:00:11. > :00:16.Tonight's recipe, take a debt crisis add a half-baked summit deal,
:00:16. > :00:19.and a referendum, and there is trouble on the streets. Mix in an
:00:19. > :00:23.emergency cabinet meeting, that is what is cooking in Greece tonight.
:00:23. > :00:26.The result, stock markets tumble, a Government on the edge.
:00:26. > :00:30.In Cannes, at the G20, the most powerful people in the world have
:00:31. > :00:36.been rendered powerless by a Greek political fiasco.
:00:36. > :00:40.Is last week's deal on the euro unravelling. The man who negotiated
:00:40. > :00:44.the bank's 50% haircut joins us live.
:00:44. > :00:47.Plus, The Italian Jb, who can steer one of Europe's big economies
:00:47. > :00:51.through austerity. Those Italians who want the best,
:00:51. > :00:59.who is going to lead them? If you see that politician, please tell
:00:59. > :01:04.In Britain, the economy is growing, but 75 years after the Jarrow March,
:01:04. > :01:08.is there a new north-south divide. We will ask a Conservative Treasury
:01:08. > :01:11.minister. And the controversial law joint enterprise, which means you
:01:11. > :01:15.can be convicted of a serious crime, even if you are not directly
:01:15. > :01:20.involved. I didn't stab anyone, you didn't
:01:21. > :01:24.know the knife was present, but the person died, and under joint
:01:24. > :01:30.enterprise you have all been convicted. You come out with murder
:01:30. > :01:33.under your name. Good evening, perhaps it tells you
:01:33. > :01:37.a lot about the politics of the European Union, that the threat of
:01:37. > :01:41.voters actually having a direct say in a referendum brought markets
:01:41. > :01:44.tumbling all around the world today. Tonight the Greek cabinet are in
:01:44. > :01:48.urgent talks as we speak, the Prime Minister's career on the brink,
:01:48. > :01:50.with a vote of confidence scheduled this Friday. Before that he will
:01:50. > :01:55.attend another emergency meeting tomorrow with other EU leaders.
:01:55. > :01:58.This time in Cannes. Ahead of the G20 Summit. Well, the decision by
:01:58. > :02:03.the Greek Prime Minister to ask the Greek people, in effect, to back
:02:03. > :02:06.him or sack him, was a real surprise. The fears now are that
:02:06. > :02:12.last week's eurozone deal could unravel just a few days after it
:02:12. > :02:16.was struck. Paul Mason is in Cannes for us tonight.
:02:16. > :02:19.As far as we know the Greek cabinet is still in session. We hear that
:02:19. > :02:23.the ministers are going round the table saying what they think, so
:02:23. > :02:29.far, we hear, you can hear things out of a Greek cabinet, that they
:02:29. > :02:33.are backing him. But Mr Papandreou really has caused chaos in the last
:02:33. > :02:38.24 hours. This referendum call puts the whole deal agreed in Brussels
:02:38. > :02:43.last week back on the table, back into doubt. Certainly the markets
:02:43. > :02:47.have seen it as possibly signalling the end game, where Greece enters
:02:47. > :02:50.into chaotic default process, as the people have their say, whether
:02:50. > :02:54.it is in a referendum or snap election if the Government falls.
:02:55. > :02:59.Once they have had their say, Greece, inevitably slides towards
:02:59. > :03:03.leaving the euro, eventhough most of them don't yet want to do that.
:03:03. > :03:13.The banks in Europe have been hit hard because of this. Most stock
:03:13. > :03:14.
:03:14. > :03:20.markets as you say fell, but Unii Credit and Sot-Gen, double digit
:03:20. > :03:27.loss, meanwhile the Dutch have weighed in. The Dutch, the key part
:03:28. > :03:31.of governance arrangements in that country, saying they think the
:03:31. > :03:35.referendum Wells muchs on the deal, and that they are not tied to what
:03:36. > :03:40.they agreed, they might not be the last north European Government to
:03:40. > :03:44.say that. In Greece there is chaos, the Finance Minister, we hear, knew
:03:44. > :03:48.nothing about the referendum call before it was announced. He checked
:03:48. > :03:52.into hospital with stomach patience. They chose the very same day, we -
:03:52. > :03:57.pains. They chose the very same day, we hope, to sack some general, and
:03:57. > :04:00.Mr Papandreou has been off the airways all day. In the notes
:04:00. > :04:05.coming out of the banking fraternity, there is a clear
:04:05. > :04:09.worrying there will be a chaotic default and exit from the euro.
:04:09. > :04:13.That, I think would be end game, that is why people are so wore
:04:13. > :04:17.yeefpltd this report contains tpwhrarb photography.
:04:17. > :04:21.When the Greek frame - flash photography. When the Greek Prime
:04:21. > :04:25.Minister announced a referendum and confidence vote on the deal agreed
:04:25. > :04:28.last week, the word "bombshell", failed to do it justice. The
:04:28. > :04:33.markets fell, the Finance Minister went into hospital, a flurry of
:04:33. > :04:42.phone calls happened between world leaders, and one after the other,
:04:42. > :04:45.Mr Papandreou's MPs went A wol. Then, an - AWOL. Then an emergecy
:04:45. > :04:52.cabinet meeting. This is how Greeks greeted the deal their Government
:04:52. > :04:58.did last week, the word they chant "no", and last Friday saw clashes
:04:58. > :05:03.between people and military conskrupts over the disruption of
:05:03. > :05:06.cermonial parades. But Greece will get 100 euros of its debt written
:05:07. > :05:11.off, but faces more austerity, and virtually foreign control of its
:05:11. > :05:15.ministries. For many Greeks, Mr Papandreou's referendum will be a
:05:15. > :05:20.straight choice, vote no and effectively default and leave the
:05:20. > :05:26.euro. The Greek crisis is feeding and
:05:26. > :05:30.feeding off the simmering Italian crisis. Italy's bond yield, its
:05:30. > :05:34.cost of borrowing, has shot up above 6% into unsustainable range,
:05:34. > :05:38.but it is too figure to fail, and needs the best part of a trillion
:05:38. > :05:43.euros from the EFSF bailout fund, that doesn't yet exist, so the
:05:43. > :05:50.European Central Bank had to dive in and spend 9 billion euros to
:05:50. > :05:54.calm things down for a day. For the protestors gathered in Nice
:05:54. > :05:57.today, there was a sense that amid their ordinary demands and protests,
:05:57. > :06:00.something extra ordinary is about to unfold, because the Greek
:06:00. > :06:05.referendum, or a snap election, will see the Greek people suddenly
:06:05. > :06:08.dial into a situation they have, up to now, had no say in.
