crazy right it's really i don't know of all a lot of very pessimistic know it always happens when we discuss the euro i want to thank my guests here in the global policy for me and you just love it thank you very much and thanks for viewers for watching us here r.t. see you next time and remember cross-talk rules.

home. from.

home. breaking news this hour there's been an explosion at a nuclear power plant in southern france one person reported killed urgency crews on the site warning of a possible radiation leak. stronger relations for mutual benefit russia and the u.k. agree not to allow their divided opinions on the litvinenko scandal and the resolution to the syrian crisis stand in the way of the political and economic partnership. generating power of iran plugs in its first nuclear plant to the national grid to facility had to share it was built with the help of russia. and it will leave moves closer to the center of the eurozone debt crisis as its

crucial austerity package enters a final stage triggering a new wave of protests at the top spending cuts. four pm in moscow i match reza good to have you with us here on r t straight to our top story there's been an explosion at a nuclear power plant in southern france one person reportedly been killed several injured and emergency crews are on site warning of a possible radiation leak we'll bring you more on this news shortly. turning now to other stories that we're covering first on r t a professor of politics at the university of kent dr adrian pabst joining us live in london to share his perspective on the visit of british prime minister david cameron to moscow that day and we covered earlier here in the program so thanks for being with

us dr perhaps the leaders seemed satisfied with their talks and very friendly towards each other at the news conference do you think that this could be a reset in russian british relations. no i don't think it's going to be reset i think it's going to be more like a necessary normalization of relations have been very bad since two thousand and six and supposing of alexander litvinenko in london and there haven't been many bilateral meetings certainly not in moscow or london the g. eight or g. twenty summits we're not seeing a reset like with the u.s. and russia and the president obama what we're really seeing is the realization that the two sides need to agree to disagree and just move on cooperate in areas where it's of mutual interest it was a agree to disagree policy the only way that a cooperation can move forward at this point. i think so because the simply isn't the basis to resolve those outstanding issues we mentioned it being create you also mentioned syria in your introductory remarks these are areas of profound

disagreement as to how to move forward so i think it's best to just bracket them and. have a real rapprochement and closer cooperation areas where the two sides can agree trade. areas like afghanistan and areas like arisen and also international economic and financial reform. of the two leaders they mirror that they will continue discussing these so-called difficult issues how they framed it during the news conference i think it's possible to reach a compromise in the libyan enco case considering the clashing differences of the two countries legal systems. no i don't see any compromise at this stage because there is a clear constitutional. provision in the russian case saying that no russian citizen will be extradited and i don't think that britain's side now is really and it's a the sort of trial in russia were indeed in a third country so i think for the moment it's simply an impasse on this and is as

horrific and as difficult this case and maybe i'll sit there in from it can possibly hold back to that for relations therefore they need to simply put it to one side and and move on now turning internationally syria another prominent and thorny issue with the u.k. and russia where they don't see eye to eye what kind of resolution do you see coming out of the un if at all regarding a compromise between the russian position and the british position on that to be anything like a resolution one thousand nine hundred seventy three in the libyan case because russia and other countries fear that this will give a license to the west to intervene militarily should nato or indeed a coalition of the willing decide to do so it's going to be less than that for possibly more of this condemnation maybe a new round of sanctions may be targeting members of the regime more specifically than has been done so far really were a little real continue with your answer is there is

a real disagree that there's real disagreements on what can be done to bring this crisis to an end so far it seems to me that the president has put pads you take a tougher stance that it won't go as far as in one thousand seven hundred three residents like the beatles the world is going through some tough economic times right now do you think that that would be something that could bring the two sides together in a mutual benefit economically. absolutely because both britain and russia suffer from a lack of diversification just as britain depends too much on financial services so russia depends too much on certain natural resources like oil and gas so both economies need to diversify but this is not just a national issue of this is also a global issue we know that a huge imbalance is there's lots of hot money circulating that money needs to be channeled into productive activities in britain in russia and elsewhere and i think there is mutual benefit from cooperate and now it's like technology where britain

france that we help russia explore some of its natural resources we know this from energy and in other areas but also you know russian investment in britain is also important to all sorts of areas like civil aviation even the car industry where the two countries could envisage some form of technological exchange and i think we need to be real about industrial policy this is not just a service economy it's not just a natural resource the economy we need to build a high tech manufacturing in this industrial base across europe and it seems to me that britain and russia have a lot to cooperate on precisely in this field there were some concerns raised by the b.b.c. reporter at the news conference talking about the situation politically and economically in russia making it difficult for businesses to go in there what is your perspective on that and do you think that there is a good environment for british businesses to do business in russia. i think it's so often i think there's exaggeration on both sides i think the critics are wrong

