hello, welcome to the of "journal." watch the greater euro zone integration for, and bonds. >> markets are rattle the midst signs of a shark -- sharp slowdown in the german economy. what's one of germany's top windsurfers sets a daring new record. nicolas sarkozy and angela merkel have bound to give the euro zone a true economic government. speaking after talks in paris, the leaders said that they would impose a tax on financial transactions, seeking to impose a governing body headed by the european union. they insisted that the existing blocks, the bailout fund is
sufficient. >> president sarkozy said that he and change it -- chancellor merkel would commit to a balanced finances, and that they should write a goal in to their constitutions. under pressure to produce redoubt -- results because of recent market turbulence, they are under pressure to produce commitment to the common market currency. >> we have decided to work on strengthening the euro as our common currency. germany and france are committed to this end. it is obvious that the european union must integrate financial and economic policy making. >> they called for a limit on euro zone nation debt. to be chaired by the european council president.
>> we hope that the 17 member states of the euro zone will commit to blighting balanced budgeting in to their constitutions by the summer of 2012. >> they both spoke out against the euro-bombs, speaking for a tax for financial transactions. >> is it conceivable that all of the 17 nations in the euro zone would agree to these types of proposals? are they enough to address the debt crisis? our correspondent has been covering the paris talks for us. >> it is conceivable that the other members could agree to those proposals. not only was that like this in the past, with france and germany coming up with an idea, but also, i think, all of the
measures and proposals that were made, they were already within discussion. so it is not completely out of the blue. presenting ideas that already exist. working within the economic government, where they found a way that was institutional, that is rather something that everyone can agree on. the same would be for the proposals on financial transactions. >> what they are saying needs to be done to prevent euro zone countries from amassing more debt? >> all of the 17 euros on countries shall commit to a hyper balanced budget. not only the european commission, but also the countries themselves, riding
their commitment in the constitution. this would create more credibility for the market. >> does this mean that we will see more in -- economic think it -- economic integration in europe? let's not only was it a huge commitment for the germans to agree on, which they were not in favor for some months ago, but france and germany said that they worked closely together and that in the future they would consult each other when they planned their budget. when they had regular meetings. i guess that already gives a sign. i think that the track is set for more integration. >> thank you.
also coming out of paris today, a resounding no to eurobonds. >> the idea was dismissed a proposal that has been hotly discussed in the media. many are disappointed that the two leaders did not back the suggestion. issuing eurobonds was not a solution for today, according to leaders. saying that it would put the stronger economies in great danger and would only be possible at the end of the process of integration. the leaders have agreed on a tax on financial transactions. finance ministers have proposed a plan for september. this is not the first time that germany and france have pushed for the tax, but until now they have never managed to get other manager -- other members to back up the idea.
>> anyone purchasing goods and in a bakery is paying a sales tax already. the tax on financial transactions follows a similar principle. under the proposal, anyone buying or selling shares on the stock market would pay it. curbing speculative training by making it more expensive, boosting tax revenue for the states concerned. people have been attacked -- talking about these taxes for years. germany and france say that they want to press ahead with introduction. >> just as the chancellor was headed to paris on tuesday morning, disappointing economic data was released in germany. wider repercussions are implicated for the euro zone.