:06:08. > :06:12.A point not lost on Britain's Chancellor.
:06:12. > :06:16.There is no doubt that the decision of the Greek Prime Minister has
:06:16. > :06:20.added to the instability and the uncertainty in the eurozone, you
:06:20. > :06:24.can see that today, and what we're trying to do is create stability
:06:24. > :06:27.and certainty in the eurozone. Now, ultimately, it is up to the Greek
:06:27. > :06:31.people and the Greek political system to decide how they make
:06:31. > :06:34.their decisions. But I would say it is extremely important for the
:06:34. > :06:37.eurozone to implement the package they agreed last week, that is what
:06:37. > :06:40.I said was crucial at the time, that is what they all said was
:06:40. > :06:48.crucial at the time. I think we need to get on with it sooner
:06:48. > :06:52.rather than later. Tomorrow, here at the G20, they
:06:52. > :06:56.will there - there will now have to be an emergency meeting, and
:06:56. > :07:00.discussion about how the Greek people suddenly got dialed in, to a
:07:00. > :07:02.decision that most people had thought decided at the last
:07:02. > :07:09.emergency meeting, and what will happen if they are not quickly
:07:09. > :07:12.dialed out again. The laidback Riviera, even more unreal than
:07:12. > :07:17.normal under the fairy lights, gets ready for another surreal day,
:07:17. > :07:26.tomorrow. Tonight, what are the options left
:07:26. > :07:30.for Greece and the eurozone? If you going go back to last week. The
:07:30. > :07:35.deal agreed is they would get a third of their debt knocked off,
:07:35. > :07:39.and the people penalised by that would be the banks. Two thirds, or
:07:39. > :07:43.half of their debt is held by people like the IMF and ECB, they
:07:43. > :07:47.wouldn't lose a thing. But in return, Governments would shore up
:07:47. > :07:52.the banks, so it was a very convenient deal. It was a sort of
:07:52. > :07:57.buffer zone for the impact of the default, which is effectively what
:07:57. > :08:02.it is. Now, if the Greeks vote no, then what will then happen is there
:08:02. > :08:05.will be a much bigger default, up to 90-100%, that will apply to
:08:05. > :08:09.everybody else who holds the debt. Because it will not be voluntary,
:08:09. > :08:14.as it currently, this is the fiction, that it is voluntary for
:08:14. > :08:19.the banks, then if it is not voluntary, these credit default
:08:19. > :08:23.swaps, these insurance, basically policies, against default, get
:08:23. > :08:27.triggered and it fires the whole explosive charge into the heart of
:08:27. > :08:33.the financial system. So those are the options if they don't stick to
:08:33. > :08:37.what they are supposed to do. You know what I think has caused this.
:08:37. > :08:41.The Greeks have had foreign civil servants turn up in their
:08:41. > :08:45.ministries, and most Greek politicians have spent the last 18
:08:45. > :08:49.months shuttered in private offices with no name plate, terrified of
:08:49. > :08:53.going out on to the street, they have been shut off from reality,
:08:53. > :08:56.that hit them this week when those foreign civil servants turned up in
:08:56. > :08:59.the ministries and said we are now in control. It is very hard for
:08:59. > :09:03.democratic politicians to accept that. That is what has triggered
:09:03. > :09:06.this phase of the crisis. Thank you very much, we will come
:09:06. > :09:11.back shortly to you. In a moment we will also speak to
:09:11. > :09:15.Vicky Pryce, an economist from FTI Consulting and former head of the
:09:15. > :09:20.Government's economic service, and a Greek member of parliament. First
:09:20. > :09:22.we're joined by Charles Dallara, as head of the Institute for
:09:22. > :09:26.International Finance, was in charge for negotiating for the
:09:26. > :09:31.banks the terms of the Greek bailout deal, including the 50%
:09:31. > :09:34.haircut for private investors in Greek Government debt. Does this
:09:34. > :09:40.prospect of a Greek referendum mean that as far as you are concerned
:09:40. > :09:44.the deal you negotiated in good faith could be dead? No, not to us
:09:44. > :09:48.at all. We remain focused, despite the political uncertainties
:09:48. > :09:54.swirling around Greece and Europe. We remain focused on developing and
:09:54. > :09:56.agreeing the details of the agreement. And bringing forward the
:09:56. > :10:01.implementation as soon as practicable. And delivering to
:10:01. > :10:04.Greece and the Greek people the benefits of this deal. But, presume
:10:04. > :10:10.below you had no idea this was going to happen, it must have come
:10:10. > :10:13.as quite a shock? It certainly was a surprise. But we live in
:10:13. > :10:18.uncertain times, and every day in dealing with the Greek deal it is a
:10:18. > :10:21.bit like getting on the Coney Island rollercoaster, you take some
:10:21. > :10:25.sharp turns, they are unexpected and it rattles you a bit, then you
:10:25. > :10:30.settle down and move forward. That is what we tried to do in the
:10:30. > :10:33.course of the last 36 hours or so. We remain focused on the deal. We
:10:33. > :10:38.are engaged with technical discussions with partners in Greece
:10:38. > :10:41.and Europe on how the deal may be fleshed out. We look forward to
:10:41. > :10:46.doing that. This is an historic opportunity for Greece to put aside
:10:46. > :10:51.a substantial burden of debt, which has hung over them throughout this
:10:51. > :10:54.last two years of adjustment. And with that cloud of debt
:10:54. > :10:58.substantially removed, we think that the burden on Greece will be
:10:58. > :11:05.lightened, the hardships associated with reform will be reduced, the
:11:05. > :11:08.path of reform will be shortened and the opportunities to reap the
:11:08. > :11:12.benefits of this entire difficult process will be greater than in the
:11:13. > :11:17.past. That is why I remain focused, as do my investor base, in moving
:11:17. > :11:20.forward with this deal. That may all be true but the politics of it
:11:20. > :11:24.are that the Greek people are being asked to vote on something that
:11:24. > :11:28.could mean years of shrinking living standards. That produces
:11:28. > :11:32.real uncertainty for the people you represent. We don't even know if
:11:32. > :11:37.the referendum will be held in January. You could have month of
