we have a european union level which is based on funding from the european union budget and is administered by the european commission. we have arrangements for the pooling of national monies in the form of the european development fund which come from 28 different streams and where the european commission is a kind of service provider to coordinate it. and then you have 28 or not in every single case, national development policies. now, calculations vary as to how much misallocation of resources follows from this. we have done our own analysis of this, which suggests that simply a better programming of these three different layers, not necessarily any kind of further pooling of sovereignty, but a better coordination would result in savings of about 800 million euros per year. there are some other calculations in the market that suggest that if there were to be a pooling of those policies, that we could be talking about towards 10 billion euros. now, this kind of work brought together from the different committees sometimes on specific legislative proposals, sometimes on general areas where

yes, he is talking about the entire european union, but in some ways, the rest of the european union's are tied to the germans. it is a clear message to the germans, loosen up a bit. [laughter] >> i think that is probably a decent message. interesting how it is being delivered. hans nichols, thank you very much indeed. up next, a bloomberg exclusive. as tensions in eastern europe grow, we will be live with the head of the national bank of georgia. ♪ >> welcome back. you are watching "the pulse." we are live from london right here on bloomberg tv. let's go to the ukraine. aregovernment in kiev createand accusations to cease-fire negotiations. we sent ryan chilcote to the front lines. he reports from what is effectively a new frontline in ukraine. >> you could forgive the soldiers outside this town in eastern ukraine for failing to be friendly. last time strangers made an appearance, the locals say they came with 100 tanks. this frontline city was saved by the cease-fire. is in the industrial heartland of ukraine and this is steel country. is owned bylant ukraine's richest man. more than

both groups would want an independent scotland to be in the european union. it doesn't move people because scotland, despite being slightly more pro european, more europe friendly than the english, so the proportion that ones for britain to leave the european union is much lower in scotland than it is in england, but there is not the kind of passion about europe and scotland either. as you can see, over 50% of scots -- that's the blue and red over here -- in 2014, over 50% say either scotland should leave -- sorry, britain should leave the eu or it should remain in the eu but the competences of the euro should be reduced. we want to retransfer power back to the member states. that's not europe loving if over 50% want reduction of the eu's powers, what that says for scotland, the majority of scots yes want to be in the european union, yes and no voters both want to stay in the european union by and large but they want to do this for pragmatic reasons. because they see that's good. it is not because of some inherent passion for europe which sometimes, especially

the majority of scots want to be in the european union. but they want to do it for pragmatic reasons. sometimes, especially continental media try to portray scotland, but that is clearly not the case. a similar issue that has gotten traction is the better together strategy in the tv no said we would not be able to use the pound. those two things are about as far away from each other as possible. what currency do you think scotland would use if it became independent? 80% say they would like the pound. 15% think they would get to use the pound. you think they would like it and cannot get it would more likely to vote no but a are not. people are not moving on this issue very much. the core reason is they simply do not believe either side. the majority of people think that george osburn and the no side want the negotiations are her words they also do not believe alex hammond. people are not acting on things that they think are completely uncertain. that is why this has not moved people when the interventions were made. nuclear weapons, the oth

ukraine and the european union ratify a landmark pact that sparked the country's crisis. we will talk to our correspondent in brussels. >> the french prime minister faces a crucial parliamentary vote of confidence. >> the world health organization warns ebola cases in west africa could start doubling every three weeks. but we want to begin in ukraine, which has its sights set firmly on the west erie of the country's parliament has ratified and association agreement with the european union in what lawmakers are calling an historic moment. >> keep in mind that their refusal to sign this last year is was sparked the unrest in the country. the eu, for its part, has welcomed ukraine with open arms tom i easily passing a deal as well. >> signed and sealed, he held of the document in kiev. minutes later the president of the european parliament signed the same treaty in stroudsburg. earlier the president appealed to ukrainian lawmakers to support the agreement, while people in stroudsburg listened in through a video link. it passed easily on both sides. 127 voted against. more th

