:00:04. > :00:14.The dust settles on the EU summit and exposes new divisions and
:00:14. > :00:14.
:00:15. > :00:23.worries about the future. Odd man out. Britain's David Cameron is
:00:23. > :00:27.feeling the heat at home and abroad. Nicolas Sarkozy promises a legal
:00:27. > :00:37.framework in weeks. But his presidential opponent it says he'd
:00:37. > :00:39.
:00:39. > :00:49.renegotiated. -- we negotiate it. Welcome to GMT. I'm George Alagiah.
:00:49. > :00:58.Also in the programme... What is America's legacy in Iraq? We ask
:00:58. > :01:01.Iraqis for their views. Italy's jobless youth demand a future. A
:01:01. > :01:10.new survey sees unemployment rising up the list of worries around the
:01:10. > :01:13.world. It's early morning in Washington, 8pm in Hong Kong and
:01:13. > :01:16.midday here in London, where David Cameron is due to make a key speech
:01:16. > :01:19.in the next few hours explaining his lone opposition at last week's
:01:19. > :01:26.European summit. He'll do so against a backdrop of criticism at
:01:26. > :01:29.home and abroad. In France, the head of the financial regulator
:01:29. > :01:36.said Mr Cameron's action now shows that the British right is the
:01:36. > :01:37.stupidest in the world. Here his coalition government partner, Nick
:01:37. > :01:43.Clegg, says he's "bitterly disappointed". The politics aside
:01:43. > :01:46.there's still the question - will the deal solve the problem?
:01:46. > :01:50.Britain's Parliament is getting ready to hear from the Prime
:01:50. > :01:55.Minister, David Cameron. Many of his own MPs will welcome his
:01:55. > :01:59.decision to veto European Union treaty changes. But his coalition
:01:59. > :02:02.partner, Nick Clegg, has said he is bitterly disappointed, and the
:02:02. > :02:07.Liberal Democrats are said to criticise Mr Cameron for isolating
:02:07. > :02:11.Europe. Senior figures, however, are trying to maintain calm in the
:02:11. > :02:16.coalition. I think the public and particularly the business community,
:02:16. > :02:20.which we want to continue investing and growing out of at a crisis, are
:02:20. > :02:23.not terribly interested in these tribal arguments. What we badly
:02:23. > :02:28.need is complete reassurance that we are fully committed to working
:02:28. > :02:31.in the European Union, millions of British jobs depend on it.
:02:31. > :02:35.President Sarkozy, of France, has told Le Monde newspaper that the
:02:35. > :02:39.legal aspects of last Friday's European summit deal will be worked
:02:39. > :02:45.out in the next 15 days. In the meantime, French Socialists have
:02:45. > :02:48.accused him of bowing to pressure from Germany.
:02:49. > :02:52.TRANSLATION: If I'm elected President I will renegotiate this
:02:52. > :02:55.deal to include what is missing today. I mean efficiency on the
:02:55. > :03:02.markets. Let's hope we won't be downgraded before that. I really
:03:02. > :03:05.hope, for the interest of my country. But in Brussels, Europe's
:03:05. > :03:09.economic affairs commissioner has said the new EU treaty will -- is
:03:09. > :03:17.better than first seemed. Well we would certainly have preferred a
:03:17. > :03:24.treaty at 27, this is called Compact treaty is, policy Wise,
:03:24. > :03:27.bold and effective and legally viable. It looks likely that 20
:03:27. > :03:32.sixth of the 27 members of the European Union will agree to the
:03:32. > :03:40.new accord setting out tougher Budget rolls. Britain is the
:03:40. > :03:44.notable exception. Later, David Cameron will explain why. We can
:03:44. > :03:50.now speak to the former British Europe minister, Labour MP Denis
:03:50. > :03:57.MacShane. What do you think David Cameron it should and could have
:03:57. > :04:02.done at this summit? Frankly, avoided taking a decision at 2:30am
:04:02. > :04:06.when they are all exhausted. We now face a triple crisis. Firstly, the
:04:06. > :04:10.diplomatic blunder that has left Britain utterly isolated. Secondly,
:04:10. > :04:14.you have without precedent in Britain the Deputy Prime Minister,
:04:14. > :04:18.number two and the government, open the attack in his Prime Minister.
