within institute a financial regulation about the future of the economy and what can save it. hello yellow welcome to squad light. on our tape i'm playing my guest in the studio is. today's europe is torn apart by a great financial turmoil the situation is getting worse every day as greece is trying hard to determine its future public debt by cutting social spending leading just tried some demonstrations and catholics spain's rating has been downgraded and the forecast for france is also a pessimist the euro zone's healthier economies power pressed to prop up that we could neighbors some people start saying the wall street sharks initiated the

crisis to weaken the rival european currency so will the most time billion bailout loan to save european economy can do all strains really to wall street we're asking the head of the european institute financial regulation which is the think tank created especially to help overcome the global crisis. economists say many european countries such as greece portugal and spain have been overspending for decades as a result governments have to borrow more want to pay their existing debts and the new loans become more expensive the spiral is hard to stop and if one of the participants defaults it may trigger a domino effect that the euro zone strong european nations created an almost five hundred billion euro bailout fund to help out their partners but experts say about two trillion euros may be needed to avoid the worst case scenario.

thank you very much for being with us first of all we'll be talking about european affairs and you can parliament and the e.u. member states have finally reached a compromise on a set of rules which as we read. restrict practices. exaggerating financial crisis but i hear the hedge funds industry they immediately came out against the new rules saying i quote they increase government borrowing costs and reduce real economy investment so which side are you in this in this new culture that is my organization that you have been used to to financial regulation is part of a bigger organization which is perry's your old place which is the financial center of fairies and this financial center of prayer is try to be the link between the

financial industry and the uses of finance meaning investors corporates and issuers and in this capacity of yours lee we are following a very. strongly what's happening in this. craze is that started in the u.s. in two thousand and seven and it's clear that is the interests of all our members and all the french citizens in all the european cities and to find an answer to this critical situation it's clear that we are living in historical time and this time is not just a question of technical issues around finance. is is that this time is more about responsibility responsibility and leadership of. the political authorities of the world so not the responsibility of

the financial institutions but the responsibility of politicians in a way. because two reasons first this. crisis has been triggered in two thousand and seven with a surprise and a supreme obscures of just lee's a result of some abuses of the banks but is also the result of political will to develop. ownership in the us and try to finance that by three key processes that has been many ages by decentralizing and they have not been able to discover that and balances it created by this specific situation that then trigger a lack of trust in all the system now we are second phase of this same creases and because of this first phase government governance has to.

put a lot of capital in the industry and increase the deficit but those if is it or not you they were already there and now they are and system able then what the market that testing today is not just the fact that greek greece is a problem because we all know that greece is a problem because of their internal economical governance but what they are more testing is they had bt of the political authorities to manage the end balances and that's the test today and specially in europe in europe it is clear that we created a fantastic tool which is the euro. and. the logic would have been to create the conditions too of a. single currency before the single currency the conditions are how to manage

collectively our economies how to manage our budget how to manage the logic of fiscal construction and how to manage the gaps the competence of gaps between countries it's clear that without this management in the last ten years the gap increased between germany france and greece well you're talking about living in a historic time of increasing responsibility but the governments are different countries are democracies at least they're always they've supposed to to be responsible because they are elected but if we look at the occupy wall street movement in the united states the problem that people are facing now is that they understand that actually the decisions that matter are made by financial bodies the decisions are made not in the white house but are wall street and they are

irresponsible so people want responsibility for financial institutions is the time to talk about this. some decision and make it by the market to market guessing the market making the role the role is how to manage risk when there's risk to get out and when there is profits potential profit they will get in today what the market is telling us the market is telling us that the world has only just and sustainable and balance mechanism especially in europe with sovereign debts but in also in the u.s. this mechanism is market yet the world is not this one and is detecting denying that there is a problem. and then you have to solve the problem and today the problem is not just a production. bank level that was the case at the first phase of the crisis after the subprime that has been more or less solved through the g twenty in the cities.

by the way the g twenty initiative had been triggered by. our president sarkozy who today is the chairman of the g. twenty and i really think that the g twenty make a big job it's not visible but in fact there's a lot of discussion to convert but now the situation is clear is that the market is testing the capacity of political authorities to take the right decision and in europe we have a problem of governance and i told you we created a currency but we don't have the right make an ism to manage its currency all this and greece is is trying to be responsible it is implementing dress thing austerity . measures to to to. the big discontent of its own people do you believe in the efficiency of these measures that today are taken by the greek government to face this grazes you have bottom up initiatives and top

