in spain. kattalin gabriel is conducting a geopolitical study of different regions in today's spain. what makes andalucía so distinctive is that after trying for many years, this region finally obtained relative autonomy in the late 1970s. ( man speaking spanish ) translator: yes, the 1978 constitution introduced the possibility of autonomous regions in spain. since that time, we have campaigned so that andalucía itself could also benefit from this type of regional power. now we can see the results. at the start of autonomy, there were 82 kilometers of toll-paying motorways in this region. now there are 1,500 kilometers, and they are toll-free. the first joint state-region urbanist project happened here. in short, the fact is that politics always manifests itself in a modification of the landscape. narration: this landscape in motril was drastically modified two decades ago. before that, this coastal plain was sand, palm trees and tourist homes. today, thousands of migrants from spain's inter

well the political situation in spain and in the rest of europe with regards to spain is quite precarious spain theoretically would be eligible for the eurozone as colling a precautionary credit line he worried here being precautionary you take it you take this assistance you commit to certain conditions and certain reforms and fiscal adjustment but you take it or it becomes an emergency so that there isn't an emergency the spammers are finding it very hard to go for that option they're saying we are going to do all that we're going to do all the hard work we're going to push through our budget we're going to push through structural reforms but we're going to do it of our own volition we're not doing it because the creditors are asking us to that makes it easier to sell to the spanish population although it will be very painful but also this madrid seems to want to wait until it becomes absolutely necessary to ask for a bailout and the prime minister might add a whole he said so in an interview with the wall street journal published today he said if it bahrain is too expensive borrowing c

i think the longer spain delays it, the more risk within spain. all of them more systemic risks as a whole. >> the focus on the pound, given that you would be offering some rebates. so kind of some short-term dynamics at play. if you look to fundamentals and what the yield is on these ku currencies, it really seems to be a fight for who is weakest now. and then you throw in weak data on a day like today and the euro seems to be battling that. >> we're definitely seeing currency wars. the bank of japan intervention didn't really make much head way. within the next day, the yen had rallied. so really i think it's a new frontier in the central bank policy, which really is unlimited. it's always going to be stronger when we get to these really bad stages of the crisis. >> we've also had comments about the finns, the dutch, the germans wondering whether they want to renegotiate the june summit as well. how is that playing in, do you think? >> yeah, it's looking bad, reneging on their promises. >> this is for the bank bailout. >> it will put more pressu

than all the regions in spain i mean spain is not a federal country but it's close to that i mean they're very autonomous regions so they have a huge margin of policy there to maneuver large. maneuver space and so. looking for so you seen the no spain a studio so in the country you see much lower. unemployment rates as you said before thing you mention that was twenty five percent over the country but unemployed people workers and if you look at the north of spain it's more around ten your percent is huge difference and this is a strange correlation between that imposes that they carry on in those with spain there they're not implementing a stereo image is the same way they doing other regions of course they're limited by what the government is doing but they're much more generous in their local one first thing in their employment benefits and in the end in the pensions. and i think. that has managed to absorb some of the damage made by the crisis and that's why we don't see so much of an employment i think it should be something a something to follow yeah there's a loss and there's absol

why are spain and so many european countries still following this obviously failing at the austerity and yesterday julian assigned to address the united nations and discuss the united states continuing investigation of wiki leaks and bradley manning but what's the biggest lesson for journalism of the twenty first century that is songe he's now teaching us. the best for the rest of the news all hell is breaking loose in europe the streets of madrid resemble a war zone of the last few days as thousands of demonstrators took to the spanish parliament demanding that the government resign or been several arrests in injuries as riot police clashed with the demonstrators spain is under immense pressure from billionaires and banks toure's to slash government spending and pay down its deficit but those most affected by this sort of republican like austerity like public sector workers and the young and the unemployed they are having it already spain has the highest unemployment rate in the eurozone which will only get worse with more republican like austerity demonstrators called for a nationa

