when croatia joins the eu, such traditional working methods are likely to be phased out. in the historic center, investors are pouring money into tourism infrastructure, but even though the easter holiday has begun, only a few visitors are here right now, and they are far outnumbered by the locals. the tables at many of the restaurants are empty. this owner says croatia with its potential for tourism at off- peak times, even though it has had eight years to get in shape for the eu market. >> dubrovnik needs better management. we need experts in tourism. we need better people who work professionally and can help find ways to solve this problem professionally. >> some locals say croatia's politicians have no idea about boosting tourism. shortly before easter, this is what the country's most popular tourist destination looks like -- roadworks. in the capital, zagreb, support for croatia's eu membership was strong in a referendum held last year, but now many people are having second thoughts. >> i think most people are happy about the eu, but if the croatian needs another yea

the troika of the eu, -- the truck are the eu, the imf, and the european central bank -- the troika are the eu, the imf, and the european central bank. the german government is getting impatient. >> there are two elements, which we consider essential. first, we are certain that debt of around 6 billion euros is sustainable. second, we want the banks to be restructured. >> the third condition laid down by the german chancellor and her coalition is that a rescue fund has to spare the socially week. angela merkel says nationalizing pension funds in cyprus is not an acceptable way of plugging the holes in the country's finances. >> checking in on the markets, european shares traded flat or slightly to the downside friday as investors waited for clarity on cyprus, and germany's business confidence suffered an unexpected drop. our correspondent sent us this summary from frankfurt. >> still no solution in cyprus. traders had to finish this trading week and this uncertainty leading almost to a standstill at the stock market. traders did not know leader to bet on a happy ending or bankruptcy in

when croatia joins the eu, such traditional working methods are likely to be phased out. in the historic center, investors are pouring money into tourism infrastructure, but even though the easter holiday has begun, only a few visitors are here right now, and they are far outnumbered by the locals. the tables at many of the restaurants are empty. this owner says croatia with its potential for tourism at off- peak times, even though it has had eight years to get in shape for the eu market. >> dubrovnik needs better management. we need experts in tourism. we need better people who work professionally and can help find ways to solve this problem professionally. >> some locals say croatia's politicians have no idea about boosting tourism. shortly before easter, this is what the country's most popular tourist destination looks like -- roadworks. in the capital, zagreb, support for croatia's eu membership was strong in a referendum held last year, but now many people are having second thoughts. >> i think most people are happy about the eu, but if the croatian needs another yea

the eu is divided over the issue, so they pass the buck to the foreign ministers? >> well, yes and no. it think about it, the normal procedure is that the foreign ministers discuss these topics, so a vast majority of countries in brussels were surprised when they heard britain's cozy and france's push because it was not on the agenda. it was also something that you need more time to discuss, and that is why it has now been made a very vital topic on the agenda of the foreign ministers meeting next week. but there is very strong opposition still. people are reluctant to go through with france and britain 's push. the question was why they even put it on the agenda. is that not also some kind of sign that national policies are becoming more important again in his current state of crisis that the european union itself is in. >> thanks very much for that first update. we will be coming back shortly to talk about another explosive issue. >> we will be going back to our correspondent shortly. the issue i'm talking about is cyprus, but as we have seen already today, peopl

russia condemn tess eu's plan.epletory medvedev says they're behaving a like a bull in a china shop. economists say there's little home for a turn around in the second quarter and that would be the seventh straight quarter of recession for europe. >>> and in britain, george osborne is this morning under fire for producing an overtly political budget rather than a budget for growth. the chancellor's cabinet says he has sucked the confidence out of the uk economy. ross westgate joins us now from westminster with more from ed balls. >> yes, ed balls is standing right next to me. let's get to him. he said the chancellor is sucking the confidence out of the economy. the financial markets seemed e prerelaxed with what we heard yesterday. >> i think the potential markets have factored in now for very many months. the economy here in the uk is flat. it's flat lined. there's no growth. our deficit has been expected to stay high now for many months. the chancellor confirmed yesterday what we've all known for a long time. the

