no one has left the eurozone. while the fear of contagion may be contained, nina, by greece leaving the eurozone, the bigger concern is that a sovereign government is not prepared to stand by its obligations. that's why we see continued weakness again or jitters, as you said earlier, in markets today. remarkable uncertainty hanging over the g-20 and the conversation around here is not about all those side issues which were the main issues, it is all about greece and the failed attempt yesterday to pressure popandreou to drop this idea of a referendum, nina. >> one thing i distinctly remember and you probably notice there as well, ali, covering all this talk, the rhetoric has begun to change. so nine months ago, default was almost a dirty word. now we've even got the french president sarkozy saying perhaps they do have to assess whether greece will be a good eurozone part ner. it has changed. >> absolutely. there's a real sense of defending the euro and the eurozone at all costs. merkel and sarkozy talked yesterday

eurozon the government has failed and now wants to put the blame on the people. there can be no good outcome to this referendum. we are finished, whether we vote in favor of the bailout or return to the drachma. >> papandreou h hopeso convince his ministers and fellow party members to support the referendum, but the defection of one socialist deputy on tuesday whittle the party's majority in the 300-seat legislature to just a few seats. >> what has the reaction been in brussels for the need for another emergency summit to save greece and save the euro? >> they reckon there is a need for the summit now that what has happeneded hasappened. there is an amalgam of shock and amazement. nobody saw this coming. they have been trying to second- guess this crisis every step of predicted this would happen. it adds more confusion. if there is a referendum down the road, maybe in january, who is to say how that will affect decisions that are taken now? markets are going haywire. there is anger, frustration. if the greeks want a referendum, that is democracy at work. nobody w

out of the eurozone. that is one possibility. whether it could be contained there or whether the eurozone, regardless of what the greek situation is, how it emerges, the eurozone will collapse now. given all the things that have happened. my expectation is that it will happen. >> we will have to leave it there. thank you for your insight. moving to china. the mainland is looking for ways to control internet information. microblogs are giving people the opportunity to share information and speak allied never before. that is upsetting the country's communist rulers. more from beijing. >> this sample is an odd place to look for the modern world. complex rituals have been performed here for more than 1000 years. but the devil is seeing something of a revival. -- but the temple is seeing something of a revival driven by the internet. the leader has his own micro blog. he lets people what -- he lets people know what he's doing. people are now being able to express themselves. leaders are trying to stifle them w

you could save the eurozone is now holding the global -- you could say the eurozone is holding the global economy for ransom. america, britain, china, and russia all want to see the europeans solve their problems. only then when they have shown real determination in the rescue plan announced last week -- only then, supposedly, will they get these new resources from the imf. that's a game of chicken. i think we will see a new allocation of money from the imf. what we get from the europeans is less clear at this stage. >> yes. does that mean the chinese, russians, and americans have to step up to the plate, because the consequences of not doing so would be so much worse? >> yes. it's not quite been looked at in those terms. one of the problems with returning to the imf is that everything that has to do with the imf is horrendously complicated. basically, there is money the imf can create. we will get a bit more of that this afternoon. we have a bit more at the g-20 meeting in london. we will probably get another allegation of that money, which goes to all members of the imf. the idea is the

of the eurozone, must act now. in brussels, the latest forecast delivered by the european union's monetary affairs chief is one of gloom. >> this forecast is in tax bill last -- is in fact of the last wake-up call. the recovery in the european union has come to a standstill. there's a risk of a new recession, unless determined action is taken. >> there's fresh talk of a 2- speed europe and changes to the eu's treaties. the president of the european commission has warned that a split union simply will not work. >> if europe is to bow out greece and italy, one of the most crucial affairs will be germany. german chancellor angela merkel insists that helping others must not endanger her country's economy, but what about the cost of not helping? joining us from berlin is one of the so-called five wise people who advise the german government on the economy. thank you very much for being with us. what's your message as an advisor to german chancellor angela merkel right now? >> our message is that the only solution for th

