13/01/2012

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:00:07. > :00:13.France and eight other countries downgraded, the eurozone bailout in

:00:13. > :00:18.peril, is this the end of the Franco German access at the heart

:00:18. > :00:22.of -- axis at the heart of Europe. The world's leading ratings agency

:00:22. > :00:25.says austerity is failing. 20 months on, why can no-one solve the

:00:25. > :00:32.crisis that threatens Europe and the world economy.

:00:32. > :00:37.We speak to the world's largest bond trade year, a G20 adviser, a

:00:37. > :00:43.former British minister and a French economist. As the head of

:00:43. > :00:47.the Arab League warns that Syria is sliding towards civil war, we're in

:00:47. > :00:50.Damascus. We have been told not to travel anywhere outside the city

:00:50. > :01:00.centre, that is because in the suburbs, on previous Fridays, there

:01:00. > :01:03.has been serious trouble. Good evening. You don't have to be

:01:03. > :01:06.superstitious to realise today was a bad one all round for the

:01:06. > :01:13.eurozone. This evening the confirmation of the news the French

:01:13. > :01:16.dreaded, the country would lose its triple-A status with Standard &

:01:16. > :01:21.Poor's. Humiliation on a national level, particularly for paed facing

:01:21. > :01:23.re-election in spring. The move could spell disaster for the entire

:01:23. > :01:28.European bailout package, the European Financial Stability Fund.

:01:28. > :01:32.Spain, Italy and six others were downgraded too, to round things off

:01:32. > :01:35.talks on Greek debt write-offs have stalled. In a moment we will ask

:01:35. > :01:39.the world's largest bond trader what impact this will have on the

:01:39. > :01:44.world economy. We will talk to key figures here in Paris and London.

:01:44. > :01:50.Will tonight's news spell the end of the Merkozy partnership, the

:01:50. > :01:54.axis of European leadership. Germany, Finland, the netherlands

:01:54. > :01:58.and Luxembourg, these are the only countries left in the eurozone,

:01:58. > :02:03.where lending to them is 100% safe. France tonight had to face a

:02:03. > :02:07.humiliating debt downgrade. The French Finance Minister shrugged it

:02:07. > :02:12.off. TRANSLATION: We had warning this

:02:12. > :02:16.was going to happen a month ago. It is not a big surprise.

:02:16. > :02:21.No it is not a catastrophy. It is like asking a pupil, who was always

:02:21. > :02:26.getting 20 out of 20, if getting a 19 out of 20 is a catastrophy. No,

:02:26. > :02:31.of course it isn't. We have still got a great rating. But the

:02:31. > :02:35.implications are huge. The ratings agency S & P, which also downgraded

:02:35. > :02:38.Portugal, Austria and Spain, said the agreement reached on 9th

:02:38. > :02:42.December has not produced a breakthrough of sufficient size and

:02:42. > :02:48.scope to fully address the eurozone's financial problems. And

:02:48. > :02:52.they said, dammingly, a reform process based on a pillar of fiscal

:02:52. > :02:55.austerity alone, risks become self- defeating. In the short-term all

:02:55. > :03:00.this makes this a bit more costly for France to borrow money. But the

:03:00. > :03:04.move now calls into question the viability of the eurozone bailout

:03:04. > :03:09.fund, the called EFSF, that is backed by Government, and if one of

:03:09. > :03:12.them loses debt credibility, so does the fund. I don't think that

:03:12. > :03:19.the ratings agencies are giving us any new information. I think that

:03:19. > :03:23.they are telling us what we already knew. Part of what wr seeing

:03:23. > :03:28.happening is the ratings agencies were really humbled in 200, by the

:03:28. > :03:32.fact that they failed to give people -- 2008, by the fact that

:03:32. > :03:35.they failed to give people an indication beforehand. I wouldn't

:03:35. > :03:40.say they are trigger happeny now, but they are determined not to be

:03:40. > :03:45.caught out again. Meanwhile, in Greece, the eurocrisis took a whole

:03:45. > :03:50.different turn for the worse. Talks broke down between banks and the

:03:50. > :03:56.Greek Government over the supposedly big write-off of half

:03:56. > :04:04.Greek debt. That puts in question the second Greek bailout, worth 130

