:00:26. > :00:31.during the corruption trial at news Welcome to date line. David Cameron
:00:31. > :00:41.tells the eurozone to get the at act together. Does anyone care what
:00:41. > :00:44.
:00:44. > :00:54.Britain thinks? How much should a banker get as a bonus? These are
:00:54. > :00:54.
:00:54. > :00:58.our guests. The World Economic Forum had a degree of optimism that
:00:58. > :01:03.the euro crisis was over. The British Prime Minister offered a
:01:03. > :01:07.chilly blast asking the eurozone leaders to lead and stop tinkering
:01:07. > :01:16.with the eurozone crisis. He is surprised about the lack of
:01:16. > :01:20.leadership. It was directed at Angela Merkel, wasn't it?
:01:20. > :01:28.shouldn't throw stones. This is exactly what is happening in
:01:28. > :01:37.Britain. It is the be all and the end-all of the economic recovery.
:01:37. > :01:42.As you know in Europe, we're not going to have a recovery. He say
:01:42. > :01:47.that we are not going to have a recovery in Britain any time soon.
:01:47. > :01:55.He put these four down on the financial transaction tax. -- he
:01:55. > :02:00.put his foot down. He equated it to madness. It is a wash. It does not
:02:00. > :02:07.concern Europeans. If they want to go ahead with it, they would do so.
:02:07. > :02:12.There was a view that this was mildly irritating or irrelevant?
:02:12. > :02:16.Irrelevant. They can sort their own business without Britain being a
:02:16. > :02:26.member of the euro. They do not have to be a signature of the
:02:26. > :02:28.
:02:28. > :02:33.Communion pact. Only this morning, on the weekend rather, George
:02:33. > :02:39.Osborne tried to make amends for the depression that Cameron had
:02:39. > :02:43.created. He said that the European nations had been so courageous so
:02:43. > :02:52.far. He definitely tried to wipe out the negative impression that
:02:52. > :02:59.David Cameron had left behind. A must be some irritation that he's
:02:59. > :03:08.doing it for domestic, political reasons? It is unhelpful and showed
:03:08. > :03:13.no vision, coming from a country that itself has a lot to answer for.
:03:13. > :03:23.Is this the story of the future? Is Britain semi-detached from the
:03:23. > :03:28.actions of Europe? I think it is a logical outcome, this ambivalence.
:03:28. > :03:32.Particularly in the Tory party. David Cameron explained to them. He
:03:32. > :03:37.is leading the centre-right coalition in Europe to join the far
:03:37. > :03:43.right. Losing all the plants that you need if you're trying to have
:03:43. > :03:46.deals in Europe. The need to have friends and partners. Unita be
:03:46. > :03:52.speaking to the German Christian Democrats. They lost that even
:03:52. > :03:58.before the election. It has gone on since then. They do not have the
:03:58. > :04:03.referendum which says in or out. Quite wisely. They are left in this
:04:03. > :04:09.position where they are pandering to the recalcitrants Anne's
:04:09. > :04:19.unsatisfied all wings of their party. They are sacrificing any
:04:19. > :04:25.
:04:25. > :04:28.employers they could have. -- influence. It is remarkable that in
:04:28. > :04:34.Britain we are reading stuff that was not even talked about at the
:04:34. > :04:43.summit. The way that the European matters are discussed at the summer
:04:43. > :04:53.I disconnected to however one else sees it. Most of the print media
:04:53. > :04:53.
:04:53. > :04:57.are European. -- are disconnected to how everyone else sees it. It is
:04:57. > :05:01.very hard for a prime minister, during these times, to be pro-
:05:01. > :05:07.European. David Cameron has a right wing of his own party to contend
:05:07. > :05:10.with. Basically, also the British public opinion. All that said,
:05:10. > :05:15.looking at the way in which the eurozone has handled the crisis
:05:15. > :05:23.over the past year, the horrible metaphor is to keep the can down
:05:23. > :05:28.the road, Greece is not in it. -- kick the can. Greece has not got a
:05:28. > :05:35.handle on it. They have not done enough. He has got a point, they
:05:35. > :05:40.have been tinkering. The anger lasted longer than many people
:05:40. > :05:50.expected. It has been over nine months. Too long. David Cameron
:05:50. > :05:54.wants to lecture them. You have to listen to the British arrogance.
