>> will come into "the journal" from berlin. >> these are some of these stories we will be covering in the next 30 minutes. german lawmakers debate next year's budget in the shadow of an imminent court ruling on the legality of bailout. >> a suicide bomber attacked a police station in a stumble, killing a police officer and wounding seven people. >> the global players of the aviation sector slipped into berlin for an air show billed as this year's main event.
>> germany's highest court has rejected a last-minute challenge to stop it ruling on the eurozone's new bailout fund. >> a german legislator had applied for the delay, arguing more time was needed to consider a rescue scheme that could take the entire block down a very different road. >> the constitutional court will hand down its verdict as originally planned, ruling on the legality of the 700 billion euro fund. germany is the main contributor, so it is backing it. >> these parties -- these proceedings come as the chairman paul raman looks at how much money will be half the funding next year as part of the budget. >> the timing could have been better. the budget debate coinciding with the constitutional court's debate on the esm. the inquiry -- and certain
future of europe is in states like grease makes things difficult enough. germany says for the fun to work, troubled countries must implement reforms. >> without such reforms, nothing is going to happen in the member states. that is called conditionality. conditionality is an indispensable requirement for every european aid program. that is in that treaty. >> that government says germany's proposed budget for 2013 is solid. revenues are expected to reach 283 billion euros compared to expenditures of 302 billion. that would amount to a debt of 19 billion next year, but that is down from this year's 32 billion. >> germany has become much more shock resistant to. our power of resistance to such events has grown. >> but that is not enough to offset the opposition's concerns.
>> your plans assume there will be no crises or downturn between now and 2016. who can believe or assume that? >> they can only hope. if the esm goes ahead, germany will be all -- will be liable for 190 billion euros. but for that to happen, the constitutional court needs to give the green light tomorrow. >> so much at stake, let's bring in our political correspondent. the debate is casting a long shadow over budget discussions. >> that is right. the eurozone debt crisis is casting a long, dark shadow over budget planning all over europe and germany is no exception. it was clear on tuesday in the address by the finance minister that he tried to reassure a rather nervous parliament that the spendthrift countries in europe are beginning to embrace
this note -- fiscal discipline. he pointed out 25 of the member states has signed on to the fiscal pact to impose budgetary discipline, budgetary limits. but no one knows how this crisis is going to play out and it could very well make all of those well laid plans by german parliamentarians for their budget in 2013 come to nothing. >> we will get back to you in a minute. with some much at stake, let's move on to this ruling by the constitutional court -- 37,000 germans have signed on as co plaintiffs in this case. >> they argue this scheme will transform the german parliament into a rubber-stamp for decisions made in brussels. what happens to their say and how their taxes are spent? >> this has brought to light a major rift between the public and elected officials over the power of parliament. >> the court is considering
whether germany signing on to the new the euro rescue fund what undermine the autonomy of the german parliament. currently, lawmakers vote on all federal spending. the plaintiffs argue if the esm goes into effect, it will be the german parliament that makes decisions about spending billions of euros. instead, it would be left to the german representative appointed by the government. they could agree to aid packages with a parliament's consent, effectively disempowering them. >> the constitutional court has developed a clear line -- protecting and defending the rights of parliament. within the european union, the parliament is losing influence. >> the judges will deliver their verdict on another issue related to the esm, the new rules for
ensuring the budgetary discipline known as the fiscal pact. that would make debt reduction mandatory for all eurozone states. the german parliament would have no authority to increase spending even if they wanted to. the plaintiffs say this violates the rights of parliament. in the end, the court will not decide whether european financial policy is wise or not. it will consider whether the measures are -- >> is that a representative of public sentiment on this issue? >> a record number, 37,000 people in germany attach themselves to this constitutional complete, challenging the ratification of the european stability mechanism in the fiscal pact. an interesting poll came out, giving another clear indication of german sentiment. polls show 54 percent of germans feel the court should indeed grant a temporary injunction to
give them more time to consider the legality of esm and the fiscal pact. only 25% of germans say the court should go ahead and allow the german ratification of esm, so there is deep skepticism. it is extremely complex, but germans fear for their savings and for their country's fiscal future. >> thank you for the coverage. european shares rocketed ahead today and the german dax hit a new high. >> here is more from our markets and in frankfurt. >> a rather rocky start to the day, but the dax reached a new high. people seemed full of confidence that the constitutional court in germany will say yes to the bailout fund.
people just cannot imagine a different result year. contributing to the share price gains, it is expected the fed will announce new stimulus for the economy this week. people ignore the warning of the rating agencies that it might lower its credit rating if the u.s. doesn't match to reduce its national debt. >> will have more on that warning it later in the show. let's get a closer look at the market numbers. the blue chips were higher on the day. over in new york, the dow jones industrial average is continuing the trend, up by 0.5%. the euro dollar is trading for $1.58. the spanish prime minister says he will not accept any more money from the european union if it means being told what spending cuts he has to make.
