germany will do whatever it takes to keep grease in the eurozone, that was the message from chancellor angela merkel as she played host to her greek counterpart. george papandreou is in germany to drum up support from the government and the business community. he addressed the federation of businesses to urge the leaders to work with greece. >> there is a determination to get through the crisis. >> angela merkel and papandreou said the that stabilizing greece is essential. >> we have had the common experience that we are bound closely together through the euro. the weakness of one partner affect all partners and
conversely, the strength of individual partners guarantees prosperity and a future for all. >> earlier in the day, papandreou asuured business leaders that athens was standing by its commitments. he asked the audience to play as parts cost play its part. >> i can assure you that your investment increase will not keep us in the past. this is an investment to move greece into the future. >> the federation of german industry called on greek companies to remain committed to their own country. >> no foreign investors will make their way to greece. if they see greek investors move in the opposite direction. >> the visit was to underline
the commitment for the leaders to overcome the debt crisis. >> this comes during a crucial week here in germany. the parliament will vote on the latest move to strengthen the bailout fund. this is a test of leadership for the angela merkel government. will she be able to get the majority she wants without having to depend on opposition support? "she is under pressure. her busy schedule did not prevent her from posing with photos with this group of visitors to berlin. she had just come from an urgent discussion. she is fighting to sway opponents within her own ranks. the result of a straw poll suggests she has a chance at getting a majority on the issue. at the same time, but the finance minister is drumming up support among members of the coalition partner, the free democrats. leadership is convinced that a
stability fund is needed for a stable euro >> it is imported to strengthen and support the euro. this will strengthen germany's position. >> a new book about the fdp leader provided an opportunity for an optimistic assessment by the prime minister. >> -- by the chancellor. >> this will be a successful move forward the coalition. >> the chancellor knows that she has enough support for the rest to fund, she cannot be sure that everyone will vote yes. >> how close could this vote on thursday get for angela merkel's government? we put that question to our political correspondent. >> let's establish that it does look almost certain that there is a new and extended bailout
package that will be ratified by the german government. there is much more uncertainty about how the members of parliament who represent the two parties to make up the coalition government will vote. they are the conservatives and the free governments. there was a test vote earlier today and we have been getting whispers from the free democrats. what we get are about 20 members of parliament representing government ranks and they are not about to vote no. that could lead to a scenario where angela merkel would only get this through parliament with the support of the opposition. that could lead to calls for new elections. what we will see is a coming together in government ranks.
we will see a closing of government ranks and we will see angela merkel getting the majority and certainly this ratification going through parliament. >> we will be taking an in-depth look at greece and the eurozone later on in this half-hour. it was a great day in frankfurt. >> what a positive mood on the markets. there was no stopping the rise of the european share prices. stocks continued their rally right through the finish in frankfurt, paris, and london. they hope that european leaders will reach an agreement to contain the debt crisis. >> we got this report from the frankfurt stock exchange. >> the relatively strong consumer confidence did a lot
of good for the trading floor. even bigger winners were shares of the financial sector. if shares of commerzbank and deutsche bank gained more than 12%. the fund might even be bigger. it could be designed in a way which would allow banks in german companies and mutual funds to get rid of even more of their bad assets than previously thought. >> let's take a closer look at some of the market numbers. the dax sword up over 5%. the euro stoxx 50 was up over 5%. the dow jones advanced more than 1%. the euro is going for $1.36.
the prime minister of luxembourg is one of the people at the eye of the storm right now. he is the head of the euro group. he delivered a rallying cry to the european parliament saying that the block's response has been too slow and the system must be overhauled. the eurozone must stick together to battle the debt crisis. >> an appearance in strasbourg is something of a home's own for the euro -- home game for the eurozone chief. he had clear words to those who believe that greece should return. >> i am totally against the idea that one or two member states should be compelled to leave the eurozone. that would achieve nothing.
