you know you're right it was incorrect because the euro bejo is a euro project is an incomplete project you cannot have a monetary union without the fiscal union and along the same lines in the united states and you can have a political union or you know the powers that is created the euro zone was germany germany and france in the names of francois mitterrand. and also john chancellor kohl knew the project was incomplete and they expected that those who would follow them will complete the project but what do instead we saw is the development of tremendous imbalances between the into the eurozone countries you does not possible to expect the german you will always have a surplus unless of the counters such as greece and portugal have deficits ok and therefore this is how we created the let me growth padron let me jump. in here i mean people i mean we just heard that other countries would follow the it would follow the political union thing but people didn't vote for that i find that inherently undemocratic and that giving people a choice ok i mean what happens when they go in the next going comes in greece are they going to vote against

you're right it was incorrect because the euro but you know the euro project is an incomplete project you cannot have a monetary union without the fiscal union and along the same lines in the united states and you can have a political union or you know.

you know you're right it was incorrect because the euro bejo is a euro project is an incomplete project you cannot have a monetary union without the fiscal union and along the same lines in the united states and you can have a political union where you know the powers that is created the euro zone was germany germany and france in the name.

fiscal union is not a transfer union. what we mean when we talk about the beginning of a fiscal union is what we have already decided. that is to say stability and growth, a pact which now is going to be binding. talked a l reducing the debt. people want to in their constitution sometimes. but for the first time, the right to come and check whether the member states have really translated the stability pact in their legislation. and if they have not done it, the european court of justice can sue them. it's a paradox, if you want. we have a stability and growth pact, which is like european legislation, if you want. for all the other european legislation, for all the directives, the supreme court, the european courtsu a country t have applied the directives and the country must apply them. but in the lisbon treaty, we said okay, we're going to do the same with the stability pact. all the heads have said oh, no, no, no. we're not going to do that. it's so important because it's hitting our budgets. so we don't want the european court of justice to meddle with

in the one percent except in some difficult times this is not what i would call the fiscal union this is just not possible for every member of the eurozone group to create surpluses so that it is possible to vend the europe the euro zone could be in a an even keel based on the definition of the odds. of america believes in president sarkozy we do need to change stay with you when you are dying and i can say with you in new york a very but when countries join the european union i'm sorry the eurozone he didn't sign up to this kind of economic policy at all did they i mean this is turning into a straitjacket i mean people didn't vote for this they voted to have a common currency the end these were talking about if you're rationally correct because the euro goes a euro project is an incomplete project you cannot have a monetary union without a fiscal union and along the same lies in the united states and you can have a political union where you know if the powers that is created the euro zone was germany germany and france in the names of francois mitterrand and also john chancellor kohl

. >> woodruff: from germany, margaret warner reports on reaction to the european union's fiscal discipline deal. >> ifill: as florida votes, jeffrey brown examines the foreclosure crisis that has depressed housing prices there and around the country. >> woodruff: and we close with more on the political campaign from mark shields and david brooks. >> ifill: that's all ahead on tonight's newshour. major funding for the pbs newshour has been provided by:

lower than that even a one percent except in some difficult times this is not what i would call the fiscal union this is just not possible for every member of the eurozone group to create surpluses so that it is possible to vend the euro the euro zone could be in an even keel based on the definition of the odds. of america believes and president sarkozy would make a major pain say with you when you're i mean if i can stay with you in new york if but when countries join the european union i'm sorry the eurozone he didn't sign up to this kind of economic policy at all did they i mean this is turning into a straight jacket i mean people didn't vote for this they voted to have a common currency there and these were talking about oh you're rationally correct because they do euro.

union taxes and spending been coordinated across the different countries within the union you also need fiscal political union and she also said that you need a common treasury and know what is being discussed today by the n.c.a.a. agrees with this is easily you want the better willy's base and i think of england well. as things the cd you think should be in charge in europe is that we're saying well let's you know i mean as well i would hope that i would hope that we have more stimulus or speaking as a part of the government and germany and this is an end drawing up the fiscal rules of europe as i hope that francois are all on if he wins the french presidential election this me will do but the reality is that what we've seen in the eurozone are very harsh and fierce fiscal rules and the fact is if i examine wins this referendum he would be doing a deal to drop similar fiscal rules with george osborne it doesn't sound much like independence from a tory tax and spend policy to me nor indeed think it would be for the scottish people. cases no one since because the bank of scotland has been indep

