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tv   Journal  PBS  December 16, 2010 6:30pm-7:00pm PST

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captioned by the national captioning institute >> welcome to "the journal" in berlin. >> coming up this hour, wikileaks founder julian assange is released by a judge in london. eu leaders together to discuss the future of the euro. and an exhibition in bonn about napolean's influence on europe. wikileaks founder julian assange has been granted
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conditional bail by the high court in london after a judge rejected an appeal by swedish prosecutors. julian assange is fighting extradition to sweden where prosecutors want to question him about allegations of rape. for the time being, he will be living under strict conditions in england until this case is heard early next year. >> julian assange emerged from the high court to the cheers of supporters. >> it is great to smell fresh air again. first, some thank yous. to all the people of around the world who had faith in me. >> after posting 280,000 euros bail, julian assange remain subject to stringent conditions. he must wear an -- electronics tag and is restricted to living
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here. swedish authorities are still trying to have him extradited on allegations of sexual misconduct. he denied the charges. his lawyers called them politically motivated. julian assange turned himself into british authorities in days after wikileaks released thousands of confidential of u.s. diplomatic cables that greatly angered and embarrassed washington. "the new york times" says that u.s. federal prosecutors are investigating whether julian assange conspired with a former u.s. army intelligence officer. in which case, he would face charges of conspiracy. >> eu leaders meeting in brussels are making some progress. they agreed to a minor -- to minor changes to the lisbon treaty to help solve sovereign debt problems. some countries are calling for joint eurobonds, but the angela merkel opposes that idea. >> european leaders have their
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sights set on achieving their best terms for the euro. they are bent to restoring peace after the dispute over the eurobond. >> i want to give a clear signal of unity for europe and the euro. we irresponsibility for sound economic management and solidarity -- we have responsibility for sound economic management and solidarity. >> if they want to create a permanent stability mechanism for struggling eu members. there is agreement that is needed, but how is the divisive issue. >> we do need a new mechanism to help the euro zone a sort out its problems and issues. that is important for britain, but we do need to make sure that britain is not liable to spend money under that mechanism. >> while heated debate is
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expected about how the system will operate, it is likely to take place behind closed doors. ropean leaders and know that financial markets want signs of resolution, not in decision. >> let's get more analysis from the brussels meetings. we are joined by our correspondent here. give us more background about the progress being made. what are these minor changes and how will they help the debt crisis? >> they are struggling with words tonight and the summit. the exact wording of a variant limited treaty change to allow this permanent crisis mechanism to be set up. if it is done and will be tomorrow, that will give more certainty to markets and stabilize them. why? because from 2013, with the new permanent crisis mechanism, assuming there is plenty of money in it, markets should be convinced that the bureau's own and the european union is able of to tackle any other crisis.
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it is about stabilizing markets, restoring the credibility of the euro. >> can this be seen as a victory for chancellor angela merkel? >> it can. despite the divisions and frustrations of her approach to the economic crisis, the night she has won a major concession. -- tonight. it will make clear at her insistence that the new permanent mechanism, the use of bailout money from it, can only go ahead in extremis, in times when the use of the money is indispensable to the security and future safety of the currency. she felt domestic consumption was very important and made clear that germany would not be called upon as the eu's biggest paymaster to be called on as a winter it has to be less resort. she has won that tonight. they have formally agreed to
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that at the summit tomorrow. >> an update from brussels. a major decision at the european central bank today. >> a decision is being made in frankfurt after taking on risk through lending to banks. of coue, spending billions on as a government bond desk buying program. the european central bank has pulled in fesresh liquidity. they've seen their role altered. thursday's move drive some the point that if it is pushed to take on orthodox members, the member states will have to pay the bill. >> the ecb's additional capital will come from the central banks of the 16 countries that use the euro. the ecb intends to almost double its reserves to 10.8 billion euros before the end of the year. about 21 billion will come
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from the bundesbanke. although, britain will also contribute. since may, they have bought 72 billion euros from greece, ireland and portugal. it is the first time in its 12 your lifetime, the ecb decided to increase its capital base, indicating the severity of the situation. >> spain's treasury sold 2.4 billion euros of 10 and 15 year government bonds in the last scheduled auction of the year. the spanish treasury says the sale was a success and demonstrated its ability to obtain fresh capital on the open market. madrid sis being forced to pay ever higher prices for its
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borrowing. the average yield rose to 5.4%. for the 15 year bonds, the average yield rose more than a full percentage point. to the markets. german shares finished with modest gains on thursday. some better than expected economic data of the united states. r correspondent sentence a summary of the thursday trading session. >> the rkets seem to be hypnotized by the eu's summit in brussels. the dax was flatline and closed in positive territory, mainly driven by economic data from the u.s. spanish construction company acs got new shares. this is an offer made by a key investor, southeastern, and
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puts the share up to 30% for acs. it will be much more difficult for them to defend against the unfriendly takeover. >> in frankfurt, a closer look at thursday's numbers. dax finished at 7,024. stoxx 60 finished at 2845. the dow trading higher as well by nearly .4%. the euro trading at a value of $1.3212. news from the u.s. >> president barack obama says that the war in afghanistan remains a difficult endeavor but the nation is on track to achieve its goals.
