tv Business - News Deutsche Welle June 11, 2018 1:15pm-1:31pm CEST
the joy first ferrari team as they took back the overall date and that trace is in france in two weeks. in situ up to date i'll have more for you at the top of the hour coming up very shortly i guess elvis with your business update speaking to you got a safari fokus the floor a greek finance minister about to greek debt i would object. i'm not proud of and they will not succeed in dividing us so i don't not succeed in taking the people off the streets because we're tired of the stick trying to shift . taking the stand global news that matters d w made from minds. its own living village of pretty. sure link to use from africa and the world. your link to exceptional
stories and discussions can you and will come to the news after killing program tonight from phone in germany from the news of these events and i would say d w it comes to africa join us on facebook d w africa. for some he will remain the public face of a quarter of a role in euro's of greek government debts as he heroically faced off each technocrats and the establishment to free the greek people from the crushing burden of debt for a farkas told to do w. about how repaying debt can be optional and why germany should not bother to rescue the euro should have been necessary. and as the g. seven summit failed to ease trade off is the white house press. sitting up there
and the e.u. rhetoric but is the us really being treated unfairly. i'm going out of as welcome to d.w. business the euro edged up higher on monday as traders look to the european central bank's policy meeting on thursday the e.c.b. is expected to discuss when and how it will would wind up its bond purchases and eventually lift interest rates from current extremely low levels both the bond buying program and the low rate stem from the beginning of the eurozone banking and debt crisis in two thousand and ten that's eight years ago now but debt levels in europe remain at historic highs the eurozone average debt is hovering at around eighty seven percent but italy for example the third largest economy in the euro zone is sitting on a mountain of over one hundred thirty percent of the country's annual economic output and europe's most famous debt or the recent still carries around a debt burden of well over one hundred seventy percent of its g.d.p.
well since twenty ten greece has received loans from the e.c.b. the e.u. and the i.m.f. worth two hundred fifty six billion euros will it ever be paid back in full and should it i'm now joined by a man who in the minds of many rightly or wrongly is the face of that huge pile of debt for others he's a hero standing up against the establishment yanis varoufakis is the greek finance minister was the greek finance minister for six very turbulent months in twenty fifteen and joins us now from munich thank you very much mr fox's welcome to our program my first question will greece ever pay back their quarter of a trillion euros and should it. when you go bankrupt there's no way you can escape your bankruptcy and repay your loans on the basis of more loans that come with strings attached trink your capacity to do to make an income so it's not a question of morality it's not a question a question whether you should know you shouldn't let us not forget that the only
reason why capitalism grew wings and flew up and soared into the skies of the nineteenth century was because reintroduce the con the very interesting concept of limited liability in other words that bankrupt companies bankrupt and that these should be allowed to do to go bankrupt this is part of the capitalist process of renewal do you know why didn't go why didn't raise them go about just go bankrupt back then. it wasn't allowed to back in two thousand and ten for a very simple reason the french and the german banks where already bankrupt and they had just received that gigantic bailout from the german taxpayers and mrs merkel was not prepared to give them another bailout so in a sense she gave a bailout of the good state that money went to the good treasury and immediately back to the german to the french banks so effectively what would be doing in you know for the last eight years is wouldn't we have been concealing fraudulently as a serial bankruptcy and the result of this is of course today italy and the
realisation that we can keep kicking the can down the road but at some point is going to turn back and bite us kicking the can down the road that neither you mention that your current immunity your give you lecture the the e for instance you tonight it's title why germany cannot and should not pay to save the euro zone you say the german just shouldn't bother risking the euro why. you know i'm not saying that at all i'm saying that germany cannot afford to pay for the eurozone but what germany has a duty to do to itself as well does to europe is to help but he designed the architecture of the euro so that the german treasury does not have to pay for it let me give you a very simple example as we speak up to three trillion euros is sitting idly in bank accounts of the continent not being invested in productive activity so it is not a question of whether germany should pay it's
a question of whether we as europeans together and he designed the rules of the eurozone game in such a way as to enable money which is already there savings that have not been invested excess savings to be invested in order to produce think i'm struggling europe that will pay for that recovery which we need in order to be able to avoid situations like with that which we have now we need really well human to human to these these savings. to see that from a german perspective many much of this savings are german savings and the view from germany is we've given so much money to the greek they don't pay as back why because that the germans should not have given the money to the greeks in the first place i made my survey of popular in greece for the last ten years saying that we should never have received of money in the first place and then after we went bankrupt we had absolutely no right to take more money because no bankruptcy can be overcome by more loans but mike. my message to my german friends is that at the