fiscal reform. and so what you'll see over the next two to three years is germany will draw the eurozone towards a fiscal union with central control over national budgets and strong, automatic sanctions against spending offenders. this is a difficult path. it's the greatest danger is that a crisis will loom in the interim. what you're seeing is a very difficult process and there's going to be missteps. there's going to be obstacles and what you'll see are the markets will become frightened. and the great danger is the politicians will confuse the emd of their world with the end of "the" world and rush out and bail out every government and bank in site, and you'll set back economic stability by a decade. so what should happen is the ecb should act as a support for this difficult path to adjustment, as the europeans go towards fiscal compact and this way they can maintain stability and very fragile markets. what they have to do is not just flood the market, what they should do is announce a rule of intervention that removes the risk of financial panic, but preserves the incentives for governments and investors t

fiscal reform. and so what you'll see over the next two to three years is germany will draw the eurozone towards a fiscal union with central control over national budgets and strong, automatic sanctions against spending offenders. this is a difficult path. it's the greatest danger is that a crisis will loom in the interim. what you're seeing is a very difficult process and there's going to be missteps. there's going to be obstacles and what you'll see are the

fiscal union is not a transfer union. what we mean when we talk about theinning of a fiscal union is what we have already decided. that is to say that the stability and growth, that which now is going to be binding. so we talked a lot about reducing the debt. people want to put that in their constitution sometimes. but for the first time, the european commission has the right to come and check whether the member states have really translated the stability pact in their legislation. and if they have not done its, the european court of justice can sue them. it is a paradox, if you want. we have a stability and growth pact, which is like european legislation, if you want. for all the other european legislation, for all the directives, the supreme court, the european court of justice, can sue a country that would not have applied the directives and the country must apply them. but in the lisbon treaty, we said oking we're going to do the same with the stability pact. it is so important because it is hitting our budget. so we don't want the european court of jus

>> i think you can, because it does come down to the idea that essentially you're moving to a fiscal unionand in the fiscal union the sense it's going to take a lot amount of the responsibility on the ecb is a part of that. you could say, well, it's not that different from monetizing the debt, but ultimately it makes sense to make the concession. >> richard, this comes out today we saw data from germany and we're seeing peripheral spreads narrow. we have another ltro coming up. there is a feeling here that whatever happens, we've saved off a bank collapse. my sense of question is, how do you balance out the optimism that we're not going to get a complete bank cleps collapse with the fact that whatever happens, we're going to have pretty poor growth here. what is an investor to do with that? >> i think actually we're taking a different view at the moment. certainly the market is much less worried about systemic collapse. so i think the real surprise in the past couple of months is that the data has been fairly solid. you're talking about tpmis in particular. so, you know, sure, there's prob

fiscal union is not the transfer union. what we mean when we talk about the beginning of a fiscal union is what we've already decided, that is to say stability and growth, in fact; which now is going to be binding, so we talk a lot about reducing the debts, people want to put that in their constitutions sometimes, but for the first time, the european commission has the right to come and check whether the member states have really translated the stability pack in their legislation. if they have not done it, the european court of justice can sue them. it's the paradox if you want. we have a state and growth pact which is like european legislation if you want. for all the other european legislation, for all the directives, the supreme court, the european court of justice, can sue a country that would not have applied the directives and the country must supply them, but in the lisbon treaty, we said, okay, we're going to do the same with the stability pact. all the heads of states, and they said, oh, no, no, no, we're not going

that appears not to be going to happen or it's certainly not going to happen until the fiscal union treaty has got the ink dry on it. but i think the emphasis has been too much on austerity which doesn't mean it won't work in the long run. but it's going to take a long time to work. >> good speech today. thanking for joining us. lord nor man la montd, former uk chancellor. iran is going to issue a fourth generation of domestic centrifuges. wekeep our eye on that as brent oil trades around 118. it's also time to bring in jackie, which means we're getting closer to the second hour. >> we're watching warren buffett very carefully. he's increased his bets on u.s. blue chips, intel and ibm. according to berkshire hathaway's latest regulatory finding. he's added a new position in libya media and made a near 1 million dollar investment in directv. it pick up shares of general dynamics and took new stake in dialysis. they added provisions in coca-cola and care marek and reduced stakes in kraft. he's making big bets on technology which has performed very well. i was surprised he was taking his name

fiscal year we spent 245 million dollars. i aim am saying the mayor lied misled and key received the public and members of the city council concerning the true fiscal condition of the pension plan. >>reporter: union say they see the need for reform yes but calling for independent third party investigation. >> guards fired warning shot and used tear gas to break up a rye ought at san quentin prison today. several prisoners slashed or stabbed in the prison yard and taken to local hospitals. there was no look down but prisoners were limited as to where they could go. fight is of course under investigation. >> optician charged with shooting federal officer in newark may have been infatuated with the agent's wife. according to the san francisco chronicle court documents show dennis bag well was obsessed with miss smith. she met bag well as bay area optical school in union city. smith says bag well an instructor attempted to initiate a relationship and when she turned him down smith says that bag well began behaving erratically. bag well appeared briefly in court today but did not enter a plea. >> mortgage deal reached today should help bailout millions of americans who lost their home to foreclosure o

