how worried it is the you about portugal's financial health?-- how concerned is the european union about portugal's financial health? >> they are concerned. there is nothing worse than a national election to throw things in the air just when you think you have things settled. the european commission says in an ideal wld, that wouldlike a clear winner to bring political stability to the country and make sure that person, whatever government is in place, has the backing of the public and the austerity measures are therefore secure, supported, and can be implemented until the election is done. >> until the results are known, it looks like self protection will be -- it looks like there will be left wing kensley. what are you hearing in brussels about what needs to be done as soon as the government is in place? >> once it is a stable government, what needs to be done is get public support behind the economic reforms and the austerity cuts. portugal has agreed to implement a return to get the bailout package, the same formula for ireland and greece.

so often go to portugal. there are 50 boats on route to portugal. 136 containers. there are tents, people, juries, 100 television people. the america's cup world series is a big event. for us to assemble all of this and liz bonn, -- lisbon, starting the world series, major planning and logistical. we will pick up all of that equipment in portugal and transport it and reset it in plymouth some 30 days later. in the world series, today, we have the team that will be participating. the boats are and progress of being assembled, tested. more than just the five people on the boat. each boat will carry up to 25 people as part of their team to participate. of course, this is all about the america's cup coming here in 2013. the america's cup world series provides not only the background for the teams to practice, learn how to sail catamarans, wind sails, what with their sponsors to win the event, but it also allows us to educate us about the role that we raise in, educate the people out there fascinated by these boats, and allows us to bring it to the people, prior to comi

first degrees and no portugal. since january this year, the european authority has state -- a place tighter controls hot agencies. >> they are overlooking issues like government transparency and independence. it will improve the quality of ratings. >> it is del not enough. private companies should not be allowedo dictate where the financial markets. >> billy want ratings agencies to play a role in the regulation framework? if not, we must remove the agencies from the important role that we play. >> they have not yet taken shape. the struggling economies will continue to look nervously. >> appoint a postscript, it is important to remember that the ratings agencies did not warn of the financial crisis before it happened. the power of the ratings agencies, thank you for the company. u

in march, coelho unseated jose sack rats in debt-ridden portugal.us lisbon. let's start with what this means for portugal. we'll come on to the euro zone. in terms of portugal this is a significant shift to the right, is it not? t. is a significant shift. we should remind our viewers, charles, that the socialist party has been in six years before this. during that time, it saw it's debt to gdp balloon from just over 60% to projections of 107% the next year. that really gives you an idea of the public spending binge that this country has been on during the recessionary times. now, pedro koelho will be the new prime minister elect after last night after his party gleaned 38.7% of the vote and agreed to ally itself with the conservative party here. that means that these two parties will have 129 seats in the 230-seat parliament and that means they'll also manage to have a majority. a majority is crucial, of course, for passing the awe sta -- austerity measures. they were the third in europe to go cap in hand to the eu. speaking yesterday in his accepta

to honor the commitment between portugal, the european union, and the imf. we want portugal to win back the confidence of the market, which is essential for the country to recover. >> voters no longer address to the process to the outgoing prime minister. he stepped down as leader of the socialist party after its worst election results in two decades. >> in the southwestern united states, a huge wildfire has forced the evacuation of thousands of residents in the state of arizona. it has already destroyed some 800 square kilometers of forest. officials say they have not been able to contain any part of it since it broke out a week ago. high winds and extremely dry conditions are making fighting the blaze very difficult. under terms are switching across parts of germany after another day of warm and humid summer weather. it has caused chaos in some places, like here in homburg. roads were inundated.

portugal has had minority governments in the past. it had the socialist party in power for six years and during that time, debt to gdb ballooned from over 60% to over 107% levels that across the eu are unsusta unsustainable. now portugal's new prime minister-elect, pedro coehlo is going to be forming a party they'll have enough strength to pass through these badly-needed austerity measures during these tough time. >> thank you so much. >>> well we should know in the next few hours, if the source of europe's deadly e. coli outbreak is a sprout farm in northern germany. 22 people have died and more than 2,200 have been infected in 12 countries. german officials haven't yet found traces of the e. coli bacteria at the farm, but they have recalled food grown there as a recaution. there's go to cnn's fred platkin with more. >> the german officials here are expecting lab results sometime today, possibly in the next couple of hours. and they say they wouldn't be surprised if they actually don't find any traces of e. coli in any of the foods t

