having said that, i expect even more defense cuts on the side of the european union. if you take on an average since the end of the cold war, all the european countries on their defense budget an average of 20%. germany is modernizing its army but it will not be enough. in order to get ready for the security challenges of the 21st century. what concerns us here in the u.s. as well as here, is the war fatigue. where we see our political leaders not able to make the argument in front of their constituency any more. why we still need to get engaged in places like iraq, afghanistan, or libya right now. whenever the next case comes out and it will probably be syria and another place in the world, there is no capital to make the case for any kind of military intervention anymore. that should concern us. >> let me start by endorsing david's endorsement of the future chancellor. in this analysis of german politics, let me jump off of that point. while the economic situation is indeed serious, i do not think it is the root cause of the problem we face. we have always gone throu

within the european union so it has many strong economic arguments in favor of it keep in mind that the explosion of the debt has very much to do with the explosion of interest rate perceived risk that was triggered when the moody's and standard and poor's downgraded the debt sovereign debt of greece more than a year ago just when the e.u. member countries that you council agreed on a rescue action for greece and that was a politically motivated motivated act in my view driven by the fear that the dollar was about to go into freefall the chinese were talking about the. disinvesting from dollar assets u.s. treasuries and so forth and strengthening their profile within the euro so just at that moment standard and poor's downgraded greece to junk bond status and that triggered the explosion of interest rates which makes the euro land dept of the of these countries portugal greece and so forth virtually unplayable so a solution has to be found that deals with that and i think they of course no doubt that they're causing many waves in the financial world these days lie from frank pa

if this could start a run on keeping gold in america in the european union and the u.k. and switzerland this might have much more dire consequences than mr chavez imagines . now the republic in the caucasus is preparing for an area that actually following the death of its president any future leader will take on a wage and still recovering from conflict with neighboring georgia next we talked to the acting president about the challenges facing his country. we are in the republic of a cause here where preparations are under way for the august presidential election alexander and is the country's acting president and also one of the candidates and he's here with us today the upcoming election will be the second presidential election since a cause a gain recognition just how hard it is for a cause here to live as an independent state i hear some of of course there are many difficulties with the company the loss already but there's still an enormous amount of work to be done but we're optimistic about our future the most important thing is that following our country's recogni

so having said that, i expect even more defense cuts on the side of the european union. if you take on an average since the end of the cold war until now, all the european countries have had on their defense budget on average by 20%. germany is modernizing its army but it will be not enough in order to get ready for the security challenges of the 21st century. but overall, i would say what concerns us here in the u.s. as well as in europe is the war critique right now where we see our political leaders unable to make the argument and why we still need to get engaged in places like iraq, afghanistan or libya right now. so whenever the next case comes up and it will be probably syria or at another place in the world, think there's no political capital left in the u.s. to make the case for any kind of military intervention anymore and that should really concern us. >> let me start by endorsing damien's endorsement of future chancellors. [laughter] >> because i think german politics is spot off and while the economic situation is indeed serious, i don't think it's the root ca

if this could start a run on keeping gold in america in the european union and in the u.k. and in switzerland this might have much more dire consequences than mr chavez imagines turning to the skies now which have been particularly busy in the moscow region the max international air show plays host to a wide range of magnificent men and their flying machines. the show's third day solve multibillion dollar deals sealed on the ground while a ray of military and a civilian aircraft showed what they can do with their by and well max meeting allows private investors to see leading edge aircraft in action and then putting their orders on the spot throughout the show crowds were enthralled by death defying stunts from some of the world's leading aerobatic teams artie's tom barton took to the air in one of their planes and lived to tell the tale. engines check him strawman's check runway check and then it's takeoff for the russian aerobatic display team. andre is training to join the team he thinks he's nearly good enough now but still remembers his first flight as a solo pilot. wi

the members of the european union of once again cooled on gadhafi to relinquish power but for over the ongoing assault from tripoli is fading replaced by concern that the new government may not have the authority needed to bring and maintain peace also use all of it but he's forming the reaction from london. the prime minister david cameron is very confident that this is the beginning of the end he said he is on his way out he's recently just been on the phone to the leader of the national transitional council mustapha. stressing the need for a smooth peaceful and. transition to this new democratic leadership at the same time as all of that he did say that nato forces mandate for being in the country expires in just one month it will stay there for as long as it takes so quite an open ended response to that question if there is some uncertainty tempering the jubilation around the rebels presence in tripoli the other uncertainty is over the question of the frozen assets britain has said it's prepared to release them for the building a new infrastructure in the country and stabilize iraq