:04:04. > :04:08.billion euros. As Greek recoveryle stalls and debt spirals, the

:04:08. > :04:12.question over Europe's recovery rises. The question of brinkmanship

:04:12. > :04:19.in Greece is the big financial story today the that is the big

:04:19. > :04:24.risk. So far Greece has gotten away with this slightly artificial

:04:24. > :04:29.voluntary restructuring. It hasn't been all that voluntary. But that

:04:29. > :04:34.has been an important fiction for the markets, because of all sorts

:04:34. > :04:37.of legal covenants around that. If that breaks down, then I think

:04:37. > :04:43.really up fortunately we are going to be in a stage in the European

:04:43. > :04:48.crisis. And while all this happens, Hungary's stand-off with the EU and

:04:48. > :04:55.IMF continues. Hungary's not in the euro, but its collapsing finances

:04:55. > :05:01.means it needs up to $20 billion of loans from the IMF. Exposure to

:05:01. > :05:05.Hungary what prompted S & P to downgrade Austria and Slovakia

:05:05. > :05:09.tonight. Bit by bit the links in the eurocrisis are being forged.

:05:09. > :05:14.Let's pick up with that. One reason this throws into

:05:14. > :05:18.question the whole idea of France and Germany, they lose parity. That

:05:18. > :05:21.was all so central to the two leaders at the top? Deep within the

:05:21. > :05:27.inner circle of Mrs Merkel's Government, what they believe is

:05:27. > :05:30.France and Germany have to be equals at the heart of the Uri

:05:30. > :05:33.europroject. When you hear the French minister saying it is like

:05:33. > :05:39.getting 19 out of 206789 the Germans look at it differently,

:05:39. > :05:41.both in fistle kal terms, who pays to bail out everybody else, and in

:05:41. > :05:44.moral terms, there has to be equalty. You can't have France

:05:44. > :05:49.leaving the solution countries, and becoming one of the problem

:05:49. > :05:53.countries. It is not yet, but this is a first step down that road.

:05:53. > :05:57.There is another political problem, of course, the whole thing rests on

:05:57. > :06:02.Mr Sarkozy getting re-elected. Because his opponent in France

:06:02. > :06:07.against the treaty, that isn't now, we hear, working. Mr Sarkozy now

:06:07. > :06:10.has to go to the polls and say I'm the man who lost our triple-A

:06:10. > :06:14.rating. Not easy to do. We heard one commentator say this

:06:14. > :06:19.is a new stage in the European crisis just when you thought it

:06:19. > :06:24.wasn't going to get any worse. What are the solutions now, are they

:06:24. > :06:29.changing as a consequence of this? It hasn't got worse in a sense

:06:29. > :06:33.tonight, S & P says the policy of pumping money into the system is

:06:33. > :06:38.holding the situation. There is a really interestingp couple of lines

:06:38. > :06:42.in this, where they say you are misdiagnosing the problem, you

:06:42. > :06:47.think it is profligacy on the borders, Greece and Ireland, it is

:06:47. > :06:52.both that and Europe's general lack of competitiveness, its general

:06:52. > :06:55.malaise and problem. They say if you try to solve this with

:06:55. > :07:00.austerity alone, it will not work. It will be a spiral that will

:07:00. > :07:04.simply, the implication is, lead to a whole string of defaults. That

:07:04. > :07:10.sounds a bit like what Ed Balls says in this country, but in the

:07:10. > :07:16.eurozone it is what Barroso has been saying, and Dominic Strauss

:07:16. > :07:19.Khan used to say. You can't cut your way out of the crisis. And for

:07:19. > :07:23.a very neo-liberal American Wall Street company to back that up is

:07:23. > :07:26.quite surprising. Thank you very much.

