even from merkel's own party opposed the legislation. they say it is wrong to saddle the next generation with that they did not create while others have been much more positive view. >> this man is against expanding the bailout fund. back the other is in favor. both want to save the euro but they disagree on how to do it. >> i am for the expansion of the bailout fund. i believe it is vital to ensure the future of our currency. >> i oppose the whole idea behind disability fund. it sets out to fight that with more debt and that is wrong. >> germany already shoulders debt from two trillion euros. every second that figure rose. the eurozone bailout fund could drive the nation's debt bill even higher. critics say that is not compatible with the constitution was sets a limit on debt. >> at the european level, we are expanding our opportunities for debt. >> we are well within our debt limits. there's plenty of room to maneuver. we could honor existing agreements with grease without endangering our own debt limits. >> this is an emergency that g

this is a test of leadership for the angela merkel government. will she be able to get the majority she wants without having to depend on opposition support? "she is under pressure. her busy schedule did not prevent her from posing with photos with this group of visitors to berlin. she had just come from an urgent discussion. she is fighting to sway opponents within her own ranks. the result of a straw poll suggests she has a chance at getting a majority on the issue. at the same time, but the finance minister is drumming up support among members of the coalition partner, the free democrats. leadership is convinced that a stability fund is needed for a stable euro >> it is imported to strengthen and support the euro. this will strengthen germany's position. >> a new book about the fdp leader provided an opportunity for an optimistic assessment by the prime minister. >> -- by the chancellor. >> this will be a successful move forward the coalition. >> the chancellor knows that she has enough support for the rest to fund, she cannot be sure that eve

chancellor merkel has been heavily criticized in some corridors on her handling of that. asked our chief political correspondent wheer the results in berlin could provide some comfort to merkel. >> the result is to some degree certainly a strengthening for angela merkel and her christian democrats. she saw her party gain a couple of percentage point and she saw her course on policy in regard to the euro vindicated, at least to some degree. there had been a squabble over the past couple of weeks, as we heard in the reports come up between her party and the junior coalition partner, about whether her course presents too many burdens for german tax yers. and in fact, the voters did not seem to find the fdp euro- sceptic line very convincing. some vindication for her. on the other hand, her coalition is weakened by the fact that her junior coalition partner is in the immense disarray. in general, the markets and other european countries have been looking for a clearer german leadership for a really for lack of course on the europe. the question is whether the chancellor with

is not a runaway where but still angela merkel has welcomed it in the court decision emphasizing the importance of unity as she has always been saying but one of the leaders of the ruling coalition i believe it's mr horsley harper said in a recent interview that he did not rule out leaving the single currency zone do you think axing there is a solution for such that reading countries i think there's only one possibility progress right now and that since you don't so the euro i mean what's happening is greece is essential to being saul hide by. slavery by the way that the euro debt mechanism is working far short greased it's a farce for greece people and it's a total complete and utter disaster for the europe of greece should be allowed to go free and it must make its own decisions its own sovereign decisions but people can decide what they want to do next or its own throughout but it's not going to be about easy for greece it's not tomorrow the next they get out of the euro and there's a lot of the couple of a lot of work to be done as well is that worth it worth all the trouble. wel

growing numbers of people here not just across europe but particularly in germany now i'm going to merkel's ruling party has suffered terribly in recent local elections which gives an idea of the opposition that there is in germany to these bailouts they were opposed to the idea what they say the mistakes of greece being rewarded in effect and germany has to pay for the mistakes of people like greece there's been huge publicity over this ruling does raise the pressure on germany to really have another look at whether they go through with these bailouts or not the parliament did vote in may two thousand and ten to greece keep it from defaulting on its debts and to back the four hundred. euro european finance stability facility with some hundred forty seven billion euro and sees the latest opinion poll showing really quite strong you know position not just in the bailouts but also to the whole european project or more people are saying is that they oppose this this defector movement towards a single european government without them really being consulted of course when they were consulted som

as you set, this is putting a big strain on angela merkel. this is making it very difficult for her to govern this country. it has been the liberal democrats, also, of course, driven by the fact they've gotten bad election results in in-state elections. the last berlin elections, they got 1.8% of the vote. that's nothing for this party. that has started to drive them to take more measures and make it difficult for angela america toll govern here and assume her leadership role within the euro zone, charles. >> i think we have to assume she's presiding over a lame duck government at this point, fred. anyway, that's a further discussion. fred pleitgen joining us. that key vote will happen later on this afternoon. many thanks to you. andrew? >>> there's a lot riding on what happens wrenn officials from the so-called troika, the imf, the european commission and central bank meet the greek government today. depending on the outcome of that meeting, greece's bailout could be renegotiated. john defterios joins us from athens. just on the troika, what

