Browse content similar to 21/05/2012. Check below for episodes and series from the same categories and more!
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So, how do we get ourselves out of the doldrums. Today's answer came | :00:12. | :00:17. | |
from a Tory donor, arguingp employers need to be able to hire | :00:17. | :00:20. | |
and fire more easily. Rubbish said the other half of the coalition | :00:20. | :00:24. | |
Government. We don't need to scare the wits out of workers with | :00:24. | :00:27. | |
threats to dismiss them, it is completely the wrong approach. | :00:27. | :00:33. | |
is the ghost of "I'm all right Jack", still at large. Could the | :00:33. | :00:40. | |
economy be energised if we were all less secure. Is he in. I will see | :00:40. | :00:44. | |
your union bogeyman, and raise awe free market economist. | :00:44. | :00:49. | |
Meanwhile, could a bank run in Greece spread to your local branch. | :00:49. | :00:53. | |
How at risk are the major banks of Europe. Later on. TRANSLATION: | :00:54. | :00:58. | |
doctors in Iraq told me, if this operation in Iraq does not work out, | :00:58. | :01:02. | |
I will have to have an amputation. Damaged in Iraq, mended in Jordan, | :01:02. | :01:08. | |
the hospital where they try to put back together the shattered bodies | :01:08. | :01:14. | |
of those who survived the violence. I sleep for one week before the | :01:14. | :01:18. | |
amputation, and one week after amputation. Amputation for any | :01:18. | :01:25. | |
surgeon is failure. We talk to one of the world's greatest sopranos, | :01:25. | :01:35. | |
:01:35. | :01:35. | ||
or rather we listen. # Falling in love with love | :01:35. | :01:44. | |
# Is falling for make-believe. Britain has a deficit crisis, true, | :01:44. | :01:47. | |
the only escape is economic growth, also true enough, but after that, | :01:47. | :01:51. | |
the ideas laid out in a report for the Government, from a big Tory | :01:51. | :01:54. | |
donor get a whole lot more controversial. So controversial, | :01:54. | :01:59. | |
involving getting rid of all sorts of labour rights, that the Business | :01:59. | :02:07. | |
Secretary, Vince "diplomacy Cable, delivered the verdict that they are | :02:07. | :02:11. | |
complete nonsense. Will any of these plans that make hiring and | :02:11. | :02:17. | |
firing easier see the light of day, and or important, should they? | :02:18. | :02:21. | |
Here is Allegra Stratton. You can see why the Prime Minister | :02:21. | :02:27. | |
might spend his down time on this, with one dab of the index finger | :02:27. | :02:31. | |
you can slice through a juicy fruit, three in one go, you get more | :02:31. | :02:37. | |
points. For his party it is not fruit, it is flexible leave, | :02:37. | :02:44. | |
redundancy pay, and the juicyist of all, the ability to hire and fire. | :02:44. | :02:49. | |
Their set text is this. A review by Tory donor and private equity | :02:49. | :02:55. | |
businessman, Adrian Beecroft, it was published this afternoon. It | :02:55. | :03:00. | |
made 17 proposal that is would allow firms to opt out of | :03:00. | :03:10. | |
:03:10. | :03:15. | ||
It was welcomed by those with experience running businesses. | :03:15. | :03:18. | |
labour market has to be flexible. You see that particularly with | :03:18. | :03:22. | |
employment law as well. What we want is a right to hire policy, we | :03:22. | :03:26. | |
want companies to be taking people on, and unafraid of the | :03:26. | :03:29. | |
consequences of taking people on. Small companies need flexibility. | :03:29. | :03:32. | |
But employees needs their rights too. It is a question of getting | :03:32. | :03:35. | |
the balance right. I think the Beecroft Report, published this | :03:35. | :03:38. | |
week, is a very important step on the road to considering all the | :03:38. | :03:43. | |
options. I think we should look at makes it as easy as possible for | :03:44. | :03:47. | |
smaller companies to take on staff. These ideas, however, do not mix | :03:47. | :03:52. | |
well in the coalition furnace, today sparks flew. | :03:52. | :03:54. | |
The Business Secretary, conveniently visiting the | :03:54. | :04:00. | |
sweltering steel works of Redcar, and so atired in flamable kit, went | :04:00. | :04:05. | |
into battle with his intellectual foes. Most of it is pretty | :04:05. | :04:10. | |
uncontroversial. There is one bit that has stirred up a lot of | :04:10. | :04:15. | |
controversy, this no-fault dismissal, some describe it as a | :04:15. | :04:19. | |
hire and fire system. I don't see a role for that. Britain has a | :04:19. | :04:22. | |
flexible, co-operative labour force. That is what you see here in this | :04:23. | :04:26. | |
steel plant, the work force have made a lot of this happen. Last | :04:26. | :04:30. | |
week I was at Ellesmere Port, where we have got back General Motors | :04:30. | :04:36. | |
investing in Vauxhall. One of the thing that attracted them is | :04:36. | :04:40. | |
British workers being flexible. We don't need to scare the wits out of | :04:40. | :04:43. | |
workers with threats to dismiss them, it is completely the wrong | :04:43. | :04:46. | |
approach. This is about the differences between the coalition | :04:46. | :04:49. | |
partners, it is as serious as it gets, for one it is an ap, the | :04:49. | :04:53. | |
other it is a pear. They don't agree. You have Conservative people, | :04:53. | :04:57. | |
including cabinet ministers, who think the reason the UK economy is | :04:57. | :05:02. | |
sluggish, is because the labour market is shrer rottic. And the | :05:03. | :05:06. | |
Liberal Democrats say there isn't a single shred of evidence that says | :05:06. | :05:10. | |
it is the UK's economy. They have a wider point, they say capitalism is | :05:10. | :05:13. | |
allowed to work because of regulation, it allows trust. | :05:13. | :05:16. | |
No matter, Tory MPs said in the Commons today, as the Government | :05:16. | :05:23. | |
fields questions in the chamber, Beecroft's lessons are legion. | :05:23. | :05:29. | |
2005, Germany exempted businesses with fewer than ten workers from | :05:29. | :05:38. | |
unfair dismissal regulations. They introduced a new catagory of mini | :05:38. | :05:42. | |
and midi jobs, their unemployment figures have halved, what can we | :05:42. | :05:48. | |
