from the center here in moscow this is r.t. top stories now turkish and saudi fighters a said to have been captured in syria helping the rebels fight against president assad the modern a new twist in the conflict civil servants safadi themselves a target for simply working for the government. three years behind bars that's the model the prosecution as the trial of the headline grabbing pussy rogers draws to a close here in moscow. two communications satellites are lost in space after a russian rocket failed to place them into orbit on monday and now pose a threat to other satellites as well as the international space station. that's in

the news too for the moment i'll be back with another summer in fifteen minutes from now the meantime artie's laura smith interviews economist roger bootle who won the wolfson prize for developing a practical plan to dissolve the euro zone an in-depth interview next on r.t. . today i'm at capital economics talking to roger bootle he's the head of the winning team in the wolfson prize which is the competition to find the least disruptive way for a country to exit the euro logical thanks very much for talking to us now this wealth and prize the competition why was it important to you to put together such a strong and treaty i was fascinated by the question that lord wilson posed and as i thought about it i quickly became aware that no one of really satisfactorily even i think attempted to answer is no i thought we could learn a lot as well as contributing quite a lot in trying to answer it and that's what we did and talk me through your

winning entry very briefly country wanting to leave the euro must prepare a plan in secret among a very small group of senior ministers and officials pretty much as soon as the plan is agreed it must be enacted in order to prevent news leaking out the banks will have to be closed over the relevant period which is probably a week and during that period capital controls will be in place almost say the friday night it will be announced to the people of the departing countries let's call it greece that from then on all the amounts that were in their bank accounts their pensions or whatever their wages prices which were formally expressed in euro's were now to be expressed in most and we suggest that the conversion rate between euro's and direct most be one for one now a lot of people get this mixed up they think well in that case what about the exchange rate on the exchanges there's no connection between the official

conversion rate and what the drachma trades as we're pretty sure it would trade at a much lower rate probably around one of the perhaps even two to one against the euro and then the banks open again on the monday. well tuesday people putting their cards into a.t.m. so they can get euro's out of their bank accounts which are now expressed in drachma thing only get those out at the exchange rate the rules now between euro zone the drachma because now the euro is treated as a foreign currency and this way they're not going to have notes and coins available i think a lot of people got fixated on that we argue it doesn't really matter for the overwhelming majority of transactions particularly business transactions they're done electronically anyway and people use cards debit cards and credit cards they continue to do all that only when they use them it's that they're actually transacting for small transactions that require cash then gesture has greece

carried on using euro's until new track when those are available but you raise the exchange rate at the new one on one parity with the with the drachma well what will tend to happen is that a price system will develop because people will know that. the same as euros although they've been converted one to one right they'll tend to be a different price for euro cash as compared to. credit or direct debit cards that will be to some extent messy but it will be perfectly practical there are a lot of countries in the world afraid to do currency into pricing system and this all sounds very simple in times of in terms of will people using real money are there other complications at the kind of macroeconomic level where there are huge complications and problems on one of the biggest is going to concern the legal position because what would happen at the point of the greece leaves the euro is it

would read to nominate its debt its national debt into a drachma. now as far as domestic greek residents and. but i haven't come back on that change is going to stand in on the great lauren green calls that are going to be all sorts of contracts involving non-green this is where there's going to be a lot of legal argy bargy because let's say a german creditor for the sake of argument is not going to want his asset converted into drachma and he's going to argue that the contract was framed in euro's it should still be in euro's and in greece they're going to say oh no it's now in drachma and so they're going to be arguments the courts could be heavily involved but the scope for that could also be reduced if euro zone governments reach an agreement on all this which i think they probably would then have to lay down guidelines under which terms of contract would be interpreted and in which

occasionally it could be in euro's and that would minimize the scope for legal argument the other major issue is not just complication it's a reality is that initially this is going to be very far from a magic wand when the drachma falls on the exchanges the price of goods and services in greece is going to go up possibly by quite a lot so initially living standards are going to be squeezed far from bringing relief to the order great person it's actually going to make matters worse initially however going forward things are then completely transformed because in a flash greece is more competitive not the grinding deflation they were ten or fifteen years but instant pain is li greece's forty or fifty or sixty percent more competitive and the demand for greek output is going to take off that doesn't happen overnight but in a matter of months that will happen greek exports will start to rise create imports will fall and that will generate employment and more income in greece so there's

