foreign banks take the losses. that's what you ideally should do but what you don't want is about the whole banking system falls apart that's when you have to bail them out but the we have one big example and bet is ireland where the government early on guaranteed all bank bet was wrong so so so so the governments today have to balance i mean i mean they have to take into account this security of their own banking system and keeping it stable and on the other hand they try to see the situation the streets what's happening with the people of the protestant and then also shows which is in the country which are which is why i think those are. what is very important here is very you act fast and hong kong and the baltic countries and stone you latvia lithuania and also iceland acted whole and foremost and be have the balance right. in ireland in greece are examples of countries that

did balance wrong and acted. too slowly. you have to think of what you are doing the politicians should take a substantial cost them selves and they should take sufficient measures so that the countries become financially sustainable or wise you don't get a credibility listen should should be europe's transition to a common economic policy which they talk a lot these days should it lead to a sort of economic federalism on the continent and that's a possibility but the central thing is that each count three is financially responsible and it's rather funny when the germans who. ignore the stability and growth pact and the master if you criteria for you after year and when they are complaining about it don't do. and when it was germany france and

italy that broke down the stability and growth pact to in two thousand and three and two thousand and five so they are the courses of the count and to euro crisis is and then they should take responsibility to up on themselves and not try to blame other countries well let's talk about russia russia is only partly part of europe burns kept losing your of the main main factories and you the government is in europe and the the elite feels itself more your appeal has has more european mentality that any than any other so what does it all mean for russia the this situation in europe will it will it hit russia pretty pretty hard or what do you think while russia is is a specific place. is good about russia is for macroeconomic policy. has a balance that it hardly any public debt and it has

a floating exchange rate non-secure do not get into a devaluation crisis again and right now inflation is down to five percent and these are the positive a point the dangers are but russia is heavily dependent on the oil price and if there is a serious european crisis is severely prions will in all likelihood fall and vetted structural heart also. weakness is subject to capital flows last year our capital outflow capital flight of eighty four billion dollars so these are the two weaknesses we all prize and capital flows but also in the while you were advising president yeltsin and you got a guide there you go there run the economy in this country this is uganda was there a pound the communist leader of russia he is still the the main opposition leader today and just yesterday he said on national television. in one of these

pre-election debates that the all prices are going down and the russian economy will collapse pretty soon if he doesn't become president well of course well do you believe that. he has a reason to say so over these predictions all of this is just rhetoric. some stage we all should be reduced by as it is now we all prize for the last year has been amazingly stayed. the most forecasts is about it will stay at approximately this level for at least the so it's not likely to. go for russian for countries like russia below below eighty. barrel if it falls below the two eighty or below them it. may be critical. today the balance is one hundred seventeen dollars. of course you can have a budget deficit well rushes out has also been downgraded from positive to

stable does that mean the capital outflow which the russian leadership has been trying to do to tackle for years will be continued in the near future it's very difficult to predict the capital flows to because we are so many factors the influence it's more a big risk factor then something that is predictable and politics has also had a very strong influence and russian economy this one of the specifics of russia this year two thousand and twelve is the election year in russia do you think what do you think will be the biggest economic problem in russia during this election year. i don't think that there will be big economic problems if. the biggest concern is about the corporate governance is poor in russia party

because the courts are not sufficiently the pen then if the courts get more exposed then corporate governance should improve and the very low valuations of russian stocks should should arise i think that there are substantial possibilities for improvement while the growth rate is generally expected to be somewhere about three poor four percent. very positive in comparison with the euro but of course harmful but what russia has been used to before the global financial crisis this is a pretty optimistic assessment from an informed person like you are. well i think what we're seeing now is that more checks and balances will intervene stage with regard lists of the exact outcome of a political crisis which i shall be careful not to predict well we're living in the

world of a shifting economic power from the atlantic to the pacific and this is obvious this may be slower or faster but this is happening do you see a place for russia in this process and what is the place from russia of course russia has one place today is one of the big producers or. in the world and the place that russia should to get is. one of the big. generators and realizes of human capital in the world so the question is if russia can move from being a raw material producer to becoming a sophisticated. producer and all the resources are here. what is really missing. here on the gaidar forum that i'm here for is all of the time problem of this climate and investment climate and corporate governance

