everything now to get spain back up and running through support for the banks organized by the european central bank and then through the banks helping the government to keep its finances sound and solid ahead of the european central bank has recently called for a growth compact in the eurozone but given the austerity and the cuts that have been made well the e.c.b. has really been dishing it out has never is such growth or stimulus actually possible with all these cuts well it depends on what we define by growth or similar as policy obviously a stimulus policy or a growth policy fueled by a larger budget deficit is out of the question certainly for the european central bank now what the european central bank and mr druggy answer certainly also the german people from the bundesbank are thinking of is much more in terms of liberalization which constrained. deregulation in a lot of markets that's the way they are thinking and they are absolutely not thinking in terms of a larger budget deficits to stimulate the economy ok we'll leave it there you had one of about editor in chief of the transit magazin

frankfurt we have the the largest financial center in europe and also the headquarters of the european central bank now right now amongst these people as they march towards the headquarters of the european central bank it has really been a center full protest against the current debt crisis in the austerity measures that have been imposed across europe a camp was established outside of the in october of last year just this last week that can was actually cleared out of the way ahead of these protests that are taking place right now the pain take place of the past few days now that count will be reestablished again own sunday but today on saturday is the largest of the demonstrations as you can see this group behind me around fifteen thousand people we were hearing from the organizers on friday were expected to turn up they could actually be quite a few more here it's quite difficult to see from where i am but it certainly stretches back quite a long way now. they're going to march towards the european central bank as they try to make their point which is that they want to see socialist fiscal plan

as they try and stop people getting into the european central bank headquarters trying to stop the european central bank from doing business as they say they want to see a more socialist economic policy and acted in across europe now it's not just the bloc you find people that are taking part in demonstrations also attack the left leaning socialist group as well they're going to be out in force on saturday on friday we saw majority of quite peaceful protests however there were some flare ups here in frankfurt police saying around a thousand people taking part in demonstrations four hundred were detained this is after people tore down traffic signs as well as trying to hang banners and places around the city. now as say these demonstrations will continue there's a very very strong police presence here in frankfurt at the minute i was driving through the city on friday evening lots and lots of police everywhere you turn around five thousand expected to be out to try and keep the peace on the streets of as i say europe's largest financial center alive from frankfurt thanks very much indeed for

the people at the european central bank, the treaty is a very clear cut vision of what that bank is supposed to do and not supposed to do. the language has got to get awfully fluid to reconcile what they are actually currently -- everyone is uncomfortable but they all have mr. prince's view of what can happen or hope. you know, everyone likes to say we should put off the actual tough adjustments until the economy can take it. there is a presumption in that statement that the markets will allow us to do that. and i'm fearful that the markets are going to say no at precisely the most inconvenient time. >> those markets, are they vigilantes? >> yeah. >> when you look at europe and you and i have talked about this in a number of times we have spoken and met, you continue to go back to what i call cultural economics, not the purity of model making or behavioral economics, cultural economics in europe is different than in america. give us the nuance there not only of peripheral europe but eastern europe as they try to amend to the culture of germany. >> look at east and west germany. you had basic

. >> oecd economists want the european central bank to cut interest rates and they said the government's need to strike a balance between cutting spending and stimulating growth. >> spain's jobless numbers are not likely to drop any time soon. that is according to the oecd. it predicts spain's economy and others will continue contracting for the foreseeable future. it sees eurozone nations grappling with a dangerous mix of high deficits, nonexistent growth, and the vulnerable financial sector. the oecd believes the chances of a severe recession is growing. >> things have begun to deteriorate again recently, so we cannot rule out the development of a downside scenario, which if ignited, could lead to serious repercussion worldwide. >> the oecd is urging the european central bank to resume buying up government bonds of troubled eurozone states, and it has added its voice to calls for jointly guaranteed eurobonds. france also wants eurobonds, but germany remains opposed. eu leaders have much to talk about at their summit on wednesday. >> it is still unclear who will represent greece at futu