hello and welcome to cross talk i'm peter lavelle the hero of crisis without end eurozone leaders and national governments continue to be at loggerheads on how to rescue a currency that has an unpredictable future which clearly started out as a financial fiasco of the highest order is now a political disaster with few if any positive outcomes. to cross-talk the prospects for the eurozone i'm joined by robert oulds in london he is the director of the bruges group also in london we have caro new he is chief executive officer at the center for european policy studies and in minneapolis we cross to clare hill she's professor at the university of minnesota law school or i folks this is cross talk that means you can jump in anytime you want all right robert if i could go to you first and you know we can talk about the financial nuances about this i think everybody that's been following the story knows basically the big numbers involved but you know there is we i thought last week everything had been decided i thought everything was going to be done you know as i recall is a marco they had d

r cross talk show to this edition people of our losses guess what could lead the eurozone out of this financial quagmire it's in right now and is the exodus of its most debt ridden members really on the cards right now. please. continue to. follow unwelcome across stuck on peter lavelle the hero of crisis with out and eurozone leaders and national governments continue to be at loggerheads on how to rescue a currency that has an unpredictable future which clearly started out as a financial fiasco of the highest order is now a political disaster with few if any positive outcomes. to cross-talk the prospects for the eurozone i'm joined by robert oulds in london he is the director of the bruges group also in london we have caro new he is chief executive officer at the center for european policy studies and in minneapolis we cross to clare hill she's professor at the university of minnesota law school all right folks this is cross talk that means you can jump in anytime you want all right robert if i could go to you first then you know we can talk about the financial nuances about this i t

eurozone? >> in particular, we are talking about the money market, the international bond market, and they all were right. let me explain. as you have been hearing, amid a worrying trend in the money markets, the leaders of germany, france, and italy are meeting in strasbourg. france wants the european central bank to help out nations and get this -- difficulty by guaranteeing their debt. but the stumbling block, german chancellor angela merkel is against it. she argues nations in trouble should reform and not be given an easy way out. but of course, these talks have been given more urgency by events in the money market. germany struggled to sell government debt and borrowing costs rose. bill blaine is a senior director at a financial trading company and he explained the significance of events on the financial markets. >> yesterday we got a clear demonstration that it does not take a euro events like a greek the ball to kick off contagions. you know what? the virus is already spreading. a norma

commitment into investing in to the eurozone nearly beefed up -- the eurozone's new the beefed up programs. there will be much more cautious, of course. they will be looking with dismay mat what is happening in greece. russia said, for example, that europe had the political authority and financial resources to deal with this on their own. it is clearly implied that they have not done so thus far. >> i was reading the 40% of its currency reserves are in euros. it has a lot to lose. >is there a paralysis in france? they cannot make a move until they know what the g-20 leaders will do. >> i think the word paralysis is a good one, especially this morning. anti- 20 leaders were writing and there were bilateral meetings between presidents are cozy and president obama. -- between sarkozy and president obama. they are all trying to work out how they can elevate this crisis out of the morass that it is in. the deal reached in brussels last weekend, it does have traction and it does have wheels. they are trying to accelerate how to leverage and optimize the european bailout mechanism, the ess. uand

europe's financial elite as your web page when epic tells us what went wrong he thinks with the eurozone and why the debt crisis can be resolved until the e.u. addresses its leadership problems. europeans will storm this building the european parliament in a repeat of the french revolution according to a pink member of the european parliament mr why are people so fed up with the e.u. well i've been become a bit less optimistic because since i wrote the book many things happened and particularly we're facing now a euro crisis a crisis in the eurozone and nobody actually knows what to do we go from one summit to the other every time we think we found a solution just to find out a few weeks later that the problem is still there and even in a bigger size so i think that. we are facing some fundamental questions in the european union and this idea of ever closer union and ever bigger budgets and ever more institutions is basically the wrong way we have to take tough positions greece mainly gets a second bailout how do you think this year across this will end well this is the big question ever

the problems of the eurozone intensified. growth stalls, creating fears of a recession which to spread the crisis even further. republican presidential candidate rick perry would like to cut the government, he just cannot remember where. >> this is three agencies that i will cut. commerce, education, what is the third one? >> they have long been a symbol of the american west. there is a debate whether these horses should remain on the open range. welcome to our viewers on pbs in america and also around the globe. hold on, the ride is far from over. that is the message coming from the eurozone. uncertainty over the common currency's future is only increasing. there are fresh warnings that growth has stalled in a new recession could result. our coverage starts from brussels. >> we did not have to travel far to find concern about what is happening in europe. >> we are in the middle of a crisis, i guess. i am worried about my salary, my mortgage. >> further along the road, the self-styled heart of europe, the commission. inside,