:05:54. > :06:01.Who is he to go and lecture other European countries and other
:06:01. > :06:04.eurozone is to do this or that? He opted to stay away from the
:06:04. > :06:08.eurozone, well David Cameron should mind his own business. He should
:06:08. > :06:18.talk to people the way that he's used to talk to them. I believe
:06:18. > :06:20.
:06:20. > :06:30.that the great problem will be sold soon. -- the Greek problem. Will be
:06:30. > :06:32.
:06:32. > :06:36.solved. I believe David Cameron will find himself isolated at the
:06:36. > :06:41.summit on Monday. There is no good outcome for Britain in the long run.
:06:41. > :06:46.Because there's -- the consensus in the eurozone is to make it tighter
:06:46. > :06:50.and more cohesive. This is what David Cameron talked about. Having
:06:50. > :07:00.the fees could be so blunt. If you do the tight option, there will be
:07:00. > :07:10.
:07:10. > :07:15.even more. When David Cameron signed the fiscal pact in December,
:07:15. > :07:19.he refused to give it. The European nations did not understand why he
:07:19. > :07:26.refused it. It would have created a huge backlash for a call for a
:07:26. > :07:29.referendum in this country. That is the least that he wants. I just
:07:30. > :07:33.came from Germany and talk to people about this very problem.
:07:33. > :07:39.There is no understanding of the conflicting situation that David
:07:39. > :07:49.Cameron was in when he was in Brussels. He has a pleas to that
:07:49. > :07:49.
:07:49. > :07:54.section of the party. -- appeased. There are reasons for David Cameron
:07:54. > :07:59.being very seriously concerned about what is going on in Europe.
:07:59. > :08:03.Europe is the UK's biggest trading partner. If there is any financial
:08:03. > :08:11.meltdown in Europe, it will sweep through the City of London and all
:08:11. > :08:15.the banks. There are serious concerns that Britain should have.
:08:15. > :08:23.Perhaps one of the solutions is to sell off its utilities to be
:08:23. > :08:27.Chinese. That started well. One of the aspects of the crisis is that
:08:27. > :08:32.it is a fire sale for the Chinese. The Chinese Sarat a point where
:08:32. > :08:42.they need to create global companies FISA places for their
:08:42. > :08:44.
:08:44. > :08:54.money - like the Chinese are, safe places. They buy technology and
:08:54. > :08:56.
:08:56. > :09:04.decks BA -- expertise. They do not think at the edges. The Olympic
:09:04. > :09:07.Stadium to safeguard the edges. Much of the world's oil comes
:09:07. > :09:13.through Strait of Hormuz. The Br BrFrench navies made
:09:13. > :09:17.their presence no test in the region. How concerned should we be
:09:17. > :09:27.about military activity in this region? How concerned should a
:09:27. > :09:28.
:09:29. > :09:35.rugby that they will lose influence in Syria? -- how concerned should
:09:35. > :09:45.Iran be. There will be a lot of suffering among see people. They
:09:45. > :09:48.
:09:48. > :09:54.have had enough water. -- war. There is not want a war with Iran.
:09:54. > :10:04.There are under tremendous pressure. They have suffocated completely
:10:04. > :10:08.
:10:08. > :10:17.though sanctions -- through the sanctions created. You saw the
:10:17. > :10:24.aircraft carriers this week. Is that seen by the people in the Gulf
:10:24. > :10:31.states as a protective measure or something they do not want to see?
:10:31. > :10:41.Both. They can see threatening and a psychological war. The Foreign
:10:41. > :10:45.
:10:45. > :10:55.Minister told me that nobody wants this wall. -- these war. It could
:10:55. > :11:00.
:11:00. > :11:10.happen any minute to ignite these problems. Any little thing can
:11:10. > :11:12.
:11:12. > :11:22.trigger a war with Iran. They managed to actually co-exist with
:11:22. > :11:32.nuclear weapons, why can't they co- exist with the Iranian fuel? China,
:11:32. > :11:41.
:11:41. > :11:51.India, Russia or habit. -- all have it. Why is everyone now worried?
:11:51. > :11:53.
:11:53. > :12:03.Why suddenly? It is fabricated. They want to suffocate Iran. They,
:12:03. > :12:09.
:12:09. > :12:19.who? The Israelis, the US. They want to push Iran to the edge.
:12:19. > :12:21.
:12:21. > :12:27.There is another point of view. Around is a free country. -- Iran.
:12:27. > :12:29.It is not just about nuclear warheads, it is about the balance
:12:29. > :12:35.of power or with in that region. They used to be a balance between
:12:35. > :12:45.Iraq and Iran. Now, there is no balance of power. The Gulf states
:12:45. > :12:59.