:04:18. > :04:23.How do governments survive like that? Thirdly, what worries me is
:04:23. > :04:28.you are getting around the world the words Britain and isolated
:04:28. > :04:33.being linked. Some quite unpleasant stuff in European papers saying how
:04:33. > :04:37.the English hate Europe. I don't think we do. That, unfortunately,
:04:37. > :04:41.is the impression David Cameron has given to 26 other countries in
:04:41. > :04:46.Europe. Let's take the substance and what he thought he was trying
:04:46. > :04:50.to oppose. You've got Nicolas Sarkozy today saying that clearly
:04:50. > :04:53.there are two Europe's, I am quoting this. One that once more
:04:53. > :04:59.solidarity between member states and more regulation, and another
:04:59. > :05:06.that doesn't. Wasn't David Cameron to -- right to oppose greater
:05:06. > :05:09.regulation? Tony Blair opposed the Working Time Directive it. What he
:05:09. > :05:15.did was go and see Gerhard Schroeder and say, what do you
:05:15. > :05:19.want? What the Germans wanted was no directive from Brussels imposing
:05:19. > :05:23.and taking over deals on German companies without a lot more
:05:23. > :05:27.consultation. That was the deal. Tony Blair worked with Europeans,
:05:27. > :05:30.so did Margaret Thatcher. David Cameron hasn't picked up the phone
:05:30. > :05:35.to a single European leader and said, look, this is what I want,
:05:35. > :05:38.this is important for Britain, can you help me? Last Thursday, what
:05:38. > :05:42.they were wanting with things like the financial transaction tax, they
:05:42. > :05:45.were looking for boat -- they were looking for a budget oversight. You
:05:45. > :05:50.are not telling me the Labour Party would have said, OK, come and have
:05:50. > :05:54.a look at our books. We are all agreed that if we want in the
:05:54. > :05:59.eurozone, Epping give his agreed now that there has to be some
:05:59. > :06:03.mutual sharing of budgets, those are no secrets in any case. What we
:06:03. > :06:08.have to stop other debts of Ireland, Greece and Portugal, but they ran
:06:08. > :06:11.up. But had he not drawn a line in the sand their round them and gone
:06:11. > :06:15.along with this treaty, it would have been much harder further down
:06:15. > :06:18.the track to say, by the way, on the financial transactions tax,
:06:18. > :06:25.Britain doesn't want it. The Labour party presumably doesn't want that
:06:25. > :06:30.either. But the diplomatic blunder is that David Cameron has quit all
:06:30. > :06:35.relationships with other centre- right parties in Europe. He has
:06:35. > :06:41.that party of his dreams, he is so isolated. It's the diplomatic
:06:41. > :06:45.handling, it's the process that is so damaging. When in the New York
:06:45. > :06:48.Times you read the line, Britain is isolated. That frightens me because
:06:48. > :06:52.investors all over the world of thinking, where do we put our money
:06:52. > :06:56.tomorrow? If they see a Britain that seems to be disconnecting
:06:56. > :07:00.itself from the world's biggest market and which is at odds with 26
:07:00. > :07:04.other countries... In the past Britain has always had a few
:07:04. > :07:09.friends, big or small friends, David Cameron has left a cell alone.
:07:09. > :07:12.What about here at home? The Liberal Democrats have said this
:07:13. > :07:18.won't make any difference to the coalition government, it will run
:07:18. > :07:23.until 2015. That clearly is something that most people will be
:07:23. > :07:27.glad of. The last thing people in Britain want his political upheaval.
:07:27. > :07:34.That I agree with. We are only 18 months into a government that is
:07:34. > :07:40.meant to be stable. I just find it constitutionally weird that you
:07:40. > :07:45.have the Deputy Prime Minister openly trashing the Prime Minister.
