28/06/2011 BBC News at Ten

Petrol bombs on the streets of Athens as a general strike against

further austerity measures turns violent. Clashes outside parliament

on the eve of a crucial vote on more spending cuts and tax rises.

After all the tension, bitterness and frustration of recent days, it

was almost inevitable that there would be an outbreak of violence.

Further clashes tonight, as Greece is told it must pass the measures

to get international help to stop it going bankrupt. We'll be

assessing whether the Greek government can deliver the

necessary reforms. Also tonight... As public sector workers prepare to

strike on Thursday, David Cameron insists plans to reform their

These strikes are wrong for you, for the people you serve, for the

good of the country. Another high street chain in

trouble, as household incomes see their biggest fall since the late

1970s. Hidden charges on credit and debit

cards - travel companies are told to be upfront with the customer.

And what a difference 24 hours makes as Wimbledon's defending

champion, Rafael Nadal, brushes off Good evening. There have been more

violent clashes on the streets of Athens tonight after a day of

protests against the Greek government's latest austerity

measures. Masked demonstrators threw petrol bombs at riot police

on the eve of a key vote on more spending cuts and tax rises. With

Greece on the brink of bankruptcy, the government has to win the vote

tomorrow to secure an emergency international loan. Without it,

Greece will run out of money within weeks. From Athens, our Europe

Late into the evening, there were clashes between police and

protesters outside Parliament. All pot of the day of protest against

an austerity package which Greek MPs will vote on tomorrow. Earlier,

the protest had turned violent. For hours there were running battles in

the square outside Parliament. Communications trucks were attacked

and set on fire. After all the tension, bitterness and frustration

of recent days, it was almost inevitable that there would be an

outbreak of violence. The police fired hundreds of volleys of stun

grenades and tear gas to clear the area in front of Parliament. Inside

the Greek government, there is real anxiety about the extent of these

protests. Away from the centre of the city, most parts of the Greek

economy were brought to a halt by a 48-hour strike. The government

insists austerity measures are needed to qualify the country for a

further emergency loan from the EU and the IMF. Without them, the

country is heading for bankruptcy, they say. But many Greeks do not

accept that. This does not get us out of the crisis. They are lying,

everybody knows that. Time and again, ordinary Greeks told me they

were not to blame for the debt crisis. The IMF and the European

Union and the Greek government are trying to make us pay a debt which

trying to make us pay a debt which we did not create. The Greeks are

facing years of budget cuts, �25 billion by 2015. 150,000 public-

sector jobs will go. There will be a range of new tax increases,

including some on the lowest paid. Over and above all of that, �44

billion worth of state assets will be sold off. In the debate in

parliament, the opposition made it clear they do not accept the

clear they do not accept the Government's argument for more

austerity. I also fought, said the Leader of

the Opposition, so that I could send a message that the

Government's's policy is wrong, and has surpassed the limits which the

Greek people can handle. Government supporters were defiant. I believe

today's protests just make it stronger for us to believe and see

and understand the responsibility of our vote. Late tonight, and many

Greeks are still on the streets, defying the pleadings from the

European Union and the IMF that there is no alternative to

austerity. And we can speak to Gavin in Athens

now. There is such intense pressure on the Greek government, they seem

to be stuck between a rock and a hard place. That's right. There are

skirmishes still going on, the air is heavy with tear gas. There is

something of a rock concert going on in the Square, and people are

attacking government ministries. That's the domestic pressure. And

we are after midnight here in Athens. But there's also huge

pressure coming from Europe. The President of the European Council

today said these were critical hours for Greece and for the

eurozone. The new head of the IMF, appointed today, said, if I have

one message for Greece, it is that they have to find national unity in

support of the Government's austerity measures. But so far,

there's little sign that that is appearing. Another EU commissioner

said this was a moment of great crisis for the eurozone. I think

tomorrow it is likely that these austerity measures will be passed.

But the big question is, bearing in mind what is going on behind me at

the moment, will faithfully be able Here, David Cameron has told around

three quarters of a million public sector workers in England and Wales

that it's wrong for them to strike on Thursday over planned reforms to

their pensions. The Prime Minister told the teachers, lecturers and

civil servants that the proposed changes were "essential and fair".

Our deputy political editor, James For sum, it is time to get ready to

strike. Across the country, activists like these are cutting

and pasting and sticking their placards, preparing for Thursday,

when up to three-quarters of a million public sector workers are

expected to close hundreds of schools, courts, Jobcentres and

other government offices in protest against pension changes.

