>> "bbc world news" is presented by kcet, los angeles. funding for this presentation is made possible by the freeman foundation of new york, stowe, vermont, and honolulu. newman's own foundation. the john d. and catherine t. macarthur foundation. and union bank.

>> union bank offers unique insight and expertise in a range of industries. what can we do for you? >> and now "bbc world news." >> this is "gmt." another twist in a european bureau crisis. -- euru crisis. or embarrassment for the catholic church, another

accusations of the current pope coming from 14 years ago. 200 cases of alleged child abuse by an american priest. if there was fraud in the recount, he challenges the candidates to show them. >> they do not say which stations or which boxes. >> a mobile library bringing books to remote schools. hello. a 10 month blow -- 10 month low against the european -- against the american dollar. it all adds up to bad news for european union leaders as they tried to stop the troubles affecting the embattled bureau. -- euro.

from brussels, here's our european correspondent. >> on tuesday it was the violence. on wednesday, speeches. rarely a day goes by without the strike in athens. but the public sector wears down under the grip. it is not enough, the greek prime minister says, to bring down interest rates that greece is forced to borrow at. the european union is nudging its way towards some kind of bailout mechanism. the threat from greece to go to the international monetary fund does not cut with germany, which is hostile to the idea of helping greece. in brussels there is unsurprisingly tilt towards the european solution.

>> putting in place a european framework for assistance as requested. we're working all of your areas and the member states in order to reach a solution. >> earlier this week, french and spanish leaders called for a special fund ahead of the main gathering. there was a not even widespread agreement on the need for an extra summit. the best that greek people can hope for is some flesh on the bones of the deal that was struck last month. a mechanism by which it might be delivered. right now that seems unlikely. everything seems so uncertain and gramm.

>> let's go live to brussels, we're joined by a senior research fellow for european reform at the research center. if we do nothing, surely the values will drop further. >> you see the leaders coming to a different position on that now. it seems that they have created a kind of blocked space in which something has to give. >> what do you think that they can and should do? >> not very much, i am afraid. they can try to come up with something to prevent the collapse. political agreements to bailout greece. they can make noises about how

it would actually work. the minimum that will be needed to give speculator something to chew over. unfortunately in this situation, germans to know what to say anything but they have to do something to prevent the worst from being assumed. often the outcome of the european summit, indicating that -- the conventional wisdom is that it is not a question of if, it is a question of when this has happened. the germans are in a difficult position. >> the german chancellor has said as much in the past hour that as far she is concerned, she might be willing to help greece, but it will come at a price and the prices that in future there will be trouble for those who has -- who have done like greece has.

>> an understandable response from a country that was restrained in its behavior, seeking to punish those with bad behavior. the problem is that not every european union country can act like greece simultaneously. the future tightening of bureau's own rule will require budgetary balances -- eurozone rule will require budgetary imbalances. >> thank you very much, if you go. indeed. -- hugo. indeed. now, over the david. >> a final package of changes must be again approved by the u.s. house of representatives after republicans in the senate found minor provisions that

broke procedural rules. they will have to be deleted and the measures sent back to the house for another vote. the challenge does not appear to endanger the main thrust of the legislation, which has already become law. a source in the kremlin has confirmed that russia has reached an agreement in principle with the united states to reduce the stockpiles of nuclear weapons within the countries. the agreement replaces the strategic arms reduction treaty that expired in december. it is understood that the president's will speak to each other about the deal in the next couple of days. dubai is to support dubai world paused restructuring with $9.5 billion, -- world's restructuring with $9.5 billion. they shocked global markets last year when they ask for a delay on debt repayments.

malcolm is in to buy with more details on the announcement. >> we have seen separate finance statements today from the dubai government, but we can break it down to two issues. most of the money will go to the troubled properties owned by companies that are struggling because of the property crash. it will also go to pay off contractors. if we go back for months, they said then that they needed more time to pay back creditors. what it has done is it has given a proposal to these creditors, saying to the dubai government that they want to confirm x in the company, with the other part

of the debt burning out against national banks -- earning against the national banks. what they have said they would like to pay back over five years in a structured form, then the next part over 10 years. >> president obama has asked congress for billions of dollars in emergency funds to help haiti in the aftermath of the earthquake. we made the request at an international donors' conference. officials from haiti are expected to ask for over $11 billion. henry skinner is calling for new dna tests that he claims will prove his innocence. this stay of execution does not necessarily mean that the test will be carried out. he was convicted in texas in