0.1% is well below expectations. the announcement letter -- led to an immediate fall in global stocks and the euro. >> even huge discounts are not attempting many people in germany to stretch out right now. one reason that consumers are holding back is the worry over rising energy prices in the future of the single currency. a big engine of growth has been suffering lately. the german economy has been hit as the man's continue to come in over the accept -- excess market. >> other countries have slowed down, which is normal after the strong global growth we have seen. >> in germany, the biggest economy in the rose on, it has
shrunk to less than 1% of the gdp. france is stagnating. some of the biggest power houses are not delivering right now. second quarter growth has been reported as a 0.2%. analysts may be reporting a positive spin on the figure. but it will do little to boost optimism about the debt crisis in the euro zone. >> markets reacted swiftly to what was considered to be disappointed economic data. this report was on the day's trading session. what's this news about relatively weak economic growth in the second quarter was bad news. given the recent crash on the stock market and the market disruptions that have not even have been yet, the people yet are now bracing for more
negative news to come about consumer sentiments and business activities. a bit of relief on the money markets, though. european countries, including greece and spain, successfully sold new treasury bills to investors. >> let's take a closer look at the market numbers right now. closing the day's session in negative territory, closing almost flat at 23-23 across the atlantic. the dow jones industrials moving into the closing of 11,405. the arrow is trading for one u.s. dollar. more news with brian. >> hundreds of israeli protesters scuffled with police outside the parliament today as
legislators inside held a special debate on the cost of living protests sweeping the nation. called during the summer recess. >> and do more for social justice is the chant. the demonstrators were feeling encouraged. they manage to get parliament to interrupt its summer break. but it was only a partial success. inside there was little sense of urgency. hardly any representatives showed up. the opposition criticize the administration for relying on a commission of experts to propose reforms. what they must provide a vision. the nation's elected representative was not elected by commission. >> in the end, lawmakers that
were present simply decided to debate the issue in future sessions. the disappointment downtown was palpable. >> some people are meeting and i want to discuss, but they continue to do the same politics. >> i would be happy if they came by and spend time here to see what it is like. >> chief among its their grievances are the soaring rents, high health-care costs, and taxes. for the moment, protests are set to continue. >> residents say that our meat that -- army tanks are firing of burning buildings, cleared on the internet, witnesses say that the army in syria is attacking them for a fourth day in a row.
they said the protests continued despite violent crackdowns. the yemeni president says that he will soon return home from saudi arabia. he addressed the nation on state television, saying that soon they would be seeing people from the state capital. the attempt on the president's life came in june and followed months of massive protests against his 33 years in power. elections were set for 2013. qantas is having a bit of a bumpy ride as it sets a new corporate order. >> 110800320 aircraft. super-jumbo and other long-haul
aircraft, announcing job cuts. they want to focus more on asia. >> qantas is currently making big losses high. the chief executive said that major steps are needed. >> this is a historic opportunity. creating a platform for future business. >> they also said that they are setting up a new premium airline based in asia. the changes will come at a cost. up to 1000 jobs could go in australia. what's making a giant oil discovery in the north sea, it may be one of the 10 largest
ever finds on the continental shelf. >> under the floor of the north sea, much larger than previously thought, these are connected. 67% government owned, this is likely to be the biggest oil discovery since the mid-1980's. the world's largest oil reserves lies in the saudi arabian desert. about one-quarter of all global reserves. until now, norway had 29 billion barrels. forecasting 1.4 billion barrels, germany's reserve is only 3 billion barrels. >> analysts say that the new fines could be worth about 30 billion euros at current prices. >> sports? >> we are talking about a man who is one of the most
experienced windsurfers in the world. he has added another achievement to his list of accolades, successfully completing the journey between two islands in the north sea. something know when surfer has ever done before. let's as he takes to the water, he is treated to a rousing envoy gosh -- bon voyage. he has never served as far offshore. all of a sudden, after a few kilometers, he is off of his board. there is more bad news. there is a big hole in his sales. a setback, but the journey continues. he is out to break a record. now the major challenge is navigation. but it is full speed ahead.
until, finally, there is land in sight. he has become the first win server to reach their in a single trip. >> i did not really take a break. just twice, quickly. once i saw the coast, i knew that i could do it. wax on his return trip, he took a much-needed break by taking the plane. >> it is amazing how far two bananas can take people. >> when you are surrounded by water? [laughter] >> more centralized economic government in europe as a way to increase the -- to head off the debt crisis? more on that in a minute.
