commission without the european parliament without the european court without the massive cost and bureaucracy and i am not you know i am not i don't see a replay and please don't think that you know i'm married to a german i work for french companies i love europe i love the cultural diversity of europe but what i'm fighting against and what i'm finding support is growing but i don't want to live in a europe of bureaucracy i want to live in a europe of democracy while said real quick before we go in may addressing european parliament you said you feared this project could cause the rise of national socialism in europe now after two rounds of greek elections we. neo nazis in parliament how much worse do you fear this could get politically in terms of fracturing and the division into extreme politics. if you take away from people their right to determine their own future is to live under their own rules to take away from them that i should say. that you risk doing something that we stupidly did back in nineteen twenty with yugoslavia but we took diverse different balkan states we forced them to

union as such european integration do you think that members of the government. or longer of a month and so on would take the responsibility to both the worlds this would i don't think so now one of the pillars of the e.u. was this free movement of people no internal borders but there has been a lot of talk about strengthening border controls and also a rise in anti immigration rhetoric where does that leave europe first we we have this freedom of movement but actually the number of workers going from one thousand three to end is unfortunately quite weak weak you have example because of the language main leak and also the attachment to people to their regions so we have to take organizations we can to improve the mode b.d.t. of. within the union and what i'm proposing some measures in my book on this and then the thing is immigration reform countries you know with all the demographic trend in the countries of european union they have just got past perfect just such as in the russia such as in other countries as well. that means that we have more. people and. youn

there is states because they think that european union is helping if they want to simply seeing european union is a creation of states that are you worried about the growing social unrest in individual countries as well as the rise of the extreme political left and right of course. it is wise since. one year when your half i am trying to give my two to two to gave a little bit grain of sand to the discussions and to try to accelerate their way without taking decisions in order to finish with their usual crisis. because we cannot go on in some countries with austerity and not giving hope to the people it is not possible just possible that people are desperate there will be near stuff falling unemployment is increasing and so on and so forth and we have the heavy price paid to co-produce towards green party's because obama and you have these reactions of people in the streets which are completely understandable they have no hope of pull so i think we have to give hope to these people and to take this season's visible credible understandable as soon as possible and now it's obvious that we

so, the question as to competitiveness, that is how do the countries of the european union, generally around the industrialized countries, have to position themselves so that they can be competitive with regard to the emerging economies, that is the issue, and that is where we a large degree of agreement. >> is it your conviction that the europeans are able to solve the current crisis by the means they have chosen so far, or do you have any further advice to the europeans? >> and the question addressed to you as to the euro crisis. in your talks with the prime minister, did you gain the impression that you were able to say something new to him that actually gave a boost to the credibility of the europeans being able to solve this crisis, that he didn't probably know beforehand? he would probably be in a better position to tell you that, whether i've been able to do that, to give him a sense of security. >> we all know there are additional things that have to be done. the chancellor and i discussed these things in great detail, and i'm not going to comment on it publicly how europe add

and up next an interview with a top legal man and the european council. despite the economic gloom think europe he says the difficulties are a natural and transitional step forward. today we're joined by a p.c. was the legal counsel of the european council and he also spent more than two decades as head of the legal service of the e.u. council of ministers and yes participated in a lot of the important decisions taken over the past twenty years notably the adoption of the new treaties in the european union thanks very much mr pearce for joining us today i'd like to start by quoting something you had written and event for two thousand and eleven and the financial times you had written it's time to admit that the large amount of the e.q. was too rapid europe's citizens no longer understand the purpose of the e.u. and for all its increased powers the european parliament the supposed repository of democratic legitimacy in europe is a relative failure i like to ask is is there something fundamentally wrong with europe at this point you know this whole european