remember, scotland is in the european union now as part of the eunt kingdom.t is-d united kingdom. a substate of an existing member state wants to stay in the union but as an independent state. that's new stuff. it requires imaginative thinking, a smooth transition, as smooth as possible so that the scottish people who are eu citizens right now, can continue to be eu citizens beyond the statehood day in 2016. that's extremely important. and i think there are ways within the treaty on the european union to actually negotiate that favorably. i'll just say this, too. there's a political thing here going on too. a lot of these european leaders look at separativity moves in their own countries and get nervous about it. the difference is here the british government has sanctioned this referendum. it is a referendum that legally has been approved, as a referendum. whereas, that has not taken place in any of the other countries. so this can be sort of a unique situation. >> to that point professor, and maybe i'll put this to you professor king. with the benefit of hin

presented here have been used by the different candidates in the debate about the future of the european union it's true that they have been voted and supported by the european parliament. he is making a lot of points and a lot of activity which is quite in parallel to what the parliament elaborated. building up the defense and also defense. we can see that between the different institutions, this is also providing a possibility to come to a common idea. between the commission, the parliament and equally the concert and the member states. that's one still of the unfulfilled promises in the lisbon treaty. in article 17 of the lisbon treaty, you have an important sentence that reads that the european commission initiates the annual programming of the union. the commission should initiate what should be done in the year to come and in the years to come, but it continues with the view to reach interinstitutional agreement. we have that and the european commission to come to a common understanding about the legislative agenda. that is something where this product could be very helpful. there is an

what would be the position in the european union?they've not been able to provide a single credible answer. >> does the prime minister agree with me that one, it is accepted to hold an opinion, it is not acceptable to promote boycotts of goods produced in israel are kosher goods and bits of policy of -- with judaism and also in turn anti-semitism. what reassurance can the prime minister get my constituents that this government will address boycotts and anti-semitism and united kingdom? >> we have been very clear that we don't support boycotts and we don't support measures that are intended to delegitimize the state of israel which has a right to exist. we argue has a right to piece within its proper borders. and i do think he makes an important point, which is wished absent a clear that you can criticize israel and israeli government for its actions without being anti-semitic. but what we've seen in recent weeks is a rise in anti-semitic attacks in the country but as i said on monday that is completely unacceptable. >> could i refer

both groups would want an independent scotland to be in the european union. nd it doesn't move people because scotland, despite being slightly more pro european, more europe friendly than the english, so the proportion that ones for britain to leave the european union is much lower in scotland than it is in england, but there is not the kind of passion about europe and scotland either. as you can see, over 50% of scots -- that's the blue and red over here -- in 2014, over 50% say either scotland should leave -- sorry, britain should leave the eu or it should remain in the eu but the competences of the euro should be reduced. we want to retransfer power back to the member states. that's not europe loving if over 50% want reduction of the eu's powers, what that says for scotland, the majority of scots yes want to be in the european union, yes and no voters both want to stay in the european union by and large but they want to do this for pragmatic reasons. because they see that's good. it is not because of some inherent passion for europe which sometimes, especia

into the negotiating period of a yes-no vote on the referendum, if that happens thursday, the european union will see it's to its benefit to have scotland remain. scotland is in the european now as part of the united kingdom. it's a very unique situation that the european union has never confronted before, where a sub state of an existing member state wants to stay in the union but as an independent nation. that's new stuff. i think it requires some imaginative thinking which can be done with respect to how you negotiate this with brussels so that you have a smooth transition, as smooth as possible so that the scottish people, who are e.u. citizens right now can continue to be e.u. citizens beyond the state hood day in 2016. that's extremely important, and i think there are ways within the treaty on the european union to actually negotiate that favorably. i'll just say this, too, there's a political thing going on here, too. european leaders look at other separatist movements in other countries and get nervous about this. the difference between this and those situations is that here the brit

i doesn't mean the membership of the european union, but it brings ukraine much closer to the europeannion and symbolically, economically for ukraine, it is a very important move. >> we're seeing lots of applause here within the european parliament, and it is an important moment because this deal is what sparked the whole crisis in the first place. >> it did. this is exactly the agreement that president yanukovych refused to sign under quite a lot of european pressure. this is something russia was quite unhappy with, still unhappy with, the implementation of this agreement is postponed, even though ukraine will have some unilateral trade preferences going on from the moment of signing. but the important thing also coming from the european commissioner was that this is the treaty where not a single letter will be changed. the only change that can be done will be by new parliament. >> ukrainian prime minister there as well. >> ukrainian prime minister, ukrainian president, who made a point in his speech -- >> shaking hands with everyone to congratulate people on the passing of this. >> i