can be things be improved then russia would have a wonderful future in the russian leadership is talking about the need that urgent need for modernization and absolutely right is. that we have seen this discussion now for two thousand and seven two thousand and eight and so far we have seen very few masha's so everybody's waiting for the mission to be undertaken so the question is as somebody said this conference isn't off the ball to do about how to get it done thank you thank you very much for being with us and just a reminder that my guest on the show was anders aslund one of europe's most prominent economists and once an advisor to the russian government and that's it for now from all of us here if you want to have your sense part right there john we'll be back with more don't comment on what's going on in and outside russia

until then stay on target and please take.

pretty free. free. free. free. free. free. video for your media project a free media dog are to. syria

reject the arab league proposal for president olusegun cede power to his deputy and the formation of a national unity government with the opposition. the e.u. slaps more sanctions on iran targeting the country's main source of income up oil the union has reiterated that the move is going to go shabelle provided brown halt its nuclear program which the west sees as a threat and returns to the negotiating table. and croatia says yes to e.u. membership but the board turn out for the referendum and violent protests to expose deep divisions within the balkan nation.

thank you for being with us seven o'clock here in moscow on karen taraji syria has called an arab league proposal to resolve the crisis in the. country a conspiracy the leak calls on president assad to hand power to his deputy and form a national unity government pending lections damascus slammed the plan as interference in its internal affairs and an attack on its sovereignty sara firth is in the syrian capital. likud president bashar al assad to step down and to hand power of his deputy they also called for the formation of a national unity government and that would be a previous early parliamentary and presidential elections now those calls have been

vehemently rejected by the syrian government here so you could play go into interference with the internal affairs really the sense here from damascus is that the government here are working on their own reforms they want the arab league mission to focus on their job of course the problem is you've got countries in the arab league like saudi arabia like qatar now seeing the sense that they're preaching democracy to syria when of course they themselves don't have democracy in russia is the stance is once again that this should be seeking resolution with alice for an intervention now i've actually spoken to the national coordinator council which is the opposition within the country they welcomed the maven again reiterated their felt that as long as there is no move towards foreign military intervention they're very pleased with the response from the arab league mission because you still got observers on the ground it's expected that that mission is actually now going to continue possibly for another month and possibly the end of

their powers and their numbers as well of course what you don't want to see happen now is that the arab league mission which is really the only route there remains a teacher seeing dialogue in the country to now have blocks put in its way so the question really is how to make the mission the observer mission more effective because as we've been witnessing in the past couple of weeks really at the moment in the country what you want to be thing is the sightedness and not further division. or civilization. or. going. to homes the conflict has moved ever closer to the country's capital and now many damascus suburbs are also embroiled in the conflicts between government forces and the armed opposition. well this is all that's left of many of the houses now inside just absolutely gutted it broken glass you've got bullet holes lining the walls

you've got close around the house where people have left them behind fleeing very quickly you can really see here the devastating consequences that this conflict has heard the picking up the pieces will prove easy amongst the opposition themselves there are worrying divisions and as the conflicts become increasingly violent there are now areas of the country where it's unclear exactly is in control what do the people here on the image i think with the syrian army having control or it's. not. a lot of numbers a number of so if you see the heart of who's in charge and so you know. the division the diversion of the stuff arab league observers look set to remain in the country for another month trying to build the basis for multi-party elections even seen by the international community or that you are where you are into

a position you have to put in your mind that you have to work with the other side working with the other side uses their look. of change with thousands kills bringing the different factions to the negotiating table is going to be a major task sara for. damascus syria. has imposed fresh travel bans and asset freezes on the syrian regime as punishment for the ongoing violence but as sarah marusek a political analyst from syracuse university says the opposition is also partly to blame for the bloodshed and that pressure should be put on both sides to start talks. of course there are certain parts of the opposition that should share the responsibility for the there are a good amount of syrians who are dedicated to peaceful demonstrations who have been showing up on the streets and have been you know resisting calls to violence but then there are also many dangerous segments of the opposition who have long used

