28/01/2012 Dateline London

during the corruption trial at news Welcome to date line. David Cameron

tells the eurozone to get the at act together. Does anyone care what

Britain thinks? How much should a banker get as a bonus? These are

our guests. The World Economic Forum had a degree of optimism that

the euro crisis was over. The British Prime Minister offered a

chilly blast asking the eurozone leaders to lead and stop tinkering

with the eurozone crisis. He is surprised about the lack of

leadership. It was directed at Angela Merkel, wasn't it?

shouldn't throw stones. This is exactly what is happening in

Britain. It is the be all and the end-all of the economic recovery.

As you know in Europe, we're not going to have a recovery. He say

that we are not going to have a recovery in Britain any time soon.

He put these four down on the financial transaction tax. -- he

put his foot down. He equated it to madness. It is a wash. It does not

concern Europeans. If they want to go ahead with it, they would do so.

There was a view that this was mildly irritating or irrelevant?

Irrelevant. They can sort their own business without Britain being a

member of the euro. They do not have to be a signature of the

Communion pact. Only this morning, on the weekend rather, George

Osborne tried to make amends for the depression that Cameron had

created. He said that the European nations had been so courageous so

far. He definitely tried to wipe out the negative impression that

David Cameron had left behind. A must be some irritation that he's

doing it for domestic, political reasons? It is unhelpful and showed

no vision, coming from a country that itself has a lot to answer for.

Is this the story of the future? Is Britain semi-detached from the

actions of Europe? I think it is a logical outcome, this ambivalence.

Particularly in the Tory party. David Cameron explained to them. He

is leading the centre-right coalition in Europe to join the far

right. Losing all the plants that you need if you're trying to have

deals in Europe. The need to have friends and partners. Unita be

speaking to the German Christian Democrats. They lost that even

before the election. It has gone on since then. They do not have the

referendum which says in or out. Quite wisely. They are left in this

position where they are pandering to the recalcitrants Anne's

unsatisfied all wings of their party. They are sacrificing any

employers they could have. -- influence. It is remarkable that in

Britain we are reading stuff that was not even talked about at the

summit. The way that the European matters are discussed at the summer

I disconnected to however one else sees it. Most of the print media

are European. -- are disconnected to how everyone else sees it. It is

very hard for a prime minister, during these times, to be pro-

European. David Cameron has a right wing of his own party to contend

with. Basically, also the British public opinion. All that said,

looking at the way in which the eurozone has handled the crisis

over the past year, the horrible metaphor is to keep the can down

the road, Greece is not in it. -- kick the can. Greece has not got a

handle on it. They have not done enough. He has got a point, they

have been tinkering. The anger lasted longer than many people

expected. It has been over nine months. Too long. David Cameron

wants to lecture them. You have to listen to the British arrogance.

Who is he to go and lecture other European countries and other

eurozone is to do this or that? He opted to stay away from the

eurozone, well David Cameron should mind his own business. He should

talk to people the way that he's used to talk to them. I believe

that the great problem will be sold soon. -- the Greek problem. Will be

solved. I believe David Cameron will find himself isolated at the

summit on Monday. There is no good outcome for Britain in the long run.

Because there's -- the consensus in the eurozone is to make it tighter

and more cohesive. This is what David Cameron talked about. Having

the fees could be so blunt. If you do the tight option, there will be

even more. When David Cameron signed the fiscal pact in December,

he refused to give it. The European nations did not understand why he

refused it. It would have created a huge backlash for a call for a

referendum in this country. That is the least that he wants. I just

came from Germany and talk to people about this very problem.

There is no understanding of the conflicting situation that David

Cameron was in when he was in Brussels. He has a pleas to that

section of the party. -- appeased. There are reasons for David Cameron

being very seriously concerned about what is going on in Europe.

Europe is the UK's biggest trading partner. If there is any financial

meltdown in Europe, it will sweep through the City of London and all

the banks. There are serious concerns that Britain should have.

Perhaps one of the solutions is to sell off its utilities to be

Chinese. That started well. One of the aspects of the crisis is that

it is a fire sale for the Chinese. The Chinese Sarat a point where

they need to create global companies FISA places for their

money - like the Chinese are, safe places. They buy technology and

decks BA -- expertise. They do not think at the edges. The Olympic

Stadium to safeguard the edges. Much of the world's oil comes

through Strait of Hormuz. The Br BrFrench navies made

their presence no test in the region. How concerned should we be

about military activity in this region? How concerned should a

rugby that they will lose influence in Syria? -- how concerned should

Iran be. There will be a lot of suffering among see people. They

have had enough water. -- war. There is not want a war with Iran.

There are under tremendous pressure. They have suffocated completely

though sanctions -- through the sanctions created. You saw the

aircraft carriers this week. Is that seen by the people in the Gulf

states as a protective measure or something they do not want to see?

Both. They can see threatening and a psychological war. The Foreign

Minister told me that nobody wants this wall. -- these war. It could

happen any minute to ignite these problems. Any little thing can

trigger a war with Iran. They managed to actually co-exist with

nuclear weapons, why can't they co- exist with the Iranian fuel? China,

India, Russia or habit. -- all have it. Why is everyone now worried?

Why suddenly? It is fabricated. They want to suffocate Iran. They,

who? The Israelis, the US. They want to push Iran to the edge.

There is another point of view. Around is a free country. -- Iran.

It is not just about nuclear warheads, it is about the balance

of power or with in that region. They used to be a balance between

Iraq and Iran. Now, there is no balance of power. The Gulf states

are worried of the disappearance of the balance of power. The Saudi

week saying that he was disappointed that engaged in Iraq.