moment given the way we have organized the euro zone you are making huge surpluses both caught in the concept as the federal government has a surplus german corporations have a surplus and german households have a surplus and what do you do with the surplus because there's no way you can invest in your own country that is not enough demand for the money that you have accumulated to this country you are forced to take your hard earned euros and invest them with what in us to invest them in countries where you cannot control the way that they're being managed now compare that system with which we have now which is grossly inefficient and makes germany pay through the nose not only bailouts but also through the inefficient investment of private savings compare this with an alternative system where when you're in europe the savings of the germans or the dutch even of the greeks and the diamonds are channeled into productive investment let's say for instance green technologies and the green energy union that is so essential to europe not only for economic reasons it would
produce very good quality jobs it will help the environment and it would also allow us to free ourselves from vladimir putin and gazprom. all sounds very very very simple but if that does not happen and i doubt it will do you think the eurozone is about to collapse what if that doesn't happen i think that the control disintegration of the eurozone even though it would be very painful and very difficult is the only alternative to the constant stagnation that we've had we have and the constant political crisis that the you are ready that he was on collapse back in twenty ten one year. mean twenty then you didn't know mean twenty then in two i was a minister in two thousand and twenty fifteen it doesn't fifteen look i am a committed you to be honest my every speech i gave was all about what we need to do in order to save the eurozone and save the european union but at the same time i
was saying we are not going to save the euro zone and save the european union if we keep extending the greek debt crisis into the future by means of more loans from the german and the slovak in the portuguese taxpayers that are given to any bank of the state on conditions again i think that the greeks that will not repay them i was x. three of them because i could see that what europe was imposing upon greece was not just bad for greece but it was also bad for europe and the result is a very now being that migration minister in italy speaking about greece you famously said that greece was fiscally water boarded by its creditors and compared the euro zone to hotel california that you can take in any time you like but you can never leave well the greens hasn't left the euro zone greek economy in the last quarter grew by two point two percent that's a fifth consecutive quarter of growth inside the eurozone could it be that you were wrong about that. i sincerely hope and pray that i'm wrong but
i very much fear them right if you look. very good by the way the growth rates sit for three years now and the all the reports of growth it took six months before before the fizzled out allow me to say that our income has crashed since two thousand and then it blood towards that on two thousand and fifteen two thousand and sixteen and there is no appreciable growth whatsoever except for some growth when it comes to tourism but it couldn't be otherwise think about that increase of the moment we have bankrupt companies and we have bank of banks and backroom households and everybody's trying to pretend that they're not bank of by borrowing money and you have a state which is imposing twenty nine percent corporate tax rate and the worst part of it is that we are imposing upon even small businesses to prepay next year's tax this year one hundred percent of it when in bulgaria next door to us the tax rate is ten percent there's no prepayment of next year's taxes this year this
economy in the greek economy is in a state of this investigation and all the celebration of recovery is just adding insult to injury we're losing fifty thousand young people every day every month human capital is being depleted and greece is becoming a kind of course of all that is a protector of the european union that doesn't have anything really to show in terms of jane growth and genyen prospects except beautiful beaches fantastic weather and very nice people. you talk about your country there baby being on the cob still on the cusp of of bankruptcy you feel founded another political movement which is not a political party really are you tempted to go back into politics and and make a change in greece. we have done that the movement that you mentioned is that the d.m. twenty five with the democracy of movement we set it up in two thousand and sixteen in berlin the folks been
a theatre and since then we have spread throughout europe and we're now creating what we call elected a wings political parties back in march that movement spawned the greek part of the it's called mad at twenty five man i mean stay greek and we are going to be running the european parliament elections and the national elections i never left politics i left the ministries because i was not prepared to sign on the dotted line of yet another loan agreement that i'm going to. have to leave it here our time is running out thank you very much. thank you. and that's all we have time for an update in the next hour thank you very much for watching.
because my dear than the summer talk with iranian. woman my. precious liberation exile home. these are some of the most marked in her life. sixteen of. the school exercise book filled with stories of war atrocities written by brave people who want justice a flicker. in the now this picture was taken in belonging and. the photo was shot to prove what's going on in the central african republic. it's in an exercise
alongside many other photos of people who were abused raped of women and girls who gave birth to one wanted children out of them in addition a full. winning documentary starts june fourteenth on t.w. . welcome to the special edition of pop export d.j.'s like felix again aleph oben and paul fun dyke regularly topped the international charts and headlined dance festival lineups around the world we accompany the three men at their international gigs superstar d.j.'s made in germany.