eu level and national level. thank you for raising this. europe will not make a decisive forward step towards being an integrated single market with the appropriate policy instruments at the eu level until this is remedied. >> as the prime minister said, we have to be sure that he gets to the white house on time. he also has to have a bite of lunch. so we have time only for two quick questions, the two at the head of the queue, ask your questions one right after the other and the prime minister can choose how to respond to the two. >> mr. prime minister, you described germany -- [ speaking foreign language ] >> you described germany as being a social market economy. you said that the central government in europe should become bigger. don't you fear that your message may be taken in the wrong way within the republican candidates? more seriously, how do you respond to the constant allegations we hear in thepe is socialist country and is moving in that direction? >> go ahead and ask the second question and respond. >> thank you very much. prime minister, my q

if it does not, the eu will cover about a third of that sum. t it is still not certain that all the private creditors will accept the voluntary hair cut. that will become clearer in the coming weeks. and then there is concern over what greece will actually do with all those billions. the deal hammered out in brussels on monday allows the imf, the eu, and the ecb to directly monitor financial activities in advance. >> the debt will be primarily serviced using the new bailout money which will be placed in a special account with the relevant bank. that, in turn, will be monitored by the troika. >> now the pressure is again on athens to prove its can push through the necessary reforms. there were. riots recently when the parliament approved 3.2 billion euros in extra spending cuts. the government now has an even tougher path ahead of it. >> so we do have a deal, but there are some loose ends remaining. for some analysis, let's bring in nina in brussels. is this package enough to save greece from default? >> the greek finance minister hailed the deal

, the finance ministers saying the eu puts a lot of pressures on us to maintain the budgets. certainly we are not ready to have in the future a greater eu budget. but i think this makes no sense. it is a matter of economies of scale and provision of public goods some of which can only be provided at the level of the eu. it can be applied but a change of mentality we are looking towards. the important the whole of the eu policy becomes more growth oriented. this will in the end also generate some demand expansion across europe which purely supply side reforms will not in themselves generate growth. >> let me ask you again to elaborate on a couple of comments you just made about the evolution of europe. you are now prime minister of italy but for a long time you've been one of the architects of europe. you've been on many commissions, written many reports about the future of europe, not to mention ten years implementing europe as a commissioner. as europe works its way through

eu in a tough spot. china is its largest trading partner. chinese tourists spend a lot of money when they visit. if they do not pay, the eu could ban them from coming into europe. is that likely to happen? >> that is very much a last resort. i do not think anybody wants to get to that sort of ultimate outcome. what we have right here -- months before the permits have to be submitted, we really need to see this getting up to a global level, a solution through the new un body, which is responsible for it. >> they are saying that this regional fix will not work. they need to do this on a global scale and bring in them. >> thank you. >> the spanish cyclist has been banned from the sport for two years and stripped of his 2010 title after being found guilty of a doping offense. contador's suspension will last until august this year. it also stripped him of all his wins during 2011. he tested positive for the band anabolic agent and said he ingested it by eating a contaminated stake, which satisfied spanish authorities, but was rejected by the international cycling union. >> people who run away from their own country

eu has in place against any country. this program was to be extended on monday when the foreign ministers met, but then that did not happenbut some countries, like poland, pushed for it to happen, that more people were going to be put on the list. and the eu did decide that. so that is what triggered president lukashenko's reaction, that he requested that the polish ambassador and the eu envoy leave belarus and return to the capitals for what he called consultations. in a gesture of solidarity, lady said we're all going to withdraw our ambassadors -- lady catherine ashton said we're all going to withdraw our ambassadors. >> the strategy against belarus does not seem to be yielding results. >> like i said, more than 200 people are facing sanctions from the eu. but just how effective they are, nobody knows. the eu is working on another level, which is they are trying to support the opposition from the european union. they have an extensive network of support programs could universities offer for young students, and they have to change the bill region society in the long run. >> thank you for that from brussels. >> egyptian