learn from Germany. The last survey in this area showed | :05:48. | :05:51. | |
that we were lightly regulated, the third lightest after America and | :05:52. | :05:57. | |
Canada. Germany is more regulated. Turkey, the most regulated, drew | :05:57. | :06:01. | |
its economy. Circumstantial evidence, and studies carried out | :06:01. | :06:06. | |
by a number of think-tanks, national and international, seem to | :06:06. | :06:11. | |
put some of the best economic performances, such as Germany, and | :06:11. | :06:17. | |
to some extent, France, on the more regulated end of the spectrum. | :06:17. | :06:21. | |
of how Germany has deregulated? have to see these particular | :06:21. | :06:28. | |
measures in the German context, which is the context of a highly- | :06:28. | :06:33. | |
regulated, neo-corporate, industrialised economy. And labour | :06:33. | :06:37. | |
lawyers, and comparative labour lawyers, are always warning against | :06:37. | :06:40. | |
the simplicity of the argument, of suggesting legal transplants from | :06:40. | :06:50. | |
:06:50. | :06:50. | ||
one legal system to another. International Labour comparison is | :06:50. | :06:55. | |
interesting, Denmark is highest in the world for ease of hiring and | :06:55. | :06:59. | |
firing and redundancy costs. They have a system that is very good at | :07:00. | :07:02. | |
getting people back into work when they are unemployed, they support | :07:02. | :07:07. | |
them very well, and they have a highly-skilled work force. The | :07:07. | :07:10. | |
lesson is, if we are going down this path, we have to look at it in | :07:11. | :07:14. | |
the round, rather than focusing specifically on one element of | :07:14. | :07:17. | |
deregulation, as a solution to getting people into work. | :07:17. | :07:20. | |
Some within Government expect that there will be action on the | :07:20. | :07:24. | |
Beecroft Report, as part of a great reckoning between the two parties | :07:24. | :07:26. | |
that they have to do everything they can to get growth. The | :07:26. | :07:30. | |
question will be, will it be in substantial areas, where previously | :07:30. | :07:33. | |
there had been much disagreement, or whether it will be in those | :07:33. | :07:37. | |
areas where actually they have already said they sort of agree, so | :07:37. | :07:41. | |
the low-hanging fruit. There are some consultations out there, there | :07:41. | :07:44. | |
are some things the Department of Business has already said it will | :07:44. | :07:48. | |
implement. I understand that the Lib Dems | :07:48. | :07:51. | |
could move towards the Tories on Beecroft's ideas, it would be | :07:51. | :07:54. | |
limited to those affecting small businesses. Those employing fewer | :07:54. | :08:00. | |
than five employees may be exempted from regulations. Lib Dems suggest | :08:00. | :08:05. | |
they may exempt employee-owned, John Lewis-styled companies from | :08:05. | :08:08. | |
regulation, in an attempt to increase that model in the economy. | :08:08. | :08:11. | |
The Beecroft Report emerged having had hefty help from Downing Street | :08:11. | :08:17. | |
and civil servants. One source joked, final version was version 27. | :08:17. | :08:19. | |
Varnished or unvarnished, many think the Prime Minister does have | :08:19. | :08:24. | |
to act in some way, and Lib Dems know it. Tory MPs think the | :08:24. | :08:33. | |
Beecroft Report offers many fruits to be sliced, some in one swipe. | :08:33. | :08:40. | |
We have Lord Oakeshott, and the Conservative MP Tominic Raab, the | :08:40. | :08:47. | |
one-time economic adviser to George Bush, and head of an Asset | :08:47. | :08:51. | |
Management company, Pippa Malmgren, and Labour Party economist, Davit | :08:51. | :08:54. | |
Blanchflower. Where is the evidence that making | :08:54. | :08:59. | |
it easier to hire and fire people actually promotes growth? There is | :08:59. | :09:02. | |
actually a total of abundance of domestic and international evidence. | :09:02. | :09:09. | |
The CBI did a report last year, a survey which found 77% of | :09:09. | :09:13. | |
employiers said regulation was the major -- employers said regulation | :09:13. | :09:18. | |
was a major threat to businesses. The World Economic Forum says we | :09:18. | :09:22. | |
come 83rd on the league table for overregulating our businesses. | :09:22. | :09:27. | |
These are statements of opinion, I'm asking for evidence? In the | :09:27. | :09:31. | |
CBI's case it was a survey of employers. And they said something, | :09:31. | :09:35. | |
they did not produce any evidence, isn't that correct? In that case, | :09:35. | :09:42. | |
yes. But all of the business groups, all of the employee groups, are in | :09:42. | :09:45. | |
unison saying we have a major problem in this country. It is not | :09:45. | :09:47. | |
a silver bullet, there is finance and business taxes. But if you are | :09:47. | :09:50. | |
a small business, with all the uncertainty around you, you are | :09:50. | :09:53. | |
worried about taking that risk to hire someone, and someone in this | :09:53. | :09:59. | |
debate has to stand up for the 22% youth unemployed. That is what we | :09:59. | :10:02. | |
are doing, it is not standing up for the employers, but the | :10:02. | :10:06. | |
unemployed. Have you seen evidence to support this contention, Davit | :10:06. | :10:11. | |
Blanchflower? No. I listened to the commentator a moment ago, I looked | :10:11. | :10:15. | |
at what Vince Cable said. He's quite right to say there is | :10:15. | :10:18. | |
absolutely no evidence for this. There has been a huge literature in | :10:18. | :10:22. | |
economic about the effects of regulation, and how it impacts | :10:22. | :10:30. | |
unemployment. We see no co-relation whatsoever. A good thing to think | :10:30. | :10:34. | |
about in the UK, we have seen incredibly flexible wages and hours, | :10:34. | :10:37. | |
there is no credible evidence whatsoever to say that regulation | :10:37. | :10:42. | |
in the UK is a major problem. In fact, if you go to the business | :10:42. | :10:48. | |
department survey of 201, they said 7% of firms thought regulation was | :10:48. | :10:53. | |
a problem, so I'm afraid there is no basic evidence to support the | :10:53. | :10:59. | |
contention, at all. Lord Oakeshott, there is an apparent plausibilty to | :10:59. | :11:02. | |