protesters are gathering in barcelona as european central bank chiefs meet there today and security precautions have been heavily ramped up spain even going so far as to reinstate checkpoints along its border with france in a bid to try to limit the number of demonstrators arriving from within europe now that meeting is expected to run parallel to a massive and potentially violent protest we're keeping our eye on for you thousands of riot police have been deployed with reinforcements on standby these are latest pictures these c. b. chiefs themselves are expected to resist calls to begin buying up spanish bonds as investors abandon the country's debt auction that spain reels from disastrous unemployment levels a million strong was terrified demonstrations we got a comment from economist yanis varoufakis he says that he sees glaring double standards here. while the c b i spent over the last few months one trillion euros financing bankrupt banks. because through the pumps and. it is excusing to to come. this is all states like spain like portugal like ireland like greece and to come to their assis

meeting of the european central bank in barcelona has sparked unprecedented security measures in spain reflecting public anger over savages sturdy cuts to try to deal with the country's budget deficit several border controls have been restored for the event of the authorities fearful of protests university of athens economics professor yanis varoufakis told us people have every reason he thinks to be furious too while they seem to be spent over the last few months one trillion huge financing bankrupt banks and the included below because three to four percent. it is excusing to come to this is of states like spain like portugal like ireland like greece and to come to their assistance european union as a whole requires misanthropy conditions to be imposed upon the populations of those countries so you have a completely different attitudes by the moment because what is of your one is towards the bank a bank a school where essential in forging this crisis and they are being treated with love. and then you have the way the states like spain are being treated europe does not have the need to

were falling, bond yields were soaring and at that point we seemed to be on the brink but european central bank stepped in and lent roughly a trillion dollar euros to struggling euro zone banks and spenlly what that did was calm the markets and buy a space of time for european leaders to get their acts together and try to move forward on some of these integration steps. unfortunately they didn't use the time given to them so at this point we sort of run out of the time that the euros could buy and we're back to where we were before. although things are now actually a bit worse since the euro zone economy seems to have gotten weaker in the meantime. >> now european leaders are looking to germany saying last time european central bank coughed up a trillion euros, that bought us time. germany couldn't you step in and give us more money too. >> yeah, there's a couple things sort of need to be done in short term. one i think is europe needs to do something to shore up the banking system. we've seen this especially in spain where there's loss of confidence in banks. government is going to bail one ou

the country it's called block pupae this is whereby the protesters are trying to stop the european central bank from stop people from being able to to get there to do business there and to get a stranglehold on the bank they want to see more socialist economic policy implemented across europe they're also going to be joined by the leftist group attack the protest movement here in frankfurt isn't anything new since october last year there was an occupy camp established next to the european central bank headquarters that was cleaned out on wednesday this last. week and they've been told they will be allowed to return. after this weekend's protest. although there solidarity between those railing on german streets and the greek people unhappy about social cut ties between the leadership of the two countries have only weakened athens accuses german chancellor angela merkel of interfering into greek affairs after she reportedly received just said that the debt stricken nation should hold a referendum on its membership of the euro but the german government strongly denies making such claims find out m

spanish protesters are gathering the city of barcelona where the european central bank is meeting of the event sparked unprecedented security measures in the country reflecting public anger over the savage government austerity cuts to try to deal with that huge budget deficit several border controls have been reimposed for the event with the authorities fearful of violence the university of athens economics professor yanis varoufakis told us that people he thinks have every reason to be furious. why was the c b i spent over the last few months one canadian. financing bank of banks. because three to send. it is if using to come to this is. states like spain like portugal like ireland like greece and to come to their assistance european union as a whole requires misanthropy conditions to be imposed upon the populations of those countries so you have to be different. because what is it your one has towards the bank the bank is where essential. for during this crisis and they are being treated with love. and then the way the states like spain are being treated europe does not have the yo

this is something that the ec economics at. >> the european central bank but 800 european banks on myupport by providing more than euros on loan to them. this is only temporary solution, not a cure. >> it is a powerful one. this has to be used properly by governments. fiscal issues and competitive issues that europe is facing. >> the calm has evaporated. there are escalating fears that greece will leave the euro. the ensuing turmoil will form a more serious fracture of the currency union. but spain and italy look considerably weaker. the cost of their government's soaring again. these crises have been met with fire fighting, which for a time would put out the flames. the question is whether the currency union is up for the kind of fundamental reform necessary to ensure its long- term survival. what may be needed is a greater willingness by germany to deploy more of its fearsome financial resources to help the weaker economies such as spain and italy in that time a painful transition. but it's sharing of the debt burden probably requires near revolution in the way the eu is government.

