the eurozone is facing a crisis in which few can predict its outcome as financial markets and leading banks grapple with the greek debt debacle there are serious questions about the viability of the euro as a currency and whether greek default will strike a critical blow to the small metairie experiment. overburdened with crushing debts greece is fighting for its financial and political life as lawmakers defend the unpopular us tara to measures meanwhile the european union the european central bank and the i.m.f. say these measures are the only way to revive a second the commie your country is undergoing a crucial moment we're obligated to ensure the future the future of our country with a sense of national jewelry facing the present difficult and multifaceted crisis in a decisive way the upcoming meeting in luxembourg will determine whether european officials are ready to issue a second bailout package worth an estimated one hundred twenty billion euros this will extend greece's year old one hundred ten billion euro deal and funded into the year two thousand and fourteen the package

host people of ireland as guests will be discussing the greece's debt crisis in arguing whether the eurozone is already sinking this is art . if you can. stand. alone and welcome to cross talk i'm peter lavelle the euro in its meeting with destiny the greek government survives a vote of confidence as its crushing debt ordeal continues unabated but this appears to settle little if anything the u. still has to decide whether it will continue to rescue greece from crisis has doubts mounted whether the euro project has a future. king. cross-talk the prospects for the euro i'm joined by vanessa rossi in london she's an associate fellow in international economics at chapman house also in london we have robert oulds he is director of the bruges group and in washington we go to jerry jones he's an economics professor with america at its center at george mason university all right this is crosstalk and that means crosstalk rules in effect that means you can jump in anytime you want but before let's look at a report about a country that may bring the eurozone to the brink of collapse. the eurozone is

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 role and what's worse it's the it's the place the least worst option and you know before a country devalues it always seems much worse than off. country devalues russia still that in one thousand nine hundred ninety eight and you remember everybody said russia is too big to fail you know be left alone to russia or a guy in the last generation if the ruble devalues in one thousand nine hundred and what actually happened well you know after the devaluation six months later but he wanted to lend to russia again obviously greece is a different type of situation the political capital there is much greater but the economics i think are actually quite similar. they're going to sound similar but the positive sign that i'm seeing is that at least now the monney are common with strings attached the mining iconica with the necessity to do structural reforms and of the structural reforms happen especia

going to be the also easy to see in predict if germany gets its hardness fiscal way of forming the eurozone there will be more entire staring rights across the continent if the greeks get their way that is easy terms and easy money then there could be a tea party revolt in germany it could see the euro implode for too long european governments turned a blind eye to weaknesses at the heart of their project today politicians have found just enough resolve to avoid immediate disaster given the events of the past year it is an open question whether the populations of the eurozone have. much more patience with her and what does not serve all equally my search and crossed our party. ok to start i thought i think go to philip in madrid here i'd like to as we did a few more words from angola merkel she said we don't have a problem with the euro as such it is a stable currency particularly because of the the dollar it is quite strong sometimes too strong for us as an export in country a nation we have problems with certain member states and their debts is that understatement for you or is it accurat

there and than than anybody else and i think the eurozone actually is a great political invention and has been very successful actually police ecclesia think about european history and what do you have that's not the heart strings i mean i used to be a professor of european history i can absolutely agree with you i mean creating unity here but can you do that look to can you do that monetary really and maybe it just takes a much longer time than they had expected i mean we have countries like poland that are kind of stepping back now thinking maybe this is not necessarily a good idea if least at this point in time you can have a role in the back if you could have political union without monetary union we you know there was something like the european economic community that didn't work out too bad it was a great up political ambition. the full part of it i totally agree with the full part of it was on that was on the economic side you can't have monetary union without some kind of centralized to school all sorts and that's exactly what's being proved now why don't you take the tools a

away from your sovereignty in a financial sense ok part of i mean that's the unspoken rule of the eurozone but then there's the political side of it i mean there are people that are elected ok i mean how do you how do you marry the two or do or quietly divorce the two paradoxical and want the perience office a convoy of the large fiscal consolidation or do you over the last twenty years there is no evidence that a large fiscal consolidation leads to a loss at the polls so i think anybody who is saying i don't know if i'm critical information. if we've found the great except i don't know i mean i think recession in general is home to politicians and you're already seeing you know politicians being elected out of office so forth out of office and seen it's in some regions in motion early in our lives so you know when you try and implement all stared you really difficult austerity i agree there are big strings attached now to these loans and you try and implement that at the height of one of the biggest recessions in the last hundred years i think is going to be political consequences from wh