they receive a lot of development funds from the eu. last but not least, as a last resort, they could strip hungary of the right to vote in the european council. all that takes a long time. possibly, the eu could be working on a way to reform itself so they could interfere before something actually happens. at the moment, they can only interfere not when a member state is in the process of threatening a fundamental doubt you violations. >> hundred is facing their fair share values on the economic front. there currency had already been struggling and it now has plunged to a nine-month low in response to the vote. >> they're worried about control over the central bank and is growing anti business rhetoric. it fell by 1 percent against the euro and on friday, two members of the central bank were fired under pressure of the government. the armistice guaranteeing peace between north and south korea for nearly 60 years is now history. south koreans have been reacting to threats of nuclear war from the north. >> anti-north korean sentiment has

a rift has opened up over the issue in the eu. with britain and france pushing for dropping in eu weapons embargo, there is little indication that the german government will budge. >> even if there were no eu sanctions, this is a conflict zone. it is an ongoing conflict. we cannot supply weapons to a conflict his own. >> while germany is staying for money arms embargo, it is pumping money into refugee camps. >> i think the solution is for the german government to put an end to the arms embargo. the government need not send arms directly, but it could facilitate others doing so. opposition activists say the syrians have endured too much hardship in recent years. now they are saying that berlin needs to change its tactics. >> our message to the german government is that the international community must adopt a clear position on syria. >> he also wants a germans to take a closer look at what is happening in his country and he hopes that the eu will then act. >> what exactly is behind germany's position on syria? earlier we put that q

a rift has opened up over the issue in the eu. with britain and france pushing for dropping in eu weapons embargo, there is little indication that the german government will budge. >> even if there were no eu sanctions, this is a conflict zone. it is an ongoing conflict. we cannot supply weapons to a conflict his own. >> while germany is staying for money arms embargo, it is pumping money into refugee camps. >> i think the solution is for the german government to put an end to the arms embargo. the government need not send arms directly, but it could facilitate others doing so. opposition activists say the syrians have endured too much hardship in recent years. now they are saying that berlin needs to change its tactics. >> our message to the german government is that the international community must adopt a clear position on syria. >> he also wants a germans to take a closer look at what is happening in his country and he hopes that the eu will then act. >> what exactly is behind germany's position on syria? earlier we put that q

. >> representatives of the troika of -- the eu, imf, and ecb -- were in cyprus for emergency talks, but they failed to find a solution to the island nation's problems. the cypriot finance minister was in moscow asking for help from his russian counterpart. that was not forthcoming. for the time being at least. >> there were no offers. nothing concrete. we are continuing discussions. we are happy with the beginning, and we look for to continuing the discussions. >> cypress has long been a tax haven for russian companies who have billions of euros in separate banks, but many russians who live on the island are outraged at the proposed levy on their savings. >> this country has cheated us and stolen our money. yes, stolen. it was not their money. we brought it here. we did not earn it here. >> for now, a separate account holders are relieved that parliament shot down the proposal. >> it was time to take a stand. they are sure to find a solution. the separate people are strong. we can take a lot. we have proven that before through many tough times. >> the cypriot government is still sea

the eu has demanded that they stop abusing the asylum system. so the government has made asylum of use a punishable crime -- asylum abuse. 80% of those affected are roma. these drastic measures are to ensure other citizens can travel freely. the eu has threatened to suspend the said-free travel. these are hard times for the roma. elvira is 34 and has three children. she married her husband when she was 14. she lived in germany before as a child until she was 7. now the family of five lives in two rooms with her in-laws -- 12 square meters to eat, sleep, and do homework. the entryway serves as a kitchen. >> they would love to have another room so each would have their own bed, but that is impossible. >> they could use the suspended 50 euros a month welfare benefit. neither elvira nor her husband has worked. occasional day jobs earn them up 15 euros. fights are common at school. >> two or three times a week, not just fistfights, but with knives, brass knuckles, even guns. >> they venture out, but they are cautious. with more than 20,000 roma, it i

that is when the eu winds down its last subsidies. now, facing trial on charges of theft for stealing coal. >> does not matter what they do to me. i will have to keep stealing. >> discontent is growing in the valley of tears, but in romania's capital, bucharest, no one hears the calls for help from romania's most troubled region. >> i wish i were a chicken -- it may be hard to believe, but a song by that name really did make it to the top of the german charts. the lyrics are all about how much fun the chicken's light must be. -- a chicken's life must be. you can spend all day lazing in the grass. reality paints a different picture. laying hens are usually cramped in different cages. one british woman wants conditions to change. she has founded the british and welfare trust -- british hen welfare trust. >> this is how it heidi -- this is heidi. the family has 20 hens and three roosters. other 14-year-old girls wish for a dog or a hamster, but just wanted chickens. >> they are completely different. they are really sweet. >> heard chicke