>> he says that the eurozone must cut its ranks to make sure that the currency survives. he said that the international inspectors are set to return to athens later this week. this means that greece could get its hands on the next installment and that upset some lawmakers. >> you told us that greece fundamentally has no problems because she is a member of the eurozone. that is diluted. this is keeping members trapped. >> they said they were making life hard for the institutions coordinating euro policies. >> we have four or five bodies looking after the euro. the euro has never been so badly off. >> the parliament is calling on
brussels to help get more 2 manage the debt crisis. >> israel has approved the construction of more than 4000 new settlements in east jerusalem. this is to be built in -- the palestinian authority president has made ending settlement activity in the west bank and east jerusalem as a condition for resuming negotiations with israel. he applied for recognition for the posting state at the u.n. last week. a court in saudi arabia has sentenced a woman to 10 lashes of a whip for driving a car. women are forbidden from driving the dozens took to the streets in june to try to break the taboo. efforts -- the king said he would give women the right to vote.
protesters and peacekeepers have been injured at a disputed border crossing. they were trying to prevent the removal of a barricade. tensions have been high for a couple of months as ethnic serbs resist efforts by the government to establish the authority in the region >> some 1500 members of the coast of those serb minority gathered near the border post. they faced off against nato peacekeepers. among the troops were soldiers from germany. suddenly, there was an explosion. the demonstrators threw improvised bombs at the troops. the soldiers responded with teargas and plastic bullets. the mission has called for calm. >> violence is not the way forward. people should remain calm and act responsibly at this time.
it is important that people respect the rule of law. >> the minority would like to prevent the government from controlling the border posts. much of the anger is directed at the nato forces. they shut the last roads that crosses the frontier. >> prosecutors are calling for a seven-year prison sentence for the former prime minister. she is accused of abusing her office when she signed a gas import contract with russia. she denies the charges and say they are politically motivated. the eu says they might scrap a trade deal if she is jailed. >> you have some consumer confidence news? >> that's right. german consumers, will they keep
spending? there are worries over the economy which are hurting consumer confidence but the latest index for books in purging. >> in recent months, the germans cut back on spending and or reluctant to purchase major items. many analysts fear that the trend would continue but now consumer sentiment appears to have stabilized. >> this ability is mainly due to internal factors affecting germany. we have unemployment that is going down, employment is on the rise, and incomes have increased appreciably. >> the market researchers are optimistic about the near future. they're sticking to their forecast of the increase in consumer spending this year despite the effect of the european debt crisis. >> the federal court of justice has ruled against two investors who lost large amounts of money
following the bankruptcy of lehman brothers. they demanded compensation for advice from their bank but the high court ruled that the investors were not improperly advised and the retail adviser could not have known that the u.s. bank with later collapsed. boeing 7873 miner has taken off -- boeing 787 dream wiener has taken off. this is bound for tokyo. this is the first new design in a decade. it is made of carbon fighter which cuts fuel consumption by up to 20%. back to you. >> the manslaughter trial of the doctor accused of killing the king of pop, michael jackson, has begun in los angeles.
conrad mary is accused of causing jackson's death by giving him an overdose. the prosecution said that jackson's misplaced trust in murray cost him his life. the pop singer gave himself a fatal dose, that is the argument of the defense team. for almost seven years ago, a ship became another casualty of the second world war when it was torpedoed by a german submarine. it might have been forgotten if not for the huge amount of silver on board. the wreckage was found earlier this month. >> treasure hunters off the coast of ireland. the u.s. salvage company uses remotely operated vehicles like this one to search for sunken ships. nearly 5,000 meters below the surface of the south atlantic,
they discovered a british cargo ship. it was torpedoed by a german submarine. it was carrying tons of silver valued today at 170 million euro. >> we are excited. the deepest ever, potentially the richest ever. technological challenges that we have lots -- have ahead of us are something that we can sink our teeth into. >> it was on its way from calcutta to liverpool. 84 men died in the attack. some archaeologists think that recovering the ship is not a good idea. >> do you consider this a good enough reason alone to not disturb the site and that is why you're looking for questions to be asked to justify that? >> under the salvage agreement, the explorers will keep 80% of the profits, the rest will go to
>> agrees desperately needs a the next installment of bailout money to stave off bankruptcy. -- greece desperately needs the next installment of bailout money to stave off bankruptcy. they need the ecb, the imf to sign off. this will be based on the assessment of how well greece is implementing reforms. prime minister george papandreou traveled to germany