:11:37. > :11:42.uncertainty, which presumably nobody you represent wants? You are
:11:42. > :11:45.right, but it is very important for the Greek people to understand and
:11:45. > :11:48.to realise what are the real choices before them. Of course we
:11:48. > :11:54.totally respect the leadership of the Greek Government in its
:11:54. > :12:03.decision to move forward with a referendum. However, as we see it,
:12:03. > :12:06.quite frankly, this historic relief of debt, which will create a huge
:12:06. > :12:14.lessening in the burden, eliminating debt that is currently
:12:14. > :12:18.equal to 45% of Greece's GDP. And restructuring 45% of the remaining
:12:18. > :12:22.debt. Will create a tremendous opportunity for Greece, it seems to
:12:22. > :12:25.me the choices are quite clear. On the one hand they follow through
:12:25. > :12:29.with the agreement, they seize the opportunity to reap the benefits of
:12:29. > :12:35.their hard work, and they move out of austerity, into growth and
:12:35. > :12:38.investment and job creation, within a matter of a few years the
:12:38. > :12:42.alternative path to me is one not seriously contemplated, because it
:12:42. > :12:48.is a path of isolation, and a path, I'm afraid, a contracting economy,
:12:48. > :12:52.for a long, long time. It may not be visible, but it is
:12:52. > :12:56.possible. It may be that investors round the world looking at Greece
:12:57. > :12:59.and Italy might conclude that the bond market itself could be wrecked
:12:59. > :13:06.because debts of these big countries could be virtually
:13:06. > :13:10.unsurable in the future? I think - Uninsurable in the future? I think
:13:10. > :13:12.what is happening in Greece is very serious and we should take it very
:13:12. > :13:17.seriously. However I think the situation in Spain and other
:13:17. > :13:21.countries is very different. The plan outlined in Brussels last week
:13:21. > :13:26.to create firewalls and underpin the sovereign efforts in other
:13:26. > :13:30.countries, such as Italy, is a good plan. It also needs to be fleshed
:13:30. > :13:34.out. I think European leadership is in the process. Although it might
:13:34. > :13:37.not seem that way right now, beginning to get ahead of the
:13:37. > :13:42.sovereign debt problem. I think if the real choices are outlined for
:13:42. > :13:48.the grok people, the choice between a painful - Greek people, the
:13:48. > :13:51.choice between a painful but some what shortened period of austerity,
:13:51. > :13:56.bringing new opportunities for investment and job growth, is
:13:56. > :13:59.outlined in contrast to a choice of a much longer period of austerity,
:13:59. > :14:05.and isolation in the markets, that the Greek people will make the
:14:05. > :14:09.right choice. We bring in a local MP in Greece.
:14:09. > :14:16.Do you think that Greek people will agree with that analysis in the end,
:14:16. > :14:26.and say this is the least worst option, it is good for us? I think
:14:26. > :14:32.that the Greek people are full of anger. We are hearing words, words,
:14:32. > :14:40.words. I believe I heard from Mr Dallara and the Greek economy is
:14:40. > :14:46.frozen, the people are without jobs. The best of our young people are
:14:46. > :14:51.leaving for Canada and Australia. We are a modern colony in Europe.
:14:51. > :15:01.It was no national independence, and our Prime Minister is not Mr
:15:01. > :15:02.
:15:02. > :15:08.Papandreou, our real Prime Minister is Mrs M - Mrs Merkel, she decides
:15:08. > :15:12.what road Greece will follow. Something must change. I think that
:15:12. > :15:22.for the first time after all these big demonstrations of the people,
:15:22. > :15:26.there is hope, hope that we are near the beginning of the end of
:15:26. > :15:29.this very bad era for Greece. you think Mr Alavanos that this is
:15:29. > :15:38.the end for the Papandreou Government, will he survive the
:15:38. > :15:45.week, do you think? Yes, I think yes. I think yes because you know
:15:45. > :15:51.his party is totally reconstructed. There are objections inside the
:15:51. > :16:00.cabinet this time. Until ten minutes before the cabinet had a
:16:00. > :16:05.meeting, a member left his party today, the people are totally angry
:16:05. > :16:09.with this party. I think it is a problem of timing. After two hours,
:16:09. > :16:19.after four hours, after one day, after three days, I think Mr
:16:19. > :16:22.
:16:22. > :16:27.Papandreou will show that Mr Sarkozy and Mrs Merkel that it's
:16:27. > :16:32.finished. Is this the beginning or end of the eurozone? If we end up
:16:32. > :16:36.with the Greeks voting no we will see the beginning of the end of the
:16:36. > :16:41.Euro-project. It will spread to the other countries as well. We may not
:16:41. > :16:45.get to the point. The question of it may be phrased in such way that
:16:45. > :16:49.in fact the decision may be between asking the Greeks if you want to
:16:49. > :16:55.leave the euro, and maybe the EU, with the implications that will
:16:55. > :17:00.have, or do you want something with a hope for future but costs. We are
:17:00. > :17:04.working hard to ensure that leads you to faster growth in the
:17:04. > :17:09.foreseeable future. Do you think Mrs Merkel, perhaps the Prime
:17:09. > :17:13.Minister of Greece, from what we have been hearing, do you think she
:17:13. > :17:16.has miscalculated and Mr Sarkozy has miscalculated, they have got
:17:16. > :17:21.this wrong? What they have got wrong is waiting so long to get a
:17:21. > :17:28.solution. If we had some answers to the Greek problems six month or a
:17:28. > :17:31.year ago things would have been different. The contagion wouldn't
:17:31. > :17:36.have spread to other countries. That was a mistake, they realised
:17:36. > :17:40.they then had to act and they did. It was absolutely right in terms of
:17:41. > :17:44.the package coming forward. We may see in the future that the 50%
:17:44. > :17:50.haircut is not enough, and there may be more need. I was hoping
:17:50. > :17:54.there would be a little bit of time after the last tranche of the eight
:17:54. > :17:59.billion was paid, to think again about exactly what Greece needed to
:17:59. > :18:03.do to get out of its problems, which are basically low growth, and
:18:03. > :18:09.contracting GDP for a number years, which the population doesn't like.
