the euro when the euro you're lying as i know you don't. want to hear injured garrick jump in there go ahead ken. well the big to me the big lesson of this is not just the economic classes the political lesson which is that the periphery of europe has now learned that they can milk the european court for money for years and years and years and we can expect that to continue happening as long as the voters of germany and france allow it ok so if you want to go there and do it i'm honestly if this is the same online that's a first affectively time has been called i mean this is what the latest statements from the e.u. are out there saying greece we're going to give you a last chance do you want to take it yes or no calling time on this but my only point first is that is that it should really be a tide out because greece itself you can see this from the demonstrations and the problems in greece there is a democratic deficit in greece itself there's a lot of that the nation will increase itself and it's greece that should have to face up to wha

can cross out the prospects for the euro i'm joined by vanessa rossi in london she's an associate fellow in international economics at chapman house also in london we have robert oulds he is director of the bruges group and in washington we go to gary jones he's an economics professor with the market to center at george mason university her right this is crosstalk and that means crosstalk rules in effect that means you can jump in anytime you want but before let's look at a report about a country that may bring the eurozone to the brink of collapse. the eurozone is facing a crisis in which few can predict its outcome as financial markets and leading banks grapple with the greek debt debacle there are serious questions about the viability of the euro as a currency and whether greek default will strike a critical blow to the small metairie experiment. overburdened with crushing debts greece is fighting for its financial and political life as lawmakers defend the unpopular us tara to measures meanwhile the european union the european central bank and the i.m.f. say these measures are the on

a low key and welcome to crossfire i'm peter lavelle the euro and it's meeting with destiny the greek government survives a vote of confidence as its crushing debt ordeal continues unabated but this appears to settle little if anything the u. still has to decide whether it will continue to rescue greece from crisis is god's mount whether the euro project has a future. kick. in crosstalk the prospects for the euro i'm joined by vanessa rossi in london she's an associate fellow in international economics at chapman house also in london we have robert oulds he is director of the bruges group and in washington we go to garrett jones he's an economics professor with a mccotter center at george mason university all right this is crosstalk and that means crosstalk rules in effect that means you can jump in anytime you want but before let's look at a report about a country that may bring the eurozone to the brink of collapse. the eurozone is facing a crisis in which few can predict its outcome as financial markets and leading banks grapple with the greek debt debacle there are serious questio

project need a serious rethink should there be a two tier euro system and can the politics of the euro serve the interest of all in this currency zone. crossed out the year was by ability i'm joined by andrew moravcsik in princeton he's professor of politics and director of european union program at princeton university in washington we go to shares are raymond she's a professor of international business finance and international affairs at the george washington university and in madrid we cross to philip he is an associate professor and king juan carlos university he's also author of the tragedy of the euro ok folks this is cross talk that means you can jump in anytime you want and i very much encourage it but first let's look at a short report on the plight of the euro. the trials and tribulations of a currency or the euro and his discontents no matter how you cut it or count there are no easy solutions when it comes to resolving the euro crisis the financial costs are higher long term and the political costs are probably even higher ever since greece exposed the weakness of the enti

did not want to join the euro they were going to. let me ask you a question let me ask you a question because i think you bring up an interesting point here is that you know if we go through if there is contagion out there there's more hazard out there it's really the people that pay it's not governments it's i'm sorry it's not central banks it's not private banks they're going to pull through this pretty well at the end of the day but it's populations of those countries won't. well the european central bank has bought up a lot of greek debt by other banks so they will pay but yes it will be then the ordinary population that will pay they paid when the euro was introduced to lead to higher prices in their shops that was deeply unpopular in greece and it's now helping to create a very deep bust within the greek economy so that it is no ordinary people of greece that are paying for something which they never actually asked for where the political elites of you've got together decided that it would be a nice idea to have a common say bu