to suggest that. corruption is so rampant no one can do any business at all and i also think without people who perhaps are slightly too naive were optimistic and one has to be very realistic and choose areas where there's so much mutual interest that possibly corruption and other problems will not be as severe as has been the case in other areas what this clearly needs is political leadership i think if there is political support on both sides for bilateral economic and trade relations then i think business will be easier without the political support until now it's going to be much much harder to do business in the markets this is not only true of russia the other countries as well i think really isn't really is the answer here no point in being too skeptical or too naive and finally briefly also this came up at a news conference do you think david cameron would immediately k.g.b. agent. well this is something he mentioned his speech at moscow state university no i don't i don't think he's really got the profile thought out so i mean having

trained in in public relations and having had a long association with the conservative party i think he's too much of a patriot for that but i think the same is true for someone i present would get if he has a background in law of cause and they both patriots and i think that's also something where they can agree. politics is very important in this world where globalisation and nationalism pose different threats to identity having patriots at the heads of countries clearly helps director at a bare dr adrian power and university of kent thank you thank you very much. has russia and the u.k. mull over their differences in approaches to the crisis in syria moscow steaming ahead with efforts to mediate peace russian lawmakers are hosting a delegation from damascus after holding talks with the opposition last week president bashar al assad's advisory says the country would appreciate a fact finding mission by russian officials with which moscow promised to send any day now anti-government demonstrations in syria have flared up in march with

a regime response since march with the regime responding with brutal crackdowns of these twenty six hundred people said to have been killed in violence there but russia wants the u.n. to take action now to push the warring sides toward dialogue saying assad and more time to implement democratic reforms the u.s. and allies want a more aggressive approach that will target the regime and i've already called for assad to step down. iran's bush era nuclear plant has been officially open operating and is now providing electricity to the country's national grid the first facility in the entire middle east region iranian and russian officials are attending the launch ceremony. marking the nuclear facility came online september third after a number of different tests were successfully completed with russia which helped build the plant will also provide necessary fuel iran will return spent fuel to russia to ease western concerns over the country's your rainy an enrichment program terra and once again stressed it's that tomic ambitions were peaceful and not aimed

at building nuclear weapons russia's energy minister praised the efforts and working together and promised similar projects in the future which finally. if you would just. give to those who read income people or it's win through difficulties some problems build in the plans and to do it can be brought to the results that are true in the attention of the whole world i'm sure. creating the station and developing the new clean energy projects will be distinguished the atmosphere we created while working together is. stay with us here on r t coming your way shortly we pay a visit to a sleepy town in italy that has its own rule or any even prince and so on the money i said plans to break away from rome. but first global markets one died monday over fears that italy's debt crisis is worsening as the country's fifty four billion euro are staring package goes before

the lower house of parliament the proposal whose changes to pensions government spending cuts and a special levy on the rich for more on this i'm joined by your husband over adult editor in chief of belgium's leading business magazine the trends who is live with us in brussels good to have you with us again the surface so italy is the euro zone's third largest economy should we be worried about its debt crisis and getting over getting out of hand like in other countries including greece for example as of course if the price is. also italy would be very bad but i think at the moment the main worry in the markets are concerned with the greek situation and even more so with what i would call the good german issue. mean the fact that you are going to strike the executive committee member of the european central bank left the central bank last week and was succeeded or will be succeeded by a career long financial diplomat so for the first time not somebody from the

bundesbank and that is clearly shown that there is a lot of disagreement at the moment in germany on how to deal with this crisis i think that's the major issue at the moment with respect to the crisis within the eurozone and we've heard growing opinion from germany over the weekend that greece should exit the euro zone is this the only solution that's left. yes i think so the greek economy is in an outright depression now g.d.p. is shrinking at the moment seven to eight percent on an annual basis unemployment is of peacefully at sixteen percent but in reality it's more close to twenty five percent what we hear from people from the i.m.f. informally is that the situation is out of control so there's no way that greek and greece can escape from this situation unless there's a somewhat orderly exit from the eurozone followed by a huge devaluation of the new greek currency ever greece does declare it

a thought what's likelihood of other states following suit well that will be the big challenge i think we have passed the point now where we can argue that we can save greece within the euro zone greece will ask to exit it can be organized in an orderly way but the risk is of course that there will be contagion in the direction of countries like for example poor to go maybe islands and of course i'm not even mentioning here that would be an enormous problem countries like spain for example . now the resignation of a central bank's chief economist being seen as a sign that there are divisions on one european leaders on what you do with a block do you think that the ship is sinking at this point or one of the options to rescue or from a collapse. well we're certainly very rough waters because it is now very obvious that bang the german central bank is firmly opposing the policy that the european central bank is following especially the buying of bonds of countries in

