operated like that they count the salaries most of for the people who are more and the foreign banks take the losses so 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 are one big example and bet is ireland where the government early on guaranteed all bank did so and that 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 also shows which is in the country which are which is why i think those are both what is very important here is you act fast and hong kong and the baltic countries and stone you latvia lithuania and also

iceland acted whole and from have got to this balance right. in ireland in greece are examples of countries where the did the balance wrong and acted. too slowly. you have to think of what you are doing the politicians should take a substantial cost themselves 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 should lead to a sort of economic federalism undercounted that's a possibility but the central thing is that each count three is financially responsible and it's a rather funny when the germans who. ignored the stability and growth pact and the mask. criteria for ye of the year and when they are complaining about i

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 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 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 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 the macro economic policy.

has a balanced budget 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 the only prize will in all likelihood fall and that it's hard also be other 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 guy there who run the economy in this country this is you gonna fall. as 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 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 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 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 tackle for years will be continued in the future it's very difficult to to 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 is one of the specifics of russia this year two thousand and twelve is the election year english 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 dependent and 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 that 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 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 the. producer and all 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 climate and investment climate and corporate governance canvey things be improved then russia would have a wonderful future so when the russian 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's waiting for the mission to be undertaken so the question is as somebody said that this conference isn't off draw the war 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 if you want to have yourselves part right there john 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 anti application. i pod touch from the top story. on the go. video on demand. an r.s.s. feed now in the palm of your. question on the dot com.

pressure rounds of violent attacks in libya as could be loyalists retake a former stronghold with warnings that a new war is on the car. the gulf states withdraw their observers from syria as the e.u. slaps new sanctions on the troubled country. and paying for black gold with the yellow one india reportedly finds a way to buy iran's oil despite the new e.u. embargo.

is now just after six pm here in the russian capital this is r.t. with me rory sushi in libya loyalists to the late moammar gadhafi have retaken the former stronghold of bani walid after classes with the new government's forces fighting between supporters of the new and the old regime has been seen in cities all across the country north africa correspondent maria now explains. in the last few days the situation has been very tense and dangerous and with. the number of and to government protests and clashes between the pro-government forces and the forces loyal to the ousted leader more money could be taken place in different towns all across the risks are indeed very high that the country may fall into civil war the most of all and the most deadly incident happened in the town of bani walid. southeast of the capital tripoli once known as the duffys main stronghold

forces loyal to the former colonel khadafi managed to take control over the city and did manage actually to raise the green flag at one of the city's gates the green flag symbolize in khadafi that office ruling as far as the local officials have been reports at least five national transitional council people have been killed we can say for sure what was the reason behind this follows in front of all the fact we know that the same day the libyan justice minister announced that the international criminal court had allegedly agreed to let say for this one for the fish song to be tried in leaving and on the leave in war although it hasn't been confirmed by the i.c.c. itself judge ellis say that the violence and this announcement maybe cannot just hours later violence erupted in other parts of the country in the eastern part in

the town of and goes he wants known as the rebel stronghold and later on we've been hearing about the volunteers around people there on the capital they've said so several checkpoints around tripoli following the clashes reporters that but also we can see that then to see a warning that the country may fall into civil war it's the situation very dangerous trying to calm down fatah says and trying to take control over the tensions and not to haul them to escalate further. we've seen that. protest in benghazi when people have been demonstrated against. the m.d.c. just trying is trying to take control of the situation but unfortunately so far with little success. of his many financial reporting right meantime a former member of the n t c u says that he had won the council because a few loyalists could return to attack but that his concerns were ignored journalist patrick hayes says the new government is ultimately failing in his job

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 he was very much kind of put in place and then there were kind of helicopters in when gadhafi was gotten rid of so the thing i find very striking here actually is that the n t c isn't doing itself any favors in terms of pro-democracy campaign is also seeing off the. supporters as well and warnings for a long time that this could happen in bani walid people were saying very least two months we may get a pro get off the uprising here and the m.t.c. did nothing about it 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 three talk by cameron sarkozy and a bomber 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 they just basically puts the struggle of the libyan people on hold while they were getting rid of gadhafi. and from libya to that of damascus where gulf nations are pulling their league observers out of syria even though the mission has been extended for another month the saudi dominated gulf cooperation council also wants the un's most powerful group to put new pressure on damascus to end the bloodshed syria's foreign minister accuses some arab states of joining an international conspiracy against the country and of blatant interference in syria's untangle the fast damascus insists it will continue to take all necessary steps to protect the country against chaos sirius already rejected an arab brokered peace plan calling for president assad to step down while the e.u. is impose more sanctions to further squeeze the regime but as r.t. sara further for its ultimately the syrian people who end up there in the bronx. 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 for the people. due to the european sanctions in sweden against syria we don't have any tourist we don't have any foreigners the e.u. has known pays its eleventh consecutive round of sanctions this time putting a travel ban on people and businesses linked with the essential regime this we've been finding out the cascade of sanctions has swamp syria's struggling economy actually they're not going to see the syrian people in a way or another i mean if they have governmental sanctions to be imposed that they're business with the syrian government not with the people but the power is completely out of this door in the center of damascus at the moment and this is one of the main criticisms aimed at the economic sanctions this that this simply affecting the every day syrian people is that most businesses in this area now are

dependent upon these types of diesel generators that are needed. it was i think on an almost daily part of 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 is very expensive it 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 by ok 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 outside. the. group.