the eu's economic chief made clear today in brussels. they said the vote alone was not enough to release the money and we're still waiting on the report from the troicha. they still have to tell the eu where they additional take an additional 325 million euro cut. domestic politics in greece continue to trouble the you. -- trouble the eu. they want signatures from all of the coalition partners that no matter who the next prime minister will be, they will stick with it. >> cutting spending will not get the greek economy back on its feet in itself. will the eu do anything to help? >> cutting spending is a necessary condition for the money to be released. reese needs it to pay its debts. without that money, greece will be bankrupt on the 20th of march when the debts are due. the eu is also working to try and get the greek economy back on its own two feet. they have to put together a task force which is, for instance, helping them get the administration back in order but it will take years. >> thank you for joining us, nina, from brussels. >> the greek crisis has been a big

. >> whether or not it's enough, eu finance ministers had not gotten enough documentation to tell them they actually had achieved all the mettics they were going after. >> one of the party leaders said sunday night that he wanted people to vote for this in the hopes later on they might be able to renegotiate it. that was the most e-mailed comment, that does not make the european leaders more trustful of the greeks. the new drop-dead date, march 1st, another summit meeting, this will be discussed. there may be a euro zone finance minister meeting next week as well. here's the bottom line, loob loa little toppy, most of the big groups, materials and financial, energy all had been leaders since the beginning of the year, that has been rolling over in the last couple days. >> thank you, bob, we'll watch. break down the movers and shakers. brian shachman. >> we were headed toward 100 points but we're not. in terms of leadership, hewlitt packard, financials are weak, dupont down 2%. david faber confirming talks breaking down over assets in yahoo. down 5%. other red, masco, first solar down 7

eu level and the nation levels. thank you for addressing this. europe will notegrated single market with a perforated policy instruments at the eu level until this is remedied. >> as the prime minister said, we have to make sure he gets to the white house on time. we have time only 40 dead quick questions. the two at the head of the line, ask your questions one after the other. the prime minister can choose how to respond to the two. >> you described germany as being the a social market economy. he said the central market in europe should become bigger. that you fear you're marked -- do you fear your message could be taken the wrong way with republican candidates? how the response to constant allegations we hear in that the debate that europe is a socialist country and america is moving in that direction? >> my question is regarding germany but someone different. germany has grown rapidly, but they have a surplus. italy has grown slowly and has a large deficit. is this a sign of major competitiveness loss of italy vis-a-vis germany and the rest of the world? how

the eu coordinator says they will not resume talks unless iran is prepared to discuss concrete confidence-building measures without preconditions. last month eu announced plans to ban iranian oil imports in its toughest economic sanctions to date. japan's prime minister they met with israel's deputy minister. he told noda he wants international partners to cooperate and take tough measures against iran, including strengthening economic sanctions. noda said japan shares the concerns and is willing to cooperate through talks to put more pressure on iran, but he warned military action would only escalate the situation. noda wants a diplomatic and peaceful solution. >>> investors worry there might not be enough oil from iran. ai with that story, ai, good morning. >> good morning, there was definitely a scare over oil supply overnight. that's because there was a report from iran state-run media that the country would stop oil exports to six eu nations, including greece, italy, and spain. that sent crude oil prices surging on wednesday. the bench mark in new york exceeded $102.54 per barrel for the firs

even if they are not based in the eu and process data from outside. >> but legislation alone will not solve the problem. the german government says users need to be more careful with their private data on line. >> make sure you do. we will have more on safer internet day coming up. >> first, a round of other stories making news this hour. air france has canceled hundreds of flights on the second a strike by pilots, flight attendants, and airport staff. the four-day walkout has been prompted by draft legislation that would make it more difficult for aviation workers to go on strike. >> the president of the maldives has resigned after a police mutiny. a group of officers joined a protest against the sacking of a judge. a successor has already been sworn in. >> authorities in eastern australia say flood defenses are expected to hold as water levels reached their peak. so far, it has destroyed hundreds of homes upstream. thousands of queensland residents have been ordered to evacuate. >> coming up later in this program, the treaty that set up the rules for the euro turns 20. we look at th