the european debt crisis has become a defining moment for german chancellor angela merkel. there is a vote that will determine whether germany throws its weight behind the latest bailout plans. the ballot on extending the european financial stability facility is expected to be approved but it is still unclear whether chancellor merkel will get a majority within her own coalition. opposition leaders say that she should step down. >> this might be one of the most important votes of chancellor merkel's term. she wants to know who is voted against extending the european financial stability facility. one doubter has returned to the government fold. >> i guess i will return -- i guess i will vote for it unless some unsettling news comes from washington or somewhere else. >> there is some support because the opposition also supports it but angela merkel does manage to scrape a simple majority. she is short of the absolute majority from our own coalition. it would be a symbolic blow to her authority. >> if she fails to win an absolute majority. this would mean real damage to her im

that may test angela merkel's leadership all over again.avin hewitt, bbc news, berlin. >> well, despite that important vote in germany now being passed, many still say the rescue fund just isn't big enough. others also point to deeper long-term questions over the future of the eurozone. our economics editor reports from frankfurt on the questions hanging over the single currency. >> what started as a greek crisis has turned into a crisis for the euro itself. forcing policymakers back to where it all began to tension deep inside the single currency project which had been there since the start. there was always a question with the euro, what would happen if one of the members ran out of money? would they get bailed out by the others, or would they have to default on their debt? the answer was they weren't going to let it happen. well, that strategy hasn't been working out so well the last couple of years. in effect, now they have six weeks to finally come up with a better solution. that's exactly what the german government doesn't want to do,

merkel is operating under a political pressure. what they are voting on is the last bailout and that is very difficult to get to. people are talking about how that is not enough money. at some point, the german voter might say, sorry. >> will they have to look outside, like china, to resolve this? >> europeans would love that if they could persuade the chinese, who as we all know our city and on foreign reserves and it would be a great idea to buy italian debt. that would be a great help. >> how enthusiastic you think they are? >> not a very. they have a vested interest. more broadly, they have always looked to diversify away from the dollar. in that sense, buying european assets is attractive. buying them in a crisis, perhaps not. >> thank you for your insights. >> thank you. >> still to come, a bloody crackdown continues in syria, the new generation takes its protest to the classroom. >> beijing prepares to launch its first space laboratory into orbit. a british high court judge has ruled that a woman with severe brain damage sho

get paid and we're willing to sacrifice the economy year after year we're willing to say so what merkel is is an american politician she can deliver her constituency to her campaign contributors and if that's the kind of politics you have a new europe then the american somebody runs most of the writers of the eurozone in referring to old europe the way he was just. one point which is that i thought she was scared of the losses of the european banks which would suffer if you know for example i mean it's obvious to anyone that greece should default but instead three hundred seventy g.d.p. it has economy contracts us have said yeah there's absolutely no way it could be good to be paid it's that it actually if you talk if you talk to people in the balkans are mostly kind of hedge funds and have a baby no they're not going to be paid out to said it was that on the year i know that i've been lucky to get fifty cents on the year i had settled some of that but that's a scared of the losses are you out of stock data b.m.p. and those are bank of the rest of it that allow it to happen it would be

everyone is looking to angela merkel to see if she will back is much more ambitious idea, to fix the euro-zone crisis. it involves strengthening the bank's, writing off a chunk of greek debt and launching a massive bailout fund that could help the largest of countries. but increasing the volume of the bailout fund is usually sensitive here, and the government is playing it down, particularly because it is selling divisions within chancellor merkel's political party ahead of a crucial vote later in the week. >> a little earlier, i spoke to a professor at simon johnson, a former chief economist at the imf. i asked him whether he was confident that the euro-zone leaders had come up with a comprehensive package. >> i am quite confident they have not come up with a comprehensive package. if perhaps there are some steps in that direction, but still quite early days. >> what do you think is the biggest challenge they are facing then? >> italy. they need to decide how they are going to handle italy. italy has a series of fiscal issue, not yet a crisis. it needs to make adjustments in a respo