here into that square just a few city blocks away getting ready for the march towards the european central bank headquarters here now this is really being the center of german protest movement this is the the largest financial center in europe and the the groups that are pushing the occupy group as well as the left this group attack who also here as well the the group of french origin who want to see a more socialist agenda in place a more socialist fiscal agenda in place in europe attack as well who want to see a tax levied on fine. transaction transactions they're all in town to make their voices heard now this is the expected to be the largest of the protests that's been over the past few days on friday we actually saw four hundred arrests here in frankfurt that was an unsanctioned demonstration that was taking place police moving in and detaining four hundred people there after allegedly some traffic signs were torn down it has to be said though everything being carried off incredibly peacefully but under the watchful gaze of a very large police presence it's become something of a almost a

spanish police have made a number of arrests at a protest in barcelona where the european central bank chiefs are meeting security precautions ahead of the talks have been heavily ramped up spain even going so far as to reinstate checkpoints along its border with france to try and limit the number of demonstrators arriving from within europe the fear was that a potentially a massive protest could turn violent thousands of riot police were deployed with reinforcements on stand by the e.c.b. chiefs who resisted calls to begin buying up spanish bonds as investors abandon the country's debt options instead they're urging patience over austerity saying it needs time to work with spain reels from disastrous unemployment levels and millions strong all staring demonstrations because of missed janish rove fokus says he sees a glaring double standards. while they seem to be spent over the last few months one trillion euros financing bankrupt banks. think let it be known pretty straight up one percent. it is if using to come to the systems of states like spain like portugal like ireland like gree

police crackdown on an anti all sturdy rally in barcelona alison a major european central bank heads meet there to discuss the state of spain's rapidly spiraling finance a. nato fails to move forward on euro and missile defense dialogue with russia as moscow says it reserves the right to strike back if the system breaches the security. thanks for joining r t this may third on charon terror well to egypt's leading presidential candidates are suspending their campaigning they blamed the ruling military council for wednesday's brutal attack on protesters up to twenty people were killed and more than eight hundred injured by unknown attackers sparking pro their shows the rally was supporting a disqualified old trick conservative islamised candidate seen as one of the forefront front runners before he was banned various political forces accuse the ruling military of for orchestrating the bloodshed sarah firth looks into the chaos religious tensions have created in post revolutionary egypt. phone in middle east and. this is the leading could be checked as a man and his should tary could fi

after their meeting, the european central banks loss erased the reform taken by countries like spain. bossropean central bank's praised the reform taken by countries like spain. >> there is the violent image, but this does not detract at from understanding. >> in the end, the demonstrations were sporadic and small, but many more people here are unhappy about government cuts. the ecb's message is that the spanish government is moving in the right direction. >> a british safari guide and a group of his colleagues have been held for six weeks without charge in the central african republic after discovering the site of a mass killing. he reported the find to the authorities but was then arrested on suspicion of committing the murders. >> the central african republic is a country where hunting is big business. in these wilderness areas, wealthy clients can combine the experience of the savannah with that of the african forests. it is what drew david simpson here two years ago. he left his home in england, obtained a pilot's license, and began working for a safari company. his brother, who

if the european central bank says that overall european inflation is going to be below 20%, 2% for thet five years, that's the end of europe. that's the end of the lower inflation rate. >> paul krugman. thank you for much for your time. >> thank you. >>> still ahead, i will talk to real live republican senator about stuff we might actually agree about. ♪ why do you whisper, green grass? ♪ [ all ] shh! ♪ why tell the trees what ain't so? ♪ [ male announcer ] dow solutions use vibration reduction technology to help reduce track noise so trains move quieter through urban areas all over the world. together, the elements of science and the human element can solve anything. [ all ] shh! [ male announcer ] solutionism. the new optimism. so i wasn't playing much of a role in my own life, but with advair, i'm breathing better so now i can take the lead on a science adventure. advair is clinically proven to help significantly improve lung function. unlike most copd medications, advair contains both an anti-inflammatory and a long-acting bronchodilator, working together to help improve your lung

