mrs. merkel's biggest headaches has been the situation in greece. she met with the former prime minister george papandreou before he announced his resignation. on wednesday, mr. papandreou sat down with israel's channel 2 television station. and he shared his views on where greece is going now. >> the name of your country, greece, has become recently a synonym for economic crisis. the economic crisis for state bankruptcy. how did you come to this point? >> we're not a poor country. we're a badly managed country. and when i was elected, i inherited a ballooning deficit, which had reached 16.5%. but also, almost a doubling of debt in the last -- the previous 5 1/2 years of the previous government, from $480 billion to $320 billion in those years. >> and you were unlucky enough that it all happened in your watch? >> unlucky is one word. but i also say i was lucky enough to be prime minister at the time of the greatest need of my country. the crisis, of course, in greece, was exacerbated by another crisis, which is the incomplete architecture of the euro

mrs. merkels particularly key to attract more chinese investment to europe. >> our economy and your economy are connected in this globalized world. we are facing some of the challenges and the -- and giving with the times of the financial crisis. we can feel the effects of the financial crisis especially in europe. and >> angela merkel speaking about european relations. how important is germany to the chinese trade? evan has been running out. >> germany needs and china. the chinese rich by the you -- buy german cars. this shows how china affects german profits. china is the customer that has kept the german economy ticking along while other european economies stumble. >> uc volumes increasing prior to the chinese new year -- you can see volumes increasing prior to the chinese new year. and with the factory is not running with the holiday, you can see volumes down all over the world. >> metal prices are going through the roof. germany, like every industrial country, that the needs what is called r

recently you have said often, mrs. merkel, that if the euro fails, europe will fail. but at the same time you have said that the solution of this crisis is to go towards more europe rather than less europe. more integration. you mentioned that today. and i would ask you. you mentioned fiscal union. what do you mean exactly when you say "fiscal union"? isn't it what a lot of germans mean when they say a transfer union? and are you going to be able to convince your own citizens to accept a transfer union? >> translator: the fiscal union is not a transfer union. what we mean when we talk about the beginning of a fiscal union is what we have already decided. that is to say stability and growth, a pact which now is going to be binding. talked a l reducing the debt. people want to in their constitution sometimes. but for the first time, the right to come and check whether the member states have really translated the stability pact in their legislation. and if they have not done it, the european court of justice can sue them. it's a paradox, if you want. we have a stability

. >> martin, mrs. merkel is the first of several european leaders to visit china, the talks expected to focus on the economy. would it she have more clout because she is from germany, the biggest economy in europe? >> i think she will. germany has incredibly strong trade ties with china. german manufacturing and machinery with chinese factories, also selling b.m.w.'s and other luxury goods. the reason why germany's economy is faring better than other european economies is because of china. we are seeing today is an illustration of that. angela merkel is holding talks, and they will jump onto an the capital haead to of china's industrial heartland. in many ways, that is what this trip is about, generating more trade between germany and china in order to drive growth back into europe. >> all right, we will leave it there, martin, thank you. >>> is drug addiction hereditary? medical experts are one step closer and handling that question. the answer, it seems, is yes. by comparing addicts with their not addicted

to deal with those imbalances is that the root of the problem and that's the european union and mrs merkel and president sarkozy address this problem they will not get to grips with the crisis in the wake of suggestions that military action against iran against iran is a growing possibility we'll speak with the former chief of the israeli intelligence service for an insider's view of the interview coming up. you are. with me i have mistaken for i am heavy before we hade our intelligence agency the more side mr halevi thank you very much for joining us here on our team a nuclear. war with iran is there with that option yes there is a third option the third option is a non-nuclear iran with. an agreement an understanding with the iranians that they will not become nuclear. and that they will be reintroduced into the family of nations in which they have been virtually expelled in recent months. under terms which will also take into account some of their interests and some of the. how possible is this option i think is very possible because i think the international pressure which is being bui

to deal with those imbalances is that the root of the problem and that's the european union and mrs merkel and president sarkozy address this problem they will not get to grips with the crisis take a look now at some other stories making headlines across the globe romania's prime minister has stepped down and dissolved the government saying he wants to preserve social and economic stability in the country this after weeks of protests over austerity measures introduced in two thousand and ten to secure financial aid from the e.u. when i am there the pm urged the country's politicians to bridge their divisions and vote in vote in a new government as soon as possible. and brevik the norwegian man who had made it to killing seventy seven people last july has told a court that he deserves a medal of honor for the murder of the extremist also demanded his release survivors and relatives of the victim sat in on the last preliminary hearing before the full trial begins in april said the attack was against traitors who he claimed are embracing immigration to promote quote an islamic colonization of

