presidency of the european council. but it has is still the responsibility of the presidency for a number of issues of you policies and i'm sure that poland will make a very good presidency they have been preparing themselves for that we know that we know that they are ready and i have no doubt that they will have a will do a very good presidency and in terms of a russian poland relations russia e.u. relations do you think that that poland polish presidency will. play some role in making this russian issue special for the e.u. and for the relations with well they were not directly in the sense that they are not responsible for the foreign relations in there actually on a number of issues it might it might have of course a bearing but but not on what is the bilateral relations between russia and the e.u. which is a matter now for the institutions in brussels. on the twenty seventh of june russian and the european union diplomats had their meeting on visa related issues and agreed on some i quote joint action steps on the

should this be a european problem? >> i have believed all along that this should have been a european problem. and in the camp of those who do not agree that we should have gone then. by the same token, i don't believe we should just be handing it off and saying good luck. we are a part of the western security apparatus, part of the transatlantic relationship. we should be there in some supporting role, but i would have just let the european union handle it. for those of you that don't know, the president has just approved, two hours ago, the deployment of arms transfers over libya. that is the latest news. the colonel and i were talking earlier about how easy it is to start things and how difficult it is to conclude them. and to me what is really tragic is that we have people. all of these wonderful people who will soon be in action. you know. so we have a military force that does what it is supposed to do efficiently, adapts to what is taking place on the ground. and i think we just need to be thinking a little more

he helped lay the foundation for the single european currency while at the european commission. he is analyzing the efforts to save the ural -- euro. >> if they are a minimum requirement, the agencies would not be so powerful. >> they are supposed to make the banking system more stable. somehow the people that rate it see things? a small independent ratings agency believes the government should enact increased competition. >> the problem have right now is the regulatory framework lead to the dominance of the big three. that market has to be opened up, or there can't be any competition. >> assessing government that is big business. the experts cast out to set up a european ratings agency as a counterweight to commercial agencies. >> with you think about a state run ratings agency issuing national ratings, it is hard to see those ratings as credible. >> whether or not investors believe that will ultimately be repaid. >> it is not just about creating new rating agencies, rising economies are also calling for the establishment of independent agencies in their own countries. and ther

strong army of europeans. i would submit that is what it would be for quite a while. the whole canard about they don't fight and they don't negotiate talking to general scowcroft says don't let anybody fool you. when the interests are threatened, nobody can fight as well as the europeans. we can. made his future by itself the shelf life is very small. also the europeans are quite interested in doing their own thing. i simply don't believe the united states and europe were totally in sync when it comes to security. i think the whole equation has to be thought out again. i just finished a report for the army war college speaking about the book to say can you recommend what we ought to be doing? that will come out in a couple of months. my recommendation is the president of united states get in touch with the leadership of the european union to start a project to bridge in a note to the european union. they are moving in the direction to call it altogether. -- pull it all together. that is my story and i am stick

and the european central bank was to take a more lenient position to ireland you have u.s. treasury secretary geithner saying wait a minute take a hard line for a for ireland you have to crush it because we've the u.s. banks the financial casinos have insured irish debt same thing with greece it's the . the u.s. treasury that comes in and says wait a minute are quite intell system has turned into a i'd shape we've insured the greek debt and we can't afford to take a loss so your europeans have to take a loss you have to impoverish your later so that our financial well our well straight casino capitalist firms like goldman sachs can make a telling and they can't pay their people one hundred million dollars a year in salary if you don't impoverish your labor we're making money off you and that's the financial system that's what we call stability so you may think it's our risk but it's not our risk if we're telling you but the do what you refer to risk isn't a risk if you let us treasury act is the battering ram for the wall street firms that insure the rest and say you think

pledge this to the european central bank and get full euro's a. full value on the dollar and get free money by speculating we don't know whether the german banks or the french banks are carrying this greek debt market value or a nominal face value so germany is itself is being sacrificed. to the banks and i don't think you can say that the interest of the banks of the one percent is the interest of germany unless you're redefining germany and redefining europe as a kind of neo feudal oligarchy society run by the back so that's why angela merkel herself is losing electoral support in germany the whole political spectrum in europe is being thrown into disarray by the fact that what do the words left and right main when you have the whole issue basically one of finance finance cuts across the political spectrum from left to right it cuts across the spectrum of what is germany what is france what is europe and it really has put the class war back in business in a very different way than was for sane in times past it's a class for banks against all the