thank you very much indeed for joining us from portugal. thank you. you're watching "bbc world news." much more coming up in the coming minutes. do stay with us. the former head of the i.m.f., dominique strauss-kahn strauss, is due in court today to formally answer charges that he attempted to rape a hotel maid in new york. the 62-year-old frenchman is currently under house arrest. jane o'brien reports from washington. >> as head of the international monetary fund, dominique strauss-kahn strauss was one of the world's most powerful men. he was also a french presidential front runner until he was arrested last month, accused of assaulting a hotel maid. he's already appeared in court, but today he'll be charged with a criminal sex act, attempted rape, sex abuse, unlawful imprisonment, and forcible touching. his lawyers say he'll deny all the charges. the 62-year-old was staying at this luxury hotel in new york when it's alleged he emerged naked from his room and attacked the maid, a 32-year-old woman from ginee. with no apparent witnesses, the case is l

corporation peacefully all german people angry at selling to pay for portugal's mistakes. we decided to say ok we have to work until sixty seven and then. it is hard to explain to people when you get the reports from. the greece are so. the average working time their. people are so that's what we like to do for you. if the situation continues do you expect germans to come out onto the streets and protest against the bailouts. of the germans i know it revolution earth. but. when you drive them too far where they go on your plate we have. to have figures. for sure to show up rates elections go down. parts off it just explains. that this policy which is really not simple to explain because it's not the right policy how do you plan to stop the bailout solve greece and portugal. i'm aiming for for a limited and limiting it. or and we're now talking about a second it's. a second action on greece. we try to stop this of course. and then the they want to erect this european stability. mechanism and i'm trying to take here that there would be a normal georgian for that to the germa

what would be you'll solution to portugal's debt crisis. the parties have to solve it themselves this is. why it's not the easy truth but it's blanky the truth. because europe as a whole may be infected with parties on both sides and once demonstrating against. it i am f.m.c. he said yeah and your commission is a pig ations sent. and. demands they were sealed and we told them we don't want to suffer for. the stability of fisheries and of the german authorities or something like that. on the other side we would have parties like the true feelings say stop it now. so that i think that sticking to the rules that have been wrecked it is the best thing we can do you know order to keep your. corporation peaceful rate while german people are angry at having to pay for portugal's mistakes. we decided to say ok we have to worry about in sixty seven and then. it is hard to explain people when you get the reports from. greece or so. the average working time there. people asked that's what we'll have to do for you. if the situation continues do you exp

in just eight short weeks, we will all be in portugal launching the very first event in the inaugural america's cup world series. i must say, i think for all of us involved, it is very exciting for us to be moving from the planning and preparation stage to the delivery and competition stage. soon they talking can stop any action can begin. we already know from what we have just seen what kind of action that can be. to you all, welcome, everybody. we would like to thank you for joining us as we welcome the team's officially to san francisco, the gorgeous host city of the 34th america's cup. it is great to be standing here today with an outstanding field of competitors from eight countries around the globe here at the sight of what will be the most accessible, the most extreme of america's cup there has ever been. and in every sense of the word, the america's cup is reinventing itself from our fast and dangerous new boats to our break through sporting technology on television. maybe just one little anecdote here -- if you can imagine watching an american football match without any lines

greece and portugal should leave the euro to save the european union according to german ruling party m.p. klaus pizza world mr walsh what will happen if you keep bailing them out. you know in the human treaties. it was regulated that there must be any bailout because. otherwise you. you would. ruin the happily clear finances of those countries you are contributing to it. as long as each country is responsible for its budgets it has to take full responsibility and the only right answer to that is nobody about how the bailouts affect the german economy in germany we are making a lot of efforts to keep public that i'm looking for oh. we'll just amend our constitution and put in their so-called truth and that means a ept break. which. defines the steps we have to take with our. budgets. in order to come to the zero nine and then start paying the debt back. and see i mean it is dangerous if you're serious about it infected by. policy national policy of other europe partners. but it's it is an invitation to have a bigger my neighbor policy and say ok if i don't get any more money from the