what would be the position in the european union?they've not been able to provide a single credible answer. >> does the prime minister agree with me that one, it is accepted to hold an opinion, it is not acceptable to promote boycotts of goods produced in israel are kosher goods and bits of policy of -- with judaism and also in turn anti-semitism. what reassurance can the prime minister get my constituents that this government will address boycotts and anti-semitism and united kingdom? >> we have been very clear that we don't support boycotts and we don't support measures that are intended to delegitimize the state of israel which has a right to exist. we argue has a right to piece within its proper borders. and i do think he makes an important point, which is wished absent a clear that you can criticize israel and israeli government for its actions without being anti-semitic. but what we've seen in recent weeks is a rise in anti-semitic attacks in the country but as i said on monday that is completely unacceptable. >> could i refer

if european union starts to decline with losing very important part of the union as scotland tomorrow and the uk in 2017. it would be a real problem for the future of our european integration. >> do you think if we see the independence campaign win here, we see a new independent scotland, that could give inspiration to other independent governments in europe as well? >> of course. it would be the way to strengthen other independent movement. we are -- we have some of the discussion following what was going on in scotland. of course, there's the problem of catalonia. the problem of of part of central and eastern europe. i think it would be a really big problem for future. we need to have a european union focused on growth, how to be more competitive not focussing on institutional disasters as the independence will bring. >> former italian prime minister, thank you for joining us here on "gmt." david there you have it, another voice added to no campaign. there are voices on both sides of the divide. those voting yes say they believe firmly scotland can be stronger and more prosperous wh

they are taking place just around the corner in the european union mission. and he said he thought they were on track for some sort of deal in november. he referred to the threat of isil and talked about extremist groups too in his speech. this is what he had to say. >> translator: extremism is a global issue. certain states have helped in creating it, and now are failing to withstand it. currently our peoples are paying the price. today's anti-westernism is the offspring of yesterday's colonialism. today's anti-westernism is a reaction to yesterday's racism. certain intelligence agencies have put blades in the hands of mad men who now spare no one. all of those who have played a role in founding and supporting these terror groups must acknowledge their errors which have lead to extremism. they need to apologize, not only to the past generations, but also to the next generation. >> reporter: while these speeches are so important, and the iranian president putting his case forward and robert -- >> >> reporter: many syrians feel the government will be able to b

a strong european union. is very clear that scottish exit weakens that strong britain and british exit from the european union would weaken that strong european union. for nato, i think, contrary to what has been said, this is less about the nuclear deterrent than about demonstrating weakness and disunity at a critical point in nato's history in the face of a newly resurgent threat from russia. if you look at the nato summit last week and the president cause trip to estonia, you see a very strong urge to assert nato unity, assert nato strength in the face of the russian threat. the whole idea of one of its members, key members breaking up, and the type of government that was described taking over in scotland and all of the difficult negotiations over nato, does not really appealed to the united states at this critical moment in dealing with russia. i think the third reason that the u.s. would be against this is the question of precedent. as fiona mentioned, the leader of crimea has already mentioned scottish

>> it is very significant for the ukrainian european union. you can see, the deal was ratified simultaneously, and ukrainian parliament and the european parliament in strasbourg. this marks the completion of months of negotiation. the celebrations are being overshadowed by the last the development, basically last friday when the ukrainians russians, and europeans met in brussels, it was decided the economic chapter of the free trade agreement would be delayed until next year early 2016. this is regarded as a major concession to russia. we know they had blocked resisted ukraine's move away from its sphere of influence closer to the european union. but in brussels and strasburg, europeans are adamant that this does not put the deal into question, that a deal would be fully implemented at the end of next year. rather they are trying to listen to russia's claims to see how they can assuage these claims. >> so it has not watered down the packed significantly, is that what you are saying? >> we will have to wait until next year. the political chapter

in every conversation we have had about turkey and the european union, you expressed of the waysat oneat participation in the european union would be positive is that turkey could be a bridge to the islamic world. where do you stand on that? between thessary and and the islamic world somehow stop the kind of conflict we are seeing now take place? world, especially turkey's desire to be part of europe stems from this fact because of turkey becomes part of the european union, this would have meant that relations between the eu and the islamic world would be carried out in a much better way. have seen this expectation on part of the islamic countries whenever we have spoken with them. unfortunately, the eu is still engaged in delay tactics and this is sad to see for us. are on the rise hoping that efforts on the part of the presidencies and on the part of friends of turkey would be important trying to ensure that the channels for negotiation work opened and closed in the coming year so that turkey becomes a member of the eu and has the same responsibility of bridging the gap between the i

