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tv   Journal  PBS  June 21, 2011 6:00pm-6:30pm PDT

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>> you are watching "the journal." >> i have the business news, welcome. >> everything on the line, greek protests in the parliament ahead of the vote that could make or break the euro zone. a plane crash in russia it takes 84 lives. germany and poland mark 20 years of operation.
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greece is the word of this two. never before has the vote of the parliament in athens been so crucial for the stability of the bureau's own. the prime minister and his government faced a vote of confidence within hours. with parliament was drawn support from the government, greece could default, a nightmare scenario for the of the countries that share the euro. >> outside of the parliament, the opposition is in the majority. thousands have come to protest against the austerity measures that the union is demanding from their government. the people here would like to see the prime minister lose the imminent vote of confidence. >> the prime minster and his prime minister want to get agreements for their austerity program but there just
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exploiting our payments for the gain of others. does the prime minister and his government want to get agreements for their austerity measure. -- the prime minister and his government want to get agreements for their austerity measures. >> the greek finance minister appealed for support. he said there was no alternative to the planned measures and even the opposition should not reject them. the decision the greek parliament has to make is of critical importance, not just for greece itself, but for the whole of europe. if the government loses the vote of confidence, it will mean the end of the austerity program and greece will certainly become the first state in europe to go bankrupt. >> we are prepared to support greece if greece is prepared to follow the terms of the agreement we negotiated with the government. >> all eyes are on athens as the people of greece and beyond watched events unfold.
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what the world is watching. we're joined on the line by brian williams who was following of sense for us and athens. >> good evening. >> we have seen these protests before. can they make a difference just before this vote of confidence? >> i think the aim is to keep the pressure on all the politicians. these protests have been going on nonstop for more than two weeks. the figures that are given is 20,000 protesters. that is actually misleading. a tens of thousands more people have tried to get to the square and they have been kept out of by a ring of steel that the police have put in the parliament. >> he is about to speak. do you think he's going to say the necessary words and get a yes vote in this vote of confidence. >> i think he has a majority of
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five seats. we have heard nothing in these hours of any defections. i think he will definitely get the vote of confidence. the big test and in many ways, these protests are a dress rehearsal, will come next week when parliament votes on the actual austerity measures. that is when you could get politicians deciding to. i don't want my finger on a bill that will impose more burden on the greek people. i will the fact and i will not vote for them. >> more crucial votes ahead in greece. >> the greeks are not alone in their anger over budget tightening. across europe, there are protests against austerity plans. and lot simpler, more than 8000 trade union members to the streets on tuesday. they came from numerous countries to demonstrate
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against budget cutbacks at the european union level.they say cd public pensions are not the way to go. they want politicians to focus more on creating jobs. russia's deputy prime minister says that pilot error probably caused monday night's plane crash that killed 44 people in the country's northwest. the plane was attempting to land at an airport despite poor visibility. it crashed and burst into flames on a nearby motorway. the plane had come from moscow. 8 people survived, most serious injuries. >> this was the scene hours after the crash. the aircraft came down on a highway near a small village narrowly missing a house. of the 52 people on board, only 8 made it out alive. >> we saw a man on fire and i
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immediately went to him and tried to put out the fire with my jacket. then we took him away from the wreckage. >> the plain was trying to land at the airport in heavy fog but missed the runway. it clipped the treetops and took out a power line before catching fire. aviation officials are not sure what caused the crash. >> the investigators are checking several possibilities in killing a human factors such as an error by the pilot or the ground service. whether it was caused by web dodge bad weather conditions are technical malfunction or in the airplane's equipment. -- whether it was caused by bad weather conditions or technical malfunction. >> the prime minister swapped his for an executive jet citing floss in the poor safety record.
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>> germany says their joint efforts to bring libyan leader muammar gaddafi to justice. prosecutors have watched invest -- launched investigations and collected statements from witnesses now living in germany. the conclusions will be handed over to the international criminal court in the hague. they are considering issuing an arrest warrant against gaddafi for crimes against humanity. he is accused of ordering his troops to fire on unarmed protesters. it is another five-year term for bond human. the general assembly has just reelected him and the post. they praised him for his loyalty, discretion, and conscience over the past five years. his next term begins in january and will run through 2016. ban has pledged to make climate changes priority.