the eu coordinator says they will not resume talks unless iran is prepared to discuss concrete confidence-building measures without preconditions. last month eu announced plans to ban iranian oil imports in its toughest economic sanctions to date. >> japan's prescribe has urged israel to avoid using military force to stop iran's nuclear development. >> he wants cooperation including strengthening economic sanctions. >> and would be extremely dangerous. noda called on israel to seek a diplomatic and peaceful resolution. >> in other news, investigators in bangkock are hunting for clues following explosions that wounded five people. the assailant, the unite and israel have suggested the blasts could be linked to earlier incidents that took place in india and georgia. nhk world has more. >> reporter: 24 hours after three explosions rocked central bangkok, two of the three suspects have been arrested. police say both men hold iranian passports. they've been charged with causing an illegal explosion in a public area and attempting to kill police officers. the blasts happened one day after a car bomb wen

they have not gotten them from the eu. condly, it's not clear to what extent the private sector involvement is ready to sign off. number three, they have not received any details on how to close that funding gap, that 325 million euros they're looking to save. and finally, there's greek debt sustainability analysis supposed to come out tomorrow. it's not clear to what extent that is completed. the bottom line is there's an awful lot of moving parts that's uncertain. it's not clear at all if the euro finance ministers are going to approve that bailout tomorrow. it's looking somewhat unlikely. the euro to the downside. take a look at the s&p 500. all these headlines start coming out before noon eastern time when the markets started drifting lower. the major sectors that are weak today, the ones that have been the market leaders, your material, your financials and industrials, since january 1st, there's been your leadership group, along with technology. those are the stocks, those are the sectors that are weakest right now. ba

eu and imf leaders. >> we will hear the report on the state of negotiations. i do not think we will have any results tonight. those are the signs. the talks are well advanced, but they are not that far along yet. >> but unity in the greek parliament is being met with anger on the streets of athens. the greek public is opposed to more painful spending cuts. unions are keeping up the pressure on the government ahead of a 48-hour strike to begin on friday. >> let's pull in our brussels correspondent. germany's finance minister just telling reporters that we are not there yet when it comes to dishing out the money to greece. what more does brussels what? >> eu economic affairs chief said it as well -- they want concrete action such as legislation. in the past, the greeks have met a lot of promises, but some things were just never fulfilled, partly because the right structures were not in place, and greek interior politics also plays a crucial role. we are dealing with a government under prime minister papademos, and the europeans want a signature that no matter who the gre

. >> the eu will not compromise on this issue. it wants to show international leadership in addressing climate change. >> does not reach the principle of sovereignty. if you want to operate in europe, you have to respect the law, you have to respect the environmental law. >> no one can agree which country should be responsible for co 2 that airplanes emit, nor does the protocol address the issue. it looks like there will be no early end to the deadlock. >>> it was warmer coming to work. i left my umbrella home. it may not have been the wisest choice. here is the world weather picture for here and elsewhere. >> hello, welcome to your weather update. let's begin with east asia. we have a long frontal lane from china up to southern japan that's bringing widespread rain. as it moves eastward, the whole of japan will be affected by today. and the pacific side, will see the heaviest rain, about 100 to 150 millimeters are possible in the next 24 hours. thunderstorms and gusty winds are expected as well. back behind it, a light snow in th

under any agreement, the economy would be monitored much more interested leave by the eu officials. it does not end there. -- the economy would be monitored much more intimately by eu officials. private banks are writing off a huge chunk of greek dead. it is unlikely that the debt burden will be anywhere near sustainable. that means that even more money these to be found. there is no one lining up to pay. it is because there is a real lack of trust now if greece is willing or able to implement a soft tough reforms. -- such a tough reforms. trust is not easily regained. >> on the island nation of mal dives, is the political situation is worsening as they're calling for new elections. a u.n. envoy is in the country trying to resolve the deadlock which has triggered several days of violence. >> a show of force, soldiers and riot gear and outside of the main mosque as worshipers gathered for friday prayers. among them was the island's former president. afterwards, he came out to a hero's reception from his supporters. officially, he is facing arrest but for now he is still a free man. yet again, th