:18:09. > :18:17.A word from our other two guests, Alekos Alavanos, do you worry there
:18:17. > :18:22.will be a military coup in Greece? I hope not. Of course the situation
:18:22. > :18:29.in Greece is very troubled, but there is a hopeful element for
:18:29. > :18:33.Greece, and for Europe. That the people are people, that they are a
:18:33. > :18:43.political subject who have the demonstrations of a million people
:18:43. > :18:44.
:18:44. > :18:48.for some days. So I think we have a road to democracy not a fear for a
:18:48. > :18:51.coup d'etat. Do you think having accepted the 50% haircut, what
:18:51. > :18:56.remains of the money of the people you represent is safe. In other
:18:56. > :19:00.words it all sounds pretty gloomy? Well, I think we have confidence
:19:00. > :19:05.thra this deal is the right deal, - that this deal is the right deal,
:19:05. > :19:08.it is balanced deal. It is an historically substantial deal in
:19:08. > :19:14.terms of sovereign debt restructuring. It is very important,
:19:14. > :19:20.if I may add, we can all sense the despair and fatigue around Greece
:19:20. > :19:26.today. I lived there two years as a young novel officer, I have many
:19:26. > :19:30.friends in Greece - Navy officer, I have many frepbz in Greece. What is
:19:30. > :19:36.important to articulate is what happened in Greece last week was
:19:36. > :19:39.designed to alleviate a large part of the burden on the people. The
:19:40. > :19:44.pace of austerity and reform over the last 18 months was too
:19:44. > :19:48.aggressive, too demanding and too challenging for many people. We
:19:48. > :19:52.need a more moderated path of adjustment delivering benefits for
:19:53. > :19:57.Greece. Let's return to Paul in Cannes, I
:19:57. > :20:02.think you have some news for us from the Greek cabinet meeting?
:20:02. > :20:10.we are getting out of Athens, the line that the Greek cabinet has
:20:10. > :20:14.been told by the Prime Minister that this market turmoil will be
:20:14. > :20:19.short lived. He has also said, he has stuck to his guns on the
:20:19. > :20:26.referendum, he said if we have a snap election that would lead to
:20:26. > :20:31.dae fault. On that cheery note - a default. On that cheery note we
:20:31. > :20:35.turn to Italy. My colleague has been in Italy for the past few days
:20:35. > :20:42.assessing the mood there. As he has found in Milan, there is Euro-
:20:42. > :20:49.sceptic even there, and quite a lot of people very resist sent to
:20:49. > :20:56.accepting the de- resistent to the degree of austerity they want to
:20:56. > :21:02.impose. His name is Ambrose, he is 672 years old. But Milan's patron
:21:02. > :21:08.saint, isn't allowed to rest in peace. The cult of the Roman
:21:08. > :21:13.governor turned bishop, is being offered up as a sacrifice to help
:21:13. > :21:17.preserve the security and stability of the eurozone. The people here
:21:17. > :21:22.have always celebrated St Ambrose. But now under pressure from the
:21:22. > :21:26.European Central Bank to impose austerity, the Italian Government
:21:26. > :21:28.has proposed turning local saints' festivals into ordinary working
:21:28. > :21:34.days. That is causing quite a row here.
:21:34. > :21:42.The need for urgent reform in Italy is pretty clear. Its economy is
:21:42. > :21:46.expected to contract next year by 0.2%. Its public debt is 1.trillion
:21:46. > :21:54.euros. Its borrowing costs rose today to 6.3%. Widely regarded as
:21:54. > :22:02.unsustain pbl. Durb unsustainable. The church
:22:02. > :22:05.can't see how that effects Ambrose. TRANSLATION: The Italians are hard-
:22:06. > :22:09.working people, I don't think abolishing this will solve the
:22:09. > :22:14.country's economic problems. Yes, you have to work, but you have to
:22:15. > :22:18.celebrate too. The battle over St Ambrose's day and hundreds of other
:22:18. > :22:22.local holidays across Italy, is part of the soul searching provoked
:22:22. > :22:28.by the country's economic crisis. A country that at times over the
:22:28. > :22:35.century has led Europe, not only in faith and art but also in banking,
:22:35. > :22:39.in summers and in manufacturing skills s suddenly being told by
:22:39. > :22:44.northern neighbour, to put its house in order. Being compared to
:22:44. > :22:49.Greece, a much smaller state with a smaller culture. How much that
:22:49. > :22:54.rankles, and it does, many Italians of various political complexions
:22:54. > :22:58.acknowledge that their country has some how lost its way.
:22:58. > :23:04.Jr Nobody is sure who can set - and nobody is sure who can set it whack
:23:04. > :23:08.on the right track. Here in Milan I'm meeting one of the few figures
:23:08. > :23:14.that everyone respects. He's a businessman, not a politician. In
:23:14. > :23:19.charge of a Milanise icon, more famous even than Ambrose, Pirelli
:23:19. > :23:24.tyres. A man with no time to be sentimental of the sairpbts.
