serbia and macedonia are struggling to find out what the eu wants.oth countries are struggling to become members of the european union and both are doing all they can to fulfil the conditions set up by brussels, but both seem to be going a little bit over the top in their ambitions. three years ago, the eu drop the set requirements for serbia and macedonia. the move was supposed to help the balkan states in their harmonization process, but it is increasingly testing the nerves of the west. countries like germany are registering a rising number of asylum seekers from the balkans. they want the countries to act, and they do -- with drastic met -- drastic measures. >> the family are back home in the macedonian capital. taking advantage of travel restrictions, they lived in italy for a summer without a visa, but he wanted more. he wanted to work for relatives in italy, even though he did not have a work permit. >> we knew that it was not legal, but we still decided to go there. there is no work for me here. >> at first, things went well for the family in

>> roumania only join the eu in 2007. even at the time, concerns about corruption and organized crime, for instance, were very high. so the eu placed rumania under a special monitoring system to make sure it actually implements reforms, and that also concerns the judiciary system. this was originally set up for only three years, but it is still continuing today. we expect another report later this year. we hear from our sources that romania is still a lot going to get -- is still not going to get the spot. romania does want to join, and you still has not given the country full access, so that is something with the eu's ministers have decided to directly link the progress report from the monetary -- monitoring commission with talks about access, so romania has to get good marks in terms of implementing reforms and making sure that its standards comply with democratic system standards in order for the discussions to go on, and we are not expecting this to happen this year. >> in brussels, nina, thank you so much. >> are aro

subsidize destruction -- how eu money is threatening a greek tradition. and eu citizens in the south american jungle. you are looking for peace and quiet? do not go to the alps. they have become far too crowded. that is with the tourism brochures of the small but impressive mountain range suggest. they stretch across polish and slovak as territory. both countries have overcome border disputes and have established it as europe's first cross-national park, but that the subject of heated debate, in particular on the slovakia inside. >> eric is a nature conservationists. for 18 years, he has been observing wildlife here. the wilderness is home to more than 40 bears. >> the bears are everywhere here. it is very difficult to grow in the calamity, and if you do, you can hear broken branches or some noise, but when you disturbed it, they run away. >> this wild landscape may look remote and pristine, but there are problems -- natural and man- made. in 2004, a huge storm blew down 3 million trees. the park administration has authorized some logging and wants the la

as a result, eu fishermen bring far less support than they can sell. if they catch turns out to be bigger than expected, they throw the excess back into the sea. that way, almost 1.3 million tons a perfectly edible fish from the north atlantic go to waste every year. at the same time, trawlers have joined other international fishing fleets off the coast of west africa. this form of fishing tourism comes at a huge cost to local communities. >> there's no need to fight for food. there should be plenty for everyone here off the coast of west africa. the atlantic ocean's chilly currents are teeming with fish. for centuries, they've been supplying wildlife and humans with a surfeit of food. but these days there are some uninvited guests at the feast. plunderers who are greedy and insatiable. they've exhausted their own seas, over-exploiting their own waters and leaving them virtually empty of fish. >> in europe, in our own waters, roughly 88 percent of fish stocks are over-fished. that's more than can be replaced. in some fisheries we have fishing fleets th

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 summit in iran. the country wanted the meeting to strengthen its influence in the region, but instead, it is coming under incre

the deal also seized airbus' only production facility outside the eu. the new agreements will net airbus more than 4 billion euros in total, but the agreement is not just profitable -- it is politically important as well. chinese airlines refuse to pay environmental protection taxes required by the eu, and china recently canceled a similar deal due to a spat with regulators. business leaders from both countries also agreed to expand the chinese telecom network, and volkswagen ag aims to expand its chinese operations. local consumers buy more volkswagen product than germans do, and the german company has long seen china as a key market. vw produces cars and components in 11 chinese factories, and has plans to build a new plant. groundbreaking is scheduled for friday, and chancellor merkel will be in attendance. >> moving on to other international news stories now. world leaders have strongly criticized iran's support of the syrian regime at talks hosted by tehran. >> egypt's president says only effective interference from outside will end the bloodshed i