want the hell out of this project what it what what kind of precedent is that established for the eurozone i actually am very positive on the euro zone in general i think it's far docks of where this crisis is going to be good news for europe in general so what we're seeing now imagine news is good news the 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 no

whether members of the eurozone should abandon the single currency and go away an interesting debate coming your way right now. stood. alone and welcome to a special edition of crossfire i'm peter will. be your always in crisis we'll have you with us ten years from now. still. to discuss the fate of the euro here at the st petersburg international economic forum i'm joined by alec since he's a professor of economics at yale university and troll and now she's a senior partner in chief investment strategist at verne zero capital all right gentlemen crosstalk rules in effect that means you can jump in anytime you want roland i want to go to you first the euro is having another very bad few days here markets are spooked. bankers are who i'm going to ask you the big question are we seeing the end days of the euro and if not what can they do you know a greek tragedy generally speaking has many twists and turns and i don't think we're at the end of that process yet the markets are beginning to price but i think we're we're still a little bit of distance from from that how much has more if t

and by the eurozone in the run up to this no confidence votes not just of your shoulder we were seeing pictures live pictures coming through from athens of people making their feelings known on the streets there. they're not happy the greeks are they going to say maybe you're throwing him under the euro train here just to save the troubled currency because if you do this money. if the greater e.u. pays or this money the great people are going to say they're going after labor frankly savage austerity laws the tax rates for generations are going to be awfully hard they're not going to be happy. no the greeks are not happy nobody's happy actually in the eurozone because we have had to save the banks who are ultimately to blame for what has happened in the crisis of two thousand and eight the financial crisis the banks did something extremely wrong that did not save themselves but what we do need is make the greeks understand and i think most of them do understand that you cannot live. with such a huge debt on your shoulders you have to get out of it now fortunately the greeks can raise mu

greece another cast doubt it's considered to be the country's last resort to avoid becoming the first eurozone nations fault but both the cots and the high interest bailout are deeply unpopular for the five thousand police have been deployed for the march on parliament young as. its lecturer at the university of athens believes the greek crisis is a result of the glaring flaws in the us. i don't believe this is a. good again. he's been pushed into parliament and even worse than that our freedom to our own fishnets even those who are voting for those measures do not believe in these animal atheists who are crossing themselves hoping for a miracle but a loud mouth run was passed one year ago in may of two thousand and ten and it failed spectacularly thinks logic was false and its application made the problem worse for them because. meanwhile i'm afraid much afraid the deficit is emerging a deficit of political legitimacy both in the service companies like germany and holland i mean that the office of counters like greece and ireland the government isn't the frontier for this is a prime minister

the e.u. designed to prevent it to faltering on its debts and triggering a eurozone crisis e.u. finance ministers have given greece choose weeks to force through tax hikes and spending cuts in return for a twelve billion euro lifeline the conditions are highly unpopular among the greek public and william dartmouth who's u.k. independence party wants britain out of the european union says the plight of working groups is not the easiest tops concern. they've got friesian feet about but about the whole deal i mean greece is really not a very large economy and what he told was in the present but seventy billion with probably more to come in twelve months time and i mean where's it all going to with what's basically happening is that the taxpayers of northern europe particularly germany are going to have to pay up to stop greece should default touch president all new york don't particularly like obsession the near fanaticism of the european elite for the political project of united states of your own a common currency has resulted in a terrible terrible human to toss if there is a gre

dollar should probably be try to get parity if not slightly above because neither america nor the eurozone can you know hold their chests out proudly and and bait the drum of success realistically i think the euro should probably be trading closer into that one twenty seven and a half not and there's every chance it will be saying those levels around the the end of summer but then again that's that's my view and we shall need to see what happens in the ensuing weeks as to what happens but to answer your original question katrina isn't such a bad thing because ultimately that's not the way the currency allows for greater exports right it's or isn't and the lived in fledgling economies within the eurozone thus bolstering bearer of a genius. prosperity very much that can break the senior manager trading advisory sexo by copenhagen. most all of business because that will be back with more in just under an all time high with us for headlines next. week.