:07:45. > :07:50.Who represents Britain now - Nick Clegg or David Cameron? What do
:07:50. > :07:53.civil servants say and do, who do they take orders from? This may be
:07:54. > :07:57.a new constitutional Era we're getting into, but it is profoundly
:07:57. > :08:02.worrying. The country needs to unite around commonsense policies
:08:02. > :08:06.to get us out of this mess. We need to find partners everywhere in the
:08:06. > :08:11.world, including east of Calais will stop Mr Cameron unfortunately,
:08:11. > :08:21.in the way Mrs Thatcher would never have done, left Britain utterly
:08:21. > :08:22.
:08:22. > :08:25.isolated and alone. This is very Britain is not the only country
:08:25. > :08:29.where the outcome of Friday's European summit is proving divisive.
:08:29. > :08:33.In France, the opposition Socialist candidate for the presidency says
:08:33. > :08:37.he would seek to renegotiate the deal if elected next year. That may
:08:38. > :08:42.not be entirely surprising, coming from a politician running against
:08:42. > :08:47.Nicolas Sarkozy. But the view from the financial market seems to be
:08:47. > :08:50.equally sceptical. Ratings agency Moody's has declared the talks as
:08:50. > :08:54.failing to produce the size of policy measures. It is threatening
:08:54. > :09:02.to review the credit ratings of all EU states within the next three
:09:02. > :09:06.months. I'm joined now from Paris by a professor of economics at the
:09:06. > :09:16.Institute of political Studies. What do you think at the summit
:09:16. > :09:17.
:09:17. > :09:27.achieved last Thursday? I am trying to think about it. I am not finding
:09:27. > :09:27.
:09:27. > :09:32.much about the conclusion of the summit. Apart from fiscal rules,
:09:32. > :09:36.and the fiscal sanctions, there is not much more than that. But the
:09:36. > :09:39.fiscal rules and sanctions are important. After all, if you don't
:09:39. > :09:45.have fiscal rules you can allow people to go on having bigger and
:09:45. > :09:55.bigger budget deficits. Well, they are important but not that
:09:55. > :10:03.important. They are not up to the point. The problem has not been
:10:03. > :10:13.fiscal indiscipline. Look at the case of Ireland or Spain or even
:10:13. > :10:18.Italy. They were respecting the stability pact. Even for Ireland
:10:18. > :10:24.and Spain, they have a surplus. Clearly the problem is not with
:10:24. > :10:33.fiscal discipline. The problem lies somewhere else. What do you think
:10:33. > :10:42.the summit leaders should have been talking about? There are at least
:10:42. > :10:52.two ways to decree the fiscal deficit. There is restriction and
:10:52. > :10:57.there is growth policies. If you constrained the other countries to
:10:57. > :11:04.have an austerity programme then you will lose growth. Then the
:11:04. > :11:09.ratings agency will attack the euro area because there is no growth,
:11:09. > :11:14.and or to repay the debt to one where there is no growth. It is not
:11:14. > :11:18.as simple as it is presented. why do people like you always make
:11:18. > :11:23.it sound as if it is either financial discipline or growth?
:11:23. > :11:28.Presumably you can have both, the financial discipline imposed, as
:11:28. > :11:35.this EU treaty is trying to do, and you can encourage growth. There is
:11:35. > :11:39.no historical example where austerity led to growth. A lot of
:11:40. > :11:46.study has been done on the subject, and especially by the International
:11:46. > :11:53.Monetary Fund. There is no such a thing as an austerity programme
:11:53. > :12:01.leading to growth. Of what are we speaking? We are speaking of dreams.
:12:01. > :12:05.It would be the best in the world if fiscal austerity led to growth.
:12:05. > :12:09.There would be the end of trade- offs for the government, and it
:12:09. > :12:18.would make the task of government fairly easy. The problem is not
:12:18. > :12:23.that. The problem is we are now in the middle of a recession. We have
:12:23. > :12:33.a jumping unemployment rate, we have a rate of growth which is
:12:33. > :12:33.