this argument. It seems to make a certain amount of sense, doesn't it, | :11:02. | :11:07. | |
if you are Mr Beecroft, of course it makes sense. Yes. It is my turn | :11:07. | :11:12. | |
now. You hang on a second blees, Davit Blanchflower, I want to bring | :11:12. | :11:18. | |
in Lord Oakeshott. Can I say in my day job, not talking politics with, | :11:18. | :11:23. | |
I'm a small businessman, and I run a small business with five people. | :11:23. | :11:29. | |
I know a bit about it, and more than Adrian Beecroft, who has been | :11:29. | :11:36. | |
an asset stripping executive. may employ five people? He doesn't | :11:36. | :11:40. | |
employ them directly. If you ask small businesses and the Federation | :11:40. | :11:43. | |
of Small Businesss what the biggest problem is, it is not whether they | :11:43. | :11:46. | |
can sack workers, it is whether they can get the finance from the | :11:46. | :11:49. | |
banks, particularly the Royal Bank of Scotland, to take the workers on | :11:49. | :11:52. | |
in the first place. That is the biggest single problem. This | :11:52. | :11:57. | |
Beecroft Report, it does have some good things in it. Taking the fruit | :11:57. | :12:00. | |
analogy, there is decent apples in there, but two or three very bad | :12:00. | :12:06. | |
ones. The things like putting off the compulsory fund pension | :12:06. | :12:09. | |
contributions are being done, a lot is being done. What is not being | :12:09. | :12:14. | |
done is to have a sack on the spot culture just at the time when there | :12:14. | :12:19. | |
is no economic confidence. There is no chance, in your view, of the | :12:19. | :12:25. | |
Government to bring in those regulations? Not the one that says | :12:25. | :12:30. | |
sak-on-the-spot. In this country, we in this country do not believe | :12:30. | :12:34. | |
that is a price worth paying, even if they might in America. | :12:35. | :12:38. | |
Frightfully rude, I should have brought you in. I want to bring | :12:38. | :12:41. | |
Dominic on the point that whether this Government will introduce this | :12:41. | :12:44. | |
particular, do you think the Prime Minister is on your side, the | :12:44. | :12:49. | |
particular point about making it easier to hire and fire? I'm not a | :12:49. | :12:52. | |
psychologists, I'm a politician. You are asking me to guess what the | :12:52. | :12:58. | |
Government will do, don't -- are asking me to guess what the | :12:58. | :13:01. | |
Government will do. Don't you know what your leader | :13:01. | :13:05. | |
will do? Does he agree with you? hope he does. You don't know? | :13:05. | :13:09. | |
are having a consultation and we will find out. On the issue of | :13:09. | :13:16. | |
firing on the spot. There are whole swathes of ways of doing this. We | :13:16. | :13:19. | |
extended the period from one to two years, and I didn't hear Lord | :13:19. | :13:23. | |
Oakeshott complaining then. I'm in favour of that. What we are arguing | :13:23. | :13:27. | |
about is this one thing here which you Conservative right-wingers seem | :13:27. | :13:35. | |
to be fixating on, which is the sack-on-the spot culture. You don't | :13:35. | :13:39. | |
need to throw jibes. The one to two years has been done by the | :13:39. | :13:43. | |
Department of Business. You support that. So for two years you are | :13:43. | :13:47. | |
happy with sack-on-the spot. When you take someone on it is | :13:47. | :13:51. | |
reasonable to have two years. The sensible parts of Beecroft are | :13:51. | :13:56. | |
being done already, so why is there suddenly this great attack on Cable | :13:56. | :14:03. | |
because they won't do the sack-on- the-spot thing. As you have | :14:03. | :14:07. | |
accepted, most of it is completely uncontentious. This particular | :14:07. | :14:10. | |
point is held by people like Tominic Raab and his friends to be | :14:10. | :14:20. | |
abs you luetly key. Absolutely keen. It is a totem pole. What about the | :14:20. | :14:23. | |
United States? Two-thirds of economies are generated by firms | :14:23. | :14:29. | |
that employ fewer than 50 people. So if we want to create new jobs, | :14:29. | :14:34. | |
it is only going to come from one place, that is from entrepeneurs | :14:34. | :14:38. | |
who are taking risk. So far so uncontentious? If we talk about | :14:38. | :14:42. | |
sacking on the spot, I want to be clear. The thing to cause people to | :14:42. | :14:46. | |
be sacked on the spot is not regulation, but the debt problem | :14:46. | :14:50. | |
that is bearing down on this country and the austerity. You | :14:50. | :14:52. | |
can't project people from losing their jobs by having all this | :14:52. | :14:55. | |
legislation in place. That is what we learned in the United States. | :14:55. | :15:00. | |
The one thing you have to do is create new jobs. And that GDP | :15:00. | :15:05. | |
construction can only occur if you have a risk-taker, the risk-taker | :15:05. | :15:10. | |
needs to know if he or she puts his capital down, that they can | :15:10. | :15:14. | |
manoeuvre who are my employees, what is the nature of the business, | :15:14. | :15:21. | |
can I innovate fast. What we have to do in Britain is to innovate | :15:21. | :15:25. | |
fast. We have that already. Look at this clart, you will be able to see | :15:25. | :15:29. | |
it, -- This chart. You will be able to see, it was referred to in the | :15:29. | :15:34. | |
piece. It is the OECD's assessment of employment protection in this | :15:34. | :15:41. | |
country. You can't see it Davit Blanchflower, but you know the | :15:41. | :15:47. | |
facts. I have it here. The UK is down there, why does that have | :15:47. | :15:50. | |
anything whatsoever to do with economic performance? The point is, | :15:50. | :15:53. | |
the debt problem in this country has created such a burden on growth, | :15:53. | :15:58. | |
the point is how are you going to get growth going, you are not going | :15:58. | :16:03. | |
to go through the state. Davit Blanchflower you are in the states. | :16:03. | :16:13. | |
:16:13. | :16:15. | ||
Putting your hand up, you can speak. Job protection, there is no | :16:15. | :16:19. | |
question it is a problem. If you look at the World Bank's business | :16:19. | :16:23. | |
ratings, the UK ranks 7th behind the US and Canada, same countries. | :16:23. | :16:27. | |