:12:59. > :13:09.are worried of the disappearance of the balance of power. The Saudi
:13:09. > :13:17.
:13:17. > :13:24.week saying that he was disappointed that engaged in Iraq.
:13:24. > :13:33.I agree that a war is the worst of the two. A nuclear around in the
:13:33. > :13:39.long run may be inevitable. It is possible to build in safeguards,
:13:39. > :13:49.reassurances, and a wi, and a wity to a nuclear Iran. If you go for a
:13:49. > :13:54.
:13:54. > :14:03.ball, you perpetuate chronic entrenched, hardline regime or a
:14:03. > :14:13.failing state. Look at the genesis of Iran. Iran are their worst enemy.
:14:13. > :14:17.
:14:17. > :14:22.They should not make statements Is Israel a holy cow? There is no
:14:22. > :14:32.other country that has the possession of nuclear weapons than
:14:32. > :14:32.
:14:32. > :14:41.Israel. There are statements coming out of Iran and Hamas which are not
:14:41. > :14:47.conducive to a peaceful resolution. Abide by a regime of tranquillity
:14:47. > :14:52.and peace. We have not been seen that in Iran. She is considered a
:14:52. > :15:01.threatening force in the Middle East. Nobody knows what she will do.
:15:01. > :15:09.Garang did not invade the lands of other people. -- Iran did not.
:15:10. > :15:14.America encouraged Iran to do so. I am not here to defend a ban but to
:15:14. > :15:22.say how hypocritical the international community is when it
:15:22. > :15:28.comes to Israel and when it comes to Iran. Let's move on because the
:15:29. > :15:35.big story has been that the boss of the Royal Bank of Scotland has been
:15:36. > :15:45.offered a bonus of �1 million. It has caused outrage. Yes Stephen
:15:45. > :15:51.Hester a poorly paid banker or a well-paid public servant. -- is he?
:15:51. > :15:55.It is striking that the only people who do not seem to think this is a
:15:55. > :16:02.terrible outraged are Mr Cameron and his Chancellor. The Times has
:16:02. > :16:08.been running a series on the crisis of capitalism in which this fantasy
:16:08. > :16:16.pay for bankers has featured large. As the Daily Mail and other
:16:16. > :16:26.conservative newspapers. Far be it for me to suggest that the City of
:16:26. > :16:26.
:16:26. > :16:32.London contributing 51% of Tory Revenue has anything to do with it.
:16:33. > :16:39.Them accusing Mr Hester should do what the chairman of RBS has done,
:16:39. > :16:44.and hand back his bonus? I think perhaps he should. If he does not
:16:44. > :16:54.want to win the title of most vilified man in Britain from Fred
:16:54. > :16:54.
:16:54. > :17:01.the shred. I think we have to tackle the absurd casino financing
:17:01. > :17:06.that got us into this mess in the first place. The Robin Hood tax and
:17:06. > :17:09.the European financial transaction tax. Vince Cable said that
:17:09. > :17:15.shareholders ought to be the restraining factor. We own the
:17:15. > :17:22.Royal Bank of Scotland. We have not succeeded in restraining this
:17:22. > :17:28.payment. The figure concerned, close to �1 million, is small fry
:17:28. > :17:38.compared to what used to be paid in the Ha Long Bay keys. No out if you
:17:38. > :17:44.
:17:44. > :17:53.are ending �26,000 per year. Blair years. -- in the booming
:17:53. > :18:01.years. I do not think it will be an issue that Cameron managed to cut
:18:01. > :18:10.the banners in half. It does not look so bad. -- cut the bonus in
:18:10. > :18:20.half. The chairman of RBS has announced he will forgo his bonus.
:18:20. > :18:30.The chairman of the Dave e-mail got a bonus of more than that of
:18:30. > :18:38.
:18:38. > :18:45.Stephen Hester. -- the Daily Mail. That is the real issue. These
:18:45. > :18:48.bonuses have just been sort of sucked into the culture of banking.
:18:48. > :18:55.They believe that they actually deserve this money and that is what
:18:55. > :19:03.has to be changed. That's what amazes me. This man is rewarded
:19:03. > :19:11.because he sacked 33,000 staff of the bank. I wish he put himself in
:19:11. > :19:21.the place of one of those people unemployed now and suffering.
:19:21. > :19:24.