>> josephine clark is a woman with a vision. she introduces high-quality seats for farmers. she began small, convinced in which he heard when she was a child. what we are proved that a woman can be equal. >> opportunity and smart economics. >> welcome back. the leaders of france and germany have moved to reassure international financial markets
that the year rose on has proposed a constitutional beaulieu rule on balanced budgets. t of a broad plan announced in paris, the french president and the german chancellor say that it goes to the heart of concerns over servicing the national debt. at the center of the proposal is a call for deeper economic governments. they will have to cede some of their deeper economic recovery to brussels. >> a european economic government to save the euros on. nicolas sarkozy and angela merkel say that they will send a letter to the european council president on wednesday. they are counting on him to convince remaining members -- remaining members.
let's it is important and right that these members move together toward greater commitment, including asking their parliament to open the commission. adding a completely new quality to the heroes on. -- euro zone. >> the head of the new economic government should be [unintelligible] >> the plan adds a new dimension. germany's politicians thought i had avoided a great the fault in rescuing the single currency. >> today the euro zone states have shown that we are up to the challenge. >> european leaders, expected to enjoy their summer break, turning the senate compromise is into laws. question marks started to undermine their plans.
the most important, was the euro safety net big enough they turned their attention to italy. italy's finance minister had to watch as rome's bond yields increased in cost. expressing reservations, they doubted in an open letter that the compromise was enough. speculators had a field day. the finance minister broke off his holiday. >> you are looking at the technical work that will be complemented. >> investors were unconvinced. the market's took a nosedive. politicians were forced to react. speeches, followed by speculation, followed by more speeches.
sarkozy had to return early from his vacation. his answer was new austerity measures. the holidays are well and truly over. it seems that the effort to increase the euro is gathering steam again. it remains to be seen how it goes well months the rest of the euro zone. >> there is the view from berlin. terry martin, plenty of proposals coming out of the palace the day. what do they say about pressure on paris and berlin right now? >> the pressure on germany and france, as the largest euro zone economies, is tremendous. in the press conference they made it very clear that they felt germany and france had
special responsibility within the euro zone. in the france -- press conference, the leaders made it clear that they were not talking about short-term problems. that they were rather talking about long-term solutions to the underlying problems. they were attempting to address a discrepancy that had a group of countries with a common currency not having any underlying fiscal policies. it is clear that with germany, and france, both having very little economic growth in the second quarter, it was obvious in that press conference today that those leaders thought of themselves as a dressing longer- term problems as the twin engines of european integration, so to speak. they are talking about long-term solutions now. >> there were certainly many ideas.
how do you think the proposal will go down in berlin. of an economic european government, but there may be some muted support for that. you certainly will see the berlin parliamentarians, along with other countries in the euro zone, coming up with a debt ceiling. all of that sounds very good from berlin. the idea of a financial transaction tax has been bandied about for a long time and it is doubtful that that will get much support. >> leaders saying no to bonds, can they hold the line? >> the two leaders said that this is not the time to talk about bonds, but i can expect that in the future, if those
underlying economic structures are put in place, and i can imagine that the discussion of eurobonds might come up again in the future. >> thank you very much. as if all of the talk of new government borrowing at higher rates was not european at the same time as these talks were being held, europeans were buffeted by the release of the latest economic figures for growth. just a few days ago, economic data showed the economy was spot growing entirely in the second quarter. fast -- france is one of the world's largest economies. the mood on the streets of paris is not optimistic. >> chances are good that this bakery is going to prove crisis resistant.
the french always come back, even during a downturn. but many other businesses are feeling the pinch. consumption is an important economic indicator. the french public is reining in spending, but government that is growing fast. just a few years ago, the french public debt was 64% of gdp. it rose to 81% france is the euro zone's second biggest economy. these debt figures are a great concern it faces resistance from the bloated, public sector. one out of every five people work for the state.
and the french president that attempts to raise taxes, of this said that he must protests. the result has been stagnant state revenues, stretching back over years. the country is living behind its means, as this graph shows. last years of massive demonstration at the retirement age until 62. now he is getting ready to deliver harsher measures. >> stay with us for more news here on dw tv.
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