one of the big problem for spain is of the region. regional debt is now becoming central with government debt. that is the question i asked at its -- experts earlier. on top of delivering the budget and structural reform, and madrid get back in line these regions? >> that is a very important question, particularly right now, because what we have heard this week of course is up in the north of spain, there is more talk about autonomy. the protests in barcelona a week ago. an awful lot of people asking for autonomy but that region is one of the more economic viable and they want more control over their purse strings, they don't want to necessarily see subsidies to the rest of spain. the worst time possible for the prime minister. he's now got a question about regions going for more autonomy. >> so, the spanish prime minister has its problems and the eurozone has its problems. the problem is, this is the backdrop upon which real business is going to have to make money. the paris car show starting today. what is the mood? >> the car manuf

so it's up to spain to do that. but for spain, it's very important also that they continue the path of economic reform and austerity because this is the structural approach. >> and joining us, senior european economy at jeffries international. thanks very much for joining us. is the pressure off spain having to agree to a deal now? >> pressure seems to be off. markets have reacted very positively so for the time being it seems like we're in limbo where the ecb is waiting for spain to step up and ask for a bailout, but we're not really -- we're for the quite sure what the timing of that response will be from spain. so basically just waiting for spain to respond. >> it would seem it's going to be markets that push spain into a response here. it will be yields back above 6% or something like that. what might be the catalyst for that kind of move, that kind of risk off mood to play out in markets? >> one important catalyst could be the downgrade from moody's. we're basically waiting for some sort of comment either in la

but few expect the bailout to be welcomed by spain's people, and spain is the bailout light, will germany -- so vilified here -- by it? -- buy it? >> another week of demonstrations and unrest across the muslim world following a film that is said to mock the prophet muhammed. there was a cartoon also said to mark islamiah. i spoke about the developments with my guest. >> what do you think the west should do? >> i think the west should stand for its principles. i think that president obama, secretary of state clinton, and other leaders across the western world should explain over and over again to their colleagues in arab-muslim countries that what they are demanding is something that date as elected politicians simply cannot give to them. there is constitutionally protected speech. the films we have seen, the cartoons. that is protected in the united states by the first amendment. they just do not have the power to change any of that. the fact that, you know, the secretary of state in the united states saying this film is bad and reprehensible and disgusting -- that is an expression of her

are not spain or. out of our own we've already been in this country why what about the whole issue with the eurozone financial turmoil is dead shows no signs of stopping we've seen the protests in madrid and we've also seen them in greece as well in madrid over a million people on the streets calling for the independence of catalonia it is much of the eurozone for tea to blame for that as well. he's not. going to request going to some other big room we have home real to speculate sinus pain. relief of disappointing show the only way that all through us. south korean society and the society that takes these own lives he sure is to have any given gun free the european union friendship with spain we denmark we could believe with forty one and all the other eleven and gone through seen europe i mean there will be no we have to be the same as them are on novelty ab that is not so we going to go through all of our all way so ultimately you want your own way you want some dignity self-respect to move on indep

we'll talk about spain and we're also going to find out as spain eight was results of the bank stress test, find out what i have in common with the spanish prime minister mario rajoy. bob... oh, hey alex. just picking up some, brochures, posters copies of my acceptance speech. great! it's always good to have a backup plan, in case i get hit by a meteor. wow, your hair looks great. didn't realize they did photoshop here. hey, good call on those mugs. can't let 'em see what you're drinking. you know, i'm glad we're both running a nice, clean race. no need to get nasty. here's your "honk if you had an affair with taylor" yard sign. looks good. [ male announcer ] fedex office. save 50% on banners. >>> european stocks trading higher as investors wait the results of a spanish bank stress test that could put the recap bill at more than 60 billion euros. >>> plus the latest budget in in paris. can hollande bring the deficit down without damaging growth. >> r.i.m. rallies as the struggling blackberry maker posted another quarterly loss but it wasn't as bad as expected. >>> and consumer prices

spain and italy. vw is very much investing in europe. >> so the bottom line here is investment, investment, investment needs to stay here in europe, whatever the crisis is, wherever it is in the cycle of the crisis. and other carmakers, as well, that's the big question. later on i'll talk to the ceo of bentley and we'll talk about luxury cars and the exclusivity aspect as well as as i said earlier on because bentley is back into the racing game with the gt 3. back to you for now. >> patricia, thanks very much. and for that bentley interview, what would you like to ask? tweet us @cnbcwex. we're also getting people to respond to the story about the ceo of audi and putting facebook and twitter in the young cars. most people feel about it as we do. >> which group of drivers have the worst record, right? >> sounds like a trouble waiting to happen. but stick around, because still to come, china scrambling to tackle signs of labor unrest. our next guest warns price pressures could push workers to the brink.