. >> the two differ over the role of the european stability mechanism. merkel said the fund should not be allowed to borrow directly from the european central bank, but that is an option that monti supports, and he praised the virtue of flexibility. >> a few things can be achieved under certain conditions, but perhaps these can be done in the future if the conditions change -- a few things cannot be achieved under certain conditions. >> for now, the two appeared friendly. a show of unity was the message for the day with specifics left for the future. >> dw's political correspondent has been following these developments and joins us now from our parliamentary studios. thanks for being with us. there was a definite show of unity, but our land and wrong closer to finding a common strategy when it comes to solving the eurozone debt crisis -- are berlin and rome closer to finding a common strategy? >> italy is buried under a mountain of debt. it is struggling to keep its head above water, as it were. germany is flush in relative terms, looking financially ver

some southern european -- some southern european eurozone members are pushing to boost its firepower. they envision the esm as a bank that could buy bonds from dead- ridden governments -- debt- ridden governments. the ec would not be directly aiding governments, which violates the institutions treaty -- the ecb. critics say the proposal does just that, and cash would be financed from the ecb -- funneled from the ecb to the governments in a roundabout way. the ecb has as much power to burn as much money as it once but not the reserve to back it up. germany has warned against the option, saying it will lead to inflation and an even more serious crisis. -- the ecb has the power to furnish as much money as it wants. >> tell us a little bit more about the arguments why, and do you think something may reverse course on it? >> this is not a new idea. it was promoted a year ago by france. at the time, there was opposition to it not just from the german government, but from most european governments, but, of course, the crisis was not as deep then as it is now. the main opposition to it is thr

they will cut the workforce of european business by 10%.itsubishi has stopped it's development of electric cars. mazda will switch to its own engine for european models to help minimize risk from region's debt problems. but not everything is being called off. japanese and european automakers will step up partnerships on green technology and hybrid vehicles. back over to you. >> thanks much for that. >> shares of hon hai is up. sharp is down 5.8. hon hai agreed to buy the company. since then sharp has lost more than 60% of its value. shares of singapore fraser an neave has jumped. they will own more than 80% of ti ber beer. investors speculate that the singapore conglomerate will be broken up. coca-cola is eyeing their non-alcohol jake division. >>> after years of boom australia's mining industry is dealing with a potential slow down and amid gerns of china and europe. when cnbc visited northwest australia over the weekend they found a resource port operating at break neck speed and some big miners are pushing on with multibillion dollar exp

no border patrol and free travel between several european countries.ost europeans would probably say freedom of travel is one of the biggest advantages of the eu. europeans havealways been on the road from one location to the next, but some roads have literally shaped a continent. in our summer series, journeys in europe, we are on the european route e-15 this week. it runs through western europe. you will have to take the ship to cross the channel of course, but other than that, it is pretty much a straight tarmac line from scotland high up in the north via london and paris along the mediterranean coast down to the southernmost tip of spain. more than 3,600 kilometers overall. down in the far south, it becomes a place of encounter between europe and africa. >> it is an arduous journey south. the heat melts the asphalt on the highway between valencia and gibraltar. at the age of two, this young traveller is enjoying it hit stop along the way. he and his grandparents are on their way from barcelona to visit relatives. >> in some families his behalf, sib

we're not talking here about more european integration in a political sense where we're talking about a country that has lent a lot of money that once to rewrite the rules to make sure that it will get its money back is not exactly european about that i think is the problem that germany i'm sure a very pro european country right now is thinking in purely german terms when he talks about european unity let's talk about where you are playing we've got that region there in your country that accounts for a fifth of spain's economic output catalonia it's run out of money from madrid it's always been a prosperous autonomous region stressing it can actually do without madrid things must be pretty bad for its capital barcelona to admit it actually needs help now from central government yes it's true but we have to see the east the way in which. system works it goes this way. it is the central government that all the taxes actually ninety five percent of them and then distributes them among the different regions. following these. as they call it the reach of regions get less money and the poor

core traditionally both in terms of the mythology political mythology that is for me in the european union today but also economically traditionally good used to be the tonic water that's germany finland austria possibly netherlands there are some questions about them. however during the current crisis what's becoming more and more apparent is that the good really is kind of the bell both in terms of their response to the crisis but also because they're now experiencing exactly the same contagion as the rest of the eurozone has experienced and increasingly when you look at the g.d.p. figures to look at the retail sales figures you look at the investment flows you look at credit supply pretty much by any parameter possible by unemployment for example as well now increasingly good are not really that great in terms of economic growth either however we can still call them the good and then we have the bell and that is the countries which are currently in the limbo they are neither in growth territory territory knowing the c b a recession like the rest of the eurozone this is arlen it's