:23:24. > :23:30.think it is important that factories they have to stay open, 3
:23:30. > :23:35.- saipbts. I think it is important that the factories stay open 365
:23:35. > :23:39.days a week. It is a place of precision, hundreds of laser
:23:40. > :23:44.cuttings, for each pattern for everyone that is eventually
:23:44. > :23:51.marketing. Testing each proto-type with an exacting standard that
:23:51. > :23:56.shows Germans have little to teach Italians. That is how we show being
:23:56. > :24:02.Italian and our own creativeness. The main problem most of the
:24:02. > :24:07.production is moving abroad, only 550 people left are based in
:24:07. > :24:12.ittally. 1234 - Italy. That is not how it
:24:12. > :24:16.was in the post-war boom, when Pirelli motored ahead along with
:24:16. > :24:24.the rest of the economy. The economic declined since. It is due
:24:24. > :24:28.part low to global trends, but also a lack of leadership. In the 1950s,
:24:28. > :24:33.the ruling class were white people that suffered because of the war
:24:33. > :24:39.and the dictatorship. They were well aware of the risks and the
:24:39. > :24:45.opportunities they were facing. And the profit of it. What is the
:24:45. > :24:50.ruling class today, what is wrong with them? It is much more
:24:50. > :24:53.complicated today, there are too many people at any level. The
:24:53. > :25:01.institutional system is creating complexity instead of solving
:25:01. > :25:06.problems. The number of laws we have in our country, far than in
:25:06. > :25:13.any other European country. Italy's Labour laws are not complex or
:25:13. > :25:18.rigid enough to prevent 325 workers at this electronics plant in Milan
:25:18. > :25:26.from losing their jobs next month, as production goes oversea. Inside
:25:26. > :25:31.the protest tent they are contemplating a way of life - - the
:25:31. > :25:36.tent they are contemplating a way of life. Tran When - TRANSLATION:
:25:36. > :25:42.You came here knowing it was a job for life. Lots of older people only
:25:42. > :25:46.came to collect their pension. It was like working for the state.
:25:46. > :25:56.With anti-pasta served on the picket line, you might think life
:25:56. > :25:58.
:25:58. > :26:01.is too comfortable for protestors. There is the 17-year-old son of one
:26:01. > :26:09.of the workers, he fears there is no money for him to go to
:26:09. > :26:12.university if his mother loses her job.
:26:12. > :26:18.Berlusconi - TRANSLATION: Berlusconi don't make anything easy
:26:18. > :26:25.for anybody. If there are 35-year- olds and 45-year-olds not finding
:26:25. > :26:28.work in Italy, how are young people going to find themselves a job.
:26:28. > :26:38.real reason the factory is closing, the union says, is there is no
:26:38. > :26:44.market in Italy for the temly comcomponents it makes. - telecom
:26:44. > :26:48.components it makes. Italy had this many broadband lines, France with a
:26:48. > :26:52.population only slightly larger had more than 20 million. For many
:26:52. > :26:55.Italians that is part of a wider failure of leadership. The
:26:55. > :26:58.country's President hinted today that he was considering the
:26:58. > :27:03.possibility of a new Government. Acknowledging the growing demand in
:27:03. > :27:08.society for rulers who will take risks.
:27:08. > :27:17.1234 but in Milan, heaven for bid, they don't want to take risks with
:27:17. > :27:23.Ambrose. TRANSLATION: Italian growth won't
:27:23. > :27:30.be achieved by taking away a bank holiday. Growth requires reform of
:27:30. > :27:34.work legislation, and the introduction of interance tax.
:27:34. > :27:39.nobody will expect those in Milan to accept changes in the calendar,
:27:39. > :27:44.what is the hope they will accept big ones in their lives. Those
:27:44. > :27:50.Italians, who want the best, who will lead them? If you see that
:27:50. > :28:00.politician, please tell me. In Ambrose's time, the 4th century,
:28:00. > :28:00.
:28:00. > :28:07.it was easier, a man who combined intellectual prowess w industryous
:28:07. > :28:14.and religion, he became bishop by popular axe clammation. There was a
:28:14. > :28:18.bit of good news today, or less bad news in austerity speak. The
:28:18. > :28:22.British economy grew by half paerz in the last quarter, better than
:28:22. > :28:26.expect - half a per cent, in the last quarter, better than expected.
:28:26. > :28:32.On top of that, one survey claims claims manufacturing fell into
:28:32. > :28:35.decline last month, suggesting the north of England in particular is
:28:35. > :28:40.not benefiting from even slim growth.
:28:40. > :28:44.We have been in the northest auto. This encampment in Newcastle
:28:44. > :28:51.tonight is not the scale of the one in London, they are mobilising
:28:52. > :28:55.support for a Jarrow March, which will reach the cap national next
:28:55. > :29:00.week. Lizzie thinks these growth figures
:29:00. > :29:03.as justifying her fears for the future. The fact of the last
:29:03. > :29:08.quarter with a drop because of the royal wedding. No wonder there will
:29:08. > :29:17.be growth after that happening. are not convinced it is a positive
:29:17. > :29:21.sign? Not in the slightest. It was 75 years ago this week that the
:29:21. > :29:24.foot-sore jobless men of Jarrow reached their destination. In the
:29:24. > :29:28.parts of north-east England struggling the most nowadays,
:29:28. > :29:32.unemployment is nothing like the 70% it was then. Even in the 190s,
:29:32. > :29:36.some parts of the country recovered much sooner than others, the north-
:29:36. > :29:41.east was not among them. I have come to a town not so very far from
:29:41. > :29:45.the route that the Jarrow Marchers would have taken 75 years ago, to
:29:45. > :29:51.see how the growth figures really feel. This is Middlesborough who
:29:51. > :29:56.built its wealth on steel, something commemorated in the giant
:29:56. > :30:01.sculpture behind me. Middlesborough likes to make bold statement about
:30:01. > :30:05.its future, how does that future look now. Not just as a result of
:30:05. > :30:11.today's sluggish figures, but also the cuts to the public sector,
:30:11. > :30:16.which represents about 60% of the economy in the north-east.
:30:16. > :30:20.We have a lot of stuff in here. But this year I think we have bought
:30:21. > :30:24.about half as much as what we normally buy.