There is no evidence whatsoever to say it is regulation, and actually, | :16:27. | :16:32. | |
I agree that the big problem in the UK are two things, lack of demand | :16:32. | :16:36. | |
and lack of access to finance to small firms. None of which are | :16:36. | :16:40. | |
being dealt with. All of this stuff is just a way to scare workers, | :16:40. | :16:44. | |
make them have an increased fear of unemployment, stop consuming, | :16:44. | :16:49. | |
increase spending, lowering growth. I think this looks like a right- | :16:49. | :16:53. | |
wing disaster. Can I say something nice about the | :16:53. | :16:57. | |
stories, please. Hang you, you want to hear something nice, we don't | :16:57. | :17:01. | |
want to hear that! Seriously, the point he's making, and the point | :17:01. | :17:05. | |
about I'm already Jack, we have a totally different Labour market | :17:05. | :17:09. | |
than 20 years ago. I pay tribute for Mrs Thatcher for cracking the | :17:09. | :17:13. | |
strength of the unions, we have a free and flexible market. Look at | :17:13. | :17:17. | |
Vauxhall, it is not a problem any more. I want to talk to Tominic | :17:17. | :17:23. | |
Raab now, about this point that David Blanchflower -- Dominic Raab | :17:23. | :17:26. | |
now, about this point that David Blanchflower made. If people fear | :17:26. | :17:30. | |
for their jobs, they are not going to consume, and without consumption | :17:30. | :17:34. | |
you don't get demand and therefore no growth? That may be true, but if | :17:35. | :17:38. | |
they are languishing unemployed. is rather serious? There are a | :17:38. | :17:45. | |
whole range of competing risks here, the big risk for us is we have 22% | :17:45. | :17:48. | |
youth unemployed, 8% unemployed, I agree with the points about finance, | :17:48. | :17:52. | |
we have told the banks we have introduced major reforms, we | :17:52. | :17:55. | |
probably agree on most of those. We are telling the banks two different | :17:55. | :18:00. | |
things at the moment. Our control over certain things, like finance, | :18:00. | :18:04. | |
is wanting to stop bail outs happening again. One of the things | :18:04. | :18:06. | |
we have total control about is the regulatory climate. The problem | :18:07. | :18:11. | |
with the chart, it is four years old, if you look at what the IOD | :18:11. | :18:14. | |
estimates for last year, they said the equivalent of the output of | :18:14. | :18:18. | |
Singapore is what businesses lost in the regulatory burden. That is | :18:18. | :18:25. | |
why if you look at other surveys. Anecdote. We are still well down | :18:25. | :18:30. | |
towards the deregulated labour markets around the world. | :18:30. | :18:34. | |
Please? Smaller companies need to face less regulation. You can | :18:34. | :18:38. | |
choose what is the level of employees at which you want to have | :18:38. | :18:41. | |
protection of employment begin, but that's not even the critical issue | :18:41. | :18:44. | |
here. I think this is what the Beecroft Report isn't addressing. | :18:44. | :18:48. | |
Is what is the bigger question of how to incentivise more risk-taking | :18:48. | :18:54. | |
in the economy. That involves a question about tax policy, | :18:54. | :18:57. | |
regulatory policy, frankly, monetary policy and what purpose it | :18:57. | :18:59. | |
service in the current environment. The point is, this country needs to | :18:59. | :19:02. | |
have a massive debate, about the relative balance between these | :19:02. | :19:07. | |
different things. All with a view to incentivising more risk-taking. | :19:07. | :19:11. | |
I agree with, that we need more investment and more confidence and | :19:11. | :19:14. | |
more growth, at the moment it is not working. | :19:14. | :19:19. | |
Thank you. The dealers who make-or- break currencies, were willing to | :19:19. | :19:23. | |
pay a little more to buy euros, it was a reflection of the weekend | :19:23. | :19:26. | |
comments by leaders that Greece will stay in the euro. Easier said | :19:27. | :19:30. | |
than done, perhaps what may determine the fate of the euro, and | :19:30. | :19:34. | |
of many European economies, is much less words of politicians, than the | :19:34. | :19:37. | |
actions of their citizens. Specifically whether they are | :19:38. | :19:42. | |
willing to leave their money in the banks, and whether those banks are | :19:42. | :19:46. | |
themselves judged safe. Paul Mason, our Economics Editor, | :19:46. | :19:51. | |
is here, before you talk about that. It didn't seem to me to achieve | :19:51. | :19:55. | |
very much that gathering in America. That is clear, the news is, nothing | :19:55. | :19:59. | |
happened in the weekend. The G8 leaders don't get together often. | :19:59. | :20:03. | |
It was an opportunity. What we can say is the battle lines inside the | :20:03. | :20:06. | |
powerful nations were drawn more clearly in the sense that Germany | :20:06. | :20:10. | |
is a bit more isolated in its insistence that there has to be a | :20:10. | :20:19. | |
lot of austerity in Europe. The growth wing strengthened its hand. | :20:19. | :20:23. | |
The good news today is no bank run in Greece and Spain. Towards the | :20:23. | :20:27. | |
end of the week people in the markets were pretty wordied that | :20:27. | :20:32. | |
people would pull their money out of the banks. What passes for good | :20:32. | :20:36. | |
news today is there is not a run on the bank? That is not just because | :20:36. | :20:43. | |
we don't like to see queues outside banks or 1930s-style scenes. It is | :20:43. | :20:45. | |
very difficult to understand at the moment what is holding Europe | :20:45. | :20:49. | |
together. Europe has a sovereign debt problem. The European banks | :20:49. | :20:53. | |
are currently buying the debt of countries, because the European | :20:53. | :20:56. | |
banks have been given money by the European Central Bank. If there is | :20:56. | :21:01. | |
a bank run, that is not just a bad thing for Greece, where the most | :21:01. | :21:04. | |
likely candidate it is for it to happen. A bank run, for reasons I | :21:04. | :21:08. | |
will explain in a minute, can take apart the very mechanism that | :21:08. | :21:14. | |
allows the money to flow through banks to state. The whole situation | :21:15. | :21:18. | |
being created could come tumbling down if we got one queue outside a | :21:18. | :21:24. | |
