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

i think that there's many europeans who like the european example the germans like to be more to be european than to be german you know history and i think very committed to keep the fiscal union and i think it's so humid you willing to pay for it absolutely i think so. really i would think the germans are having to pay for it i think the you know we officially complain about the greeks the spanish the italians having a big party but actually you have to admit the germans like to work hard you know the german you know we germans like having their products spotfire you say well exactly we can only be working with the exports half if the greeks and spanish and italians buy our products and the euro is a big program to help us export so it's not the case that the greeks have a party and we work is that we sell go a lot of people say the germans go to greece to have a party a family you know but i think the way i see the crisis is that it will be the european union is never move forward without crisis well and they will usually have to me this is one of the interesting fill in one of the interes

european growth has declined.the share of europe in global gdp has fallen since 1980 from 31% to just 19%. since 1980, the e.u. had only grown faster than the united states in nine out of two years. never has the unemployment rate in more than the u.s. unemployment rate. are any of you investors? the left worst markets of the last 10 years, greece, italy, finland and portugal were the worst in the world. and on top of all this, monetary union, the ultimate experiment gone wrong. we said if you have a monetary union without labor market integration and without any fiscal federalism it will blow up. i predicted that in an article in 2000. it is happening in real time in a chemistry lab on the other side of the atlantic. but this was also a political experiment gone wrong. do you know what that experiment was? the experiment was to see if european peoples could be forced into ever closer unions, despite their wishes. by economic means because the political means would not have been acceptable and their results are th

the european union. that was sort of to the west that we did something similar like that to the east where the moment really pulled is the way quite nervous about germany and russia for example one project in the east would be to have hypo high power voltage lines connecting russia to western europe and have common institutions of poland then you have a big growth area and if you have a new approach to the economy then you have a growth it was germans are concerned how far they're willing to go i believe germans very much want to see. the benefit they have to be we need we benefit for free trade we benefit from human rights we do benefit from the american democracy was all imposed on us we didn't become democracies we were made democrats you know we only example in history maybe japan i can think of where it actually works. that's a different program but this is so so we're very happy to have it i think we'll pay for it that's fine. but i'm a nobody really doubts about the levy role that germany is a sup

to resolve all this question and we have a system of european stability billet if we have a european central bank so. we are ready to say to substitute market force by official force and my feeling is that it will be a political agreement between country it will be north structural problem for this. government body to substitute market forces we are talking about our market for spain. italy ok. this is a euro you want it. is a little one of these days because he's safer. i'm not an economist saw banker but i can tell you based on polish experience how i think the european problems should be solved if you wish go ahead. fall in the snow perceived as a success story and one of the key drivers of growth in europe if you only if you remember. if it were a member of the europe european currency would it be a driver. i don't think so ok so on if you remember these days the rocky road to the place poland is today and just after the. economy collapsed in fourteen nine hundred eighty nine the inflation amounted to six hundred forty percent annually today's four percent. accounted for sixty fi

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 europe failed? i would say it is just too soon to know. could europe fail? of course it could. but must europe fail? absolutely not. thank you very much. >> well done, gentlemen. a very strong opening to the debate. and i think you've flushed something out which is important which is how this audience chooses to define the european experiment. is it the euro? is it a larger civilizational project? that's going to be up to you to decide when you pick up your second ballot at the end of tonight and for those of you voting online right now. our next phase of this debate is to have these debaters engage each other directl

authorities that would be the european central bank the european commission and the i.m.f. if they actually tighten their budgets further cut spending further they're going to go deeper into recession and then we don't know what happens that's what christine lagarde is worried about in spain which is the big trouble spot right now because investors are selling their bonds and driving up the interest rate on the ten year bonds to dangerous levels that's the real fear right now i mean that's what happened in portugal and ireland and greece right the interest rates get to a certain level they can't borrow sustainably on private markets anymore then they have to go to the european authorities for money and then then there's maybe debt restructuring bank losses all the things that happen with greece but on a much bigger scale that's what they're really worried about i don't think that's necessarily going to happen but the problem is that the authorities the european authorities are pushing in that and direction spain is supposed to cut make spending cuts of this year of about. b