and will it stay in the eu?eports from moscow and cyprus, coming up next, please stay with us. >> situation in cyprus getting worse today, banks will not open until next week at the he earliest. good evening michelle. >> larry, another day, another attempt to try to come up with a rescue plan for cyprus, today cyprus suggested that they would try to raid a pension fund, and promise to pay the workers down the road. but that idea was not liked. additionally they are trying get money from trussia. there's a deep and close relationship with russia, they are trying to come up with a deal or a bailout. so far they are empty handed. in the meantime the banks are closed. the european central bank is flying in cash so the ats have money, they can only do it for so long. they can not under insolvent banks. and two of the banks are clearly insolvent. so they have a choice of shutting down a couple of banks or leaving the euro. >> as michelle said, the big part of the story is russia. will russia rescue cyrus and their own

eu and good deal for the cyprus?s the best deal for the eurozone is they get the structural position of the various economies and institutional framework on the right track. yes, this is a good deal from that perspective. for cyprus and for the eurozone more broadly, it is the beginning of a very long road. we have seen these eight packages in other countries. agreeing to a deal, while it does not seem easy, actually is the easy part. it is the delivering on that over the months and years ahead which will be testing people's patience and fortitude. >> how is this going to cost, how was it went to hurt the cypriot people? >> look, the cyprus economy is effectively in the middle of an extremely bad recession, potentially depression. that will be exacerbated by the fact that as a share of the economy, the banking sector -- sector has to roughly half over the next five years. that will be extremely painful. the economy will be less dynamic. it will be very difficult. >> how the market's been reacting on your side of the

how do they get into the eu? they got into the eu in the first place was politics. it wasn't economics. it wasn't about the financial system. pit was politics. the statement reason greece got in. at the time there was a political will to have these countries in the euro area. and therefore in some way or another you decided to overlook some details. >> you said to some extent this is delaware and a bit of miami. what do you mean? >> what i mean by that is we have to remember cyprus is not just a sort of money laundering destination. it relies overwhelmingly on its very low tax rate. cyprus has a tax rate of 10%. it means it is tax optimization structures from russian businesses. they may or may not be money laundering but there is certainly tax opt mization. if you look at how delaware and parts of miami operate, kind of the same thing. >> there were fears we would see bank runs in italy and spain because people would wake up there and say, wow, if i'm in a weak bank and below the insurance threshold it is meanin

the long-term that's what the eu really would like.ot to tell you, it's an amazing story and thanks for taking time out, a pleasure. >> thank you. charles: we'll go back to nicole because blackberry continues to rock and shares are up 6%, now what's going on. >>. nicole: a great move, right? it's at 15.88 and today, a positive comment one of the analyst today comes from morgan stanley, upgrading it to an overweight from an underweight, from an underweight. that's a good jump to $22, a new price target up from 10 and surpassed 10. maybe they're late to the game with a call, but think there's upside potential and we talked about the big million dollar-- million units order that we talked about last we are. so far so good. year to date up. charles: and they've been fighting to claw themselves back into prominence and the stock has been on fire. thanks a lot, nicole. speaking of someone on fire, or something on fire, dr. ben carson, president obama's new outspoken critic. he's going to join us in the next hour to talk about this. >> it's a

we are returning to our top story in cyprus, the eu bailout. the president addressed the nation a short while ago, a stark message, saying he had a choice between bankruptcy and a potential exit from the euro. >> that's right. the president put all his cards on the table. to mp's otheral parties to make the right decision. when the party meets, when the parliament meets tomorrow afternoon, he appealed to the members of parliament -- he only has 20 of the 56 seats in parliament. he needs to do a bit of orchestrating. this was an appeal, pointing out what the future of cyprus would look like if this bailout deal was rejected. on monday, he said, we've got to decide what causes less pain. we talked about pain. he talked about bankruptcy, the destruction of the whole banking industry, huge loss of jobs, and a devaluation of both the currency and the wealth of the nation. this is pretty stark stuff. cyprus is at a moment or could go really either way. talk to people in the streets. -- where it could go really either way. talked to people in the stre