union not their being almost and suddenly the politicians want to shut them up because simply the european union has a fundamental problem which is that multiple members of the euro zone are insolvent by c.s.a. the moody's a downgrade is accurate and justified but euro skeptics are hearing that the downgrade award was ok and that the e.u. is using this as an opportunity to gain more control over ratings agencies would you agree with that absolutely look the european union has been operating a pogrom against ratings agencies for several years first of all they argued up that can't be relied upon so therefore we have to do something to regulate them not they're saying oh well we can't trust them because they're saying something that's against the european union you can't have it both ways i mean it seems to me richly ironic that in the course of the last twenty years we've gone from a situation where it used to be that the western european media was giving us all sorts of truth and useful information and not we're talking in russia today in order to be able to have a reasonable and decent co

community and the european monetary union has been redesigned without any vote by populations who have consented to giving up the money and the germans and very bitterly. mark you talking about what the greek bailout means for the wider euro zone. on monday the international criminal court issued an arrest warrant for libya's colonel qadhafi accusing him of crimes against humanity that he has grounds to believe that he ordered attacks on civilians during the beginning of the. he was under arrest with score support have been killed the african union said it will not cooperate with the tribunals demand in an exclusive interview with r.t. colonel gadhafi his son saif al islam is also under the court's arrest warrant says that international justice is nothing more than a sham this chorus is it is it is a mickey mouse court come on the accuse me of killing people everybody nor the sentence. of your capital punishment so they decided to kill and kill and they did kill my brother and destroyed my house so it's nice to execute you so now you are talking about arrest me demands are going to kil

in frankfurt, efforts are underway to establish a european agency. still, it is doubtful whether a european firm could give greece or italy a better rating right now. >> european shares posted fresh beans to extend last week's rally with the u.s. market's close to celebrate the independence day holiday. we have this summary from frankfurt. >> germany's investors started of cautious into the new week, due to an independence day in the u.s., wall street has been closed. no impact from overseas. investors focused on german numbers. there have been many good culprits. good news from the car sector. car sales rose sharply in the first half of this year. the mood has been slight. there are new concerns about the debt crisis. >> in frankfurt, where we can take a closer look at european figures. the dax closed up. giving a bit of ground to end at monday's session. european trading this morning. good news from the german car inindust. in the six months running from january to june, dealers in europe's biggest market sold some 1.6 million vehicles, representin

to european economies do more questioning whether the country should join the e.u. those concerns haven't stopped serbia pulling its final conditions towards new membership. numbers news corp chiefs try to weather a major media storm critics say there is no surprise the scoundrel dropped in a society for privacy has been simply did not need. a suitcase in the hands of the moscow out team is in. the city's hotels and restaurants. hello welcome to the. brides. celebrating its one hundred forty. and with a whole range. from film festivals to exhibitions it's still all happening in the. teams was to drive the journey which takes around five. you can also take you know . some of the. revolution. took place in. the city. in the middle. of russia because. you can see wanted to. and still is made through the city.

some 30 million europeans do not have them. brussels want that to change. >> it is not normal for eu citizens not to have basic accounts. it is an important tool for dealing with everyday life. >> people denied access to bank accounts are mostly students, the unemployed, and pensioners. that is because banks often demand proof of a regular income and a permit residents. brussels once them to offer a basic accounts of what they call is a reasonable charge for everyone. consumer protection groups say that does not go far enough. >> the european commission missed a really good opportunity to regulate this sector, the basic bank account, but only adopting a recommendation, which is voluntary. >> one banking person has warned he will issue a binding directive if the banks fail in making any progress in expanding access to key accounts over the next year. >> leading the world in solar energy development, according to renewable energy policy that were for the 21st century. the only thing is, it is difficult to find enough space in the