:30:24. > :30:28.You would think as winter looms, insulation would be in demand. But
:30:28. > :30:32.builders aren't building, the growth figures show construction
:30:32. > :30:36.contracting by 0.6%. So Ray Ingledew's company is feeling the
:30:36. > :30:42.chill. What's been happening for you, you
:30:42. > :30:48.have been in business for 35 years? Earlier on in the year we had six
:30:48. > :30:54.vans on the road, eight vans last year. Have you had to pay people
:30:54. > :31:00.off? Yeah, we have put our labour in half this year, and you have
:31:00. > :31:04.lost good men who you won't get back again. You are a local man,
:31:04. > :31:07.what would make Middlesborough grow? It is a difficult one,
:31:07. > :31:14.certainly noing we are helping ourselves at the moment saying cut
:31:14. > :31:18.the spending. Cut the spending down stops people from working, paying
:31:18. > :31:23.any tax, they are not spending any money in the local shops or
:31:23. > :31:26.anything. Gladstone praised industrial
:31:26. > :31:32.Middlesborough as an infant Hercules, its more mature years see
:31:32. > :31:37.a flourishing of buildings. But the flow of public money is stopping,
:31:37. > :31:42.and the town will have to get used to it. That is according to the
:31:42. > :31:47.mayor. We have to save �450 million in the next two years, the
:31:47. > :31:55.Government have to deal with the deficit and the growth at the same
:31:55. > :32:01.time. That is the prerequisite to dealing with the deficit. When
:32:01. > :32:06.people don't have jobs they have not got spending power and won't
:32:06. > :32:11.help the economy. Do you think some regions are suffering less than the
:32:11. > :32:15.north-east of England? We feel in Middlesborough that we have had a
:32:15. > :32:18.raw deal. But at the end of the day. There is an awful lot of local
:32:18. > :32:21.authorities across the country that the Government have to deal with. I
:32:21. > :32:26.have had the debate with them in relation to this, I have repeated
:32:26. > :32:31.what I said, we are where we are, we are moving forward now. What we
:32:31. > :32:36.have to do as a town and nation, we have to actually believe in
:32:36. > :32:40.ourselves. And not be paralysed. 1234 This machine shows some
:32:40. > :32:44.businesses are taking the hint. Manufacturing is one sector that
:32:44. > :32:49.boosted today's third quarter significants. BMM Heaters invested
:32:49. > :32:53.thousand in a precision cutting machine that eliminates waste. It
:32:53. > :32:58.has had to look outside of the north-east. All our engineers,
:32:58. > :33:02.every week they are in Wales, London, Scotland, they are used to
:33:02. > :33:06.working away, we are beginning the work business at the moment.
:33:06. > :33:09.How much support do you think you have had as a business? Really we
:33:09. > :33:19.have been on our own over the last few years. We have made things
:33:19. > :33:21.
:33:21. > :33:23.happen. We have had to get on and make the right decisions moving
:33:23. > :33:28.forward. I don't think we have had any support from the Government or
:33:28. > :33:35.anything like that, really. Helping us out financially. We have just
:33:35. > :33:39.had to make things happen ourselves, really.
:33:39. > :33:42.Joining me now is the Treasury minister now, David Gauke. You will
:33:42. > :33:45.be pleased there is some growth in the economy. You must be
:33:45. > :33:49.disappointed that the plans to rebalance in favour of
:33:49. > :33:53.manufacturing aren't working? you are right we are pleased the
:33:53. > :33:57.figures today show growth in the economy of 0.5% over the last
:33:57. > :34:02.quarter. The point about manufacturing, if you look over the
:34:02. > :34:07.last 12 months or so, manufacturing has grown by 2%. That compares to
:34:07. > :34:12.services growing by 1.2%. Actually I'm not sure I agree with that.
:34:12. > :34:15.There are obviously, always conflicting signals at various
:34:15. > :34:19.times. There is some indication that manufacturing is doing. There
:34:19. > :34:23.is not a big house in favour of manufacturing as opposed to
:34:23. > :34:26.services? You have to look at the context. Over the last few years
:34:26. > :34:29.over the previous Government, manufacturing as a proportion
:34:29. > :34:33.portion of the economy almost halved. And actually what we are
:34:33. > :34:37.seeing is manufacturing growing more quickly than services over the
:34:37. > :34:41.last 12 months. There are some encouraging signs, we want to do
:34:41. > :34:46.more, obviously. What do you say to the people in the film, we heard a
:34:46. > :34:51.businessman, we heard the Mayor of Middlesborough saying it is the
:34:51. > :34:56.wrong time to cut spending, and if you do cut there is no spending,
:34:56. > :35:00.and the economy will shrink in their area. There is a north-south
:35:00. > :35:04.divide there. If we don't have a credible plan to get the deficit
:35:04. > :35:08.down, we will see our credit rating under risk, and market interest
:35:08. > :35:12.rates increasing, that will choke off finance for businesses, it will
:35:12. > :35:15.make it more expensive for mortgage holders. It will have a damaging
:35:15. > :35:19.effect on the economy across the board.
:35:19. > :35:23.It was having more damage in the north where they are more reliant
:35:23. > :35:29.on the manufacturing jobs and theing sector is rather weak. There
:35:29. > :35:33.are a lot of things we are doing, enterprise zones, a number in the
:35:33. > :35:37.north-east of England, the Regional Growth Fun, and lots of
:35:37. > :35:40.announcements about the funding with that. That is in the north of
:35:40. > :35:44.England. Improving the infrastructure, we are spending
:35:44. > :35:53.more than the previous Government. Most people say you don't get it,
:35:54. > :36:01.your centre of gravity is in the south of London rather than the
:36:01. > :36:06.east. Danny Alexander represents people in the islands of Scotland.
:36:06. > :36:12.We are a gofment for the whole country. And we - government for
:36:12. > :36:17.the whole country, we need to take the - we are taking steps, the
:36:17. > :36:21.Regional Growth Fun, enterprise zones, infrastructure investments.
:36:22. > :36:28.That has produced a slower recovery than the great depression.
