penalize first of all for for inadequately fulfilling their role yes they should be . i've been working quite a bit with latvia which has operated like that they can the salaries most of for the people who are more and the 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 and that was wrong so so so so the governments today have to balance i mean i mean they have to take into account the 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 you act fast and hong kong and the baltic countries and latvia lithuania and also iceland acted hard and foremost have the balance right. in ireland and greece are examples of countries that did the 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 the credit bill it doesn't should should be europe's transition to a common economic policy which they talk a lot these days shouldn't lead to a sort of an 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 we germans who have ignored the stability and growth pact and the master if the criteria for ye of the year and when they are complaining about don't do them 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 county 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 mame 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 they the the 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 tape 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 the only prize will in all likelihood fall and vetted structural heart also. weakness is subject to capital flows last year i said a capital outflow capital flight of eighty four billion dollars so these are the two weaknesses the oil prize and the cap. but inflows so also and while you were

advising president yeltsin and you got a guy there who run the economy in this country this is uganda was their opponent the communist leader of russia he's still the main opposition leader today and just yesterday he said on national television 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 of course what do you believe that. he has a reason to say so for these predictions all of this is just rhetoric. some stage we all should be reduced 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. it is only may be critical. today the balance is one hundred seventeen dollars per barrel of course you can have a budget deficit well rushes out a lot has also been downgraded from positive to stable does that mean the capital outflow which the russian leadership has been trying to to to to to tackle for years will be continue in the future it's very difficult to to to predict the capital of flows through because we are so many factors. so 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 and bush 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 partly 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 interstage with regard less or be 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 for 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 is as we hear on the gaidar forum that i'm here for it's all the time problem of the business climate and investment climate and corporate governance can be things be improved then russia would have a wonderful future so when the russians leadership is talking about the need that urgent need for modernization they're absolutely right is it. that it lives in this discussion now for two thousand and seven two thousand and eight and so far we have seen very few masha's so everybody is waiting for the mission to be undertaken so the question is as somebody said at this conference is no drama they want to do about how to get it done thank you thank you very much for being with us and just to remind you 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 yourselves part right there doc they'll be back with more force don't comment on what's going on in and outside russia until then stay on target and please take. down the official altie application to your i pod touch from the top story. on the go. video on demand. minefield costs and r.s.s. feeds now in the palm of your.

damascus rejects arab league calls for president assad to step down and form a new government with the opposition as a ten month long unrest in the country rages on. terror around stands defiant as the even close its tougher sanctions yet banning oil imports from iran response to its disputed nuclear program. derided for being one sided extradition or between the u.s. and the u.k. designed to help bring terror suspects to justice faces fresh calls for review that british anger it's one way street to american jails.

casting live from the heart of the russian capital this is r.t. syria has rejected an arab league call for a present asset to step down damascus criticize the appeal as an attack on its national sovereignty but something after months of its observer mission to the country he said all sides of the syrian conflict must lay down arms the pan arab. hand power to a deputy in forming a unity government with the opposition the ref it has been extended but saudi arabia has dropped out this point the league saying that the situation in syria has improved qatar has. calls for military intervention but is now ruling that out of the e.u. imposed a new round of sanctions on the syrian regime on monday that's what many on the

foreign politics but it's the people who are feeling the squeeze surfer through ports from damascus. trying to shine a light on what's happening in the country the observer mission looks set to continue now for another month but every day here is proving more and more of a challenge to the people. due to the european sanctions in syria to argue syria we don't have any tourist we don't have any form over the years no one pays its eleventh consecutive around the sanctions this time putting a travel ban on people and businesses linked with the assad regime this we've been finding out the cascaded sanctions just won't syria's struggling economy actually they are punishing the syrian people in a way or another i mean if they have governmental sanctions to be imposed their business with the syrian government not with the people but the power is completely outside this door in the center of damascus at the moment and this is one of the

