the. monetary fund. is this last the country's education system examine the health care and laid foundations for a new housing policies the first lady's pre-election purse for the reports and lays out his plans for social reform it writes the article titled building justice focuses on providing better living conditions for russell's most vulnerable lies plans to raise salaries for teachers and doctors increased pensions and welfare handouts for families with children more children is also about to solve the country's housing problems by twenty thirty political analysts need to be involved with the and moscow says group those promises are aimed at russia's majority. my hope is that the future no understands that he's an accurate it's not a reach you know reach see to people he's a little trip these are the real russian middle class you know people who are

thinking all to leave in small towns who have a really hard time to their marketing corner in the u.s. so i hope he's an economic. leader or more to the left you know we have a former finance minister could we go different for the rates now if we believe want to trade rates he wants to give you the states policy more to use which means you know the mass of the russian people. well head over to our teams our column for the latest updates comments and videos as well as the stories you might have missed on the air here's a hint of what's lined up for you online today for your photos from japan rising to his feet once again eleven months after the devastating blow by the elements for fear of destruction was on for a pair. and sky high ambition for russians would be aviation capital as the city that built one of the world's largest planes throws down the gauntlet to its

competitors. but the spirit of the twenty twelve olympic games may now be marred by a sponsorship deal with dow chemical the company many believe owes a moral debt victims of one of the worst ever industrial disasters in bhopal india . looks into the toxic legacy that the games are adopting a new controversial partnership. organizers claim is the greenest most sustainable a limb pick games ever but a poisonous cloud of controversy hangs over london twenty twelve because of links to this gas leak nine hundred eighty four one of the worst industrial disasters of all time the left

a toxic legacy still claiming lives the company responsible zahn now owned by dow chemical a major olympic sponsor meredith alexander was part of the game's effects watchdog but is just quit in protest all of it is supposed to be about us and instead all of us are going to have the toxic. chemicals. fifteen thousand people died when a poisonous gas leak from a factory in rural india a subsequent fall out killed another ten thousand congenital birth defects in the area ten times the norm in the rest of india for always ten of the time the gas she inhaled left permanent damage and as well. how it would open fire and the money's been. fair i got just one thousand dollars compensation part of four hundred seventy million dollars payout in one thousand

nine hundred nine by union carbide factory owners dow chemical company in two thousand and one but denies any lingering liabilities but the indian government disagrees demanding dow stumps up one point six billion dollars to clean up the contamination that lives on people's building that what girl that had been. practically. born with is people have more ground there is. there is there is god have a problem with their periods or kinds of issues that have health. it isn't blood you see that has been left behind this was an attraction dow chemical is paying for the fabric that will be draped around the stadium olympic rules forbid any advertising during the games itself but dow is allowed to splash its logo all over that. before the games actually begin but it's now said it's not even going to

do that says it's nothing to do with the protests but it does mean it's paying seven million pounds for something that won't even show its name but dow will still be able to call itself a sustainable a limp it partner and organizers say their conscience is clean supposedly thanks to a green light from the ethics watchdog absolutely i did not agree with that it was the question was asked to look at the process and there were discussions within the commission and i lie self-centered a lot of evidence. and then i was shocked to see a public statement come out i would never have signed off that statement dow chemical refused to speak to us so did london organizers instead they issued this statement from twenty twelve chief george code. i absolutely stand by your approach your man process now we're just in the most sustainable solution to our rap and

we're comfortable with that a boy called from indian our fleet has been called off but india is a limp it committee is still demanding down to be dropped just six months ago it's unlikely they'll get their wish leaving claims of a sustainable legacy severely in doubt by the bennett london. well as crosstalk is coming up on r.t. in just a few minutes but before that let's get an update from rena the business that. hello and welcome to business here on our t.v. agreed that problems may have come one step closer to resolution as the country approved even more harshest threats and measures save the nation from bankruptcy and this is sort of vote paves the way for the country's european partners and i.m.f. through least one hundred thirty billion euros in new rescue loans greece's this reply and forcing them to have europe on the march twentieth and needs the bailout funding in place to avoid