is the main problem at the moment for the eurozone to end he was. saying writing in new york times that it's better for the eurozone to collapse sooner rather than later personally i believe that we should exit the eurozone because it is the responsible for this crisis in greece but of course again depends on who takes the initiative for now in the year same project started his team is such an l.p.g. defeat that countries like greece but only now saying that three percent breaks up first we believe that the european union. we not only in the car know me and the monetary union but the political union of a union of the people and for a country that. was just the coming back to democracy after seventy years of dictatorship it was really a dream that the european union we provide to us peace and security we made there realized that that was not the case that the european union and especially the eurozone was just a monetary union was just the too weak in the on so the big banks and the foreign corporations in order to do their job a more easy to take th

the financial future of europe is at the center of a showdown between brussels and berlin over eurozone debt, and it touches on overriding issues like national sovereignty and the rights of individual parliaments. the president of the eu commission has launched a new push for eurobonds, criticizing the german government's rejection. >> the eurozone president hopes that brussels can convince markets that it can resolve the debt crisis, and he wants germany to reconsider the introduction of eurobonds as a solution instead of just rejecting the idea. >> frankly speaking, i do not think it is appropriate in our european union in respect of the prerogatives and duties of all the institutions to say from the beginning that it should not be helped. >> the european commission has proposed three possible forms of yourbonds. in the first version, current individual government bonds would be replaced by eurobonds appeared in the second, eurobonds and government bonds would exist side by side. in both cases, the bonds would be backed by all countries. in the third version, individual countries woul

this year, the eurozone debt crisis looks set to slam the brakes on growth. europe's largest engineering company siemens is bracing for the fallout, and it says things have to change. >> of course the debt crisis has to be soft. your past to better coordinate its bigness at -- your past to better court and its business and economic policies. at the same time, there have to be measures to spur economic growth. but the real economy and industry are not in sync with the financial markets at the moment. >> luckily for siemens, and has the financial clout to act independently of those markets. it can fall back on the 13 billion euro cushion during tough times. even now, siemens is creating a new infrastructure demand -- infrastructure section to be the featured a man of futures markets. >>> rescue workers are searching for survivors after another major earthquake in eastern turkey. dozens have been rescued, but many more are trapped under the debris. the five. magna sued it -- the 5.7 magnitude or earthquake struck just two weeks after another earthquake killed 30

, but many lawmakers oppose the idea of the 17 eurozone members dictating economic policy in the eu. >> they want to be europe's economic policy makers, whose decisions would apply to the 10 non-eurozone members without giving them a say. that would divide europe. >> that decision -- division might already be under way. >> the non-integrationists want the government a buyout that directly from governments. enda kenny called for the ecb to began taking a bigger role to prevent financial attention. the germans are putting up stiff resistance to the idea. they say that if the ecb starts bailing out governments directly, it will start losing its independence. >> ireland appears to be on the road to recovery. german's chancellor is redoubling their efforts to reduce deficits. ireland is now posting modest growth. >> we are -- can fathom what it means for the people of ireland to shoulder this harsh program. that is why we can mend ireland's success of the more and fully support its -- commend ireland's success all the more and fully support it. >> the country is still marked by the collap

it heightens the whole eurozone deal back into the uncertainty basket. the possibility goes back into italy and spain. one trader told me this morning -- i will show you the markets. they are taking a hammering at the moment. one trader told me you can kiss goodbye to the end of year rally. the dax in germany is down close to 5%. the ftse and italy is almost 6.5%. no surprise, david, the european banks are taking a big hit. if we can bring up the banking if we cat=ó÷szku4s.the banking is down almost 10%. commerzbank in germany is also taking a hammer in, down 8.5%. let's remind everybody, the reason banks in the eurozone are taking a hammer in today is because of uncertainty has been raised once again. these banks have future exposure to the likes of greece and italy. >> it is a tough one. >> thank you very much. >> can i throw this in? i will also talk about the u.k. gross numbers in 20 minutes. much better than expected. >> move on to other news now. a member of parliament in japan has drunk water from a radioactive puddled to prove that decontaminatio