don't be allowed to big what would happen then if the banks won't build up how we just affect the eurozone because and of course the problem of the financial system would . would collapse at least the banks that i am in bed share shape and then there might be better ways to put them on a stable ground again of course shareholders would lose everything and then let me jump in radio this is like head to go and you're jumping ahead. but this is the this is the kind of radical thing we want to avoid i mean many even if it were true in retrospect that regulating banks and offering to bail them out created a moral hazard here we are we're in a situation where people have made these loans and we don't want to mortgage all of the economic prosperity of society now in some kind of a neo liberal experiment we've lent the money and we now want to avoid as she has rightly said a kind of contagion effect that brings down entire economies into a scenario like the great depression but the key is that banks which will benefit from an orderly restructuring of this rather than some kind of apocalyptic colla

brussels where the european leaders are meeting to discuss the future of the greek debt and of the eurozone itself they believe the euro can be salvaged but most people including your skeptics believe it is impossible and there will be no resurrection of the euro well to me and i think a lot of people are beginning to collapse around the. bailouts billions of pounds of taxpayers' money especially from the germans putting a lot of this bill and i think the public about enough of it and i think that if the leaders of the european union have presented greece with draconian conditions in order for the country to receive the remainder of its bailout unfortunately for greece they will have to take extreme measures which are incredibly unpopular in the country and that presents a major challenge for the greek government right immediately after it has just been for shuffled the leaders are unanimously wrong again they be wrong about greece from the very start she should never have been allowed to join the euro in the first place she wasn't suited to it they were wrong to bail out first time they're

immediate disaster given the events of the past year it is an open question whether the populations of the eurozone have. much more patience with the current form but does not serve all equally my search area for christ our party. ok to start off i think go to philip in madrid here i'd like to as we did a few more words from angola merkel she said we don't have a problem with the euro as such it is a stable currency particularly because of the the dollar and is quite strong sometimes too strong for us as an export in country nation we have problems with certain member states and their debts is that understatement for a year or is that accurate and looking at the condition of the euro. i would say that and understand meant this set of the euro system. it's it's it needs to self-destruction the problem is that we have several independent governments that can use one central banking system to. finance deficits and debts and this has perverse incentives i'll put it where the finance these deficits and you buy a central banking system thereby externalizing the costs of price inflation to other countries

we have a strong presence in the eurozone. we are firm supporters of the euro and wanted to be strong. >> the return to stable financial conditions will cause many billions of euros but our common currency is worth the effort. this is an appeal for it either leaders to help countries like greece with billions of dollars. first, politicians want to see greece implement more austerity measures and they want private sector lenders to help to shoulder the burden. major corporations feel they clearly benefit from the euro but there is no suggestion in the text that these companies want to help pay the cost of a rescue. >> to be set taking their toll on german investor confidence. -- these are taking their toll on german investor confidence. this is at the lowest level since january of 2009. the index has been sliding in recent months in a deepening concern about the debt crisis. analysts surveyed fear that the eurozone economy could cool in the coming months. they expect this will weigh on german economy. let's take a closer look at

would not be involved in the eurozone aid package to greece. also, ed miliband question the prime minister on concerns expressed by military chiefs on the mission in libya. >> order. questions to the prime minister. kerry mccarthy. >> happy anniversary. question no. one. >> thank you. hank you, mr. speaker. anhappy anniversary. question number 1. >> thank you, mr. speaker. i was unaware of that event but i join in giving you happy anniversary. how much the give tribute corporal lloyd newell and private garrison they were talented dedicated soldiers who made the ultimate sacrifice overseas for the safety of british people at home. we send out our deepest condolences to their families, their friends and their colleagues. mr. speaker, this moing i had meetings with ministerial colleaes and others and in addition to my duties in this house i shall have further such meetings today. >> carrie mckarr think. i thank the prime minister with that response and can i associate to the tributes he just pay. he stood up to give his first budget. given on the g