. >> it is another day of shuttle diplomacy in the eu debt crisis. today, it was the leaders of france and italy who got together. their message -- they will do everything to defend the eurozone. >> that is a turn of phrase we have heard a lot from eu leaders in the past few days from the head of the european central bank, mario draghi, to angela merkel right here in germany. >> what exactly does everything mean and do all those leaders in the same thing? that is by no means certain. >> in particular, the idea of giving a banking license to the eurozone's rescue fund looks like a big sticking point. >> francois hollande and mario monti vowed to do everything to protect the euro, though they did not disclose whether that would mean pressing through the european stability mechanism to have a banking license so that the permanent bailout fund had direct access to the european central bank. hollande and monti stressed they will act in unison. >> our relationship has reached an important point. in order to iron out the issues, including future ones, which

the country's private beaches, designed to keep umbrellas closed in protest of a new eu directive. the italian government grants six-year licenses. brussels was to see those licenses auctioned off. that is something workers here fear can put them out of business. >> some sovereign walled fun from kuwait or shady bidder could undo all the work we have done. >> together the beaches make up a quarter of the country's coastline. they are often family-run businesses. the strike is yet another reminder of how hard it is to overcome the old ways of doing things in italy, and it is another headache for prime minister mariio monti. >> in corporate news, a blockbuster quarter for toyota. the japanese carmaker's shares skyrocketed by 250%. >> good news for toyota, which has been recovering from japan's earthquake and tsunami last year. over 14 million vehicles were also be called over the last three years. >> toyota has won back the affection of the world's drivers. second quarter profits came in well above expectations. >> we saw a sharp increase in all regions. it was a rebound from the pre

we just signed an agreement with the eu where we recognize the eu national security program. instead of the tsa going to inspect and validate the cargo program, it was a huge of the taking. the eu took on the responsibility of establishing a national program. we recognize that. that is a way we move forward in partnership to say, how can we love all our resources and not try to be the one agency or department that does all things at all places at all times with all people. >> a couple more and then we will open up the questions. the tsa is still a very young organization. it came from a career in the fbi. compare and contrast. i wonder if you have a moral problem sometimes. everytime you turn on your computer, it is a do not touch my junk stored. -- story. the poster kids for everything that everyone resents. had the force this organization going forward? >> -- how do you forge this organization going forward? >> the tsa is just 10 years. there are a lot of challenges. that is through training, for example, all officers are going through tactical communications training. they

. >> belarus has been the target of eu criticism for its poor human rights record. this has ratcheted up the ongoing diplomatic crisis. >> it is a question that will be discussed at the next meeting of eu ambassadors. there are range of measures considered appropriate that the eu could adopt. >> with parliamentary elections in belarus just weeks away, it is likely that minsk has not heard the last of those swedish teddy bears. >> we are going to take a break. do not go away. just 60 seconds. >> see you soon. >> welcome back. as we mentioned earlier, the fighting in the syrian city of aleppo could be entering a decisive phase. government forces are pushing into districts controlled by rebels. >> the same happened in damascus last month. it seems the rebels are struggling to hold onto their gains in syria's most important cities. >> their firepower is no match for that of the government. where are they getting the arms that they have? >> some rebels are resorting to making their own weapons. that is not the whole story. >> this concoction is a recipe for explosives. t

eu subsidies are welcome in greece, but it turns out that spending funds is not so easy.hat means their usefulness in stimulating the economy is minimal. >> we will not see any direct results this year, but we are assuming that in the near future, these key projects will help put an end to the recession, so the economy can at least stabilize. >> the hope now is that the kindergarten can be built next year if the whole country does not go bankrupt first. >> month over month, spain is seeing some glimmers of hope. the unemployment number has decreased for the fourth time in a row. seasonal employment accounted for most of those decreases as employees in the -- businesses in the tourism sector continued to make summer hires. that means not all spaniards who found work over the last month will be able to stave off unemployment once the ball rolls around. >> the flame that lit the fire of the eurozone debt crisis begins with a property bubble that went bust. >> many in germany who are watching their own property values skyrocket worry that history could repeat itself. >> the p

was out launching a new campaign called "i want europe," supposed to be talking up membership in the eu, and that could prove very important for angela merkel in the coming months. >> thanks so very much. things may be looking bleak for the eurozone as a whole, but german tax revenues are surging. berlin's public finances are back in the black in the first six months of this year. >> that is even as europe's biggest economy begins to feel the effects of the debt crisis. new figures showed germany's budget surplus of over 8 billion euros. >> while other euro countries struggle with huge deficits, the money is pouring into germany treasury. in the first half of the year, the government took in more money than it spent. the surplus was due to a strong labor market and steady consumer spending. payments into the retirement and unemployment entrance programs were especially strong. after seeing a budget surplus in the year 2000, germany's fiscal situation fluctuated. in some years, new debt reached 3% of the gross domestic product, violating the stability and growth path. the good news comes