big bank in Athens. It is technical, but here is why. | :21:24. | :21:29. | |
Eurozone banks send money to each other through a system known as | :21:29. | :21:34. | |
Target 2, it is a payment system, not a lending system. All | :21:34. | :21:37. | |
transactions take place within the European Central Bank, not direct | :21:37. | :21:43. | |
between a Greek bank and a Germany bank, say. Here is the problem, | :21:43. | :21:47. | |
with the Greek banks in droubl, they can only operate in this | :21:48. | :21:52. | |
system because the ECB is letting them draw money they don't have. It | :21:52. | :21:57. | |
is auld emergency liquidity assistance, ELA, it is a lifeline | :21:57. | :22:02. | |
the European Central Bank has to vote for, twice a week. Last week | :22:02. | :22:08. | |
it was raised ten billion, to 100 billion euros. If a real bank run | :22:08. | :22:11. | |
begins in Greece, independent of who wins the election, that | :22:11. | :22:19. | |
lifeline could be shut down. It did seem quite clear, pleasingly | :22:19. | :22:22. | |
clear. There is a European meeting later this week? It is a dinner of | :22:22. | :22:31. | |
the heads of state, convened by your favoured man in Europe, Mr Van | :22:31. | :22:36. | |
Rompey. There is fun already happened there is two-and-a-half | :22:36. | :22:42. | |
pages of detail before the immortal statement, "before the end of | :22:42. | :22:46. | |
dinner, I propose we talk about recent developments in the | :22:46. | :22:49. | |
eurozone". It is a kind of acceptance that at the big | :22:49. | :22:52. | |
diplomatic evidence there is not much more action until the Greek | :22:52. | :22:57. | |
election on the 17th of June. And while Greece is a ticking detonator, | :22:57. | :23:02. | |
ready to go, what people are then worried about is what it sets off. | :23:02. | :23:05. | |
Because while Greece is, we have discussed again and again the Greek | :23:06. | :23:10. | |
problem, the banks are effectively bust, they are on life support from | :23:10. | :23:14. | |
the European system. It is what happens if the Spanish banking | :23:14. | :23:19. | |
system is in some way ignited by that detonator. What you don't want | :23:19. | :23:24. | |
is to have an unstable political situation in Greece, where a | :23:24. | :23:28. | |
trigger is either through the bank run system, or simply by the idea | :23:28. | :23:33. | |
that the Greek also not carry out the austerity moves, that the | :23:33. | :23:38. | |
crisis comes in Greece at a point when the Spanish banking system is | :23:38. | :23:42. | |
not stablised. They are trying to stablise the Spanish banking system | :23:42. | :23:46. | |
and want to give the Spanish banks 100 billion. Now we have the | :23:46. | :23:50. | |
problem we always run into, the Spanish bank doesn't want to be | :23:50. | :23:53. | |
bailed out at the moment. That is where we are, by Wednesday night we | :23:53. | :23:57. | |
might be is somewhere else, or by the time coffee and the canapes | :23:57. | :24:01. | |
come out, I'm not sure. Two people who know a thing or two about banks | :24:01. | :24:08. | |
in trouble, are Gillian Tetting, managingedor of the Financial Times | :24:08. | :24:15. | |
in -- managing director of the Financial Times in America. | :24:15. | :24:21. | |
-- Gillian Tett. Are we there yet? The ECB has | :24:21. | :24:29. | |
propped up the banking system to an extraordinary degree, which is good | :24:29. | :24:33. | |
news, but the key challenges are very serious. The question is, what | :24:33. | :24:37. | |
are they doing behind the scenes to prepare for the worst case. People | :24:37. | :24:42. | |
behind the scenes should watch are they supporting the bond system, | :24:42. | :24:46. | |
will they create an insurance scheme for the entire eurozone, and | :24:46. | :24:50. | |
just how much more can the ECB do. We hope to explore some of those, | :24:50. | :24:54. | |
what is your view of whether there will be a run on the banks? | :24:54. | :24:58. | |
tricky parts is in terms of how Greece will be managed, is manage | :24:58. | :25:02. | |
the cross-border exposures, the extent to which banks are indebted | :25:02. | :25:06. | |
to banks across the border has to be covered. That is the big | :25:06. | :25:10. | |
question. How is it covered, by what Gillian was talking about? | :25:10. | :25:15. | |
There has been experience of this, in the 1980s in Latin America, you | :25:15. | :25:18. | |
had a big crisis of the banks potentially collapsing and the | :25:18. | :25:22. | |
currencies collapsing. It was covered, in effect, in a system | :25:22. | :25:31. | |
known as Brady Bonds, US dollars security, an analogy could be the | :25:31. | :25:34. | |
eurobonds. What is happening now? If they have any sense, they will | :25:34. | :25:39. | |
be working out how that eurobond- type cover can work to stablies | :25:39. | :25:43. | |
those currencies, if there is any risk in that cross-border exposure, | :25:43. | :25:46. | |
between the banks transferring. That's the defence mechanism that | :25:46. | :25:49. | |
needs to be put in place at this point in time in Europe. You have | :25:49. | :25:52. | |
spoken to a lot of these people at the European Central Bank, haven't | :25:52. | :25:57. | |
you? I have recently, yes. Is that what they are doing? They are | :25:57. | :26:02. | |
certainly looking at just how many extraordinary weapons they can pull | :26:02. | :26:06. | |
out of the Arsenal and fire. Over the last year or so they have | :26:06. | :26:10. | |
already surprised people by -- arsenal and fire. Over the last | :26:10. | :26:17. | |
year they have already surprised people by old actions with the LTRO. | :26:17. | :26:24. | |
What is that? Long-term retail operations, the ECB could be | :26:24. | :26:28. | |
fatastically bold if it wanted. We have an article from the Polish | :26:28. | :26:32. | |
Finance Minister today, alling for unlimited purchases of the eurozone | :26:32. | :26:37. | |
bonds by the ECB. That is a very big step for the Germans to stand | :26:37. | :26:42. | |
up to. The Germans are against all that? They have been very cautious | :26:42. | :26:47. | |
up to now. Germany has to recognise, to some extent and to a large | :26:47. | :26:52. | |
extent, it hasn't been explained to the German voter, but the German | :26:52. | :26:56. | |