spain as well developed their. plan the deputy prime minister said the nation's twenty thirteen budget would focus on spending cuts rather than tax hikes and check out the european closing because boring course in spain they have these does well and that's after the government present.

so do we need a program for spain? the answer is, if spain rn to ask for a precautionary program, then i have a strong reason to believe they would get a positive answer. on the face of it, do they desperately need one? no, dwenl definitely not. the overall imbalances are -- >> could you explain how a precautionary program would be working and if the imf would be involved in that. >> a precautionary program is pretty easy to describe. it does not necessarily involve finance organize does not necessarily involve a large part of financing for debt of the government concern. these are things and instruments that the imf also has in its arsenal. even though the eurozone states are quite insistent that all our programs are done together with international monetary fund. not only in order to avail themselves and ourselves of the financing capacity of the fund but also because of the technical expertise, objectivity, et cetera, that the imf additionally brings to the table. as i was saying, theoretical -- >> thomas, very brie

economy and a fresh round of austerity leave spain in despair. it's not a crime here in moscow you're watching r t with me to say the world's top whistleblower julian a son just found a way to make his own address at the u.n. general assembly from his shelter in the ecuadorian embassy in london he used a video link provided by our teachers speak to the world leaders gathered in new york r.t. self-worth has the details of this unprecedented statement. it's a story this demanded to be heard incessantly r.t. have refused to ignore it having followed every detail of julian assange just case from the very beginning we last night the un listened as the wiki leaks founder delivered his impassioned appeal to see the un to the people who were gathered there calling on the u.s. to end its persecution of wiki leaks and of the man himself now he spoke via satellite link from the ecuadorian embassy in london where he's being for more than three months now as he fights his extradition he just the u.n. assembly in the great gather there are t. were exclusively

spain seems like the answer. >> today the narrative is that spain unveiled a budget and it was a lot more amenable to what they thought northern europe would approve. there's pent up money. that gave them a reason to buy their favorites. they came in and did just that. it's another situation where flows are trumping fundamentals because if you looked at any of the economic data this morning, there was nothing to like. literally nothing to like starting from durable goods, gdp. i think people have money to put to work. today they said, spain's good, let's buy. >> i agree with that. people are looking to jump in on any positive news out of europe. i think underneath that are the technicals that you have to pay attention to here. the market's giving you these strong levels of support. today it was right around the 1425, 1428, 1430 level. we hit a low of 1433. when we held that level i think that coupled with spain had a lot of people coming into the market so, again, to the up side we went to 1450 on the s&p. i think the market wants to tried to 1500. >> in terms of the technical suppor

italy and spain, italy now back over 5%. keep an eye right here, 5.009%. in spain, 5.7%. it if we can take actually a deeper look into the spain curve, we want to watch levels before this auction. that typically will give you the 5.7% up here. we are seeing a little bit firmer demand across the shorter end where the european central bank is supposed to concentrate its bond buying. i think this might be the 3 year over here. the two years, 3.15%. a quick look at commodities. take a look at oil in particular. we've seen such a strong selloff in the last couple days. we'll explore this later with our guests in the program, but brent crude adding to that weak tone nymex 91 bucks. gold and platinum lower this morning. not a lot of places that investors like around the globe. still to come, stick around, because premiere wen is meeting with eu leaders at a crucial trade summit. we'll head to brussels live. bob... oh, hey alex. just picking up some, brochures, posters copies of my acceptance speech. great! it's always good to have a backup plan, in case i get hit by a meteor. wo