european plan and the new rules of the european union especially for greece. we can use the european plans without national contribution for the first period for the next five years this is very important for the budget and the real economy this is the main element. the possibility to use european plans with a greek national contribution this is the main change this is about the main sector. it's always the different infrastructure because we have now some deficits on infrastructures it is without a doubt energy. beaufort, tourism, and of course, we have the for us the great challenge for the real-estate. >> we have to standing microphones and the troubling microphone and please come identify yourself and then fire away. >> thank you for taking the time to come here. by your own estimates the debt swap would reduce the debt to gdp ratio about ten to 12 percentage points. with that system devotee were sorry, debt to gdp ratio is supposed peek at the 172%, 12 percentage points would make it 160 i'm wondering how is it still is the symbol? and then wondering if y

that's long broad on international investors, a particularly european. >> european union is the first background to tunisia, maybe 80% of the foreign trade and 80% of the foreign investment coming from europe. >> reporter: with the global financial crisis, many more european companies moved their operations to tunisia due to cheaper costs, but then this year's revolution took investors by surprise. tunisia's ties with europe stem all the way back to the roman empire, and that relationship hasn't changed. european companies have benefitted from tunisia's close proximity and cheaper production costs but now with fresh concerns about security and political instability, tunisia faces the threat of losing millions in foreign investments. the government says foreign direct investment is down 23% this year since the revolution. 41 companies were forced to shut down and nearly 3,000 jobs lost. this is a uk-based company that launched in 2008. >> when we lookedal all the different countries, really for us tunisia was one of the best countries to start investigating more closely, and the other

i don't see the european economy. sinking if that's what you said. i think the compared with the american economy the european economy is the picture of health i mean we still see industry infrastructures state of the art modern rail links across europe and the steel industry automobile electronics and so forth the situation on the real economy in europe is vastly healthier than it is in the united states what europe needs is the markets of eurasia from from eastern europe to russia. to central asia china the middle east northern africa and that's really the economic future of europe the stronger those ties become the more stable the currency will be the i think the real problem is in the medium term is going to be the american dollar and the debt . the astronomical rate of increase of the of the public debt in the united states that's simply veering out of control and that's going to become the focus of the markets in the next few months you have a lot more to come on that certainly over the next few weeks of your help as well thanks your insight al

we don't wait until european legislation or regulation coming up. we also have no brussels, no belgium, but european towns, towns in europe, trying to find one another and to press, to put pressure on mayors and regional ministers to commit themselves to invest in bicycle policies. so those towns can learn from one another. as i told you, brussels, i have found several similarities with the two towns i have been getting to know now yesterday and today. we have about one million inhabitants. brussels is 10 to 10 miles on distance and i agree with what has been told here that that is in favor of promoting cycling because the distances are never too long, although we also have a difference of height. i mean, like amsterdam is plat as a pancake we would say. brussels does have some, well, ups and downs. an important issue politically is that we have -- we are, in fact, giving big gross national product to the country, 20%, although we're only 10% of the population, but yet most workforce is coming from abroad, from flounders, from outs. so they are comi

bring greece is the level to default is the strengthening calls here for a new european credit rating agency of the real problem of course is that it doesn't tackle the issue of the unsustainable some call it that. euro zone states and greece people protesting against the really very painful cuts that are being imposed on it just last week it's really very difficult to package which has been met with fury by the italian people who are threatening all sorts of very difficult very. reaction from them and political problem is that the quit when he. proposed which were rejected by that country's parliament and there are fears the spain will be next so a lot of concerns around europe but the experts here are stressing that the rest of the world is continue to go on and countries like india china even latin america will continue perhaps to take the growth of the world economy on its own shoulders really help to compensate for the problems here in europe something that is really being stressed increasingly by analysts here in brussels. well you can on my turn as young says played out his lef

let's reschedule bankruptcy would be good for greece it would be good for the european be good for the world if greece went bankrupt and rushed to see how to pay their bills or stop a lie and then you would have everybody would know it's a strong currency based on a strong sound economy why not let him go bankrupt listen you know you're in america we've had states go away aggressively in cities go bankrupt we've had counties nobody grew up it didn't in the united states and it didn't in the u.s. start i'll tell you why because of the four hundred billion dollars a debt that has fifty percent is held by german and french banks and those countries don't want to take a second in their financial markets it's that simple. and there are clear reflections on the other side of the atlantic as well president obama has given an unyielding u.s. congress thirty six hours to raise the country's debt ceiling deadlocks already spurred two or three major credit rating agencies to threaten downgrading america's aaa status but investment analyst months wolf tells r.t. that washington's addiction to debt