1995 of the murder of his girlfriend and two sons. five people had been killed in mexico in a shootout. when traveling in several vehicles, the killings occurred just one day after the visit from hillary clinton in mexico. two men have been arrested after being suspected of kidnapping a 2-year-old boy. the men are wanted in murders of up to 22 people. >> we have heard about these arrests in spain and the u.k., france as well, linked to a ransom payment. we have not had the actual

kidnappers arrested here in pakistan. the police have been holding a news conference, -- news conferences, they have produced two men that they say are linked to this kidnapping. in one case a local reporter managed to trust their microphone into the face of a suspect, on tape he said that they looked over -- look after the boy as if it was a child in their family, which sounds like a confession to me. police also produce weapons, explosives, and belongings that were stolen from the family house. remember, this is how it began a couple of weeks ago. the british boy was visiting his extended family with his father and just as they were leaving, this gang forced their way in.

>> back to you, jonathan. >> the pressure is continuing to mount on pope benedict of alleged cases of child abuse. 14 years ago they warned that a priest may have molested as many as 200 deaf boys. the archbishop received no response and no action was ultimately taken against a priest involved. the vatican has issued a statement indicating that they did do something. i am joined in the studio by our vatican correspondent. you have watched the vatican for decades, this seems like every time a deal with one issue there is another case. >> always best to exercise damage control. >> they seem to be suggesting that they did do something, even though that is not published

documents show. >> that is the point, the official policy was not actively a cover-up -- it was more like telos, but do not tell anyone else. -- tell us, but cannot tell anyone else. -- do not tell anyone else. there were no clear instructions to inform the police, the vatican's instruction was to tell us and we will deal with it under italian law. >> this punishment against this priest in a walk the seemed to be against his public activities. -- in milwaukee seemed to be against his public activities. >> in germany, the cardinal their authorized a priest to go to therapy for the sexual abuse

of minors. but he was essentially an unwilling patient, refusing to cooperate and reassigned to another parish. this other priest was working up until last week. it was only then that he was finally sacked. they have been very lenient up until now with errant priests. >> how much damage is this really doing? they knew they did not want anyone else. >> very embarrassing, there have been terrible scandals that seem to have led to a reassessment, sending inspectors to the church to clean things out. the interesting thing about all of these cases is that they have done this for years, but the

victims themselves never reported anything, either to their families or to other church authorities, or the police, because they were so ashamed. a kind of time warp. now these cases are coming out of the woodwork and this is what is damaging to the image of the catholic church, leading to very serious questions from ordinary catholics and parishioners. can we trust our priest with our children? >> david, very good to see you. thank you indeed. coming up on "gmt," a caravan that brings school to the nomadic children in kenya. a far cry from the criticism he is facing from the west, hamid karzai is in china where he is speaking to a slightly different audience, talking about economic views and reaffirming ties.

>> indeed, china traditionally says they do not like to interfere in the internal affairs of other countries, so anything going on inside of afghanistan with regards to the election of hamid karzai, they will not touch on those issues. what is really being discussed is the economy and how china can help afghanistan after the current military campaign comes to an end. really, the afghan president indicated that that is what it wanted from the chinese yesterday when he spoke to 70 or so businessmen here, he said once those companies to get involved in mining, infrastructure, and energy projects. things like that. he also said that he hopes to be able to guarantee safety and

security for all of the chinese companies that he hopes will invest millions of dollars in his country. >> china has some concern about what is going on in their main region, not least of which the long-term presence of nato troops. >> as you mentioned, china is concerned about u.s. nato troops being there, as well as other security issues. china is very concerned about islamic extremism in the far west reason -- region, which shares a border with afghanistan. they do not want instability spreading over the border. >> this is "gmt." our main stories so far this hour, european leaders meeting in brussels to try to fix the year -- latest crisis that has

