29/06/2012

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:00:13. > :00:17.Tonight, after almost four years and 19 summits, is this the deal

:00:17. > :00:22.that might just save the euro. The decision for no-strings bail out

:00:22. > :00:25.money for Italy and Spain, represents what some see as a

:00:25. > :00:32.retreat by German Chancellor, Angela Merkel. Even a change in the

:00:32. > :00:36.EU centre of gravity, to the south. Catastrophy averted, markets surge,

:00:36. > :00:40.but how does Europe return to growth? We will explore whether it

:00:40. > :00:45.really is that big a deal, with the boss of a giant investment fund.

:00:45. > :00:50.We also know the public's view of bankers, greed year, corrupt and

:00:50. > :00:54.living the champagne lifestyle, but how do they see themselves and us,

:00:54. > :00:59.their investors. The former rogue trader, Nick Leeson, is here.

:00:59. > :01:09.The woman who prosecuted Norway's mass killer, Anders Breivik, tells

:01:09. > :01:10.

:01:10. > :01:14.us why she shook the hand of the man who murdered 77 Norwegians.

:01:14. > :01:17.Good evening, this could be the European Union's big moment, at

:01:17. > :01:22.last. Angela Merkel appears to have backed down under enormous pressure

:01:22. > :01:26.from Italy, Spain and France, producing a deal that offers euro

:01:26. > :01:30.zone countries in trouble, access to money, but with fewer strings

:01:30. > :01:34.attached. The markets like the deal, but they always do for a while. Can

:01:34. > :01:37.Angela Merkel sell it at home, persuading sceptical German tax-

:01:37. > :01:43.payers, that saving the euro is worth even more of their money. We

:01:43. > :01:48.will begin with our diplomatic editor, Mark Urban, in Brussels.

:01:48. > :01:51.In this diplomatic daps, those who have the money and those -- dance,

:01:52. > :01:55.those who have the money and those who want it have circled one

:01:55. > :01:59.another for months. During the early hours of the morning, the

:01:59. > :02:04.Spanish and the Italians threatened to stop the whole show, if Germany

:02:04. > :02:09.didn't loosen up a bit, and do things it had long said it wouldn't.

:02:09. > :02:12.For months we have seen a chicken and egg argument at these summits.

:02:12. > :02:17.Should Europe's poorer-performing economies receive the bail outs

:02:18. > :02:19.they urgently need, or should the systemic problems be dealt with and

:02:19. > :02:23.tough discipline imposed on those nations.

:02:23. > :02:27.Overnight there has been a very important development, which is

:02:27. > :02:35.that Germany has softened its opposition to using joint European

:02:35. > :02:39.money to help the banks in those countries, and, indeed, those

:02:39. > :02:44.countries' Governments themselves. Has Germany crossed a rub conin

:02:44. > :02:49.terms of using these funds to alleviate the sovereign debt?

:02:49. > :02:53.has made a step. They have not crossed their red line of debt

:02:53. > :03:01.mutualisation, of eurobonds and so on, but they have made the existing

:03:01. > :03:08.instruments more flexible. German Chancellor insisted using EU

:03:08. > :03:12.bail out funds, the EFSF and ESM, to help striken members, didn't

:03:12. > :03:18.involve a change of policy, because it could all be done within

:03:18. > :03:23.existing rules and structures. TRANSLATION: What we have agreed

:03:23. > :03:28.today is that Germany will submit the request under the EFSF, thus

:03:28. > :03:33.that status will be transferred to the ESM. Those who would perhaps

:03:33. > :03:37.now take a decision to assist Spanish banks, will be in a some

:03:37. > :03:43.what preferred position, and others would have felt perhaps worse off.

:03:43. > :03:48.We want -- didn't want to create that kind of disadvantage for them.