. >> reporter: the focus is going to be on spain. many are questioning whether they can push through these pretty stringent cuts in their budget. spain is going to release the austerity budget plan for next year. it proposes a 50 billion dollar reduction through spending cuts and tax hikes. under the plan ministries are to cut their budgets by an average of 8.9%. public sector labor cost will be reduced by 3.9% through salary freezes. this will be achieved for an increase in the value added tax rate introduced earlier this month and a new tax on lottery winners. with the new budget the government aims to cut the deficit to 4.5% of the gross domestic product in 2013. it aims to lower the rate to less than 3% in 2014 to fulfill its pledge to the european union. observers say the government may face difficulties to achieve its reduction target this year. they site sluggish growth due to a deteriorating economy than many analysts had expected. let's get a check on the market. prices rose in new york overnight as they cheered spain's effo

seems like spain and is concentrating his mind. it is there that as it is the greatest chance of a congregation. our economics editor is in madrid. >> this is a significant moment. there is a bailout fund for europe but is not enough to bail out madrid. they needed something bigger and that's something to print money by the ecb and buy out the bonds of italy and spain and anybody else who gets into trouble on an unlimited basis. mariano rajoy, the prime minister will take a lot of convincing because the entire political system has been built on and not taking the bailout, and opposition to the kind of austerity already is growing as i have been finding out this week. there are parts of spain where it would like to make time co backwards. a small town, of course town. -- a horse town. the government is affectively boston needs a billion euros immediately. -- bust and means of building euros immediately. there is an atmosphere of rising protest. last month, the workers' union began raiding supermarkets and taking away food without pa

and generate wealth in other countries that's not a project for a country meanwhile child poverty in spain has increased exponentially story that what can the government do right now to stop this sort of ongoing i think the first thing that the government can do is. call for a referendum on paying back the debt and on the constitutional amendment that they may. it's no mistake that these people are gathered here today to talk about the constitution of spain a constitution that has been around since the transition from the franco is government and it was always said that it couldn't be touched that it was a basis for what spain is today but they didn't change it without a referendum or even consulting citizens or submitting it to the debate to pay back and illegitimate debt taken on by the private side for a much posting of the stuff now houses projects can steam and so on the anger is being built up body the job the straight you get out of points in this country the highest in the euro zone about twenty five percent of the population is taking basing the young those age below twenty five w

spain does not want to do that at the moment. but they are prepared to buy the bonds because the ecb is standing by at the moment which keeps bond prices up and the yield down so the market is quite happy. how long is this going to go on for? at the moment, it seems there will be quite a lot of pressure from other eurozone countries for spain to face up to the fact that they will not get their deficit down as quick as they would like. >> pressure from fellow europeans but then on the 21st of october there are regional elections. that is the home base. with those out of the way, we are thinking the middle or the second half of the fourth quarter -- that is when spain will step up and agreed to the conditionality that is necessary for the ecb rescue package. >> the one thing you can take away is you get a sense that they are slightly in control of the situation. it seems from what he was saying that getting pressure from other governments -- they will go down that road of asking for a bailout. >> it all comes down to confidence. >>

and spain's wealthiest region of god the lonny approves an independence referendum as a disintegrating economy and a fresh round of austerity spaniards in despair. twenty four hours a day seven days a week this is our team the jewel of words between iran and israel rares its ugly head again that the u.n. general assembly with prime minister netanyahu taking the opportunity to slap to wrong with harsh rhetoric addressing the chamber these radio leader has called on a red line to be said for iran's alleged nuclear drive more on that from our teaser marina but now i am is keeping a close developments in new york for us good to see you again the merino it seems the netanyahu even use a problem to make his point. that's right israeli prime minister benjamin netanyahu addressed the general assembly and actually pulled out a picture of a bomb went right for in saying his concerns over iran's nuclear program the israeli prime minister pulled out this picture and drew a red line eventually he said that iran has seventy percent of an renia of the uranium it needs to actually make a nuclear bomb

and hundreds of thousands of cards are lonely and so much for independence from spain claiming madrid is dragging their region down. it's more pm here in moscow you live with us r t i'm to bang would say first president obama has confirmed that his i'm basset in libya and three other officials were killed in the city of benghazi christopher stevens was visiting the u.s. consulate to when an armed mob stormed the compound in protest at an american film which is being called an insult to islam the latest from marty's middle east correspondent policia. i witness is who were there said that they heard gunfire coming from both libyan security forces and the attackers themselves and we have seen some reports at least suggesting that some half a dozen libyan security forces were taken from the scene in ambulances the american ambassador to this consulate in benghazi was the american envoy to the libyan opposition during the revolution in their country which is certainly does suggest that you now have a situation where the rebels are killing their own counterpart what we are witnessing more a