necessary adjustment, economically or politically, and was the core of the eurozone, including two european central bank, does more to share the burden of that adjustment -- including the european central bank, does more to share the burden of the adjustment. >> political pressure on the german government notes, too. mounts, too. >> chancellor angela merkel says she's looking at additional growth measures. the leader of greece's's radica radical left says she is playing poker with people's lives. >> let's go to athens end our correspondent -- athens and our correspondent. richard, how is this campaign going to be different from the last one? >> firstly, it is probably be much more vitriolic than the last one, given what was said during some of the protracted negotiations to try to form a coalition government over the last eight or nine days or so. there was some very strong language used between different party leaders. i think it will be a vitriolic campaign. we will also see the new democracy conservative party, which came out on top on the election on may 6, and is now trailing behind syriza, will an

police crackdown on an anti-war rally in barcelona as major european central bank heads there to discuss the state of spain's spiraling dance. those are the top stories this hour up next the hidden purposes and secret strategies of the global u.s. military facilities and the risks for the countries hosting them that's in our special report. on. how they get the money to make them who's giving it to him or to protect us from. these are all questions somebody like obama should butt out. it just didn't happen the empire it was it was designed and those bases just came along like you know some terrible cancer. when you see how much money is at stake and in the operations that go on every day it's phenomenal the number of flights to take off from kadena air force base every single day involved just that one base in that one country on one day and have been fault thousands of gallons of jet fuel. repair and maintenance and parts for those aircraft the rationale for these bases is that they're continually practicing and training and using the equipment and running the personnel through their pa

inside the building, the leadership of the european central bank was giving a little away about theireliberations but afterwards, the ecb president was only prepared to say the key interest rate would be left unchanged at a record low of 1%. and he stressed that economic growth should be as important to governments as austerity. >> unfortunately, often countries found themselves in urgent situations where they basically had no time other than doing the easiest thing, which is to raise taxes and reduce capital investment in expenditure. but this, even though it can be understood to be a short-term measure, it should be corrected in the medium term. >> like greece and portugal, spain is trying to overcome its crippling amount of debt by cutting public spending. but the madrid government itself has calculated that this means the economy will probably shrank by 1.7% this year. many spaniards feel that their country will be stuck in recession for a long time. >> ecb president mario draghi's calls for politicians to boost growth in the eurozone have been well-received in barcelona. many in

this is the the real hope of not just german banking but of european banking in general and as i say they had quarters of the european central bank located here and. protests also describe some of the police tactics here so about which is ask our well being. here is this. move people are not allowed any merit anymore to entered into yet this is something that this completely new in this country that not only remembers police can be seen around the demonstrators but also that that individual people are picked out names are listed before. the manifestation starts they are not allowed anymore to and that the city and this is a going down business sort of your version of democratic rights what happened is that they controlled the brocaded to street and then they controlled everybody and to individual people they said. we want to see your passport so then by controlling . their database and said no you are not allowed to enter just square because we suppose you will do something illegal. cohen grief is uniting israelis and palestinians have lost their loved ones to their long lost in conflict between them it's a unique gathering

protests thousands of police lining vassals street set of expected mass demos there bit later as european central bank bosses decide on the euro's future we've got a report coming up. and it can trigger tremors and even poison water supplies but british leaders insist they will plow on with a controversial method to extract underground gas despite the cost to residents around the. america's chief diplomat surging china to help rein in tensions over iran and north korea's nuclear activities hillary clinton is in beijing right now and said both the u.s. and china should work together to restrain pyongyang from further provocation and prevent iran from developing a nuclear weapon clinton's visit comes an extremely delicate time though in their relations beijing accuses the u.s. of meddling in its internal affairs after the u.s. embassy briefly sheltered a chinese dissident activist it's also we're a tape of washington's military build and see if something chinese experts say isn't it distracting from its own problems. the u.s. strategy is really try to encircle china from all the way from japan to. india