what would be your solution to portugal's the crisis. the parties have to sort of it's themselves this is. well it's not the easy truth but it's blanket of truth. because europe as a whole may be infected right with parties on both sides the ones demonstrating against them and the i.m.f. and see it you say you're you're a commission. a placation center. and moments they will say over and we don't want to or we don't want to suffer for. that stability fetishism or the germans or. something like that in the other side we would have parties like that from friends say stop it now. so that i think that you are sticking to the rules that in fact it is the best thing you can do in order to keep european corporation in place for all german people angry at having to pay for portugal's mistakes. we decided to say ok we have to work out in sixty seven and then. it is hard to explain people when you get the reports from. the resource so. the average working time their. people are so that's what we'll have to do for and. if the situation continues do

expected difficulty in greece portugal ireland and i think i think spain as well. so what happens when the contagion. it's great mark scheerer i mean well when we know we have more than pigs i don't think there is a significant danger of the contagion the on the ropes right in the markets. i think is going to be a i think the market the two percent mistake and so short term on the whole european situation again i'm going to come back to what i was trying to say in the beginning that the period of fiscal consolidation and i was on president a structural reforms what the positive for europe in general so i think there is a contagion is relatively small you know what about this slippery slope here ok moral hazard i mean if there's always going to be a bailout. you know it has to there has to be a contradiction there i mean the money runs out eventually the question is that the question is on its own but you know if it is just a bailout then you know structural reforms don't take place so if it's money that actually results in structural reform then that that is the ex

corporation peacefully all german people are angry at having to pay for portugal's mistakes. we decided to say ok we have to work out in sixty seven and then. it is hard to explain to people when you get the reports from. greece also. the average working time there. people are so it's one of the elected you for and. if the situation continues do you expect germans to come out onto the streets and protest against the bailouts. of the germans i know no revolution earth. but. when you drive them too far that won't work any longer but we have. we have figures. show to show up rates if you like from this go down. parts of it just explained by. this policy which is really have not seem pretty explained because it's not the right policy how do you plan to stop the bailouts of greece and portugal. i'm aiming for for a limited and limiting it. i think we're and we're now talking about a second to. second action on greece. and we try to stop this of course. and they want to be wrecked this european stability. mechanism. i'm trying to take care that there will be no majority for that to

portugal should leave the euro to save the european union according to german ruling party m.p. close pizza world what will happen if you keep bailing the worlds. you know in the end you were treaties it was regulated that there must not be any game hours because. otherwise you would. you would. ruin the public finances of those countries who are contributing to it and as long as each country is responsible for its budget it has to take full responsibility and the only right answer to that is no bailout how the players affect the german economy in germany we are making a lot of efforts. to keep public debt under control. we just amended our constitution put in their so-called food in the pens and kept break. which. defines the steps we have to take with our. budgets. in order to come to the zero line and then start paying the debt back. and say i am it's dangerous if i say it's already infected by. policy national policy of either of you are partners. when it's it is an indication to a bigger my neighbor policy when you say ok if i don't get any more money from the credits from

what would be your solution to portugal's debt crisis. that you'd have to sort of it's themselves this is. well it's not that easy truth but it's blanky the truth. because europe as a whole may be infected right with parties on both sides the ones demonstrating against the media i am f.m. say he said yes you will commission. a patients. ten months it would say to me don't you know we don't want to suffer for the. steps that pretty fetishism of the german authorities or something like that and on the other side we would have parties like your true friends say stop it now. so that i think that you know sticking to the rules that have been wrecked it is the best thing we can do in order to keep your. corporation peacefully all german people angry at having to pay for portugal's mistakes. still say ok we have to work out in sixty seven and then. it is hard to explain to people when you get the reports from. the resource so. the average working time their. people are so that's what we have to do for and. if this situation continues do you expe