>> in a television interview, he said he is not prepared to cut pensions. the european central bank said last week that they're willing to buy unlimited amounts of bonds to bring down the borrowing costs, but he says he will not ask for help until he knows with strings are attached. the greek prime minister has been in talks on the eurozone crisis. >> he was welcomed by mario draghi at the bank's headquarters. greece's trying to persuade foreign lenders to release the latest installment of financial aid to help avoid bankruptcy. in return, athens will have to implement harsh austerity measures that are highly unpopular at home. bailout packages are figuring prominently in the dutch election. >> it takes place on wednesday. we'll have more on that in this half hour. >> in turkey, a suicide bomber has wounded at least seven
people. >> it is thought to be from a leftist group which has published its involvement on a website. police are looking into possible involvement related to the unrest in syria. >> the suicide bomber killed eight turkish police officer in front of this police station. a militant leftist group called the people's liberation front claimed responsibility. according to witnesses, a man in his 20s first through a hand grenade and then blew himself up at the building's entrance. >> we were having breakfast when we heard the explosion. we heard the blast and thought it was from one of the nearby curries'. that -- if one of the nearby quarries. and ambulances started taking away the one did. >> the police officer was guarding the entrance. for employees survived and are being treated for their injuries.
the building has partially collapsed due to the force of the explosion. civilians have been evacuated. the people's liberation army was blamed for another suicide bombing in a stumbled killed three people in 2001. >> there has been more fierce fighting as this unverified a video shows. there are reports of battles in other cities across the country. the united nations says more than a quarter of million people have fled the country. the un refugee chief and actor angela initially have visited a camp in jordan have tried to bring attention to the crisis. >> of deutsche bank shares rallied 1 and 4% after the announced plans to drastically cut costs to save 4.5 billion euros per year. the two new ceos have set out
their road map for the institution's feature. nearly 40% of savings will come from streamlining the bank's infrastructure, replacing manpower with i.t. platforms. they say there will be cuts to bonuses to top executives. polling is upping its stakes in the jet market, getting in on the action after the trade fair. >> it is known as the world's oldest aviation show and it's taking place next to the unfinished international airport. a bit of an embarrassment as it was meant to be up and running long ago. >> here is more on the latest developments in the aviation sector. >> boeing is back. the americans hadn't made an appearance at the air show in berlin for a decade. but they are here now with their new jumbo jet, a 747-8. >> it has gotten to be a bigger
air show and there are a lot of people here and customers. a lot of suppliers. we decided this year it made sense for both our defense and space and security division as well as our commercial division to be here. >> and billing is not alone in thinking berlin is the place to be this year. europe's airbus seems just as optimistic. but there are 15,500 passenger jets flying today. in 20 years, we expect a fleet to cut -- to grow to 32,500 public basically doubling in size. >> more plans to lower carbon emissions. these wingtips are expected to achieve 5% improvement in fuel efficiency and the new engines are more economical than ever. where other industries are worried about a downturn, the aviation industry is looking at a bright future. >> exactly 11 years ago today, a
terrorist flew hijacked commercial airliners in to the world trade center and pentagon, changing the world as we knew it. new yorkers have held moments of science -- moments of silence that time the planes flew into the twin towers. the names of some 3000 killed were read out loud. >> in washington, president barack obama and first lady michelle obama paid tribute to the victims, first at the white house and later played a wreath at the pentagon. president obama and republican presidential nominee, mitt romney, each released statements speaking of america's united stance against terrorism. i think it is fair to say we all remember where we were on that day. >> exactly. it is something i will not forget. we will be back in one minute with tamara's decision on the eurozone bailout fund. >> and the upcoming dutch general election. don't go away.
>> are you sure? dirty water is the only drink millions of children have. and 3000 of them die every day. please come and get involved. make your donation to unicef. >> welcome back. europe and countries around the world are waiting for the german court decision on the esm. some say without the fund, europe could fall deeper into the eurozone crisis. but how about concerns regarding national sovereignty? many say risks to the system is so grave that some concessions should be made. here's a look a potential no ruling would mean for the eurozone. >> the german president is likely to be keeping his eye on the court. if a pact on budgetary
discipline cannot go ahead, the president will not be signing legislation for either. since germany would be contributing 27% of the rescue fund, that would stop the esm from taking effect. in the worst-case scenario, there would be no help for cash strapped eurozone states. borrowing costs could rise to unsustainable levels. growth programs could become unaffordable. unemployment could rise. demonstrations and strikes like these in greece and spain could cause trouble for governments across europe. speculators could see their charts come into turmoil. >> it would certainly lead to chaos on the markets and that is the last thing we want. that is why everyone knows the constitutional court has a major responsibility. we were careful to make sure the
legislation is constitutional and we are confident we are right. >> some see the european central bank as a savior. their unlimited on a buying program should make it easier for countries like italy, greece, portugal to borrow at low interest rates. >> and adequate or hesitant policies and wavering is what led the european central bank to take such strong action. i think it will be necessary to win the time. >> the european central bank will only help countries that agree to implement tough reforms and austerity measures. once that some countries may not be prepared to accept. if the court rules against it, the german engine work -- german image would be damaged. if you would blame them for not getting the debt under control. >> eurozone bailout are figuring prominently and voting in the
netherlands tomorrow. >> like germany, that country is funding struggling states and many want to see a cap on the taxpayer liability. >> the two major parties are opposed to more bailout and the electorate is suffering from austerity fatigue as they had to the polls. >> a litmus test for era. the conservative and the social democrats are leading the polls for the upcoming batch election. both say they are pro europe, but their approaches could not be more different. the prime minister of the netherlands has promised to balance the budget at home and has called for more controls on countries receiving european union bailout money. >> a country has to stick to its budgetary constraints. only then can we help them. if the budget is not in order, it is my responsibility to say no.