down initiatives the bottom of digital is that each of the european countries house to take courage is decision starting by greece where the situation taxation situation is critical then you have to take very critical decision and. they are in the process to do it and in a way they are forced to do it because we don't believe that greece can get out of europe that will be very densher also you don't believe that greece can get out of euro bet when i read the papers of financial papers i get an impression that greece will overcome the crisis and also get an impression that greece is in the center of a crisis if not the result of a crisis and once greece becomes better the problems will be solved is a true it's not just true because greece is. revealed it's an

indicator it's an indicator of the reason is not the reason we cater that because of the lack of the right governance we let some countries like greece and even portugal for instance or even run for different reasons to go in a wrong direction then the real issue of just lee we have to solve the greek issue and we have to first to solve all the issues that we have in all our countries where debts public debt is too high including france but the real issue is the proper governance of europe that's why the discussion between america and sarkozy last last week with probably. conclude to really a really important decision that would be probably announce in few days from now to reinforce the governance fedorov the kind of federal economic and for the governance for europe which is the condition for you all to start we are today in a construction in europe and construction is a long process and

a complex process and we are in the middle of this construction and obviously is not very comfortable and now we have to choose the camp which shows today to be in a euro zone's that we keep do your role and we put the right governance meaning more sharing of experience and in control on budget the budget policies and it can have good policies all we get out of you and we cannot get out of you says edward. managing director of the european institute of financial regulation will be back shortly after a break we'll continue this interview so stay with us don't go. wealthy british style.

like the. market why not. find out what's really happening to the global economy with max cons are the no holds barred look at the global financial headlines tune in to kaiser report on r t. but i find that i still struggle with that idea off by. yeah yeah yeah there's no way to see the film on screen yeah if you want to have sex go and have sex.

a very warm welcome to you this is your news today protesters on the wall street they are. ladies and gentlemen your chance to choose is to get the status of the human experiment. we put your business right you support it. was allegedly trying to make sense of the company and its arcane things as financial templates the research to maintain our confidence in markets and. wants to be seen trade imbalances recession look e.p. nations close to collapsing of supply clone foreclosed homes people. to fail aaa banks again feel like think if the us crash and seven. just like to an

explosion in st the i.m.f. spokespeople just programs increase the term economy. welcome back to spotlight i'm margaret of in just a reminder that my guest in the studio is one of the managing director on the european financial regulation. grew about the effectiveness of the plan for the euro zone bailout fund to directly guarantee bond issues what's your opinion on the measures discussed in the display. measures that we have to find

a way to head greece to get out of this. severin. dead issue and it's clear that. the implant. from the u. of incomes three of the eurozone. europe is a fantastic construction. it's a historical construction and you have to put that in perspective is what will happen in twenty five years when china will be there. india will be there there's no other choice for european nations to colonize to have the critical mass and be an actor of the global world and that is the objective that we have for our quest for our children to model and to go in this direction we have to learn this survey data process and it's difficult because even in a family you have some kids are doing the right thing and kids are in the wrong

thing but you cannot just get rid of your kids. most of the measures discussed today in europe for for how to tackle the financial problems are examples of in their own liberalism well the russian finance minister mr couldn't was awarded the prize of a best finance minister in europe maybe because he wasn't a liberal when he was one of you and he lost his job a couple of weeks ago do you think the russians made the right decision to to sack in their liberal. it's clear that. idealogies our with wrong you have to find the right balance and today the question is not the labor is only burley's in monetary but is it is just common sense and common sense today is again to find the right governance for europe and to go a step further in a figurative organisation meaning when you manage this family you have to be clear

to have the same rules inside a family and the same rule you have to implement enforced as will what happened with the year old before is that we were not able to enforce how. greece behave and how they manage their defeats and now probably will the decision that probably sarkozy will mention during the g twenty summit in cannes in november will be to take actions credible and to convince the markets that the governance of europe will be able to face the situation not just for greek we have to save the we have to solve the greek situation but further on we have to save the situation of all european countries none edging their public finance does that mean you're afraid of the domino effect which was there in the previous crises yeah it's likely you had a domino effect was lehman and the government the american government tried to make

an example recently man and we could be tempted to do the same thing with greece say ok we take an example of greece and we get rid of risk because they don't follow the rules but then you create a system make risk and a system equips greece portugal spain italy then but now the confusion about. greece. and italy and portugal the situation the domestic situation of the nature of the crises the greek crisis and the nature of this situation in italy are part of a radically different then probably there is no real macro economic reason to have this domino crisis and and that's why it's very important that the political decision will really. confirm a give trust to the market that we solve greece we solved the governance issue of. the federation of europe if we can say so and there would be no way to confuse the greece situation with the there it is the irish of portugal this is good news but.