:07:26. > :07:32.The eurozone crisis threatps the entire world economy, clearly, and

:07:32. > :07:37.to try to see where it might end, I'm joined now from Paris from

:07:37. > :07:41.Professor Christian de Boissieu, an economist, and from California by

:07:41. > :07:46.Mohamed El-Erian, one of the world's biggest bond traders, and

:07:46. > :07:51.here by the former minister, Baroness Vladivostok, thank you

:07:51. > :07:55.very much for joining me. Professor De Boissieu, we heard your Finance

:07:55. > :07:58.Minister say it was not a catastrophy, of course it is not a

:07:58. > :08:03.catastrophy. As Paul was saying, it puts France now in the position of

:08:03. > :08:10.being one of the problem countries, not solution countries. That is

:08:10. > :08:14.bad? It is not a catastrophy, for me it is an event. It it is an

:08:14. > :08:19.event in the sense that it is creating, as you said, a gap, a

:08:19. > :08:25.financial gap between France and Germany, and I think that one

:08:25. > :08:29.purpose of the next summit, at the end of this month, will start to

:08:29. > :08:35.close this gap. I would say at least from the political viewpoint.

:08:35. > :08:40.And we have to deepen the Franco German co-operation, not despite

:08:40. > :08:44.thep gap, but because of the gap. That is interesting. Do you think

:08:44. > :08:49.that kind of co-operation, that parity can exist in the same way we

:08:49. > :08:56.have seen it in the last year or so? You are talking about austerity,

:08:56. > :09:06.you know. Just a word about this, we have to work on the two legs. I

:09:06. > :09:06.

:09:06. > :09:12.remember that one year ago the rating at were asking only for

:09:12. > :09:17.fiscal consolidation, and now, they are right when they ask for the two,

:09:17. > :09:21.fiscal counsel daigs, plus some growth initiative -- consolidation,

:09:21. > :09:26.plus some growth initiative. The same, the next European Summit at

:09:26. > :09:30.the end of January, will have to address the growth, the growth

:09:30. > :09:34.problem for Europe. Very interesting. We will just try to

:09:34. > :09:39.fix that sound problem. Apologies for that there. If I can turn to

:09:39. > :09:46.you, Mohamed El-Erian, is it wrong to take too much from one agency.

:09:46. > :09:52.Will it actually make a difference to how you trade, how you invest?

:09:52. > :09:56.In the short-term it will not. In fact, the markets had priced in a

:09:56. > :10:01.much biger downgrade than what S & P delivered for fraps. In the short

:10:01. > :10:05.run, no, -- France. In the short run, no. In the long run this is

:10:05. > :10:09.really consequential. First, as has been discussed. It creates a wedge

:10:09. > :10:13.at the inner core of the eurozone, that makes solutions much more

:10:13. > :10:19.difficult. Secondly, it undermines pan-European vehicle that is are

:10:19. > :10:23.there to bail out other countries. Thirdly, let's not forget that when

:10:23. > :10:27.you lose your triple-A, you change your investor base, there are fewer

:10:28. > :10:34.people out there, because certain people have a limit of triple-A on

:10:34. > :10:37.where they are willing to invest. In the short run it is not an

:10:37. > :10:44.immediate reaction because the market had priced more, but it is a

:10:44. > :10:50.par dime shift for Europe. leaves -- Pardigm shift. For Europe.

:10:50. > :10:54.It leaves Germany where it didn't want to be, going it alone? That is

:10:54. > :10:58.a very valid point, the fund that is there to bailout European

:10:58. > :11:03.countries has now got fewer triple- A countries backing it. That will

:11:03. > :11:08.make really hard for it to raise money. Literally one major one, it

:11:08. > :11:11.is Germany? Indeed. The question that is now facing Europe is, in

:11:11. > :11:15.the event that Italy and Spain can't access the markets any more,

:11:15. > :11:19.where is the source of liquidity, if it is not this fund, it doesn't

:11:19. > :11:23.want to be Germany, and the European Central Bank says it is

:11:23. > :11:26.constrained and can't do certain things, who going to bail out Italy

:11:26. > :11:32.and Spain. That is the question we are going to face going forward.

:11:32. > :11:37.Are you saying this is the end of the EFSF in its current shape now?

