currency it less is guaranteed a new multi-billion year old value out the announcement sparked a massive selloff on international markets nervous investors sending the euro. saying with the euro zone debt spiral economists ario clamor explains what twenty twelve might bring for the struggling bloc. 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 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 fish call. a 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 the country is two different. countries are too attached 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 her 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 was really needed for political union is also in sense of society i think is not 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 then 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 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 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 politicians will agree on all kinds of things including transfer of power that was in conceivably before or is actually conceived 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 to 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 that 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 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 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. you know 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 but the greeks are forced to step out of the euro because this is an unsustainable . level problem is going to need to tyria. economy is going to do worse which also makes it more difficult for me to quit ereal and so it is simply not a sustained sustainable situation the best spreadsheet is to do what iceland did

from argentina bit has done so many other people other countries have done before is allowed to have their own currency devalue it from to make their country much cheaper and use that as a service to 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 as 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 of 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 at play out differently in the euro to hold on to the european union and especially to hold on to the 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 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. and it turns out this whole european story is a hard sell properties 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 very also resources will. suffer until 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 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 to exist among the sort of european establishment so if you walk around 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 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 the up you up the euro which i think we 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 fear 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 we 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 pretty 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 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 to instill confidence in the markets what role do you see the financial markets and banks playing in this dry crisis lest we forget that they had also that just gone through 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 economy hostage including the politicians. and then all the politicians are too scare it's for these banks to fill it is it's unfair it's unjust. and it's also dangerous for shits to say the military before we call means so that has to stalk clymer thanks very much for your time. i had a family i lived in a failing nice community it wasn't rich it was an upscale it was just like you know archie bunker's society ok then they started showing up what happened was my

company decided i could get cheap labor and they got rid of us. he was legally blind legally we have to get up every morning we have to go to work and you know we have to pay our bills and we have to do it and that's just the american dream and if you want the american dream you have to go by the last i figure it's here's one of the major trails in the united states. i watch and they run run down my property and something about this noise. bothers a little mean a cockroach from coming over the wire is protecting the country i'm the kind of guy who doesn't mindedness pants dirty so i come out here you know we're all immigrants as well that we all came from somewhere else. mission free accreditation free clothes for charges free. range minsk free risk free stews free.

download free broadcast quality video for your media projects and free media don carty dot com. party's top stories on oil prices at record highs as the e.u. says an embargo on rainy and crude may come by the end of the month despite fears over its impact on the global economy. syrian authorities announced they've freed over five hundred fifty political prisoners that have withdrawn security forces from residential areas as part of the arab league peace plan but opposition activists continue to claim the regime concessions are showing. great thread through a ban in europe the single currency unless it's guaranteed a new multibillion euro bailout the announcement sparked a massive euro selloff on the international markets with nervous investors tending to euro two record lows. up next the latest from the world of sport andrew farmer

is here on our city. hello there welcome to the sport 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 sam and you strike at two houses fifteen gangbang become a room 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 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 after covering 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 seven but are now just of points 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.

striker samuel eto who 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 sanctions 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 fever for 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 now 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 the sort of way of where you for your. picture are but doing yourself a bit. of enjoy this will fall over should be the. reason we were. what see also the difficult part is so i'm to get into the way for here in the language what i'm getting slightly better about is well not so that's going to say are you taking lessons oh i had one wish and there's a go enough that my but in this for us of what i want on the half. i was just as good because i'm a mother and every single day what's your typical day here at spartak moscow quesada estimated to be honest. 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 and. after that you know your state based or so you know you can go. oh yes football is

a good life obviously do you believe the 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 your one scene. you know that the way we started the first part the chairmanship was really really poor but i mean who's to say no because going out on the end of one between games you know the 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 since i think there's always there's 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. try to get an opportunity to tombo them to say no or so to show you because i think it was thing for me to to sort of move on was best for everyone but do you miss the old firm you're 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 i want to call me you know you're the best thing in football. to know for me it was probably you know a sunny afternoon at parkhead i saw that off in a pocket you know. 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 watch other big five miles well yeah of course as well as those home conflicts. i think the main thing that even i says it's been a we're just not going this year period show friends but. that's always a part of life. it must be odd to freshen up since before. our show over here and the russian resumes are great for me thanks so much for your time i'm pretty sure that for sure or at your 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 katter the world number three had knocked out russia genco in the first round and faced levine in qualifying good leg as india 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 to try and put an end to federer is 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 polish fire denis premo my downside so great pointy faced on route to an easy sixty sixty when standing in the way next is russian seventy because it got past the heart of the it. while it was a hard day's work and a half or 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 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 finishing up next is our bat i'm asked who received the walkover after russia's alexander retired. well known fees received for think out are needed almost two and a half hours to muscle germany's benjamin becker becky ridge ranked outside the top three hundred in the world that stretch mon face to the. in it in this grueling encounter the german battling back from a set down to force the decider which eventually lost seven five month lease the place to 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 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 was finished with the game 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. another 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 when it is that other star either bradley wiggins who is sitting on the right there cavendish won the sprinters green jersey at last year's tour de france and hopes to repay 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 printed bigger it's going to be thought it's going to take some real structured training some restructuring. everything is going after work perfect. for its physical bottom of why we tend to do it and finally there is a for. face back at the top of the standings in the dhaka rally nine time when the 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 to two key. leads his nearest rival. by almost six minutes in south african was third fastest

during stage four while on the bikes spain's defending champion marco might gain some ground on the oval leader cereal 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.

news today violence is once again flared up. these are the images. from the streets of canada. china operations.

wealthy british style sun. sometimes. markets why not. 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 in to conjure reports on our. soil prices that record highs as the years as an embargo on a rainy and crude may come by the end of the month that despite fears are worth on the global economy. libya's n.t.s.c. leader admits the country could be on the brink of civil war and calls for an immediate crackdown on armed militias that's as thousands remain behind bars over their previous political allegiances. selling on a time of disillusionment german voters weary of stale politics get on board a new idea the pirate party.