really short break we'll continue our discussion on greece and the euro stay with arkie. ok. if you. twenty years ago the largest country. so to. speak and enjoy. where did it take the. wealthy british science. markets. can find out what's really happening to the global economy for no holds barred look at the global financial headlines tune in to cause a report on our g. q. welcome back and rostock i'm futile about your mind you were talking about the euro and its future. ok gary i'd like to go to you in washington and a lot of the dissenters of what's going on in decision making with the euro and with greece is that they claim that bailouts are not for great greece and not for its but federal budgets and whatnot it's to bail out banks in greece that have a lot of exposure are arms are german banks have a lot of exposure french banks etc in greece this is what the bailout is all about to save banks not necessarily a country's economy how do you sir how do you see that. there's something to that but it's greek banks that are most on the hook here and i think greek depositors w

question is that so much of the taxpayers' money i mean it was never really you know it's the euro and it's a meeting with the greek government survives a vote of confidence as its crushing debt or deal continues unabated. more than a month. one of the most extreme environments on the plumbers this is and people have to be aware that they are far away from civilization sean combs discovers. so special and attractive for many wildlife in antarctica. and the sun to. extradition to the bottom of your. welcome back to what you are t. here is a look at the top stories japanese authorities are launching massive radiation check ups in the fukushima area three months after the nuclear disaster that's made public anger with the government's late response to the leaks and lack of transparency. germany is under pressure to lock up in a tourist nazi officer who's been convicted of war crimes but remains a large claws escaped from a dutch prison over half a century ago and found shelter in germany there's legislation for a man of his extradition. and a russian intelligence chief has been found guil

he's not necessarily a euro we have a crisis scene where you actually we have the i.c.c. in saying of course you go in our little you know we have a we have a crisis in greece which probably wouldn't be the crisis before anyway greece was in and out of crises before it. but we know it was made worse by you probably this is the boy we already said massively when they joined the euro and that ended the career he had on the depression if you don't use call right now i know that your friend here is comparing a carrot and when you go to you what is the euro zone learn from all of this here and you know i'm not going to pretend to be an expert in international economics always sees more money being poured into something i don't see real structural changes in the eurozone you know of course greece is this is only me why you need to my answer to the. other question our international going this is. of course first thing there but we come back because you asked me that question before and it's this sort of the versus orderly where now in a problem with greece never mind the other d

you know this is a dangerous the most dangerous of the euro that the euro produces this crisis through its incentives. in this crisis of in use for most and for those asian what's this that step forwards towards the center of government sent us from suppose to in brussels so this is. the problem that i don't i don't think it will come between with it's a good idea though it would be in any case justified to make german or french taxpayers pay for greek deficits or to bail out german banks. i think we could through you're with me in a moment a little bit ok go ahead gerry jump and go ahead this is the way this program works . i'm jumping at i mean i mean what did you expect you know you allowed greece to come into the big boys club on both sides you know of course we were not sure if they're going to behave fiscally are not and the greeks understood that they're playing with the big boys you know and they have to stand on their own this is an opportunity when they joined the euro twelve years ago for them to clean up their house and they chose to have an extended party instead and now t

well i think there's signs that other euro zone countries. taking medicines they all playing ball in whatever way they're not playing the same kind of game as greece unfortunately with greece i think there's an internal lots of internal problem about the way in which the public doesn't understand the issues has not how to properly explained english decisions are being made and this is just going to be a continuous festering sore even if the government now signs up to these fiscal measures will be back again in a few months time to demonstrations on the streets and uncertainty about whether a new greek. did not want to join the war they were going to. let me ask you a question let me ask you a question because i think you bring up an interesting point here is that you know if we go through if there is contagion out there there's more housing out there it's really the people that pay it's not governments it's i'm sorry it's not central banks it's not private banks they're going to pull through this pretty well at the end of the day but it's pop