failing to deal with those balances is that the root of the problem and that's the european union and mrs merkel and president sarkozy address this problem they will not get to grips with the crisis. the name private bradley manning a u.s. soldier accused of passing classified material to whistle blowing web site wiki leaks has consistently made it into headlines mostly and. in action with his trial but now was names on a different list that of more than two hundred nominees for the nobel peace prize brigitta yon's daughter a member of the isolated parliament from the parliamentary group a group called the movement which put forward reading this nomination told me earlier why she thinks he deserves to wait for the manning do so. because he's been criminalized or long whistle on war crimes it is not a criminal act to blow the whistle on war crimes or to blow the whistle on any crime. we feel that. by these leaks for example the video collateral murder. the wall. and. people that have. put their name to war in afghanistan in iraq through their governments need to know what is meeting going on ther

. >> translator: mrs. merkel, thank you very, very much. you have been very generous with your time, especially at a moment where as i know you work 24 hours a day -- n >> no, no, that's not true. >> thank you very much. it was great for all of us. we would have liked to speak for two more hours, but i think everybody is very happy to have heard you. thank you. >>> up next on c-span 3, the senate budget committee looks into the eurozone financial crisis. then tsa administrator john pistole discusses airport security. and then later, the heads of u.s. steel and the steelworkers union discuss manufacturing and the global economy. friday morning on c-span 3, the turkish foreign minister will be discussing his country's foreign policy and role as a bridge between europe and the middle east. we'll have live coverage from the center for strategic and international studies here on c-span 3 and at c-span.org starting at 10:00 a.m. eastern time. >>> when i first started the book, i also thought this must be an american story. this is about a country

my colleague is going to act as the interim president, and the federal chancellor, mrs. merkel, is going to speak on my behalf at the memorial service for victims of dreadful attacks. i am convinced that the investigation will lead to my total exoneration in my offices. i've always acted without fault, and i've always been honest and upright. the media coverage that we have experienced over the last two months have violated and hurt my wife and me. i thank the citizens who are engaged in our society, and i thank the colleagues who work in the president's office, and i thank everybody who i have experienced to be an excellent member of the staff. i also predominantly thank my wife, who is a wonderful representative of a contemporary and modern germany. she has always, and in particular over the last few months, given me a lot of support and assistance. i wish our country, from the bottom of my heart, a political culture that is in acceptance of the democracy as a very high wealth. and i wish every citizen in this country unto whom i feel responsible. i wish them a very good futu

it's not all fun from their perspective if a benefit for anyone for sure but from a perspective mrs merkel has a very important task ahead to survive until the the federal election and to have her coalitions of life she would need to do to give greece is the government the bailout loans then we go to the banks. now she has a cause of the members of parliament in the father. and she needs to convince them that they must be done but you can't come out and openly say that this is all for the benefit of the banks so she has to count to this in the language of the doubt now the german taxpayer doesn't want to drain this or that it was so the only will blockading the german. members of parliament and the electorate will be present is basing them look watch those gigs suffer again if they suffer sufficiently then perhaps we should give them some money so the whole point of reducing the minimum wage from seven hundred to six hundred views and i mean there is no my group can only rational whatsoever it will this is the only point of blues used to demonstrate to the german members of parliament part

savings in the world with the equivalent of three point two trillion dollars stashed away so and mrs merkel will be thinking the euro which is a huge dead could do with some of that is that why she's in beijing on her first trip abroad of the year and will china help out. i think actually there are fewer reasons of which are at first as you mentioned to a lot of the china. in the year old actresses and that have been adjourned for some time but that's not the only reason other second reason there's probably a rose to the ring intros this. u. is cooperating with the states to sentient. it is the lives of the german. chancellor that she didn't wish to a child a child is that they should not make use of this we should ity to increase the oil imports from here and so does the second agenda but of the chinese formulation is would be more interested in the third agenda that is hollow this market were. cooperative the chinese people know what she called the diplomacy one of the many stops that she made in china would be to assemble in the bill by liberals papers in china and then there would be a

to deal with those imbalances is that the root of the problem and that's the european union and mrs merkel and president sarkozy address this problem they will not get to grips with the crisis all right trevor evans professor at the berlin school of economics a law thanks for your time you're welcome. the name private bradley manning a u.s. soldier accused of passing classified material to the whistle blowing web site wiki leaks has consistently made it into headlines mostly in connection with his trial but now his name is on a different list that of more than two.

