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global expertise to work for a wide ranmp ocof anies. what can we do for you? >> and now, "bbc world news." >> talks between european leaders lead financial markets wondering if the glass is half- empty or half full. there is an agreement, but attempts to get all eu to sign up to the new treaty have failed. >> [speaking foreign language] >> we will create a new fiscal union, which is also a stability union for the eurozone nation, and also those which would like to take part. >> i was not prepared to agree to that treaty and take it to my parliament in that way. that is why i rejected signing this treaty today. >> welcome to gmt.

i am naga munchetty. the u.n. climate talks head into the final hours. white as far as the eye can see. ski resorts in switzerland celebrate the snowfall. it is midday in london, 7:00 a.m. in washington, and 1:00 p.m. in brussels. that is where european leaders have agreed in principle to a plan designed to steer the eurozone out of troubles. the leaders of the 17 countries in the eurozone have accepted stricter controls on their economy. still, germany hopes for a new treaty involving all 27 members. britain refused to sign up to the deal. at least 23 countries, including the 17 in the eurozone, have agreed that there needs to be greater coordination on economic policy. tough new budget rules tax and

spending. britain has opted to stay out of the deal. it proposes new rules that will be placed on the financial services sector. in the short term, an extra 200 billion euros will be given to the imf. there will be a permanent euro bailout fund. for the very latest, let's go to our europe correspondent. it has been a very long night and the talks continue. >> it has been a long night and a dramatic night, of course. talks are going on. a range of policies. croatia joined the eu today. all the talks will be dominated by stabilizing the eurozone. certainly, france and germany are delighted they reached a some sort of agreement over fiscal discipline, putting restrictions on eurozone

members' borrowing levels. they have been joined by six other countries outside of the eurozone and possibly two more. britain would not agree to this immediately in a new treaty. they will be standing outside of those arrangements. british prime minister david cameron said he did not get what he wanted to present the city of london's vital financial interest. >> the state of the was euro at stake they had said. 10 hours of talks led to 23 eu leaders accepting tighter integration. germany, key to making it work. >> [speaking foreign language] >> we made important decisions yesterday for the euro. we talked about the stability and fiscal union. we took good steps. all states would agree to a debt rate mechanism.

we are very glad that not only the eurozone countries but also several other countries are committed. >> the deal was done at the cost of new division. prime minister david cameron was not party to the agreement. the tensions were reflected in the body language today. britain said it could not accept proposed amendments to the eu treaty. >> the key question for britain, would you allow that to happen if you are not happy with the safeguards you are given? i was not prepared to take the treaty to my parliament in that way, and that is why i rejected signing this treaty today. the right thing for britain -- a tough decision, but the right one. >> britain wants to protect the city of london from future eu taxes and regulations. france and germany would not give way, insisting that the biggest issue at stake was saving the euro. if it leaves britain isolated,

french president nicolas sarkozy suggested that was up to britain itself. >> [speaking foreign language] >> this is a choice our british friends have made. we cannot criticize them. on the one hand, you cannot ask and at the same time be a part of the decisions that you don't want. that is not possible. >> there will undoubtedly be major hurdles ahead for the eurozone countries on working out a treaty on the cover deficit in that regime. the polish prime minister was asked whether the euro's future was now secure? and the bigger question is what the legacy of this night of marathon negotiations will mean for the future of europe as a whole. >> very dramatic events in brussels here.

initially, german chancellor angela merkel wanted a treaty of all 27 eu member states. that has not happened. angela merkel did not get that, but if she pleased with the new agreement to bring greater stability to the eurozone? >> yes, i think this is the right fiscal union. it is an important message to the markets. it is the second-best solution. it would be better to have the 27 member countries. the british condition was not acceptable. they ask for things that had nothing to do with this issue. now there are 26 countries on board. britain is alone. britain is marginalized. we will continue with these 26 countries. >> i will ask about britain's position in a moment. have you done enough to satisfy the markets? it will take quite a long time

to get the actual changes agreed to. some of them will likely have referendums. there has also been a move to boost the bailout fund, as well. do you think there are enough funds going into this to convince the markets is serious -- markets it is serious? >> and so that is totally, legally solved -- greater stability in the market. >> people are obviously going to focus on britain's position. some of the member states have been worried about some of the details. germany pushing for euro bonds or intervention by the european central bank. why was it so opposed? >> before you take

responsibility, it must be clear that such a situation will not happen again. therefore, this was a condition. it looks like angela merkel has reached the school -- reached this goal. she saw broader support then perhaps she did the day before. this has to be done using the community institutions. that with the next possibility can be moved into the treaty. >> legally, do you think you can have the european institutions, all 27, with a smaller group of nations? >> i think so. it was already used for the union of 17, the euro countries.