:11:37. > :11:41.To be perfectly Honest, the EFSF has had a limited amount of money,

:11:41. > :11:45.and the situation hasn't particularly changed. The agreement

:11:45. > :11:48.they reached to leverage it four or five times was always rather

:11:48. > :11:52.nonsensical, the situation is actually very similar to where we

:11:52. > :11:57.were before, which is who going to provide the liquidity. Mohamed El-

:11:57. > :12:01.Erian, we were talking about the dual angle of the news today, you

:12:01. > :12:05.were saying that this made it much more difficult for countries to

:12:05. > :12:09.have a concerted project, if you like, to help others. We know that

:12:09. > :12:13.Greek debt talks have now stalled, what's the future there, do you

:12:13. > :12:21.think we're actually going to see that whole debt having to be

:12:21. > :12:25.written off, because basically defaulted on its own? There is no

:12:25. > :12:29.doubt in my mind that Greece will default. By he default I mean that

:12:29. > :12:34.if you are a holder of Greek bonds, the terms of your bonds are change.

:12:34. > :12:39.You will take what's called a haircut. You will have a lower

:12:39. > :12:43.claim on Greece. The question how is this done? There was a hope that

:12:43. > :12:47.you could do this in an orderly fashion, which is is another way of

:12:47. > :12:51.saying you don't trigger legal contracts. What happened today

:12:51. > :12:55.makes that more complicated. But I don't think it is that bad news. I

:12:55. > :12:59.have been stunned as to how tolerant the Greeks have been with

:12:59. > :13:02.their private creditors. Their private creditors were scaring the

:13:02. > :13:07.Greek, and I think it is a good thing, that the Greeks have

:13:07. > :13:10.realised that the balance of power is much more balanced than they had

:13:11. > :13:14.perceived before today. It is quite interesting, Christian de Boissieu,

:13:14. > :13:20.does it mean that France no longer has this moral authority then to

:13:20. > :13:25.turn to other countries and say, you know, you need to cut, you need

:13:25. > :13:31.to rein in, these are the areas that you need to work on? No, this

:13:31. > :13:38.is not the end of France. Let's be cautious about this. May I say it

:13:38. > :13:43.is not either the end of the EFSF, it is going to complicate the

:13:43. > :13:47.working and the cost of the EFSF. Therefore, I want to open for

:13:47. > :13:52.debate about the role of the ECB, because I think that beyond what

:13:52. > :13:54.has been at the sided today by Standard & Poor's, I think that --

:13:54. > :13:59.decided today by Standard & Poor's. I think that the debate about the

:13:59. > :14:02.possibility for the ECB to be a full lender of last resorter for

:14:02. > :14:08.the eurozone will come back. It will come back around the table.

:14:08. > :14:13.is interesting, isn't it, Germany's resisted this, Baroness Vladivostok,

:14:13. > :14:16.it is pretty much Germany on its -- Baroness Vader, it is really much

:14:17. > :14:21.Germany on its own with the fund, really doesn't matter? It does

:14:21. > :14:25.matter, as far as the ECB is concerned, they have constraints on

:14:25. > :14:31.their own institution, they can only buy debt on the secondary

:14:32. > :14:36.market. Today one member of the ECB said they are unhappy at the draft

:14:36. > :14:45.fistle kal pact that has been circulating, saying -- fiscal pact,

:14:45. > :14:49.saying that it has been wartrd down. Something to do with the S & P's

:14:49. > :14:54.downgrading saying austerity is not the only answer. With the ECB

:14:54. > :14:59.intervening it is asking for much tougher austerity. The other

:14:59. > :15:04.complication with the Greek debt that we should be aware of. If the

:15:04. > :15:09.deal becomes coercive not voluntary, it is the ECB, as a significant

:15:09. > :15:12.holder of Greek debt, will have to take a haircut and a loss. This

:15:12. > :15:18.idea that too much store was put on austerity, Christian de Boissieu,

:15:18. > :15:25.and it comes from quite an unusual source. Do you think that Europe

:15:25. > :15:29.will start to re-think the way it has been talking? We will be

:15:29. > :15:34.talking about spending rather than cutting? First, let me say, I don't

:15:34. > :15:40.think this do. Let me first say that there was a word "alone",

:15:40. > :15:44.fiscal austerity "alone", that is because fiscal solvency has a

:15:44. > :15:54.numerateor and denominator. You get into problems because you have too

:15:54. > :15:55.