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obama said the u.s. is on course to begin withdrawing troops next july, but he noted that 2010 was the deadliest year for foreign trps in afanistan. here in german, the foreign ministry has said that germanty will start drawing down its forces in afghanistan at the end of next year. it came during a keynote speech at the bundestag. germany has the third largest contingents of troops deployed in afghanistan. >> this is northern afghanistan. this is the main base for foreign troops. outside the struggle with taliban forces continues. inside, the regional commander reports back on progress in the military campaign. >> i won't say it's voer. i'm sure we have some difficult
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weeks and months ahead of us. i think the fighting has peaked. we are over the hill. it should approve it -- improved. >> back in berlin, the foreign ministers sees the report as a confirmation of government policy. afgahhan security forces are assuming responsibility, and germany wants to prepare for a troop withdrawal. >> i am optimistic enough to say that we will be able to reduce our contingent for the first time in late 2011. we will use any room for maneuver available to begin the process as soon as possible. >> nato aims to have all foreign combat troops out of afghanistan in 2014, but opposition politicians are not convinced the situation has improved for good. >> things are not going well in afghanistan right now. the last 12 months have been the bloodiest since the mission
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began. >> the plans to start preparing for the pullout are the talk of debate, but the commander says it will have no bearing on the current commission -- current mission. >> news on emerging economies. >> to china and india are taking steps to strengthen their trade ties. went about signed a series of agreements on -- wen jiabao signed a series of agreements on thursday. trade between the two nations is about half of that amount right now. the two leaders signed agreements on green technologies and cultural exchanges in delhi. the cost of air frate leaving germany went down, and now
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those prices are climbing again. simliailiar price hikes were greater to ship to japan and china. one of germany's biggest tax evasion cases has come to a close. proceedings against two banks based in lichtenstein were suspended. >> this man is the most prominent tax evader in the case. he is the former ceo of deutsch of poste. he received a two-year suspended sentence and had to pay a 1 million euro fine. his money was tucked away in liechtenstein. prosecutors have been working on the case since last year.
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now the banks have reached a settlement along with bank employees. have to pay an average of 15,000 euros in fines. the deal is a victory for the german government who collects a fine sto -- the fine. >> the european court of human rights has ruled that ireland's abortion laws violate women's rights because they restrict their right for women to seek proper medical care and life threatening situations. they ordered them to pay 15,000 euros to a woman. the court found that she should have been allowed to have an abortion in ireland, instead of traveling to britain. abortion is a criminal offense in ireland if ere is no risk to the mother's life c.
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shia muslims are marking one of the holiest days in their calendar. it is one of the days of ritual morning for hussein thet grandsn of muhammad. tens of thousands of people have processions in beirut. well, small in stature, far- reaching in influence. a new exhibition is paying tribute to napoleon and his impact on europe. he was born in corsica and rose to prominence after the napoleonic wars, which invold every major european power. the exhibition will move to france next year. >> he was a man of contrasts -- and loved like a god and hated at the same time.
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an exhibition called napoleon in europe, a dream and trauma has opened in bonn. it includes about380 priceless works of loans from the louvre or versailles. >> our exbition shs napoleon in a new light. it is not a military history or a biographical one. 12 chapters of dirt -- offer pictorial glimpses into napoleon's way of life. >> it took napoleon 16 years to make his mark on europe. he laid the groundwork for a civic constitution. at the same time, he waged a war acss europe and crowned himself emperor of all frenchmen. the exhibition offers a nuanced view of the napoleonic era and shines a light on the legendary,
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power hungry man. >> stay tuned for "in depth" coming up next. we will take a lookeethoven pro.