banks will freeze any assets linked to the iranian government, not just transactions. the euided to toughen its sections, banning imports of iranian oil from july. iran has threatened to block the shipment of oil from the gulf by blocking the strait of hormuz. one of the u.s.' main concerns is that israel could strike against iran on its own. obama said at the weekend he did not think israel had yet decided whether or not to do that. >> let's go for more from washington. our correspondent max hoffman. why this move by the u.s. at this time? >> there seem to be to the major reasons. number one, spy agencies in the u.s. have concluded that iran has crossed a line, that there was a willingness within iran to conduct terrorist attacks on u.s. soil. extremely alarming, of course, for the public in the usa, and we might have seen a glimpse of that for the plot to kill the saudi ambassador here in washington at the end of last year. there was an alleged role of iran in that. the second reason, of course, is the nuclear program by iran. like many other western countries, the u.s. jus

disappointed giants fans are not this morning. eu everyone? >> that's for sure.was your favorite moment? >> that catch by manningham. it was amazing. i watch it over and over and over. he knew what he had to do. he barely caught it, and got both feet down inside the line. he did it. it did end up be a real turning point in the game. >> tracie potts, we know you're tired. thanks so much for joining us this morning, live from indianapolis. take care. >>> walter reed medical center through a big super bowl party for our nation's wounded warriors. lots of food and cheerleaders showed up to take pictures. doctors say the annual party helps the healing process and gives wounded warriors a break from rehabilitation. >>> the super bowl means it's time for the super sweepstakes. you can win lunch with the news 4 11 team. go to our nbc facebook page, nbc washington facebook page. like us. you must enter by 10:00 this morning to win that lunch. >>> breaking news right now this morning a 6.8 magnitude earthquake hit the philippines. right now the death toll is at 13, but man

the u chief economics -- the eu economics chief said he expected the deal to go through, but that would not be the end of the euro zone problems. >> we can then turn the page, turn the corner and go to sustainable growth and job creation, because that is what is needed in europe right now. >> the package, without which athens will go bankrupt in mid march, is centered on a 110 billion pound bailout fund. much of it will go to a deal that will seek billions of pounds of greek debt written off. private lenders will see a reduction of 70% in the money that they have invested in greece. in brussels, there is a sense that this deal will finally go through. the french finance minister has said if it does not, there is a risk of a systemic crisis across the whole euro zone, seven here, they will say they have rescued greece and once again, and yet, at what cost to the people of greece? in athens overnight, there was more violence, while protests about what greece is being asked to do, and on the streets this morning, a sense that the public-sector job cuts, reductions in pensions and minimum wage

we will be back in one minute with more international news. >> do not go away. ♪ ♪ ♪ ♪ >> welcome back. as we heard earlier, the euourting china and the hope of getting support for the single currency. >> china is not the only fastest-growing economy that europe has its eye on. latin america holds the prospect of massive growth and trade. >> germany's foreign minister is in brazil right now to nurture a relationship with what is already the world's sixth largest economy. >> this is the second time guido westerwelle has visited brazil as foreign minister. trading has increased significantly over the past yer. at a meeting with his counterpart in the capital brasilia, westerwelle praised brazil's recent economic development of the german foreign minister also said there's no way past brazil one facing global issues. >> brazil is much more than an economically successful state. it is new power center, a new power that is shaping the world. and if we want to achieve something globally from environmental protection to security and peace, then a regular exchange with brazil is advisable and appropriate. >> brazil's econ

