greece wanted to ditch the euro if it failed to secure a second a multi-billion dollar international government says talks with foreign monitors of the next few weeks for those who decide that it will be scapes disastrous to pull. or staying with the euro zone debt spiral as economist explains what twenty twelve might bring for the struggling look. well today we're joined by our you're climber an economist author and professor at the erasmus university in rotterdam thanks very much on mr glover for joining us today and the first question is in one thousand nine hundred one you wrote a newspaper article that a monetary union is not sustainable cannot be maintained without a political union well after all that said and done we have the euro exists and there is a crisis can that a political union save the euro at this point given the circumstances that it's in ideally. you could say that a political union could be formed to have

a stronger fiscal. coordination but also a better social policy that would sort of supporting dural only in my system it is that this europe will not be able to form such a political union there is too much heterogeneity countries to different. countries or to attach to their own so often t. they have different styles they have a hard time working together on international issues think of iraq. and so it will be very hard to to have one address that foreigners can call haven't emerged she is there. that they will speak with one voice that are willing to give up their very seats in the united nations and the i.m.f. and that they will speak involved voice it is at the moment inconceivable that

britain will give up their rights but also france is not even thinking of giving that up. germany will become too powerful there's simply too much that prevents europe from becoming one political union if you want a german chancellor angela merkel she said that political union is already taking shape is it though and what is she basic that's. statement on well from where we are we are making progress in the in the sense of suggestions of because these are suggestions or plans to have stricter rules and to enforce those rules and her view and in her reality that is working moving towards. political union but my critique is that what is lacking and what they're really needed for political union is also in sense of society i take as an example germany germany is a society how do we notice that germany is

a society the parts of germany form east german states. that are a real dire financial economic situation much worse than than greece is right now do you notice anything about that in the rest of the world no because west germans take it as as self as something self evident that they are to support the east german states those massive transfers of money going from west to east to maintain a sense of unity and a sense of stability and for a sense of society those conditions are not in place and not can be imagined to be in place in europe at large how realistic is this transfer significant transfer of powers to brussels spending powers taxing powers given that you have so many different countries there's resistance coming from different

places how realistic is it that it will actually happen the pressure is huge and the financial crisis is big and the euro threatens to fall then lots of things are possible and politicians will agree on all kinds of things including transfer of power that was inconceivably before or is actually can see inconceivable right now because people don't want to transfer the power but when the crisis. really there then i see them. being able to do such a thing but it won't resolve matters because it's it means that you put some kind of control in the hands of the few there in brussel but they don't have the power to control the financial market they don't have the the financial power to deal with these kind of instabilities and they don't have the political influence to deal with all the different interests throughout europe it is sort of an. an idea that i think that in the end to

a backfire because if you make centralized this power too much. then what we will see is is it means a lack of dynamics lack of the flexibility as machine already because takes forever to get these decisions and then take for ever to get through all these different parliaments and it takes even longer then to implement that i mean that we talked about long lags. and so it just makes the politics too complex the greek government spokesman said quote unquote greece faces an exit from the europe lot unless it clinches the deal on a second one hundred thirty billion bailout from its international lenders how much do you think they really believe in this threat is it something they really think is likely or are they using this rhetoric to gain support for pushing more sturdy measures i think that they use it now as an argument to enforce all kinds of cutbacks and to get popular consent which they need into in order to make the

policy effective i think that greece is still an overall desire to hold on to the euro and the reason is that the greeks are very suspicious of their government do so they desperately want to have european government involved in their country because they're sort of a countervailing power against their own politicians the same story applies to the italians. another issue is whether this is going to work i don't think so i think of the left right and center are preparing for. the fall out of greece that the greeks are forced to step out of the euro because this is unsustainable. they're going not to me going to meet. the economy's going to do worse which also makes it more difficult for me to quit ereal and so it is simply not to sustain a sustainable situation the best strategy is to do what iceland did and argentina

has gone in so many other people country. i have done before is allowed to have their own currency devalue it so to make their country much cheaper i use that as sort of the beginning of an effort to organize commercial activity at the neighborhood then to sell you have to recover that and sort of and one way to do it is by lowering the price which you only can do with your of your own currency and to make it much cheaper if you don't do it the only alternative strategy is the very painful one is lowering salaries and wages and cutting back and that causes a huge depression in the economy and a real harsh way of making that adjustment well let's talk about politics now the two main cheerleaders pushing the euro forward of course in germany's angela merkel and french president nicolas sarkozy now there will be the french elections in two

thousand and twelve that germany will have theirs and white thirteen what do you expect to happen in these elections and how would it affect the european union and the euro zone would we see a change in government a change in rhetoric that would eventually play out differently in the euro to hold on to the european union and especially to hold on to be euro. everyone has to make sacrifices and it's always possible the european interest prevails over national interest and there's a message message is very hard to sell to any lection time you see in election time the people usually withdraw behind back behind the border so to say and basically talk about national interests interests that are close to the people who are going to cause their vote. turns out this whole european story is a hard sell for politicians it's true in germany in france is also true in the