economy is being largely subsidised by keeping its exports competitive | :26:56. | :27:00. | |
by the other countries in the eurozone. If these countries are at | :27:00. | :27:07. | |
risk, the danger is that the German currency s or the eurobit of that, | :27:07. | :27:10. | |
deflates rapidly making Germany uncompetitive. Germany has had a | :27:10. | :27:16. | |
boom, because of the high level of stability in German employment, in | :27:16. | :27:20. | |
marked contrast to what we were hearing, it has meant the German | :27:20. | :27:24. | |
consumer is not worried about losing their jobs and is spending | :27:24. | :27:27. | |
more. If there is the sort of banking | :27:27. | :27:34. | |
crisis that we are thinking about, what happens to banks in this | :27:34. | :27:39. | |
country? I think this is very much almost a third order, if you like, | :27:39. | :27:44. | |
the second order was the contagion alluded to in terms of Spain and | :27:44. | :27:49. | |
Italy, the third order is the UK, which has less exposure to | :27:49. | :27:56. | |
continental European banks. What about Santander, which took over | :27:56. | :28:01. | |
Abbey National? Santander UK is isolated, it can't pay a dividend | :28:01. | :28:05. | |
to the Spanish parent unless the FSA approves that. If you had money | :28:05. | :28:09. | |
in santand der you would loaf it there? It is pretty safe. The only | :28:09. | :28:14. | |
downside to it, is you can'tness -- the bank can't get capital out of | :28:14. | :28:17. | |
the parent in Spain to support itself, in a way another bank may | :28:17. | :28:22. | |
be able to. The rest of that is very safe. I support Ian's point | :28:22. | :28:26. | |
and pick up on something he said earlier. The good news about the UK | :28:26. | :28:31. | |
system is people have got deposits in UK banks do know there is an | :28:31. | :28:34. | |
insurance scheme in place, they know who stands behind it. One of | :28:34. | :28:39. | |
the big problems in the eurozone is there isn't a common insurance | :28:39. | :28:43. | |
scheme for the entire area. If you are a Greek depositor, you don't | :28:43. | :28:46. | |
know who is backing it, at the end of the day. When it is said the | :28:46. | :28:49. | |
issue right now is the cross-border balances being covered, what is | :28:49. | :28:53. | |
happening in the financial system now is you are seeing fracturing in | :28:53. | :28:57. | |
terms of how banks actually order their businesses, that is | :28:57. | :29:02. | |
incredibly important. If you were a Greek with funds on deposit in a | :29:02. | :29:05. | |
Greek bank, surely you could move it to a German bank? That is why we | :29:05. | :29:08. | |
have money moving out of Greece right now. The legality of this | :29:08. | :29:11. | |
protection scheme, and the question of who is responsible for whom, it | :29:11. | :29:15. | |
is simply not defined right now. What you have already is many banks, | :29:15. | :29:19. | |
as Ian knows, essentially saying, if I'm lending money to Italian | :29:19. | :29:25. | |
companies, I want to make sure I'm electing -- collecting money from | :29:25. | :29:28. | |
Italian depositors to match them up. If you go back to two or three | :29:28. | :29:34. | |
years, everyone thought it was a common euromush, they were treating | :29:34. | :29:38. | |
it like a single currency area, the banks are don't that any more. | :29:38. | :29:43. | |
is to cover the cross-border exposure, if a bank is borrowing | :29:43. | :29:48. | |
across country borders, there is an insulation in the banks for the | :29:48. | :29:52. | |
cross-border exposure. That is, in effect, what the ECB has to put in | :29:52. | :29:56. | |
place to keep it going, that is the called firewall protection they are | :29:56. | :29:59. | |
working on. Time for something positive, it is | :29:59. | :30:03. | |
a pretty rare commodity in coverage of the Middle East, where frontline | :30:03. | :30:06. | |
journalism focuses on bombs, shootings, torture and suffering. | :30:06. | :30:11. | |
For every person who dies in a bomb explosion, many others are wounded, | :30:11. | :30:15. | |
often serious lo. There is a remarkable hospital in the | :30:15. | :30:20. | |
Jordanian capital, Amman, which offers to repair those victims. It | :30:20. | :30:23. | |
has began caring for patients from Iraq, and now patients come from | :30:23. | :30:33. | |
all over. All the patients have something in | :30:33. | :30:43. | |
:30:43. | :30:43. | ||
common. They have been terrorised, by explosions, by bullets, by | :30:43. | :30:53. | |
:30:53. | :31:07. | ||
catastrophy. I admire my patients. They are great, they are strong. | :31:07. | :31:11. | |
have come to Jordan to meet the faces behind the statistics. Tucked | :31:11. | :31:16. | |
away in a suburb of Amman, the forgotten victims of violence in | :31:16. | :31:20. | |
the Middle East. Is survivors of unimaginable horrors. | :31:20. | :31:28. | |
Here, doctors are reconstructing their broken bodies. And helping | :31:28. | :31:38. | |
:31:38. | :31:41. | ||
them rebuild their lives. When we get a result, it makes you feel | :31:41. | :31:46. | |
good, really good. Dr Majd el-Rass, is a Syrian surgeon, preparing to | :31:46. | :31:52. | |
operate on a young Iraqi girl, injured in a bomb. When I see these | :31:52. | :31:59. | |
patients, I feel I'm not having enough, I should give more. They | :31:59. | :32:07. | |
need more. They are suffering, they didn't do anything bad to suffer, | :32:07. | :32:12. | |
they are here asking us to help them. | :32:13. | :32:18. | |
Waiting anxiously is this girl. An explosion outside her home in | :32:18. | :32:21. | |
Baghdad last September killed her brother, and shattered her leg. She | :32:21. | :32:27. | |
hasn't been able to walk or go to school since then. TRANSLATION: | :32:27. | :32:31. | |
doctors in Iraq told me, if they operation doesn't work out, I will | :32:31. | :32:35. | |
have to have an amputation. That's why I'm scared. Since the moment I | :32:35. | :32:45. | |
:32:45. | :32:45. | ||
arrived in Jordan, I have been nervous. This is the first stage of | :32:45. | :32:50. | |
surgery. She will need a lot, at least three or four. We hope, after | :32:50. | :32:57. | |
that, she will walk. But there is always a risk. There is a risk of | :32:57. | :33:02. | |
