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tv   Journal  PBS  May 14, 2012 6:30pm-7:00pm PDT

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>> hello and welcome to" the journal" on dw tv. coming up in the next half-hour -- but no breakthrough on a government. the president calls latched this -- last-ditch talks. >> what does election failure mean before angela merkel's government? captioned by the national captioning institute >> we start in greece where there has been no progress on forming an annual government.
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president papoulias is not calling it quits right now. >> tuesday's session involving mainstream parties, the conservative new democracy yet -- no democrats yet and the key syriza party stayed out. they want greece to walk away from the bailout. >> now syriza says they will attend tomorrow's talks. and president papoulias is supposed to be considering another technocratic government. we have this on another high- stakes day in greece. >> the headlines in greek papers struck an urgent note. a symbol of communication failure -- the tower of babel. tea party leaders to not seem to be talking the same -- party leaders do not seem to be talking the same language. >> they are not going to agree.
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we're probably going to have new elections. europe will stop giving us money and we will stop putting food to eat. >> i think that the politicians of other things on their minds. nobody knows if they are actually thinking of the country or something else. i really do not null. >> each party has its own recipe for dealing with greece's problems. some favor staying with austerity, but one -- some want to renegotiate the austerity terms or scrap the deal altogether. the left-wing syriza has ruled out a coalition with the conservatives and socialists and did not take part in monday's talks. the small democratic left party could fill the void, but they will only take part with loewe -- syriza on board.
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there are signs the public patience is wearing 3. -- thin. >> ok, let's go to athens. brian williams is standing by. bryan, we hear the president is thinking of belts forming another 10 -- is thinking of forming another technocratic government. what could that look like? >> the two possibilities could be a government like the one that ruled greece from last november, basically until now, which was basically had the prime minister, the technocrat as the head of the government, but all the ministers were of other parties. the other possibility is the italian model where the government is headed by the technocrats and the ministers themselves are technocrats. that is something that would
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have to be thrashed out to. we have the party is seriously considering it. >> we have heard the far left syriza have said they will come to tuesday's talks after saying they would not. how good is the sign of their attendance? >> i do not think people are reading an awful lot into them attending this meeting. the point is, syriza's has always been they are not going to meetings where they could be perceived as giving legitimacy hannelore kraft and -- pasok and nea dimokratia. they have no part -- gave no problem attending -- have no problem attending a meeting or
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all parties are present. >> they would basically have a referendum on staying in the euro, right? >> that is correct. the still waters are going on to that very question. the election, if it happens, will be on june 17. that would be asking greece -- do you want to stay with your rope, or do you want to exit the eurozone -- stay with the euro, or do you want to exit the eurozone? that would be the question. >> a very big question is. thank you for joining as. meanwhile, finance ministers have been holding talks in brussels. no surprise, greece is at the top of the agenda there. >> the trouble is, no one knows what would be the fallout if greece decided to leave and the stakes are high. >> some say a departure by
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greece would mean the end of the single currency. >> european finance ministers have been sticking to a hard- line approach, saying greece must stick to the term of the bailout, or the money will stop flowing. >> greece must toe the line. >> it is not now a question of how generous we should be towards greece. it is simply a case of what makes economic sense, and what is plausible. >> many colleagues agree. greece must make the cuts or do without the money. regardless of who was in power. >> we did not agree to a deal with the government. we agreed to a deal with greece as a country. if the country needs financial aid from outside, it has to
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fulfil the conditions. >> the alternative would be for greece to leave the eurozone. that option is no longer taboo, but it would have far-reaching consequences. >> it would only be possible if greece left the european union, which would include leading the eurozone. greece would have to agree to new membership talks and look more closely than last time. >> for the eurozone finance ministers, one thing is clear. greece has exhausted its favors keeping its european partners are no longer willing to compromise. >> let's go straight over to brussels. our correspondent has been watching those talks. nina, there is still no clarity as to whether there will be new alexian's in greece. if this is beginning to look like -- new elections in greece. this is beginning to look like the most dangerous phase so far? >> it definitely could be the
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defining moment for greece. it is a dangerous moment. it is something european officials have been making clear in brussels. it is your decision now. we want to keep you in the eurozone. you have to stick to your commitment. we feel they are sending out a brutal messages into athens by saying, indeed, we are trying to help you as much as we can. we have done what we could the past year. now it is all about regaining capability. for the euro as a currency as well. you are welcome to stay, but you have to pay your share as well. >> as you say, that is a hard message coming from eurozone finance ministers. where has the fear of contagion gone? if greece leaves, is there no fear that spain and italy will get dragged down? where is that fear? >> the finance minister is one of those saying the eurozone is