:15:55. > :16:00.much debt, and also because you have too little growth. Any debt

:16:00. > :16:08.has to deal with the numerator and the deno mam theator. In Greece all

:16:08. > :16:12.the focus has been on the numerator. Two years where the Greeks have

:16:12. > :16:15.consentrated a lot on certain things and given a lot, it is no

:16:15. > :16:20.better than two years ago. The design of the programme has been

:16:20. > :16:25.too tilted towards the fistle kal side. It has to be brought back

:16:25. > :16:29.towards fistle kal and structural reforms to promote economic growth.

:16:29. > :16:33.How much of the euro zone is currently in resection. We won't

:16:33. > :16:37.know for sure, but when you look -- recession, we won't know for sure,

:16:37. > :16:47.but when we look at today and put it into practical terms, do you

:16:47. > :16:51.

:16:51. > :16:55.think most of the eurozone is in recession now. I do, Germany is

:16:55. > :16:58.slowing, but it isn't in recession. Everywhere in the world the head

:16:58. > :17:02.wind will come from Europe in the form of lower growth, and low

:17:02. > :17:05.demand for exports, and more financial disruptions. He yes,

:17:05. > :17:10.unfortunately, most European countries are already in what feels

:17:10. > :17:13.like and what is a recession. Christian de Boissieu, just a very

:17:13. > :17:17.last question, your Finance Minister said before Christmas that,

:17:17. > :17:23.actually, Britain was the one that should be downgraded rather than

:17:23. > :17:29.France, would you go along with that? No, you know, I don't want to

:17:29. > :17:33.come into this debate between Great Britain and France, you know. I'm

:17:33. > :17:39.glad that Great Britain still triple-A, and we will see what is

:17:39. > :17:46.going on. This is not the end of the movie. And to come back to the

:17:46. > :17:52.growth initiative, I think that we have to do something very quickly,

:17:52. > :17:56.most European countries to go out of recession and of the zero growth

:17:56. > :17:58.situation, and to face the challenge of unemployment, which is

:17:58. > :18:04.the main challenge that we have to face today.

:18:04. > :18:08.Thank you very much all of you. In Syria, protests have erupted in

:18:08. > :18:11.several cities and the head of the Arab League says he fears the

:18:11. > :18:17.bloody unrest could degenerate into civil war. Opposition activists

:18:17. > :18:20.have called for mass rallies in support of the Free Syrian Army,

:18:20. > :18:24.defectors seeking to topple the Government. The Arab League sent a

:18:24. > :18:29.mission into the country to see if authorities were complying with a

:18:29. > :18:35.plan to halt the violence. One of the monitors said the league

:18:35. > :18:39.mission has only bought, Assad, the President, more time.

:18:39. > :18:44.Friday morning, the start of what usually is the biggest day of the

:18:44. > :18:47.week for anti-Government protests in Syria. Outside Damascus's most

:18:48. > :18:57.venerable mosque, with Government Goons standing around, all the

:18:58. > :18:59.

:18:59. > :19:04.voices are pro-regime. TRANSLATION: Everyone loves Bashar

:19:04. > :19:08.al-Assad, that is why we go out, in the rain, in the cold, even in snow.

:19:08. > :19:14.Everyone goes to support him. what do they think of all those who

:19:14. > :19:17.say there is no democracy here? They are not protesting about the

:19:17. > :19:22.freedom. They don't want the freedom. What do they want? They

:19:22. > :19:28.want to destroy our city. They say they simply want democracy, they

:19:28. > :19:31.want freedom? No, they are liars. This demonstration, in a tightly

:19:31. > :19:36.controlled environment, is the only one the Government wants us to see

:19:36. > :19:40.today. We have been told we can't travel anywhere outside the city

:19:40. > :19:47.centre, and that's because, in the suburbs, on previous Fridays, there

:19:47. > :19:56.has been serious trouble. Today, all main intersections were

:19:56. > :20:00.guarded by plain clothes security. The pictures posted on YouTube,

:20:00. > :20:07.show, what opposition sources say, was a sizeable anti-regime

:20:07. > :20:17.demonstration, in a suburb today. There was another, according to

:20:17. > :20:22.those sources, in the eastern day of city of Deraa, others show smoke

:20:22. > :20:26.billowing over Homs, scene of some of the Washington Post violence in

:20:26. > :20:29.the ten month uprising. Gunfire can be heard in the streets, and a

:20:29. > :20:34.Government tank was apparently set on fire. Across the country, at

:20:34. > :20:38.least ten people were reported killed in protests.