amputation, always. By the time they get here, the | :33:02. | :33:06. | |
patients are all extremely complicated medical cases. And over | :33:06. | :33:10. | |
many months and years they face multiple gruelling surguries. But | :33:10. | :33:20. | |
:33:20. | :33:20. | ||
the care they get here is so u Neil Kinnock there is -- surgeries, but | :33:20. | :33:28. | |
the care they get here is so unique, there is a huge waiting list. Set | :33:28. | :33:35. | |
up in to deal with the patients of conflict in Iraq, it was a | :33:35. | :33:40. | |
temporary unit. But with increasing conflicts, the hospital had to | :33:40. | :33:47. | |
expand, with an increase in 46%. It has taken in patients from Libya, | :33:47. | :33:51. | |
Yemen, Iraq and Syria, and Egyptians. Amongst the Syrians, | :33:51. | :33:55. | |
desperate to keep in touch with news from home, there is a special | :33:55. | :33:58. | |
camaraderie. Almost all are afraid to be identified, because of | :33:58. | :34:08. | |
:34:08. | :34:09. | ||
concerns for relatives left behind. Not Abu Hassan, he managed to get | :34:09. | :34:13. | |
both himself and his family out. A woodcutter from Deraa, he says he | :34:13. | :34:17. | |
was politicised when he saw the Al- Assad's response to peaceful | :34:17. | :34:24. | |
demonstrations on the streets. He began to mobilise young | :34:24. | :34:28. | |
protestors, and witnessed and filmed, as demonstrators were | :34:28. | :34:38. | |
:34:38. | :34:38. | ||
gunned down. Soon he was rounded up, interrogated and tortured. | :34:38. | :34:42. | |
TRANSLATION: I was handcuffed and blindfolded, and the interrogator | :34:42. | :34:47. | |
told me he would bring Syrian television in, and I must tell them | :34:47. | :34:51. | |
I smuggled weapons from abroad, and I regreted it. I said I cannot do | :34:51. | :34:55. | |
that. He said he knew how to make me confess, then he put burning | :34:55. | :35:00. | |
coals on my feet, and poured a kettle of boiling water over my | :35:00. | :35:05. | |
legs. But he knows he's lucky, only Syria's walking wounded are making | :35:05. | :35:15. | |
:35:15. | :35:21. | ||
it here. Saed had to be operated on three times, but in the end the 27- | :35:21. | :35:26. | |
year-old's leg had to be amputated. He says he was shot while helping | :35:26. | :35:31. | |
wounded protestors, shot by snipers. He hid, sleepless with pain on a | :35:31. | :35:37. | |
farm for seven months, before being smuggled here for treatment. Today | :35:37. | :35:41. | |
the doctor is preparing Saed's stump for a prothesis. I can't | :35:41. | :35:45. | |
sleep for one week before an amputation, and one week after the | :35:45. | :35:51. | |
amputation. Amputation for me, or for any surgeon is like failure. | :35:51. | :35:56. | |
It is like a failure. But times it is the saving measure, the saving | :35:56. | :36:06. | |
:36:06. | :36:06. | ||
of life sometimes. For months on end, this hotel is a | :36:06. | :36:15. | |
home from home for the patients. Some will have to return year after | :36:15. | :36:24. | |
year. Amid the pain, hope and expectation. But most of all, this | :36:24. | :36:31. | |
is a place of waiting, and for many, progress is slow. | :36:31. | :36:36. | |
This boy was six years old when a bomb went off at a family funeral | :36:36. | :36:41. | |
in Baghdad. He lost several relatives, as well as his left leg, | :36:41. | :36:46. | |
left eye, and half of his face. Already he's had 25 operations. To | :36:47. | :36:52. | |
help rebuild his mouth, muscle was transferred from his back. | :36:52. | :36:56. | |
Complicated surgery rarely perform anywhere else in the world. | :36:56. | :37:00. | |
One in ten of the project's patients at the moment are children. | :37:00. | :37:03. | |
And in room 502, they have just opened a makeshift school. The | :37:03. | :37:08. | |
teacher told us the children are so keen, that they pile into class the | :37:08. | :37:13. | |
moment she arrives at the hotel. Most of them now are Iraqis, but | :37:13. | :37:16. | |
MSF is readying itself for an influx from Miria in the months | :37:16. | :37:20. | |
ahead. What strikes you most about these | :37:21. | :37:26. | |
children is the complete absence of self-pity. This 12-year-old is from | :37:26. | :37:30. | |
Fallujah. TRANSLATION: I have been here for a | :37:30. | :37:37. | |
year. This bit of my face used to be like the other side. I have had | :37:37. | :37:42. | |
two operations so far. How is it being here, is it difficult to be | :37:42. | :37:52. | |
:37:52. | :37:57. | ||
away from home? It's good? In what way? You like the weather. You like | :37:57. | :38:04. | |
the calm and the fact that there are no explosions. Hussein is | :38:04. | :38:09. | |
waiting for a third skin graft. He showed me how he was burned in a | :38:09. | :38:19. | |
:38:19. | :38:34. | ||
bomb. He says it hurts, but only at night. The patients living behind | :38:34. | :38:38. | |
these doors all have very visible injuries, but hidden away is the | :38:38. | :38:43. | |
mental pain, of men who have been rejected for work because of their | :38:43. | :38:47. | |
disfigurement. Of women so badly maimed they have been divorced by | :38:47. | :38:51. | |
their husbands, and children, ostracised at school because of | :38:51. | :38:54. | |
their disfigurement. And the psychological wounds are extremely | :38:54. | :39:00. | |
hard to treat. This man's deepest wounds cannot be | :39:00. | :39:04. | |
seen. On day out with his family, the young Yemeny's car was hit by a | :39:04. | :39:09. | |
rocket, killing his wife and two- year-old son, in front of him. | :39:09. | :39:12. | |
Tomorrow he will have complex surgery to transplant a bone from | :39:12. | :39:22. | |
his leg to his arm, and staff are anxious about him. He has attempted | :39:22. | :39:28. | |
suicide three times. TRANSLATION: Since it happened I have known no | :39:28. | :39:34. | |
peace, none at all, I'm in constant pain. I had four operations in | :39:34. | :39:38. | |
Yemen, each one made things worse. Here I love the doctors, they are | :39:38. | :39:44. | |
like a family to me, anything we need, they give us. | :39:44. | :39:49. | |
It is Wednesday afternoon, and they have opened up the hotel ballroom. | :39:49. | :39:53. | |
Every few months staff put on a special party for the patients, to | :39:53. | :40:01. | |
