don't worry so we now are joined by writer and patrick young i thank you for joining us today so tough budget cuts in italy are now a step closer to reality will that help to deal with the debt without taking its begging bowl to the e.u. do you think already i think it's going to be a huge problem for italy because the difficulty is the cuts are good in one way forty seven billion euros start to be helping hand but the problem is that mr skilling in the presence of the prime minister of italy is deter trying to push back the cuts so they won't take effect until twenty thirteen well that's a long way away you look at how much the world is moving at the moment just from what we do the next year together in order to and you can see that the whole problem is that we are facing a contagion it's interesting how you say he's pushing about a two thousand and thirteen is not exactly a quick fix or right there we've already witnessed the reaction to a budget cuts in greece will italy now be swamped in civil unrest or the people just going to take to the streets. well you know it's one of those t

s biggest economy debate the very legality of the bailout more on this we're joined by patrick young a writer and editor life in poland. thank you for joining us today mr young so moody's the rating agency behind the move has been involved in a number of scandals from claims of blackmail to labeling junk assets out. aaa back in two thousand and eight when liable for their writings well look this is the really interesting situation isn't it really i mean what we've seen is the european union to three years ago said the problem with credit ratings were that their their ratings couldn't be trusted then all of a sudden when they actually come up with plausible ratings against the european union suddenly the finance ministers such as mr showed lar saying that oh these are discreet small companies because actually they're trying to get at the truth the situation is absolutely true i mean a company like moody's which had i think a largely french organized department doing european sovereign debt until quite recently got many things absolutely wrong in the boom in the bubble but actually one

state rescue while the fun for debt stricken nations is to be increased but economic journalist patrick young told me it's far from the end of the crisis. but i think it's going to prolong the agony unfortunately a lot more money has been thrown at the greek economy in the hope that that can stop the contagion but really a lot of it just looks like hype and i'm very very concerned that we haven't actually find a cure we've just got another sticking plaster you know what really the european union are trying to do here is they're trying to staunch the blood that's flowing the money that's flowing out of the greek economy that can has been kicked down the road the danger of contagion still leaking to other countries such as ireland portugal even italy and spain are there and therefore we don't have a cure but what we've seen so far unfortunately looks like hollow words and hollow words do not inspire confidence in markets and that has got to be some degree of a problem for the euro in the longer term the sense of impending doom is being felt among european economists and politicians for some tim

says the country's credit rating could be at risk if austerity measures on taken economics author patrick young believes paris developed these problems long ago. the problem is look these aren't things that have just happened suddenly i mean the french budget deficit has been in a deficit the french budget since one thousand nine hundred seventy four i mean these are things that have been going on for thirty or forty years it's absolutely ludicrous and truthfully governments need to stop spending and they need to be very realistic about their budgets and there are fundamental problems going all the way through the euro zone and we don't have any leaders who are willing to give us a sustainable solution this is typical of contagion we've been talking about it for weeks we have you know when you get some degree of illness and it goes through the body ultimately you have to decide when to amputate it and the truth is we should have amputated greece from the euro zone long ago we've got the situation at the moment where provincial libraries in northern germany are being closed because the money isn

failed stress tests to see if they could survive another major economic crisis financial writer patrick young says the italian people's response to the budget cuts will be even more chaotic than in greece where. there will be one significant difference between the people who take to the streets between greece and italy and that is that greece at least thank goodness the taxi drivers don't go on strike where is nuclei expected almost everybody is going to end up on strike and it's going to be absolutely chaotic the only way they can slip this through is perhaps because we do have this long lead in time until the cuts really start to make an impact in two thousand and thirteen but i think the problem is in the meantime a large amount of the sort of the leftist opposition in italy for see the fact that silvio berlusconi due to many of the reasons most of which are outside of the direct school reason are well i mean he's a wounded animal at this point in time and in some ways i think that he's going to be finding it very difficult to hold his government together there are big problems in western

body made it clear the block is committed to saving the euro at any cost but economic journalist patrick young says it's only a temporary kill patching over the inherent flaws of eurozone finances. ultimately a lot more money has been thrown at the greek economy in the hope that that can stop the contagion but really a lot of it just looks like hype and i'm very very concerned but we haven't actually find a cure we've just got another sticking plaster what really the european union are trying to do here is they're trying to strong the globe but it's flowing the money that's flowing out of the greek economy it can has been kicked down the road the binge are of contagion still leaking to other countries such as ireland portugal even italy and spain are there and therefore we don't have a cure what we've seen so far unfortunately looks like hollow words and all of the words are not inspire confidence in markets and that has got to be some degree of a problem for the euro in the longer term and as the world watches whether a second bailout or finally turning fortunes around china may be using it a

says the country's credit rating could be a risk it all starts in question is taken economics or patrick young. these problems one of. the problem is look these are things that have just happened suddenly i mean the french budget deficit has been in a deficit the french budget since one thousand nine hundred seventy four this is typical of contagion we've been talking about it for weeks we have you know when you get some degree of illness and it goes through the body ultimately you have to decide when to amputate it and the truth is we should bump you to greece from the euro zone long ago we've got the situation at the moment where provincial libraries in northern germany are being closed because the money isn't there because it's being used to fund people in the mediterranean i think german voters are going to get very angry about that very very soon and i actually think the political will is not there amongst the people to endlessly keep bailing out their saw their neighbors. belgium is a hotbed of international politics and european representation over this prosperous country seems to me in

troubled states from believing more relief is on the way despite reckless boring and economics author patrick young says greens should have been pushed out of the eurozone although that. this is typical of contagion we've been talking about it for weeks we have you know when you get some degree of illness and it goes through the body ultimately you have to decide when to amputate it and the truth is we should have amputated greece from the euro zone long ago there are fundamental huge problems going all the way through the euro zone and we don't have any leaders who are willing to give us a sustainable solution we've got the situation at the moment where provincial library use in northern germany are being closed because the money isn't there because it's being used to fund people in the mediterranean i think german voters are going to get very angry about that very very soon and i actually think the political will is not there amongst the people to endlessly keep bailing out their saw their neighbors it's going to be a huge problem because ultimately the contagion is going to hit and i really do b

the use of the biggest economy debates the very legality of the bailouts but writer and editor patrick young says the rating agencies should have downgraded portugal and greece much earlier at a time when it was possible to find a cure for. the european union two three years ago said the problem with credit ratings where their their ratings couldn't be trusted then all of a sudden when they actually come up with plausible ratings against the european union so the only the finance ministers such as mr showable are saying that oh these are discrete small companies because actually they're trying to get at the truth but actually one of the biggest things that they don't wrong was the fact that they weren't being pragmatic enough when it came to the debt and the debt problems of the european union not there being almost and suddenly the politicians want to shut them up no realistically i think the question the ratings agencies must ask themselves because they were told here was why they didn't get better rates. a couple of years ago when it was absolutely clear to a large number of us that the e

converge on the capital this saturday with more rallies expected later on sunday financial journalist patrick young says bailing out failing economies will not help them in the long term i think it's going to prolong the agony unfortunately like everything we've been looking for for weeks we want to leadership from the european union and i think really the european union's own sort of. press conference just demonstrates what a shambles this whole proceedings is i mean we have to sit through umpteen different leaders all telling us who's actually in charge and what's going on they give certain parts of the information seems to be contradictory ultimately alone more money has been thrown at the greek economy in the hope that got to stop the contagion but really a lot of it just looks like hype and i'm very very concerned that we have to actually find a cure we've just got another sticking plaster on the can has been kicked down the road the danger of contagion still leaking to other countries such as our loan to portugal even italy and spain are there and therefore we don't have a cure ultimately we