:20:38. > :20:41.Back in it central Damascus, life appeared to be continuing as normal.

:20:41. > :20:45.But you could feel the tension in the air.

:20:45. > :20:51.None of these people were prepared to talk to us. Afraid of opening

:20:51. > :20:56.their mouths in the presence of our Government minder. This district,

:20:56. > :21:00.Midian, in the heart of Damascus, has seen many anti-Government

:21:01. > :21:05.protests in recent months, many shot dead by Government forces. The

:21:05. > :21:09.regime is finding it harder to keep a grip, even op the capital. The

:21:09. > :21:14.Government says it has already offered citizens enough concessions.

:21:14. > :21:18.We see it like two parties, one part is the legitimate demands of

:21:18. > :21:22.the Syrian people. And the President doing his best with the

:21:22. > :21:25.Government to respond to legislative demands, he has

:21:25. > :21:29.completed many benchmarks and is committed to do more. On the other

:21:29. > :21:33.side there are people who are trying to kidnap the agenda of the

:21:33. > :21:39.reasonable demands of the people, to ride on it and hit Syria. What

:21:39. > :21:47.benchmark has he achieved? First, we abolished the martial law. We

:21:47. > :21:51.have a demonstrations, we are urging the opposition to

:21:51. > :21:55.demonstrate. These demonstrations are being fired on? It depends on

:21:55. > :21:58.the sequences you are watching on YouTube. I don't want to justify

:21:58. > :22:02.violence in any way. There are clear instructions for the security

:22:02. > :22:06.forces not to shoot, just to contaun. Suddenly somebody will be

:22:07. > :22:11.shooting at the soldiers, and they will be defending themselves. Yes,

:22:11. > :22:14.mistakes happened, yes, happened, but what a leader can promise

:22:14. > :22:23.accountability. There is no systematic or clear instruction to

:22:23. > :22:27.do a crackdown. I'm going to ask you one of the few opposition

:22:27. > :22:31.figures not in -- ask one of the few opposition figures not in

:22:31. > :22:35.hiding, about what the Government has saying, he is a moderate and

:22:36. > :22:40.wants talks, the regime has not reached out to him. TRANSLATION:

:22:40. > :22:43.For five months we haven't heard from the Government. They haven't

:22:43. > :22:46.contacted any opposition group. Maybe they are in touch with some

:22:46. > :22:52.political forces that are pro- regime, but the authorities are

:22:52. > :23:01.lying when they say he they want a political solution.

:23:01. > :23:06.Mobbed by reporters, Sudanese monitor, is the man many hope still

:23:06. > :23:09.will engineer a political solution. He heads an Arab League mission

:23:09. > :23:12.supposed to monitor and end violence. Even some of his own

:23:12. > :23:16.monitors have come under attack from Government forces and

:23:16. > :23:22.supporters. How worried are you about the safety of your monitors

:23:22. > :23:27.here? I am not worried about their safety. They are working, and they

:23:27. > :23:32.are doing their job. As we asked. They have been attacked?

:23:32. > :23:37.attacked. There has been an attack on them? Some of the monitors'

:23:37. > :23:42.vehicles tell another story. They have been wrecked by people who

:23:43. > :23:48.certainly appear to support President Assad.

:23:48. > :23:52.As the killing continued else, more apparently fervent supporters of

:23:52. > :23:56.President Assad gathered in a Damascus square today. Many of them

:23:56. > :24:00.are unlikely to care too much whether the monitoring mission

:24:00. > :24:06.succeeds. Syria's becoming ever more polarised. The stalemate here,

:24:06. > :24:09.of more dangerous. I'm joined now from Damascus. We

:24:09. > :24:14.heard you talking there of that need for a political situation.