:03:48. > :03:53.I exerted pressure and so far we want people to maintain and stick

:03:53. > :03:59.to the procedures agreed. But the questioning German press detected

:03:59. > :04:03.humbug from a Chancellor that has repeatedly tried to avoi giving

:04:03. > :04:08.southern European countries a blank check, but has now underwritten

:04:08. > :04:13.their banking systems, effectively. If you want the euro you have to

:04:13. > :04:17.share a bit. Angela Merkel has no other possibility, she either makes

:04:17. > :04:24.some compromises or says goodbye to the euro, Germany is not in the

:04:24. > :04:29.situation at the moment to say goodbye to the euro. The key

:04:29. > :04:34.ingredients was Spain's banks would get help, recapitalisation from

:04:34. > :04:37.Europe's funds, Ireland could follow too, and the same EU funds

:04:37. > :04:40.could be used to buy Government bonds, for instance in Italy, and

:04:40. > :04:45.other countries to help them deal with their sovereign debt. Exactly

:04:45. > :04:49.how this will be done has not yet been worked out. There will also be

:04:49. > :04:54.increased supervision within eurozone banks, and protection of

:04:54. > :04:58.deposits. But does the strengthening of the

:04:58. > :05:05.eurozone inevitably mean a growing gulf with EU countries outside it.

:05:05. > :05:10.Last year we have seen a lot of discussions on how to secure the

:05:10. > :05:17.need for 27 decision makers, especially to protect the internal

:05:17. > :05:21.market. We have preserved this time that we start with the meeting of

:05:21. > :05:26.the European Council, all 27, but that they sometimes continue as 17.

:05:26. > :05:31.Now this time late in the night. So, yes, there is a discussion, which I

:05:31. > :05:35.think is very important, but as of now I think we can handle it.

:05:35. > :05:40.is your own instinct, will we be back in another urgent discussion

:05:40. > :05:46.in a month or two, or has there been sufficient impetuous given now

:05:46. > :05:51.by this summit, to safeguard those countries? I think actually we have

:05:51. > :05:55.made sufficient decisions that actually are heading in the right

:05:55. > :06:01.direction and that could ease some of the market reactions, but at the

:06:01. > :06:05.end of the day, I'm very sure that the reforms done by the nation

:06:05. > :06:10.states, that will need to follow. This is what we have seen in

:06:10. > :06:16.countries like Sweden and Finland, when we were hit by financial

:06:16. > :06:20.crises in the early 1990s, this has been seen in Latvia and Ireland,

:06:20. > :06:24.and I'm pretty sure it is also true for the most troubled countries out

:06:24. > :06:28.there. Of course David Cameron is watching the moves towards fiscal

:06:28. > :06:36.union with a bady eye, trying to find a -- beady eye, trying to find

:06:36. > :06:44.the balance of staying in a single market with all it involves, with

:06:44. > :06:50.protections that might trigger a referendum. There is an issue with

:06:50. > :06:52.being engaged with being frustrated by the way it works. I'm not only a

:06:52. > :06:56.practical euro-sceptic, I'm an optimist about getting this

:06:56. > :06:59.relationship right. So the performers have left the

:06:59. > :07:04.stage again, with Chancellor Merkel going back to convince her

:07:04. > :07:09.parliament that she's not caved in to southern Europe. As always, the

:07:09. > :07:15.acid test will come in the markets. And that wider economic reality

:07:15. > :07:20.that exists beyond the looking glass of EU summits.

:07:21. > :07:23.Our Economics Editor, Paul Mason, has been gauging the reaction to

:07:23. > :07:27.today's agreements. The markets clearly liked it, but does that

:07:27. > :07:32.mean this is a really decisive moment? The euro sup, the European

:07:32. > :07:36.stock markets rup, the cost of borrowing for Spain and Italy are

:07:36. > :07:39.down a bit. They do like it. It has stopped disaster. If they haven't

:07:39. > :07:43.done what they did last night, all the things listed there, we would

:07:43. > :07:47.have been looking at a banking crisis across Europe, a bond market

:07:47. > :07:51.crisis on top of what is still there, which is a shrinking economy.