violence we see this as more and more especially over the last several months with a lot of weapons coming in through foreign borders to the opposition that's becoming increasingly militarized and carrying out some very devastating attacks on syrian infrastructure syrian government institutions the police and also innocent civilians are getting killed in syria and so really the violence now is a two way street and it's really a failure of the syrian mission the observers if they're not going to the pressure on both sides it's unrealistic to force one side to make all the changes when there is violence coming from both sides what's going to happen to the silent majority of syrians who are not protesting are they going to be attacked by the more militant forms of protesters are they going to be injured in some sort of process that is not going to facilitate dialogue that's going to facilitate chaos. members have

voted to impose further sanctions on iran in an attempt to curb its nuclear ambitions which chakra maintains are purely peaceful the measures target the iranian oil sector the country's main source of foreign income banning any future contracts russia expressed its regret over the move saying it undermines diplomatic efforts to solve the crisis. has more. it's essential a total oil embargo it will have immediate effect on new contracts but that existing contract will be allowed to run for another six months they've also agreed on a ban on a gold and gold trade and other precious metals with the iranian central bank all of these of course aiming to financially and economically cripple iran over its controversial nuclear program with western leaders still insisting iran is trying to build nuclear weapons while terror run denies this now the e.u. embargo follow strict new way u.s. sanctions that were passed into law by president obama in january so as far as the e.u. is concerned by july it will be a full and total implementation of these new sanctions this is unprecedented in

terms of the scope and the desired a potential effect on iran but it is also one president in terms of its potential economic impact on the european union itself let's not forget the e.u. imports up to twenty percent of rain in all its second biggest buyer and one of the twenty seven the biggest buyers within that are elite spain and greece the very same countries that are now struggling to deal with that sovereign debt crisis greece in particular heavily depended on the radio oil with up to one third of its total imports from iran also it's relying on terror for easier credit terms so they will definitely have to find alternatives for these countries these are what the leaders will have to talk about how to cushion the potential economic impacts on the several member states and of course because of all the uncertainty oil markets have already reacted pushing oil prices up and higher oil prices will just mean higher prices of goods meanwhile prince britain and germany said they were willing to negotiate thank sions if halts tomic activities but columnist an asia times

correspondent says iran's patience is just about to end. he flies to the swan as it's called decide for and members of the security council goes germany does should sit down three or actively by the end of this month with the run in this will. get to start talking again about iranian nuclear program but i wonder if ron has any incentive at the moment in effect the hardliners into r.c.s. actually that. after the sanctions a nice day are fully implemented on july first we are going to close down the streets of hormuz as a reaction this is something that they need to see terms of their internal public opinion because they are being pressured all the time by the european americans and europeans and the really eighty million iranians are asking themselves what is our government doing to defend that in effect that we have the right to choose to develop a peaceful nuclear program and there is no if it is a view we're glad you by national intelligence estimates in the united states that

they are developing a nuclear weapon i mean and later in the program the twists and turns up russian politics as they were campaign intensified presidential hopeful vladimir putin wants to get tap on him a gratian. and out of libya where at least four people have been killed and twenty others wounded as forces still loyal to colonel gadhafi attacked the former leader stronghold of bani walid earlier the national transitional council's leader warned that the country was on the edge of simple war weeks of protests in the city of benghazi and forced his deputy to resign on monday the demonstrators many of whom helped overthrow the previous regime are angered by the slow pace of reform and the lack of transparency any entities handling of the country's assets patrick hayes a reporter for the online magazine spiked says the events in libya are not surprising given the fact that the council was not chosen by the people. now i find