why should it not be possible? it was possible with 17. >> britain is isolated. there were things that were unacceptable to them. what was not acceptable to them? david cameron wanted to protect the city of london, a major industry city in the u.k. >> it is totally not understood to me that britain should not allow it. it would be the end of the whole story. the entire market would have been destroyed. we would have no instruments. the financial markets are part of the problem. >> he was pointing out that the

whole single market might have been destroyed if david cameron would have got his way. a sign of some of the tensions overnight in brussels. >> am sure that will continue throughout the day. thank you very much. now to some of the other stories making headlines around the world. a fire at a hospital in india has killed more than 70 people. it started in the basement of the building in calcutta, trapping people. firefighters broke through glass walls and used rope ladders to get to those who could not escape. because of the fire is being investigated. heavy floods have forced thousands of families to flee their homes on the outskirts of the colombian capital bogota. heavy rain has also led to several landslides. on engulfed a bus, killing all on board. pope benedict will visit cuba

for the second time. a cuban church official confirmed that he will meet members of government during the visit. the final day of climate change talks in the south african city. world leaders from rich and poor countries have spent two weeks discussing everything. still, the elusive issue remains getting a binding agreement on climate change. that goal is meeting a new set of complications. >> the world order is changing. once, climate negotiations were all about rich versus poor. now they are about countries that want a strong deal soon and those that do not. the ministers stood alongside european counterparts calling on china, india, the u.s., and brazil to move forward. >> the fact that we are able to

show today that there are so many countries of backing this roadmap, we calculate more than 120 of the countries represented here. >> inside the conference, activist pointed the finger at the u.s. >> you must set aside partisan politics and let science dictate decisions. >> they feel that because of next year's presidential election, the obama administration is stonewalling, looking to keep promises to a minimum. >> it is completely off base to suggest that the u.s. is proposing that we delay action until 2020. let's stop and think what is on the table over the next number of years. >> protests are aimed at keeping

the pressure on delegations like the u.s. and china that are accused of holding out. thousands of local children show their frustration at the slow pace of change. >> delegates have a very tough day of negotiations ahead of them and probably a very tough night, as well. what is less certain is whether those talks will result in the tough constraints on emissions scientists say are necessary. bbc news, durban. >> cricket in crisis. sri lanka blames government intervention for ruining their favorite game. >> libyas oil reserves are the biggest in africa. the industry was hit badly by the conflict. production is picking up. good news for the country's coffers, the big challenges remain.

>> the oil industry in libya is on the move again. the refinery is operating at full capacity. it's a far cry from a few months ago. today, the reminders are all too clear. >> we have lost a lot of equipment. it's estimated that the damages are in the neighborhood of $10 million. >> the oil production is expected to recover to pre-four levels by the middle of next year. it's good news for a country that gets pretty much all its income from oil. as the industry tries to recover, many are asking if people will get a bigger slice of the oil wealth in the future. >> the rest has gone away. we hope that what we get from

the oil will be sent to libya. >> the national transitional council says it is setting up a committee that could see a shake-up of the oil industry. not everyone is convinced. >> i do not see any change in the attitude. we still live in nepotism. if i know you, then the law does not work. >> new contracts are yet to be signed. after a long and for some years of fighting, it's hoped to be a new chapter for libya, not just politically, but financially, too. >> you are watching gmt from "bbc world news." i am naga munchetty. a new agreement for the eurozone.

britain blocks the way to a new treaty for the call of the european union. the prime minister said it was a difficult decision, but france says it will not mean a two-tier euro. >> what is the business world making of this, aaron? expectations were so high. >> many would say the expectations were too high going into this summit. we know that not all of those expectations were met. the markets have ticked higher. let me just show you. the basic issue is that the markets had been fed up. they had been so tired of non- headlines. a look at this summit and see that there has been some progress. the eurozone leaders have been making some progress. the big test -- we heard from the european central bank

yesterday. mario draghi, the fairly new president, was fairly adamant that he would not introduce any new bond buying. >> he refused to be a lender of last resort. >> exactly did he does not want the ecb to be the lender of last -- last exactly. he did not want ecb to be the lender of last resort. he is pleased. he has already made some comments. is he pleased enough that it will push the ecb to start buying up some of these debts? the markets are up, but so are the yields. that said, some are very adamant. they believe the agreement reached in brussels is self- defeating. >> the key to this crisis is economic growth. investors doubt that countries such as spain and italy are going to grow sufficiently