you know the european commission is the president do commission is elected you know how the european parliament functions and so on there are a lot of things that need to happen for this to be you know a true democratically accountable. because if it is a political crisis i think it sells itself i think actually we are at the darkest hour i don't foresee there's going to be only moments no doubt but i think we're on a slope to slow but steady recovery and we've seen it in greece i mean you said you know you have a referendum oh vote if it's not the right answer you try again until you get the right answer that's one way to look at it another way to look at it is the greek people is that an opportunity to truly contemplate what happens if they get out of the euro and the electorates of italy or spain of portugal in other countries also have an opportunity to say well you know if the greeks get out why don't we get out so we don't have to swallow that bitter medicine that bitter pill is competitive that's why they want then they are used to seeing his grease in itself doesn't really ma

in the european union it's the european council, the foreign minister that can decide on this question of sanctions. maybe there should be some discussion of first of july the european sanctions will be fully picked. and in moscow they should be a discussion of this deadline. the third point on the uranium enrichment is the npt context. i think what the iranian case shows is that it's very difficult to define the limits of the peaceful uses as opposed to the military uses. we have actually a treaty where there is no clear divide on these two aspects. and i think this is very detrimental for the negotiations there are interpretations one way or another. iran feels they have the right. on the other hand, the p 5 plus 1 feel that iran has not respected its obligations. and the question is maybe what comes first, obligations or rights. i think they should be in balance, of course. but the iranian argument is of course that there are double standards in the npt and nuclear powers have not respected their obligations to disarm, that there are double standards in terms of other countries whic

and his guests that discuss a whether a single european currency is going to become a thing of the past coming up next. well . science technology innovation all the least of melanin still around russia we've got the huge earth covered. and if you. still. want to keep. the low well human cost i'm here with the euro crisis the never ending agony of the european union where to the problems come from and just anyone have any solutions. and you can. start. to discuss this i'm joined by a gusto carlos lopez he is director for the global indicators and analysis department of the world bank also we have just dipped i chalk he is an economist and we have tom conway he's a principal at strategic reinsurance consultants international ok jeff if i could go to you first. when you when we look at the the euro crisis today isn't much far put into what could go wrong because it seems to me that we have nineteen emergency meetings nineteen. and everybody keeps looking over the cliff and we keep hearing a solution is in sight and then we have another emergency meeting when told it went so wrong. i think

julian assigned to appeals against his extradition to sweden at the european court of human rights while waiting for ecuador to decide on his request for political asylum something that could now take weeks. tens of thousands rally on egypt's tahrir square against the military with the muslim brotherhood calling for the announcement of a presidential election results while ruling generals blame the movement for stoking tension. cross-talk next stay with us. well. science technology innovation all the least of melanin still around russia we've got the huge earth covered. and. stood. alone and well human cost i'm about the euro crisis the never ending agony of the european union where to the problems come from and just anyone have any solutions. and you can. start. to discuss this i'm joined by a gusto carlos lopez he is director for the global indicators and analysis department of the world bank also we have jeff depth chart he is an economist and we have tom conway he's a principal at to teach reinsurance consultants international ok jeff if i could go to you first. when you when we look

is the european economy?> let me start by quoting president obama in talking about this and the your area if you get the diagnosis of the crisis right is doing just fine. what i mean by that is that there is no doubt the euro area faces a host of crisis. a banking crisis and we have a competitiveness crisis across the southern periphery and a fiscal crisis. the overall diagnosis of what the euro area is suffering from is an institutional crisis. it is a crisis of the design of the euro area itself which as it was created in the late 1990's is a flawed design. basically does not work when you have a major financial and economic crisis as we have right now. what that means is it is a political crisis that europe is facing. it is about the process in which national sovereignty and deep national sovereignty of the kind of national sovereignty over banking regulation and fiscal policy that governments were not willing to hand over to european institutions in the 1990's are now in the process of being transferred t

are they more pro european than greeks. i doubt i'm not sure but i doubt it's i wouldn't even i mean if it's different based on current specific bases again that's a problem i mean the nature of the problem doesn't go away. that feeling of emotional attachment to the union as a european i don't see it that i've never seen it that actually but as i said during good times you don't feel that too much but do it in best times it just plays out as a cd is political so that's the stability of the union and that's exactly what's happening at this moment so i think that i think that having a bit of a historical perspective on this is quite useful you know if you think about the twentieth century we have to all the wars that involve you know huge complete collapse economic collapse and destruction from you know between european powers right we have more from the air to a point where basically the way that europeans resolve their issues are to a committee meeting and working groups and essentially you know peaceful coexistence right