I agree that a war is the worst of the two. A nuclear around in the

long run may be inevitable. It is possible to build in safeguards,

reassurances, and a wi, and a wity to a nuclear Iran. If you go for a

ball, you perpetuate chronic entrenched, hardline regime or a

failing state. Look at the genesis of Iran. Iran are their worst enemy.

They should not make statements Is Israel a holy cow? There is no

other country that has the possession of nuclear weapons than

Israel. There are statements coming out of Iran and Hamas which are not

conducive to a peaceful resolution. Abide by a regime of tranquillity

and peace. We have not been seen that in Iran. She is considered a

threatening force in the Middle East. Nobody knows what she will do.

Garang did not invade the lands of other people. -- Iran did not.

America encouraged Iran to do so. I am not here to defend a ban but to

say how hypocritical the international community is when it

comes to Israel and when it comes to Iran. Let's move on because the

big story has been that the boss of the Royal Bank of Scotland has been

offered a bonus of �1 million. It has caused outrage. Yes Stephen

Hester a poorly paid banker or a well-paid public servant. -- is he?

It is striking that the only people who do not seem to think this is a

terrible outraged are Mr Cameron and his Chancellor. The Times has

been running a series on the crisis of capitalism in which this fantasy

pay for bankers has featured large. As the Daily Mail and other

conservative newspapers. Far be it for me to suggest that the City of

London contributing 51% of Tory Revenue has anything to do with it.

Them accusing Mr Hester should do what the chairman of RBS has done,

and hand back his bonus? I think perhaps he should. If he does not

want to win the title of most vilified man in Britain from Fred

the shred. I think we have to tackle the absurd casino financing

that got us into this mess in the first place. The Robin Hood tax and

the European financial transaction tax. Vince Cable said that

shareholders ought to be the restraining factor. We own the

Royal Bank of Scotland. We have not succeeded in restraining this

payment. The figure concerned, close to �1 million, is small fry

compared to what used to be paid in the Ha Long Bay keys. No out if you

are ending �26,000 per year. Blair years. -- in the booming

years. I do not think it will be an issue that Cameron managed to cut

the banners in half. It does not look so bad. -- cut the bonus in

half. The chairman of RBS has announced he will forgo his bonus.

The chairman of the Dave e-mail got a bonus of more than that of

Stephen Hester. -- the Daily Mail. That is the real issue. These

bonuses have just been sort of sucked into the culture of banking.

They believe that they actually deserve this money and that is what

has to be changed. That's what amazes me. This man is rewarded

because he sacked 33,000 staff of the bank. I wish he put himself in

the place of one of those people unemployed now and suffering.

33,000 of the Bank staff do not have anything. This is a crucial

point. It is the behaviour of theirs in responsible positions

that is so appalling. Their refusal to share the burden and the pain,

some of it. There are people in the City who have defended this, saying

that he is actually getting less than the going rate. But we have

from the political class in its entirely in Britain: It is all

terrible. It is awful. We must not stand idly by. And then they do

nothing. People are talking it up without being able to do it. Is it

not very difficult to force this route because you may have the

entire board of RBS resigning. -- force this through. Those are the

words of the Chancellor. Margaret Thatcher said there was no such

thing as society, but individuals and people. These people lack an

ordinary realisation that while they sprayed painted their

employees they have to be seen to share some of the pain themselves.

-- while they spread pain. It would not in itself tackle the root

problem, that there are a group of people at the top of industry - the

FTSE 100 is the same, 75 times the average pay of a worker. They get

rewarded for turning up in the morning and at get a bonus for

staying until the afternoon. The government has failed to tackle

this structural issues. I would respect him if he said, I will give

this bonus to charity. But to keep it, while people are suffering in

this country. When they cannot find proper food and proper jobs. And he

is enjoying two 1/2 million pounds per year. And banks have completely

failed. RBS is on the road to recovery. He is doing something.

The sacked people. On the suffering of 33,000 staff of the Bank. Eight

would help RBS immensely if the government of Qatar were to take

over. Wouldn't it? In a few minutes we have left. It has been an

interesting week in American politics as well. It may be even

more interesting next week with what happens in Florida. What a

Ding mac maker of the Republican race? Is Newt Gingrich emerging as

someone who may possibly be to Mitt Romney? A week or two ago I would

have said no, that at some point he would self-destruct. Most observers

in the US would say that he will self-destruct at some point. That

Mitt Romney will begin to take hold as the mainstream Republican

candidate. But there are no guarantees. This race feels like it

has been going on for ever. And we are only at the beginning. I think

this is the 19th debate between these people. When they started out,

there were about 47 of them. Michele Bachmann, Herman Cain,

people who are now history. All the flavour of the month for about 15

minutes. The question is will Newt Gingrich be flavour of the month or

for more than that? Will Mitt Romney be able to ride out the

storm of criticism about under paying his taxes. Will he be able

to live that down? It is a good treat if you can manage it, though,

isn't it? His success as a business person is admired by a lot of

people. The payment of taxes is appalling and yet there is tax-

avoidance everywhere. He did not do anything illegal. It is the

perception. Does he actually stand for the kind of business which

people are angry about? The kind that strips out wealth, destroys

jobs. That may very well have heard him in South Carolina we eat it

seemed to make a difference. Gingrich and people behind him put

it out a television commercial about Bain Capital. Newt Gingrich

suddenly had a fat -- saying that... INAUDIBLE: it might be good for

Obama. That is a good point. He suggested that one of the things he

would do is put a based on the moon. And maybe we could have a factory