the default was averted with 110 billion euro aid package from the euro and the imf. it was seen by too harsh with its conditions. there have been mass strikes and protests against the austerity program. now, the prime minister is grappling for support for another round of austerity measures and desperately needs cross parliamentary support. >> let us understand that we are responsible for the future of the country. it is up to us to change the situation and we are already changing the situation. that is our commitment. >> the finance ministers have clearly told greece they will not be receiving any money unless it makes further cuts and cells of state assets. without more flooding, greece will not be able to avoid default. >> now we know how the politicians got it wrong. now they are frantically tried to fix the problem by asking the greek public to swallow tax hikes, if you were social benefits. how much would the people take? 80% say they are unwilling to make any more sacrifices, especially young people. nearly half of all people in greece under the age of 35 cann

but few invest and euros you get more than lever and euros also stronger than dollars having said that i don't want to risk investing. what academics analyzing public opinion have found a common logic in decisions about the euro people polled don't care about wider

to devalue the euro against the dollar. all of the chinese looking at this now how worried are you so i think that the big the right way that's from my point of view to think about that the current station but for the euro dollar is from the point of view of the global imbalances. there has been after the financial crisis one of the key things that has happened is the dramatic reduction on the supply of the safe assets think about just how the two thousand and seven what had wonderful triple a mortgages so we had all kinds of mortgage backed securities which we are supposedly safe now what you have is if you have a long term government that which may not be perfect it has all kinds of issues with that but it's still safer than watching this can produce especially for the long term securities so what we're seeing is despite all the problems in the developed markets in europe and in the ass there is still so difficult to replicate this long term instruments it's a unique x. part that you asked me i sort of because there's an

they believe the euro . most people believe. the euro well to me and i think a lot of people are beginning to collapse around the. bailout billions of pounds of taxpayers' money especially from the germans. and i think the public. the leaders of the european union have presented. conditions in order for the country. unfortunately for greece. which are incredibly unpopular in the country and that presents a major challenge for the greek government right immediately after it has just been for shuffled the leaders are unanimously wrong again. maybe i'm wrong about greece from the very start she should never have been allowed to join the euro in the first place she wasn't suited to it they were wrong to buy time. and if the greek choose day except this package this time next year i'll be talking to you. so while leaders are extremely excited. most of the people in europe believe so and unfortunately for the european leaders the europeans believe that the end of the euro is near. well let's talk more on the commitment of leaders to h

. >> after so much bad news about the euro, a rare positive note. e.u. finance ministers have agreed on a bailout mechanism. more than 500 billion euros will be available for struggling states. >> today's agreement underlines the determination of euro zone countries to do all things necessary to guarantee the stability of the euro zone. >> good morning, minister is. >> this decision has no initial bearing on greece. they are under increasing pressure. ministers are holding off on a fresh injection of cash until after he implements new austerity measures. last year, the eu and the international monetary fund set aside 10 billion euros for greece, when and now athens needs money from that fund to stay solvent. they say they would not release the money until greece passes new austerity measures. >> support not only from the majority but many in the opposition in greece, like in portugal. it is a necessity. >> in addition, ministers are also working on a second bailout expected to be worth 120 billion euros. that bailout will be on the agenda when eu leaders

few invest in euros you get more than euros also stronger than dollars having said that i don't want to risk investing. but academics analyzing public opinion

could join those mourning the euro's economic. this is a funeral procession in the center of brussels where the european leaders are meeting to discuss the future of the greek debts and of the eurozone itself they believe the euro can be salvaged but most people including euro skeptics believe that it is impossible and there will be no resurrection of the euro to me and i think a lot of people are beginning to collapse around the. bailouts billions of pounds of taxpayers' money especially from the germans. and i think the public about enough of it and i think that the leaders of the european union have presented greece with conditions in order for the country to receive the remainder of its bailout unfortunately for greece they will have to take extreme measures which are incredibly unpopular in the country and that presents a major challenge for the greek government right immediately after it has just been for shuffled the leaders are you know mostly wrong again. they be wrong about greece from the very start she should never hav