a devastating default the country's loan package is expected to get final approval on a eurozone finance ministers meeting of this wednesday. let's take a look at the markets that will solve what exchange rates the euro is gaining value on easing fears over the crisis in greece of course and stronger well this notion of the ruble higher against both the european and the u.s. currencies talking about oil let's take a look at what's happening there crude o'brian struggles to greece's parliament approved austerity measures easing concerns that europe's that crisis will worsen and curve commodity demand light sweet is trading close to one hundred dollars for a barrel while the brown plugs are old one hundred eighteen dollars a year that's where we can see that investors are feeling more confidence about the group that situation the foot sea and the facts are gaining over a half a percent this hour puts it into prompter sides let's have a look at here in russia what's happening in the markets have managed to recover

from friday's losses both abortions are gaining in the r.t.s. over two and a half her size and look like the sour. times have a look at the index movers on the my sex gas problem is often not so new since european market share grew by look for signs which wants a twenty seven percent last year drugmaker form standard had slipped back into negative territory once again and that's despite the company increasing revenues pile before deeper side to round going to have the. in dollars and two thousand and eleven dollars though there's also lower on news merger talks between the company and another buyer polymath all have collapsed. easing concerns over global growth have made many investors turn against the emerging economies and russia so is among the apparent i with the sherries capital flow into the country reached the mark of one a billion dollars on average for a prairie i was expected to strengthen after the presidential elections in march they also add that most russian stocks are probably at the lowest level in three

years but this of course follows last year substantial capital outflow of over eighty four billion dollars. but on the outside russia's fast growing food retail market which keeps on luring foreign investors the sun several eleven on the world without food chain is thought so we are not the market that's according to media reports the company hasn't officially confirmed the rumors but last year the retailer said its parties were brazil and india analysts say that seven eleven will have a hard time with a pliers to develop a food chain in russia alone they add that the most logical move would be to team up with an existing market player well left kos is the former chief of russia's biggest retail group x five and now the senior vice president paul dart told us they believe sir just a couple of ways to answer the country's market at the moment. all of the way war and from russian market for you. look at least visible in the market or program for

leadership position is a vision of some of existing players. just more solution where you don't need your stores it'll store i think we through next year from other companies will think about russian market from truly really to win through america. whole business looks the sound i call occurring on a cattle have another update for you in about fifty five minutes i me says that for the headlines. the.

resistance. to the culture. is clear. some resistance march. could take three. three. three. three. billion dollars for your media projects to see beyond the target.

was the same of dark colored by the hour or so must have been some of the start no shortage of prosperity in the slashing of budgets of the shrinking of the welfare state generate jobs and returns to. here with our line from moscow are on syria brushes off fresh arab league initiatives targeting the also the regime by washington as we limbering up for military action. out of the grooves truck horn in new austerity measures as the city explodes with rage over what protesters say is a sellout of national sovereignty to foreign interests. and tainted by association the outputs of london's twenty twelve olympic games are undermined by a controversial sponsorship deal with a chemical giant linked to the infamous cold called the soft serve which claimed

tens of thousands of lives in india. next starts his cross-talk where peter gallon his gas tackle the crippling austerity being imposed on the people creates. technology innovation. relevant to. the future. hello and welcome to crossfire computable in these hard times there is no shortage of austerity in the slashing of budgets and the shrinking of the welfare state

generate jobs and returns to prosperity and is the pursuit of posterity carelessly at a democratic. process cost already measures around the world i'm joined by two people mildly in the london she is president and founder of principle alice asset management also in london we have fragged his close the loop a as he is a senior lecturer in international business at the university of kent and in new york we cross to dimitri papa dimitrios he's the executive vice president of bard college high focus is crosstalk rosenfeld that means you can jump in anytime you want me to if i go to you first the new york can our stary bring back prosperity because we have unemployment is a rate increase particularly in the euro zone and if the prospects for employment are pretty bleak how can you have prosperity when there's so much unemployment and people would say austerity creates unemployment because of the loss of jobs in the

public sector. blindness the. good. climbing moment or a declining economy is not the right medicine clearly perspective he can only occur when there is an increase in demand an increase in demand if he doesn't come from the private sector you need to come from the applied public sector so therefore when one talks about us you want to not be as general this existence there if you can't bring me clearly or blame and rate of over eight point three percent as it is in the united states cannot happen by itself when you buy the private markets unless the forecast showing that the economy actually will grow by big growth doesn't come automatically and we have seen that in europe as well whether it would be in the southern tier southern economies in europe or even in some of