obama issued his statement and his executive order we did see germany france britain and the european union all are rapidly issuing statements calling for the syrian president to step down and this all coming just one day after president assad did speak with the un secretary-general ban ki moon are suring him that all military and police operations in his country have halted but clearly this is not stopped or the u.s. and its western allies from putting more pressure on the syrian government the u.n. security council is meeting today to first discuss findings of a report that was released by the u.n. human rights panel this twenty two page report accuses the syrian government of carrying out of human rights violations since march when the anti government protesters began taking to the streets but one of our correspondents maria is inside syria did speak to some people on the ground there some people who believe that the government security forces are actually helping their lives here's a bit of what she found out. the city of there is sort of maybe liberated but in the last few days it suff

and european union they have very good professional analysts they're not going to sit out a lot. will get it is not going to be a full transition well that's what they're counting on and will given the excuse to intervene militarily on the ground you saying then nato will not be pulling out then by the mandate the date by september no it will not so are you saying then therefore we're going to see nato increasing its presence boots on the ground well if you think really presume to know where they're performing this i don't know when there will be there will be military keep controlling believe me it's a fact how do you will do it to do you know several options will remain in place to me that's almost one hundred percent certain so you have no faith whatsoever in the national transitional council. well why should i i mean i mean let's list this and p.c.p. has now been proven anything beyond that they are former lead. people on people and with their very. backgrounds too far their truth and nothing. what's behind it then what is the driving factor then do you think from nato point

well the magic pill the supposed to spread the euro across the european union is something called euro bonds that in effect would transfer northern european stability to the southern states it would create a single beds people could play into the supposedly. calm investors to show that there is a united front and the stronger states are solid and in solidarity with the we can solve and periphery countries like greece portugal also spain and italy now germany for all of those reasons doesn't want to discuss it particularly at the moment it doesn't want to move this whole reputation as a reliable economy by signing up to this and it has actually said that euro bonds will play no role in the talks today some investors a bit surprised because growing numbers are saying the euro bond is the only way to save the euro now influential investors like george soros say portugal and greece should leave the euro and eurobonds or the only way out now even germany is already being sucked into this crisis needs growth the growth of its economy skidded to a halt just north of one percent in the second

or even question the agency's judgment of the happened last week when the agencies graded the european union countries and their ratings now that suggests that the agencies are inconsistent to say the very least as a result the european union is creating its own agencies will do this downgrade for americans who will see themselves having to pay more more interest on their loans and having to pay more on that is bad really for everyone around the world who lend money to america because it raises the risk of not getting that money back one small debt for a man one giant black hole for a nation coming up later in the program we asked what's the difference between our debt and those of our governments. it's much worse for a government to be and why because we trust the government to do the right thing and they're doing absolutely the opposite of that we don't you trust yourself to do the right thing and live within your means i do mean debt is such that i can pay it off. but first a wave of mass anti-government protests is underway across israel the biggest rally happening in tel aviv with up to

their ratings now that suggests that the agencies are saying the very least and as a result the european union is creating its own agencies will do this downgrade for americans who will see themselves having to pay more more interest on their loans and having to pay more on that is bad really for everyone around the world who lend money to america because it raises the risk of them not getting that money back. one small debt for a man and one joe and black hole for a government when later in the program we're in new york to ask what's the difference between debt and those of our leaders. much worse for a government to be and why because we trust the government to do the right thing and they're doing absolutely the opposite of that but don't you trust yourself to do the right thing and live within your means i do mean dad is such that i can pay off. the largest antigovernment protests israel has ever staged starting now across the country as we speak and indeed we bring you live pictures all of the rally taking place at the moment until of if activists expect hundreds of thousands to take to th

ratings now that suggests that the agency is rigged to say the very least and as a result the european union is creating its own agencies. for americans who will see themselves having to pay more more interest on their loans and having to pay more. is bad really for everyone around the world who lend money to america because it raises the risk of them not getting that money back. one small debt for a man one giant black hole for a government program where in new york what's the difference between debt and those of our leaders. much worse for a government to be and why because we trust the government to do the right thing and they're doing absolutely the opposite of that don't you trust yourself to do the right thing and live within your means i do that so that i can pair off. the largest anti-government protests israel has ever stage are underway across the country the biggest rally is taking place and tell of it with an estimated one hundred seventy thousand attending so far one street there has already been renamed by some as israeli town here after the square where the egyptian revolution

accordance with the two countries laws there also been a very sharp comments coming from the european union with almost all of the organizations in europe criticizing the current state of affairs the fact that you . has been placed under arrest and they demand that she must be released immediately and that the trial must be held in a transparent way and there were more international news now in our world update for you this syria's foreign minister has pledged free democratic general elections in the country by the end of the year it comes as activists say fresh clashes in the left at least twenty four people with security forces firing on government protesters the six day crackdown is now reportedly killed around two hundred people across the country international condemnation of the violence is growing the u.s. is working on new ways to influence the situation sanctions. seventeen people have been killed and four injured in a multiple vehicle collision in southern china state media says the pilot was triggered after two trucks collided flipping one of them into the part. an oncoming passe