papandreou try to convince the world that he is serious about cutting the greek debt, and angela merkel had to try to persuade her country that the country is worth bailing out. neither is an easy task. we have this report. >> the prime minister agrees and the chancellor of germany appeared together like partners in berlin. he needs her parliament to approve the bailout of his country's finances. she was promising. >> germany as happy to give any support that is necessary. we believe that greece has a big responsibility in order to fulfill what is required. >> earlier, prime minister papandreou made a sales pitch to a business audience, but also to members of parliament, who vote on thursday on whether greece gets its bailout. >> yes, we're making this crisis and opportunity. i can assure you that your investment in greece will not keep us stuck in the past. it is an investment to remove grease into the future. >> this message to germany, we will repay the money you give. chancellor merkel is working hard to persuade german lawmakers that they are not wasting taxpayer money. if she fail

ruling that the country's bailout billions for struggling nations are legal but ones i'm going to merkel still have to ask permission the next time she wants to run to the rescue. with colonel gadhafi now surrounded by the rebels r t looks at how libya might become a breeding ground for extremists to face an even bigger civil war. and a deadly blast rocks india's capital eleven people are dead and dozens injured in the city's worst attack in nearly three years. well the top court in berlin has thrown out a series of lawsuits to reset germany's bankrolling a bailout sale of european economies were illegal but judge just ruled out giving chancellor merkel a black check saying that any future aid must now be pre-approved by parliament well that could hamper germany's ability to react swiftly to any new crises but sets a precedent for other nations to tighten their belts as well opposition parties welcomed the ruling but said merkel had made the crisis worse through delays at a lack of vision for national advisor patrick leon believes there's little to celebrate just yet. ultimately this is

angela merkel says that speculation about a greek default can only hurt the eurozone. she's attempting to show solidarity among the euro members. >> a united position on the euro crisis. this was the message that chancellor merkel wanted to send as the finnish prime minister makes his first visit to berlin. her economics minister suggested that europe could no longer rule out an orderly defaults of athens. >> we must be aware that everything we do must be done with great care, knowing the consequences. we are in a new territory for the common currency. otherwise, a situation would arise that none of us want and it could have very serious consequences for us all. i have no doubts over whether the german government shares a common position. >> as if to prove his independence, the economics minister, head of the junior coalition partner, had his own press conference at party headquarters and he reinforced the very statement that had caused so much turmoil. >> we want greece to remain in the eurozone and for that to happen, we need to restore it to and efficiently function

highest court rules of the country's bailout billions for struggling nations are legal but once angela merkel she'll have to ask permission next time she wants to run the rescue. the deadly blast rocked india's capital ten people are dead and dozens injured in the city's worst attack in nearly three years. moscow appeals to the global community not to repeat history's mistakes by leaving libya and syria in shout balls. just after four pm here in the russian capital this is r.t. our top story a top court in berlin has thrown out a series of lawsuits which said germany is back rolling of bailouts to ailing european economies were illegal but not just ruled out giving chancellor merkel a blank check saying any a future aid must now be pre-approved by parliament well that could have or germany's ability to react swiftly to any new crises but sets a precedent for other nations to tighten their belts as well opposition parties welcomed the ruling but said merkel had made the crisis worse through delays and a lack of vision for the national visor believes there's little to celebrate just yet. ultima

. >> that came as the turkish president was meeting with angela merkel here in berlin as part of merkel's efforts to improve relations. the talks took place at the chancellery. the talks were dominated by the turkish campaign to join the eu angela merkel is opposed to full membership and has offered turkey a privileged partnership. if we were not having enough financial problems in the world, this news is not going to help the situation any. >> worldwide problems, especially in the u.s. and the eurozone, those are critical. the imf has revised their eurozone growth prospects significantly down. they have said that the important advanced economies are suffering low growth. this is destabilizing baking system. the imf is calling this a vicious feedback loop. -- this is destabilizing the banking systems. >> they said that they need to get their act together to avoid repercussions. growth will be less than expected. the imf chief economist not pull any punches. >> the global economy has a new face. the recovery has weakened considerably strong policies. strong policies are needed to improve t

greece is an integral part of the eurozone, that is a message from german chancellor angela merkel following a conference with the leaders of france and greece. this is a message that is intended to dispel speculation that greece could default on its debt. the debt crisis has already split the government, now the european commission could be on a collision course as well. they have put the idea of eurobonds on the table. this is the idea of selling for europe as a whole not for individual state. this is something that germany vehemently opposes. >> instead of selling their own bonds, they will sell eurobonds. this would lower costs for some, raise costs for others. >> we will be working out the introduction of the eurobonds. >> the ecb cannot continue efforts to buy bonds of countries in difficulties. >> proponents say that countries like greece are likely to default without eurobonds. >> it is absolutely certain that they will defaults or they will exit the eurozone and this would carry problems not only for greece but for all of the member states and our global partners. >> such warnings a