they want countries and the european union, nato countries, -- pend 12% of their gdp >> to share the burden. >> within the european states the only ones are ukraine -- are the u.k. and france. it may drop to two percent in the not-too-distant huger ominous but the fact that cameron is calling -- not-too-distant future, despite the fact that cameron is calling for them to do this. the ruble was negligibly down. i think the ruble is an interesting story. i am not sure where we are. the ruble had a terrible week. >> dirty 7.11. >> it strengthened just a tad. 37.11. last week.e closed it was its worst week. it was down three percent. it was at a record low. it was down more than 10% this year. that's a big issue. that's a big issue for inflation. in addition to the food import bans. that is something the russian government has to be worried about. , theit comes to the market russian stock market, last week the russian stock market lost dust over three percent. most of the losses have been , those by the sanctions having more trouble getting access to markets. it hasn't been the blood bath

the uk will be more inclined to withdraw from the european union. i don't think that that's a good thing for england, i don't think it's a good thing for the european union. it just has this domino effect. >> how did it get here? >> look, it's emotion. if you are up there in scotland. this is really emotional. and what's interesting in the few soundbites you had, the pro-independence people are very emotional. we want our freedom, we want our liberty. we're all bravehearts. fine, that's emotion. people on the other side saying, folks, this is a disaster. i mean, it is a disaster. i don't know how much of a disaster it would be if they do it, but listen, take a step back. and if you listen to the two sides. one's on reason, here's what's going to happen. you have nobody of real credibility outside of scotland and most of the people inside of scotland are opposed to it. no one from the outside is saying this is a good thing. so you need to listen to collective wisdom in this case and the fact that collective wisdom says -- >> you were coming here and

nonetheless, what we can do is reflect on the european union's situation, because in strasburg for uss morris, where, of course, the european parliament has now ratified the association agreement. what does that actually amount to? we hear the implementation of the deal is put back some 15 months anyway. >> the implementation of part of it is put back, but i think symbolically, it is a big moment. i was in lithuania nearly a year ago when former ukrainian president yanukovych was supposed to originally sign this association agreement. it department happen. he got cold feet. and that obviously set off the chain of events which led to his down fall and subsequently the russian annexation of crimea and russian military involvement in eastern ukraine, so the fact that we finally got to this moment where this was this live televised link-up between the ukrainian parliament and the european parliament ratified at both ends by both parliaments. i think that means something symbolically. yes, there are people here in strasburg who said very clearly they weren't that happy with the delay in th

the european union is pressing ahead with new sanctions against rush. they're coming due to target on monday. including units of that will make more difficult for russian firms to raise money from western markets. they'll tighten measures imposed in july targeting more individuals with travel bans and asset freezes. russia has banned food items from the e.u. u.s. and norway, and will respond to sanctions that might cut off its air space to western carriers. peter sharp is in moscow with more. >> reporter: well, there is no doubt that russia will retaliate proportionately to any sanctions introduced by the e.u. on monday and tuesday. prime minister said as much over the weekend. i think there is a feeling amongst many russians that i spoke to over the weekend that really the country is damned if it does, damned if it doesn't. it has brokered successfully a cease-fire that is not perfect but is holding. in response to that the e.u. goes head and hits them with more sanctions. i feel like ththe people feel like it is unfair. especially closing russian air

and of course the european union could retaliate by preventing russia from using european airspace, which could be a death sentence. >> so perhaps a continuation of the trade war we have seen going there. thank you so much for the inside. >> with the back and forth over sanctions and possible counter sanctions between the west and russia continuing, ukrainian president petro poroshenko visited the flashpoint town of mariupol, which we saw earlier. simon, before we came on air, there was a report from the kremlin saying that russian and ukrainian leaders spoke on the phone. any confirmation that this actually took place? >> we have heard confirmation, but not much details about what the two leaders may have said. there are scant details from the kremlin side as well. their announcement just said that the two leaders will continue to stay in touch, to work out the details, the steps that could eventually bring peace. this is not the first of the contacts between russia and ukraine in recent weeks. the two presidents have had contacts either directly or through their representatives. but it