full accordance with the two countries laws there also be very sharp comments coming from the european union with almost all of the nations in europe criticizing the current state of affairs the fact that you. has been placed under arrest and they demand that she must be released immediately and that the trial must be held in a transparent way. to get out of some other stories making headlines across the globe protesters have clashed with authorities in north london rioters tried to storm a local police station shops in a passenger bus were also set on fire plus two patrol cars demonstrations happened after a twenty nine year old man was shot dead by a police gun crime unit earlier this week more than three hundred people took to the streets of the british capital to demand justice over the killing. of syria's foreign minister has pledged three democratic general elections in the country by the end of the year as activists say a fresh clashes in syria have left at least twenty four people dead with security forces firing at anti govern. protesters the six day crackdown has now reportedly kil

it will have to pass parliament and the european union. during the process, it could be the job of the politicians -- we could have seen during this week that they failed again. >> what is the main message from friday's talks, especially those from the chancellor and french president. >> they have to streamline their political communication once again. some say there are signs. there is no comment on what they have to numbering another comment into the market. the only comment we got was from romo. saying that they will try to gain further confidence. they announced they might, on with interventions on the bond markets. we will see what is going to happen after that. >> thank you for joining us. stocks bucked the trend on friday after a dizzying global rally that like to 0.5 trillion dollars of global equities this week. it brought back memories of the 2008 financial crisis. however, wall street stocks recovered from opening losses of more than 2% to trade mostly higher in the afternoon after posting their worst losses in two years. >> let

economics she's been very very unhappy with the activity and in recent months coming from the european union itself the european commission and the euro zone finance ministers and she's been increasingly critical of the fact that there is basically new leadership in the euro zone we keep having these false agreements that signed wonderful everybody says the euro zone crisis is solved and there's within a marker of a few weeks we have a further crisis in another economy is going to be more money so there's a very very fundamental argument going on within the euro zone within the european union and it's going to kick off a softer noon in brussels and also at the polish finance minister recently announced that the eurozone is at threat of disintegration and sharp contrast of course with the rhetoric we're hearing from germany and france. that's how much unity is there within the e.u. how much of a fight are we going to see at this meeting well i think we're going to see a very significant argument because let's face it we've got realists like mrs bowles and also starsky who you mentioned the po

their ratings but now that's the gist of the agencies to say the very least and as a result the european union is creating its own agencies. for americans who will see themselves having to pay more and more interest on their loans and having to pay more. is bad really for everyone around the world who lend money to america because it raises the risk of not getting that money back. on a small debt for man one giant black hole for a nation coming up later on the streets of new york what's the difference between our debt and those of our governments. it's much worse for a government to be why because we trust the government the right thing and they're doing absolutely the opposite of that don't you trust yourself to do the right thing in my within your means you get so that i can pay it off. the wave of mass anti-government protests is underway across israel biggest rally happening in tel aviv with up to a quarter of a million people attending they say they're angered by the high cost of living at an affordable housing in the country artie's policy or has more. the miscarry is electrifying what i

of people over it's a loser calling me of course we saw a crisis talks between italy and the european union this week on with their problematic economic situation the fact the yields on their goals would reached above six percent which is considered the threshold for a sustainable rate the same happened in playing the prime minister of us by example terror pals of his holiday to return some address a deal with the problem there we also know that it's lease economy is hardly over this said that means it is for more than its gross domestic product which is also obviously noles sustainable now it's only following the highest cost savage spending because the trouble is that the tiny people say they want to accept those cards and that they are actually going to want stronger ties plus we're still expecting steeper drops in the markets there in europe yes but hold in most of the same to me what's investors are saying very much throughout the european union we've seen for example the footsie one of the biggest stock markets in europe in london taking a shock jock throughout the week the thing drop

it is obvious that the european union must integrate financial and economic policy making. >> they called for a limit on euro zone nation debt. to be chaired by the european council president. >> we hope that the 17 member states of the euro zone will commit to blighting balanced budgeting in to their constitutions by the summer of 2012. >> they both spoke out against the euro-bombs, speaking for a tax for financial transactions. >> is it conceivable that all of the 17 nations in the euro zone would agree to these types of proposals? are they enough to address the debt crisis? our correspondent has been covering the paris talks for us. >> it is conceivable that the other members could agree to those proposals. not only was that like this in the past, with france and germany coming up with an idea, but also, i think, all of the measures and proposals that were made, they were already within discussion. so it is not completely out of the blue. presenting ideas that already exist. working within the economic government, where they found a way that was institutional, that is rather something