france, right all eu countries, is in a crisis and needs new markets. >> is another of hollande -- thats another of hollande's priorities on this visit. >> in germany, the man who wants to replace angela merkel as chancellor in september is in hot water over italy's e -- election. >> he spoke of the near winners as clowns. one of them, beppe grillo, is a comedian, so he might not be that defended -- offended. >> the other is silvio berlusconi. he is a two-time former prime minister. >> the italian president's state visit to germany has been overshadowed by the diplomatic incident created by peer steinbrueck. italy and germany would continue to work together, despite occasional irritations. >tuesday, peer steinbrueck referred to a delete's former prime minister -- to italy's former prime minister as a clown. >> when one talks about things concerning another friendly, allied country, and about the result of a free election, one must be well balanced in his choice of words. >> he would not be drawn into the matter. >> i do not wish to comment. some statements are sufficient in themselves.

the eu correspondent is not surprised. >> pensioners and public servants are having their incomes cut. it is clear that the economic reforms which were pushed by germany are not doing much. >> when eu officials meet in brussels, germany say it is decisive. berlin sets the course to follow to bail out the eurozone's beleaguered economies, but this austrian journalist says the problem is not as much the policies as the attitude. >> germany is exemplary in economic terms. i would say there is a lack of feeling towards partners. not enough solidarity being shown. germany is coming across as a little bit too cool. >> at the same time, germany is also a magnet for young spaniards and greeks who cannot find a job because of austerity measures. >> obviously, things are going to turn out badly if we do not make some changes, but one day, someone in berlin and brussels will realize we are on the wrong path. >> at least that is what million said he use citizens are hoping. until then, protests against the eu and germany are likely to continue. >> with a wave of anti-german sentiments stinging po

the eu correspondent is not surprised. >> pensioners and public servants are having their incomes cut. it is clear that the economic reforms which were pushed by germany are not doing much. >> when eu officials meet in brussels, germany say it is decisive. berlin sets the course to follow to bail out the eurozone's beleaguered economies, but this austrian journalist says the problem is not as much the policies as the attitude. >> germany is exemplary in economic terms. i would say there is a lack of feeling towards partners. not enough solidarity being shown. germany is coming across as a little bit too cool. >> at the same time, germany is also a magnet for young spaniards and greeks who cannot find a job because of austerity measures. >> obviously, things are going to turn out badly if we do not make some changes, but one day, someone in berlin and brussels will realize we are on the wrong path. >> at least that is what million said he use citizens are hoping. until then, protests against the eu and germany are likely to continue. >> with a wave of anti-german sentiments stinging po

it's an issue for cypress and the eu.ary given the stance they made earlier in the week about wanting to be involved. i think their bluff has been called certainly. and what i think was really the key, it was not that the russians had anything to help in a meaningful way but i wanted to be included in debates. as we all know the russian interests in cyprus are absolutely enormous. >> steve, thank you. sounds like a big game of chicken. we'll watch how things play out into monday. by the way, it is friday. it's time to talk the friday trade. oil and currencies. kevin kerr is president of kerr trading financial. and brown brothers hair man. mark, have you been surprised? >> i'm surprised just by the euro's resilience. people were thinking there could be a run on european banks which hasn't taken place. a loss of confidence. but it has been trading in fairly tight trading ranges. it has been resilient this week. italy still without a tpo government. >> how do you position yourself? >> monday is when the ecb said it will cut

investment in the eu is two times higher than in asia. it speaks for itself. that relationship defines the shape of the global economy. is the largest trade investment partner for almost all other countries in the global economy, that speaks of the power and potential. anhave been very happy from irish perspective to see the high level report produced between the eu and the u.s. in terms of potential. i spoke to the president after his reelection. he addressed the matter in his state of the union address and last week, the european council gave a very positive endorsement to giving this presidency to thesure -- trigger negotiations, which can hopefully take place. there is a 90-day process to go through from the u.s. administration point of view. the relationship has enormous potential. currently, 15 million jobs depend on the the trade. think of the potential for all the millions of people on either side of the atlantic in terms of the potential for job creation if this were to become a reality, which i expect it will. long-term evidence would show the flow o