eu funding here in our region. our community has put in numerous bits, but we still have not seen any money. do not ask me where, but somewhere, there is a bottleneck. >> the consulting firm is hardly surprised by the delay. it says eu funding that actually arrives in romania is the exception rather than the rule. >> politics determines how money coming to romania is distributed. if you have no ties to a governing party or the ministries involved, you do not have a chance. >> that is bad news for barney. when he gets home late from school, his mother barely has time to help him with his homework. she works nights at a bakery. >> it pains me that i can no longer help my son with his schoolwork. you really see it in his grades. he is having a hard time concentrating. but i have to work. otherwise we could not survive. >> it would be easier if she could help. after doing his homework, barney helps out his father, who runs the farm. the farmer has also tried his luck with eu subsidies. he wanted to buy a tractor and a couple of heads of cattle, but nothing came of it. >> you cannot beat the bure

>> in theory, they do, because if greece were to not meet the conditions of the imf and eu of this country could have a disorderly default perhaps in three or four weeks and could eventually drop out of the euro. that is the theory. in practice, it is very unlikely to happen, partly because of the fear of what might happen were it to take place. the fear is that banks here would collapse, that savings in your larose would become worthless, as banks will send list of lending to greece and what not able to access the market. and beyond the borders, the fear among the is in eu lead to contagions and other indebted countries like portugal and ireland, they might look and say if greece can default on its debt -- debt, why can't we? a general lack of lending to countries like ireland, portugal, perhaps even italy. that is why it is not going to happen here because the fear of default, greece leaving the bureau, is simply too great at this stage. >> thank you very much. still to come on "gmt" -- falling further than anyone has fallen before. it daredevil's -- a daredevil prepares for his latest s

eu. they escalate the debate pitting beijing against brussels. we're being joined from beijing. this looks like it's a major escalation with beijing stepping in and saying to its airlines that you are notn eu directive. why is beijing taking such a strong stance given that the aviation industry in china is probably one of the most robust in the world? >> reporter: well, andrew, china has long been opposed to this scheme. they called it an improve tax. they called it an unfair trade barrier. like a lot of other countries around the world, including the united states, beijing has said that this particular program breaches international law. now the purpose of the eu program is to help improve the environment. it's to curve climate change, gas emissions. china is one of the biggest offenders of this. of course, they say they aren't against that idea in principle, however, they say that this particular scheme is too one sided. there's also a lot of concern here about the financial impact of the european scheme. the estimates here have been that the chinese airlines would lose over $120 million a year, again, from a tax which they believe is improper. andrew? >> so where does it go from her

. >> the fear of recession in the eurozone is not new, but the fact that the eu commission said to loudnd clear the danger is great that the eurozone could fall into recession dragged down the mood here on the frankfurt floor. share prices are falling again. in the morning, the mood had been far better after the -- has been issued. the business climate had rose. this shows the prosperity of the german economy. investors are thinking germany stands alone at the moment in the eurozone as a very good economy. >> we will have a closer look at thursday's numbers. and the dax ended the day down 0.5%. a more positive picture across the atlantic or the doubt is trading at 12,970 points. and the euro trading higher against the dollar. >> alright. thank you. the debt crisis in europe, especially greece, is weighing on financial companies. the insurance giant allianz set profits dropped, largely due to write-downs from greek debt. it is the same story at commerzbank. commerzbank says it has written off nearly three-quarters of its portfolio of greek government bonds. drops for deutsche telekom. th

goldman would like to be sure they would not be in trouble for helping greece. the company says it spoke to the eu accounting agency about the deal and has provided us with an e-mail proving that discussions took place. we asked for an interview but they declined. "we would like to confirm that we became aware of the greek transactions only in the beginning of 2010. the greek authorities had never informed us about the complex issue and no opinion has been requested. it is possible that goldman sachs asked us for general clarifications and this is our interpretation." >> for many, questions remain. why were they looking out for greece in the interest of the eu as a whole? how could they stay blissfully unaware until 2010? even the greeks themselves are concerned about the dodgy statistics. >> we wrote a letter effectively. kosh the government at the time for what they were doing. three months later, we got a letter back saying that they have investigated and everything is above board so we had better shut up. >> the 5.7 billion euros now owed was only a small piece of the 350 billion euros that gr

