the tremors of the euro crisis have been echoing wildly inside italy's government spurring it senate to push through the country's harshness austerity package yet the nation's president has promised that once the lords passed prime minister silvio berlusconi will resign with his possible successor being a former commissioner let's get some more details on this now cross live to our correspondent sara furthur standing by for us in rome good to see you so the vote appears to have gone quite smoothly especially given the severity of the austerity measures being passed what can you tell us from where you are. well certainly it did happen rather quickly but that was to be expected at this point of course no one wanting any in decisiveness it will when it's the instant such a critical position now the senate passed measures fairly easily one hundred fifty six states to twelve and that bill is now going to pass to the lower house which is also expected to finalize the decision and part. that of kools will then pave the

way prime minister resignation and that could happen as early as tomorrow evening and we could then see the formation of a new technocrat government and now here in italy the favorite to take the top spot is the former. mary a month say now he's that much saved by not just the politicians here but of course by brussels and the usa needs as well he said described as being someone who knows the system inside and out and what they're really looking for at this point is someone he's going to be able to lead the new government in whatever form that will take them through this very difficult time and give a very strong signal to the markets that they've got someone in place he's credible he can be trusted and of course he can push through these very harsh austerity measures and you know they prefer extremely controversial in the past we've seen rising here in italy eva some of. the eighty hikes and pension cuts say be unpopular measures be deemed here in the country certainly amongst the political.

elise is absolutely necessary or so you mentioned former you commissioner mario monti coming in to the helm here but there are many saying that italy really is on the brink do you actually think so there's a long awaited reshuffling it was leadership will give the country what it needs to pull through this crisis. well certainly the markets are going to be looking very very closely now what happens say for the next couple of days as we said about that decisive action being taken it will say that when the new government does come in you have this heading that whether that is going to have the political will to actually be able to push these reforms because actually the not dissimilar to what was promised under palestinian government is just that these reforms have been long promised have failed to materialize they first say certainly that is a big factor of importance at the moment is sending a very strong signal to the markets but you know there are concerns certainly what a lot of people have been telling us and economists we've spoken to is this is by no means going to be a quick fix simply ousting the old government and putting

a new one in place well it might bring some stability to the markets in the short term it's not necessarily going to have a stabilizing effect that's hopeful kids as we said these measures do you still have to be passed now mary monti as we said they've not just by the politicians here that will save by the u.s. and leaders you also look to greece at the moment he's got former official of the ethiopian power and there's a lot of criticism from the people in these countries that what they're saying now is really brussels extending its influence in these countries and in the political sphere and that has proved to me unpopular say fun president of poland they also made a very clever chesney by appointing a senator for life now that's made him much more politically acceptable to the m.p.'s here and even for someone who could save it to run in the top spot but of course as we said what you know looking at is the. homa east the e.u.

officials people who are very very close with the process allays now in power these guys a year across they do you know the system inside and out but there's going to be a lot of questions about whether they're going to be doing what's in the best interest of the country or whether they're simply going to be marching along to the tune of the year is only to say that's certainly a big question mark at the moment but over the next couple of days you're going to see some very quick very decisive decisions being taken because italy is at a very critical point now we saw a lot of concern over the last few days about these borrowing costs soaring and that's really pushing its lease economy into a very dangerous situation indeed i had a little look at some of the situations that led to bringing it to this point earlier you can take a look at that now. the italian brand has always seemed to be going strong. to learn divest is an express ace. be it in fashion it's

a country that economy wise it's nice to teaching is best it forward. recently at least in this economy stagnating has now become the latest country to be dragged into the center of the eurozone crisis. italy has a strong economy and could have. been sorry better than it is now italy could now face a similar fate these countries having to see convergence see parallels despite being one of the year isn't largest economy we're not greece we're not greece because we have a lot of savings we are not greece because we have been very prudent in this recession we haven't done big deficits in this recession might not be greece but with a mammoth that soaring borrowing costs just how did italy and in this situation right now nobody's spending nobody's spending in all or all of europe consumers are not spending they are saving they're scared to death of what's going to happen meeting

your isn't demands to be. tough reforms it's been a large part of what's made with putin growth in the country so difficult hopes are now pinned on a new government being able to bring about positive change we have had too many years of leadership that was not credible outside and very divisive inside i don't think it's only an italian problem i mean there's quiet. for saying that mr berlusconi was not able to deliver what he promised i think there might be a transfer somebody else. but that's not going to be enough. we need support from europe otherwise everybody on its own and that's the scariest part with the situation in italy right now the u.s. is saying face its biggest challenge yet it's unclear whether they like details of the peaceful and culturally united europe can survive the failure to adapt and to find decisive leadership at this point and they. can really.