the northern problems france and germany is actually experiencing some declining trends ok people what do you think about that i mean i mean we see us carry it with a vengeance in europe and we can go from southern europe not all the way up to germany the french are be experiencing it as well how can what is this the right formula and dimitri says it's not the right for me and to bring us back to prosperity because i want more and more people are just being a misery. yeah well i think look the bottom line is it's really interesting people won't agree to us territory or comply with us terry if things are getting better you kind of need to be in bad times to get people to understand how serious a debt problem is and that it needs to be addressed i mean nobody was interested in addressing the debt problem during the boom it's only during the bust the people start to understand why but it is true that austerity doesn't alone create price prosperity what does create prosperity are small entrepreneurs and this is really

important two thirds of the net new jobs in all industrialized economies are created by companies that employ less than fifty people now when government is shrinking this actually does create some opportunities for the private sector and new york city recently announced that they can't afford to keep the public buildings clean anymore so they privatized the contracts so some private company got a five million dollar contract i'm all for that but does it create prosperity overnight no and doesn't create prosperity by itself definitely not it's what creates it is innovation and change but the fact is that when you have spend and you earn you can't make your way back to prosperity until you fix your debt problem that's one of the reasons we can't fix the debt problem by adding more debt to it it just pushes the problem into the future so it's not the key to growth it doesn't make growth happen but you also can't have sustainable growth if you don't do it ok if

sailing procures goes what do you think about that what is to formulate and where does austerity play in all of this here dmitri things we're doing at the wrong time it's very very interesting observation what do you think. well i think i think both speakers had some points were very very important yes dimitri made a point about growth and obviously we need to always remember that that is not just an absolute number is basically as a proportion of the gross national product of its country and then i think people mention one word which is really really crucial which is innovation i think what we're seeing though at the moment and the main problem that we're seeing at the moment is the austerity is not equally distributed amongst the different parts of the population so effectively you get some people paying more than others without necessarily deserving than and the other thing is you you you apply austerity always on telly and this is going back to what it was said about innovation you

apply a steady result only you achieve nothing and the government will still need to build infrastructure the government will still need to educate people because that's that's the basic role of the government and this is how through the upgrade of human capital you can actually create people that small and medium enterprises can then employ and innovate and create new knowledge and take the economy forward so i think the problem is not as simple as you know we need to spend more money or we need to allow small in these small or medium enterprises to grow i think what we're liking at the moment is two things this fair distribution of austerity measures that's one and the second thing is this strategy of direction which i don't see it happening in anywhere in the world at the moment we all talking about cuts which is fine yes we need to send all governments need to send a signal to the different markets financial markets primarily who look like they don't need the world at the moment but on the other hand you need to think how you spend your money in the more effect even more efficient way and where you spend

your money is the key question that we need to address i think it's a key question we go back to dimitri's that's apparently ok people go ahead but that's a political decision that's very interesting it's a political decision not necessarily for the common sense going here. but that is the point that all these decisions are just and that's why i want to follow on from the comment to say look austerity is one way in which a state defaults and the real issue here is the burden of debt is so enormous that human beings can't bear the pain of paying it off so one of the ways in which a default can occur well you can do the argentine style we'll just never pay it back and you don't have to do us terribly or you can do with the greeks are doing which is will pay you back but a little later and a little less that's the haircut option we're going to see a lot of that in europe the third is austerity the state defaults on you the citizen makes you pay more taxes makes you work harder makes you retire later all that stuff doesn't kick up your rubbish anymore before five ssion is inflation and

that's what the u.k. is doing and i would argue that's how the u.s. is going to get involved on its debt ultimately and then the last option is devaluation which you may or may not be able to do depending on the situation but the point is a stair it is only one way of achieving a default and so it is correct you have to think where does the burden of pain fall on the citizens depending on each of these choices and that is a political decision i mean if you want to jump in there go ahead. well you know yes i think or say that it is a very loaded word and i think it's very difficult for us to determine how did you find us there clearly horizontal is there is not the appropriate measure to apply it one has to determine why is it that we were brought to the position to apply a stereotype you know austerity in the united states is different i understand it the green nature greece does not have its own currency hardly its in the united states it has its own its own currency so there's one ks to be made greece could