a trade off a difficult period to go through first of all in order to secure later greater prosperity so if you compare that situation to the austerity that the greeks the now facing which. would you say it's a better plan i think there's no doubt that greece in my view needs to get out of the euro i cannot see any way in which this current policy of austerity is going to bring any relief or slow arriving process of trying to. take. hold of our credit very much more it grazes the real value of day to greece and the other we can members of the euro face not one problem but to their own competitive costs and prices are out of line with other countries in the euro and they're also saddled with very high levels of debt the problem with domestic deflation is in principle but very badly but in principle it deals with one of these problems

namely the lack of competitiveness but at the cost of making the other problem debt even worse and what we're talking about is is countries not only greece but possibly other countries that leaving the euro off to that europe file seem to fear the breakup of the year is there not some kind of ahmed getting do you think that's where listed fair well i think they're right to fear the breakup of the euro zone because. if greece for instance were to leave obviously we don't know how it would all work out suppose it's possible that the rest of the euro would then together but i doubt it i think if greece leaves before very long of us conses countries will leave as well where they end up probably with the peripheral countries possibly all five of them say portugal italy ireland greece and spain or outside the euro possibly even joined by problems with some northern core remaining so in terms of thinking what might happen i think these people are absolutely right with regard to the consequences though i think they're completely wrong in the sense

that you have to ask yourself from the leaders of europe after all stem cells how can you imagine prosperity and stability for europe under the current setup one. is the mechanism through which countries are of the moment malard in not just a recession but frankly a depression through which those countries can regain prosperity comic growth and stability i wish they could tell us something along because all i hear whenever they have a summit is they keep banging on about various forms of debt support and never about economic growth now i do think it's possible to imagine return to economic growth in the current setup by contrast if the euro breaks i can't imagine economic growth so far from being a disaster i think it could be the major step that leads to the restoration of growth in europe and was about these attempts to shore up the very same that we've seen recently another bailout for greece cheap money flooding international banks from the e.c.b.

they going to have any effect well i suppose it's possible to keep the whole show on the road that way if the northern countries are prepared to carry on shoveling this money into the southern countries although i frankly i think that there will come a limit because eventually the sums involved are going to be absolutely enormous and voters in the north and countries will say we don't want all this but even if the continued shoveling of money does take place which keeps the show on the road again that doesn't actually bring economic growth in the self all it's doing is preventing a financial collapse whereas these are countries that have undergone a very big drop in output and we've got huge levels of unemployment and is what we're seeing just purely a kind of fight between politics and economics is the reason that i'm going to muckle for example is so desperate to keep the year is they together because it's the major political project that germany has implemented over the last thirty years or say i think the politics of the economics are really very closely intertwined

and it's often difficult to work out where one stops and the other begins. i think you have to appreciate the european elites didn't have a pretty firm grasp. the book of the economics from the start now i think they're getting the economics completely wrong that's to say their opposition to the idea of their fear of the idea of euro break up isn't just about the politics they think that the economics point very strongly that way as well because they fear the financial chaos that would stem from a euro breakup and they don't see the benefits to economic growth so i think they are opposed on both economic and political grounds and we talk a lot about about that the collapse of the year essentially but all through this the currency has been oddly resilient hasn't it only really winding down now from quite a decent race against the dollar what do you put that down to i think this is a really big puzzle quite why the euro has been so strong there are reasons that

one can put forward or are not completely convinced by any of them but one thing the thing to bear in mind is foreign exchange markets are notoriously short sighted and the argument against the euro has always been that essentially it will collapse through the way through its own contradictions as to when people trade on able to world exchange markets tend not to like to bet on things like that you know something maybe next year maybe next month maybe in five years time it's not a really very solid thing to go on then there's also the question of what form the euro might take if it survives because it will we could countries leave the eurozone arguably the euro's going to be a strong currency so very far from selling it if you thought that sort of breakup was going to happen you ought to be buying it if the euro does become a current seed that applies to many fewer countries will it still retain its attractiveness for investing or are we looking at a return to dollar gentleman nation for example oh i think that the euro could