>> but a growing number of people believe the problems can't be solved through spending cuts alone. they are looking for alternatives. social democrats are calling for a u-turn and european approach. he wants the focus on growth. >> we can talk about how all happens, the pointing fingers doesn't help. it is our collective responsibility to make sure the european economy works. >> more radical parties are doing poorly in opinion polls. the two main parties are neck and neck, making a coalition a likely outcome. >> for more, we spoke to our correspondent in brussels and asked how big a role the austerity measures are playing in the dutch vote. >> austerity plans for what brought the coalition to collapse in the spring.
there were also what made the alexian's the necessary in the first place. the entire thing focused on these topics. not even right wing populace took out what are usually the favorite topics like immigration and islam. he focused on the the euro and these topics were designed to be the winner in the dutch elections, and that means the dutch elections could determine the euro into the future. the netherlands have always been a very close ally of germany and the austerity plans, but if they lose, it will be more difficult for angela merkel to push for more a austerity in brussels. >> what about anti-europe sentiment? what has changed? >> the dutch have become skeptical of pro european alexy. they say they were pushed into
accepting the euro without being properly informed. skepticism is growing and they have developed a skepticism toward angela merkel, not in the way she deals with financial matters. they like it but she is very strict and they appreciate her financial rigorous test. but she has been pushing for more political integration that would meet in brussels would give more power and that is not something the dutch want at all. the european union as awful will take a course in the future, but it is unknown. >> we will have a look at how the national debt of different countries around the world stacks up in comparison. >> first come here is some of the other news from around the world. in and, at least 11 people died in a car bombing in the capital. the blast was directed at a convoy from the defense
minister. he survived. it comes after the military claimed responsibility for killing a top al qaeda leaders. >> of fresh attacks in kenya left at least three police officers dead. the comes just hours after the president imposed a dusk to dawn curfew after ethnic clashes on monday left dozens dead. >> in eastern france, a bus swerved off a motorway, killing at least two people. some 70 people were on board the bus. 30 were reported injured. as we mentioned earlier, moody's has threatened to downgrade the u.s. if it does not lower its debt by next year. >> debt has been something we have been hearing a lot about on both sides of the atlantic, especially in light of the eurozone debt crisis. >> but how to countries stack up
against one another? >> for years, europe's banks, governments and citizens have taken on too much debt. now europe finds itself having problems paying back the borrowed money. but does the eurozone have more debt than other economies? >> who has the most that? the usa? >> argentina. >> greece. no? don't tell me the u.s.. >> at 230% of its gdp, japan has highest rate of debt in the world. the usa comes in second at 103% of gdp. then comes the eurozone in third place. china's debt ratio is well below the international average. however, for individual european countries, the numbers are much worse. the gdp of some eurozone
countries continues to shrink and unemployment is high. which countries have the highest unemployment? >> it the united states? >> i heard it was spain. >> china? >> of the eurozone has the highest unemployment rate with 11.2%, higher than the u.s. and china. but europeans without work don't have to sleep on the streets. eurozone countries provide relatively generous assistance for the unemployed. but europeans fear they won't be able to afford this for much longer. eurozone countries have to compete not only with industrial giants like u.s. and japan, but also country still industrializing like china, india, and brazil. but which country has the biggest economy? >> the world's biggest economy? >> it germany? >> it probably china. >> the biggest economy in the
world is still the usa. they make up 90% of the world economy. china is no. 2 with 14.3% of the world's total. the eurozone is close on china's heels. then comes india, japan, and brazil. if we look at per-capita income, the old order is still on top. the usa, japan and eurozone are far ahead of brazil, china, and india. america and europe's wealth is largely driven by creativity. this is borne out by the numbers. if we look at patents, a 29.4% of patent applications in 2009 came from the usa. 24% came from eurozone. next come japan and trailing far behind, china. the eurozone finds itself in deep crisis, but the numbers
show it has great strength that should help in the coming years. >> we have all little bit of sports news now. best kyte surfers in the world are at stop to of the 2012 world championship kite serving tour. despite the extreme when the conditions, germany has made it through to the finals this weekend. >> the more daring in maneuver, the more points she and fellow writers get. competition in a light will round up the tour later this year. >> that is it for now. thank you for joining us.