:36:28. > :36:31.reason why the economy is slow, one we inherited a lot of debts. It is
:36:31. > :36:36.difficult after a financial crisis everyone accepts recoveries are
:36:36. > :36:38.slower. We have the eurozone crisis damaging confidence. Is that
:36:38. > :36:42.worrying, what we are covering tonight. What is happening in
:36:42. > :36:46.Greece, the fact of the referendum could blow everything off course?
:36:46. > :36:49.There is no doubt that confidence has been hit in recent months in
:36:49. > :36:59.the UK because of concerns about what is going on within the Euro-
:36:59. > :37:01.
:37:01. > :37:06.zon. Glrb eurozone. It is upsetting to see what we are seeing. It is up
:37:06. > :37:11.to the eurozone to take bold decisive measures to deal with
:37:11. > :37:15.their areas. In the same way this Government has to deal decisively
:37:15. > :37:18.with the big issue we face, which is a big deficit. Gang violence
:37:18. > :37:22.didn't cause the summer riots in England, but it was a factor.
:37:22. > :37:26.According to the Home Secretary. She announced new measures to deal
:37:26. > :37:30.with it. It includes earlier intervention to turn lives around,
:37:30. > :37:35.and tighter firearms laws. But the police in the Met have been using a
:37:35. > :37:41.tactic of their own, the law of joint enterprise. It allows people
:37:41. > :37:48.to be convicted of serious offences even if they took no direct part in
:37:48. > :37:56.a crime. Campaigners say it has caused criminal justice cases and.
:37:56. > :38:01.Let's look at whether the law is being abused or abused.
:38:01. > :38:07.Like summer itself, the violence of August was over very quickly in its
:38:07. > :38:11.wake is a singering bad feeling. Anger towards the looters and
:38:11. > :38:20.arsonists responsible for such lawlessness. But also anger from
:38:20. > :38:25.people who feel their grievances are unheard.
:38:25. > :38:32.No-one at this youth centre in London thinks they have answers.
:38:32. > :38:36.But they share a concern about a dusty legal law called "joint
:38:36. > :38:40.enterprise", introduced 300 years ago, which many people feel stirred
:38:40. > :38:46.up the cities. I know some boys hit with the joint enterprise charge,
:38:46. > :38:50.having been in the criminal system at the age of 13-14, coming out at
:38:50. > :38:54.the age of 26, most of their adult life in prison. Coming out I'm not
:38:54. > :38:59.too sure whether they will be able to change things around. That was
:38:59. > :39:05.the alienation you think that we saw during the riots? It was part
:39:05. > :39:08.of t I believe. All around the country, people, some of them very
:39:08. > :39:12.young, are serving lengthy sentences under joint enterprise.
:39:12. > :39:16.It means they can be charged with serious offences like murder. Even
:39:16. > :39:19.if they didn't wield a life or land a punch, I have been told of cases
:39:19. > :39:23.where they weren't even at the scene of the crime. Here in west
:39:23. > :39:28.London people have told me, it is causing huge resentment against the
:39:28. > :39:32.police. But the police say it has led to breakthroughs against gangs
:39:32. > :39:41.and the sort of violence that has marred some of the lives around
:39:41. > :39:45.here. The Metropolitan Police see joint
:39:45. > :39:49.enterprise as a valuable weapon in the fight against knife crime. They
:39:49. > :39:53.are showing this DVD in schools. Warning youngsters about what can
:39:53. > :39:57.happen if they get involved with people who carry out violence. If
:39:57. > :40:07.it is suspected they could have foreseen what happened, they too
:40:07. > :40:10.can be charged with the same offence.
:40:10. > :40:17.What I make no apologies about is how we have used this as a
:40:17. > :40:21.principle to get across what we hope is a positive, constructive,
:40:21. > :40:25.educative message which is about the most important thing we can do
:40:25. > :40:29.in these sad events, which is stop someone from being stabbed or
:40:29. > :40:33.killed. Is there a danger, do you think, that some particular groups
:40:33. > :40:37.of people, particularly young, often black youths, are going to
:40:37. > :40:41.feel unfairly targeted? I can understand that and that has been
:40:41. > :40:46.said to us. We would be foolish not to listen to that. But what, I
:40:46. > :40:52.think in return to that, we would say this, that this is an
:40:52. > :40:57.application of a principle of law which actually is very carefully
:40:57. > :41:03.applied in a very considered and detailed way, and it has a very
:41:03. > :41:08.high evidential test. But it is long been controversial.
:41:08. > :41:12.In one of the most notorious cases of joint enterprise, portrayed in
:41:12. > :41:19.the film Let Him Have It, Derek Bentley, aged 19, was hanged for
:41:20. > :41:23.the murder of a policeman during a robbery. Let him have it Chris.
:41:23. > :41:27.These were the words allegedly spoken by Bentley, which helped
:41:27. > :41:31.convict him of the shooting, eventhough it was carried out by
:41:31. > :41:36.another teenager. Joint enterprise was also used to convict three
:41:36. > :41:42.teenagers of the murder of Gary Newlove, whose savage assault by
:41:42. > :41:47.drunken youths was seen as proof of David Cameron's broken Britain. The
:41:47. > :41:53.coroner found he died from a single kick, but all three are serving
:41:53. > :42:00.life for murder. One of them, Jan Cunliffe, was 15 at time. Mr
:42:00. > :42:03.Newlove's widow says the sentence is justified. If you are saying
:42:03. > :42:13.Jordan Cunliffe didn't kill my husband, but he stood next to the
:42:13. > :42:14.
:42:14. > :42:22.body saying you are doing it and you are guilty. But Jordan
:42:22. > :42:24.Cunliffe's mother says the law is being used to convict those on the
:42:24. > :42:29.periphery. Jordan had an eye condition, it meant he wouldn't
:42:29. > :42:33.have been able to see what was going on and predict there was any
:42:33. > :42:36.violence, therefore he couldn't show withdrawal, and he couldn't
:42:36. > :42:40.prevent it. Janet Cunliffe shows me new medical evidence which she
:42:40. > :42:45.wants to use to appeal against her son's conviction. It is a computer
:42:45. > :42:48.programme which shows the scene of Mr Newlove's murder, and what
:42:48. > :42:52.Jordan would have allegedly have seen because of his failing
:42:52. > :42:56.eyesight. That's the evidence that we want to use to prove that he
:42:56. > :43:01.couldn't possibly have been part of a joint enterprise.