default the united states cannot default so there is a difference between between those two also when we're allowed to between crees we have to find actually why and how did increase it's not easy to suggest that somehow or other since all the countries in the euro zone allowed to borrow the banks were allowed to borrow at the very low interest rates and pile up on their own government debt which was then a little bit higher so they can make their profits this is not all going to turn out and say well we allowed this to happen but now it's time that the party's over and therefore the population has to pay for that ok do it or a clearly a very significant battlemind in frankly because it was really interesting here is that the greek situation opposed it was like going on in the united states is that big greeks have just lost their sovereignty i mean like it or not it's berlin in

frankfurt and brussels they're managing their economy in the end this is something that's really a stark departure from what people thought the european union was supposed to be about go ahead the the problem the problem is that germany and france are not managing the greek economy they're just managing the big bed and over the last over the last couple of days i haven't heard anything about how we can return the. goals we're still looking at very some very deep recession figures for their government for the rest of the year last night may be cation was that the economy will shrink another five percent until the end of this year and someone made this an idea about it then into growth in twenty thirteen which i don't necessarily see happening and the just in the case of that germany and france is going to create this new fund where all the money that they're giving to greece are going to go in order to pay the the. basically the greek debt off instead of money being spent on the economy

itself develop the infrastructure it's not managing the greek economy there's nothing and that's i might's i might be provocative here but that's always the that's if you're an international monetary fund we get people from going to you i mean that's what i mean you're right you should go ahead dimitri and i will go to the break go ahead you yes i think i think you should know that greece does not have an industrial base and is basically a consumption economy so you're absolutely correct and your hundred thirty billion euros are going to be used to actually roll over the debt of the already exists and therefore it will really do anything in terms of the growth establishing a growth path for the greek economy to grow so you're right into arjun thirteen is a true fantasy to expect the greece is going to grow it is not possible for greece to actually sell through actually develop. surpluses so they can actually service

instead the debt is going to be very high and it's not going to be solved with this new bailout plan and people find out even more if i you know you're a regular before and i can before we go to the break here remit paying off the debt let's be clear it's paying banks ok if this is their dream of a primary residence and this is in their savings banks a banking system i mean that the average person in the house right has nothing to do with the average person out there. correct and that is why the and now for greece to default they have to actually exit the euro and get control of the car see and get all right we're going to go to ensure are you going to go to a short break here and after that show break we'll continue our discussion on austerity stay with our feet. to see. the solar.

systems. and. the full. the east. coast so it's. just so.

if. we. can see. the sun and the sun. because of the magic we're talking about austerity in troubled times slept. to see. any tree in new york and i to go to you i'd like to read a quote from angela merkel she said in this crisis we have reached a whole new level of cooperation we have arrived at a sort of european home affairs europe is to mistake policy that's a remarkable statement because that's that's

a very incredible political statement because we're talking about fiscal and political union to the max now because greece has lost its sovereignty and law it's lost its economic decision making ability and if trends continue others quite small countries within the euro zone will also follow suit. this may be a remarkable political statement but not inspiring because you think that with one talks about it fiscal union or one has to be able to understand what this means the united states of europe need to be thought as the united states of america you know just as america has this center of fiscal fiscal agent that's called the united states treasury that does not exist in europe what exists in europe is that every country can have a budget deficit above the three percent and to also furthermore from now on every

continent in the euro zone should not even have three percent should actually have a constitutional amendment but it should be even much lower than that even a one percent except in some difficult times this is not what i would call the fiscal union this is just not possible for every member of the eurozone group to create surpluses so that it is possible to vend the euro the euro zone could be in an even keel based on the definition of the odds. of america believes and president sarkozy would make a major pain say with you when you're i mean if i can stay with you in new york if but when countries join the european union i'm sorry the eurozone he didn't sign up to this kind of economic policy at all did they i mean this is turning into a straight jacket i mean people didn't vote for this they voted to have a common currency there and these were talking about oh you're rationally correct because they do euro.