continue to be a very attractive currency indeed for many people it might be even more attractive if you could imagine what's going to happen is the departure of the weaker peripheral countries portugal italy greece and. by. perhaps even problems that the euro is as it were greater dortch markets germany and it's close satellites and it's going to be that car currency area very much as he will be the way the germany used to be run under the doj mark and accordingly i think investors will like the currency really very much thank you very much. you know sometimes you see a story and it seems so you think you understand it and then you glimpse something else you hear or see some other part of it and realize everything you thought you

knew you don't know i'm tom harpur welcome to the big picture. download the official application to cell phone choose your language stream quality and enjoy your favorites from azzurri t.v. is not required to watch on t.v. all you need is your mobile device watch r.t. any time any. admission free accreditation free. for charge is free to arrangements free. three. q type free.

old free broadcast quality video for your media projects and free medio dog r t dot com. top stories this hour on r.t. turkish is a said to have been captured in syria helping the rebels fight against president assad meanwhile in a new twist in the conflict civil servants are finding themselves a target for simply working for the government. three years behind bars that's the demand of the prosecution as the trial of the headline grabbing pussy riot is draws to a close here in moscow. and communication satellites are lost in space off to a russian rocket failed to place them into all but the monday now pose a threat to other satellites as well as the international space station. and more for me on the news team in fifteen minutes from now in the meantime we have the latest up to the minute lympics sports news with paul.

thank you very much bill will come along to the sports headlines here is what we've got coming up another to the tally on day eleven seventeen year old stuff and i was a bronze medal ever increasing titles at the london twenty twelve olympics. gearing up on the greens tied to words on the world's best preparing for this weekend's p.g.a. championship the fourth and final major on the calendar. and horse power combined once again at the russian surfing championships. but first there's only one place to start in day eleven has brought russia's eight gold medal at the london olympics it's come in synchronized swimming with the tally . climbing gold in the women's heads to russia continuing their dominance in

a sport that usually provides its fair share of medals. spain into silver and china into brawn. in russia's most. as for athlete out these games earlier most stuff or not has added another bronze to our list of titles she finished third on the women's floor event having won gold on the other even bars on monday she also won silver in a bronze in the all around events one in the team event and one in the individual however victoria come over again and came up short of the podium. now that could be further medal success for russia on tuesday a crowd of qualified in second place from the semifinals of the men's three meter springboard diving competition here we go for gold in the final a little later on his compatriot you have gained his nuts off his reserve but the defending champion chinese have shown qualifying in first place. in the meantime in the women's volleyball is the quarterfinals russia are in action right now against

brazil late into the fourth set there after winning two out of the first three two one you can see to russia more than the competition but also at the quarter final stage russia's women occurring in action against the republic of korea in the beginning of the second half it's fourteen eleven two the career is. well elsewhere on monday there was plenty of medal success for russia or disappointment for legendary pole vaulting elena is in by a farmer reports russian pole vaulter failing to make it in historic three olympic golds in a row having to settle for bronze after failing to clear for me to seventy five the usa did make that height to climb gold. silver byron standard the russian will be desperately disappointed before the game she did say this would be her last competition bringing to an end incredible career for the former olympic and world champion who has set twenty seven world records but while she was struggling did

light up the track in the women's steeplechase the russian climbing gold with a personal best of nine minutes six point seven two seconds the fastest time in the world this year adding the limpid title to her world and european cranes and the. it was a bronze for you can you in the women's shot put it was day ops to choke from bellary use got the gold. elsewhere there was a tremendous cold for russia in the gymnastics seventeen year old stuff and claiming that in the uneven bars beating the defending champion haye kicks in from china with an impressive score of sixteen point one three three and completing a fairytale comeback from a staff and paralympic during the period to be in tatters just over a year ago when she repeatedly ligaments but she has balance back in style giving russia their first gold in artistic gymnastics in sydney tafe thousand however former soviet great olga korbut says the country still needs more. than fifty percent to seventy is that different from. that which

a lot of coaches go way. which. dennis albion's in was doing his best to restore russian pride after a bronze in the floor exercise he got a silver in the vault behind korea's hexagon yak russia's artistic gymnasts now have seven medals compared to the two bronze they got in beijing elsewhere there was a second gold in two days for russia greco-roman wrestler's this time is alan cooper who sent in pictures beating egypt cutting you put him in the final of the eighty four kilogram section the russian is ranked number five in the world in his previous best was a silver at the european championships but he showed a real step up in class to claim gold in london while saw quite a game of golf got bronze in the sixty kilogram section finally the fallout from russia's poor performance in the shooting continues the head coach had resigned in ny the head of the shooting union has said there was a bad spirit in the camp we had little. choice but i must admit psychology was