netherlands. and so politicians always have a difficulty of asserting the sort of common european interest. that is costing. money but also resources. sufferance that also is again an illustration of a lack of political union like a society that will become an issue and that the fate of european union is dependent upon local or national elections and that's of course crazy i mean you can of the magine country any country. that's faithful of any country is dependent upon the outcome of local elections that's unheard of and that illustrates once again the the union in europe is not all that strong and is forced it exists among the sort of european establishments so if you walk around in

brussels you feel like you are you the european union is for real but as soon as you are away from brussels and walk around in the country and the rest of europe you see the brussel is far away from from them. and it's not real reality the people we live with now when we talk to experts analysts and economists even if they are euro skeptics is the situation seems to have gotten so complicated that they would also mention concessions and they're saying that there are two choices now one is being forced into more europe more integration otherwise the alternative is a financial crisis are these the only two options left. i do think that if if you give up you up the euro which i think you need to do we will face a so-called crisis i mean all kinds of institutions will get into serious trouble banks will fail countries will look at the trouble unemployment go up we will feel

face a serious depression i think all that will materialize but what i also see is the possibility and that's what i would focus on of restructuring rethinking the way be doing things rethink also the way we view the economy focus less on economic growth focus more on quality being more concerned with sustainability and so if you as we have for that i see actually an opportunity arising if we give up on ideal that i think is an old fashioned one. and sort of people for the next stage now when we look at what politicians are doing right now it seems that they're walking on eggshells when it comes to dealing with financial markets and banks are careful not to rock the boat they're careful not to instill confidence in the markets what role do you see the financial markets and banks playing in this

right crisis lest we forget that they had also that just gone through the two thousand international crisis and they were painted in a negative light at that time well the terrible thing is that we see that one sector the financial sector is keeping the rest of the economy hostage including the politicians and all the politicians are too scared for these banks to fail it is it is unfair it is unjust. and it's also dangerous for should say the military of our economies so that has to stop are you a climber thanks very much for your time. commission free accreditation free zones for judges is free. range minister free. free studio type free.

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well. it's technology innovation all the developments around russia we've got the future. oil prices jumped again as the e.u. says it will decide by the end of the month whether to ban iranian crude imports concern is also mounting about how the measures might with the stay on the west struggling economies. syria accuses the u.s. of interfering of the arab league observers mission that designed to end products in the country itself to washington said last this is not complying with the arab peace plan and that it's sending an envoy for talks with. greece warns it would ditch the euro if it failed to secure a second multibillion dollar international bailout commonsense talks with foreign monitors in the coming weeks but also decided that the country escapes

a disastrous default. next it's the sports news with. hello there welcome to the sports and these are the headlines don't panic manchester united boss or unexpurgated says the league title is still up for grabs despite a shock loss to newcastle. plus playing again sandman to strike at who has his fifteen gangbang become a real lifted by the country's prime minister. nightmare for the next in the n.b.a. is the new jersey side slumped to their sixth defeat in a row at the hands of boston. but first manchester united manager sir alex ferguson says there is no need to panic after his side's surprise three nil defeat to newcastle a result which leaves the red devils three points behind leaders manchester city in the title race stemberg barr put their magpies ahead with his fifteenth goal of the

season last night and that was followed by a strike from your hunk of by the for a late own goal from phil jones gave the home side the win and united their second consecutive defeat but afterwards alex said his team had the experience to cope with the setback and we're still in the hunt for the club's twentieth league title near the game bolton moved off the bottom of the table off recovering from a goal down to win two one having seen goalkeeper tim howard school the first with a free long clearance for david in goal gary cahill got the other side this is how it affects the table united missing the chance to go level on points in the city why new castle stay seventh but are now just a point behind liverpool while at the other end bolton move off the bottom and are a point from safety but it is very congested down there blackburn prop up the table under just behind wigan it was only three points separating the bottom five team.

striker samuel eto looks set to play for cameroon again after his country's prime minister helped lift his fifteen game ban. cameroon's football federation imposed the sanction on you after claims incited teammates to boycott a friendly with algeria in november after disagreements over pay but prime minister paul buyer a friend of their two has now stepped in and the ban has been lifted even though i could see cameroon reprimanded by faith or the so called political interference however whatever happens as he won't be at this month's african cup of nations after his country failed to qualify. well over the last couple of years the russian premier league has attracted a growing number of foreign plays apart from air too there's also a spot at moscow's aiden mcgeady he settled into a new way of life since his move from scotland and as part of our look back at twenty eleven here's how he was coping at the start of the season you've been in russia just about a year and believe the start of august you came last last year how is your russian

experience being so for over always been a group of joy. of enjoyed this or that before we have what you for your obviously picture but doing your to. enjoy this will fall over should be the main. reason we were. and say also that the difficult part is so i'm to get into the way for here in the language what i'm getting slightly better about as well not so this going to say are you taking lessons oh i had one way. to go enough that my butt in this for a while one and a half. was just as good because i'm a mother and every single day what's your typical day here at the port of moscow quesada estimated to bonuses you come in for ten o'clock in the morning normally and then you see the doctor you get with him you take all these boxes in her your shoe and i while using how your body is actually irrelevant. after you know you're told to stay at the base toss him or you can call. us so it was