rapidly to be able to service their debts. what they have effectively agreed to is to institutionalize fiscal austerity into the framework of the eurozone. all governments will be committed to the high levels of austerity -- closing those budget deficits. of course, in the long term, countries need to be sustainable. there's only so much they can do when their economies are very weak. cutting public spending and raising taxes by as much as they will be required to do when their economies are actually contracting, it risks making the situation worse. it risks being self-defeating. in many ways, it's become part of the problem, not the solution in the eurozone. >> you can see what the analysts and economists want. they want growth in the

eurozone. how do you balance austerity and try to encourage growth? >> as simon said, institutionalize austerity. it's kind of like a dog chasing its tail. i also ask him very briefly -- if we are talking in a year's time, could we possibly seek one or two members no longer members of the eurozone? he said, "absolutely." let me touch on some of the other consequences of the eurozone. credit rating agency moody's has downgraded france's three big banks. the move follows the previous rating back in september. a bit of a worry for germany. its exports fell 3.6% in october as demand shrank.

that is according to the latest figures. it was the biggest fall in six months, and much bigger than the 1% decline the market had expected. the slowdown of the chinese economic powerhouse continues. november solve inflation ease for the fourth straight month in a row. the annual rate dropped to 4.2%. for the month of november, a drop in industrial output. china has seen overseas demand for its products shrink. >> now, 4.2%. that is something that will be welcomed by the authorities and beijing. it will give them greater room for maneuver in terms of loosening monetary policy and pumping more cash into the economy in order to stimulate more growth. why would they want to do that? china is the world's largest

exporter. of course, it has been affected by what is happening in europe, its largest trade partner. we saw the export figures for october. they showed a slowdown. we expect the export figures out for november tomorrow, on saturday, and they are expected to show the slowdown continuing. a senior official from the country's commerce ministry warned that the country's exporters face severe challenges in the next 12 months. >> china is feeling the pain from europe and the u.s. >> thank you so much. >> for many sri lankans, cricket has brought a sense of unity in times of war and peace. since it coasted and made the finals of the world cup earlier this year, there's growing concerns about the integrity of the game. charles haviland reports from colombo. >> they start them young here.

perhaps it's better to be a promising youngster at the moment than a top star. the glamour of the annual cricket awards at the end of november. the popular former national capt. recently said that the sport in sri lanka is correct. he talked about excess of political influence and the fact that the sports minister can veto the team lineup. a huge new stadiums were built to host the world cup, leaving them with massive debt. the players have not been paid since august. another former national capt. is now an opposition politician. he says the government is too involved with many aspects of life in sri lanka. >> when it comes to an issue in this country, the political interference, whether it is sports, cricket, or anything at

all -- some political influence is happening. that's the biggest problem we face today. >> creecritics of the government speak of the growing influence. of they it's all part government said in two years ago suddenly tightening its grip on the country. >> the government denies the interest in national life, including cricket, and says the armed forces involvement in the stadiums is limited. >> cricket is the cricket board. >> until recently, sri lankans have especially valued cricket. among other things, it gets them away from politics. people are disillusioned with what they see as political interference in the sport. this is a country still emerging from a long war. cricket is being brought back to

the tamil areas, too. fans hope it will end the current troubles. >> after one of the longest and driest seasons on record, snow has finally fallen across the alps, bringing relief to the tourism industry in switzerland. >> from this to this in just a few days. the snow has come at last and everyone is eager to get out on the slopes. for those whose livelihoods depend on winter tourism, it is a really. >> [speaking foreign language] >> it is hard to explain in figures, but it has huge emotional the liu for people here. we even have snow in the lower

regions. that's important for the upcoming christmas period, for the start of the winter season. >> switzerland is hoping the attractions of its top resorts, like davos, will outweigh the fact that the strong swiss franc makes the skiing holiday here far pricier than in neighboring austria or france. now that the snow is finally here, the resorts are gearing up for business. everyone's keeping their fingers crossed that the snow keeps falling. >> a reminder of our top story on gmt. after a late night talks in brussels, at least 23 european countries have backed a new agreement on government finances. attempts to get all 27 members to sign up to a new treaty have failed. this, after britain refused to take part. that is all for the moment.

stay with us on "bbc world news." there is plenty to come. >> make sense of international news at bbc.com/news. >> funding was made possible by the freeman foundation of new york, stowe, vermont, and honolulu. newman's own foundation. and union bank.

>> union bank has put its globalin fcial strength to work for a wide range of companies. what can we do for you? >> "bbc world news" was enested by