i know spain is sharply lower. but you can see they are all are at least down a point or two, germany, about 1.5 points, julia chatterly is in athens. we talked to her earlier. good morning again, julia. >> reporter: good morning. well, we've now got tens of thousands of people here gathered here in the square. but the pictures you were just showing really not giving you sense of how many people are involved. they've been marching past parliament for the last hour and a half. and actually in the last two minutes, we had the first tear gas explosion in the distance. at least the square here where i'm just above is pretty calm right now despite the chants you can probably hear. this general strike was called by the two largest unions that covers the public and the private sector here and the communist party too. so in terms of numbers, we're talking around 1 1/2 million workers. it is the first general strike, though, that's been held since this coalition government came in to power just three months ago. and people

a minnow it's two percent of the euro so italy and spain are serious places there is no doubt that spain is going to need more money italy under very good leadership of prime minister monti if it's going to avoid it but if spain goes in for a full bailout beyond their bank bailout of the hundred billion euro if you add in the greek totals as peter pointed out your super going to run out of money and then you have to go back to a very angry german populace represented by their parliament and say ok we were wrong we were kidding we need more money they need more challenges and more importantly more political challenges the finns say maybe greece should leave the euro they are a contributor the dutch say you know maybe we are not for more european integration of our pension money has to be cut you're beginning to see a group of people in the north say we need limits on what we do at the very moment the countries in the south say we need more money they're stirring up a world of hurt for the future i mean not everybody is happy with these bailouts some thirty seven thousand people signed a p

. >> in spain, thousands around the parliament. police charged the crowd. 35 are arrested and 60 are injured. then living under drones. >> droens cause death to civilians and terrorized entire populations. >> we need to rethink our policies in light of the disastrous impact the drone strikes are having. >> in major new report on the secret war in pakistan says the effects have killed far more civilians than acknowledged. we will go to stanford and new york university. then we look at why the wisconsin gov. once you in a unionized referees back. >> who has it? who will they give it to? >> as replacement refs blow a critical call, we will speak to dave zirin. all of that and more coming up. welcome to democracy now!, democracynow.org, the war and peace report. i'm amy goodman. syrian rebels have bombed a military command building in damascus, the latest in a series of attacks targeting the regime of president bashar al-assad. the rebels claimed dozens of forces were killed, while the regime says several people were wounded. greek wor

athens only three turns out battlefield tens of thousands about the rage obama style received while spain may lose one of its biggest region's cotton because of the financial. this is all see coming to life for most code hello and welcome to the program it's no surprise seacrest been the most hated a show addressed at the u.n. general assembly meeting in new york the britons added to the voices that calling for the removal of the assad regime while they recent deadly blasts carried out by the rebels in damascus have remained largely ignored by the international community . has been following the second day of their high profile gathering for. the prime minister britain addressed the general assembly centrally reiterating a conversation that began by u.s. president barack obama and the french president said just twenty four hours ago the u.s. and its western allies are very much pushing for a charlotte the president of syria to step down they've all said in different words that his time to go is now and that he and his government do not belong in the international community leader of the r

spain is a country with negative international position. it means he has a lot more debt vis-a-vis the world. so whatever the ecb does must be aimed at encouraging continuing capital. although they've been smaller in the past, of course. >> the spanish prime minister here, there is growing pressure on him to ask for aid before the ecb will do anything. so the standoff between rahoy and the ecb, how significant is that? are we going to have to wait for rajoy to move fist? >> no. i think the ecb must say more or less how they want to proceed and it will be up to the spanish government to decide when is the right time to apply for this support based on what is in the bond market. >> but he doesn't want conditions. is the ecb going to insist that those conditions are in place? and is that even in their place? >> i think politically he's concerned because he has had to accept conditionality on the banking rescue program. but the fact is, the condition for efsf support are based on the recommendation from the european commission following the pro