:24:15. > :24:19.Where do you see this ending? strikes you, Emily, most forcibly,

:24:19. > :24:23.when you come here, that there seems to be almost no meeting point

:24:23. > :24:29.at all between what opponents and supporters of the Government

:24:29. > :24:34.believe, and all the talk by the Government of a foreign conspiracy,

:24:34. > :24:41.against Syria, just seems almost calculated to bring people further

:24:41. > :24:44.and further apart. Certainly, even the opposition agrees, that

:24:44. > :24:49.President Assad has some genuine support, on top of that there are

:24:49. > :24:53.many more people who don't like him, but are certainly afraid of the

:24:53. > :24:56.consequences of his possible fall. In some cases I have been told what

:24:56. > :25:03.that means individual families are being split, and on top of that,

:25:03. > :25:07.you have certainly the threat, now, of an ip creased militarisation of

:25:07. > :25:12.the conflict -- increased militarisation of conflict on both

:25:12. > :25:15.sides. You have he defectors carrying arms, and opponents

:25:15. > :25:18.carrying arms, as they say, to defend themselves. When you talk

:25:18. > :25:23.about individual families being split, sound like they are already

:25:23. > :25:28.on the road to civil war, now? think many people think they are.

:25:28. > :25:34.Really, a great deal depends now on the report of the monitors to the

:25:34. > :25:38.Arab League, that are come at the end of next week. If that is

:25:38. > :25:43.critical of the Syrian Government, that possibly opens the door for

:25:43. > :25:48.more pressure on the country from the UN. Although I think everyone

:25:48. > :25:53.agrees that intervention here, of the kind of intervention we saw in

:25:53. > :25:57.Libya completely unthinkable for diplomatic and geographical reasons.

:25:57. > :26:00.On the other happened, if the report favourable towards the

:26:00. > :26:07.Syrian Government, you think there is not much sign anything changing

:26:07. > :26:12.at all. Joining me now, the former US

:26:12. > :26:22.representative to NATO, and a founderer member of the Syrian

:26:22. > :26:22.

:26:22. > :26:28.opposition group, Building The Syrian State, and astro fist sis.

:26:28. > :26:32.-- atrophysicist. Do you feel civil war is inevitable? I think we may

:26:32. > :26:34.have passed a tipping point, two reasons, one is the degree which

:26:34. > :26:38.people are defecting from the military to join in armed

:26:38. > :26:43.opposition to the Government. And secondly, the statements and

:26:43. > :26:48.actions by Assad himself, both saying that he is accusing the

:26:48. > :26:52.uprisers of being forp of-inspired, and willing to use force of his own

:26:52. > :26:55.regime against that really without end. I think that is a really

:26:55. > :26:59.volatile situation that may have passed a point of no return. Do you

:26:59. > :27:04.think that what the Arab League hasp done, since December, has

:27:04. > :27:08.helped or hindered? I think it was a necessary thing to go through. It

:27:08. > :27:12.was important for the Arab League to raise the issues with Syria, to

:27:12. > :27:15.give him a chance to change course. To put monitors in there. As we

:27:15. > :27:19.have seen the monitors have been attacked, more people have been

:27:19. > :27:24.killed each day, since the monitors have been there, than even before

:27:24. > :27:28.that. We have to recognise that Assad is digging in, with a

:27:28. > :27:32.monopoly of force in the military and Intelligence Services and

:27:32. > :27:35.others, we will see increased bloodshed as he tries to hang on in

:27:35. > :27:41.this situation. There cannot be a political solution to this, it has

:27:41. > :27:45.gone too far? We have to force for one, there is no choice in Syria.

:27:45. > :27:50.As said, the Syrian war already -- the civil war has already started

:27:50. > :27:53.in areas around Homs, and the countryside. If unrest spreads in

:27:53. > :27:57.Syria, it will go outside the borders, reaching Lebanon and Iraq

:27:57. > :28:02.and the other countries. We can't afford to have it. Do you think he

:28:02. > :28:05.can be encouraged to leave, still? He has to be forced. If the

:28:05. > :28:08.international community push for a political solution and the

:28:08. > :28:11.opposition as well, and the Arab League, if everybody pushes for

:28:11. > :28:16.that solution, eventually we will reach it. We have to reach the

:28:16. > :28:22.condition where we reach a peaceful, the regime accepts a peaceful

:28:22. > :28:26.transition plan, there is no other choice, we can't push for force or

:28:26. > :28:31.foreign interveings. You talk the Arab League, wider, you will not

:28:31. > :28:35.get UN countries and China and Russia to agree to something like

:28:35. > :28:39.that? They won't agree to a Libyan- like situation, but a more peaceful

:28:39. > :28:44.transition plan. You need to put forward something these countries

:28:44. > :28:48.will accept. Do you think that will happen? No, it would be wonderful

:28:48. > :28:52.if this did, that would be the best outcome, but I don't think it will.