the european union approved a on russia.sanctions only to postpone it.hey will hold them for a few days. a cease-fire by both sides carry on fighting. there is only one man to explain the situation. >> the european union has always said it is possible they might introduce sanctions and immediately suspend them. when you look at the way this actually happened, the fact that the sanctions were agreed on last nightnd even there was a meeting of eu ambassadors suggest disagreement , we know that one of the countries that disagreed with the idea of the cease-fire is finland. very concerned about the prospect of counter sanctions, retaliatory action from the kremlin. finland owns 56% of sin air. 50% -- was one -- owns 56% of finnair. finland was one of the big losers when russia threaten to ban airspace. it might just be this is a case where it was fear of retaliation that had some of the eu countries saying, let's see how the cease-fire works out. >> let's talk about a cease-fire. as soon as the cease-fire was agreed i think a more cynical is this going to la

. >> i -- mean to raise a question of membership in the european union, so much, as the role in the region that turkey can play today. because there is great conflict in the region today. and what it is that you see and hope turkey can do because it is powerful. it has a strong military. it has influence. in the islamic world. >> political military, social diplomatic responsibilities that turkey may take upon itself are all very important. turkey has the capacity to conduct any of those tasks. we would be, we have the capacity to do this. and we have done so in the past. and we continue to do so. and we will continue to do it in the future. turkey has institutionalized itself in other words with the eu institutions and mechanisms so we have many of those mechanisms in place. an many eu member states have not all been able to complete some of the institutionalization work that we have carried out in turkey. and we have achieved all this. and i hope that in the future this process will go on. much more swiftly and we achieve our goal. because we have a role in the alliance of civi

charlie already mentioned a independent scotland would like to be part of the european union, a key part of snps sales pitch to the country. scotland actually likes to think it is more pro-european than rest of the u.k. that wasn't necessarily always the case but that is part of the sales pitch at the moment. opinion polls sometimes some polls show that is true, some polls show that is not true but it is a very much a core part for the platform of the snp. small independent, country but still part after bigger broader world that the e.u. allows us to be. it is very important to them because it is crucial for trade relations under an independent scotland. just the idea that business as usual can carry on even if we take a big risk voting yes, lots of things carry on as normal. however it is not necessarily majorly clear that scotland could become a member of the e.u. it would reach most of the qualifications of course. but there are three big potential obstacles. the first is like the spanish yes question. there are other countries in the e.u. might object. spain is one most likely to hav

trying to keep europe together and try to dissuade, especially britain from leaving the european union. that referendum will take place very soon. we haven't gotten any reaction from the german government yet. but martin schultz has reacted, the president of the european parliament. he says he's not going to make any sort of denying of the fact that he did breathe a sigh of relief when the results came through. and the first thing he's going to tell prime minister cameron is that he hopes that a united britain will remain a strong partner and remain a member of the european union. therefore on the one hand, it's the sigh of relief that many politicians here in europe, not the least of which are the germans. there are secessionists across europe as well. the borders remaining in tact, that's the keystone of european politics for the better half of the last half century. but they're still worried about what might come with that referendum on britain joining or leaving the eu not too far away. >> there's that but other countries, spain, which faces its own separatist desires from not just

weakens the european union.r nato, i think that, contrary to what has been said, this is less about the nuclear deterrent than about demonstrating weakness and disunity at a in nato's history in the face of a newly resurgent threat from russia. if you look at the nato summit last week and the president's trip to estonia, ec a strong see ao assert -- you strong urge to assert nato strength in the face of the russian threat. of one of its members, a key member, breaking up. and then the type of government that was described taking over in scotland and all of the difficult negotiations over nato. that does not really appealed to the united states at this critical moment in dealing with russia. i think that -- while i will get to that a little bit later. i think that the third reason that the u.s. would be against this is the question of precedent. fiona mentioned, the leader of the crimea has already mentioned scottish independence as a precedent for what he would like to do. we have also heard expressions of this

there have been some signs of warning from the european union going forward. ere a lot of european countries who have their own secessionist movements. every once in a while you have the bavarians who say they might want to leave the german federation. that's something that keeps coming up again and again. so there were these warning shots saying if you do this, there is no guarantee that you will be take be into the european union if indeed there is a vote to get out of great britain. so a lot of these european politicians are going to be breathing a sigh of relief because now they don't have to deal with that precedent. it is something that would have been very, very difficult legally and politically as well. as i said, there are a lot of countries that would have been very opposed to scotland joining the european union. then there is the big issue about the currency. could the scots get into the euro zone. so there would be a lot of questions that now don't have to be answered. so i pretty much take it angela merkle and a lot of other european politicians wi