>> westerwelle said further financial aid would have to wait for the troika report by the imf, the eu, and the ecb to be issued in mid-september. >> the greek foreign minister promised athens would introduce a new austerity measures added to the coming weeks in order to save 11.7 million euros and satisfy international creditors. but he does not want to see the greek growth suffered too badly. the two foreign ministers are not just awaiting the troika report. germany's constitutional court is due to rule in mid-september on challenges to the new esm bailout fund. until then, the big decisions facing the eurozone are on hold. >> with that german court ruling just weeks away now, athens has embarked on a crucial round of economic diplomacy. our political correspondent told us what we can expect. >> what we can expect is a slew of headline-grabbing meetings that begin in athens on wednesday when antonis samaras, the greek prime minister, meets with jean-claude juncker, the head of the euro group. that will be followed this week, as we have already seen, by meetings in berlin. on wednesda

"the wall street journal" says the eu anti-fraud office is questioning the business. members of the anti-fraud office told nhk they're conducting an investigation but they did not provide details. the syrian come of pane w-- com pane was owned by cousins of president assad at the time of alleged trade. the assad regime is reselling the cigarettes at high prices. it says the profits are being used to finance its crackdown and the paper says government officials are using tobacco to pay members of militias fighting on their side. and the journal says people in, at japan tobacco international deny breaking any sanctions. the paper quotes a spokesperson saying the firm has not sold cigarettes to the company since assad's relatives were placed on the sanctions list. >>> ethiopian prime minister has died of an undisclosed illness. he ruled the east african country more than two decades. his death raised fears of a political vacuum. state run television reported that the prime minister died monday at a hospital in belgium. it says he had been undergoing treatment there for t

she reaffirmed the eu's commitment to stabilizing the euro.he future of italy's and europe's biggest steel works remains unclear. last month, an italian court shut down the country's biggest steel mill, which is located in the south of italy, saying it has knowingly poisoned the local population with cancer-causing pollution. >> the shutdown has left the livelihood of 12,000 employees in limbo and dealt a severe blow to italy's already struggling economy. it is also a classic conflict of interest. >> the demonstrators who turned out to greet the delegation were a mix of environmental activists and steel workers who want to get back to work. the instances of cancer in the region have been high for years. a court-ordered study shows that life expectancy is lower here than anywhere else in italy. the likely cause is toxins produced by the steel works. >> it is a big dilemma between employment and help. finding a job is a problem you can solve, but dying is not a problem you can solve. >> it is unclear how the problem can be resolved. italy is in

i of the troika of the eu, the international monetary fund and european central bank are not satisfied, greece's credit fund could dry up -- i f -- if they are not satisfied. samaras says that is not enough time and that the country is only asking for breathing space to get the economy thriving. he also painted a bleak picture of what would happen if greece had to revert to its old currency. he said the consequences would be a catastrophe for greece. in the scenario, samaras predicted at least five more years of depression and the unemployment rate jumping to 40%. >> for more on the story, i spoke to our correspondent in brussels and asked if juncker would listen to the plea for more time. >> he will definitely listen to what samaras has to say. in an interview earlier, he said he cared about the greek population and wants to see what is actually going on on the ground, so he will listen to what degree premier has to say, but of course, jean-claude juncker cannot make any decision. all he can do is take the information back with him to the meeting of his eurozone colleagues, and they a

of a regular visitor to china underscores how important the country has become for germany and the eu. >> german exports helped keep this country's economic engine going, and it is no secret that german products and technology are desired all over the world. >> aside from china, germany has also set its sights on increasing exports to other emerging economies. >> german companies are increasingly looking to the so- called bric countries to sell their project -- products -- brazil, russia, india, and china have economies with large populations and high growth rates. their share of the german export market has increased sevenfold over the last 15 years. german exports to these countries jumped from 7.5 billion euros to over 1 points 22 billion euros today. -- 1.22 billion euros today. china is leading the pack of germany's new trading partners. it has become a popular destination for german industrial technology and cars. and germans have gotten a taste for chinese textiles and electronics. >> solar power is a potential source bought between germany and china. >> germany is one of the s

. >> and we've been tracking the euro this week in light of key meetings of eu leaders. where do we stand right now on the euro? >> euro of course is a big mover of the currency markets and very closely watched here in relation to the yen. let's have a look at the currency levels of course top of the screen there. dollar/yen $79.18 to 23. the dollar lost a little ground against the euro but stands relatively unchanged against the yen. currently as we can see 79.18 to 23. 20 to 24 actually. it may reveal a softer approach by fed officials when we see the fomc meetings in which case we may see a weaker dollar later on. euro/yen 98.76 to 81. the euro got a bit of a boost tuesday european trading largely on the back of hopes the european central bank as well as eu leaders agree to put in place some kind of plan to deal with the eurozone debt problems and of course the future course of the euro. so a lot of focus there. it could be a big market driving force later in the week. in light of the weak economic data or light economic data this week i should say. back to you. >> th