the good news i would like to hear for russia from my country is will the ripples of the european debt crisis reach emerging markets like including russia. yeah that's. a very important issue i think again we are also in historical times because now we are moving to a poorer global organization and a g. twenty prefigure this milty poor organisation and this mythical organization will be driven by the force of financial markets because we need to finance the economy we need to finance the russian economy chinese economy and if you have good finance finance if you will for gross ok to do that it's clear that we have to rely on financial centers and that's why devotion projects creating moscow as an international interest center is very important because we need to have

a network of financial centers in the word but those financial centers to be sustainable and to fulfill their mission immersed absolutely share common practices common principles common rules that's why we came here in moscow to try to share this european experience and to see what are the best practices that could be conceivable to be implemented in russia all prime minister putin has recently spoken have been investing in russia to an audience of global chief executive spotlight. has bore. the first nine months of two thousand and eleven have seen the new one used to direct foreign investment into russian economy some see companies invest in russia have recently held a meeting with my dinner routine to praise some of the reforms my company nestle and all the members of the fuehrer are following with great interest the creation

of the cotton union of russia kazakhstan and belarus there is no doubt that the cotton union is a key factor influencing positively the general business environment for the fast moving consumer goods industry and companies and we. and pleased to see evidence of the positive evolution in making regulations governing pornographic and strategic minerals of course the sea owns used the chance to once again criticize iraq receive and speak of imperfections in russian laws but nevertheless showed their readiness to reduce their presence in the country didn't promise them stability in the russian economy which now has the experience of surviving a global downturn with minimal moore says and is ready to withstand turbulence in international markets and i made it about you know if we're going to support investors both domestic and foreign we will improve the business climate to the oath of investment we're especially interested in the last months in the knowledge

sector social and infrastructure big players seem convinced simmons has recently announced it would invest one hundred billion u.s. dollars in russia over the next three years and then efforts to expand its presence in the country for an analyst's evaluating market risks welcomed there nonsmoker of putin running for presidency markets reacted positively to the news with the main russian index rising two and a half percent two days after the announcement. i couldn't promise stability put in is stability while as many people think but is stability always good news for investment for for for for people who play on the market. stability is a necessary condition business sufficient. when we speak about finance finance mean trust. it means trust and also critical mass of capital.

and to build a distrust you need to start by the foundations and you have to appear as which f. is essential which is the right figure lation and credible supervision process ok and it's absolutely necessary for local investors or foreign investors to invest in a russian economy to have distrust distrust is based on compatible rules rules that are understandable from abroad and us of all the russian people and i was speaking about critical mass and it is important to create liquidity too and you made your financial market and this liquidity is big is under fact that most investment from the local investors in russia will be done in russia that will create. sircar that will give cross trust to the foreign investor you don't have just to

account on external foreign investors for the russian economy and what is happening today true devotion in. a group is. conceiving the building blocks of this relation in line with the global principles and i think i was impressed in the last conference in most of them that what voting group is delivering especially on the market infrastructure side the merger of stock exchanges the creation of a central depositories and a securities law is absolutely a precondition for trust and rub a financial system last question that may sound provocative but do you believe in the there is a plot against the euro from the people who are advocates of the dollar diamonds.

i don't like. the idea of plots. except the people who want to miami but but there is there is there is an issue behind that the issue is that the two biggest economy of the world europe and us in a bad shape and balances are significant in the u.s. and in europe and in the u.s. they have difficulties you have this debate in the summer between the republic republican and democrat and today we don't have a clear roadmap from the u.s. how to solve it and balance and poor billy. just to. try to focus more on the european issues. yes ok. yes they open issues should in fact find a way also to address the american issues thank you thank you very much for being with us and that so for now from all of us here just

a reminder that my guest in the studio was. far their long managing director of the your feet is issued our financial regulation spotlight will be back with more on the carbon title was going on in and out of russia until then. so you see and take him thanks to the to. the to the body.

british m.p.'s voted almost five to one against holding a referendum on the u.k.'s membership of the european union and also one hundred parliamentarians defy the prime minister david cameron in supporting the motion. leader's new move a move the rule is move could add his body to

a secret location for burial and from its to introduce islamic sharia law with international concerns over the direction of the new nation. whistleblower we can make suspense publication would be a deal because they should make constitute a lot of funds up to american based financial institutions refused to donations by credit cards and payment systems that president and founder julian assange mission was to point out against it located. there's more coming up now and a week story in delhi on the show from our washington studios and also we'll hear about reports the u.s. considered a possible cyber war against gadhafi regime in libya stay with us for that.