on between germany and other european countries generally seems to be winning that competition and justhow helpful though all of these contracts for for the economy are obviously we talk about germany but for europe i mean short of these investments they seem pretty big these contracts will they actually help. they will i mean they you know these these and this is the reason why why merkel and other european leaders are so keen to sign such big deals with the chinese is that they they create jobs so they do have they do have an impact in that sense from the start of the crisis germany has really been trying to to bind the euro zone into a tighter political and economic union chancellor merkel is always stressing how it's the only way out of the crisis do you think that policy is going to work if she really stick in pursuing that. it's very difficult to say she's talking now about political union and that. as she's making the idea of debt mutualization within the euro zone dependent on the creation of a political union and it's not at all clear whether they'll even be support for that in

investment bank is the going to get them billion new capital from the european sovereigns from the european commission as the result of that it will be able to leverage that to borrow sixty billion more so even on the surface right now it's very clear that the fiscal policy within the e.u. is completely if you want psychotic i mean it's shambolic in fact both the fiscal course in the more intrigued policy in the european union today is nothing more than continues the invention of complex. and your mistakes hadzic invention and i know when we're talking all about it i want to continue this conversation i want to stick to monti a little more after a quick break we're going to go to break professor good to have and then we'll come right back with more with him economist and coeditor of what if ireland default and also still ahead should other central bankers take cues from the workers at brazil's central bank today they're on the right i'll give you our case sense on what that could accomplish perhaps the first your closing market numbers. british. markets why not. find out what's really happe

the eu commission wants to give the european central bank new powers to monitor banks. eurozone countries would be required to comply with the new bank regulations. but other eu countries could participate as well. in total, around 6000 banks and national monitoring groups would be involved. >> the tasks of the european central bank in cooperation with national supervisory authorities would be to oversee financial stability, to ensure that banks in the eurozone are financially sound and stable and viable and will not run into trouble and need taxpayer money for a bailout. >> but there are critics of the new system. the german finance minister has expressed his skepticism, and he has backers in the eu parliament. >> we need a strong european body inspecting multinational banks that prop up national finance systems, but we do not need massive bureaucracies that count every penny all the way down to every corner bank and credit union. >> the eu commission is pushing for the new regulations, despite criticism from germany. >> friday wraps up the last day of the non-alliance

carmaker general motors continues to be plagued by concerns over its european subsidiary opel.he company has posted second quarter losses of more than 360 million euros. opel has been sluggish in sales in europe as the debt crisis ways on consumer spending. gm pointed to the company's restructuring drive across the atlantic as reason for optimism going forward. >> all right, you did not like the heavy metal, but he might like this sound even better -- a genie in salzburg -- puccini and salzburg. the new artistic director of the salzburg festival has shaken things up a bit. he has brought one of puccini's most popular operas. >> a little better for the ears. that is all we have time for now. >> thanks for watching. >> bye bye. captioned by the national captioning institute --www.ncicap.org--

and she is seeking to boost the flow of investment from baby no one into a european stability fund a firewall against financial trouble that the chancellor worked very hard to create over holland's calling nonny from the european council on foreign relations says the chinese are in no hurry to hand to berlin. with with the big hope in europe is that the chinese would invest in some of the new vehicles that have been crazy like the european stability mechanism. the chinese. offer lots of words of support today and yesterday but not much in the way of concrete promises to buy bonds in any case the chinese don't tend to make their bond purchases public so we don't know for example how much the chinese invested in european bones in the last two years since the euro crisis began anyway and we probably won't know so there's a lot of there's a lot of uncertainty about in the case of their boss but we see this is a european company and so it will benefit not just germany but also france and other countries in europe but lots of the deals that have been signed. off to german companies rolled