My pension will be worth �46,000 less. I will have to work an extra

six years for that, and also pay �60 extra a month, which I will

find very difficult. In Birmingham today, David Cameron avoided a

demonstration outside, but inside he threw his personal weight behind

the pension reforms, saying they were fair to the taxpayer, and

would still leave many in the public sector better off than those

in the private sector. To those considering strike action

at a time when discussions are ongoing, I would say to you, these

strikes are wrong - for you, for the people you serve and for the

good of the country. The problem is that we are all

living about six years longer than we were in 1980. That means the

public sector pension funds are facing a black hole of almost �10

billion by 2015. So the Government wants most public sector workers to

pay more into the pensions, and to work until they are 66. David

Cameron was not just making his case to the unions, he was

appealing to a wider audience. The battle for public opinion will be

as vital as the argument over the detail. The leader of one of the

unions striking this week insisted it was sprinter who was getting it

wrong. I think the Prime Minister's

comments today show how out of touch he is with ordinary people in

this country. He is urging them not to strike while forcing them to

work eight years longer, pay thousands of pounds more and get

half of the pension back. Once upon a time, activists might have relied

on the unconditional support of the Labour Party, but not today.

I think the strikes are a mistake. They should not be going ahead

because they will inconvenience parents and children. Public sector

pensions need to be reformed, but the Government has got to take its

share of the responsibility, because they have gone about the

negotiations in a reckless and provocative way. My message to both

sides is, get round the table. now, the politicians' appeals are

falling on deaf ears, and the negotiations and preparations for

the strikes continue. One of the main hotels in Kabul in

Afghanistan is under attack tonight. At least 10 people are reported to

have been killed. The Intercontinental is on a hill on

the edge of Kabul, it is one of the few Western-style hotels in the

city. The streets around it have been sealed off. There are reports

of three suicide bombers detonating their explosives, heavy machine-gun

fire, and one attacker is said to be targeting security forces from

the hotel would. The Taliban is reported to have claimed

Household incomes have suffered their biggest fall for more than 30

years. The new figures came as the Bank of England Governor, Mervyn

King, warned the country was facing a "very substantial squeeze" on

living standards. Retailers are feeling the effects - the discount

department store TJ Hughes and Thorntons are the latest on the

high street to run into trouble. Our chief economic correspondent,

It is a hard road ahead for households. The prices of many

everyday items are rising rapidly and pushing up inflation. But wage

increases are lagging behind, leaving people worse off. Today,

the Bank of England's Governor, challenged about high inflation,

told MPs he understood the pressures facing families.

Inflation is clearly uncomfortably high, this is a symptom, not a

cause, of a very substantial squeeze on real living standards. I

do not believe it is easy to do much about that. This is the way in

which we as a country are adjusting to the consequences of the

financial crisis. Official figures confirmed the

It is the biggest fall in household income since 1977. Household

spending has fallen by 0.5% over the same period. All that helps

explain why more retailers have run into trouble. The department store

chain TJ Hughes said today it was set to call in administrators -

4,000 jobs are at risk. Chocolate maker Thorntons said it would shut

at least 120 shops over three years. Yesterday, the this is chain -- the

fashion chain Jane Norman went into administration. More people are

shopping on the Internet, more non- food spending, which is putting

pressure on some long-established high-street names. Shoppers and

retailers may be feeling the pain, but some argue this is part of a

necessary rebalancing, with a move away from borrowing and consuming

towards saving and investment. Manufacturing is growing steadily,

boosted by strong exports, and there have been calls for policy

makers to support growth in this kind of industry.

They have got to find a way of recruiting the economy, getting

growth to come from investment and trade, replacing the consumption

driven growth of the past 10 years with something more substantial.

The theory is that there will be long-term gain for the economy, but

involves pain right now for the high street and for the consumer.

In Libya, rebels say they have captured a major underground

complex of weapons bunkers. They were able to take the arms dump

following a NATO air strike. Our world affairs correspondent, Mark

Doyle, was taken to the front line to see it.