:07:51. > :07:57.We would have been looking at capital flight increasing, where as

:07:57. > :08:01.what we are looking at now is it may slow down. It certainly hasn't

:08:01. > :08:05.stablised. I think the crucial thing it sounds technical and geeky,

:08:05. > :08:09.but it is very important, is that the whole issue of seniority has

:08:09. > :08:15.been solved. That is, the Germans and the Finns were saying if we

:08:15. > :08:18.lend you the money, southern Europe, we will allow those loans to become

:08:18. > :08:23.more senior than the private sector loans to your bank, and we will get

:08:23. > :08:27.our money back first. That is what one trader said building a firewall

:08:27. > :08:30.out of Semtex, they have pulled out of it, it is a constant German

:08:30. > :08:34.demand, but they have pulled back from it. Stablisation rather than

:08:34. > :08:38.solution is where we are. Given what you have said, politically

:08:38. > :08:43.what has changed? Merkel did blink, her own newspapers realised it,

:08:43. > :08:49.they called it day of defeat. The Italian newspapers following on

:08:49. > :08:52.from the defeat of the Germans in football the night before, were so

:08:52. > :08:56.scatterlogical in their description of what happened to Mrs Merkel it

:08:56. > :09:01.can't be translated into English on TV. Yes, she was defeated. Above

:09:01. > :09:06.all, because the insistence on austerity, as the precondition for

:09:06. > :09:09.aid, and the existence, the insistence of strategic change, the

:09:09. > :09:12.fiscal union, et cetera, as the precondition, is gone. It is gone

:09:12. > :09:15.out of the German demand. The reason is very simple, Francois

:09:15. > :09:20.Hollande. Where some of those journalists where Mark was, telling

:09:20. > :09:25.me two months ago, when I was there, Merkel will tame Hollande, just

:09:25. > :09:29.wait a month or two instead, Hollande has effectively turned the

:09:29. > :09:33.table on Mrs Merkel and there is a new order in Europe, ending the

:09:33. > :09:36.period, I think, that began when Merkel and Sarkozy decided to use

:09:36. > :09:42.the crisis to do something bigger stragically with Europe, it is too

:09:42. > :09:48.fragile to do that with. They are in crisis management mode, and they

:09:48. > :09:53.have managed it for now. A few minutes ago I spoke to Mohamed El

:09:53. > :09:57.Erian, the world's largest bond investor, with �2 trillion of funds

:09:57. > :10:00.under his direction. Do you have any more confidence that the

:10:00. > :10:07.eurozone is a good place for you to invest some of the billions that

:10:07. > :10:11.you look after? It is getting better, but it is not yet as a

:10:11. > :10:14.stage where we would invest in the peripheral economies. Let me

:10:14. > :10:18.explain why. There is no doubt that the European leaders are taking

:10:18. > :10:22.more substantive steps. They have got the sequencing right, they seem

:10:22. > :10:27.to understand the enormity of the problem. That is all encouraging,

:10:27. > :10:31.however, they still haven't gotten to what we Saul the Sputnik moment,

:10:31. > :10:33.recognising that you -- we call the Sputnik moment, recognising you

:10:33. > :10:38.need a breakthrough, recognising you need to catch up with the

:10:38. > :10:41.crisis and get ahead of it. Until that happens, I'm afraid we will

:10:41. > :10:46.have yet another crisis management summit a few weeks down the road,

:10:46. > :10:52.it is not yet safe to invest in the peripheral economies. But, in terms

:10:52. > :10:56.of the core of this, which is Germany and Angela Merkel, she's

:10:56. > :10:59.obviously got political problems and presumably, that's the

:10:59. > :11:03.difficulty in getting to the Sputnik moment, can she persuade

:11:03. > :11:08.her people to put their hands in their pockets? National democracies

:11:08. > :11:13.are not mapping well to the regional requirements. You see this

:11:13. > :11:18.in Germany, you also see it in Greece, you see it in Spain. The

:11:18. > :11:21.second issue, is a lack of self- assurance, mutual assurances,

:11:21. > :11:24.people don't trust that the other side will do the right thing, and

:11:24. > :11:27.therefore, they are playing the game of chicken, rather than

:11:27. > :11:32.collaborating. But if the track is broadly right,

:11:32. > :11:37.as you accept, and they are talking about banking union, fiscal union,

:11:37. > :11:41.and more supervision, I wonder where you think that leaves Britain

:11:41. > :11:45.in and the City of London, as attractive to investors as before?