>> if the eu allows cyprus to go bankrupt. remember, there are some major oil finds in the area there. nobel energy is currently and has developed drilling wells there as well as a second tranche. the you start to defy the underlying credibility of the country and allow it to go bankrupt, who knows what aspect this will have on the american economy. if you look at it, europe has been lagging behind the u.s. and we've been very very proactive as a government in our money sectors, europe has not. doing what they're doing now, unprecedented, contrary to all aspects of the law, is going to create, i think, a dislocation that no one can predict. >> well, we're all connected. that's the bottom line. peter, good to have you on the program. >> thanks very much for your time. >> thanks very much for joining us. >>> it is about time. samsung tossing its hat into the smart watch ring, to keep up with rival apple. regardless of who gets to the market first, will consumers latch on to a smartphone watch? and later, what do professional foo

japanese companies are hoping to increase trade and investment with the eu, and help create jobs if the epa is concluded, but the eu says that it is restricting and that makes it difficult to enter the market. >> i will take stock on the progress made by japan. in implementing the road maps and railway procurements and the conclusion will be that the progress has not been satisfactory, the negotiations will be suspended. >> eurozone finance ministers, and government leaders have reached an agreement to bail out cyprus. they held an emergency meeting in brussels facing an end of day deadline. they agreed to a bailout worth 10 billion euros or $13 billion. >> we've put an end to the uncertainty has that affected cyprus and the euro area over the last few days. >> the ministers agreed to shut down cyprus' second largest bank laiki. holders of deposits of more than 100,000 euros or $130,000 will have to take losses. it's not yet clear how severe those losses will be. so-called good assets will be folded into the country's largest bank, the bank of cyprus. deposits of more than 100,000 euros

financial markets fell after the terms of an eu bailout for cyprus caused widespread anger. the deal includes a heavy tax on bank deposits. savers queued for hours to try to get their money out. now the government says all banks will be closed till thursday as it negotiates the terms of this deal. gavin hewitt starts our coverage. >> hurt, anger, outrage -- that was the mood on the streets of the cypriot capital. in exchange for european bailout, small and large savers will have to pay a one-off tax. >> we are sleeping. we all come in the morning, knowing that we were significant -- >> as a nation, it has taken us 40 years to build our economy to the level it is. with done one day -- within one day, we have shot it down. we are very betrayed. >> they can do it anywhere. live in europe, europe has betrayed us. >> at one stage, the crowd was urged to march towards the presidential palace. many people believed their savings had been guaranteed. what is clear is that the bailout deal negotiated in brussels cannot be implemented here except in the face of furious opposition. will

the move was necessary to keep cyprus from sharing in the burden of a eu bailout. and uncertainty over the outcome of the vote in nicosia continues to weigh on markets. cyprus said its stock exchange will trading until thursday. cypriot banks have been placed on negative watch. carolin roth is reporting now for us. the latest we're hearing is that the vote may not happen today. what can you tell us? >> absolutely. there are a lot of moving parts still, kelly. this is a very fluid situation. the vote is scheduled to happen at 6:00 p.m. local time. there has been no official cancellation on part of the government. but, again, a government spokesperson at the same time also saying that it's very unlikely at this point that the vote will actually go through. that is, of course, because no single party has a clear majority in parliament, not even the ruling party under president anasatias. the ruling party says it may not want to vote with the proposal and it's coming out with an alternative proposal. we spoke to one of the members on "squawk box" just half an hour ago.

members or less eu members? car or still keen to get into some club. but without any huge confidence i would harbor guess a couple of these guys might. if not they will be very close. >> so no one is going to leave. >> i want to go back to all the money that should be rushing out of the banks. >> you mean in cyprus? >> no. if you're corporate, money in french bank, italian bank, a bank in portugal. do you say, okay, let's rethink what we're doing here? >> you're going to have to. as it happens i personally have a small investment just a year ago in a greek-based online insurance company business. and they have luckily only a sphal part of cash. so they're getting whacked on it. having listened to these guys when i saw them last week they're certainly going to be thinking about these kind of issues. and any corporate with business exposure all around europe is going to be having -- your audit committee would have to be presiding over such discussions. if not it would be -- >> what do you think the next chapter in