coming through not just from greece and portugal -- the drag coming not just from greece and portugal, but from the netherlands. he is the eumissioner for economic affairs. he says although the figures are not great, there is some cause for optimism. >> compared to our november forecast, prospects have worsened and risks to the growth outlook to remain. but there are signs of stabilization at the same time, especially in the more recent time. >> timing is everything on this. you have this report, and a very influential survey that shows business sentiment is on the rise for february. >> thank you. two members of international force in afghanistan have been shot dead by a man and afghan army uniform. it happened shortly after the taliban called on all afghans to kill westerners in retaliation weree copies of the cross koran burned. crowds took to the streets in seven provinces in the northeast of the country. in some places it ended with violence. to g>> we can go to kabul for te latest. our colleague is there. >> as the violence spread across the country, president karzai has been holding crisis talks with afghan politician

be one of the components today would not have been there if it had not been for the continuing pressures exercised by the framework of eu policy making. and if i were a german citizen, i would be proud even looking at greece of the fact that the most successful of all heavy engineering products of germany, the euro, through the distribution through europe has brought the principles of budgetary discipline, market economy and all that to even the most peripheral and culturally less prone, least prone part of europe. i think trance formations in other times that require, i don't know, a generation are now being put in place. i hope -- i hope in a nonreversible way. but this remains to be seen in just a couple of years. of course the monetary union was there in the construction. but a jigsaw where some key pieces were missing when i last was here to deliver a few reflections in 2006. as we know, it was both an economic and political project that was meant to complete the think i said on that evening here the euro is meant to be the cherry on the cake of the single market. but many of the problems were coming from the fact

eu at all because look at hungary. we still have to bail out hungary and they're not even in the eurozone so we still have that stone around legs, as it were trying to bail out a country even outside the eurozone but inside the eu. not to mention the ramifications this would have for the european integration process, et cetera. i think if it's talked about, it's a completely hypothetical question still that let's say the romantic notion is a solution. i never saw it and the politicians i talked to don't see it as a solution. >> all right. thank you so much, silvia, for that. meantime, george is going to stay with us, the founding partner and fund manager at natterly. we will be talking about barclays, in fact, the bank is slashing its 2011 bonus pool by 25%. it seems that you have tons to say about it. in fact, if you are curious about bonuseses or have some comments feel free to e-mail us. >>> let's get on to what's going on at barclays in terms of the earnings as well because they suffered losses in its investment banking arm. we saw impacts in the eurozone crisis hitting revenues in addition to the banker bonus issue. i

eu summit starts thursday. but the european union is not expected to increase the amount of the bailout fund, at least not at a summit this week. the group of 20 finance ministers and central bank chiefs called on sunday for the eu to strengthen support for the most debt ridden eurozone countries. eurozone leaders are debating whether to raise the lending ceiling of the bailout fund from the current 500 billion euros. but germany, the largest contributor, is throwing cold water on the plan. chancellor angela merck he will said they see no need to crease the capacity of bailout fund. the banks are delaying any decisions on the fund and have yet to complete debt reduction procedures needed to support greece. >>> over in the united states, consumer sentiment soared. u.s. research firm the conference board says its index of consumer confidence surged nearly 10 points in february. that's the first time the index has topped 70 in a year, and that's against a base value of 100 set for 1985. upbeat data in jobs and housing is boosting u.s. consumer confidence. the index has been rising since bottoming out a little over

greece and the european union have not been able to narrow their defenses. the eu is said to have called for spending cuts while the greek ruling parties have agreed to only a 1.5% reduction so far. tension is mounting in the country as labor unions continue to stage strikes to protest the proposed austerity measures. european commission president manuel baroso has urged greece to accept conditions for the bailout package. baroso said all is focusing on greece. >> it is very important not only for greece but the euro to keep greece in euro. for that we are urging the political parties in greece to make a commitment to the common goals. i think it's very important for them. >> and on the tokyo foreign exchange, the yen is lower against both the dollar and the euro this wednesday morning. that's on easing concerns over europe's debt problems. right now the dollar is trading against the yen at 76.92-93. investors are selling the yen and buying back the dollar and euro. that's on speculation that greece and the eu will soon reach an agreement over an aid package. share

