two draft reports all of the deepening of the economic and monetary union i would make these report in close cooperation with the president of the european commission in this report how we mention the main building blocks for d.c. the current economic and monetary union and i will make a proposal on the working methods to achieve these objectives in those building blocks banking need to gratian is an important chapter. and in the chapter of the bank need to gratian. with d.d. . india at this stage on supervision on defaulted insurance and on the distribution so we are working on it it is the beginning only of the work i will present building blocks in the working metal and we go on with that work later on and hopefully we can achieve the present results of that work already by the end of this year what will happen if we fail i never to hypothetical questions because we will not fail we will not face in the meantime we have to deal with the banking problems in several of our members states and what we are working on in the deepening of the economic and monetary union has been so in some

>> what world leaders have been trying to do is set out our road map for a genuine economic and monetary union. what they hope is if europe's leaders endorsed this vision, that will convince the markets they are committed to standing behind the single currency. these are the blueprints for the future and it probably will take over 10 years to bring about. some of the ideas are quite ambitious, such as a banking union, a single european treasury, and changes to international budgets. one of the hopes in all of this is if the eurozone is more disciplined, particularly with budget matters, it might repaid germany which shouldered be debt burdens of some of those we current nation's. if the eurozone survives, but the needs to be closer integration, and that of course will raise questions about

as such we must strengthen the monetary union by more banking fiscal economic integration and in homs governance and democratic accountability i working on building blocks for the deepening of the economic and monetary union in close cooperation with the president of the european commission every quarter due to a peon council in july let me be clear that is no way by for the euro that is only the way i had to do was more integration we want wide awake greece to stay in new york those old white expecting its commitments second on the e.u. russia might not prudish i'm sure we are he confirmed that the best basis for close of partnership should be an ambitious and comprehensive by not a new agreement that includes trade and invest in this context we look forward to that other peckish russians w t o accession. the idea of where you are asian economic union is based is based on the rules could lead to positive contribution to jay prosperity and cooperation. thirty eight you want to be your spot in it it's more that he session and that's why i see the photo development of the bottom

he issued a report, entitled towards a genuine economic and monetary union. he drew up a plan for the next ten years with three other eu leaders. the report proposes integrating bangi banking pervision. it also calls for member nations to get approval from the eu if they need to issue government bonds above a certain level. another proposal is the introduction of common bonds issued by member nations. but a heated debate is expected as germany and other members oppose the bond plan. their concerned that richer countries will have to cover the cost for debt-ridden members. >>> now let's take a look at what is taking in south korea. our reporter in seoul, sue choi. >> reporter: one reason is a massive outage that gripped the country a year ago. the power failure affected 1,620,000 households and businesses across the country. [ siren sounding ] >> reporter: last week the government conducted blackout drills that involved 28 places like companies and hospitals. in seven cities. assuming about 20 minutes of power outage. the drills were designed to provide korean

weren't ambitious enough to create the political institutions and machinery needed to make economic and monetary union work. now, the question is, is this failure of the eurozone permanent? in my view, the failure is one of design and execution, not concept and principle. now, you have heard tonight, and you'll hear it again, the other side tell you that the whole thing is going to hell in a hand cart. but the argument, i think, is that there is actually a workable version of the single currency. the question is whether europe has the political will to implement this version. so yes, a serious stumble. yes, a serious flaw in design. but failure for the whole european project for the whole of the european idea, i would argue not. now, the historical determinists over here -- and i don't quibble with neil's qualifications as an historian. it's very easy, you know, to be an historian, talking about the past and looking through your rearview window -- mirror the entire time. for a politician, i'm afraid, and a minister, you have to be a little bit more practical and a little bit more serious. so has europ