if you had germany and the european centr baogetr saying "this is at we're going to do." whatever it is in technal terms, this is about perceptions about, so to speak economic shock and awe. then you would have saved it. >> rose: where do you think angela merkel is on this today? >> she is also in many ways the key... pernally the keyo this crisis. she has been a brilliant party politician. she's magnificent at winning elections. but in this crisis, she's been following german public opinion rather than leading it. and german public opinion says we have been bankrolling the european union for far too long, we are not going to bail out these indigent greeks. we're not going to work to age 70 so the greek cans retire at 58. >> rose: what role does sarkozy play? >> well, it'svery interesting because, you know, quite apart from the entertainment value which he always has because, as you know, historically in the european project there was the german engine and the french driver. >> rose: right. >> and what's happened now is that the german engine has, so to speak, got up into

the european union and the european central bank officials have welcomed the release of a new round of stressed chess as a step to repair the crisis- -- tests as a step to repair the crisis-battled banks. those banks failed to meet the european banking authority's new capital requirements. >> in the end, the number of failures was smaller than expected. the european banking authority gave most of the bank good marks. the tests tested where banks had enough capital to deal with all kinds of economic developments. eight banks failed the test. one german bank would have been on the list, but the bank pulled out in a dispute over the methodology. the test stimulates a deep economic recession in the european union. the banks had to have enough capital reserves to cover bad loans. share prices tumbled and unemployment tumbles. the institutions need to tap into their reserves. banks have to have a reserve cushion of at least 5% of their capital. below 5% means they fail. the banks that did not pass now have until the end of the year to increase their capitalization. they include institutions

all the european crises is germany is rising from the rubble of world war two and we're talking about the reappearance of the imperial germany or the fourth reich you have or reunify germany who is now talking about greece as south germany they say was actually what it's becoming just don't compare in south germany or greece with east germany they're simply saying well just like in east germany we took all the assets and we merge into one super power imperial. conquer conquistador european thread as we had better in the past and the thing about the euro was supposed to eliminate the german imperial threat but they figured out a way around it as a matter of fact they orchestrated the whole thing as a way to reunify germany another time when a group was being stopped germany so this guy let's call him junker because he's a junk bond salesman basically he said he's pushing junk on everybody he's taking the junk off. private bankers. holdings and transfer it to the national governments in the e.c.b. in the e.u. but he's likening what's going to happen to greece to the two had agency sell

which is due to become part of a european missile defense shield they say britain barely knows what's going on there putting the country's security at risk. here it's a little piece of america in the heart of big ukase yorkshire dales where it's britons who are demanding independence from america this space symbolizes what's wrong with the special relationship between britain and united states here we have a base it's on us control which the british government and british people have no control menwith hill is the largest intel gathering and surveillance space outside the us there are thirty two satellite dishes housed inside the huge golf ball structures which can eavesdrop on telephone calls faxes and e-mails from around the world it's been operational since the one nine hundred sixty s. but now it's set to become part of the controversial missile defense shield to alert the u.s. to any launch of ballistic missiles as in poland and the czech republic where the u.s. also plan to cite bases locals who worry that having the facility here will put the area in danger heightening the risk

member of the european parliament who live in strasburg thank you very much there. well on our website r.t. dot com we're asking for your opinion about what the revival of border controls between e.u. members means for the future of the union let's look at the stats right now and more than half think that the end of the e.u. is the only way to fend off an immigration crisis eighteen percent say it's just a temporary setback in the integration process the same number think that europe has failed to find unity in troubled times and another twelve percent say that the e.u. has proven to be workable. libyan officials say that they've seized two ships on route from qatar carrying weapons intended for rebels they're said to have been carrying over one hundred belgian made assault rifles along with thousands of rounds of ammunition at this point so far only the french have admitted to supplying weapons to libya's antigovernment forces and he shipment of arms to libya is a violation of international law that's according to marty. from the center for research on the globaliz