going on between germany and other european countries germany seems to be winning that competition. well germany is striving to make sure the euro stays afloat its old currency the day which market showing no signs of being discarded auntie's peter all of that has the details of burn ins old school savings for a rainy day. here in germany the don't try are still very much alive and kicking in fact in a store in central berlin the good old they market is still accepted as legal tender when it comes to purchases with an exchange rate of around two dogs marks to the euro the store's manager says that there's still enough of the old currency around to warrant them taking it was under name the reason we accept bleach marks is there are still plenty of people with the old currency we get quite a few people wanting to spend them in our store. it's not just in shops that they're accepted if you find a few d. mark coins down the back of the sofa germany's public telephones will happily take them off your hands germany officially dropped the old money for the euro over ten years ago in two th

union, china has been unable to increase trade with european countries. as a result the growth of the total trade in the first half of the year was limited. >> to make up for lost business abroad, the government hopes to find buyers at home. they hope to do this to get customers to buy more goods including foreign products. china's government hopes to attract investment and business by stressing the country's economy will continue to grow consistently. >> translator: basically the chinese economy is still growing at a steady pace. that is because we're implementing several policies to stimulate domestic demand. we aim to develop more by inviting foreign investments in china. >> translator: some chinese companies have accepted that invitation. this month in beijing a japanese organization arranged a display of japanese goods for chinese buyers. the japan external trade organization supports companies that might not be able to operate in china alone. the trade body helps them introduce high quality wares to chinese retailers. >> translator: we offer safe, r

well obviously any attack on iran would not be in the interests of the united states or the europeans and it wouldn't be in the interests of the israeli regime because it would be seen as an aggressor it would create major harm to the coble economic situation and the global economy is not doing well and the countries will blame the israeli regime for any deterioration of the global economy there is a possibility that israelis will carry out an attack because they are not rational actors in the eyes of the iranians but the iranian response would be very severe and if the americans. try to intervene on behalf of israel then i believe that we will have a major conflict in the persian gulf region and oil tankers oil installation got oil installations gas installations all these would most probably be destroyed the persian gulf is a very. small gulf and the iranians have a very long border so the iranians are quite prepared to defend themselves and i think the americans really know that all right well thank you for your insight and analysis professor side mohammad marandi from the universi

see, that's the mistake the europeans made. europeans believed for a long time there was no constraint on the amount of debt they could issue and what the government could do. because they were the richest, they claimed largest, most developed bloc of countries in the world. unfortunately, it catches up with everybody. if your public finances are not on a sustainable path, you are asking for trouble. and that trouble involved, as you can see in various european permutations, tax increasings. you don't want to go there. it's completely avoidable in the u.s. context, and that's what we're working for. okay. gentleman here. >> yes. you stated that the taxing the wealthy part won't work. >> not sufficient. >> well, and the reason you stated that is the way you defined it was in terms of repealing the bush tax cuts. now, to take it from a different perspective, we all know there's an enormous redistribution of wealth in this country in the last come decades. if you look at the wealth that is in that subset of the population and then

we have the ecb, european central bank meeting that you just talked about. we also have the jobs report that's coming out on friday. which is more important for u.s. investors and the markets? >> i think ironically europe is more important right now. that doesn't mean that the friday numbers aren't important. they are. they're going to also signal the underlying strengths of our economy. but europe today is playing a massive role. i mean, just look at what has happened in markets on thursday and friday based on a statement of a european policy-maker. so europe is more important, but keep an eye on the employment numbers because they are also full of information. >> >> susie: what are you expecting? how strong or how weak is that number going to be, and what kind of market reaction are you expecting on friday? >> we're going to look at the composition of the number as much as the headline. so everybody focuses on how many jobs were created and what was the unemployment rate. that's important, but much more important is, is the problem of long-term unemploymen

off of the german companies are all going to european companies and in that sense there is a competition going on between germany and other european countries and mostly germany seems to be winning that competition one other way germany differs from their rest of the union and its old currency be. not only credible but still and. has the details of berlin's old school savings. here in germany the don't trot is still very much alive and kicking in fact in the store in central berlin the good old they market is still accepted as legal tender when it comes to purchases with an exchange rate of around two dollars each marks to the euro the store's manager says that there's still enough of the old currency around to warrant them taking it was on the name of three the reason we accept bill which marks is there are still plenty of people with the old currency we get quite a few people wanting to spend them in our store for us for it's not just in shops that they're accepted if you find a few demarche coins down the back of the sofa germany's public telephones will happily take them off your han