:12:34. > :12:38.going down each day, if not each minute. We are really advising at
:12:38. > :12:43.the lowest level the prospective for growth for the next years.
:12:43. > :12:46.have to leave it there. Thank you for your comments. Let's take a
:12:46. > :12:49.look at some of the other stories making headlines around the world
:12:49. > :12:51.today. Syria is holding local elections today despite the
:12:51. > :12:54.continuing violence between security forces and opposition
:12:54. > :12:57.supporters. The Syrian government says the elections are part of
:12:57. > :13:00.reforms it's introducing in response to the protests. But the
:13:00. > :13:03.opposition has rejected the move and called for a boycott. Turnout
:13:03. > :13:12.is expected to be very low with many voters not willing risk going
:13:12. > :13:18.to the polls fearing violence. Russians are rallying in support of
:13:18. > :13:21.Vladimir Putin in Moscow. Claims of fraud in this month's parliamentary
:13:21. > :13:31.elections won't affect the votes legitimacy or the result, despite
:13:31. > :13:33.
:13:33. > :13:37.President Medvedev launching an Iraq's Prime Minister, Nouri Al-
:13:37. > :13:40.Maliki, is due at the White House today, and top of the agenda will
:13:40. > :13:47.be America's impending military withdrawal from his country. All US
:13:47. > :13:53.troops are due to leave by the end of the year. BBC Arabic have been
:13:53. > :13:58.asking ordinary Iraqis what this means to them. This is what is left
:13:58. > :14:03.of the American presence on the streets here. Some personal
:14:03. > :14:09.belongings and products left over by troops. They are sold on the
:14:09. > :14:16.markets. Iraqis come to get a good bargain. A pair of sunglasses that
:14:16. > :14:20.normally costs around $50 will sell here for $5. There has been no sign
:14:20. > :14:24.of American troops on the streets of Iraq for more than a year, when
:14:24. > :14:28.they pulled out from the cities. Which is why the impact of the
:14:28. > :14:33.withdrawal seems invisible on the ground, even though it marks a
:14:33. > :14:37.momentous political event. It is also what time of reflection for
:14:37. > :14:44.many Iraqis, who are still gauging whether the American invasion
:14:44. > :14:47.brought good or evil to their country. Cancellation macro the
:14:48. > :14:53.positive sides are more than the negatives. They ousted Saddam and
:14:53. > :14:58.brought the end of the old regime. TRANSLATION: What have they done to
:14:58. > :15:03.us? They harmed us, people are killed. Saddam heard us, they came
:15:04. > :15:08.after him and did the same. There is no democracy, no freedom. They
:15:08. > :15:13.are occupiers, they have brought sedation and sectarianism. Despite
:15:13. > :15:17.ongoing attacks in several parts of the country, life goes on. But many
:15:17. > :15:23.things remind people every day of the state their country has sunk
:15:23. > :15:28.into since the ousting of the old regime. The people are completely
:15:28. > :15:34.indifferent about whether the American leave or not. The issues
:15:34. > :15:40.of their health, education, work, freedom, infrastructure, they can
:15:40. > :15:46.go safely from place to place. That is what concerns people. As nearly
:15:46. > :15:50.a decade of foreign presence sets on history, whole generations here
:15:50. > :16:00.that only new wall look for a better future. As for the legacy of
:16:00. > :16:04.
:16:04. > :16:08.the last eight years, it remains Still to come, a very lucky
:16:09. > :16:18.Australia and tells the story of a close encounter with a great white
:16:19. > :16:22.
:16:22. > :16:30.First, let's get the business. I said the dust is settling over
:16:30. > :16:38.Europe, it has exposed some strange things. Yes, this light market
:16:38. > :16:41.euphoria we saw on Friday after the agreement, that has gone. The
:16:41. > :16:46.markets have been Digest in this agreement, and although it is a
:16:46. > :16:51.step in the right direction, more is needed. That was backed up by
:16:51. > :16:54.Standard and Poor's, they said more summits are needed. They also said
:16:54. > :16:59.it is likely another big shock is needed before everybody starts
:16:59. > :17:06.reading from the same page. They are talking about the German bank
:17:06. > :17:11.raising money from the markets. There has been criticism about it
:17:11. > :17:17.eurozone leaders are. What are the markets looking for?