failing to deal with those imbalances is that the root of the problem unless the european union and mrs merkel and president sarkozy address this problem they will not get to grips with the crisis all right trevor evans professor at the berlin school of economics a lot thanks for your time you're welcome. the name private bradley manning a u.s. soldier accused of passing classified material to the whistle blowing web site wiki leaks has consistently made it into headlines mostly in connection with his trial but now his name is on a different list that of more than two hundred nominees for the nobel peace prize his nomination was put forward by the parliamentary group of the movement of the icelandic parliament and we're joined now from reykjavik by one of its members bridget a young dog. so thanks for joining us here out of all possible contenders why do you think bradley manning deserves this prize how do you think its actions contribute to achieving world peace well i mean one part of. who we should nominate and we don't want to be that bradley manning. because through all he said let's leav

recently, you have said, often, mrs. merkelat if the euro fails, europe will fail, but at the same time you said that the solution of this crisis is to go towards more europe rather than less europe. more integration. you mentioned that today. and i would ask you, you mentioned fiscal union. what do you mean exactly when you say fiscal union? isn't it what a lot of germans mean when they say transfer union. and are you going to be able to convince your own citizens to accept a transfer union? the fiscal union is not a transfer union. what we mean when we talk about the beginning of a fiscal union is what we have already decided. that is to say that the stability and growth, that which now is going to be binding. so we talked a lot about reducing the debt. people want to put that in their constitution sometimes. but for the first time, the european commission has the right to come and check whether the member states have really translated the stability pact in their legislation. and if they have not done its, the european court

recently, you have said often, mrs. merkel, if germany fails, europe will fail, but yet at the same time you said the solution of the crisis is to go towards more europe rather than less europe, more integration -- you mentioned that today -- and i would ask you, you mentioned fiscal union. what do you think exactly when you say "fiscal union"? suspect can what a -- isn't it what a lot of germans say when they mean a transfer union, and can you convince your own citizens to accept a transfer union? >> translator: the fiscal union is not the transfer union. what we mean when we talk about the beginning of a fiscal union is what we've already decided, that is to say stability and growth, in fact; which now is going to be binding, so we talk a lot about reducing the debts, people want to put that in their constitutions sometimes, but for the first time, the european commission has the right to come and check whether the member states have really translated the stability pack in their legislation. if they have not done it, the eur

mr. scheuble's comment about a bottomless pit, chancellor merkel is rather seen as a sympathetic figure.forthright after that comment in a saying that germany wants greece to stay in the eu. so you have three bogeymen at the moment. you have got the troika. you have, indeed, god germany. but, most of all, you have greek's own politicians. >> what is going on in brussels? what is the general mood among greeks? is there hope that these talks will actually improve people's lives? >> i think most greeks are expecting another shoe to fall, because the full details of these new austerity measures from of the last week have not been fully revealed to greeks. so i think they are preparing themselves for more austerity, even above what they're dealing with at the moment. >> ok, thank you so much for that update from athens. >> more consequences from the standoff in the persian gulf. the price of crude oil has surged to a new nine-month high after iran's move to shut off deliveries to france and britain. a barrel of benchmark north sea crude now cost $120. tehran is threatening to cut off oil to t

mr. geithner is taking a very active role in what's going on. >> in essence, he's at loggerheads with merkelt the money in. it's not about guaranteeing things anymore. merkel is under huge pressure not to raise the german contribution and actually similarly geithner is under huge political pressure not to raise the u.s. contribution to the imf. and that's the game that's going on. and arguably, he's right. it's europe's problem. >> right. but he did open the door a crack implying they might go along with some kind of modest contribution. i want to put up what we've been doing this week. it's interesting that while germany is fractionally positive for the week in the u.s., the s&p is up fractionally, the southern european countries, you'll notice a little bit of a disconnect that's going on here. here in the united states, we're quiet even though the consumer confidence numbers were good, the new home sales numbers were pretty good. the bottom line is the g-20 meeting is going to be over this weekend, which is going to be a little bit of a contentious issue. maybe people are stepping back in