greece and the european union have not been able to narrow their differences. the eu called for spending cuts worth 2% of gdp, while greek ruling parties agreed only to 1.5% reduction so far. tension is mounting as labor unions continue to stage strikes to protest the austerity measures. greece has been urged to accept conditions for the bailout package and said all of europe is now focusing on greece. >> translator: it is important not only for greece but for the euro and european project to keep greece in europe. for that, we are urging the political parties in greece to make a commitment to the common goals. i think it's very important for them. >> all right. let's check the markets now. the dow-jones rose to the highest level since may, 2008 overnight. let's see how stocks are opening. for that, we go to ramin mellegard at the tokyo stock exchange. ramin, good morning. what can you tell us? >> very good morning to you, ai. let's look at the opening levels for nikkei and topix. straight away, markets are higher. yesterday, the nikkei closed a touch lower. if you lo

the key words for the eu/china relationship is cooperation. not rivalry.t makes this partnership specific. we both wish to live in a world not dominated by one currency alone. and that is why a currency for europe is vital for you, too. >> and rompuy quoted the 17th century english writer who said no man is an island, he's part of the main. as for this man here, european commission president jose manuel barroso, he added that the eu is assuming full responsibility for its own debt problems as it goes cap in hand to china. >> we are taking all the necessary steps to ensure stability of the continents and play our part in global solutions. this is a long process. i've been saying it. we share the experience and the virtue of endurance, resilience and perseverance. we have the strength and we have the will. >> barroso says eu has the will, china says they are will be to help still no concrete pledges to buy that debt as the summit ends today. what happens next? head to cnn.com and check out this latest article, "will china come to the eu's rescue." nina? >> m

and i hope your advice to bernanke would be all iranian banks, not just those that have been sanctioned by the eu. >> thank you, mr. sherman. thank you, madam secretary. mr. burton, the chairman on europe and eurasia is recognized. >> madam secretary, nice seeing you again. "understand there was an indication that we might open some dialogue with north korea. i just checked and we gave north korea during the clinton administration over $1 billion in fuel and food aid as well as money we spent building their light battewater reactor. and, of course, they violated their agreement they made. i only reason i bring that up is i hope if we start a dialogue with them we realize that their history is one of -- that they certainly can't trust. and even though kim jong-il is gone and we have a new leader, there i think it's extremely important that the state department get everything written in blood, so to speak, to make sure that we're not shaft at the end. recently dom donovan and the chairman of the joint chiefs went over to visit israel. and the tone of the reports that i received and, of course, all

eu mission has been active here -- since kosovo became independent. the mission includes police and customs officials. >> as for now, there has not been much to do. there have not been many pedestrians or cars coming over. >> it sounds like a dream job, but it is actually a sign of tension. some 30,000 serbs live along the border. they do not recognize kosovo as an independent country. the dispute has become increasingly fractious since the summer. radical serbs have positioned themselves near the border checkpoint and are deciding who can cross. officers from the e you are not allowed over. that is because the europeans are bringing kosovan police and the albanian minority, aimed at showing the serbs that there is a real border here. but serbs are unwilling to run the risk of having an ethnic albanian stamp their passports. no serbs come to the country this way, not even bus drivers. they wait here along the smugglers route, just a short distance from the border crossing. >> we will cross there again when they take away the container from the customs officers. >> people cross the border illegally because they do not accept it. bus drivers drop t

not seriously hurt. >>> there is word that the eu has come to an agreement to hand greece its second bailout package. a diplomat tells the associated press the country will get $170 billion in loops to help prevent a massive default. >>> republican presidential candidate rick santorum is feeling the heat. already under fire for pointed remarks aimed at women, now, he is fighting back a new round of attacks from fellow republicans. tom fitzgerald has more. >> freedom isn't to do whatever you want to do. it is to do what you ought to do. >> reporter: newly minted frontrunner rick santorum is having to explain himself after comments suggesting prenight enatal screenings lead to abortions. >> we know that 90% of down syndrome children in america are aborted. >> reporter: in ohio, santorum said his remarks are being twisted. >> i got criticized by some of our members of the national press corps who have difficulty understanding when you refer to someone's ideology. >> reporter: but the abortion flap comes the heels of this remark. >> back in my days, they used bayer aspirin for contraception. gals put it