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>> now we go to greece and the debt problems. >> there are two sides. they are rejecting their austerity measures. they are facing today% less income. this was presented by -- which run public opinion polls. countries to share the euro are holding their breath and hope for further budget cuts to help to boost these bailout funds. >> greece has been struggling to implement cost-cutting measures over the past year but to little effect. they have a dismal record on tax collection. state property should have been sold off but it has not happened. in second round of austerity measures as necessary. the government would like to cut spending by 28 billion euros over the next three years. 50 billion will cut from tax
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hikes. the study measures will total 78 billion euros. this is with the budget cuts will fall. there will be reductions to state salaries and pensions. athens will increase the value added tax to 23%. greece would like to cut defense spending. the opinion and international monetary fund insists that the greeks will carry out the funds to receive additional assistance but many contend that the austerity measures go too far and womenfolk further unrest. concern about the stability of the stability is growing. -- many contend that the austerity measures go too far and will cause further unrest. they're urging politicians to show their solidarity to keep the eurozone in tact. >> german and french newspapers ran all page advertisements
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making the case for saving the common currency. "the euro is necessary," reads this headline. there was advertised as from deutsche bank and deutsche telekom. >> we have invested 120 billion euros in european state bonds. 60% of our portfolio is invested in european companies. we have a strong presence in the eurozone. we are firm supporters of the euro and wanted to be strong. >> the return to stable financial conditions will cause many billions of euros but our common currency is worth the effort. this is an appeal for it either leaders to help countries like greece with billions of dollars. first, politicians want to see
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greece implement more austerity measures and they want private sector lenders to help to shoulder the burden. major corporations feel they clearly benefit from the euro but there is no suggestion in the text that these companies want to help pay the cost of a rescue. >> to be set taking their toll on german investor confidence. -- these are taking their toll on german investor confidence. this is at the lowest level since january of 2009. the index has been sliding in recent months in a deepening concern about the debt crisis. analysts surveyed fear that the eurozone economy could cool in the coming months. they expect this will weigh on german economy. let's take a closer look at some market numbers. we go first to frankfurt where the dax closed awkward at 7285.
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in new york, the dow jones industrials are in an upward trend to 12,190. the euro is trading at $1.44. the french air show is in full flight. the opening day saw orders for more than 200 aircraft with a total value exceeding 15 billion euros. clearly, airlines are eating -- eager to invest but they're also looking for a few efficiency improvements. >> 12,000 photocells powers this plain. no fossil fuels are used. there is a long way before it can be commercially viable. airlines would like more efficient planes and many factories are taking notice. >> 80% of the money to invest in
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technology for airbus or eurocopter goes towards making them more efficient and reducing noise levels. we want to cope with the environmental impact of the planes. >> to make the aircraft more efficient, they will use this new engine for the revamped jet. it burned 15% less fuel tanks to the low pressure turbine. >> first, we have saving in fuel consumption because the low pressure turbine is very efficient. we have an advantage because this has three stages instead of the usual seven. >> those are exactly the efficiencies people want to see it because jet fuel accounts for over 30% of their overall costs.
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>> to tell us about some friends and neighbors. >> we have some friends. it has been two decades since germany pledged to forge a new friendship with their eastern neighbor of poland. on tuesday, they marked 20 years of cooperation by holding a joint cabinet meeting. >> at the government's pledged 90 mutual projects in such fields as education, research, energy. the cabinet meeting serve as a reminder as a treaty of good neighbor ship and operation signed 20 years ago. it marked the new start in the often difficult relations between germany and poland. >> this is the treaty that really allow us to change relations with poland and germany for the better. despite the dramatic and sometimes tragic events.
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>> a model for europe as a whole. merkel assured her colleague that ties would remain strong as poland prepares to take on the rotating eu presidency and faces many challenges of the euro crisis. >> at germany's soccer association has renewed the contract of the hugely successful coach of the german women's squad. the announcement comes days before defending champions germany open the women's world cup right here in berlin. >> it is official, the coach will stay on until 2016. this is a clear vote of confidence in her leadership. >> this is a sign that the german soccer federation appreciate my work and that makes me really happy. >> the news comes as the head of the quest for a third straight world cup title.
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after convincing performances in one of matches, the team is looking forward to the opening against canada on sunday. >> i think it will be a really exciting tournament. i think that the quality of play will be very high. we're looking forward to the first game in berlin and everyone knows it is really important to start the tournament well. >> 7 of the teams' regulars are guaranteed a place in the starting lineup and the rest of the squad is eagerly awaiting a call to take on canada. >> june 21st is the longest day of the year. even when the sky is overcast, the summer solstice, there is a reason to celebrate, especially as stonehenge in southern england. thousands of druids braked the cold weather to mark midsummer day at the prehistoric site.
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the event is a modern twist on solstice celebrations that where a high part of the pre christian calendar. stay with us, we'll be right back with our in-depth report. don't go away.
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>> the vote of confidence for greek -- for the greek government is also a vote for the stability of the euros own. some say that of greece defaults, it could be the end of the common currency. how do we get here? it was a decade ago that europeans began using the euro. we now know that greece lied in order to join the club. athens had a much bigger budget deficit. they fudge the numbers and it appears that other countries just looked the other way, germany included. we began with a look at the origins of the greek debt crisis which has become an existential test for the euro.