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>> a two day summit of headsf state and government is under way in brussels to discuss the euros on debt crisis and ways of shoring up a common currency. in may of this year, a temporary rescue fund was created to avert a financial collapse of debt- ridden greece. now ireland has asked for a bailout package, and there are growing concerns that portugal and spain could be next. all this has put intense pressure on the euro. critics say that eu countries have failed to present a united front. they deny that, but opinions differ on what the best remedies are. we take a look of some of those
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opposing views. >> the euro is starting to spend out of control and investors are nervous. the debts of yours on countries have weakened confidence. citizens of eu statesre up in arms over the austerity package as soon. experts are divided on whether the massive loan guarantees put in place to bail out countries are effective. >> they acted decisively because they understood it was crunch time for bucthe euro. >> they fell over themselves on that may 8, 9, to finalize the bailout without including banks. it was not thought through. >> together with the imf, the european union made available 120 billion euros for greece. our rescue fund of 750 billion
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euros was put together from all hold your zone -- the whole eurozone. not everyone was happy, because it came with strings attached. the country had lived beyond its means -- beyond its means for years, no sellers and pensions have to be cut. it brought people of on the streets in protest -- out on the streets in protest. >> the bailout package allows the greeks to finance the deficit for three years at low interest rates, and in this time, they have to massively reduce their deficit. >> i cannot imagine that breeze will be in position to raise money on the financial markets. -- that greece will be in a position to raise money on the financial markets. they have to declare bankruptcy
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and creditors should be allowed to write off a part of their money. >> that's a risky statement to make. if you make statements like that, the markets will? get jittery and they will sell a lot more of the bonds they are already viewing with a lot of mistrust. >> one question is who should shoulder the losses -- the banks or the taxpayers? this question is of relevance in ireland. there, the government applied for 85 billion euros in november of this year pure the country began running out of funds after bailing out the banks. ireland's budget deficit reached more than 30% per >> the irish state had promised to save the banks. the banks got into trouble. now the state is in trouble. we are promising to save ireland.
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that is not acceptable. >> if ireland is wobbly, then portugal and spain could be next. >> spain is facing a shrinking economy and an unemployment rate of more than 20%. investors are concerned about spain's and portugal's ability to pay their debts. thatu is why those countries are being sent -- charged so much to borrow money. some worry that the 750 billion euro bailout is not enough. >> we should think really big. we should offer much higher guarantees. that would be a way to convince the markets that we really mean it, and that they should stop testing our limits. >> that would accelerate the rate of indebtedness in europe and drag the whole of europe
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into a crisis. >> should state's stepped-up intervention or should the market be allowed to determine the fate of the single currency, and who will be left paying the bill? the search for answers has begun, but it is unclear whether the summit in brussels will come up with a solution. >> still, lots of questions opened, but to get some answers, we are joined by our brussels correspondent. we just heard in that last report, there supposed to be a great concern about market reaction. how much do you think that leaders decisions there are being driven or impacted by the financial markets? >> to a huge degree, before the summit started, one of the commission officials said, the leaders want to make a statement as part of the summit conclusions about the state of long-term economic prospects for
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the year rose on. there is an argument going on about what should be said and whether it would be better to say nothing at all, because everyone knows that whatever is said, the markets will react. if this is something positive, the tendency of the market is to think that is a double blow. it will take that as a negative. if they own up to something being not so good, then the market reaction is, we thought that is the case. we know it is now. it is interesting. they were agonizing more over the -- the exact wording of the future prognosis of yr zone and the economy than they were -- over the eurozone and the economy. >> what are they saying about who should ultimately shoulder the cost of the bailout's? >> no fixed agreement at all. taxpayers are bound to take a hit. that is the nature of this
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economic crisis. it is inevitable. there is the argument that the banks should take a hit, because it is largely their policies that are responsible. also, there is a question that although merkel raised,-- angelea merkel raised that the bond razors or speculators should be held to account as well. there is no clear agreement. angela merkel said that bond -- and speculator is will be held to account and some say that that triggers a part of the problem in ireland. there is no clear agreement, and there'll be no agreement at the summit on eurobonds. the truth is that the majority of the burden of the repairing the crises will fall on
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taxpayers. that is a lot of economic. >> to the negative reaction by germany and france drew much criticism, especially from luxembourg. how much to smaller eu nations, do they feel steamrolled by merkel and sarkozy? >> i think so. not just the small countries. a british official was saying that it was interesting how nicolas sarkozy and angela merkel are now in cahoots. they will adjust to the treaty, which is happening even now. even more recently been cooperating on sharing tax amoritzation as a way of stirring economic performance. >> we thank you. the euro dispute and the
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summit, that has been the focus of our "in depth" today. thanks for being with us.
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