argue that attempts to bail out greece are today too late and athens economic failure will leave the eurozone dream in tatters members of a. greed on the terms of pressing the greek. once again if the money is to be. next week if approved. morning the economy. this is. where the european leaders are meeting to discuss the future of the greek debt. they believe the euro . most people believe. the euro well to me and i think a lot of people are beginning to collapse around the. bailout billions of pounds of taxpayers' money especially from the germans. and i think the public. the leaders of the european union have presented. conditions in order for the country. unfortunately for greece. which are incredibly unpopular in the country and that presents a major challenge for the greek government right immediately after it has just been for shuffled the leaders are unanimously wrong again. maybe i'm wrong about greece from the very start she should never have been allowed to join the euro in the first place she wasn't suited to it they were wrong to buy time. and if the greek choose day except this

salvaged new austerity cuts face a no confidence vote for the country on the brink of becoming the first eurozone nation to default. and in business are we looking at the euro facing a slow death and if started what could this mean for russia i find i'm on the bulletin around twenty minutes time. hello this is our international from moscow it's nine pm tuesday night here and my name is kevin irwin with our top story for you officials say bad weather and pilot error or the likely causes of the plane crash that killed forty four and left eight injured in northwestern russia on sunday night the russe air flight on route from moscow to petros of course crashed into a road just one kilometer from its destination our correspondent tess recent reports from the scene. right here at the scene you can still see behind me the emergency services so they are still picking up parts of the plane that we saw earlier well from what we know the early reports of you know the a plane was flying from moscow to patches of wars here in the northwest of the country and if you can see behind me there's a road it had land

>>> it's make or break for greece, and the eurozone in the next few years, can the economy be saved? >> the greek prime minister faces a confidence vote in parliament and protests on the street. >> hello, it is noon in athens, 10:00 a.m. in belle fest, i'm monita rajpal. >> and i'm zain verjee. >>> also ahead -- >> masked men ransack catholic homes, protestant businesses are tacked, claim and counterclaim, sectarian rioting breaks out in northern ireland. >>> the ash cloud is back and it's brought sydney airport to a standstill. thousands are stranded. >>> and what lies beneath all this beauty is under threat, a stark warning that should worry every one of us. >>> in the next few hours, greece could take a big step toward resolving its debt crisis or shove the world closer to an economic slump. prime minister george papandreou and his cabinet are calling for lawmakers to back them in a vote of confidence, being debated in parliament right now. you're looking at live pictures of that. a win for the government and financial stability will be within reach, a vital cash injection and a f

top on her list is the crisis in the eurozone. >> we had jobs and lock in finance. christine is used to breaking glass ceilings. now she shudders another. the coming -- becoming the first female managing director of the international monetary fund. >> when i had the meeting at the imf it was a group of 24 administrators, not a single woman. when i found myself interviewed by these 24 men for three hours i thought it is good things change. everybody brings their own perspective. i am keen to do that. >> remain competitor was the mexican central bank governor. even he thought she was unstoppable. admitting during the race that it was like starting a soccer game with a five-nil score. >> it is difficult to break that tradition. europe thinks that it needs, it requires to have that in the institution. >> with the eurozone in crisis, europe has never relied more on the imf. the continent will be relieved to have one of its own in the top job. while that may be a selling point for some, others perceive it as a weakness. >> i will have much more empathy in one sense for the

international news life in moscow this is us he with me thanks for joining us economic turmoil in the eurozone is turning up turkey from joining the european union opinion poll

the audience listened closely to hear what he had to say about efforts to stop the eurozone debt crisis. >> although this was a celebration, frustration about the debt crisis in greece was an overriding theme of the event. for jean-claude trichet and other policymakers, creating stability for the common currency was of prime importance. >> we are standing at a crossroads and must strengthen european values. that is easy when the sea is calm. when it gets stormy, we have to prove what we are capable of. >> the jury said it was honoring jean-claude trichet for his efforts to stabilize the euro and the european currency union. but in his acceptance speech, the head of the european central bank talked about the difficulty of handling the debt crisis without being able to impose solutions on indebted governments. >> you have to stop individual countries from enacting policies that hurt themselves and the entire eurozone. >> jean-claude trichet is calling for the establishment of a central finance ministry to coordinate economic policies in the eurozone. national leaders are unlikely to agree