greece warns it will ditch the euro if it fails to secure a second multibillion dollar international bow out of the government talks and says talks with foreign monitors over the next few weeks will also decide if the debt revealed the country and skates a disaster of the fall. was staying with the eurozone debt spiral as economists are explains what twenty twelve might bring for the struggling blocker. well today we're joined by are you a climber an economist author and professor at the rasmussen versity in rotterdam thanks very much john mr clamor for joining us today for the first question is in one thousand nine hundred one you wrote it in the newspaper article that a monetary union is not sustainable cannot be maintained without a political union 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 fishbowl. a coordination but also a better social policy that would sort of supporting europe only in my system it is that this europe will not be able to form such a political union there is too much heterogeneity to 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 stand 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. a 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 part of germany form east german states. that are a real dire financial economic situation much worse than greece is right now do you notice anything about that in the rest of the world. because west germans take it as as self as something self evident that they are to support the east german states. there's massive transfers of money going from west to east to maintain a sense of unity and a sense of stability and therefore 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 and politicians will agree on all kinds of things including transfer of power that was inconceivably before or is actually consume inconceivable right now because people don't want to transfer the power but when the crisis is really there then i see them. being able to do such a thing but it won't result in others 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 and idea that i think that in the end to a backfire because if you make central this power too much then what we will see is is it means a lack of dynamics a lack of the flexibility. as we've seen already because it 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 bloc unless it clinches a 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 the 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 in greece there is still an overall the zire to hold on to the euro and the reason is that the greeks are very suspicious of their governments 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 the left right and center are preparing for. the fall out of greece for the cooks are forced to step out of the euro because this is unsustainable. their own problem is going to need to tyria. going is 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 spreadsheet is to do what iceland did from argentina that has done so many other people other countries 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 that the neighbors down to sell you have to sort of 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 that's 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 and 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 why 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 if 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. 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. and it turns out this whole european story is

a hard sell for property 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 sure to costing. money also resources possible sufferance and that also is again an illustration of a lack of political union like a society that will become an issue and at 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 that the country any country. that faith of any country is dependent upon the outcome of local quebec 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 brussels you feel like you are you the european union is for real but as soon as you 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 is not a real reality that people really live with now when we talk to experts analysts and economists to 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 get in 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 ask me to for that i see action an opportunity arising if we give up on an ideal that i think is an old fashioned one. and sort of people sells 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

current crisis lest we forget that they had also that just gone through the two thousand and eight financial 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 going you hostage including the politicians and then all the politicians are too scared for these banks to fail it is is unfair it is unjust. and it's also dangerous for should say debility of our economies so that has to stop are you a climber thanks very much for your time. wealthy british style. that's not on the title.

market why not come to. find out what's really happening to the global economy with mike stronger for a no holds barred look at the global financial headlines tune into cars a report on. the. line in motion would be soon which brightened if you knew about song from phones to impressions. please for instance on t.v. dot com. mission free credit patience free in-store charges free. range mentioned free risk free. to try

free. dumb old free blogs just plug in video for your media projects and free media oh god our teeth dot com. party's top stories boiled prices jump 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 over how the measures might ricker say on the west suffering economies of. syria and here's the u.s. of interfering already arab league observers misson that's designed to end violence in the country but after washington said damascus is not. complying with the arab peace plan about it sending an envoy for talks with the league. and greece warns it will do so euro differed fails to secure a second multibillion dollar international bow out the government says talks with

foreign monitors over the next few weeks will also decide if the debt riddled country escapes the disastrous defaults and. forces next year an artsy and reform. hello there welcome to the sport and these are the headlines don't panic manchester united boss cirrhotic ferguson says the league title is still up for grabs despite a shock loss to newcastle. plus playing again sam and you strike at two houses fifteen gangbang become really lifted by the country's prime minister. the nightmare for the nets 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 buyer for a late own goal from phil jones gave the home side the wind and united their second consecutive defeat but afterwards 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 in the other game bolton moved off the bottom of the table after covering from a goal down to win two one having seen goalkeeper tim howard schools the first with 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 seven 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 with only three points separating the bottom five take. the

striker samuel eto looks set to play for cameroon again after his country's prime minister helped lift his fifteen gang 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 byre a friend of their two has now stepped in and the ban has been lifted even though i could see cameroon reprimanded by fever for so-called political interference however whatever happens at the 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 now believe the start of august you came last last year how was your recent experience been so for over always been a group of joy. of enjoyed the sort of weird way for your obviously picture but doing your. job enjoy this will fall over should be always the. reason we were. i know what she always said that the difficult part is so i'm to get into the way for here in the language but i'm getting slightly better those who are not so that's going to say are you taking lessons oh i had one wish and couple days ago 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 a classical 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 and how your shoe and mine are well used and how your body is actually irrelevant.

after you know your state based or so you know you can go. oh yes it was a good life obviously i do believe a team can finally fulfil what they've been trying to do for years now and when the championship going to start the season that was of year when it seemed. you know that the way we started the the chairmanship was really really well 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 the second you know second top or second place is getting away with princess and so i think it's over so it's a very very young squad we have. you nothing over all of we have the first of the just 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. troy took it over to tom bowman to say no i'll stay so to show you because i think it was time for me to to sort of move on it was best for everyone but do

you miss the old firm you 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 bought 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. you know it doesn't get much better now but i just finally. on a lighter note is there anything you miss 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 branch other big 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're just not going this year period show friends but. that's always a part of life. it must in order to freshen ships of the. program which are over here and the russian receivers are great for me thanks so much for your time pretty sure all at your spot i say mcgeady settling in in moscow now in 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 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 said to be italy trying to put an end to veterans nineteen match winning streak in the quarter finals. 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 danish grandma my downside so great pointy faced on route to an easy sixty sixty when standing in the way next is russia seventy eight passed by the it. while it was a hard day's work and half or two frenchmen joe were free to stronger and gael moan

faced number three seed to tsonga was up against israelis flavia bowler and salvage the couple of set points in the first set before taking it on a closely contested tiebreaker to keep 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 bad m.r.c. who received the oct after russia's alexander retired. well known feast received fourth in cat are needed almost two and a half hours to muscle germany's benjamin becker back a ridge rank downside the top three hundred in the world that stretch month each to the limit in this grueling encounter the german battling back from a set down to force the decider which eventually lost seven five monthly's place the detroit city in the quarter finals.

i possible now more measuring has been taped on the russian owned new jersey nets in the n.b.a. they skated 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 nets 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 one you 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 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 of a star either 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 or figure it's going to be taught it's going to take some real structured training some restructuring record everything going after work. is physically bottom of what i tend to do 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 san juan. she told him petar hands on our lead his nearest rival defeated by almost six

minutes the south african was third fastest during stage four while on the bikes spain's defending champion marco might gain some ground on the overall leader serial display of france coma led the way finishing just over two minutes ahead of death rate 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.

world. science technology innovation all the latest developments from around russia we've got the future covered. would be soon which will brighten. song from the finest impression. start on t.v. dot com. the

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old girls. feeds now with the palm of your. comb. oil prices jump again as the e.u. moves closer to an iran oil embargo amid mounting concern over how the measures might ricker say. thousands remain behind bars in libya the family to switch sides of the supposedly right time as the transition to democracy reveals a violent infighting among the former rival. plus the increasing number of german voters found out with cast crises and controversy for now pinning their colors in the mouth of a new pirate party.