be. done with the fate of the eurozone and perhaps even the squarely in the hands of italy and greece concerns continue to grow but the director of studies at the paris institute of democracy and cooperation believes that too much blame for the crisis is being put on the weakest nations. these people who have taken power in greece and shortly to take our initially have never been elected these are men who made their entire careers through garnering important appointments in places like the euro in commission or the european central bank they have no democratic mandate at all and precisely what is so frightening about what is happening now after as the european union and the euro enters its death agonies because that's what i think it is is the way in which the european union really is showing and i say this without any exaggeration it's true nature as a dictatorship after all it is europe which has effectively commanded these two

prime ministers to leave office and really you had to leave office the moment he suggested a referendum on the debt package and berlusconi had to leave office the moment he said that italians would become poorer under the europe so we're seeing really a very ugly development of course the governments are responsible for the crisis but there is a code responsible element and that is the euro itself and they only need bailouts from the european union because they don't have the option of devaluation they don't have the option of managing their own economic and monetary affairs i am absolutely convinced that the euro project is at an end i can't say when it's going to break down but it is at an end yes there's been financial irresponsibility in greece initially but the situation has been made worse well catastrophic by their membership of the euro and as we continue to cover the ongoing euro zone crisis here on our tier we now actually crossed through live pictures of a look at the top of their most the latest

a greek prime minister now being sworn in as we speak or these are live pictures from the ceremony your seeing in athens here mr papademos is the vice president of the european central bank for eight years he was shortlisted for a greek premiership after the resignation of former prime minister george papandreou of course up and drove just a couple of weeks ago calling for a referenda. on the next round of e.u. bailouts he was then summoned to can by angela merkel and nicolas sarkozy and then suggested by certainly some sources to hand in his resignation again these are live pictures right here from athens as the new greek prime minister is being sworn in. and with europe's debt burden growing ever harder for the block to shoulder all eyes are turning to the east in the hope that china will commit as vos cash reserves to save the e.u. but so far its reluctance has been all too obvious the reasons why are one of the themes being discussed in today's cross talk that's coming your way. next hour.

every country goes after self interest and geopolitical interests as well no where near is cutting them strategic as china does and we've got to be clear that finding our moral hazard in keeping us behaving badly either in europe or the united states is not in china's long term best interest there it's only want to see the west continue to harm itself i mean who decides what's going to behave ok greg you want to reply. he decides to measure a very good question moral equivalency arguments really interesting until you come to face somebody who is truly evil we went through this whole same argument in the 1930's don't criticize the germans a lot of american companies went over there and set up business and said it's not our position you're. creating that board you're equating china of today to nazi germany of the one nine hundred thirty s. absolutely although i think you know china is some way worse.

and you can see across talking about an hour and twenty minutes from now here on out say nato may have finished its bombing mission in libya but now there's a full scale western invasion energy corporations are queuing up to do business with the new government which is rewarding the military victory with lucrative oil and gas contracts laura smith looks at how the harvest of war is being raped. first british bombs tourists apart now british companies will get paid to put it back together libya is open for business and u.k. firms are being encouraged to join the gold rush of relatively wealthy country with oil reserves and i expect that there will be opportunities for british. companies to get involved in the reconstruction of libya philip hammond is urging c.e.o.'s

and sales directors to pack their suitcases and head to the north african country the u.k.'s bill for its part in the nato intervention in libya is estimated at just under five hundred million dollars but according to the u.k. department of trade and investment the value of contracts to rebuild libya in areas ranging from electricity and water supplies to health care and education could amount to puts of three hundred billion dollars over the next ten years and the british government will make sure it takes a leading role in that just as it did in the war and that's raising more questions about the u.k.'s motives in playing such a big role in the recent conflict john hillery of war on want says it has shades of post-war iraq when companies from countries involved in the allied invasion were awarded all the best gigs.