angela merkel is seen as europe's key leader. she could not count on her own side to win the vote, she risk humiliation -- if she could not count on her own side to win the vote, she risked humiliation. she walked across the floor as the chief whip told her that she had survived the crisis. >> i am really relieved. it was a very strong signal of chairman commitment -- german commitment to european integration and to the euro. >> what did germany's politicians agree on today? the expansion of the eu's man bailout fund to 440 million euros -- main belau fund to 440 million the bureau's -- main bailout fund to 440 million euros. rebels within her coalition have served notice that, if further demands are made on german resources, their support cannot be taken for granted. the german people may be less pleased with today's news. they are against further bailouts. many believe a much larger bailout fund will be needed in the future to protect some of europe's larger or economies. that might test angela merkel's leadership all over agai

on wednesday, angela merkel's cabinet propose strengthening the bailout fund. next month, the german parliament will vote on the measure and that could be a problem. some members of her conservative party say that they will vote against the plan. >> the finance minister is aware of t increase risk that germany will be exposed to when berlin ups its stake in the rescue fund. so far, the german contribution has been in the form of guarantees but that could change if the fund helps to recapitalize. >> ultimately, it is about taxpayers' money. this is a decision that needs to be taken in parliament, not in the back rooms of brussels or berlin. >> some have threatened to vote against the fund. this could leave the government depended on votes from the opposition. they are looking for parliament to have a future state in bailouts. -- a future say in bailouts. >> the proposals need to be drawn out said they guaranteed the decision rule parliament which is adequately take it is a consideration. secondly, that the fund be effective. >> the lawmakers called for having mo

if that's so they create a central bank then good for the europeans for saying to hell with angela merkel. i have to concur with michael on this and i think essentially what we see is continued rent seeking ever since the lisbon agreement and treaty what we've seen is really going back to maastricht is an attempt to liberalize into privatized credit creation so we have this rent seeking from the real economy to the financial sector and i don't see things changing and i think all of this to assert. stem is just the water the real problem the underlying structural problem that has not been fixed is how do you really recycle capital through the system from rich countries to poor countries and how do you do that in a way but. that wasn't the purpose of the euro zone of course that was it should be now we need to go back to keynes and we need to understand that in order to have any kind of meaningful either international trade or real european wide trade you need national development or you guys are jumping ahead of me michael you and you wanted to have your say if there were a need to have fi

countries bailout billions for struggling nations are legal but it warns angela merkel she'll have to ask permission the next time she wants to run to the rescue. with colonel gadhafi surrounded by the rebels r.t. looks at how libya might become a breeding ground for extremists and. civil war. also eventful day for israel where police begin clear in tel aviv streets of the social protest stick one of the west bank jewish settlers vandalize a military base. i'm kevin thanks for being with us tonight r.t. will of course keep you updated on the jaroslav all playing tragedy in the coming hours as more details.

if there are more than 19 rebels, then angela merkel the forced to rely on the opposition.hat will seriously undermine her at this critical moment in the eurozone crisis. but moved through the parliament's corridors and you hear anxiety that the markets will be watching this test for angela merkel closely. >> there is much more at stake than just a vote in parliament. it is about the strengthening of the financial markets. it is a signal to our european neighbors and friends that germany is committed to the euro. >> the eurozone crisis is causing political tension here in the german parliament. but the u.k. is not immune from the fallout, with talk of new taxes, deeper integration, and changes to treaties. bbc news, berlin. >> for more on the problems plaguing the global economy, especially the forces driving many to take their discontent into the streets in protest. i am joined by the former executive director at the world bank, and he is currently at the carnegie endowment for international peace. thank you very much for getting here. so much disunity. how was your going

markets playing catch up with the slide on the dow on friday, but the election setback for angela merkeln her home state. the euro is being hit by that. we also have the u.s. authority's suing several major u.s. banks. that takes us to the european banks which are taking a hit. let's take a look an at those, please. they are being sued by the fhfa on behalf of freddie mac and fannie mae. 17 banks are named in the lawsuits. they are accused of misrepresenting the sub mortgage loans. too slow there. never mind. there were big losses. let's move on to currency. as i said, the yen is at a three-week high against the euro with the euro taking a pounding. 1.4135 following the setback from merkel. the yen/dollar is 76.82. andrew. >> absolutely, charles. that was playing into the big selloff in asia. the selloff is just as grim on the back of the disappointing jobs numbers in the u.s. on friday. now overall financial stocks fell across the major markets. it wasn't just finance, but export. take a look at the nikkei, down by 1.8%. exporters being hit on renewed concerns about the strength of the