a gloomy forecast for the eurozone, with warnings that could be headed for recession. and the search for survivors of another major earthquake in eastern turkey. >>> greece has a new prime minister, lucas papademos. his appointment has been welcomed by the united states as evidence of a consensus in favor of reform. the european commission also said it was a positive development and it allows a strong cross party message to be sent on their debt problems. papademos, a former vice president of the european central bank, was appointed after intense political wrangling and athens. >> lucas papademos is stepping in to head the government as greece faces its worst crisis in modern times. >> the choices we make will be decisive for the people. the path will not be easy, but i am convinced the problems will be resolved quicker and it is smaller cost if there is unity. >> the german chancellor said she hopes the new greek leader will have enough public support to push through the changes. >> we would like greece to get on the right path as quickly as possible. we'd like to ref

need agrees or not leaving the eurozone it will become worse and worse and worse two states will point at which for example. germany and other limbs finland emotional say ok we're going to leave the euro and you get a completely break up of the user of course this is something that may not happen tomorrow but it may be one of the scenarios we have to keep in mind how is this crosses affecting people in the street the currency looks to be still quite strong but that is because the dollar is very weak basically the currencies of the major powers in the world japan the united states and the euro are quite weak but of course what is the effect of this eurozone crisis is that there is little growth actually our economies are not growing in the north they are growing in the south they're not growing and the main problem of the euro crisis is not so much the euro itself it is rather a gap of competitiveness between rules in the south the north is still growing the south is in a crisis and stagnation in recession and as long as they are in the euro zone it's very hard for them to grow there's

a systemic crisis of the eurozone and as long as the eurozone remains in the state of denial the euro will be history before too long and when it grumbles then the rest of the global economy is going to be significantly negatively affected. meanwhile economist downing it claims the raging financial crisis in a city will mark the total financial collapse of the u.s. the concern is not greece because the exposure there is this is able to be handled it's going to err but the problem is italy and if it spreads beyond greece and into italy in portugal and italy's bonds in particular have been under attack the last couple of weeks and despite all of the arm waving and feel good promises of backslapping that has gone on this is not slowed down so we get to a point here where in the next few months there is some rule over that has to be you know you carry it. but most of italy's debt is a fairly long duration so the fear level that's associated with this implies that there is something more involved maybe in the credit protection market for example those credit default swaps that we talk abou

this new obstacle for the ratification of the eurozone rescue deal came as a huge shock to eurozone leaders. >> this announcement has surprised aholt of europe. france wishes to restate that the plan adopted unanimously last thursday by the 17 members of the eurozone is the only possible route to resolve the problem of the greek debt. >> what the greek government has been offered is 100 billion euros of an additional bailout loans and a reduction in 50% of what it has to read dave thanks, but now the cut in public services and -- white in has to pay back thanks -- what it has to pay back banks. even if it does go as planned, the debt will still be 120% of what they produce, and so that will still be difficult, which is one reason the package is difficult to accept. >> you cannot really call it that. i think it is probably a higher risk situation and not advisable. >> what you think will happen if the greeks reject the rescue deal? >> greece will the fault and leave europe. it will definitely default and leave the euro. i think it will be followed by similar action in sport -- ind spain, ita

because of the spending cuts demanded by the rest of the eurozone. spain was one of the first eurozone countries to be hit by the financial crisis, and the economic situation there is still grim. >> a bailiff with police backup of vix tenants from an apartment in barcelona. in the past four years, more than 300,000 spaniards have lost their homes because they cannot keep up with their mortgage payments. the result, about a million properties languishing on the market in spain. during the boom years, banks fuel to the development freezing the development frenzy with london. now the developers are in peril themselves, sitting on hundred of billions of euros. up to their necks in debt and now jobless, too, for a growing number of spaniards, that is the reality. spain has the highest unemployment rate in europe. a young people are the hardest hit. almost half are without work. before the crisis, unemployment in spain was on a steady decline. in 2007, it began to surge. today, the jobless rate is 21.5%, and continues to rise. by comparison, germany has ma

leave the eurozone. well. hardly noticed thing in the in the past days was that there was an opinion poll in greece late last week and if i remember correctly the wall street journal was reporting on it in its monday paper and the result of that opinion poll was that a majority of the greeks would reject the austerity program as put forward in the october twenty sixth twenty seventh summit so to a certain extent mr papandreou is asking a question to which he already knows the answer the answer will probably be no which will be the end of the rescue packages and which unavoidably will mean that the only option left for greece is an exit from the eurozone if indeed greece does exit. the eurozone after all these billions in loans who are set to suffer the most will be the investors the politicians or will it be once again the people who are faced a year of devastating austerity cuts all of them all of them will suffer because we can compare iraq i think we are very very close to the situation of our argentine in