may ask is different this time well now leaders have this plan for a so-called genuine economic and monetary union it's coming out of the president of the european counsel's office that's mr herman van around boy it lays out building blocks for fiscal economic and banking integration but who is herman van rompuy exactly well you're not the first person to ask the question that i want to know when will the last is who owe you the good of you know what are you in europe would have ahead of you. nevertheless van and is friends and some elected leaders are trying to hold the currency union together as support fractures around them they're trying to hold it together despite protests bailouts the election of neo nazis the deflationary spiral down of the condom ease entered up of bond yields in places like spain and italy and nigel farage who you just heard from has been very frank about the possible consequences he fears take a listen this project could even reach. socialism in europe we'll start prediction more on that later first does the leader of the u.k. and pendants party member of european parlia

the economic and monetary union can only function if each and every country's budgetary and ducuharinga commonrestbl currency. we also took another important decision yserday during our tour is some discussin we founs hro ophepossibilities reentiantimetables to make use of te instrents coming to reassure and stabilize the markets. financial assistance to spain will be provided without seius e nagvde the european council agreed on a method to take forward our work on those four ilding blocks. president of the council has been invited to developtetimeade opioth pdent of the commission committee come of your group and the central bank. meer states will be closely involved. there will also be consultations with the european parliamt and we will present the final report before the end ofteya,wi adfieo coder. i am happy to announce another breakthrough, an historic one after 30 years of discussion on the european agreement on the lastottin mier and i in the sense of compromise. but let's explain the major achievement through the prime minister of denmark. euanour coulded this erg sense the g

the eurozone is a fundamental misconstruction between economies that are so different in economic and monetary union between them was never going to work the only way forward for greece spain and portugal and such countries is to recognise that the euro is a mistake to break away from it to get their own currencies back to have a composite devaluation and to get their own democracies back that is the only way forward what we're doing here if we keep propping up the euro we get rid of our ways of preserving a reinforcing failure what we're doing is guaranteeing a miserable future not just the tens of millions of people who falls below the poverty line but actually we were pay a very heavy social cost for this too in terms of insurrection and violence and of course want to. follow all the reaction to the agreements of the e.u. summit actually doing so twitter feed including some jokes by journalists after angola merkel gave into the demands of italy and spain at the e.u. summit and one german reporter told tatar that his country had lost twice it's only last night of course he was going to the europea

integration much too much in the run-up, you know, in the early years of the european or the economic and monetary union where of course there was exc s excessive convergence because it basically led to complacently at the policy level, so the point again, is you got to reach this sort of threshold, and then the sort of divergence will actually in my opinion become converged and i think the ecb is perfectly capable of that. >> let me go way to the back of the room, and then we're going to lump together another question here. oh, yes, okay, i get the last question on there. go ahead. sflim' randy henning at american university and the peterson institute. i wanted to thank the four of you for a really interesting session this morning and follow up up on ulrike's points about the transformation of european european politics as we move forward, in particular, i wanted to ask you a little bit about the development of european political movements because i think these are going to be an important compliment to the kind of institutional transformation that you have discussed and the fine point on it, i'd like

the eurozone is a fundamental misconstruction between economies that are so different and economic and monetary union between them was never going to work we will stagger on after this conference i think without much conclusion at all. during the surge is said to have received a summons saying he must report to a london police station on friday he's currently ensconced with an ecuadorian embassy waiting for the south american nation to accept or decline his plea for political asylum because government is currently studying the legal and political implications of granting his request meanwhile more than ten thousand e-mails have been sent to the country's embassies in both the u.k. and the u.s. calling for it to say yes also thousands of signed a petition started by the u.s. based civil liberty group just foreign policy well for more on sunday's asylum plea let's talk to sibel edmonds she's founder and president of the national security whistleblowers coalition. she's live there in washington what are the chances then of getting asylum it seems to be taking quite a long time for ecuador to decide does