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stronger than it was two years ago. you can clearly see that european officials have introduced mechanisms like the fiscal compact, which are on mechanisms trying to get more transparency and the euro system to work and a better way to prevent such crises from happening. and of course, everybody here is sending a message that greece is an isolated case. spain has problems, but not the same infrastructure problems. reforms are under way. they are promising. greece is in an isolated position. people are sending out the message "we could do without you." >> thank you very much, from brussels. >> the u.n. has imposed new sanctions on syria and has warned there will be new action if the government fails to adhere to the cease-fire. videos posted on the internet show a heavy shelling in several
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cities including homs. despite the presence of united nations observers to broker the cease-fire. >> the iaea will be meeting with iran on tuesday. they will press for access to facilities built for high explosives tests. there is concern that those locations are being used to develop nuclear weapons. they will demand more access to people, documents, and information deemed pertinent to iran's weapons program. that meeting comes ahead of the meeting of six world powers. >> now wants to business. the rough ride for spanish banks continued this morning. shares sold off as the week's trading kicked off. >> investors are concerned the troubles for spain fell banks
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will continue, despite the reforms passed by the government on friday. >> investors remain concerned that the worst is still yet to come, including the potential for commercial nationalizations, like we saw last week with one of spain's most troubled banks. >> boehner's -- spain's bank share has been nationalized only recently. it has 12 million customers, but also a lot of bad credit on its books. the bank gives its customers money and has some money. normally uses its own capital to loan money to business clients, earning interest in the process. at the client cannot pay back the loan, the bank has to cover the loss with its capital reserves. if they are not enough, the bank has to be bailed out or it faces bankruptcy. at the moment, european banks have to set aside 2% of their
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core capital for crisis situations. this amount will now go up to 7%. >> the idea behind the increase in capital reserves is that banks will be able to bail themselves out when they have bad credit. we don't want to see situations anymore, as we did in ireland, where commercial banks go to the government and ask for their losses to be covered by taxpayers. >> this means the bank will have to require more capital assets to it meant the same amount of money. this will not be easy for banks already having trouble keeping this means they will probably have to lend less money. >> this means that it will be harder for businesses to borrow money. and they will probably have to pay more for loans. that means they might hold back
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on making investments they might have been planning. >> policymakers calculate that banks in europe will need hundreds of billions in additional funds to meet the reserve requirements. experts believe banks in germany already have enough reserves. so, the new rules should have little effect here. >> it will be a lot for the markets to digested a. our correspondent sent this report from frankfurt. -- it will be a lot for the markets to digest today. >> the european debt crisis is the biggest issue again on the frankfurt floor. political negotiations lead to chaos as investors are feeling it affect the markets sharply. but investors were also focused on spain. there has been an auction of new spanish bonds issued the spanish government has to pay far higher yields than expected to get fresh money. this'll weighed heavily -- this
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all weighed heavily on the share markets. the europa fell to the lowest level for a month. -- the euro fell to the lowest level for a month. >> let's look at germany's blue- chip dax. we can see their. we have the wrong numbers up. there we go. crossing the atlantic, back to the dow jones, we see is currently down 0.9%. the road doing pretty well. >> the u.s. computer giant apple is reportedly looking to acquire the german high-end tv maker lukas podolski-- loewe. apple has been looking for a way to enter the tv market for awhile now. the stock shot up 22% in monday's trading. >> we will be back in a minute's
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time for the meeting in angela merkel is having tomorrow. >> stay with us.
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>> welcome back. here and in germany, angela merkel's conservatives are reflecting on sunday's election defeat. >> the cdu party sank to 20.6% in north rhine-westphalia. >> the big winners were the social democrats. >> they hope it is a preview of national polls next year when they want to reject angela merkel from berlin. >> the chancellor received a big hand when she paid a visit to berlin's europa school. the students wanted to talk about opportunities for higher
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education and right wing extremism. they did not see much interested in germany's rapidly changing political landscape. but chancellor merkel is facing opposition to austerity. at the same time, the opposition social democrats have the wind at their back. the chancellor admits a change in course might be necessary. >> it is a matter of working with the spd and finding broad agreement on the spending plan. i will be speaking with the opposition parties. >> coming off a landslide victory, north rhine- westphalia's leader says that programs will not be cut at the expense of education and youth programs. >> we are looking at the whole
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picture and the best method of working together in north rhine- westphalia, all of germany, and in your. we want to build solid alliances with the greens. >> the business-friendly fdp was touting its resurgence, too, proved they say of their economic policies. >> we're in a good position for the 2013 elections and the continuation of our coalition. >> france's new socialist president visits berlin on tuesday for talks on the debt crisis. he also wants to ease up on the austerity as the chancellor appears ever more isolated. >> let's bring in our political correspondent. put this into context for us. how big a setback is this for angela merkel and her government? is it a preview for next year's federal elections?