fiscal year we spent 245 million dollars. i aim am saying the mayor lied misled and key received the public and members of the city council concerning the true fiscal condition of the pension plan. >>reporter: union say they see the need for reform yes but calling for independent third party investigation. >> guards fired warning shot and used tear gas to break up a rye ought at san quentin prison today. several prisoners slashed or stabbed in the prison yard and taken to local hospitals. there was no look down but prisoners were limited as to where they could go. fight is of course under investigation. >> optician charged with shooting federal officer in newark may have been infatuated with the agent's wife. according to the san francisco chronicle court documents show dennis bag well was obsessed with miss smith. she met bag well as bay area optical school in union city. smith says bag well an instructor attempted to initiate a relationship and when she turned him down smith says that bag well began behaving erratically. bag well appeared briefly in court today but did not enter a plea. >> mortgage deal reached today should help bailout millions of americans who lost their home to foreclosure o

>> warner: the one concrete thing they did agree to was a new kind of budgetary or fiscal pact they're calling it. some call it a treaty. 25 of the 27 members of the european union agreed in principle to this. and the idea is that they're going to have a tighter mechanism to ensure fiscal discipline on its member countries and punish those in some fashion who don't meet their obligations. so as angela merkel, the chancellor of germany, explained it to us last night, it sounded very tough. that if any country exceeds more than half a percentage of g.d.p. and an annual deficit, it can be referred by the european commission to some sort of european court of justice and some automatic fines will go into effect. but today as people have looked at it more closely, there are a lot of caveats. it's not clear how airtight the mechanism is. the final language hasn't been written or finalized and won't be signed until march. secondly, even though these e.u. leaders, most of them agreed to it last night, even if most of them come back in march and sign it, it has to be ratified by at least 12 e.u. member parliaments. so there's a lot to be done between what happened last ni

past and led to national abuse of the imperfections institutional framework of the economic and monetary union. but fiscal adjustment is not sufficient, definitely, and the interesting current stage of the policy game in europe is precisely on how to put to rest the concentration of minds and policy energies on fiscal discipline. putting them to rest not because fiscal discipline will not have to be observed, but because by now it has been really set in very, very sophisticated constitutional framework both at the eu and at the national level and all the enforcement instruments are there and all the political will to comply with them is there. so this is very interesting moment for all of us to concentrate more on the growth imperatives. i think most of the extra growth has to come by coordinated mack crow economic policies at the g-8, g-20 level. but as far as the eu is concerned, mainly it will have to come from structure reforms or supply side measures within europe. we have to make the cake more optimum to the currency we see in the textbooks, otherwise, the euro will never be -- although a solid curr

the complaint is the mayor's long-held contention skyrocketing retirement costs put the city in fiscal jeopardy. unions produced an internal e mail from the director who through out this figure in 2015. the e mail says there is no back up and should not be used but foremost of last year, the mayor continues to fight the $650 million number as a worse case scenario of skyrocketing costs. >> i am saying mayor reed lied and deceived the public concerning the true fiscal condition of the pension plans in san jose. >> knew it came as an estimate from our professional staff. if you were to look at the numbers today and still in the ballpark of what could happen. and here is an often used example of how fast pension costs are escalating. there were $63 kblinl that went to projected $250 million this year, turning out to be $245 million, then then, you had a projected $450 million in 2015 with that worst case scenario. and this complaint and workers today accuse the mayor of using that worse case scenario often to push his political agenda and this is important to note the city council voted to put a measure b

and so this will go on and on and on and the europeans have a choice do they make the eurozone a more proper fiscal union where there are actual transfers from the wealthier to the less wealthy states where there's a central bank that is able and willing to to back up euro denominated bonds issued by various nations will it act like a real union or will it fragment and there's really no alternative even though everybody seems to think that they can muddle on indefinitely all right writer and consultant george kenny thanks for your insight. thank you. later today we'll bring you a unique take on europe's debt crisis and the kaiser report here's a preview. here's some images from athens is that from two thousand and nine two thousand and ten two thousand and eleven or two thousand and twelve can you tell the tear gas by any other year is still a sweet greeks approved tombstone austerity deal with troika so we see over and over there's a great deal there is not a great deal there's a great deal there's not a great deal you. on again off again there is a deal now there is not were german were crazy were tryi