would impose a tax on financial transactions, seeking to impose a governing body headed by the european union. they insisted that the existing blocks, the bailout fund is sufficient. >> president sarkozy said that he and change it -- chancellor merkel would commit to a balanced finances, and that they should write a goal in to their constitutions. under pressure to produce redoubt -- results because of recent market turbulence, they are under pressure to produce commitment to the common market currency. >> we have decided to work on strengthening the euro as our common currency. germany and france are committed to this end. it is obvious that the european union must integrate financial and economic policy making. >> they called for a limit on euro zone nation debt. to be chaired by the european council president. >> we hope that the 17 member states of the euro zone will commit to blighting balanced budgeting in to their constitutions by the summer of 2012. >> they both spoke out against the euro-bombs, speaking for a tax for financial transactions. >> is it conceivable that all of the 17 nat

full accordance with the two countries laws and also been very sharp comments coming from the european union with almost all of the nations in europe criticizing the current state of affairs the fact that you are saying god has been placed under arrest and they demand that she must be released immediately and that the trial must be held in a transparent way they're actually going to be reporting there thirty one u.s. special forces personnel and seven afghan soldiers have been killed in a helicopter crash in the eastern province the taliban has claimed responsibility for the incident that marks the biggest single loss of life for american forces in the country were from or near some joint live from washington medea benjamin she's co-founder of the antiwar organization code pink thanks very much indeed for being with us here on our team now the taliban has claimed responsibility for this latest incident last month and also killed the brother of the afghan president so if there is still this deadly should the u.s. really be withdrawing its forces from the country in the near future. well i wou

and on the european union as a major financial markets as major areas of safety to keep your goal argentina for example my company has always cold in the vaults of the federal reserve bank of new york now if this would start a run on keeping gold in america in the european union and in the u.k. and switzerland this might have a much more dire consequences than mr travers imagines because if we go back in history in two thousand and two and november to be exact so then hussein uses billion dollars per annum. for food and medicine agreement after the first gulf war to just to buy to sell oil well he instead of the dollars urals and that could create a run on the dollar has normally been the major currency you want to buy some of that was. really just to clarify this is the movement all of this their knowledge of gold enough to reiterate the market. as i was saying it is if it creates a run on the gold market and what's the point i want to sort of very much stress he said when iraq that in some thousand to. we all remember that in march two thousand and three saddam hussein ran into a google o

in may, japan decided to start negotiations with the european union. japan is behind korea in the push for global trade zones. south korea started in july. a south korea-u.s. free trade agreement was conducted last year. the japanese government is now under heavy pressure from the business community to accelerate its free trades initiative. earlier, we spoke with hiro hiromisa about india. >> first of all, what benefits will the epa bring to japan? >> well, as to the agreement, japan can get a foothold in the management. which double that of ten countries in asean. half of the population is a strong workforce. young india has new middle classes. and the country had an 8.3% growth rate over the past five years. the ruling congress body won the election two years ago. that gave another term in office. you could take this as another sign that an administration wants to encourage economic growth. the epa is going to make it easier for japanese auto companies to export parts and build vehicles in india. japan's automobile makers are using technology to help

the chancellor was in zagreb to talk matters of the european union. events in libya were also on the agenda. pledged her support for the country's new leaders -- she pledged her support for the country's new leaders. >> it is important to divert money from the gaddafi regime to this task. i hope that the path to democracy will be peaceful. >> the foreign minister promised to help libya develop its civil institutions and pledged humanitarian aid, depending germany's decision not to send soldiers into a fight against gaddafi. >> the fact that we decided against sending our own soldiers to take part in the combat operations had never been confused with neutrality. we are among the countries that tarted sanctions and pressed for targeted sanctions and isolation of gaddafi from the beginning. >> the cost is message from the foreign ministry is that it is too early -- cautious message from the foreign ministry is that it is too early to say. >> president barack obama has promised that the u.s. will be a friend to libya as it begin the transition. speaking f

start, he said, yes, we have o roots in the islamic movement, but we're committed to join the european unionrankly all the changes, the unthinkable changes that have occurred with respect to the military/civilian balance have been done reference t referencee european now. now it's looking less and less likely. nonetheless, mr. erdogan will want to undertake the changes, if he can change the constitution reference t with ro the european union. the difference who are looking at turkey as their own model, the traditional islamist movements that have been excluded from the political process, what they see in turkey is mr. erdogan leading his party and turkey to a new balance between the commitment to traditional islamic values and a relationship with the west. and mr. ergan has a vision of leading, becoming a leader of the middle east, as an example to these countries, and yet retaining the links to the u.s. and europe, and in effect saying, if you want to have better relationships with this part of the world, frankly, you have to go through me. >> rose: are there changes,reces relationship to i