that very interesting actually because well i mean the national transitional. council itself was very much something that was already chosen by the west not something that was chosen by the libyan people it was very much kind of put in place and then there were kind of helicopters even when gadhafi was gotten rid of so the thing i find very striking here actually is the entity you see isn't doing itself any favors into the pro-democracy campaign is also seeing off the. supporters as well warnings for a long time that this could happen in bani walid people were saying very least two moments we may get a pro get off the uprising here and the m.t.c. did nothing about it they were warned. apparently been taken so it's not surprising and it does seem like the m.t.c. is impotence and this is reflecting the needs and desires of anyone in libya at the moment there was a lot of congratulates really talk by cameron sarkozy who kept a bit of a distance but was still involved after the fall of gadhafi i think they're going

to be very reluctant to admit that what they didn't do was bring about democracy in the country. and in neighboring egypt the newly elected parliament has had its first session most of the seats are occupied by the islamist parties that clinched and overwhelming victory in the first post mubarak elections but as our maria financial reports many now feel they are just going to play by the rules set out by the old regime. there is a growing auction here in egypt already that these new polls and changes will actually not be as dramatic as people in the revolution demonstrators protesters have expected them to beat the muslim brotherhood's freedom in just a faulty has indeed won the first vote in post barak egypt mostly because he had voted for almost people old age how to. transition transition from ministry to civil always something people have been calling for have been demonstrating for since the supreme council of the armed forces took

power from mubarak last february because to them they say that the ruling generals have been actually representing the old regime something they've been gays and something actually the revolution has been designed to gets read off but even today we have many signs indicating that these women this new parliament the muslim brotherhood as well as some of the business section talk to one of those actually go in most law to cooperate with coffin that's why many people who have been able to speak to here in private road say they feel a little bit strange. croatia voted sunday in support of a bid for membership yes ballot however wasn't a solid one with more than half of all eligible voters simply ignoring the national referendum the country is now set to become the union's twentieth state by july next year but only after all the other members ratify the move croatia was split on

the issue with those in opposition saying there is nothing to gain from a bloc currently experiencing its worst ever financial crisis analysts say zagreb must focus on reforms to save the country's credit rating and boost the economy before they become a fully pledged member and as artie's tom barton reports the divisions are here to stay even after the vote. it is. violent scenes in the croatian capital it is the country's be the referendum but setting. me up for history being made behind me the police trying to push the protesters away as they take and see protest as a way situation in many states instead of in the creation capital and fighting has taken as being time believe that it is a while now. only had.

these anti protesters say the government is trying to suppress the dissenting voices they are joining would surrender croatia's independence to brussels yes i believe that they'll pull in another street nearby the foreign minister is trying to convince people that accession is vital for the croat economy that actually with the stability that scout collate it into the credit rating of gratian. that is translated into membership of the union critias budget would be in serious trouble everywhere you turn in croatia the e.u. is being discussed but whereas most of the political class no longer question the europhiles stance public views differ widely in this it doesn't tell you as we come into or see and touch all our fish and that's our biggest creditor you know if you have their affiliates there but they told us we have to bang the e.u. has regulations those they don't want to obey must stop trading here in memphis and

i think i have two sons turn employed and maybe because of that i would be prying a secret to most of the symbols were you know all the worries about sovereignty local industry and economic well being a former state and there are still some voices in parliament think the benefits of what joining it would be there were ninety. going with our heads high up we're going to already because our economy. non-existing our exporting is pretty bad are very low so we don't really have anything to offer. back out on the street the arguments for to not continue with for roughly treated you with such strong emotions it seems like this referendum. the nation's division over you are in the. top box. for many us foreign minister has been fired after making insulting comments about anti-government protesters calling

them quote violent slum dwellers protesters gathered in budapest to university square saying the dismissal did not go far enough and called for the resignation of the president this comes amidst almost two weeks of violent clashes in the country as the e.u. second poorest nation rumanians are facing wage cuts and tax increases as their country struggles to meet the demands of its international creditors. and now to paris where both houses of the french parliament have passed a bill making it a crime to deny the killings of an estimated one and a half armenians one thousand nine hundred fifteen by the ottoman empire twenty countries have already officially recognize the armenian genocide but the move has been strongly criticized by turkey which maintains the deaths were a consequence of the first world war around home pari an executive director of the armenian national committee of america says ancora has no choice but to ignore.