monetary union. look the eurozone is a fundamental misconstruction between economies that are so different an economic and monetary union between them was never going to work the only way forward for greece spain and portugal and such countries is to recognize that the euro is a mistake to break away from it to get their own currencies back to have a competitive devaluation and to get their own democracy is about that is the only way forward what we're doing here if we keep propping up the euro we try to find ways of preserving and reinforcing failure what we're doing is guaranteeing a miserable future not just for the tens of millions of people who falls below the poverty line but actually we pay a very heavy social cost for this too in terms of insurrection and violence has to have for you this hour here in our facing a deadline well we can lease editor join a son to turn himself over to u.k. police and as i quit or still miles over his request for asylum fears of outside pressure on the nation intensifying. plus searching for energy independence but coming up short u.k. seeking out foreign investors to

monetary union. look the eurozone is a fundamental misconstruction between economies that are so different an economic and monetary union between them was never going to work the only way forward for greece spain and portugal and such countries is to recognize that the euro is a mistake to break away from it to get their own currencies back to have a competitive devaluation and to get their own democracies back that is the only way forward what we're doing here if we keep propping up the euro we try to find ways of preserving and reinforcing failure what we're doing is guaranteeing a miserable future not just the tens of millions of people who'll be falls below the poverty line but actually we were hit by a very heavy social cost for this too in terms of insurrection and violence join a son says he has no plans to hand over to police after being summoned for extradition procedures in his interview with the b.b.c. the whistleblower stressed that asylum law both internationally and the massaquoi takes precedence over extradition law and we can make senator has been holed up in ecuador's embassy in london fo

with their problems until they abandon the monetary union look the eurozone is a fundamental misconstruction between economies that are so different an economic and monetary union between them was never going to work the only way forward for greece spain and portugal and such countries is to recognize that the euro is a mistake to break away from it to get their own currencies back to have a competitive devaluation and to get their own democracies about that is the only way forward what we're doing here if we keep propping up the euro the twenty five ways of preserving a reinforcing failure what we're doing is guaranteeing a miserable future not just for the tens of millions of people who falls below the poverty line but actually we pay a very heavy social cost for this too in terms of insurrection and violence. after the e.u. summit in brussels the german chancellor will want to gauge how her own country has reacted to the latest measures and artie's acts on a boycott records there is growing anger among germans that they are having to bear the brunt of the trouble states. it's a job interview with geopolitical implications and yes his family ha

the eurozone is a fundamental misconstruction between economies that are so different and economic and monetary union between them was never going to work we will stagger all of this conference i think without much conclusion at all. after the e.u. summit in brussels the german chancellor will want to gauge how her own country has reacted to the latest measures and as artists envoy reports there is growing anger among germans that they are having to bear the brunt of the trouble states. it's a job interview with geopolitical implications and euro says family has been running these greek restaurant for almost three decades ever since they immigrated to germany hard work and self-reliance made it a success but now they are under increasing pressure to share the fruits of their labor. the problem is that in greece that. they come here and like the money in the street but we're also working very hard. working from the morning till night every day they get a dozen of calls from their greek can patch or its with requests for money jobs of both some like mall attack is just walking in a restaurant owner him

yesterday, we discussed the report on the future of the economic and monetary union. i presented earlier this week at the request of the heads of state of government and i made this report in close corporation with the president of the european commission, the euro group, and the ruer peen cementer bank. as you know, the report outlines and ark architecture based on integrated frame works for the financial center, fiscal matters, and economic policy. there's steps forwards in these three areas that must be accompanied by increased democratic legitimacy and accountability. this are the four building blocks. let me start with the financial sector here beyond general agreement on the longer term view that we already achieve a hugely important first result. last night, we agree that an under the circumstances, and under certain conditions, esn could recapitalize bank's diet, and the biggest and most important condition is setting up a single supervisory mechanism for banks, and eurozone leaders asked counsel to work in a very speedy way so that we can have results by the e