:17:17. > :17:21.Some kind of announcement from EU leaders that would help the ECB to
:17:21. > :17:27.undertake quantitative gazing at and unlimited purchases of
:17:28. > :17:32.government bonds. But that has not materialised. Mario Draghi last
:17:32. > :17:40.week said that under no to circumstances would the ECB
:17:40. > :17:46.purchase bonds without a change in the treaty, it is not legal.
:17:46. > :17:53.The markets want the ECB to step in. Let's go back to an event which
:17:53. > :17:58.started this. RBS, the bail-out from the British taxpayer. The
:17:58. > :18:04.regulator here has come out with a report, trying to make sense of
:18:04. > :18:11.that. It is our financial watchdog, criticised for having an park and
:18:11. > :18:17.no bite. The taxpayer owns a lot of RBS, but they are looking at the
:18:17. > :18:22.deal when RBS bought ABN-AMRO. That should not have gone ahead. Very
:18:22. > :18:29.critical towards RBS management, but the FSA said it failed to
:18:30. > :18:35.challenge RBS. Why has nobody been held to account?
:18:35. > :18:40.Under the current legal system, they do not have a case. Without
:18:40. > :18:43.doubt, RBS management made a huge error, but you would have to be
:18:43. > :18:49.able to prove they were negligent or fraudulent, and they do not have
:18:49. > :18:53.a case. But they say that, going forward, the rules that govern the
:18:53. > :18:59.management of bags will be much tougher, so if it happens again,
:19:00. > :19:04.the management will be on the Hawk. Bank chiefs in charge of a bank
:19:04. > :19:09.that fails may not be able to take one of the job at another bank, and
:19:09. > :19:17.they could lose financial -- they could face financial consequences
:19:17. > :19:27.themselves. It is the same old story, the eurozone crisis.
:19:27. > :19:29.
:19:29. > :19:33.This is GMT. The headlines.
:19:33. > :19:39.David Cameron was shortly tell the UK parliament why he refused to
:19:39. > :19:49.sign the eurozone rescue treaty. In France, Nicolas Sarkozy has said
:19:49. > :19:51.
:19:51. > :19:55.Unemployment is -- has joined corruption and poverty as the most
:19:55. > :19:59.talked-about topics across the globe. Almost one-fifth of the
:19:59. > :20:03.11,000 respondents of a survey said they discussed a job losses with
:20:03. > :20:05.friends and family over the previous month. This week, we are
:20:05. > :20:11.looking at how unemployment is affecting young people around the
:20:11. > :20:14.globe. We are taking a journey from Tuscany in the north of Italy to
:20:14. > :20:23.Naples in the south, meeting young people, for whom the future looks
:20:23. > :20:27.The city of Prato in northern Italy is dominated by factories making
:20:27. > :20:32.textiles. They once employed thousands of people. But the
:20:32. > :20:38.recession has not been kind. In recent months, benefactress like
:20:38. > :20:42.this have been forced to close. Italy, like Greece, Spain and
:20:42. > :20:46.Portugal, in serious financial difficulty. In the 1980s, the
:20:46. > :20:52.Government spent too much money, and now it has to pay that money
:20:52. > :20:59.back. For students at the local college, that means jobs are hard
:20:59. > :21:03.to come by. The Head Teacher says the future looks bleak.
:21:03. > :21:09.TRANSLATION: I am not just worried former students, but for the whole
:21:09. > :21:15.new generation. I and my father, I am very worried. Travel south to
:21:15. > :21:18.the rural areas, the problem is much worse. This is Pompeii, in the
:21:18. > :21:22.shadow of Mount Vesuvius, traditionally known for farming and
:21:22. > :21:28.agriculture. Unemployment here has always been high, but over the last
:21:28. > :21:33.few years, it has jumped, and particularly amongst young people.