hit the european currency. pope benedict is in the spotlight over child abuse from priests who say that he failed to respond to a warning from an american archbishop of about child abuse. finally, results from the iraqi parliamentary election should show whether the prime minister or his main challenger won, with the race so tight and accusations of fraud hanging over the process, some are demanding that the votes be counted again. our correspondent is in baghdad asking how widespread the called far for a recount. >> coming from all sides. early on in the counting process that we heard from many people about concerns over how the counting was being carried out. and then we heard from the

president and the prime minister himself. the language that he used when he called for a recount, warning of threats to stability and invoking his position as commander in chief, raised concerns in some quarters that possibly he might not accept the results. some are pointing out that he seems to be raising these concerns and the race has become much tighter. the election commission has so far stood firm, refusing all demands for a retail. i met the election commission chairman in baghdad, and he said that with all of the allegations hanging over the process, why did he not just agree to a recount to show that the process had been fair? >> it is not evident. they do not say which station or which boxes. just -- they talk generally.

>> do you understand why people are suspicious given the history in iraq? >> you have to know, to change this process, you cannot keep this in five or even seven years. >> a lot of iraqis were surprised at how quickly you rejected the prime minister's demand. you must be feeling under a lot of pressure. >> no. i do not think that they would be angry about my reaction. this is not personal. this is the law. this is elections. this is the situation. this is not personally a problem

between me and the president or the prime minister, or anyone. >> earlier on in the process, nouri al maliki said that he was happy with how things are going. making these demands on the commission as the race had looked much tighter. many iraqis were impressed and surprised by in many cases in the way that the election commission stood up to all of these demands. but there are still a lot of fears of renewed violence after the results finally come out. particularly now that we are expecting negotiations to form a new government. whatever happens, if it is nouri al maliki or his main challenger that when the seats, neither will have the majority, so they will have to engage in coalition talks, which is where we might

see problems. the big tests of things stabilizing are still to come. >> desperate to hang on to power, he is even reaching out to former enemies like the radical shiite cleric. >> that is right, it has been interesting to see. it certainly looks that is that despite many setbacks, the trend seems to be that he is doing well and that he will be in a pivotal position in forming a new government. i have to say, many people will be surprised if nouri al maliki is able to work with him, but because they used to be closed but it was because of his support that he became prime minister in 2006, but they have badly fallen out. at this stage you cannot rule anything out. >> primary education in kenya is

free but it is still very hard for children in remote areas to get to school. hundreds of thousands of children from nomadic communities spend their time looking at valuable livestock. now they're bringing the schools to the children said they are not forced to make a decision between the traditional way of life and getting an education. >> meet retti, sounding a bit reluctant this morning. the scandal has an unusual load. boxes of -- this camel has an unusual mode. boxes of books. plotting across the tarmac, the caravan looks a bit out of place. this mobile library weaves its

way through the traffic. slightly more familiar terrain now, the operation is about making sure that even if the people live far from the town, they are not excluded from getting an education. in schools where most of the reading is all of the blackboard, the library offers them a chance for them to get their hands on a book. while the camel takes a rest, students choose from a collection of children's stories. the level of english is very low here compared to schools in the towns. this girl is just picking up the habit of reading now at the age of 13. she says that thanks to the library, she can improve her grades at school. the children in these parts in these communities have the job of taking the all-important animals in search of water and

vegetation. herding livestock has long been prioritized about getting education. sending children to towns to study is not a popular option. >> destroying the livelihood of these people. it is easier, instead of moving them to one place, to bring the school to where they are. >> that is exactly what is happening here. lessons under a tree with a teacher from the same village. awaiting government funding, they're making do with homegrown solutions. goat droppings to spell out the alphabet. here it setting up a new home is a common sight, as people are often forced to relocate because of the droughts. teachers move with them.

mobil schools for mobile communities. wilbur ross, northeast and yet. >> here on "gmt" we have been speaking about fresh allegations on the catholic church and how they deal with child abuse allegations coming out of america. the latest allegations are very embarrassing for the current open. that is all for this edition of "gmt." stay with us. >> funding was made possible by the freeman foundation of new york, stowe, vermont, and honolulu. newman's own foundation. the john d. and catherine t. macarthur foundation. and union bank.

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