certainly it's spain. i think what's coming out of spain. and i haven't read it there but it seems to be moving in the right direction. that couples with it is the end of the year, we did bounce off of 1425, which was a level of support the market needed to test. so here we are, we're going to get 1450 again. i think at 1450 and higher trades start to put up their longs again and even attempt to go short in anticipation -- >> a new high for the day, kenny. >> how wrong was i? >> and the fed continues to print money. >> that's right. >> the fact that pisani was over in spain spending money. >> i hate to bring it up, nobody like o's to talk about it, but we moved 60, 70 points on the dow the minute the economic news came out of spain. they got a new budget. more spending cuts than people thought. that's@market rally. here you see some of the violence that's been going on in madrid in the last couple weeks, in the last few days really. i was in barcelona for a week. there wasn't the rioting but there is in nationalist cat lonian fervor that is

this time in spain as the euro crisis strikes again. this week, clashes between protesters and spain as the government sets out its austerity budget for 2013. the country is now ungovernable? we look at florida, a crucial swing state in the upcoming election. david cameron reaffirms its commitment to sending 0.7% of gdp and foreign aid. can western countries afford to be so generous? and juliette binoche has returned to the london stage after 12 years. >> you can say any age because it is about passion and love. who you are. hello. a budget for a crisis to get us out of the crisis was the way the deputy prime minister described her government's actions. 40 billion euros worth of cuts by her government was met with the stress from the spanish peseta since all the european commission -- what nobody knows is whether the markets will be pacified. >> of spain has been bracing for this day, counting down to what they knew was going to be painful. tv stations have been cobbling little else for weeks. their viewers were shocked as the intensity

. >> the first flash is from spain. the banking system has a capital shortfall of 59.3 billion euros. i believe this is in line with expectations. spain, another headline. capital shortfall 53 ppt 7 when you take into account the tax credit. some of the stuff written beforehand was that if you're a good bank, you can use it. if you're a problem, you can't use it. spain says seven banks have capital needs. seven do not. and they said the shortfall is 3.2 billion euros. details on the banks. so this is appearing to be in line. you said earlier there were some significant questions as to how they were doing the count iing here and the amount of money needed to shore up spain. there's 100 billion euro available. for the moment, spain is going to be e below that number. >> it looks like the euro has popped off a little higher as a result. if we can show the spanish tenure at some point and also the major averages. we're looking for the bad bank. how much capital is it going to need and what price are we going to see those ba

several million of catalonians march for independence of from spain meaning the dritte is dragging the region down. run its life pm here in moscow you're live with us on our t.v. thanks for having us as your viewing pleasure first news just in there's been an attack on the u.s. embassy in beirut according to i'm very find reports this comes after president obama confirmed that his m bassa to libya and three other officials were killed in the city of benghazi christopher stevens was at the u.s. consulate are they when an armed mob stormed the compound in protest at an american film which has been described as an insult to islam artie's a middle east correspondent a policy has more. i would use those who were there said that they heard gunfire coming from both libyan security forces and the attackers themselves and we have seen some reports at least suggesting that some half a dozen libyan security forces were taken from the scene in ambulances the american ambassador to this consulate in benghazi was the american envoy to the libyan opposition during the revolution in their country whic

but spain has resisted accepting conditions imposed from outside. part of the strategy behind today's budget was to adopt tough measures voluntarily in the hope no more would be needed in the event the country needed a bailout >> when i come to request a bailout, the european union set out conditions. but say, the spanish government is already volunteering to implement those conditions. >> you do not need to travel far to discover the death of spain's problems. this is a population of just 2100 people. its debts are 6 million joerres, however. these public-sector workers are not being paid. >> i have not been paid since october, 2011. -- october, 2011, said this administrator. >> how do you survive without being paid? >> my parents and partner are paying the mortgage. family helps, yes. my parents, i live with them. this week, the frustration has fuelled large protests. the government is caught in a dilemma. the mounting austerity, but it also fears of the humiliation of asking for a bailout. spain may be cutting its spending, but unrest is rising.

and madrid turned to a battlefield as turns of thousands of their rage over a state received while spain may lose one of its biggest regions catalonia because of its tonnage more. international news live from moscow this is also here with me thanks for joining us the u.n. general assembly meeting which is currently underway in new york seeing not only world leaders taking the stage. was unable to leave the ecuadorian embassy in london despite being granted political asylum still found a way to speak of his course to the international body they whistle blower's a draft was broadcast exclusively by altie. brings us the highlights award i have to say. this is a man who only on wednesday with described by the united states as an enemy of the state just a few hours later he was speaking to the united nations he gave quite an emotive speech saying that he was speaking as a free man soli thanks to the efforts of ecuador which of course has offered him asylum and he's currently staying in the embassy here in london he was very hard on president obama he said that there had been more offenses aga