flow well coming up i hear about the euro crisis the never ending agony of the european union where do the problems come from and just anyone have any solution the first step to take to steer the slow lead. to discuss this i'm joined by a gusto carlos lopez he is director for the global indicators and analysis department of the world bank also we have jeff there he is an economist and we have tom conway he's a principal at reinsurance consultants international ok jeff if i could go to you first. when you when we look at the euro crisis today doesn't watch fox put into what could go wrong because it seems to me that we have nineteen emergency meetings nineteen. and everybody keeps looking over the cliff and we keep hearing a solution is in sight and then we have another emergency meeting when told it went so wrong. i think there are. two factors that have to play that one is political and the other one is economic the political one is that i think we have to keep in mind that democracy is a very slow process definition and european union is is maybe too democratic for song good which pl

but here's a new one the european redemption pact a golden idea to save or do the euro germ. new ideas coyly named the european redemption pact countries with debts greater than sixty percent of gross domestic product the ignored limit under the european union's master treaty would transfer those debts into redemption fund which could be covered by joint bonds the scheme has been called euro bonds like here's the catch max countries using the scheme would have to cover twenty percent of their debt with collateral payable in gold or currency reserves oh. default on the pavements and you lose your gold. of course is gold germany wants the gold this is a great way for germany to get all the gold this is so predictable we've been saying this for a year over a year now the end game is gold and this is clearly germany's making their play and well they say germany the supervisor of the pact and presumed inheritor of the gold if the loans are not repaid seems to be saying we don't trust the euro as it is it's too weak so give us a stronger gold backed euro they should have had to go

and european countries have already imposed their own independent sanctions on syria so those words led many to speculate that the u.s. and its allies are possibly considering military action the commander of the free syrian army he has called on joint special envoy kofi annan to publicly say that his six point peace plan that's about seven weeks old cars failed and out would allow rebels to resume their military attacks against president bashar al assad and his supporters nobody from the united nations has come out and blatantly said that peace plan has failed clearly there's been a violation of the cease fire on both sides the opposition and the. also the syrian government has publicly said that there they are the results of their investigation into last week's massacre in houla has found that armed rebels are responsible they say for the deaths of more than one hundred people there and according to their investigation they believe it is because armed rebels are trying to start a civil war in the country the u.n. is also continuing their own independent investigation into what happene

and the european parliament has made proposition and the european government. and i think this will go on the right track. so i think this is something that we can say nobody say no. whatever language you want to say it. you can't say it in russia. it's nyet, but it's not true. >> niall, to come to you, you're an historian. you've looked at revolutions through history. is there a tipping point, you know, 50% unemployment in that demographic, i mean, does that suggest social instability is just now seething beneath the surface in >> when i arrived in barcelona just a few days ago, it took me over an hour to get to the hotel because of the demonstration by students. it's not only in montreal that this happens. it was going on. and the mood is very bleak. the mood is very bleak with good reason because when you look not only at the current unemployment rates for young people but at the future prospects for european growth, it is hard to see what kind of a future lies ahead. moreover, when young people look at the fiscal policies of the generation that screwed euro

the negotiation process with the european union with the.

is the european economy? >> let me start by quoting president obama in talking about this and the your area if you -- the euro area if you get the diagnosis of the crisis right is doing just fine. what i mean by that is that there is no doubt the euro area faces a host of crisis. a banking crisis and we have a competitiveness crisis across the southern periphery and a fiscal crisis. the overall diagnosis of what the euro area is suffering from is an institutional crisis. it is a crisis of the design of the euro area itself which as it was created in the late 1990's is a flawed design. basically does not work when you have a major financial and economic crisis as we have right now. what that means is it is a political crisis that europe is facing. it is about the process in which national sovereignty and deep national sovereignty of the kind of national sovereignty over banking regulation and fiscal policy that governments were not willing to hand over to european institutions in the 1990's are now in the proc