what would be your solution to portugal's debt crisis. the portuguese have to sort of it from soft it's. well it's not been easy truth but it's when people drove. because europe as a whole may be infected right with parties on both sides the ones demonstrating against him and he said i am f.m. said he said you and you. are a patient sent. him a chance they would sail we don't want to go we don't want to suffer for. that stability fetishism of the germans or. something like that you know on the other side we would have parties like the true friends say started now. so that i think that you know sticking to the rules that have been wrecked it the best they can do in order to keep european air corp peacefully all german people angry at having to pay for portugal's with states. who decided to say ok we have to work out in sixty seven and then. it is hard to explain people when you get the reports from. the resource so. the average working time there. people are slow that's what we did you for and. if the situation continues do you expect germ

greece and portugal should leave the euro to save the european union according to german ruling poll t.m.p. close pizza world is the world what will happen if you keep bailing them out. you know in the you treaties there was regulated that there must be any bailout because. otherwise you. you will. ruin the popular kid finances of those countries who are caught refusing to reach. as long as each country is responsible for its budget it has to take full responsibility and the only right answer to that is no bailout how the bailouts affect the germany choleric in germany we are making a lot of efforts. to keep public debt under control. and we just amended our constitution and put in their so-called freedom by means of dept break. which defines the steps we have to take with our. budgets. in order to come to the zero nine and then start paying it back. and say it is dangerous if this is the right if in fact it's by. policy national policy of other europe partners. in the world it's it is an invitation to a. bigger neighbor policy we say ok even if we get any more money from their credi

of the union the nation's labeled in the region by some as the peaks of europe portugal ireland greece and spain must drop the currency now before they drag down other members wards kerber although athens last year raised the pension age to sixty five and could early retirement other countries believe that greek workers work less will bail you out a second time says chancellor merkel but if you want cash in future you must work longer. we can't have a common currency us some get lots of occasions i'm and others very less and that won't work in the long term. the statements caused up through greece but they're not happy in the e.u. capital frankfurt either believing the greeks have had it too easy cause if we are going to jail sixty seven it's not possible to declare why other people should go with sixty fifty nine which are certainly not responsible for the deaths and the deficits run in portugal greece and the big states raise the age when when the greek people retire. story all three people well we have to work along as well germans or wrote boiling point anger which could spill out

bad news is good news is actually on the stand because if will look at greece for a look at spain portugal was saying that for the first time in many years they dealing with the structural underline the reforms which will cause faster growth over the medium term going to pay for all of the germans going to say hey we'll pay for it we will always pay for it i mean really that's where push comes to shove here merkel has an electorate ok i mean if if some something isn't done the going to have their own tea party movement i feel the feel the first person actually i've heard say that this is this is good news for the year i think the programs that they're trying to address right now i'm not the actual problems the that exist in the in those countries you know by providing more money than not really solving the underlying problem and they're trying to force countries through to revalue their currency through through changing domestic prices you know at the height of recession forcing these countries to go through yet another round of austerity and that's that's that's the wrong how can you find

restructure but you know at the moment i do believe that greece and spain and portugal and ireland i mean they are doing quite a lot to try and deal with this issue problem is they're addressing the wrong types of issue right now they've been need to change the value of a currency so how do you know change the value of your friends i'd like for having is going to very difficult for greece to deliver your i just don't see the op side for the brakes on that so sure you'll be able to devalue a car and said that's our problem inflation moves all the time consistent so that part of your body for that want to drive to your so i think the costs are going to start thinking about if you can't win for losing i mean i don't i can't see any potential upside at all in doing that either you have to make a decision one way or another it would be it's painful to stay in the eurozone it will be painful to be out of it but at least you have control of your finances what's better grow and what's worse it's the it's the book that's the least worst option and you know before a country devalues it always

in portugal be opposition social democrats have won the general election they are now expected to form a majority government with the conservatives next prime minister and a socialist party leader who is a socrates triggered the election when he stepped down from running the country in march that's after parliament failed to back his are all for austerity package in less than a year the new government must implement a demanding programme of cuts as a condition for an. the former i.m.f. chief is going to appear in a new york supreme court expected to plead not guilty to charges of sexual assault dominick ostrowski guard was arrested three weeks ago and faces seven different counts including the attempted rape of a hotel maid a thirty two year old employee claimed strasse card attached to it when she was cleaning his room french politician insists he will clear his name if convicted however he could face up to twenty five years in prison. while russian gas giant gazprom is on the verge of striking a massive energy deal with china but there's still some of the price in just over an hour's