. >> make no mistake, the eu officials are not negotiating with the greek officials on this, they're talking to everybody else complicitly. not literally. but whatever deal they come up with for the greeks, everybody else is going to want some of that, if it's favorable. >> let's see if we can get confirmation on the points brian just read. there are unconfirmed reports that the politicians agreed they're talking about a 20% cut in the minimum wage, maybe about 150,000 jobs. the average greek citizen makes $12,000 a year. that's the minimum wage. 20% cut would be $9,600 a year now. that's significant. imagine if that happened here in the united states. >> really important point. thanks, bob. see you a little later. let's look at some of the movers and shakers that has the dow flat on the day. over to you, brian. >> we just did turn green in the dow. i want to look at the heat map. gainers over decliners, on about a 2-to-1 basis here. disney had solid profits, espn, movie studio, disappointed a bit. it traded down in the pre-market. but you see it's completely reversed. people in the

they do not feel there is legitimacy to impose this tax. the eu is saying, why don't you just come up with an alternative that will satisfy all parties? this is a complicated area. he says there is a way around the problems without either side losing face. >> it will be difficult to extract it, if they are determined not to put up the cash. the trick will be to allow that to happen while engaging in serious negotiations, so it does not seem that the countries are simply [inaudible] >> the interesting thing about this, the u.s. congress voted to exclude american carriers and china has threatened to suspend a free-trade deals. >> staying with airlines, the indian airlines, they are experiencing a bit of turbulence to save the least. >> this is a very interesting company. it was founded in 2005 by a billionaire, who made his fortune from growinbrewing. the company is having a tough time. almost 40 flights were cancelled on monday and another 30 cancelled today. he blames the tax authorities in india. he says they have frozen the company's bank accoun

. >> brussels says it will freeze almost half a million euros in eu funding for hon. the country does notp its fiscal policy by the start of next year. the european commission said the move was prompted by budapest's failure to cut its public deficit. >> in new zealand court has freed the accused internet pirate kim dotcom on bail. he was arrested last month. the german national is accused of costing the entertainment industry millions in lost revenue, and he faces extradition to the u.s. >> divers searching the capsulized costa concordia cruise liner say they found four more bodies inside. authorities say two have been recovered, and women and a 5- year-old girl. the costa concordia ran aground on january 13 of the italian island italiangiglio, with some 4200 passengers and crew on board. 21 bodies had been found, with another 11 people still missing. >> most of us know someone whose life has been touched by cancer. >> 12 million people around the world will come down with some form of cancer this year alone. >> oncologist and cancer researchers are gathering here in berlin this week to

>> that is why warm words, but we did not see the chinese leader digging into his pockets. the eu leaders are in town. obviously, the back stroke is the continued economic crisis in europe. this summit was supposed to be held last year. it was postponed because of the financial crisis, which is still going on today. what with european leaders like to see what would european leaders like to see? -- what would european leaders like to see? president obama has made very -- premier wen jiabao has made very warm words. as of yet, we've had no firm commitment that china is willing to invest in european government bonds. >> when van rompuy talks about interdependency, he has a point. there's not much for china's economy if the rest of the world and europe is going downhill. >> the eurozone is the biggest economy in the world. it is china's biggest trade partner. trade is over 1 billion euros every day. china is the largest exporter in the world. interestingly, a report came out last week from the imf. it warned that if the eurozone crisis deepens, it could have a huge impact in china. it