journalist john pilger says there was evidence of battering before nato even got involved transitional council told the french way. they would give over forty five percent. of the u.k. department for trade and investment already has staff on the ground in libya ready to welcome british companies. warded contracts wanting to get in on the action shell and b.p. shares roos on the news they were talking to the transitional government and generic firms and mark macdonald also reportedly keen but the latter refused to put up spokesman when asked preferring instead to send basic statements which critics say is a new tactic to avoid defending their ethics it's better p.r. for them not to be involved in any form of public discussion of why that's what

they're doing around the world. to solve the conflict in libya it looks like an excellent investment hoth a billion dollars to oust a dictator with a return of three hundred billion in business contracts when it's all over now that humanitarian goals no longer need to be touted wall suddenly makes great business sense nor is smith r.t. london now a quarter past the hour here in moscow plenty more to come here on the program here including to the teeth syrian authorities ring the alarm bells over an increased amount of weapons being smuggled into the country to boost extremist factions fighting the regime. and we go deeper into the causes of a vicious circle in ukraine where political protests and brawls are a daily reality no matter who holds the reins of power. but you are in the security council is expected to review palestine's bid for u.n.

membership in new york by the motion was filed in september so much euphoria in the west bank for the deciding vote it may come as soon as next week. weighs up palestine's chances. palestinians have resigned themselves to the fact that it's unlikely they going to get the two thirds majority they need in the united nations security council for the statehood bid what this means is that they will not become full members of the united nations and the united states will not be forced to exercise its veto rights there are eight countries amongst the security council who have indicated that they will vote in favor of the palestinian bid these include russia china india south africa brazil levanon nigeria and gabon both the british and the french have announced that they will abstain from the vote there they will abstain alongside portugal and bosnia while germany and colombia might either abstain or vote against it alongside the united states now this radio leaves

the palestinians with two options the one is that they can still next week demand that the security council vote on the statehood bid this will force those countries who are not supporting it to publicly justify their position and the palestinians might go ahead with this although they know that they're not going to get that admission into the security council the other option and this seems likely is that they still take the bird to the general assembly what this will give them is upgraded observer status although they will not become full members of the international body this it seems a lot of pressure going on behind the scenes the palestinians have accused the united states of meddling and putting pressure on other countries not to support the statehood but you just need to look at the united kingdom as one example and here the foreign secretary william hague has said that it is to quote him technical judgment why the u.k. is abstaining from this bid now the palestinians were relying on the british to

support the bird and the foreign secretary has now been accused of being hypocritical and abdicating responsibility when you mention the e.u. nasco admission to the palestinians you need. the following that the united states canada and israel withdrew will stop giving funding to the bodies so much so that you miska has had to suspend temporarily its activities now that kind of pressure comes while israel continues to build settlements in occupied east jerusalem and the occupied territories so certainly while the palestinians a short time ago had a lot of euphoria that the international community would back the bid for statehood this kind of pressure going on behind the scenes seems to be paying off. reporting right now eighteen minutes past the hour here are russians calling on the syrian opposition to stop aligning itself with extremist gangs which are smuggling weapons into the country and only triggering more violence now this comes amid an increase in illegal shipments of arms ammunition and the military supplies from neighboring

lebanon over the last few months a professor of international relations are mark almond says that syria falls victim to lebanese political games. the people doing smuggling may be doing it for money but of course somebody is paying and i think there is ground thinking that in lebanon for instance the explosive situation there is being made worse by the fact that one faction of politics the sunni muslim factions prime minister hariri also backed by the saudis for instance is rancher see the full syrian regime because it's its rival and it supports its rivals has a law on the christians in lebanon who don't wish to see a revolution in syria bring to power a sunny fundamentalist regime which will likely be hostile to the religious minorities and so we are seeing there are cynical people who do anything for money we're also seeing people who say the way to paris with. you with r.t.

now the former ukrainian prime minister yulia timoshenko now faces new criminal charges this time of tax avoidance relates to when she was leading one of the country's biggest energy corporations are back in the one nine hundred ninety s. just last month she was sentenced to seven years behind bars for exceeding her powers when signing gas contracts with the rusher in two thousand and nine many countries condemned the case against him a shanker saying it was politicized and. reports it seems that in ukraine history is poised to repeat itself. it all started with this man victor. fist fights in parliament street protests and destruction of gas supplies to europe were common in his era as president and it kept ukraine firmly in the headlines the world's media had been having many sleepless nights reporting on the rollercoaster events in the country back then writer and journalist meeting if we didn't publish a book fun at all the major political players. those times are extremely fun for