try to lift their spirits. Time to keep a close eye, this woman is | :40:01. | :40:05. | |
responsible for the patients psychological welfare. Do you worry | :40:05. | :40:12. | |
about their physical or mental injuries more? The mental injury, | :40:12. | :40:20. | |
the physical will be treated. It is the last day of the week, and | :40:20. | :40:28. | |
the doctor has patients to check up on. Three days after surgery, | :40:28. | :40:33. | |
wassan is recovering slowly. Her mother is concerned that she | :40:33. | :40:38. | |
has lost weight. That is her on the left, taken before the explosion. A | :40:38. | :40:43. | |
young women now reduced by her injury to childlike dependency. But | :40:43. | :40:51. | |
all are relieved that the first operation has gone to plan. Saed is | :40:51. | :40:55. | |
busy rebuilding his strength. As soon as he gets his new leg and can | :40:55. | :41:01. | |
walk on it, he has told me he's going straight back to Syria. The | :41:01. | :41:05. | |
doctor is gathering his strength for a new influx of patients. | :41:05. | :41:13. | |
hardest part is to see the patient on arrival. When he arrives to me, | :41:13. | :41:17. | |
especially children. I have my habit, when I see a child with a | :41:17. | :41:21. | |
fracture of the limbs o a problem with the limbs, when they arrive to | :41:21. | :41:26. | |
me, I say you will walk for me on both limbs, with a football, I will | :41:26. | :41:36. | |
:41:36. | :41:40. | ||
bring the football. If you didn't exist or this | :41:40. | :41:45. | |
hospital didn't exist, what would happen to them? It would be | :41:45. | :41:55. | |
:41:55. | :41:56. | ||
catastrophic for them. Catastrophic. Now, one of the greatest voices in | :41:56. | :42:03. | |
the world was heard in London earlier this evening, Jessie Norman, | :42:03. | :42:06. | |
the great American soprano, gave her first concert in a decade on | :42:06. | :42:13. | |
the South Bank. A programme from Gershwin and Bernstein, to Rodgers | :42:13. | :42:18. | |
and Hammerstein. She rarely gives interviews, but she has given one | :42:18. | :42:28. | |
:42:28. | :42:33. | ||
to Steve Smith. Jessye Norman is a diva, in a good | :42:33. | :42:38. | |
way, and husband been one for 40 years, if you think she has a great | :42:38. | :42:41. | |
voice, you are quite wrong, unusually she has three great | :42:41. | :42:47. | |
voices. I have the great privilege of | :42:47. | :42:54. | |
having a lot of low notes, a very strong middle voice, and high notes | :42:54. | :42:57. | |
as well. Do you ever ring people up in different voices on the phone | :42:57. | :43:00. | |
and catch them out, does that work? I have never tried it. Most people | :43:01. | :43:04. | |
recognise me on the phone, I don't think I would get away with it at | :43:04. | :43:14. | |
:43:14. | :43:19. | ||
all, I hadn't thought of it. Miss Norman was born and raised in | :43:19. | :43:23. | |
what is then the segregated south of the United States. Long before | :43:23. | :43:27. | |
she performed the classical repertoire, other styles claimed | :43:27. | :43:33. | |
her. Growing up I listened to a great deal of gospel music. I love | :43:34. | :43:39. | |
jazz, I love singing the American song book, these things that I will | :43:39. | :43:47. | |
be singing. Cole Porter a Gershwin? Rodgers and hammer stein, Gershwin. | :43:47. | :43:51. | |
This is all beautiful music s I love it T I want other people who | :43:52. | :43:57. | |
are stuck, as it were, in what we call the traditional classical | :43:57. | :44:02. | |
canon, I would encourage them to allow those walls to fall down, and | :44:02. | :44:06. | |
to allow themselves to listen to a song of George Gershwin and be | :44:06. | :44:16. | |
:44:16. | :44:22. | ||
happy about it. # It is very clear | :44:22. | :44:28. | |
# Our love is here to stay. Is there still snobbery in the | :44:28. | :44:33. | |
classical world? Oh yes, we are very snobbish, we think if it | :44:33. | :44:37. | |
hadn't been written, particularly and preferably in the 19th century, | :44:37. | :44:42. | |
somewhere in Europe, it can't possibly be as good. That is simply | :44:42. | :44:48. | |
a mistake. Jessye Norman backs Barack Obama | :44:48. | :44:53. | |
for a second term, and not just because he gave her a medal. She | :44:53. | :44:57. | |
supports him over gay marriage. have never understood why it | :44:57. | :45:02. | |
bothers other people so. If you're in a committed hetrosexual | :45:02. | :45:07. | |
relationship, why does it bother you that the people across the road | :45:07. | :45:13. | |
are the same-sex and happy together. Wouldn't you just want to celebrate | :45:13. | :45:23. | |
:45:23. | :45:24. | ||
love in any form that it can occur in this challenging world of our's? | :45:24. | :45:29. | |
Religion plays a great big part, particularly conservative religion. | :45:29. | :45:36. | |
I don't know how conserve ive and religion goes together, since any | :45:36. | :45:43. | |
religion is meant to be about love, and understanding, and acceptance. | :45:43. | :45:53. | |
:45:53. | :45:53. | ||
So conservative and religion is an objectiony moron for me. | :45:53. | :46:01. | |
Oxymoron for me. You're from the same town as James | :46:01. | :46:07. | |
Brown? I saw him in the lobby, and I thought should I go and say hello, | :46:07. | :46:13. | |
or walk by and keep smiling. He turned around and he said, Jess, | :46:13. | :46:19. | |
how marvellous to see you. And so I said, I was going to say hello, but | :46:19. | :46:24. | |
I certainly could imagine that you had any idea. He said he knows all | :46:24. | :46:30. | |
of his homegirls. I wouldn't do my job properly, and usually that is | :46:30. | :46:35. | |
how it is, if I didn't say, could you please sing a little for us. | :46:35. | :46:40. | |
# Falling in love with love # Is falling for make-believe | :46:40. | :46:46. | |
Falling in love with love # Is playing the fool | :46:46. | :46:52. | |
Good, would you say that you are a diva? One thinks of a diva as being | :46:52. | :46:58. | |
a person who is rather difficult to be around, and difficult to be with, | :46:58. | :47:05. | |
forgive the dangle participles, and capricious and generally rather bad | :47:05. | :47:14. | |
company, and I'm not like that. If a diva is a person that takes | :47:14. | :47:20. |