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frankly, both from the greek point of view and from the eu point of view.view, i think there are enough firewalls that have been built up particularly now that mario draghi is now really acting like the lender of last resort but i don't think it would be that traumatic anymore. most of the indebtedness of greece is official debt, no longer private debt so you don't have the domino problem. >> we'll come back to us because you said positive things initially about france looking backwards. looking forwards i bet you're worried with 75% of the wealth tax in hollande and the moves he's making. >> even worse with the 75% on the high bracket people he did away with one of the good reforms that sarkozy put in, namely sarkozy to encourage people to work more than 35 hours, said your overtime would be tax free. he repealed that. well that's a middle class tax increase. it's the last thing france needs. >> wilbur, we'll sneak in a quick break. coming up next the stage is set for a fight in stockton, california, accusing kalpers of getting preferential treatment. >> t

. >> i'm in favor of greece going out from the eu point of view. from the eu point of view, i think there are enough fire walls that have been built up. >> enough fire walls built up. so if greece leaves, do you feel better about the prospects for the eurozone? >> absolutely. and i've been arguing for a couple years that it's the best thing for greece and they should get out now. i've said that over and over again. and they've heard themselves by not getting out. a piece came out a couple days ago from the imf, praising iceland for the way they fought their crisis. which is exactly the opposite way the great extent have been fighting theirs. >> brian kelly, big euro watcher on the show. your thoughts on what mr. taylor is saying about the eurozone. >> yeah, i think -- the problem you have is the deeper greece goes, the worse it gets for them and for the greek people. so there's actually humanitarian side to it. my question for mr. taylor, i guess, we have to get the germans on board with printing money. it looks like draghi has put thissen conditio

only 42% of eu share that view. joining us is scott barns. thanks for joining us.s that statistic just because actually in the eu there are a lot more mature developed economies, therefore, less infrastructure investment or changing investment to be made? >> i think that that is the reason. if you look at the survey, what it says is those emerging economies, business leaders in emerging economies value -- value big sporting events more than the developed economies but developed economies back sports but less than emerging economies. >> in rio, how much are they hoping the world cup and olympics -- well, brazil and then rio, i suppose, put it like that, will lead to meaningful investment and change? >> brazilians are expecting for big value from those two events. if you break out analyses, i think bra glil yzilians expect 70%. >> are they right to think that? >> when you break out the uk piece of that, uk business leaders are saying, about 60% business leaders in uk are saying, yes, real value. how do you define what the value is? that's the big issue. >> you know w

>> cracking the eu definitely but before we question free trade within the eu we have a long way to go. that's not too much of an issue. >> with baulgd brand with quality quite consistent across the whole industry, engineering, technologies very similar around different countries what's the competitive advantage that the uk does bring to creating a brand if that's until perithe i value? >> there's winners and losers. brands people aspire to. you don't aspire to renault in a way you aspire to a mini. you don't aspire to a ford. that's very difficult because we've seen a few times to create brands and they have no -- reviving a brand succeed the rolls royce, mini, creating brand is smart. one brand hasn't caught on in germany. >> it's hard. >> exactly. >> to what extent financing is playing a role here? the availability of auto financing is one bright spot and almost globally to the point in which people are talking about subprime auto loans. what's your view of that? how much is that helping support auto sales? >> free money is a big driver. >> no kidding. >> we've had years of it. the

how is that going to make it easier for the eu to come together? >> it isn't.t's the same issue when greece, the fiscal straight jacket is required for other governments to write off debt or give hair cuts to debt repayments but doesn't help the economy. really, it's all because one is in the euro. if one wasn't in the euro one would devalue the current circumstance hit the labor market and do all these things to get the market back on track again. fiscal austerity doesn't help the economy. because i got a jam with this indebtedness i have to carry on bore roger. >> we're in a depression in spain. i see so little -- >> urgency. >> i mean if you look at those numbers they are comparable with some of the '30s depression numbers? >> the one employment statistic is all that one needs look at to see that economy is in big trouble. >> why there's no policy to address it? >> i wouldn't say there's no policy. but it's not getting the attention it should. >> same in the uk. labor market on the supply side isn't getting the attention it should. we're wrapped up in skl au