. >>> russia's leaders are backing the eu bail out for cyprus. they say they're ready to renegotiate terms. russia has lent cyprus 2.5 billion euros or $3.2 billion. officials will discuss easing the terms. the eu bail out includes a condition to shut down cypruss second largest bank and it inflicts heavy losses that will affect many russian depositors. prime minister has criticized the plan saying it's tantamount to theft. at the same time russian leaders are keen to avoid further turmoil in the euro zone. worries are still hurting business sentiment despite a cyprus accord. stocks in new york ended lower on monday. the dow jones fell more than .4 of a percent to finish the day at 14,447 and the euro is trading lower against major currencies. to see how this is affecting markets here in japan let's go to ramin who is at the tokyo stock exchange. concerns still seem to be far from over. >> exactly. it does seem to be rearing its head again. that's as the u.s. economy shows signs of vitality. here in japan the japanese government beginning steps t

even if lawmakers approve the new plan, eu officials may reject it. leaders in germany had doubts about the way leaders intend to raise the money. analysts say the negotiations will be tough. cyprus' finance minister tried to get help from russia but he's on his way home empty handed. he spent two days talking with his russian counterpart bloomberg quotes him as saying he hadn't been able to get the support he wanted and he said he still has a chance to get the russians to ease the conditions on existing >>> chinese president xi jinping is building friendships abroad. he's begun his first diplomatic tour with a visit to moscow. he'll then head to africa, where chinese leaders want to boost their influence. nhk world's takafumi terui has the details. >> reporter: this is the first of what will be many trips abroad for china's new president. xi jinping arrived in moscow to an official welcoming. he said before leaving beijing he wants to coordinate policy with russian leaders on global and regional issues. the chinese president met with his counterpart,

in the e you lose more than 100 billion euros every year because of corruption -- countries in the euthe eu has intensified the fight for economic power, but it is not easy, especially not when the country's elite is involved. in times of economic crisis, the overall pie is becoming smaller, and those who earn ordinary wages get smaller pieces, but those who continue grabbing pieces for themselves are more likely to be caught up by their neighbors at table. the crisis is shedding light on the growing divide between the rich and poor. in slovenia, people have been taking to the streets regularly in protest. they are angry because the country's top politicians have been stuffing their pockets. then he curses the day he agreed to work on this bridge -- >> he curses the day he agreed to work on this bridge. as a contractor, he was well known and worked for his company on a 20-year contract. to look like a sure-fire thing, and small firms like his cannot afford to be picky -- it looked like a sure-fire thing. >> my people worked on this bridge for three and a half months. i invoiced cpl fo

on wednesday, parliament rejected an eu proposal to tax people. remain closed until next week. now we can join peter sharp. hopefully you can hear me can what seems to be on the table for parliament? to sit in at is due few hours time. if all goes well, they will have in front of them plan b, which fiveway of finding the they 5.8on euros -- billion euros needed. we think inb may include something like this, but basically cyprus will be nationalizing its banks, it's pensions and taking the church property that has been offered to them and putting that in a pile and issuing bonds out of that. they hope that will come up with the necessary 5.8 billion. properties include 2 billion. the talks have been going on all day. russia hasn't come up all day. the talking will continue. when the members of parliament meets here in a few hours time, hopefully they'll be something on the table that they will be able to vote on. >> define a balancing act for tryingrus government and to keeping you the eu happy and the people on the ground. what is happening on the streets? >> i think the financ

in the e you lose more than 100 billion euros every year because of corruption -- countries in the euthe eu has intensified the fight for economic power, but it is not easy, especially not when the country's elite is involved. in times of economic crisis, the overall pie is becoming smaller, and those who earn ordinary wages get smaller pieces, but those who continue grabbing pieces for themselves are more likely to be caught up by their neighbors at table. the crisis is shedding light on the growing divide between the rich and poor. in slovenia, people have been taking to the streets regularly in protest. they are angry because the country's top politicians have been stuffing their pockets. then he curses the day he agreed to work on this bridge -- >> he curses the day he agreed to work on this bridge. as a contractor, he was well known and worked for his company on a 20-year contract. to look like a sure-fire thing, and small firms like his cannot afford to be picky -- it looked like a sure-fire thing. >> my people worked on this bridge for three and a half months. i invoiced cpl fo