second and third building blocks of the report, fiscal methods and economic policies, we all share the same analysis. economic and monetary union can only function if each and every country's budgetary and economic policies are sustainable. this is the conflict between countries sharing a common currency. we also took another important position yesterday, agreeing to open the possibilities for countries that are complying with common rules, recommendations and timetables to make use of the efsf/esm instruments for the markets. it will be provided for spain. the european council agreed on a method to take four or work on those four building blocks. as president of the council i've been invited to develop a road map again in close cooperation with the euro group and a member states who will be closely involved. if there will also be consultations with the european parliament, and we will present the final report before the end of the year with the first reported in october. i am happy to announce an historic breakthrough after 30 years of discussion on the europeans, we reached an agreement on the last outstanding issue, the seat

herman van rumpi issued a report on friday entitled toward a genuine economic and monetary wr union. he drew up a plan for the next ten years with three other eu leaders. the report proposes integrating banking supervision to prevent bank failures which burden state finances and calls on member nations to get approval from the eu if they need to issue government bonds above a certain level. another proposal is the introduction of common bonds that would be jointly issued by member nations. but a heated debate is expected as germany and some other members oppose the bond plan. they're concerned that richer countries will have to cover the costs for debt ridden members. >>> greek prime minister anthony samaras has appointed a respected economist to fill the post of finance minister. the prime minister's office said samaras chose the leader of an influential economic research group. the first choice, banker vassilis rapanos quit after being hospitalized with abdominal pains. the prime minister launched his conservative led government last thursday. he, too, entered the hospital to under

second and third building blocks of the report, fiscal matters and economic policies, we all share the same analysis. economic and monetary union can only function if each and every country's budgetary and economic policies are sustainable. this is a founding contract between countries sharing a common currency. we also took another important decision yesterday night during our eurozone discussion. we agreed to open the possibilities for countries which are complying with common rules, recommendations, and timetables to make use of the existing esf, esm instruments to reensure and stabilize the markets. assistance to spain will be provided without seniority staters with the authority provided by the esf. the european counsel agreed on a method to take forward the work on those four building blocks. president of the council have been invited to develop a road map again in close cooperation with the president of the commission, the euro group, and member states will be closely involved. there are also be consultations with european parliament, and we will present the final report before the end of the year with already a first re

the way that they helped the european integration much too much in the early years of the economic and monetary unionhere there was excessive convergence, because it basically led to complacency of the policy level. the point is you have to read this sort of threshold and then the divergence will become convergence. ecb is perfectly capable of that. >> let me go to the back of the room and then we will get another question here. the last question. >> i am randy at american university and the peterson institute. i want to thank the four of you for an interesting session this morning. and follow up on ulrike guerot's point about the transformation of european politics as we move forward from here, which i thought it was intriguing. in particular, i want to ask you a little about transeuropean political movements. these will be an important complement to the kind of institutional transformation that you discussed. i would like to ask you, because i think that you could look more closely at this than most of us have, i would like to ask you about the cooperation between the french socialist party and the

weren't ambitious enough to create the political institutions the machinery needed to make economic and monetary unionwork. the question is, is this failure of the eurozone permanent? in my view, the failure is one of design and execution, not concept and principled. now you have heard tonight and you will hear it again, from the other side of the whole thing is going to hell in a handbasket if the argument i think is that there is actually a workable version of the single currency. the question is whether europe has the political will to implement this, so yes the serious stumble, yes a serious flaw in design but failure for the whole european project, for the whole of the european idea i would argue not. the historical determinists over here, and i don't quibble with niall's qualifications as an historian. it's very easy to be an historian talking about the past. [laughter] looking through your rearview window -- mirror the entire time. for a politician i'm afraid and administer you have to be a little bit more practical and a little bit more serious. so had europe failed i would say it is just too