We arrived shortly after a rebel fight to clear the arms dump of any

Coloureds still loyal to Colonel Gaddafi, but not before rebel

sympathisers had begun collecting their prize. The opposition

fighters in this part of Libya are mainly ethnic Berbers. They now

want their share of the rebel action. They have pushed forward,

but not without difficulty. When we joined them at their front line on

the way to Tripoli, a burnt-out car was being salvaged, they need the

spare parts. And Colonel Gaddafi's Go, go, go. We escaped without

problems. But there have been many casualties on the rebel side. This

man was shot in the wrist with a large-calibre bullet. It was touch

and go whether he would keep the use of his hand. The rebels tell us

that NATO bombed the arms depo a few days ago and the complete

obliteration of this bunger is evidence enough. Until now, the

rebels have always insisted they're the ones at a disadvantage because

they have only small arms while Colonel Gaddafi has the long-range

artillery. The capture of this arms and ammunition dump may change all

that. The next time the rebels go to their frontline, fresh arms and

ammunition are likely to go with them.

Coming up on tonight's programme: Booming in Brazil - how Latin

America is racing ahead where Britain trails behind.

Universities in England will be able to compete for more students

under plans unveiled by the Government today. With fees due to

rise in 2012 to a maximum of �9,000 a year, Ministers say it means

students will be able to judge if they are getting the best return

for their money. Our education correspondent Reeta Chakrabarti is

here with the details. Thank you, Sophie. Well, English

universities come in many shapes and sizes, offering academic and

vocational courses. Their differences will be more stark from

next year with tuition fees ranging from a maximum of �9,000 to �6,000

with further education colleges doing degrees for less. Ministers

want future students to know more about what they'll get, viewing

them as consumers who'll demand more because they'll be paying more.

So students will be able to compare universities according to hours of

teaching, teaching quality and what the expected future salary is for

graduates once they leave. We will put students at the heart of the

system, improving the academic experience with universities and

colleges more accountable to their students than ever before. We will

also take steps to improve social mobility without compromising

academic excellence or institutional autonomy. There are

other changes to the university landscape too. At present, student

numbers are fixed for each institution, but next year they'll

compete for a quarter of those students, with the prestigious

university recruiting more of the brightest, getting at least two As

and a B and new universities being allowed to recruit more on prize,

any courses costing less than �7,500, but because the overall

number of students will stay the same, allowing some to expand means

that some could get squeezed and be forced to close.

This London university could be one to feel the pressure. It's charging

an average of �7,500. Its Vice Chancellor is worried he could lose

up to a third of his students. Inevitably, universities in the

middle perhaps who can't compete with the A-A-B, an upward shift of

that could get squeezed. Of course that's a real concern because we

offer the widening participation. We offer the students who have not

had chance to go to university before, the first of their families

ever to go into higher education. Critics say expanding cheaper

universities is all about cutting costs because it's the Government

that pays the tuition fees up front and at least half of the

universities are charging the maximum for all or some courses.

Far more universities are charging �9,000 than the Government planned

for, causing huge political embarrassment for the Government

and creating a funding crisis with the Treasury, and that the real

substance of this White Paper is a desperate drive to cut fees no

matter what the effect on quality. These are big changes, and tomorrow

the Education Secretary in Scotland will outline how he plans to plug a

multi-million-pound university funding gap. Ministers have ruled

out raising fees for Scottish students, but might charge those

from England, Wales and Northern Ireland more.

Thank you very much. Travel companies have been

threatened with legal action by the Office of Fair Trading over

misleading charges for online debit and credit card bookings. The

Government says it will work with the regulator to ensure people

don't face excessive surcharges when using their cards online. Our

personal finance correspondent Simon Gompertz reports.

Credit and debit card charges have taken off, with easyJet adding at

least �8 to most card sales and total airline surcharges climbing

to �300 million a year. Rail booking agencies are charging too.

Trainline levies �3.50 for credit card bookings. Charges for using

debit cards should be banned, says the Office of Fair Trading, but for

now, it's threatening court action where it judges that consumers are

being misled over what surcharges they have to pay. We're glad that a

number of companies have agreed to increase the transparency of their

fur charging but where they don't go far enough, we'll take action to

ensure that consumers can make the right choice. On the High Street

you rarely, if ever, face those charges, so what you see is what

you get, even though bank and card companies charge the shops to

process the payments. If you're buying online, you can't use cash,

and often what you see is not what you get because it can be hard to

find out what the surcharges are, so you could end up paying tens of

pounds to use a card when in fact the cost of processing the payment

is 2% if it's a credit card and just 20p on average if it's a debit

card. EasyJet and Trainline said they'd work with the Office of Fair

Trading, though Ryanair argued that it wouldn't have to change its fees.