as an eu member, croatia is obligated to aid in the prosecution of war criminals. >> my hope is that the german justice system will make it possible to hold him accountable for what we all believe he initiated and for which he bears the primary responsibility. >> croatia has a long road ahead before the crimes of its secret service can be laid to rest. >> it is a big day for car lovers when they spot a development mule on the road. sightings of those vehicles used to test new cars are rare. designers -- car makers do not want to reveal their latest designs, but in sweden, new cars are a common sight in winter. technicians from all over the world come to test them in the icy weather. for some, it is also a time to test their nerves. >> it is a chill wind of -15 degrees celsius in northern sweden near the arctic circle. this engineer raises the south korean flag. this town of 3000 straddles placer lakes -- glacial lakes. for several weeks every winter, the silence of the tundra is broken by the wine of engines. carmakers come from all over the world to see how their newest designs stan

headquarters affecting eu operations. high speed rail service between paris and london have been suspended and flights delayed outside the airport. alerts have been made fore area. our meteorologist joins us now with more in weather conditions in europe and elsewhere. >> i'm afraid the extreme cold is not going anywhere. and in western europe starting friday and areas like the northern part of portugal could see some rain changing over to snow today. heavy snow could linger for central and western europe into wednesday afternoon. temperatures are not too bad across the eastern half of the mediterranean but thunderstorms and hail and damaging wind, all the threats will likely linger the next few days here. here's your highs still very chilly toward the north, minus 2 degrees in berlin and madrid 8 degrees, 8 degrees colder than seasonal and the extreme cold will likely linger to friday here. now at asia, we can see a long cloud mass from china to northern japan. underneath rain showers to the north and thunder showers to t

as an eu member, croatia is obligated to aid in the prosecution of war criminals. >> my hope is that the german justice system will make it possible to hold him accountable for what we all believe he initiated and for which he bears the primary responsibility. >> croatia has a long road ahead before the crimes of its secret service can be laid to rest. >> it is a big day for car lovers when they spot a development mule on the road. sightings of those vehicles used to test new cars are rare. designers -- car makers do not want to reveal their latest designs, but in sweden, new cars are a common sight in winter. technicians from all over the world come to test them in the icy weather. for some, it is also a time to test their nerves. >> it is a chill wind of -15 degrees celsius in northern sweden near the arctic circle. this engineer raises the south korean flag. this town of 3000 straddles placer lakes -- glacial lakes. for several weeks every winter, the silence of the tundra is broken by the wine of engines. carmakers come from all over the world to see how their newest designs stan

his eu colleagues are demanding the cyprus raise the sum of 5.8 billion euros itself in order to release a rescue loan package. a compulsory levy on savings may be the only answer. but major investors in cyprus's biggest bank, the bank of cyprus, could lose up to 20% of their deposits. not surprisingly, it's an unpopular measure. >> nearly everyone's going to lose some money. of course, the amount will be greater for some than for others. and that's that. >> there is anger at the nation's creditors. >> the germans are only interested in themselves. they don't care about anyone else. >> cyprus's banks have been closed for a week. the european central bank has threatened to cut off the island's emergency funding should no deal be reached by monday. if that happens, cyprus's economy faces immediate collapse. in that cypriot's words, the negotiations are in a very delicate phase. the monday deadline is looming. whatever is agreed in brussels still needs to be adopted by the cypriot parliament. that is by no means certain. >> i'm following the story for us with our correspondent. bring us up-

both countries are said to of met most technical requirements required by the eu. >> but some members including germany strongly oppose the accession just yet. >> they fled poverty in the hope of a better life, but germany's interior minister fears too many would follow if rumanians and bulgarians were granted passport free travel in europe. it is those doubts from berlin that led to the postponement of a vote on admitting the two countries. >> there are still shortcomings in some areas. especially in the way the judiciary works. that means we are unable to say, "remove the border checks." let me be quite clear -- the time has not yet come. >> romania and bulgaria have been eu member since 2007, but because of opposition from germany and others, the issue of membership is off the agenda until the end of the year. the countries reject the criticism and say they have made progress in the fight against corruption and organized crime. >> we want an agreement in the future that allows bulgaria and romania to join the shannon's own. we have fulfilled all the criteria for membership two year