but this is the. market because normal cash money for money. and treat a recent form halfway through our interview the lights go out. oh. yeah. i have. but usually the stops. are on one. of the spy cools the dialogue is being political and economic pressure on the country that's been favored in attempting to resolve the crisis the arab league observers in mission has also made little headway say for that and 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 and much more forceful international observer mission if they've got nothing to hide if it's if they're genuinely not killing innocent people then one of the go to the the sanctions impact is heavily contested is this need doubt that they are putting pressure on an increasingly isolated government that many people in the country it will say made an already desperate situation even worse. damascus syria and britain is also encouraging the arab league to press the u.n. security council into action on syria western states continue to accuse the regime of cracking down on peaceful demonstrators which it denies saying it's fighting insurgents funded from abroad political analyst. says the opposition is becoming increasingly violent. of course there are certain parts of the opposition that should share in 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 collation 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 so really right now we're seeing i think many western powers interested in fomenting unrest and syria and so they'll turn a blind eye to extreme weapons coming in through borders like lebanon in turkey to create these very militant very dangerous armed groups that are determined to create war and peace in syria ten minutes past the hour here in moscow you are with

are still to come in the program one sided limits. very he's going to. discuss the state the principle of the june. extradition to the u.s. charges of breaching copyright it's all down to a british or american treaty that's being slammed unbalanced. iran has apparently found a way to stay in business despite a new oil embargo asset freeze india is reportedly agreeing to pay iran in gold for its oil instead of using u.s. dollars reports suggest that iran's biggest customer china could follow suit. reports from new delhi. india actually has already bought iranian oil using gold instead of u.s. dollars and this is extremely significant because every year india actually spends twelve billion u.s. dollars on iranian oil and now actually beijing is also saying that it might want

to jump on board with new delhi and also look into some sort of agreement with iran to continue to get oil new delhi and beijing actually account for forty percent of the imports of iranian oil the e.u. only counts for twenty percent obviously we've been talking about all week about this oil embargo that the e.u. announced on monday that they're hoping to roll out and put into place by chalabi first and obviously if new delhi and beijing find a way to continue trading with iran using gold instead of u.s. dollars this would severely hurt what the european union in washington is trying to do russia has also said that it wants to continue trading with iran using domestic car and seize instead of u.s. dollars obviously the point of the e.u. oil embargo would be to bring iran back to the negotiations table over its nuclear program obviously iran has said consistently maintained that this is

a peaceful nuclear program the west believes that they are potentially developing nuclear weapons so in response to the was announcement on monday that it will place an oil embargo on iran and iran has said that it's going to shut the strait of hormuz which is actually where twenty to thirty percent of the world's oil supply shuttles through in the united states is that it will absolutely not allow that to happen even sort of alluding to the fact that it could potentially use military force to make sure that that strait stays open moscow has also said that sanctions are an obsolete form of sort of punishing a country and that it's actually going to be counterproductive and another interesting thing to note here is that if beijing and new delhi continue to trade with iran with gold it's actually going to increase the value of gold and decrease the value of the u.s. dollar as the global reserve currency. he's prius rerecording right there from new delhi well let's get some more insight on this now and talk to christophe hall still a government consultant and political analyst and post em in germany i thank you

for coming on our team today as you would have heard in that report or india also says that it wants to buy as much iranian oil as it can so what is the point of the e.u. embargo if iran can just so easily find other bias. well to be clear ari this is not in favor of european interests what we are doing there with this stupid and senseless and also wrong embargo and what we clearly see is that this happens upon washington's wishes so we have a few countries greece in the forefront with twenty five percent of its overall oil imports in two thousand and ten coming from iran but and then we have italy with thirteen spain with ten percent germany next to nothing with one point nine billion barrels per year so it is just i think one two percent of our overall imports. in this regard some of the europeans have problems fulfilling the embargo italy got

a total exemption because they are not you know paying cash to iran but iran is paying its debts to eat or leave by delivering ois so that will continue anyway is exempted from the hole in bargo greece has a special time their frame main focus is not going on the oil embargo it's going on the debt crisis so we do have a lot of european mostly homemade problems now in addition to that we have problems with this oil embargo and as we see on the other hand. iran will do just spoke to some european inference iran will do quite well even under the embargo that will also lead to nothing much we have heard the. rumors and we know that all of the present faithful customers to iran or you said russia china india and many others to continue buying this oil and they were find

a way rest assured this is what the signal i get from tehran come let's just let's just get this straight here as you're suggesting this is a centrally a part of europe kalahari into washington's which is here you know. washington saying that an embargo on iranian oil will cripple the iranian economy here we have as you saying that this embargo severely hurt the european union economy do you think the e.u. recognizes that cheaper and vast quantities of iranian oil will now go to two of the leading economies in the world that have china and india. they have very well aware of it i was personally present when the deputy economics minister of iran was talking to you know foreign society here in berlin and the gentleman said very openly to the shocked audience that ok you don't want to buy our goods where the chinese will do so that's what do you know happened in that situation that there

was you know blasting silence in the group and i think everybody here is a we're so we have another ministers meeting in may's scheduled in may that was already you know fixed when they fixed the decision of the embargo itself so maybe in may you know we have some kind of reversal i don't know i'm not very sure in any case what we will have and that is very serious the military side of it so we had to have the. aircraft carrier groups passing in the persian gulf that is a serious story because from another ship the helicopter carrier in this group attacks are flown on iran and. i do apologize we're running very low on time here as you say there is an international pressure building up in the in the arabian gulf there french american and israeli ships as well going in as well if i may very briefly here israel said recently that though iran continue.