:21:33. > :21:38.The rate of unemployment is now the highest in Italy. It now stands at
:21:38. > :21:47.42%. But here, instead of protesting about the problems, they
:21:47. > :21:51.are making music. They say it gives them a voice. TRANSLATION: The
:21:51. > :21:58.crisis in Italy is huge. We have a weapon against the economic crisis.
:21:58. > :22:03.It is the music. TRANSLATION: Sometimes, I do small jobs to get
:22:03. > :22:08.money for me and my parents, but it is so difficult. It is all about
:22:08. > :22:11.who you know. Many want to leave Italy, but with the crisis now
:22:11. > :22:21.engulfing Europe, finding a job elsewhere can be just as difficult
:22:21. > :22:32.
:22:32. > :22:42.Joining Li Na from Geneva, Jose We have just seen the problem of
:22:42. > :22:43.
:22:43. > :22:47.youth unemployment in Italy. How universal is this problem? Yes,
:22:47. > :22:52.unfortunately, it is quite widespread. The crisis was very
:22:52. > :22:59.synchronised in many countries. Developed countries, Curate, the
:22:59. > :23:05.United States, and eight stronger impact in the developing countries.
:23:05. > :23:12.-- a stronger impact. The young people are some of the most
:23:12. > :23:19.formidable. -- most vulnerable. In some countries, the or unemployment
:23:19. > :23:26.rate among young people is three or four times the rate for adults. But
:23:26. > :23:29.there are other situations, Kim people with temporary jobs, or in
:23:29. > :23:36.long-term on employment -- young people. There are many difficult
:23:36. > :23:46.situations. Why do you think young people of being hit
:23:46. > :23:48.
:23:48. > :23:53.disproportionately? Well, there are a number of special circumstances,
:23:53. > :24:00.characteristics of young people. One of the most important, they are
:24:00. > :24:08.younger, they have never had work experience before. Employers look
:24:08. > :24:13.not only for technical competence but also for some work experience,
:24:13. > :24:19.teamwork abilities, communication abilities, etc, and many of them to
:24:19. > :24:22.not have that experience. They are in a catch 22, a vicious circle.
:24:23. > :24:31.That is why it is so important to have programs that allow them to
:24:31. > :24:35.have that kind of internship or work experience. Briefly, looking
:24:35. > :24:44.into the future, what do you think the consequences of this kind of
:24:44. > :24:53.youth unemployment are? The social consequences? We have been warning,
:24:53. > :24:58.even before the crisis, a lot of human suffering for the young
:24:58. > :25:02.people, it is a waste of human capital, and you could have a lost
:25:02. > :25:11.generation, or a generation marred by the experience of not entering
:25:11. > :25:14.the labour market in time. The long term scarring effects, it is clear
:25:14. > :25:23.that they will find it more difficult to find jobs in the
:25:23. > :25:27.To a species we definitely know about, the Great White Shark. The
:25:28. > :25:32.surfer has had a close shave after an encounter with one. It leapt out
:25:32. > :25:42.of the waves, taking a chunk out of his surfboard, but luckily, he
:25:42. > :25:44.
:25:44. > :25:49.To close to Mall, the bite that missed a surfer by a whisker. The
:25:49. > :25:53.board-erves ahead of the intended main course, Stephen King. I am the
:25:53. > :25:58.luckiest guy on two legs. Unbelievable. The shark swam off
:25:59. > :26:06.with only a mouthful of surfboard. It left Stephen with a few minor
:26:06. > :26:11.injuries. Just as I was taking off, there was a banned from the side, I
:26:12. > :26:18.cartwheel through the air. The thrashing beside me. He says he has
:26:18. > :26:24.never seen one here in 22 years of surfing. But unlike his board, he
:26:24. > :26:29.made it back to shore in one piece. Very relieved, we are lucky that he
:26:29. > :26:33.is with us still. They have been a few fatal shark attacks around
:26:33. > :26:37.Australia this year, experts say there is always some danger.
:26:37. > :26:47.have got to be realistic, this is their territory. We are just the
:26:47. > :26:49.