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but i think it is a personal disappointment for angela merkel -- >> i think it is a personal disappointment for angela merkel. norbert röttgen was her protegee and a possible successor. this comes hard on the heels of two other victories in regional elections. they hope they can oust angela merkel next year. >> the rate of growth has been an issue in your. is there any chance we could see merkel switching her policies to be more growth- oriented? >> not as a result of this. this was a regional election and a contest of personalities. on one hand, the popular, down to earth incumbent state premier. she did not mention the your crisis at all as far as i know
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in her election -- the euro crisis at all as far as in her election campaign. and the candidate who was seen as being very arrogant, very distant from the voters. opinion polls in germany only last week showed that two-thirds of german voters support angela merkel's austerity measures. that is crossed party support, including for example voters of the green party and even people who support the protest pirate party. there's discussion in this country of increasing some kind of stimulus package, but not at the cost of increasing state debt. most germans are opposed to that. >> alright. thank you very much. richard alluded to before the break. angela merkel could have another
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tricky day ever on tuesday when france from the president comes to visit. >> francois hollande based a lot of this platform on switching from austerity to growth, an implicit rejection of merkel's process. >> she was so unimpressed, she waded into the french election to endorse the man that he beat, nicolas sarkozy. >> the new french president is a committed socialist, described by those who know him as down- to-earth and somber. born in 1954, the same year as this woman, a german chancellor angela merkel. she has been at the forefront of efforts to find a solution to the debt crisis. her recipe -- austerity, austerity, and more austerity. she found a strong ally in french president nicolas sarkozy.
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sarkozy had a reputation of impetuous, different from merkel, but they have a strong bond. on a personal level, hollande and merkel seem more like each other, but policy is a different matter. >> today, people are looking to us. they are demanding an end to the draconian austerity policies. >> hollande can paint on about to end -- campaigned on a pledge to end austerity programs. >> germany will welcome him with open arms and we will find ways to work together. we said that throughout the election campaign. wait and see. it is never easy to find consensus in europe. in the end, we have always
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achieved a. >> but hollande's win is significant for german domestic politics. several still backed hollande and the spd are hoping for a resurgence of tom. >> i'm sure the chancellor will back hollande. i am sure they will. public debt is growing, not easing. >> they will have to find common ground as campaign rhetoric gives way to harsh reality. >> of former member of the bader meinhoff gang has made a statement. >> she denied any involvement in the 1977 attack and said she did
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not fire the bullet. >> that has left some victims frustrated and there are fears the murders will never be solved. >> former members of germany's infamous terrorist group the red army faction. after keeping silent for decades, heard testimony was awaited with great anticipation. but in her statement, she denied any involvement in the murder. she told the court she was in the middle east on the day of the attack. the son of the murder prosecutor was disappointed. -- the murder prosecutor was disappointed. >> i know nothing more about the incident. she should know the identities of the other people on the motorcycle. >> in april of 1977, he was shot in a red army faction attacked. six weeks later, police apprehended her.
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becker see it a life sentence for the -- received a life sentence for the shootout with police. years later, they discovered what they believe to be dna on a letter claiming responsibility. hence the current trial. her lawyer says she will not take the stand again. >> not to change days -- the city of manchester has another elite title to brag about. they won the english first division for the first time since 1968. there were riots in the streets as the team paraded the trophy. here and in germany, berlin has ne last chance to cling on to their first division status. >> last thursday, berlin lost 2- 1 at home.
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that leaves the mountains to climb. there is little hope for optimism. >> peering over the abyss. even the more -- even the most die-hard supporters doubt that they will be in the top flight next season. fans are increasingly nervous as the big game approaches. >> it will be tough in duesseldorf. there's a chance. we have not lost yet. >> there is a chance, but we have to make the best of it. >> they must win in duesseldorf and scored two by doing so. >> first division means more interest in more sans. -- fans. we never give up. >> and the hope is they will not
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repeat the defensive mistakes. >> we must concentrate from the first second on. that is most important. >> but there are other problems as well. they will have to improve dramatically to achieve a miracle and remain in the first division. >> a miracle, and not sure is going to happen. >> if you want to be up-to-date with the latest, check our web site -- we have multimedia, a lot more stories. check out. -- check it out.
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