>> how important is this meeting for spain? further down the line, italy possibly. >> the spanish government argues that the crux of their problem at the moment are high borrowing costs. they cannot go to the market and get money at a sensible rate of interest. there are two scores of thought white spain's borrowing costs are so high -- thought why spaipn's borrowing costs are so high. >> some would say it is the ecb offering direct help to governments which it is not supposed to do and people in germany are now convinced. >> tom alluded to the problem. if you think the spanish problem is that its economy is out of kilter, that its problems stem from a housing boom financed by borrowing, if you believe that, the answer is that thing has to be sorted out the real measures. if you believe that it is something speculatively on the financial markets, then the ecb has a role. the head of the bank believes the former. he believes if you relieve pressure on spain by buying up its dead, making it easier for it to borrow money, then tho

we saw interest rates rise in spain. there is a debate about whether or not interest rates rising in spain are profit-taking as say mo -- as simon says -- that wasn't intended. and what's happening there. >> they are equally worried that the ecb can come in and burn them. you try shorts and you will get big buying from the ecb. that's not a game to be involved in. this will be held in a tight range. >> michelle, the austerity measures to be revealed in the budget, we got a hint of it and you mentioned it. to the rest of europe they may not go far enough. what about spain? are they going to be viewed as draconian or not? >> i think so. you are seeing protests because they know what's coming. there will be disappointment. what rajoy didn't say today and what many in europe expect is that pensions will no longer be linked to inflation. just like here in the united states social security rises automatically if there is an increase in inflation. that happens in spain as well. they are talking about eliminating that. the europ

>> day two that we saw protests in spain. in fact, just half an hour ago, there were still thousands and thousands of spaniards in neptune square around the parliament protesting. luckily tonight it was not violent. but last night, it definitely was. dozens injured, dozens arrested. the reason they are protesting is because tomorrow spain is going to release a new budget for 2013. it's expected to have cuts to social spending and also hikes in taxes as well. and so they're pretty angry about that. they're very, very tired of it. they've seen their economy falling. they've seen very high rates of unemployment. as high as 50% for young people. we also saw violence in athens greece, today as well. they were protesting there as well because you could say, same story. another round of cuts of government spending which will mean lower salaries, pensions that could be affected as well. a lot of the details haven't come out, but they kind of know the story already. this is athens. once again, molotov cocktails as we have seen in the

. >> troubled economies like spain got thrown a lifeline to it. the european central bank said it stood ready to buy unlimited amounts of bonds to help bring down borrowing costs for countries like spain and italy. the market's bounce on news of an ambitious plan designed to ease the eurozone crisis -- the market's -- the markets bounced. six weeks ago, mario druggie promised to do whatever it takes to preserve the europe. today, explain how. >> we will have a fully effective backs up to avoid destructive scenarios with potentially severe challenges for price stability in the euro area. >> so how with the plan work? the ecb would buy unlimited government bonds from a eurozone country asking for help. that should drive down the country's borrowing costs, but there would be strings attached. nations would first have to request help from the eurozone's bailout fund, and except strict conditions such as austerity measures. >> on the streets of madrid today, protests against a visit by the german chancellor, angela merkel. they blame her for austerity.

reportedly mole's whether or not that country will need easy bond buying which would enter spain into the e.c.b. workhouse the crisis at the same time reportedly fuels the independence movement in this banished region of catalonia we'll have more let's get to today's capital account. today more hokus pokus in europe to report the e.s.m. is upheld but the decision adds a cap reportedly making large scale bailouts cost prohibitive it also reinforced buddhist dad beat zero power over activation and jose manuel barroso in his state of the union speech called for deeper integration in europe but in reaction we feel it was nigel farage that put it best. clear the woes of asian state should continue to exist it mustn't has any democratic. yet the euro's responded positively another example of this. and that example would be markets responding to policymakers not fundamentals where down left is right and the world resembles more of a wonderland then ality while earlier today for some reality i talked to godfrey blue member of the european parliament in u.k. independence party member first i a