important factors that make euro skeptic or euro file public opinion analysts keen to point out that further economic integration into europe doesn't just mean money and that people shouldn't only think about their pocketbook economics they have to take into account the freedom of movement of labor the freedom of service you know service these are all integrated any other so it's not only you know exchange of money or turks living. here all one thing everyone does agree on is the mess the eurozone is in whereas turkey's economy grew nine percent last year and over ten percent in the first quarter of this year europe especially southern europe has come to the point of catastrophe because of excessive borrowing greece has so far been the worst hit it sound others economic disasters have meant appeals for bailouts this makes it difficult for national governments to defend. personally pouring more money into the coffers of irresponsible or inefficient members within creasing tension in the economic mismanagement some forsee big problems ahead because army corp. based on a single currency

he was talking about the weaknesses in the in the euro but actually the euro has been strengthening against the u.s. dollar and you go to ask yourself why country or want to redefine what is it actually i think because it's a competition it's a race a battle between the dollar and the year they both say i have to fight to the bottom they both have a lot of very deep structural issues the u.s. is dealing with a moment in the the europeans are trying to deal with it in another way and so far q e three your q e two story. you already said that we're going to three are we going to throw out a fund manager to let you go to q e three but you know if you need to is the simplest way to try and solve some of the issues in the in the u.s. and be devalued the dollar against the euro now what we're seeing in peripheral europe is trying to devalued if you're against the bill. out of the chinese looking at this now how worried are you i think that the big right way to think about the current station and your dollar is from the point of view of the global imbalances . there has been after the financial cr

it's really interesting we were talking about the weaknesses in the in the euro but actually the euro has been strengthening against the u.s. dollar and you've got to ask yourself you know why a country or a want to redefine what is it actually i think because it's a competition is the right to vote of between the dollar and the year they both have to fight for the bottle they both have a lot of very deep structural issues the u.s. is dealing with them on my in the the europeans are trying to deal with it in another way and so far you chewey three your q e two story you know you had a cynic you think you already said we were going to free are we going to throw out a fund manager sort of political to carry through but you know q.e. two was the that was the simplest way to try and solve some of the issues in the in the u.s. and i don't see the value of the the dollar against the euro now what we're seeing in for a full europe is trying to devalue the euro against the dollar. all of the chinese looking at this you know how worried so i think that the big right way but from my point of vi

but few invest and euros you get more than lever and euros also stronger than dollars having said that i don't want to risk investing. what academics analyzing public opinion have found a common logic in decisions about the euro people polled don't care about wider economics but about their own personal finances. economy is actually beyond me you know an important fact that bad make euro skeptic or a euro fire the public opinion analysts a keen to point out that further economic integration into europe doesn't just mean money and that people should only think about their pocketbook economics they have what they can think of freedom of labor the freedom of service you know service these are all integrated in others so it's not only fans of many or turks near living near an adopting rural one thing everyone does agree on is the mess the eurozone is in whereas turkey's economy grew nine percent last year and over ten percent in the first quarter of this year europe especially southern europe has come to the point of catastrophe because of excessive borrowing greece has so far been the wor

euro 2012 is bringing us lots of benefits. >> euro 2012 is important. lots of tourists will come and bring money with them. >> they will ensure that western and tourists keep coming back. the city is offering special course for western ways. this hotel manager has already had a few hours of instruction. >> i want to gain certain qualifications. it is important to know more about the mentality of foreign guests. this hospitality training gives us an opportunity to learn. >> next of is lviv stadium. there is still much to do. it has become a symbol of ukraine's for planning and construction -- poor plaing an construction. they were threatened with being stripped of their status. the city has made heavy investments. >> there are still people who are pessimistic and do not believe the stadium will be finished. but our stadium and the infrastructure around it are already 65% complete. i am sure we will get it done on time. >> shortly before midnight, we visit lviv's main station. we take the night train to the capital, kiev, 500 kilometers away. we arrived e