:43:01. > :43:11.As they tackle knife crime, the Metropolitan Police admit they are
:43:11. > :43:11.
:43:12. > :43:18.using joint enterprise more often. But Johann Scarlett, a youth worker
:43:18. > :43:23.from south London, says it is difficult thing. It seems to be
:43:23. > :43:27.easier to put up a case because you have to prove they are intending to
:43:27. > :43:33.do it. It goes against the whole innocent until proven guilty. It is
:43:33. > :43:36.like you are guilty, now prove you are innocent. At a local youth
:43:36. > :43:40.centre I'm introduced to youth workers and advise to they all
:43:40. > :43:46.believe young people living on estates are being criminalised.
:43:46. > :43:50.didn't stab anyone, you didn't know the knife was present, but the
:43:50. > :43:52.person died. And under joint enterprise you have all been
:43:52. > :43:57.convicted, you come out with murder under your name. You are never
:43:57. > :44:00.going to get a job, then what do you do. People have been damaged by
:44:00. > :44:04.the joint enterprise situation, if they weren't involved, the police
:44:04. > :44:09.wouldn't take their side for it. you know people this has happened
:44:09. > :44:14.to? Quite a few people. There are also concerns that the law is being
:44:14. > :44:19.used too selectively against gang violence, when there are other
:44:19. > :44:24.contexts where it could apply. the law of joint enterprise were
:44:24. > :44:27.applied to phone hacking we wouldn't have so much of a concern
:44:27. > :44:33.about getting precise evidence about who has been involved in
:44:33. > :44:35.phone hacking or who has been encouraging phone hacking.
:44:36. > :44:40.problem with investigating joint enterprise is it is very difficult
:44:40. > :44:44.to find out how widely it is being used. We have looked all over the
:44:44. > :44:47.place, the Law Commission, the Crown Prosecution Service, the
:44:47. > :44:51.Ministry of Justice, individual police forces, like the Met, who
:44:51. > :44:54.were looking into the riots, and so one has anything approaching
:44:54. > :45:04.complete figures. That is apart from campaigners, who claim that
:45:04. > :45:14.they are dealing with a surge of miscarriage of justice cases. The
:45:14. > :45:25.
:45:25. > :45:31.group Here says it is fighting 256 Establishing some facts is the
:45:31. > :45:35.first priority of an MPs' inquiry into joint enterprise, which is
:45:35. > :45:39.holding hearings this week. It is a very blunt instrument, it has
:45:39. > :45:43.appalling consequences if innocent people are found guilty under this
:45:43. > :45:47.doctrine. I'm concerned about its use at the moment. I stress it is a
:45:47. > :45:53.personal opinion, the committee has yet to decide on any of it. But we
:45:53. > :45:57.have had a lot of concern from several corners, and to target
:45:57. > :46:02.youngsters is doubly inappropriate. But police are confident the law is
:46:02. > :46:06.helping to keep young people away from trouble, and has even had an
:46:06. > :46:11.impact on levels of knife crime in London. The number of young people
:46:11. > :46:15.being killed in knife attacks is going down in London, you think one
:46:15. > :46:19.reason for that is the use of the joint enterprise law? It is one of
:46:19. > :46:24.many reasons. It is not the silver bullet. I don't think we have ever
:46:24. > :46:29.said this is the measure that is going town lock everything. If it
:46:29. > :46:34.comes across as that, - to unlock everything. If it comes across as
:46:34. > :46:39.that it is wrong. We need a whole series of tactics and programmes
:46:39. > :46:43.and messages that actually say don't get involved in violence.
:46:43. > :46:51.The police say that joint enterprise has at least helped
:46:51. > :46:56.bring down knife crime. Just saying that because you are going to be
:46:56. > :46:59.done for joint enterprise will stop kids carrying knives is a lie. If
:46:59. > :47:04.one of these young boys believed someone had a problem with them,
:47:04. > :47:10.and had a weapon, what are you most likely do. What would normal boys
:47:10. > :47:18.do in the arm yar. Start arming themselves with things. Would they
:47:18. > :47:24.worry about the joint enterprise law. Would they stop? That is the
:47:24. > :47:28.thing to tackle, the need of weapons as protection. The use and
:47:28. > :47:32.possible abuse of joint enterprise is not just being investigated by
:47:32. > :47:38.MPs, potentially more decisive will be a Supreme Court judgment due
:47:38. > :47:48.later this year, about the way joint enterprise is used to take on
:47:48. > :47:58.
:47:58. > :48:02.gangs, and is very much on trial. A strengthening breeze breeze
:48:02. > :48:10.touching gale-force to start the morning. Mist and low cloud across
:48:10. > :48:15.eastern areas, here we will hold on to the driest and brightist
:48:15. > :48:19.conditions. There will be cloud around, and sunshine will be on the
:48:19. > :48:24.hazy side. The breeze strengthening soon, and thicker cloud along the
:48:24. > :48:27.southern counties of England. Increasing light rain or drizzle.
:48:27. > :48:30.Southern and western parts of Wales could see some of that light rain
:48:30. > :48:34.or drizzle during the afternoon. With the south-east breeze, shelter
:48:34. > :48:38.from the hills, the north coast will see bright or sunny spells.
:48:38. > :48:44.Northern Ireland, brightness will be limited to the middle of the day,
:48:44. > :48:49.plenty of cloud and certainly for 3.00pm it turns wetter. Much of
:48:49. > :48:54.Scotland has a dry and bright day after a chilly start, those spells
:48:54. > :48:57.of hazy sunshine. A different story into Thursday. Brighter skies, but
:48:57. > :49:01.you will notice a common theme, not just across the northern half of
:49:01. > :49:06.the country, but further south will be the frequency of showers. The
:49:06. > :49:10.day starts with persistent rain across eastern areas, windy as well.