we believe these are crucial efforts on the part of the european union and the united states. let me once again welcome president obama to estonia, to of europe'sope, one most prosperous and successful regions. our country's share values and interests and i'm certain that we can and will contribute to free andn of a europe at peace. thank you. i want to thank you and the people of estonia for welcoming me here today. it is a great honor to be in estonia as we mark our 10th anniversary is nato allies. thank you for being such an outstanding partner. i was proud to welcome you to the white house last year. we spoke about the situation in ukraine. your life reflects the story of your nation. the son of refugees to return to help chart a path for a free and democratic estonia. as many of you know, that long journey also took thomas and his family to america, to new jersey. it was wonderful to meet your daughter today and find out she had gone back to new jersey as well. he said he knew bruce springsteen before he had his first record. you embody the deep ties between americans and

estonia, greece, and britain in the european union, and america, four out of 28. we have stayed above 2% even at a time when we have one of the biggest budget deficits anywhere in the world. i think that is important. i think it is worth looking at what the declaration says pretty what is remarkable is there has always been the 2% pledge in nato, but it has never been set out as clearly as this. it is very clear what has been signed up to. it makes a differentiation. it says those meeting 2% should aim to continue. some year after year have not been spending 2%. it says allies whose current proportion of gdp spent is below on this level will default any aim toward [indiscernible] an aim to move toward the 2% within a decade. i would argue there's a lot that has been achieved. proper training missions that will go to countries like jordan and georgia and iraq. here an important breakthrough in terms of getting other countries to bear the burden britain and others have been bearing. we will set our budget at the time of the next election. i am proud of the fact that

coming out of the european union? ? thoughts >> well, i believe it would be extremely damaging to the united kingdom to leave the european union. undoubtedly the migration issue in a whole range of countries from france to denmarking right across europe, migration plays a part because people automatically link migration, free movement in europe, to the european union itself. in fact, a lot of that antagonism is misplaced and misinformation is behind many of the approaches that are taken to the migration issue. for example, in one recent ll, the average brit concluded that 30% of the british population currently was born outside the united kingdom. the total is exaggerated. it is three times greater than it actually is. this subject of migration has of myths ubject exaggeration. that needs to be addressed. on the broader issue of britain and europe, i hope there is no eal prospect at the end of the day that britain could leave, but at the moment the polls are very dangerous and it is interesting to note that the polls ar

i associate myself to the statement to be made by the european union.uxembourg shares the deep concern and the exponential spread of ebola. this is not a simple humanitarian crisis, but, rather, a multinational one, which threatens institutions, societies and the economies of countries stricken by the epidemic. and west africa as a whole. as a response, we need a general organization of the international community. resolution 2177 which we have just adopted, as an initiative of the united states, which luxembourg had the honor of co-sponsoring, conveys the commitment of the security council to counter this to peace and security. to better put a halt to the epidemic, we must use all means, public and private, civilian and military, at our disposal. in our view, the united nations have a key role to play to coordinate this world effort. it is here that the united nations mission, for the emergency response to the ebola epidemic which has just been announced by the secretary-general has its role to play. we fully support the launching of this mission, as q

>> exactly, especially within the european union. you can see that many countries which are small- and immediat medium-sized countries are doing well, so what. >> they have their own defense, their own currency as the scots discovered when the whole debate in the exercise if they were going to pull away from the rest of great britain, and one of the great determining factors in the no-vote was the fact that there was uncertainty over the kind of currency they were going to have, as to how they could defend their own borders and so on. >> exactly. if yo we want to become a country we have to take into consideration these issues. but we're already using the euro. this is something that we can decides on our serves. >> and you would have to renegotiate entry into every international constitution. >> if we talk, for instance, about the european union, i'm sure we would find a way to be part of europe. to take into account the gdp. i'm sure we'll find a way of catalonia to be part of the european union. >> this move of yours at the moment