Shoppers in Belfast made it clear how much they disliked card

surcharges. Surely, it would be more convenient for them paying by

card, you know, as opposed to anything else. What's the

alternative? There is no alternative. It's ridiculous. I

think you ask for one payment. That's all you should be paying,

shouldn't be paying any extra. There could be more restrictions in

store for surcharges. A European directive is being drawn up to

prevent companies levying anymore than processing the true cost of a

payment. Now, while Greece grapples with its

huge national debt and the rest of Europe tries to extricate itself

from the legacy of the financial crisis three years ago, other parts

of the world are booming. One of those countries is Brazil. With its

wealth of natural resources, the country grew by over 7% last year.

But could the boom be fuelling a new bubble? Our economics editor

Stephanie Flanders has been to find out.

Brazil today feels like the opposite of the UK. House prices,

investment, growth - it's going down in Britain. In Brazil, it's

going up. Brazil's economy grew by 7.5% last year compared with just

1.3% growth in the UK. We're hitching a free ride up the coast

to see how the richest man in the country plans to exploit its

biggest advantage - its abundant natural resources, including newly

discovered oil. Unlike us, they're better off when the price of all of

these basic commoditys is going up. When it's finished, this new super-

port will be the biggest in the Americas this. Pier runs three

kilometres out from the mainland and when it's done, you'll be able

to get four container ships all docking here at the same time.

There will be another port further out able to take the biggest tanker

in the world, the Chinamax, and the clue is in the name. The bulk of

the business of this place for the foreseeable future will be sending

raw materials like iron ore to China.

Eike Batista's father sold raw materials to Japan when it was

taking off. His son, already worth $30 billion, wants to do the same

for China. The rich resources, OK, in Brazil, we have a lot of them

still. The Chinese are mining 4% iron ore in the ground. We mine 40%

iron ore. But as usual, when it comes to China, the traffic isn't

all one-way - far from it. The growth of the last ten years has

created a whole new class of consumer here in Brazil, but

they're not spending their new money on Brazilian goods. Last year

alone, imports from China went up by 60%. Most of what you can see

here is made in China, and so were 80% of the costumes in this year's

Rio Carnival. Money has been pouring into property - maybe a bit

too much of it. In some Rio shanty towns, prices have trebled in the

last three years and mortgage lending to poorer families has

taken off, even with lending at an eye-watering 25%. The people

started to see they could buy their own houses, making their own dream

come true, which is having your own house and stop paying rent for the

rest of their lives, so they don't really think much of the high

interest they pay. What they think is that they're making their dream

come true. Like many emerging markets, Brazil's economy is a bit

too hot, while places like Britain and the US are too cold. The world

would all be better off if we could be somewhere in between, but no

prizes for guessing who is having more fun.

In cricket, England have beaten Sri Lanka comprehensively at the Oval

this evening. They bowled the tourists out for a rain-affected

total of 121 to win the first one- day international by 110 runs.

There are four matches still to play in the series.

The defending Wimbledon men's champion Rafael Nadal will be able

to defend his title after all. His future in the tournament looked in

doubt last night when he injured his foot on court. But a scan

revealed there was no damage and he's fit to fight his quarter-final

match against America's Mardy Fish tomorrow. Our sports correspondent

Tim Franks reports. Rafa Nadal, the muscle man of

tennis, was in such pain last night, he thought he'd broken his foot. It

was only this evening that he was up for a limber on the practise

courts - good news for everyone except his future opponents, but

the experts say Nadal's approach to the game will catch up with him.

mean, he's wonderful to watch, but the positions he gets into and the

force he uses on every shot in comparison with someone like Roger

Federer, who is sort of almost like a ballet dancer - is just totally

different. Should Andy Murray, training earlier today, win his

game tomorrow along with Rafael Nadal, they'll face each other in

the semi-finals. Andy Murray's best preparation may be to steer clear

of the TV. APPLAUSE

Yesterday, it showed Nadal, even on one foot, able to defeat the highly

talented Juan Martin Del Potro. APPLAUSE

Most mortals, it seems, couldn't beat Nadal if he were bound and

gagged and staked to the baseline. So the tale of Rafa's foot has

provided one twist to these Championships, but the fleetest

footwork of the day has had to belong to the Wimbledon

administrators, who have had to reschedule a slew of rain-sodden

matches. Even under the roof of Centre Court, the weather demanded

it be heard. The unseeded Sabine Lisicki was en

route to winning her quarter-final but not before she'd been made to

flinch. Her next match will be against former champion Maria