beneficial for greece for i'm sorry for russia and for the european union. european union is already russia's biggest commercial partner accounting for around fifty percent of all russian trade it's also the biggest source of foreign direct investment european is the biggest client of the most important exports from russia i mean energy and russia's obsession opens additional produce for trade and for the development of our economic relations we believe this can be very important for the future. of the superman is that he's now in a phase of full implementation and i'm happy to say that president putin sees it as a priority russia is engaged in a very important process and we are very proud to be partners of russia in that regard. building a partnership between all societies. also and having a closer relationship between our peoples this is why visa issue and mobility issues are so important we are now engaged in the implementation of the common steps towards visa free travel that we have launched last. we welcome the substantial progress made in the u.s. ye

the european market isn't finished, that's one of the keys. if there is any key to europe it is the formation of an internal market. we shouldn't get very uppity about this because it wasn't until five years ago that we could ship wine in our state and we still can't do that very well, so we have our problems, too. we shouldn't be, you know, throwing rocks at europe so much because there are things we need to do which they can help us with, but the two economies are really, really intertwined, and it's not so much that our banks would fail if some of their banks, if our banks pull back, it's not necessarily that exports would drop, which they have, which on the margin hurts us because we don't export that much to europe. it's the overall picture of investment of confidence in europe and what the europeans want now from us is almost their first priority, led by the germans and you can correct me if i'm overemphasizing this, what they want is a more focused look on regulatory harmonization or mutual recognition and they cloaked it in the guise o

russia sells oil and gas to the european union. the european union relies on russian energy. both sides have to find a way to and move their partnership's fort. >> thanks very much indeed on the summit between the european union and the russians in st. petersburg. china has detained political activists and placed others on observation on the anniversary of the tan and men's wear -- enanmen square protest. this was a rare public display against the government in the southwestern city. such protests hardly ever happen in china. we went to visit the protester, but the police had gotten him first. his son showed us how officers had ransacked the flat, taken computers, and detained his parents. his father, a fruit cellar, had witnessed the events pointy three years ago. -- fruit seller. after keeping silent for years, he has begun to speak. >> china is like an apple that is rotten inside. on the surface you see little. people think the apple is still edible, but. it is but our whole system needs changing or we will never have human- rights. husband wason's detained last week. the

many european countries have diplomatic relations with north korea.he north has embassies in london and several other capital cities in europe. and north korea's new leader, kim jong-un, wants it in switzerland. >> how does europe view north korea's nuclear development and missile programs? europe is see denuclearization of north korea just like japan, the united states, and south korea. at the same time, european countries have been using their diplomatic ties with north korea to pursue their own agendas. this was demonstrated when the delegation visited pyongyang in may 2001. the delegation came away when north korea pledged to temporarily freeze its missile tests. it appears that europe's strategy is to maintain pressure on pyongyang and at the same time pursue a policy of engagement. >> and what about north korea? how does it view its relations with europe? >> there are three things to notice. first, north korea wants to strengthen its ties with europe in order to avoid becoming overdependent of china. the north also wants to show japan, united st

i think, as i just said when discussioning this earlier, we have noted that european leaders, european officials seem to be acting with a sense of urgency, and we -- we anticipate and hope that there will be expedited action in the weeks ahead, in the run-up to the g-20, but i don't have a deadline to provide to you. i think europeans are fully aware of the situation that they find themselves in, and they understand that i think, as you would expect, you know, what the options are and what steps are available to them that would help stabilize the situation, stabilize the banking sector and -- and help -- help them emerge from this crisis. >> the treasury department said today that finance ministers in the g-7 countries, along with central bank presidents, had an emergency conference call. what's the emergency conference call about? >> well, i mentioned that when i was answering questions on europe that today the g-7 ministers and governors did meet via teleconference and reviewed developments in the global economy and financial markets, and the policy response under consideration, incl

european union litigation to the united states. do you have a situation where the main valuable is the transfer. now, i wonder whether this should be better represent ed because the european union is based on the -- also, and this is based on some misperception, for instance, the issue that smaller countries benefit more from e.u. than larger companies. i think this is the misperception. large companies benefit us as much the others. the point that germany pays and the others don't. the issue that unit labor costs, the last three years or three years have shown that they converted. don't you think that clearly the perception is related to the elections to the democratic pors, but in the end agreed that leaders realized of the nature of the gain and in the end, actually act and find the solutions that are proper. >> do you want to finish with that and then we'll go to -- >> okay, very quickly on that. no, i would love to share that. i don't think there's any doubt that doing this game as an in state description, it's a plus somethin