let's begin with the crisis in the eurozone president obama today met with members of the european union here in washington for the meeting comes at a time in which many see the eurozone as being on life support after economic collapse seems to be spreading now we've already seen greece portugal and ireland bailed out but now the euro zone's third and fourth largest economies italy and spain are also under threat today's meeting is seen by some as a last ditch attempt to save the eurozone with even some top experts predicting the eurozone has just ten days left to live with a major solution isn't found by its next meeting on december ninth now certainly whatever happens could have a global impact world leaders are concerned they're worried some even pointing fingers here's nigel farage co-president for the europe and freedom democracy group expressing his anger at the situation. you are all in denial by any objective measure the euro is a failure i do he's actually responsible who was in shot out of you lot one of those the alter is not of you because none of you have been elected none o

[laughter] let me turn to the problems in eurozone.t is clearly in our national interest for the eurozone to sort out its problems. the biggest single boost to the british economy this autumn of the lasting resolution to the eurozone crisis. that is why britain has been pressing to act not just at the g-20, but for many months. the deal and brussels 10 days ago was welcome progress. it reflected the three essential elements of britain has been calling for. first, reinforcing the bailout fund by eurozone countries to create a proper fire wall against contagion. second, recapitalization of weak european banks. third, a decisive resolution to the unsustainable position of greece paused debt. the euro area countries need to to implemen the agreement urgently. the rest of the world can play a supporting role. in the end, the work has to be done by the eurozone countries themselves. no one else can do it for them. britain will not contribute to the eurozone bailout fund whether that is the efsf or special purpose vehicle. while the imf may a

[laughter] let me turn to the problems in eurozone. it is clearly in our national interest for the eurozone to sort out its problems. the biggest single boost to the british economy this autumn of the lasting resolution to the eurozone crisis. that is why britain has been pressing to act not just at the g-20, but for many months. the deal and brussels 10 days ago was welcome progress. it reflected the three essential elements of britain has been calling for. first, reinforcing the bailout fund by eurozone countries to create a proper fire wall against contagion. second, recapitalization of weak european banks. third, a decisive resolution to the unsustainable position of greece paused debt. the euro area countries need to do what is possible to implement the agreement urgently. the rest of the world can play a supporting role. in the end, the work has to be done by the eurozone countries themselves. no one else can do it for them. britain will not contribute to the eurozone bailout fund whether that is the efsf or special purpose vehic

to cross-talk the prospects for the eurozone i'm joined by robert oulds in london he is the director of the bruges group also in london we have caro well i knew he is chief executive officer at the center for european policy studies and in minneapolis we cross to clare hill she's professor at the university of minnesota law school or i folks this is cross talk i mean she can jump in anytime you want all right robert if i could go to you first and you know we can talk about the financial nuances about this i think everybody that's been following the story knows basically that the big numbers involved but you know that as we i thought last week everything had been decided i thought everything was going to be done you know as our cause a mark all they had decided everything decided to date of three hundred million people and now we find out well not really and even the national governments there are not particularly sure what they want to do the french are just worried about their aaa rating and what's going on in greece now well maybe by the time this program airs we'll have a differen

we agree that the health of the eurozone is the party. it is fundamental that the zero states. >> -- we agree that the health of the eurozone is the priority. it is fundamental that the euro stays. >> the indian cabinet has approved its biggest economic reform in years, opening up the vast retail markets to foreign supermarkets. that paves the way for companies such as wal-mart, the world's largest retailer, to access the lucrative indian retail sector. three bombs have exploded in basrah killing 19 people and wounding at least 60. the explosions tore through a market in the city center. many of the dead are police called to the scene after the first blast. silver berlusconi has failed to keep evidence to be used in his intention. -- injunction. this weekend should mark the beginning of the ski season in austria but there is a fundamental problem, no snow. we have the report from vienna. >> the ski runs are green instead of white. the warm and sunny conditions in the mountains are beginning to worry the austrian ski industry. many are hav