the media the regime used the media is a drug this is science but if you do so you have to raise the debt every year because it's fun to watch when the temperature or. arises in politics but for society. which is the limit to list wildness to which society is matched with we surely. many now say it was the mass of you should get scared and see which helped which sweep to power and many felt his arrival would become a breath of fresh air centralizing the power instead of the economy where victory first priorities when he became president of ukraine for more than a year it had been relatively quiet here but the case of former prime minister unit some fourteen months into yellow which is presidency propelled ukraine back into the global headlines. the culmination of her trial for exceeding her authority while prime minister shocked many hardly anyone expected to machine code to land such a big sentence seven years behind bars. i want to point out

that the year one thousand nine hundred thirty seven has returned to ukraine and this verdict and the repression of the people we will have to be strong today i'm appealing to all the people of goodwill to all the patriots of ukraine defend ukraine chronicle for terry and regime and the lack of liberties from the lies and injustice. while the so-called joy of arc of ukrainian politics was stime traveling inside the courtroom perceiving supporters clashed with police outside. days later veterans of the chernobyl clear up stormed the parliament demanding a raise to their ridiculously low pensions they demolished everything in their pride attacking the police with blunt weapons growing social unrest scared the country's president when the. agencies tell me that people are buying firearms

and they are planning attacks on state police nationwide people have completely lost their shine conspiracy theories and public protests of late have created enough scandal for any media to be swamped with work and the chief editor of one of ukraine's leading news websites believes it could get even worse. the first year of human cognition power was to come because people expected a better life after the wild years you should because cadency was filled with madness but at least that regime was open and predictable and now we don't know what to expect tomorrow and anything like a possible devaluation of our currency can explode the country experts say ukraine may again quiet down for a while but with the euro twenty twelve football championship and a crucial parliamentary election looming the temperature of scandal will most certainly be rising again come next year. lexy reshevsky r.t. reporting from kiev in ukraine. that are plenty are going on in the financial world

today let's get all the latest now with you. thanks for your very warm welcome to the business program russia's entry to the world trade organization would obligate the united states to establish normal trade relations with moscow barack obama has called for a cold war era provision which restricts american businessmen from working with certain countries to be abolished the jetson than a commandment is suspended every year with russia but it still formally remains on the statutes. basically u.s. companies don't benefit from the expression of russia from the lower tariffs and the improved administrative procedures until the u.s. congress repeals tax advantage so it creates a lot interest for appealing jackson verdict in the us but it's a matter for congress not the administration so obama can't promise it but i think

that doing very likely to see a repeal of tax invited following russia's deputy accession and president michel medvedev says russia's economy is in a stable position compared to other g. twenty nations he made the statement while visiting the far east and sitting at home. support plus was that on the economic situation in our country looks better than in many european countries disappoint recent difficulties we have managed to achieve fairly rapid g.d.p. growth this year it will reach four to four hundred percent while in europe and the us g.d.p. growth will range from zero to one percent this year we will also have the lowest inflation in the last twenty years of around seven percent but i cannot say we are protected from danger we need to cut our dependence on fluctuations in commodity prices and develop the industrial sector. economy to the public at the markets now stocks are rising across europe after the toilet said it approved an austerity

package raising optimism that the euro area second most indebted country will contain the debt crisis but here in moscow the markets have reversed from early gains and trading in the red the south both are testing the bias it's but to negative. here's a look at some of the individual share moves on the market since energy majors and banking stocks are low oil gentle coral is losing more than two and a half percent basically it's also lower about one percent and all the metal is flat to positive gaining momentum on higher gold box. the russian court has handed all major b.p. aware in its legal battle with minority shareholders it has russian oil vait venture ten k. b.p. the court rejected two claims for around sixteen billion dollars minority shareholders say they suffered financial losses by being excluded from a strategic alliance between ross neff and b.p. to explore the arctic for oil that deal was blocked by p.p.s. russian partners in taking on the grounds that breached their shareholder rayment

the minority shareholders say they will appeal the project. russia's heavyweight carmaker after the us is moving into kazakhstan the company has agreed to launch full cycle production. with local call farms. it will take one year to design deploying time to another to build option for years ninety thousand cars should be rolling from the new plant and it's hoped the project will meet the growing demand for cheap cars and russia and central asia the companies say the four to twelve acquire also been in dollars of investment. that's it from all europe today for more stories log onto our website archie dot com slash business.

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