the way that they helped the european integration much too much in the early years of the economic and monetary union where there was excessive convergence, because it basically led to complacency of the policy level. the point is you have to read this sort of threshold and then the divergence will become convergence. ecb is perfectly capable of that. >> let me go to the back of the room and then we will get another question here. the last question. >> i am randy at american university and the peterson institute. i want to thank the four of you for an interesting session this morning. and follow up on ulrike guerot's point about the transformation of european politics as we move forward from here, which i thought it was intriguing. in particular, i want to ask you a little about transeuropean political movements. these will be an important complement to the kind of institutional transformation that you discussed. i would like to ask you, because i think that you could look more closely at this than most of us have, i would like to ask you about the cooperation between the french socialist party and t

quote european integration must rush in the run-up in the early years of the european or economic and monetary union where of course there was a success of convergence here the policy level. as a complete again is you've got to reach a sort of threshold and then the sort of divergence to converge and i think the ecb is perfectly capable of that. >> let me go back to the back of the room and then we are going to want to get there another question here. >> i'm from the american university and the peterson institute. i want to thank the four of you for an interesting session this morning and to follow-up on the point about the transformation of european politics as we move forward from here which i thought were very intriguing. and in particular, i wanted to ask you a little bit about the result of the european political movements because i think these are glad to be an important complement to the kind of nutritional transformation that you've discussed. to put a fine point on it i would like to ask you, because i think you look more closely at this than most of us have and i would like to ask about th

weren't ambitious enough to create the political institutions and machinery needed to make economic and monetary union work. the question is, is this failure of the eurozone permanent? in my view the failure is one of design and execution, not concept and principle. you have heard tonight and you'll hear it again, the other side tell you that the whole thing is going to hell in a hand cart. but the argument i think is that there is actually a workable version of the single currency. the question is whether europe has the political will to implement this version? so, yes, a serious stumble. yes, a serious flaw in design. but failure for the whole european project, for the whole of the european idea, i would argue not. a historical determineance over here, i don't quibble with niall's qualifications as a historian. it's very easy to be an historian talking about the past. looking through your rear view window, mirror, the entire time -- [applause] >> for a politician, i'm afraid and a minister, you have to be a little bit more practical and a little bit more serious. has europe failed? i would say it is

the cost of finding a cheaper and cheaper i'll just go so you can sort out two scenarios that if you get the economic convergence to underpin the monetary and fiscal union then you can have a sort of european renee thought with all these competitive risk reforms underpinning a strong growth in the south of europe the danger i think is that we're headed for the tally in marriage in. italian marriages where you have long lasting economic divergence within one monetary union of course they claim no love if what they like and what i thought that's all back in the one nine hundred fifty s. the divergence between the dynamic north of italy and the stagnant. ok max is i usually say in my program going to give you the last word. oh thank you peter for the last word it's got to be. to do address the corruption as it's been we know we're heading into this conclusion i mean we can talk about policy initiatives and we can talk about supply side economics and keynesianism and austerity but all that smoke and mirrors unless you get rid of the corruption the underlying corruption which is that there's only getting worse when you have banks in the u.s. for example cove

integration much too much in the run-up, you know, in the early years of the european war the economic and monetary union were of course there is successive convergence because it basically lead to complacency at the policy level. so the point again is he the guy to reach a certain threshold. another sort of divergence will actually come in my opinion, converge. i think the ecb is perfectly capable of that. >> let me go away to the back of the room and then we will lump together another question here. yes, okay. i've got the last question here. go ahead. >> and then beheading at american university at the peterson institute. i want to thank the four of you for an interesting and this morning. to follow up on ulrike's points about the transformation of european politics as we move forward from here, which i thought were very intriguing. in particular, i want to ask you a little bit about the development of trans-european movements because i think these are going to be an important complement to the kind of institutional transformation you discuss. and to put a fine point on it, i'd like to ask you because