spanish police have made a number of arrests at a protest in barcelona where european central bank chiefs are meeting security precautions ahead of the talks have been heavily ramped up spain even going so far as to reinstate checkpoints along its border with france to try and limit the number of demonstrators arriving from within europe the fear was that a potentially massive protests could turn violent thousands of riot police were deployed with reinforcements on standby the e.c.b. chiva resisted calls to begin buying up spanish bonds as investors abandon the country's debt auctions instead they are urging patience over sterrett saying it needs time to work that as pain reels from disaster as the unemployment levels and millions of strong austerity demonstrations business experts johan van that filled the editor in chief of trends magazine believes cuts will only cause more problems in the short term and even medium term results of these kinds of policies just as we have seen in greece is that a recession gets worse and employment problems budget problems also get worse and they are abs

i think it would equally put the congress in an extremely difficult position as unlike the european central bank, which is an independent entity, the federal reserve is not and cannot be independent of congress. it is a creature of congress under the constitution. i think also that creating a single rigid price stability mandate would bring back the technical difficulties we experienced in the 1970s and 1980s over the definition of money. the definition of price stability would become similarly problematic if one looked at the notional definition of inflation presently in use, i think you would find that the federal reserve did not, in fact, violate its price stability mandate in the run up to the great crisis. it would be very hard to know before the fact when it was doing something that was not con sannant with that mandate. the profession fell into complacency before the great crisis and the crisis delivered a shock from which economics has not recovered. issues of the cost of resources, as yet unfinished project of financial reform remain unresolved. unemployment is not going away as many pr

the potential costs to the euro zone a meltdown is far higher than the potential cost to the european central bank. issue alarm me a bit later i'll come back to what i think the european central bank needs to do immediately ok i'm going to go back to you in berlin i mean what what is the way out here because we are seeing meltdown as we are speaking right now is there something the germans can do because we've all pointed on the program i'm sure you agree the eurozone has been good for germany but the way it's going down the path now it's slowly but surely everyone is losing confidence in this currency a currency that merkel seems to have complete confidence in to this day. one problem is that germany is not the leader of the european union this is a democratically elected system this is not so you're saying they don't really know what germany has to say about the euro zone is and probably the most important country. just one country it might be the most important country among twenty nine but it's certainly not the leader everyone has signed for fiscal pact and it's not about dominating the other

but we sigh a marked change in language here, which is that the european central bank president talked about incalculable consequences. now you hear e.c.b. members saying it's not what they want, it's not desirable, but it is possible. one talked this weekend about an amiable divorce. another one said the consequences would be much more serious for greece than for europe. so, some greeks politicians arguing it's a bluff, in the end they won't force us to the wire. others saying greece faces a very stark choice this week, that they actually do mean it. i think it t is, yes, we still want to save greece, but not at any price. >> thanks very much indeed. aaron, the markets are falling. >> absolutely. i think the markets are reacting to the picture, but also to your guest that was just saying not at any price. that's the worry. two years of will owe their won't they, and people are fed up. if greece is not going to stick by the rules, then greece can leave. that's basically in the language your guest talked about, exactly what we're seeing and reading at the moment, especially from the eur

frankfurt this is the real hope of not just german banking but of european banking in general and as i say they had quarters of the european central bank located here. meantime a homeowner who's at the protests also describes some of the police tactics you saw there she says that go well beyond the duty of the law or. here we. move people not allowed any man anymore to enter. this is something that this completely new in this country that not only remember so police can be seen around the demonstrators but also that individual people are picked out names. before. the manifestation starts they are not allowed anymore to and that the city and this is going down business sort of your version of democratic rights what happened is that they controlled that group a discreet and then they controlled to everybody and to individual people they said . we want to see your passport so they control. their database and said no you are not allowed to enter just square because we suppose you will do something illegal. and both the protesters and austerity stricken greeks march in solidarity against banking irresponsibility and greed among the nat