i don't believe there's either the european economies or the united states have yet. really begun to get to grips with the very grave collapse that occurred after two thousand and eight. lots of pain therefore is is facing is going forward. from an all steel point of view the sooner we start to get to grips with that and take some of your measures necessary the better we will all have to recognize in the process that we are a lot poorer than we thought we were in two thousand and seven the story is that the euro as a phenomenon is in quite serious danger. there's more for the world of finance next to magnetize as part of this weekly report for you where he's asking if people in the u.s. will rise up against the big banks. they're encouraging at least twenty thousand people to show up on wall street occupy wall street and don't leave just like that the people in tahrir square didn't leave and told their demand that mubarak step down with the americans saying don't leave until obama forms a presidential commission to investigate whether or not there's ben financial frau

the european project is collapsing slowly collapsing you know their loss of life since coming. from the north africa and some countries have a cancer raise fold is they have to support that very search and has control over immigration control and that's the only tells is that the european political lacks the you know kind of vitality the they want agenda and it should be shared by the people living in the people how it should be ready to actually while those people they have to say no to this coming to the country. the governments all those countries how to put it to buy the referendum or actually talk to the people rather than just saying we are going to bend this a plan that every stakeholder has to have a say in it not just the citizens of the country not just the migrants because you see there is a contradiction brave you could famous for all these anti's alarmists calls supposedly to the information shared by the media no wait and at the same time there is an islamized again ization that. they have taken responsibility for the whole of the blast in the way that it's all yo

a foothold into the european union. banking regulation in the european union is such that. if you branch in one of the countries you are able to open branches in other of the countries with less difficulty. to go to england and want to open a branch. it would have more difficulty it also gives strategically it gives exposure to other cultures and existing cultures. well let's take a look at the markets now in europe they are down as traders remain cautious as head of the release of bank stress test results which are due out later today. and the rush of the markets opened in negative territory but now we see that the my sax point zero six percent and let's take a look at some individual movers on my sax the banking sector is doing well is off of one point seven percent and the bank is clearly figure out the details of its purchase of bank of moscow this burbank is also after news of its acquisition of austria's vaults fact international unless the earth i just told us and the country's biggest company gas from nearly half a percent helped by a slight rise in oil prices. now

the decisive action was enough to calm nerves on european trading floors. the message was that the eu was fighting to protect the euro. >> they agreed on a whole raft of measures and that makes it obvious to outside observers that everyone is prepared to pull together to protect the currency. >> the brussels summit decided to expand the powers of the european financial stability facility. this was set up to stabilize economies like greece's with emergency funding. parliament and the member states have to endorse the plan. he would allow the facility to buy sovereign bonds but only with consent of the ecb. it could give states precautionary credit lines as long as they take action to reform their economies. the new powers are aimed at preventing the debt crisis from spreading to larger economies and to help larger candidates before it is too late. >> german stocks advanced for the fourth day running. the dax went too solid gains for the week as a whole. the eurozone leaders agreed on the new debt deal. >> there's lots of praise for the bailout plan for greec

both the european politicians and also the european community as i told you of the muslim brotherhood with the money they have the most. the majority influence of all of the muslim organization to europe imagine and also for example. they like many years to send them back to get this done in iraq and they didn't send them in is also extremist i think also there is an internet christian extremist and most of them in support of wi fi is for on pages from vietnam they send hate to rid the hate against jewish and of christianity even today and nobody is stopping them this is the main problem now is come and the nations year end quote for the patient between muslims and the european and i think given all of this are apt it's not the muslim. goal but this is a political and to say to the norway government. we are to be a right movement also stronger and we are also a danger for you and even i think. right that they don't like that no two and war within nato against libya i've got a son this is i think. main a problem now that you're saying he would be involved the involvement of no way with

your and specifically the european arrest warrant they're all queuing that the european arrest warrant enough known as case is invalid because they've essentially discrepancies between the allegations made and the testimonies of the two alleged victims there are four charges and they range between are no full coercion to sexual assaults right down to break they're also saying it's important to remember that no charges have been brought against us or she's wanted for questioning in sweden and say far no more now this case is slated to go through wednesday if based appeal is rejected by the high courts that g.n.r. sauces but i would still take the extradition case right to the supreme court and even on woods to the european court of human rights assaulted his supporters have always been worried that one sex is right it's a sweet and they wish he would be sent to the u.s. that this case is politically motivated and of course have noted that a grand jury in the u.s. is investigating wiki leaks and that some people in america would love to get their hands on ourselves. so you could correspo

let's look at the markets european indices extend their rise up to the european central bank grazes main interest rate to one hundred percent the bank of england has kept its key interest rate on tanks as worries about the economy is recovering overweight concerns about a block target nation efforts in the dax are pointing upwards in london hedge fund manager mangrove rally two point nine percent through pouring record sales of nine billion dollars. the russian markets are trading strongly in the black tracking games in the u.s. and asia investors globally are keeping an eye on the post office called fresh clues as to its handling of policy itself. that's the business for this hour i'll be back with more at forty five minutes from now. in the room.