trouble like in greece spain italy and some others so on the other hand we see mrs merkel the chancellor merkel arguing that the euro will be safe that germany will stay in the euro but that's more or less not more or less but increasingly an isolated voice and i have the impression that mrs merkel inside of germany is more and more. floating your words an isolated position together with her famous mr schauble but the bundesbank public opinion both of them very important are more and more turning against the euro now some experts have also been saying all along that bailing out countries was the wrong thing to do do you think the time has come for more drastic measures yes indeed i think there are structural problems with the euro zone construction and the major problem is that we don't have

a political union so that there is no conversions in economic policies now of course you can create a probably the whole union overnight but that is more or less what markets are expecting at the moment so either we take the big leap the quantum drum like. the new. president mario draghi pointed out the last week. or we will have a major problem one coming after another all right you know how about overall editor in chief of trends magazine back a joining us. updating you now on our breaking news story the explosion at the nuclear facility in southern france one person reportedly been killed several injured emergency crews on site warning of a possible radiation leak the explosion followed a fire in a storage area for radioactive waste according to a figure a newspaper the plant is in the garden region it's a major site involved with the decommissioning of nuclear facilities and operates a pressurized water reactor that's used

a spokesman for france's atomic energy commission said that there is so far been no leak but a security perimeter has been set up we're bringing you more details on a breaking news story as we get them first the global markets slumped on monday over fears of italy's crisis worsening the country's fifty four billion euro austerity package before it goes before the country's lower house of parliament for debate proposed change the proposal includes changes to pensions government spending cuts and especially on the rich will go for more on this later here on r.g.p. but for now. welcome to phillip tino a small town in the middle of italy that also claims to be an independent principality and to prove it it's even started printing its own money a man on a new note says town mayor luken solari now self-proclaimed prince i guess everyone

dreams of being a prince when they're a little boy and so did i now i get to live that dream filipinos going solo in protest over government plans to slash council funding he wants mall towns to merge having the number of local authorities with a population of just six hundred filipino and its mayor for the chop. it's a terrible idea because it makes no economic sense we have everything here to be autonomous and besides the neighboring towns are at least thirty kilometers away so it's not practically possible it wouldn't even save that much money most regional administrations do nothing when she gets rid of them instead italy's in deep debt one hundred twenty percent of g.d.p. the second highest in europe but unions a furious with the cuts accusing the government of punishing those already at their poorest even some of silvio berlusconi's own allies now oppose them with amendments

piling up but filipinos fed up determined to be the next san marino a constitutional republic within italy that has no national debt a rare thing in europe the methinks the town can live off its natural resources of wood and water but currently profits go to private companies there are constitutional hurdles but since autonomy is not illegal it could just be a matter of time at the moment these nodes aren't legal tender they're just souvenirs but the plan is for two theory to be worth one euro and for this to be the only currency they could be spent in the shops and restaurants here business has always been so. in this sleepy town but shopkeepers hope the new money will bring new cash. i'm sure that once we start using the new currency the economic situation here will significantly improve it will have

a positive effect on tourism of course attracting more people to the town. far from being a p.r. stunt filipino means business and berlusconi knows it he's visiting the town later this month to stave off the rebellion but he'll have a fight on his hands phillip tino is the source of rome's water supply and the mayor is threatening to cut it off if he doesn't get what he wants either bennett r.t. filipino italy back to this hour's breaking news story an explosion at a nuclear facility in mark we in southern france for we're going live to our king is daniel bushell joining us in brussels. daniel so at this time has there we know whether or not there is a radiation leak or tell us more about that. you haven't been told or been only. there is no link.

why are. we are really you're. you're you're only going to germany and. france but it was. probably nearly all nuclear energy to fall through the green berets and we didn't have that there are going to. be a part of asia and. i'm going to be like. oh commented. british leader. all right is daniel bushell live for us from brussels and those details what check back in with you later. turning now to other news we're covering on r t has warned israel that it faces a growing regional isolation as the turkish prime minister heads for a visit to egypt recip tape aired over and is expected to cement closer ties with

cairo with both countries having recently strained relations with tel aviv on friday night a raging mob in egypt in capitals stormed and sacked the israeli embassy forcing its staff to flee had expelled israeli diplomats last week over the jewish state's refusal to apologize for the deaths of nine turks during last year's raid on a gaza bound aid flotilla the turkish prime minister says the attack was our policy but his country had chose to refrain from aggression middle east analyst jonathan spyer says the implications of the arab spring make israel's position israel's isolation unavoidable. it's important to remember that there are there a process is under way in the region right now which are in no way which israel could in no way really exert any influence on we are in the midst it might be said of a tectonic shift in the strategic picture of the middle east the government needs it won't suit continue to have a general atmosphere known simply to israel and so western and so is really rhetoric and at the same time in reality.