a good life obviously do you believe a teen can finally fulfill what they've been trying to do for years now and when the championship going to start the season that was of the ones in. you know that the baby started the pot the chairmanship was really really poor but i mean who's to say no because going out on and of unbeaten games you know of a spot which i'm sure up to christmas and then be certain you know second top or second place is getting away with princess and saying think this or was this a very very young squad we have. you nothing over all of we have the first of the just to put into practice you could have really gone to your pick of clubs why did you choose russia in the first place for me it was the chance to go. to complain about all the. try to get an opportunity to tombo them to say no so to show you because i think it was thing for me to to so i move on it's best for everyone but do you miss the old firm you are the thrill of the the huge game in glasgow of

course some things are a must the game you know what i see on t.v. and when i call me you know you the best thing in football. to know for me was probably you know a sunny afternoon at parkhead saw the earth in a pocket. and it doesn't get much better now but i just finally in on a lighter note is there anything you missed the bites about scotland and home you know they're the deep fried mars bars are they i am very proud or state of the bars of the ranch other five miles well if of course as well as those home comforts you must. i think the main thing that you must is it's been a we just are not going this year period show friends but. that's always a part of life. russian ships of the. border which are over here and the russian prisoners are great for me thanks so much for your time appreciate it for sure or if you spot i say mcgeady settling in in moscow now and tennis defending champion roger federer has become the latest top seed to advance into the

quarter finals of the season opening event in cattle the world number three had knocked out russia's new genco in the first round and face levine in qualifying good agassi emea the swiss master rarely ever troubled by his lesser known opponent is federer dominated left right and center to win in an hour flat sixty six agree the final score and that is set of italy to try and put an end to veterans nineteen match winning streak in the quarter final. also through to the last eight is top seed rafael nadal the spaniard shrugging off his somewhat slow start of the torment to blitz german paula fire dennis premo my downside so great pointy faced on route to an easy sixty sixty when standing in the way next is russia seventy eight got past. the it. while it was a hard day's work in doha for two frenchmen joe were free to stronger and gael moan faced number three seed to tsonga was up against israelis flavio bowler and

salvaged a couple of set points in the first set before taking it on a closely contested tie break to paula keeping the pressure on the song early in the second set but the world number six held firm courtesy of powerful forehands and killed off a match within the smash save six seven six six three the way it finished and up next is our bat m.r.c. who received the oct after russia's that. retired. well known feast received fourth in cat are needed almost two and a half hours to outmuscle germany's benjamin becker becky ridge rank that side the top three hundred in the world that stretch month to the limit in this gruelling encounter the german battling back from a set down to force the decider which eventually lost seven five monthly's place to the detroit city in the quarter finals. i possible now more measuring has been hate on the russian owned new jersey nets in

the n.b.a. they skidded to their sixth consecutive defeat in seven games so far this season it was a close first half of the boston celtics t.d. garden stadium before visiting net taking a one point lead before the big intermission rookie marshall brooks once again they go to man as import in a team high seventeen points but the home side pull off a sterling third quarter scoring twenty nine for new jersey could only manage twelve paul pierce inflicting the biggest damage and we finished with again leading twenty four as the celtics held on to an eighty nine points to seventeen victory their fourth in a row after losing the three eight matches of the season. in other news british cyclist mark cavendish believes he can succeed at both this year's tour de france and the lympics which will be held just six days later the reigning world road race champion was enjoying a photo shoot with his new team sky they've just named their twenty three man squad

for the twenty twelve season also in it is that the star idea bradley wiggins who was sitting on the right there cavendish won the sprinters green jersey at last year's tour de france and hopes to repeat that success but also things here have something left in the tank for the lympics road race in london which is being held less than a week after the tories ended. its physically possible why there will be room you know were put in figure it's going to be top it's going to take some real structured training some restructuring record everything is going after work perfect. for its physical bottom of why we tend to do it and finally there is a familiar face back at the top of the standings in the dhaka rally nine time when esther perel hand still has reclaimed the overall lead after the fourth day of the two week race in south america the frenchman clocking the fastest time from santa one. i'm petter hands on our leads his nearest rival. by almost six minutes to south african was third fastest during stage four while on the bikes spain's

defending champion marco might gain some ground on the leader of this spray of france coma lead the way finishing just over two minutes ahead of this break but still trials by over eight minutes in the general classification while a crash involving brazilian kleinman. dented his title hopes. so that brings us to the end of the sport for the moment we've got the weather coming up next here an arctic.

cold wind stream cascading from our. view is mesmerized. by this beauty brings down the speed of more than four hundred kilometers long. step along.

it's easy.

to. fall prices jumped again that's the e.u. moves closer to an iran or the embargo and they'd nansen concern over how the measures might say on the west. thousands remain behind bars in libya for failing to switch sides at a supposedly bright time as the transition to democracy reveals a violent infighting among the former rebels. plus the increasing number of german voters fed up with cash crisis and controversy without putting their colors to the last of a move.