main criticisms aimed at the economic sanctions is that this simply affecting the every day syrian people in fact most businesses in this area now i depended upon these types of diesel generators that are needed because power that avocado not make daily at people's lives where the not everyone can afford the back up at home with his wife and children and then says when the power cuts out the family simply have to make do generator very expensive costs like. sixty thousand three hundred pounds as i know it's not cheap and it's not just families and small businesses that are being affected oil production has fallen dramatically after an export in buggy and the cost of raw materials here has risen as one official from the chamber of commerce tells us a plummeting currency and rising prices have pushed many businesses to take their

trade and money elsewhere in the business of money don't put all the money in the business keep somebody maybe maybe. this is the. market because norm or cash money for money. and treat a recent form halfway through our interview the lights go out. oh. yeah. i have. but your who. stops in one. spy cools that it's been political and economic pressure on the country that's been favored in attempting to resolve the. the arab league observers mission has also made little headway safe then they

say they were there simply to investigate and to reports there have been numerous calls for even more observers to be allowed into the country i think the real issue is that the syrians need to allow in a much much more neutral a much more wide ranging a much more forceful international observer mission if they've got nothing to hide if it's if they're generally not killing innocent people one of the the the sanctions impact is heavily contested this need doubt that they are putting pressure on an increasingly isolated government many people in the country it will say made an already desperate situation even worse. damascus syria. where u.s. and its allies accuse the syrian regime of cracking down on peaceful protesters but the mask claims its fighting a foreign funded insurgency political analyst. says the opposition is receiving weapons from abroad and becoming increasingly violent. 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 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 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. for more on the arab world coming up in the program with renewed violence breaking out in the area we report on the latest fighting between duffey loyalists and interim government forces as fears grow that the country is descending into civil war. and when fear of lawsuits comes at the cost of human

life rescue services in the u.s. are criticizing often over cases where they looked the other way during emergencies . iran says an oil embargo imposed by the european union is doomed to fail on monday the e.u. delivered on its threat to banned the import of crude from the islamic state in response to its nuclear program the latest round of sanctions prohibits any new oil contracts but allows for existing deals to run until july the e.u. buys around eighty percent of all the range crude to iran has been told may be lifted if it returns to talks of its nuclear gen which the west suspects is a nuclear bomb but russia has dismissed the new sanctions on iran as counterproductive around only a threat to block a vital oil supply route in the persian gulf when the embargo comes into force the u.s. navy is poised to reopen the strait of hormuz by force if necessary communist asia

times correspondent ask about says iran is unlikely to back down. the p five plus one as it's called the five permanent members of the security council plus germany dish should sit down theoretically by the end of this month with iran in this whole thing was brokered by turkey to start talking again about the iranian nuclear program but i wonder if iran has any incentive at the moment any fact the hard line there is interest say exactly that. the sanctions and if they are fully implemented on july first we're going to close down this street 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 europeans the americans and europeans any really eighty million iranians are asking themselves what is our government doing to defend it in effect that we have the right to

develop a peaceful nuclear program and there is no if it is eighteen you we're glad you eat by national intelligence estimates in the united states that they are developing a nuclear weapon. well turkey has about to retaliate after the french senate approved a bill making it a crime to deny that the massacre of armenians by the ottoman empire nine hundred fifty was genocide ankara has already suspended military political and economic ties in paris with both houses of the french parliament to pass the bill still has to be signed off. on it's becoming more proposed to make it an olive genocide and war crimes recognized by french nor punishable by up to a year in prison turkey denies the massacre that's considered by many to be the twentieth century's first genocide executive director of the armenian national committee of america and panorama says the measurable force and i to nick to the atrocities. so many countries around the world russia canada france of course italy

sweden switzerland others have recognized this crime so we think it's a step toward mounting pressure increasing pressure on turkey to finally come to terms with their many genocide both truthfully and justly but think of the support for the measure came from across the political spectrum in france as it has in so many countries everywhere around the world that that there's been a vote the vote is almost universally going to see this crime recognize that the soul center of the mile is opera i think there's. an inclination among turkish politicians to play to the lowest common denominator there is a very hard line element of in turkey that abuse this is a matter of national pride there are others who see that turkey made need to pay for its crime and they're fearful of that but it's certainly the lowest common denominator and they've taken turkish politics hostage and sadly taken american politics hostages while president obama promised as a candidate as