if there are more than 19 rebels, then angela merkel the forced to rely on the opposition.t will seriously undermine her at this critical moment in the eurozone crisis. but moved through the parliament's corridors and you hear anxiety that the markets will be watching this test for angela merkel closely. >> there is much more at stake than just a vote in parliament. it is about the strengthening of the financial markets. it is a signal to our european neighbors and friends that germany is committed to the euro. >> the eurozone crisis is causing political tension here in the german parliament. betty been the u.k. is not immune from the fallout, with talk of new taxes, deeper integration, and changes to treaties. bbc news, berlin. >> for more on the problems plaguing the global economy, especially the forces driving many to take their discontent into the streets in protest. i am joined by the former executive director at the world bank, and he is currently at the carnegie endowment for international peace. thank you very much for getting here. so much disunity. how was your g

off by 1.6% is this eu finance minister's meeting and also another defeat for chancellor merkel in an election in a federal state in berlin in the capital which itself a federal state stinging review came after another weakening her merkel's authority as chancellor. >>> news from the swiss banking giant ubs. that lender has raised the tally of its loss on unauthorized trading to $2.3 billion. $300 billion more than it first reported. the shares are currently trading at just over ten swiss francs down 2 poi 3 of a percent since friday. i suppose that's kind of credible manesha. >> the news from that figure is definitely making people gloomy. i'll get to that otherwise the markets in asia falling this session by the close. investors disappointed on apparent failure to draw a line under greece's debt disaster and talk about that later in the show. the euro has fallen against other major currencies. the tokyo stock exchange was closed because of a public holiday. we always get direction from there. the other indices finished. people aren't likes that. there are people paying close attenti

members of chancellor merkel's coalition decent to see in the same bailout fund is less in balad take on the debts of all the countries do you think the german public really is going to stand for that. it is a growing split between the german public as you say. before the split has been greater today the political. still you know call to. continue. public is more united than ever to oppose it. is going to to lose the popular support it has always had. so we are really at a crossroads a real crossroads that and of course the key question is that if the measure is all hostin japanese tomorrow how much will they actually help greece anyway. this is the. call into question for the time being. the fundamental problem of greece. is divergence of competitive. countries being competitive with. trade surpluses and other ones like. to forget. competitive competitiveness leaves to be desired by putting more debt. and increased the competitiveness of these countries in the country you keep in the same question they are. imprisoned. after having consumed. cheap money for more than ten years so you

the konss tugs al court has ruled that angela merkel was correct in bailing out greece and other euro zone members. but the verdict it seems could be something of a double edged sword here because although the court ruled in ms. merkel's favor, it also said that parliament must now get more of a say in future euro zone bailouts. >> it's going to make for interesting reading. a sign of the times for europe. the trading day just winding down here in asia and major markets have closed higher for the first time this week. you can see for yourselves that it's looking pretty healthy on the board. there seemed to be a bit of bargain hunting going on after the two days of losses. people have been keeping a close eye on the japanese yen, as well. technology and energy stocks in particular were among the biggest earnings. hyundai wants to drum things up in the european markets and traders seemed to like that. another look at that australian economy that's been bouncing back from this year's natural disasters is recording its strongest growth in four years. but a new survey finds increasing job

there has been more strong words from german chancellor angela merkel in defense of the eurozone. she is facing criticism within her own government over her response to the debt crisis and the cost of bailing out countries like greece. she opened the frankfurt motor show with a warning about what a broken euro could mean for german exports. >> the german auto industry is riding high, but for how long? with fears growing that the eurozone crisis could put the world back into recession, angela merkel reminded her audience at the euro is worth fighting for. >> germany can only prosper in the long run when the european union as competitive as a whole. over 60% of our exports go to the eu. it is quite clear that the european single market and the euro are essential to our economic success. >> even within her government, there are doubts about her approach to the crisis. her transport minister, a member of her bavarian coalition partners, have criticized the high cost of bailing out countries like greece. >> we cannot allow a rescue at any price without anything on the part of greece. >