merkel to to follow that road map so all europeans are know. very. intense discussion the eurozone members and among your members and all together is in order and i feel that. it is a blessing in disguise that. so strongly because there is no alternative ok stephen if i can go to your me a lot of criticism of the european the way this crisis been managed is that it's been to the advantage of the banks saving financial institutions and not thinking about sovereign debt since in the end actually jobs for people how much of it is today do you think it's been looking after the financial institutions and i would say the very rich. i don't i don't see that characterization being a fair one to be to be honest the the point about the point about about maintaining a stable banking system in globalized markets is is we've seen what not having a stable banking system in globalized markets means we had it here in this country in the u.s. in two thousand and eight when lehman brothers went down in the money markets collapsed and was teetering there was no alterna

may be blindly slipping into default along with other european nations. max kaiser this is the kaiser report well you know it's pretty much all a con game and some con games are more well known than other stacie herbertson max keiser the short count come on it's a change a reason con it's known as and is a common short con and involves in offer to change in amount of money with someone while at the same time taking change or bills back and forth to confuse the person as to how much money is actually being changed the most common form the short count seen in many movies yes that movie from twenty years ago or so paper moon had a famous scene during the depression when they're at the store they're doing that the change done they're switching back and forth and the person ends up with a lot less money than they thought they did and we see this being played out on the global banking scandal scale and as we've been saying all along it's all based on traditional con games just played out a much bigger of a time scale much bigger size of a con a bigger on the bi

and there is the european central bank. it deals with problems and struggling countries, in part using german money. if the efforts prove worthless, that's german tax money down the main. on top of this, german government pays into the international monetary bailout scheme. 140 billion of that is coming from berlin. this is the cost to german taxpayers for propping up the euro. it is not far off twice germany's national budget. >> france's elections confirm to the -- confirmed the allies to the new president francois hollande. >> that means hollande moved quickly to implement reforms he promised in his election campaign earlier this year. the socialist reform agenda includes reprising -- increasing taxes on corporations and hiring more teachers or schools. aung san suu kyi has attended a meeting in oslo. >> and the rock singer bono is also attending. he is due to present her with an amnesty international work in dublin on wednesday. >> and the games for the european soccer championship are under way. >> we have some other s

received a mandate from the european council last week. too. 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 st

european commission president baroso and the european council president pledged to recover confidence in the credit of euro zone countries. a political party in favor of austerity policies won the election in greece on sunday. he said its leaders need to form a new government as soon as possible, then implement austerity measures. >> we stand ready to continue to support greece in its endeavor. >> the eu leaders stressed athat they will address mid to long-term ish us tsues includin banks. they said that will help stop a negative spiral. european banks have been left holding bad debt when government bonds have been grodowngraded. >> people who trade stocks are looking for more. a ai is here with us now. what kind of week are investors having. >> with the g-20 and the greek elections that took on sunday, we saw a nice rally in asia yesterday. u.s. and european markets ended mixed in overnight trades with the dow jones ending down a fifth of a percent lower at 12 no ,741. it weighed off against the lurking concerns in spain. for more on that and how stocks are trading in japan this tues

levels and the establishment of the european stability financials of becoming european financial stability facility and the european stability mechanism to provide emergency funding. we have enhanced banking supervision and putting the new agency in london. the fiscal compact which reinforces the six-pack is now in the process of being ratified and that no one under discussion like banking supervision to the point perhaps of banking unions and the utilization of debt. but despite all this the crisis persists. indeed as one phase seems to ease, one country moves away from the brink and another comes to the floor if not crees the next day it's been and perhaps even france. the market seems unconvinced that europe will succeed. on one level the crisis is surprising. the year rose on as a whole has some strong economic fundamentals. the deficit as a percentage of gdp is only 2.8 per cent as opposed to ours in the united states at 8.7%. the debt as a percentage of gdp is not far off, 87% versus 70 or so but as countless observers have noted, fiscal decision making is still based at the national