we should give more sovereignty and control to the european union we have to remember that it is the e.u. institutions that have signed the policy the economic and monetary policy that is affecting the present times in my view this institutions have failed dramatically and what we are doing now is giving more powers to this institutions that have failed this is. a total lack of common sense and i think that's. merkel has decided to agree to this bailout firstly because she's getting more power to the e.u. in exchange and secondly because she sees that if she doesn't help italy and spain then the euro would collapse well there are certainly a lot of analysts that have been saying for months now misandrous in the eurozone is destined for collapse mr martin douras an m.e.p. member of the e.u. budget committee certainly a conversation that requires more time than we have available for us here are two today thank you for coming on the program and here thank you. all right well it's good to have you with us here on r.t. today the deadline set for julian assange to surrender to london police for extradition procedures has now passed the weekly's editor had warn

dollar and during this economic crisis and downturn it's bringing out structural flaws in the euro. number of them, it's a monetary unionountries during periods of economic stress, and you have significant competitive disparities and differences in unit labor costs. you have a monetary union without a federal bank union. you have undercapitalized banks and most importantly from my perspective you don't have a one area for a crisis center. >> how do you take the variables and apply that across your portfol portfolios? what do you do paced on that? you say you're trying to avoid risk, in a risk off position, that means what? >> using our fundamental research to find those sector and idiosyncratic alpha opportunities and we're staying out of europe from a sovereign perspective and industry perspective looking at australia, canada, sweden and also other sectors of the market, the insurance market, the financial ek issor market and again the focus here is a high quality trade. >> let me change gears with a final question. fidelity has been known for decades as an equity-driven shop, basically a growth oriented investment sho

and its economic crisis, as i mentioned a moment ago, the country has asked the european union for a bailout for its banks. an international monetary fund report friday said spain will need at least $50 billion to get its footing back. nina dose santos is in madrid and has been following the developments. what exactly is spain asking for? we have asked the $50 billion mark, but is that what spain wants? >> well, this is the key issue. spain technically hasn't asked for anything. that is what came out of this conference call that eu finance ministers of the 17 countries that use the money agreed to. spain was basically going to ask in the next few weeks or so, but only once they had the final independent audit that they have commissioned of their banking system publishes. they won't just have the figure, round about $50 billion you're talking about. they'll have their own independent figures. the eurozone finance ministers have agreed on a maximum sealing which ends up being 100 billion your euros or $125 billion. >> and so nina, spain is already endured some austerity measures. could it be as deep, could it be to the same degree as

get reasonable control and management over the banks, that's a pretty good baby step toward real economic union, or do you agree with it? >> it's one of the four pillars, monetary and greater political integration. so, it would be a huge step, but the problem is that is, "a," who pays for it, and, "b," what assurances do you have that national jurisdictions will implement foreclosure rules and everything else. so, it would be a huge step, but it's unfortunately -- >> ah. >> it looks like we just lost mohamed as he was saying it was a huge step. we'll try to get him back at another point, but we appreciate mohamed el erian's team for coming on. the key points are you can watch the rally right now, while it's certainly a stem for europe, he has concerns on how the details work out. >> he was about to really spill the full beans on what the pimco plan was, you asked the question and he pulled the plug. >> maybe your credit card that was paying for the satellite time, hit its limit. i don't know. but somebody didn't put enough in there for the shoatellite ti. >> not a credit card issue, but anyway. >>> coming up, why shares of kb homes are jumping up, and what the

weren't ambitious enough to create the political institutions the machinery needed to make economic and monetary unionwork. the question is, is this failure of the eurozone permanent? in my view, the failure is one of design and execution, not concept and principled. now you have heard tonight and you will hear it again, from the other side of the whole thing is going to hell in a handbasket if the argument i think is that there is actually a workable version of the single currency. the question is whether europe has the political will to implement this, so yes the serious stumble, yes a serious flaw in design but failure for the whole european project, for the whole of the european idea i would argue not. the historical determinists over here, and i don't quibble with niall's qualifications as an historian. it's very easy to be an historian talking about the past. [laughter] looking through your rearview window -- mirror the entire time. for a politician i'm afraid and administer you have to be a little bit more practical and a little bit more serious. so had europe failed i would say it is just too