a senator to recognize your new genocide and he immediately after getting elected brought that up so we hope that this reminds the president was obligation to his own commitments and also remind him of that he needs to do the right thing and the congress should do the same. but british students' fate hangs in the balance as he faces extradition to the u.s. institute a controversial agreement between london and washington that allows america to demand anyone be handed over to its justice system on the grounds of reasonable suspicion alone and artie's either bennett reports a treaty originally designed to deal with terrorist suspects now appears to have gone far beyond its initial remit. from running a website in his bedroom with links to pirated movies to up to ten years in a u.s. federal prison richard o'dwyer is the latest victim of the u.k.'s controversial extradition treaty with america his actions aren't even a crime in britain that counters copyright infringement in the u.s.

for the judge that was enough for richard's mother it was devastating. carry it. back up there i don't think that you brigid site t.v. shack was seized by u.s. authorities last year this is what you see on the home page now he didn't host any illegal videos itself but posted links to where users could find them u.s. prosecutors claim richard banked two hundred thirty thousand dollars in advertising revenue from the site although he's never been to america they claim his actions had a direct consequence is there to be treated unfairly slightly. here because he was just pro extradition well i've heard all about but i'm just going to go with the other side anyway so. all that work that we. deal with there when you are not sure if you were there last time before we started

a good strong argument that all went out the window completely. you know giving a no no we can't go. to. the u.k. u.s. extradition treaty was signed in two thousand. three supposedly to bring international terrorists to justice but many feel it's unfair to british citizens it makes it far easier for america to extradite someone from the u.k. than the other way around so far extraditions of five to two in america's favor better and british m.p. simming campbell's leading a review of the treaty by his party the smaller partner in the governing coalition what i argue for is that the position of a british citizen should be no worse than that of an american to and at the moment you think it's impounds i'm in no doubt that it's out of bounds richard was a innocently caught up in something which was never intended to deal with people like him gary mckinnon is case is another that's left british m.p.'s crying out for

change the asperger's sufferer has been fighting extradition to seven years he's wanted for hacking into pentagon files but he claims he was searching for evidence of u.f.o.'s a recent parliamentary debate on the treaty was so one sided in favor of changing it that a vote wasn't even needed but what's happening in there is still not enough to stop richard o'dwyer is pending extradition his case is certainly highlighted the need for something to be done but any changes could be too late for him his case is now in the hands of home secretary theresa may who has been accused of abandoning plans to change the treaty richard and his family will get the chance to appeal the decision at a higher court for their options are rapidly running out either bennett r.t. london. the trial date has been set for an american woman who shipped her adopted russian son to moscow with no more than

a note saying she didn't want to many more torry hansen place the seven year old transatlantic flight to russia all by himself claiming he had psychological problems and soon is being sued for child support by the world association for children and parents. the trial set for the end of march the boy remains in russia where he is receiving professional care and a special children's village the instant sparked outrage and new adoption rules between the u.s. and russia. remember there's always more news on our website r.t. dot com here's a look at two of the more offbeat stories getting attention this hour a case of mistaken identity find out how a botched russian police operations officers break up and the fun run. under with the rhymes to gay pride parade also online. sometime in the south carolina primary have received the support of almost a thousand dead is details and much more on our web site r.t.

dot com. in libya at least four people have been killed and twenty others wounded supporters of former leader moammar gadhafi seize control of the town of bani walid after clashes with the group the will to the new government the national transitional council's leader warned that the country was on the verge of civil war and the sea has already been struggling with violent protests in a stronghold of benghazi which forced its second most senior official to resign the demonstrators many of whom helped overthrow the previous regime angered by the slow pace of reform the lack of transparency in the handling of the country's assets patrick a reporter for the online magazine spiked says the worrying events in libya not surprising. 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 they were kind of helicopter didn't get their feet was gotten rid of so the thing i find very striking here actually is that the n.t. you see isn't doing itself any favors into the program. the campaign is also seeing off. supporters as well. warnings for a long time that this could happen in bani walid people are saying very least two months we may get a pro get half the uprising here and the m.t.c. did nothing about it they were warned now bani walid has 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 moments there was a lot of congratulates three talk by cameron sarkozy of barmer 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. where russia.