:28:52. > :28:56.Assad has made his stand that he will remain in power by force. You

:28:56. > :28:59.will have countries such as Russia and Iran that will continue to back

:28:59. > :29:03.him. The population that is suffering these attacks at the

:29:03. > :29:07.hands of the regime, will continue to suffer them, unless he is forced

:29:07. > :29:11.to go. Are you advocating what? is a very tough question, it is not

:29:11. > :29:16.simple, as your reporter said, there are lots of divisions within

:29:16. > :29:20.Syria, there are legitimate supporters for the regime, but

:29:20. > :29:23.there is also a lot of fear. There is an idea kicked around, I'm

:29:23. > :29:27.sympathetic to it, and I have seen it in other places where it is

:29:27. > :29:30.successful, the idea of a safe zone. You impose a zone where people can

:29:30. > :29:36.live without fear of attack, where you prevent aircraft or regime

:29:36. > :29:41.forces from getting there, that gives some space for humanitarian

:29:41. > :29:44.assistance and co-ordination with some time. It would never work, the

:29:44. > :29:50.area in north of Syria you are talking about, it is already not

:29:50. > :29:56.safe. The way to impose is by force, that will be more unsafe. What

:29:56. > :30:01.about the Syrians killed in the basements of the intelligence

:30:01. > :30:07.quarters in Homs, or hundreds of kilometres away, how will they be

:30:07. > :30:12.safe because of the area. How will those civilians be protected by an

:30:12. > :30:16.area in the north of Syria. Unless you push for a Libyan of-like

:30:16. > :30:21.scenario and push for civil war. Nobody is suggesting that? I would

:30:21. > :30:25.point to examples in Croatia, where the UN created safe zones to

:30:25. > :30:28.protect minority populations. Before it is too late? In the

:30:28. > :30:32.Kurdish region of Iraq where we had a safe zone in Iraq, that protected

:30:32. > :30:35.thousands of Kurds for a very long time. What I'm suggesting that

:30:35. > :30:38.there is a monopoly of force in the hands of the Government, they are

:30:38. > :30:42.determined to use it. In that situation, if you are going to

:30:42. > :30:46.bring about a change, you have to help the people push back on that.

:30:46. > :30:49.Thank you both very much indeed. We have lots of lovely newspapers

:30:49. > :30:52.for you, including all the French ones and their take on the

:30:52. > :31:02.downgrade, we have run out of time. Kirsty is here on Monday, good

:31:02. > :31:26.

:31:26. > :31:29.night from all of uts here. It's already cold outside. There

:31:29. > :31:32.will be a widespread frost for Saturday morning, there will be

:31:32. > :31:36.some fog much patches around as well. The fog could take a while to

:31:36. > :31:42.clear, once it has gone it is looking fine and sunny out there.

:31:42. > :31:47.Similar sort of day on Sunday morning. There will be stubborn fog

:31:47. > :31:51.patches, if it lingers tchures are struggle to get much above freezing.

:31:52. > :31:56.Blue skies by the jaefpb. Temperatures reaching 4-6. Mab a

:31:56. > :32:00.touch higher in the south west. -- maybe a touch higher in the south

:32:00. > :32:05.west. A breeze that will drift across Devon and Cornwall. A bit

:32:05. > :32:09.more of a breeze, for most of Wales fine and sunny. Highs of five or

:32:09. > :32:14.six. Same sort of temperatures across noerm. A gentle breeze will

:32:14. > :32:21.bring a little -- Northern Ireland, a gent breeze will bring a little

:32:21. > :32:26.loud. In Scotland a lot of cloud. The top temperatures seven or eight.

:32:26. > :32:29.The weather has settled across the UK because high pressure, the same

:32:29. > :32:32.high pressure system promising fine conditions across France, the low

:32:33. > :32:36.countries and Germany, chilly but sunny.

:32:36. > :32:40.Further south across Europe more distubed, rain in Rome, and