to underline greece's commitment. more than 90% of the people think that the austerity measures are unfair. >> fast german cars. they have been this man's business. he has done well and importing luxury used cars and selling them to greece. now even the wealthy are feeling the pinch. his show room is full of unsold vehicles. today, big gas-guzzlers' of the last thing people need. >> we probably have five or six months left selling cars, that is it. whatever is left will go to germany. i would have to trade small cars but that is not worth it, so i guess we will close down. >> every day, people crowd the cafe is to scour the morning newspapers with their litany of gloomy headlines such as 250,000 civil servants to get the
attacks. the one newspaper describes merkel's demands as the german news around greece's net. >> they want a europe of equal partners or is she looking after her own interests? a solution will be found of germany wants one. >> she is stubborn and overdoing things but what she is doing is necessary. >> it is not just the poor who have been feeling this recession, the middle-class is have been hit hard. this shelter for homeless people previously catered to drug addicts or people with mental health problems. now, this is taking in people like this. he said he had a good job. the recession hit. he feels a sense of shame for having ended up here. >> i worked as 18 years as a chef and took a loan to buy my
house. if i lost my job. then the bank took possession of my home. first, i stayed with friends. i have been homeless now for a year. >> the card dealer follows the news from brussels and berlin where some politicians discuss the possibility of greek and bankruptcy. the exit from the euro would be a disaster. >> it would only benefit the 10% who already have money in foreign bank accounts. for the rest, the consequences would be incalculable. >> greece's main port reflects the changing times. car imports have dropped drastically. last year, chinese investors to control of 2/3 of the container port. athens might be the greek capital but it is berlin and
beijing calling the shots. >> greece is under pressure to cut the size of their public sector and cut the workforce. this means shedding more than 100,000 jobs. athens has been asked to sell off firms and private it is crucial utilities. even the airport could be handed over to private investors. the government will offload some of its majority stakes. sales which many people feel are very contentious. >> waste water flows through this sewage pipe. this is part of one of the largest waste treatment plants in europe. along with most public assets, seeing said to be sold off. >> this is due to be sold in the summer of 2012. some preparations are needed ahead of it, steps which have
not been taken. the government has set up a commission that will oversee the sale to investors. >> they fear a major hike in prices after the sale and they are afraid that the same will happen in other state-owned companies. that is what makes privatization so unpopular. they are aware of it in the trade union offices. the union has been putting up a constant fight against privatization. they argue that the government should find cash from someone else. the notion that someone else should foot the bill is typical. >> today's prices would bring in 150 million euro. this is a drop in the ocean in the light of the overall greek dead. this will not help, god knows. this is not the way for the state to haul itself out of the difficult situation.
>> that is a view shared by workers at the state of energy company. they don't feel that wholesale privatization are the solution. they accuse the prime minister of selling the country out cheap. nearly all employees are in the union and they have resorted to cutting power supplies in protest. >> we will see who comes out on top. we believe that the people in this country are on our side. we have the right to use any means to fight. we have made it clear that we don't want to privatize. >> plans are afoot to sell off the athens airport. airport staff house out to strike in protest >> joining us now in the studio is our political correspondent. papandreou spoke with the german
chancellor. is merkel being too tough on greece? >> the conditions are too tough. requiring greece to privatize industries and to cut public spending and to raise taxes on everything will throw greece into an economic tailspin from which it cannot recover. germany did not dream up these conditions itself. the tough love that is dispensed to greece is coming jointly from the european union, the central bank, and the imf. to the degree that germany is considered a proxy, it could be considered too tough but the common criticism is not fact that it has been too tough. that they are too slow to push these bailout packages. they have been criticized for dragging their feet. >> what can germany do to help greece? >> there is very little that germany can do to help greece.
it must be coordinated between the european union's and the international monetary fund. it must be seen in the context of the larger the financial crisis. there are already packages for ireland and portugal. some we are looking at possible meltdown in other european union countries. there is not much that germany can do expect -- except to express moral support. they say they have the utmost respect for what germany must do a mean what -- they say that they have the utmost respect for what greece must do. you can see the german and prime minister getting together. at the street level, there is a certain amount of resentment. in greece, there is this sense