they i understander veined, heading the g.c.c., the gulf cooperation council in a very positive way as the saudis have done in other places throughout the region, palestinian and lebanon over the years. the saudis play a very constructive role in some areas of conflict and conflict resolution. in yemen they did their best. a transition started but then fell apart. yemen is an area that didn't as you can sealed as much as they wanted it to. it is a very, very dangerous situation, because it's in these zones of chaos like in parts of yemen where groups like al-qaeda and isis and caliphatous groups emerge take root and start spreading and mobilizing and attracting people. that is the last thing the saudis want is these groups at their doorstep. >> thank you for putting it in perspective for us. thank you. >> now houthi rebel ins yemen are calling for the formation of military and presidential committee to say run the country after the resignation of the president. they are asking supporter to say stage mass rallies on friday in a show of force. we have the details. >> a down attack, shia

the g.c.c., today have a second huge strategy consistent. me the south the possibility as the -- it was very possible that way. >> why do you think that the president and the government decided to do this? what do you think their ultimate aim is. >> the houthies you can't trust them. two inches so i think the government the entire yemen they want the entire capitol and the government. so i think the president and the prime minister -- and you know put the flag up and say that's the way you want it. it will be difficult for them to run it's been messy. >> okay, so what happened fow? i think most likely, we are going to see a failed estate. we are going to see two yemen. a yemen in the north and the houthis extremist and we are going to see another there the south. and control of al quaida that will be the situation at least in the near future. >> you say that the international community failed yemen, what more do you think they could have done? we have been seeing it but everybody was busy with syria and iraq, so i don't think people to have p

. >> tell me who politically -- who faces the biggest instability in the g.c.c. right now from these oil prices? who can't afford to see this go any lower? >> the most vulnerable economies today are beheran because they have break even budgets. and they don't have the same reserves that saudi or kuwait have built over the years. so from that perspective these countries are vulnerable in the short term. in the medium to long term saudi will become vulnerable to this, five to 10 years down the line. they cannot sustain a fiscal deficit above 7% to 8% for five to 10 years. saudi has no problem sustaining these deficits short term. >> i want to get a sense of this because you are funded quite well. out performing the benchmarks by 23% last year. lower oil prices, russia anxious could be a little more. lower oil prices anxious in russia and a federal reserve on a fightening mandate brief. how does that translate to the alpha generation of 2015? >> i think 2015 is going to be interesting here. i think you'll see much more volitility and less direction and probably see a

>> we're looking at the fiscal side being the most affected in terms of g.c.c. omies from the weakness in the oil price. growth going to be softer in 2015. but budget deficits the thing on most people's horizon for 2015. deficits which should be able to be managed by governments. governments here have large revenues and large reserves which can be tapped in order to maintain current spending. so i think the deficit, the spending plans that governments have had in place for a while now can continue. but governments will probably have to look at using some of their reserves and going to the markets perhaps issuing debt to try and maintain the spending levels. but at the moment the message from dwovements is that they can continue to spend -- governments is that they can continue to spend according to their plants. >> if oil stays at these levels or goes any further, does it become an issue? >> i think it depends how long it last and however it falls further. over the medium term the expectation is supply will start to get constricted and that will put upward pressu

the g.c.c. and saudis will not be strong supporters of any houthis dominated government. they made a statement supporting the president and rejecting any possibility of a presidential council. the international community, i think the core of the houthis argument is the peace and national par tisdale pigs participation agreement. but they see that as an agreement with the president and if he is no longer in the picture it will not be as important as the initiatives a u.n. security council resolutions and the national conference. that is something that we could rally people around at this point and not just focus on. seems each faction focuses on the agreement that would serve them the best. the international dialogue is something that we could work on the economic crisis. in the last three quarters we lost $600 million from the oil. 60% of the government revenues comes from oil. the donors pledges to yemen out of the seven point plus billion dollars promised and pledged to yemen we only have absorbed less than 38%. there is money there, but people are not going to invest in

and we don't really know the unintended consequences of this. i was in g.c.c. went down and one of the unintended consequences was the iraqi taking of kuwait. so we don't really know what the unintended consequences are. but they can be chilling. and they could give rise to more disruption. so with that i'll pass the baton. >> thank you very much. and yes over to ana. >> thank you. first of all if i say it is a great pleasure and a great honor for me to be here. it is not rhetoric. this is the transatlantic relationship with content. and if there is an area where today because of geoeconomic reasons that you have hinted at, but mostly because of strategic reasons there is is precisely in energy. so now a disclaimer. i will be with paint with big brush strokes, and when you do that you exaggerate. my disclaimer is that the energy policy of the european union is a policy in the making but it couldn't be otherwise. and it has a lot of contradiction. it is not easy, but honestly this is a working progress. why, if you take the prospective of the construction energie

and we don't really know the unintended consequences of this. i was in g.c.c. countries in the middle of december talking to -- more to locals and to ex-pats who reminded me about the unintended consequences of saudi arabia and kuwait raising production by about a million barrels a day a right at the end of the iran/iraq war when the world expected more oil coming out of those countries. oil prices went down and one of the unintended consequences was the iraqi taking of kuwait. so we don't really know what the unintended consequences are. but they can be chilling. and they could give rise to more disruption. so with that i'll pass the baton. >> thank you very much. and yes over to ana. >> thank you. first of all if i say it is a great pleasure and a great honor for me to be here. it is not rhetoric. this is the transatlantic relationship with content. and if there is an area where today because of geoeconomic reasons that you have hinted at, but mostly because of strategic reasons there is is precisely in energy. so now a disclaimer. i will be with paint with bi