:19:24. > :19:29.33,000 of the Bank staff do not have anything. This is a crucial
:19:29. > :19:35.point. It is the behaviour of theirs in responsible positions
:19:35. > :19:44.that is so appalling. Their refusal to share the burden and the pain,
:19:44. > :19:49.some of it. There are people in the City who have defended this, saying
:19:49. > :19:54.that he is actually getting less than the going rate. But we have
:19:54. > :19:59.from the political class in its entirely in Britain: It is all
:19:59. > :20:06.terrible. It is awful. We must not stand idly by. And then they do
:20:06. > :20:11.nothing. People are talking it up without being able to do it. Is it
:20:11. > :20:18.not very difficult to force this route because you may have the
:20:18. > :20:23.entire board of RBS resigning. -- force this through. Those are the
:20:23. > :20:31.words of the Chancellor. Margaret Thatcher said there was no such
:20:31. > :20:34.thing as society, but individuals and people. These people lack an
:20:34. > :20:39.ordinary realisation that while they sprayed painted their
:20:39. > :20:49.employees they have to be seen to share some of the pain themselves.
:20:49. > :20:59.-- while they spread pain. It would not in itself tackle the root
:20:59. > :21:06.problem, that there are a group of people at the top of industry - the
:21:06. > :21:11.FTSE 100 is the same, 75 times the average pay of a worker. They get
:21:11. > :21:15.rewarded for turning up in the morning and at get a bonus for
:21:15. > :21:24.staying until the afternoon. The government has failed to tackle
:21:24. > :21:32.this structural issues. I would respect him if he said, I will give
:21:32. > :21:41.this bonus to charity. But to keep it, while people are suffering in
:21:41. > :21:47.this country. When they cannot find proper food and proper jobs. And he
:21:47. > :21:57.is enjoying two 1/2 million pounds per year. And banks have completely
:21:57. > :21:57.
:21:57. > :22:07.failed. RBS is on the road to recovery. He is doing something.
:22:07. > :22:08.
:22:08. > :22:11.The sacked people. On the suffering of 33,000 staff of the Bank. Eight
:22:11. > :22:21.would help RBS immensely if the government of Qatar were to take
:22:21. > :22:25.
:22:25. > :22:30.over. Wouldn't it? In a few minutes we have left. It has been an
:22:30. > :22:34.interesting week in American politics as well. It may be even
:22:35. > :22:40.more interesting next week with what happens in Florida. What a
:22:40. > :22:47.Ding mac maker of the Republican race? Is Newt Gingrich emerging as
:22:47. > :22:52.someone who may possibly be to Mitt Romney? A week or two ago I would
:22:52. > :22:58.have said no, that at some point he would self-destruct. Most observers
:22:58. > :23:02.in the US would say that he will self-destruct at some point. That
:23:02. > :23:09.Mitt Romney will begin to take hold as the mainstream Republican
:23:09. > :23:16.candidate. But there are no guarantees. This race feels like it
:23:17. > :23:21.has been going on for ever. And we are only at the beginning. I think
:23:22. > :23:28.this is the 19th debate between these people. When they started out,
:23:28. > :23:34.there were about 47 of them. Michele Bachmann, Herman Cain,
:23:34. > :23:39.people who are now history. All the flavour of the month for about 15
:23:39. > :23:45.minutes. The question is will Newt Gingrich be flavour of the month or
:23:45. > :23:50.for more than that? Will Mitt Romney be able to ride out the
:23:50. > :23:56.storm of criticism about under paying his taxes. Will he be able
:23:56. > :24:04.to live that down? It is a good treat if you can manage it, though,
:24:04. > :24:10.isn't it? His success as a business person is admired by a lot of
:24:10. > :24:20.people. The payment of taxes is appalling and yet there is tax-
:24:20. > :24:27.avoidance everywhere. He did not do anything illegal. It is the
:24:27. > :24:31.perception. Does he actually stand for the kind of business which
:24:32. > :24:39.people are angry about? The kind that strips out wealth, destroys
:24:39. > :24:48.jobs. That may very well have heard him in South Carolina we eat it
:24:48. > :24:54.seemed to make a difference. Gingrich and people behind him put
:24:54. > :25:04.it out a television commercial about Bain Capital. Newt Gingrich
:25:04. > :25:15.
:25:15. > :25:22.suddenly had a fat -- saying that... INAUDIBLE: it might be good for
:25:22. > :25:32.Obama. That is a good point. He suggested that one of the things he
:25:32. > :25:41.would do is put a based on the moon. And maybe we could have a factory