room of the european market is huge but it has very high standards and is heavily regulated and it's really difficult to work there even for some european producers ukraine would struggle to fit in the market in the customs union a smaller book of goods produced by ukraine would be in high demand there while key of carefully balancing between the east and the west for two or three of ukrainians say that despite european pastures being seemingly greener russia is after all closer to them and not only geopolitically lets you assess reporting from clear ukraine. she's the first woman at the helm of one of the world's most powerful financial organizations but the new i am after christine lagarde isn't shying away from putting the heavy burden of the earth's problems on her shoulders and if she can is more on the implications of the point for the global economy. christine lagarde appointment keeps the european at the head of the world's top lender keeping the long held tradition intact and in a debt crisis having one of its own chairing the international monetary fund could be more import

european union to cultivate goodwill and to demonstrate is. your status as a responsible stakeholder internationally but in the broader sense than that how do you think this crisis is going to affect the european union in the future. both this is a major test for european union in key gratian five six years ago a lot of people certainly see the european union as a more all for regional integration is the level of integration is far ahead of the united states and of course that's of east asia now you has to demonstrate that is sufficient political will to put european interest here you did with your country's interest and this is a very severe test as mentioned certainly germany and france are under a lot of pressure whether the french and germans are willing to foot the bill of the european union countries in economic difficulties is a serious matter of concern and then of course it is so the past of the european people were willing to just. cut back to social security to match their social welfare systems to face the realities in the financia

recent ratings have put a lien european countries like portugal under pressure. portuguese treasuries went on sale and they reached their highest yields ever. >> the government is outraged by the downgrading. the portuguese bonds have jumped started even though the government recently introduced drastic austerity measures. moody's is concerned that portugal will need a second bailout despite spending cuts and this has angered the finance minister. >> the reasoning behind this assessment is very hard to understand and even more so that it has come at this particular time. >> portugal's government says they are just getting to grips with the crisis. some economists support that view. >> things are progressing relatively well with the national budget. the deficit is falling. the measure between the eu and imf cannot be assessed properly. the rating agencies' comments are somewhat inappropriate. >> lisbon has received a 78 billion euro rescue package from the eu and imf. in return, they must cut their annual deficit from 9.1% of gdp to 3% by 2013. the european commis

door and specifically the european arrest warrants under which students request to be extradited has been requested the legal team all hearing that the european arrest warrant is invalid because of discrepancies essentially between the allegations that have been made and the testimonies over the two alleged victim several counts to be considered ranging from coercion and right to break and the defense team has said that there is nothing in the victim's statement that said that in the evidence so a lack of consent in the statements of three of the poor allegations they say wouldn't even amounts to crimes in the u.k. so it's very much the approach that that's taking hold they they are drawing attention to the fact that us almost has not been charged in sweden that he's once of them maybe for questioning and they're saying has the prosecution started has he actually been accused of anything and if not then the european arrest warrant is in we may be able to expect a good day at the end of wednesday but we may know the judge may refer the decision to another day he may put his off and gi

european central bank and the e.u. provided that initial. one hundred billion euros to look past the bear and move on so plan b. because they can manage another bailout package and pay back the loan for a lot of people. if that really comes to the troika many people now in greece simply don't want to help their actions as being poor and to self interest. as much as. the. problem. and they are. almost. certainly come as a high cost for the cuts in public spending raising taxes and then the question of privatization program they would need to sell many quick public assets one of the reasons that everybody is so determined to keep greece in the euro is so that the banks don't have to take a serious hit on their faulty lending policies and it's almost as if there's a holy alarms of politicians and bankers versus ordinary people it's a fight that the people say they're not prepared to live. artie. and greece was not the only country gripped by approaches this week as u.k. public sector workers went on strike on thursday disrupting schools apples