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>> rewind 10 years and athens appeared safe from the financial storm it is caught in. greece was included in the club of euros own countries. the eu had taken the economic statistics at face value. a case of political will overcoming any serious misgivings. in the air of the years of the euro, the greek economy boomed, or so it seemed. in 2000 four, on bell's one often brussels. -- in 2004, alarm bells went off in brussels. five years passed before anyone to the deficit seriously. in 2006, the sovereign or government debt was 1 1/6% of gdp. at that rose to 1 1/6% in 2010. rules limit total government debt to 60%.
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greece is deep in recession with little industrial output. agriculture and tourism are the only sectors a promise revenue. the public sector is inefficient and outdated. the test election system is hopelessly dysfunctional. -- the tax collection system is hopelessly dysfunctional. greece was downgraded in 2009. the rating agencies were skeptical about athens ability to pay its debts. it is become more expensive for the government to borrow money to stay afloat. last year, the eu agreed to bail out greece for the first time. the default was averted with 110 billion euro aid package from the euro and the imf. it was seen by too harsh with its conditions. there have been mass strikes and protests against the austerity program. now, the prime minister is grappling for support for
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another round of austerity measures and desperately needs cross parliamentary support. >> let us understand that we are responsible for the future of the country. it is up to us to change the situation and we are already changing the situation. that is our commitment. >> the finance ministers have clearly told greece they will not be receiving any money unless it makes further cuts and cells of state assets. without more flooding, greece will not be able to avoid default. >> now we know how the politicians got it wrong. now they are frantically tried to fix the problem by asking the greek public to swallow tax hikes, if you were social benefits. how much would the people take? 80% say they are unwilling to make any more sacrifices, especially young people.
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nearly half of all people in greece under the age of 35 cannot find a job. the prospects looked set to get worse. >> this life has not turned out the way she up. she is 28 and she has been unemployed for three years and she gets no financial support from the state. every morning, the sociology graduate looks for jobs. she cannot even find secretarial work. >> i have started hiding some of my skills might apply for jobs so that i don't get labeled as overqualified. i hope that will increase my chances but it is difficult to take. it is hard to keep thinking positively. >> later, she visits her friend, this is a retreat. with no income on home, --
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seldom goes out. she has a degree in physics but now she works the to an hour shifts at a snack bar. she earns 600 euros of month, barely enough to make ends meet in greece. similar struggles. >> the economic situation has gone drastically worse for our generation in the past three or four years. we gave up hope of finding a job in our chosen profession a long time ago. >> those who are still struggling plan to leave greece after graduation. >> almost everyone moves abroad when they complete their studies. they usually find something and another country. those who stay at a difficult time of it. >> they have little hope that
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things will improve any time soon. they say the popular protests are not likely to make much of a difference. >> our country will take a long time to change if at all. we say one swallow does not make this summer. it will take a long haul and we will have to be patient. we younger people have to fight to change the mind-set here. we need systemic changes. >> of the two young women dream of starting a family one day but economically, they are unlikely to be in a position to do so anytime soon. >> and not to talk about here. i'm joined by an economist here at the john f. kennedy institute. -- a lot to talk about here. can you understand the frustrations about these young greeks when they say their future would be better if greece
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was not in the year eurozone? >> absolutely. unfortunately, they find themself with no local them. if they leave the euro and become competitive, they will find that the debt that they have become so expensive. -- they find themselves in a tight place. the chance of growing out of this in the next generation is next to zero. >> they really intertwined with the future of europe and bthe vote of confidence. this is more about the future of europe? >> the stakes could be larger -- could not be larger. there are countries in a similar situation so that whenever a president is said and whatever mistakes are made will lead to speculation. you also have the financial stability of europe at stake. this is very dramatic history. >> can greece afford to stay
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note to the demands of the imf -- no to the demands of the imf? >> bankruptcy is the start of the negotiation. even if they say no, there will be negotiations come along after that. >> how much of a chance to you think that greece has of holding the plan the way that the prime minister would like to see it done? >> can they do it and will it help them? managing expectations is really important but it must be cuts down the road, structural changes in pension systems and the like that don't cut right now and really hurts demand for jobs. even if they do it, this will be very hard to pay back. >> they should be able to do it? >> politically, they can do it but i don't know if i would advise them to. >> thank you very much for talking to us. that has been our in-depth report on the situation in
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greece. as always, thank you for watching and thank you for the company, everyone.
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hi, i'm janice edwards, inviting you to join us for bay area vista. as you probably know, bay area vista is your show. we're talking about your community, talking about what's important to all of us, here in the bay area. i always thank you for the great job that you do in our bay area. so, that's what tuesdays at 6:30(pm), here on kcsm, are all about. please join us then.
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