vehicles that have been crazy like the european stability mechanism. the chinese. offering lots of words of support today and yesterday but not much in the way of concrete promises to buy bonds in any case the chinese don't tend to make their bond purchases public so we don't know for example how much the chinese invested in european bones in the last two years since the euro crisis began anyway and we probably won't know so there's a lot of there's a lot of uncertainty about in the case of a bus obviously this is a european company and so it would benefit not just germany but also france and other countries in europe but lots of the deals that have been signed. for german companies are open to european companies and so in that sense there is a competition going on between germany and other european countries and it mostly generally seems to be winning that competition. coming up to twenty five minutes past the hour now dimitri's next with the business and me to the markets have been anticipating the jackson hole summit in wyoming all week well now that it's on a h

despite numerous problems at home president obama seems to be very much involved in european affairs what state does the united states have in the resolution of the euro crisis to discuss that we are now joined by hans very there is in a prominent german economist and the president of the e for institute thank you very much for your time sir. how does the euro crisis affect their american economy the problem is there in the five european crisis countries including italy. we have a government debt of nearly three and a half trillion euros and we have a banking debt of more than one trillion or talking about twelve and a half trillion euros. this debt is also yes it's sitting in some portfolios of investment companies throughout the world including the american investment companies so it's obvious they're very afraid of not getting their money back if some of the southern european countries default and they look for someone else to pay them the money and this is why the urge germany in particular to step in in. agreed to an expansion of the bet bank and the banking union which would so

the european nuclear research center or simply cern operates the largest particle physics laboratory in the world its most celebrated project is the large hadron collider the giant facility built to tast fundamental physical theories it's a unique particle accelerator that unite scientists from nearly one hundred countries some seven hundred russians to take part in constructing the collider and many of them continue to work at cern. however mr hurd thank you for joining us on the show. welcome mr heard rush has started the procedure of joining has an associate member well what are the benefits well first of all for russian scientists of this proceed you can you can you tell us please where the benefit is not only for russian scientists the benefit is for russian nationals in general engineers technicians in the administration every there because they can apply for positions at certain limited duration for example and then learn doing science or engineering new technologies in an international environment and then bring this back into that country so this is a big opportunity for rus

to stem the spread of poverty that's forcing companies that of long been making a profit on the european market to drastically rethink their strategies to cater for people struggling to make ends meet reports with more than eighty million people in the e.u. what risk of poverty including twenty million children this has become an all too common sight in european cities as a debt crisis and its effects drag on from madrid to athens and even brussels twenty three year olds are wrong as one of many jobless and homeless europeans when he's not out looking for a job he said so this corner reading his favorite classics hoping to receive enough money from passers by to buy some food for himself and his dog. before the crisis i had an apartment i worked as a group leader and camps there hasn't been much of a difference for me since then except the bread is more expensive everything is more expensive if i meet someone who gives me an opportunity and tells me ok you can work next week i'll say yes ok i'll try it and if it works it works if not the nevermind. but the numbers don't paint a nice pict

at the polish institute of international affairs and a visiting senior fellow at the center for european studies right gentlemen cross-talk rules and i mean you can jump in anytime on john if i can go to you first year mr barack obama said in chicago nato has been the bedrock of common security freedom and prosperity for nearly sixty five years it hasn't just endured it has thrived because our nations are stronger when we stand together eleven years after the occupation of afghanistan to those words ring true to you well we should ask if they ring true to an afghan or to a libyan or to a lot of people in the balkans the issue is that obama sees nato as securing western influence and western power and western security. he's smart enough to know that nato is not about. progressing democracy or or transporting freedom to the war world and so forth afghanistan is a perfect example nato has laid waste to that country for a decade every aspect of the stated mission has failed. for virtually every six month period since obama began his surge. violence and bloodshed has increased so so in terms