a factor the team spirit was far from good but we have a lot to do this respect however they give their all of the olympics and i am proud of them all our team are still one of the best in the world we were very close to claiming much more podium places but luck wasn't on our side too. well let's see what all of that is done to the latest medals table russia and i torricelli slow starters at the olympic games are working their way up the table now in having leap frogged for on the top four main as you work with china the usa and great britain leading the way. they are staying on the olympic theme answering a williams says she has no plans to retire after completing a career golden slam she now won all four grand slams plus gold at the olympics in singles and doubles this after she beat maria sharapova in the most one sided final ever american says she intends to defend her title in rio in four years' time so right now i feel like i'm competing with with everyone else out there pretty solid

i. feel like i belong i'm not tired i'm enjoying myself so much. i don't see indrani. i plan on being there. simply doesn't allow me to. i will be. now elsewhere english premier league side arsenal have strengthened their ranks by completing the signing of spanish midfielder santi cazorla the twenty seven year old following in the footsteps of a living as you do in lukas podolski and arriving at the emirates this summer the spanish international helped his country to success of the european championships in two thousand and eight and two thousand and twelve a versatile midfielder who can play on either flank says his arrival from the league a side malaga is a huge step forward in his career he's agreed what's being described as a long term deal for an undisclosed fee. while the cream of the golfing crop are

gearing up for the p.g.a. championship this weekend the world's top one hundred three players and over one hundred fifty in total aiming for glory in the final major of the season starting heat on the possibility of gusty atlantic winds just some of the challenges tiger woods has to contend with if he is to win his first major since the. two thousand and eight u.s. open while graeme mcdowell is aiming to add his first p.g.a. title in almost two years and a second major championship to his twenty ten u.s. open trophy well number one luke donald has never experienced excess at any of the big four the investment clearly with his homework done on the south carolina cool. it's a great golf course. you know reserve where you have to last week akron feels like it's reasonably generosity you know if the wind doesn't blow like it was pretty mild today with that in terms of wind conditions it's does give you some opportunities to greens a perfect you know it's very pip typical pete dye lot of rays greens a lot of fall off so he missed screens is going to be tricky. the final eight the

second russian white surfing championships were held in moscow over the weekend plenty of stake for the adrenaline chases not least a trip to the world finals nicholai chose takes up the story so it was bound to happen sooner or later surfing with the help of an engine this elixir for a new sport is the lights in france here in moscow wakes up in the new heat among lovers of water sports with ways it's a premium throughout most of russia riders must make do with the ones they create themselves why the help of a boat after getting up on the wave using a tow rope sofas then discard an attempt to ride the wave in the fashion reminiscent of the sport's more famous cousin while the president of the russian wakes of confederation sees the new stuff is certain to be a winner among watersports innovating is the amount of participants our supporters as been growing every year with it and that is the objective of our work so we'll continue doing these championships every year but will change around fleets and improve the level of competition which i believe will make things even more

exciting never you. most co-hosted the second day of a russian wake surfing championships as well as handing out the medals the aim was also to produce more professional reuters as many contestants were only starting to get to grips with the sport but there were plenty of experienced riders keen to show off their skills one of them honest. who came third at the fourth annual world championships in arizona last year. last year i went there without any expectations i just wanted to see the real world championships to get to know the world's greatest writers so i could talk to them and watch their talk last performances basically that was being gold but i managed to finish third as well.

around that was another of the country's top performers young the gloomy enough was crowned queen of the waves was like hello i'm highly erin was in no mood to relinquish his crown when the main starts in for the second straight year so through some spills aplenty as the russian foreign minister come to a close the next stop for the top riders here though is the twenty twelve quakes i think championships in arizona that's where the best of the best will gather to do battle for this economy of running nicholai chills most of. that is old from the water sport for now although i'll be back with plenty more in just under two hours time here and i'll take join me then but while the weather is not.

well. science technology innovation all the latest developments from around russia we.