we just signed an agreement with the eu where we recognize the eu national security program. instead of the tsa going to inspect and validate the cargo program, it was a huge of the taking. the eu took on the responsibility of establishing a national program. we recognize that. that is a way we move forward in partnership to say, how can we love all our resources and not try to be the one agency or department that does all things at all places at all times with all people. >> a couple more and then we will open up the questions. the tsa is still a very young organization. it came from a career in the fbi. compare and contrast. i wonder if you have a moral problem sometimes. everytime you turn on your computer, it is a do not touch my junk stored. -- story. the poster kids for everything that everyone resents. had the force this organization going forward? >> -- how do you forge this organization going forward? >> the tsa is just 10 years. there are a lot of challenges. that is through training, for example, all officers are going through tactical communications training. they

we just signed an agreement with the eu where we recognize the eu national security program. instead of the tsa going to inspect and validate the cargo program, it was a huge of the taking. the eu took on the responsibility of establishing a national program. we recognize that. that is a way we move forward in partnership to say, how can we love all our resources and not try to be the one agency or department that does all things at all places at all times with all people. >> a couple more and then we will open up the questions. the tsa is still a very young organization. it came from a career in the fbi. compare and contrast. i wonder if you have a moral problem sometimes. everytime you turn on your computer, it is a do not touch my junk stored. -- story. the poster kids for everything that everyone resents. had the force this organization going forward? >> -- how do you forge this organization going forward? >> the tsa is just 10 years. there are a lot of challenges. that is through training, for example, all officers are going through tactical communications training. they

we have a meeting on monday with the eu. that is what the issues we will be discussing. with shoes, there is different technology. there is not technology that i am aware of that allows for the whole range of security screening other than metal objects with a walk a metal detector that would do the job. there is no good technology that allows for efficient detection. it is a policy matter. they allowed choose to stay on because they see less of a threat. they can require you to take them off. those in pre-check, you can leave your shoes on. we are working on expansion of that. it is not a process that is their universally. >> why do we have to take their shoes of domestically? what's the risk there? >> it depends on whether there is an aide -- a terrorist that wants to try something previously. shame on us if they are successful in second time. it would probably be on a regional jet. what risks are willing to take? if it is that flight that is blown up because someone with a shoe bomb, if it is something like a liquid to plot, often times, we're not looking at one flight

i mean we saw that the eu up that 126 today. cheryl: that's the thing we don't talk enough about europe i think. i think today is one of those days. let's go to the cme. we're going to have to wait a couple more weeks, we will hear from fed chairman bernanke, the fed themselves in two more weeks. at this point what do we trade on? what are you holding your hat on right now? >> what we're looking at is a lot of the news issues. we were trading crude oil off of isaac. everybody was waiting for this announcement from ben bernanke to see which way we're going to go. we saw a dramatic pulldown but the markets came right back up. next week we have the unemployment numbers and euro zone. what is the ecb going to do? everybody is trying to get a feel of what's going to happen. they are not overcommitting and again what we saw as your previous guest had mentioned, very light volume this week. so everybody is sitting on the side lines. they're waiting, now that the holiday is going to be over, everybody is coming back in, these new points

eu economic sentiment index falling to the lowest level in three years. germany's unemployment claims rose for the fifth straight month? the chief economist at mesereau in chicago has a few ideas. thanks for joining us. >> good afternoon. sandra: all this bad news coming out of the economic confidence falling. bad news. german unemployment rising for a fifth straight month. how long can this really go on like this? >> well this has been going on for quite some time. i'm afraid we will continue to see these unfolding crises until we see some true leadership coming from the european political leaders. i've been arguing thir a while. it is all about the politics. they really need to accelerate and keep in mind the goal of the effort to improve the situation should be. sandra: you mention it is leadership it will take. on one hand you have german chancellor angela merkel screaming austerity. then you've got french president francois hollande talking about spending more. where do you fall into this picture, austerity or spend our way out of this? >> well nobod

. >> not enough to keep the eu above the flat line. >> and inflation in india drops below expectations. not enough to budge the rbi from its haushish sales. >> u.s. retail sales set to ride for the first time in four months, thanks to a pickup in employment. >>> okay. so welcome to today's program. going to be a lot about growth today. >> or lack thereof. >> yes. and, you know, what is amazing, the market reaction to data not as bad as we saw. >> even when it's still bad and when we haven't seen the third-quarter data more of the pain across the eu will sink in. nevertheless, we'll see if that's already been priced in based on market reaction today. >> that will be part of, of course, our coverage and a disappointing set of third-quarter figures. why uk operations are hurting the bank. >> india's inflation drops unexpectedly in july. will it be enough to prompt a rate cut. head of the indian central bank in 30 minutes' time. >> and german and french gdp figures, how much will they boost the overall numbers? that will be breaking in an hours' time. >>> retail sales figures for the month