the liability and exposure of lack of control such a union would levy on the european taxpayer makes it an obvious nonnegotiable position for the u.k. government. all of the major local parties and westminster have made it clear that sharing the pound will not happen. that is why we wanted to see what the scottish government alternative land would be. the absence of certainty for such a fundamental component of a commercial environment makes it extremely difficult for businesses to plan. this leads me onto questions around eu membership. it is already clear that as a new state, scotland would have to leave and then reapply to join the eu. it would have to negotiate terms of membership which would require the agreement from all 28 member states. to achieve these may well mean considering, if not signing up, for the euro which would in turn create a border between england and scotland, and northern ireland, hampering trade between countries. the question is whether all of this negotiation would match the favorable terms already established by the u.k. however, it is clear that scottish

in the european union, there is no such thing. they can abide by a voluntary code of conduct or not. >> the e.u. is a big player. the fact that it's lagging behind on an issue about reputation of companies, transparent supply chains, is disappointing. >> reporter: there's a most to change the situation. american computer maker intel is promising a conflict-free supply chain by 2016. in amsterdam, a company is working towards the first mobile phone. fair phone started as a lobbying group, making people aware of where their gadgets are from. now it makes phones. >> it's important. it's something we use every day. everyone has a phone in their pocket, sometimes two or three. a lot of people don't know 30 different kind of minerals are used to produce the phone, it comes from all over the world, and from places where there's a high risk of conflict. >> europe is now a target for a worldwide movement to stop the trade in conflict metals. the first part is letting the 500 million consumers know how much suffering has gone on to make the

the european union has failed to adequately respond to russia's flagrant aggression in ukraine, not even stopping the imminent deliver early of assault ships to russia. doesn't the nato summit need to offer stronger symbol and those amphibious assault vehicles to nato and not russia? >> that is an interesting suggestion which i can take on board. it is not easy to get 28 countries around the table to agree on sanctions and try to do that at the same time as the united states of america. but by and large in the recent weeks and months, that is what we have done. while of course i want sanctions to go further and have a greater effect, they have had an effect and are bringing pressure to bear. we need to signal not to let more russians appear that would accept or give up, but turned the ratchet and russia would suffer permanently from increasing economic isolation that follows. >> the prime minister will be aware a number of individuals, including two for my own constituency have traveled to join the fight with isis. how was the young man able to obtain a u.k. passport using commercial mea

even now, the united states is a power, the european union is a power.n't mean if there are multitudes of powers, of centers of power, their progress can be realized through the destruction or the weakening of one another. the solution for mutual progress is for countries to collaborate and cooperate and seek to obtain the mutual objective for the progress of not only one another but for the region as a whole. therefore sure, someone could interpret it as iran speaking a regional hegemony that other countries are seeking that regional hegemony. we never thought regional hegemony. we're not seeking nor will we ever. in the past 200 years of our nation we've never attacked or invaded another country. there were countries who were born in an extremely weak analysis next to our borders.wed them, we collaborated with them, next to them. but you saw after the downfall of the soviet union, quite a few small countries to the northern border of our country came into being in existence. we recognize the legitimacy, we've helped and assisted them. we collaborated w

we should strengthen the strategic partnership between the european union and nato. we share 22 members. we share a positive vision of a europe whole, free and at peace. but we also share difficult neighborhoods. so we should work even more closely together to deal with those threats and to project stability. by bringing new members into nato and the european union, we have spread peace, prosperity and progress across the continent. we made clear in wales that we are actively supporting our partners in europe to choose their own path. we will keep nato's door open for new members. we continue to help partners to walk through that door if they so wish and if they make the necessary reforms. and no third country can have a veto. our shared vision of a europe whole, free and at peace cannot be complete without the integration of the western balkans. montenegro could be an important next step. that's why our door must, and will stay open. the united states and europe are core partners and allies. but this is not an exclusive club. we should continue to reach out to like-

case on the terrorists for both the european union and for the united states if the p.k. is receiving weapons from the germans then i think we are about to repeat a major mistake of arming once again the wrong side here in the u.k. fears have been growing since soldier lee rigby was slaughtered in london now with the beheading of an american journalist suspected. and revelations that one of these lawmakers he financier's was the director of them. muslim school in the city of birmingham brought so want to feel safe and they want the government to take drastic measures it is appalling that people who declare that allegiance elsewhere are able to return to the united kingdom and pose a threat to our national security we're clear in principle that what we need is a targeted discretionary power to allow us to exclude british nationals from the u.k. cameron spline tearing up passports from door nationals and battle fighters from returning home from foreign conflicts according to you gov two thirds of british people support taking away citizenship from known radicals although it