:11:45. > :11:51.It will for a while. I don't think Europe, the eurozone can get to

:11:51. > :11:57.fiscal union, banking union, political integration quickly. This

:11:57. > :12:00.is not a problem that will be solved. Secondly, the natural

:12:00. > :12:04.forces complicate things. Capital is leaving the periphery, capital

:12:04. > :12:09.is leaving Europe as a whole. So Britain is going to look good for a

:12:09. > :12:12.while, relative to its European counterparts. The big question is

:12:12. > :12:19.down the road, Gavin, if the Europeans get their act together,

:12:19. > :12:22.and if they can truly produce a stronger eurozone, then the

:12:22. > :12:25.implications for Britain will flip immediately. Just a final thought

:12:25. > :12:29.if I can ask you briefly, do you think the worst may be over, the

:12:29. > :12:33.track is right, there is more political will than when we last

:12:33. > :12:39.had a conversation a month or so ago? I hope so, but I don't think

:12:39. > :12:43.so. I don't think so, first because there is still some difficult steps

:12:43. > :12:48.to take. Second, the neighbourhood for Europe is getting worse, the US

:12:48. > :12:52.is slowing down, China is slowing down, Brazil is slowing down. And

:12:52. > :12:57.finally, what you said earlier, leaders have not as yet sold these

:12:57. > :13:00.solutions to their people. So, I hope it's better, but I would not

:13:00. > :13:06.plan on T Thank you very much for talking to

:13:06. > :13:13.Chancellor Merkel has a big sales job to do at home, Marcus

:13:13. > :13:17.Brigstocke is a German MP in the same party -- Ralph Brinkhaus is a

:13:17. > :13:23.German MP in the same party as Angela Merkel. The papers call this

:13:23. > :13:26.a painful defeat for Merkel, it was, wasn't it? I do not like the

:13:26. > :13:30.expression "defeat", we had a defeat yesterday in Poland on the

:13:31. > :13:33.football filed, but not in Brussels. I guess it -- field, but not in

:13:33. > :13:37.Brussels. It was the result of negotiations and in very hard

:13:37. > :13:42.circumstances. I guess we had a good outcome of the negotiations,

:13:42. > :13:47.but we almost have to keep in find...I'm Sorry to interrupt, good

:13:47. > :13:50.outcome, you didn't get what you wanted, and Francois Hollande seems

:13:50. > :13:53.to have changed the entire game in Europe, because you were obviously

:13:53. > :13:59.so determined to be very close to France and you have done what the

:13:59. > :14:05.French, Italians and Spanish wanted? We do not see a game which

:14:05. > :14:13.has changed totally, we have put more flexibility into some tools,

:14:13. > :14:16.and we have put away some mistakes of the old system, and that's all.

:14:16. > :14:20.To come back to the previous remarks, it is very stupid to call

:14:20. > :14:24.it a defeat, we almost have to keep in mind that we have to convince

:14:24. > :14:28.the people on the streets in Germany. I'm an MP, I have to talk

:14:28. > :14:35.to my people in my constituency, they do like Europe, but they do

:14:35. > :14:40.not like to pay for Europe, especially they do not like to pay

:14:40. > :14:46.for Europe when, for example, France is telling us, OK, we are

:14:46. > :14:49.putting the retirement age at 60, where as we talk to our people

:14:49. > :14:53.telling them we have a retirement age of 67. This is a problem. We

:14:53. > :14:58.have always to keep in mind the communication. Many people in

:14:58. > :15:01.Britain will understand exactly what you are saying, which is why

:15:02. > :15:05.when you talk to people on the German streets, do they not say

:15:05. > :15:09.this is a bit of blackmail, they know we want to be good Europeans,

:15:09. > :15:12.they know about the German past, they know how important this is to

:15:12. > :15:21.us, and yet, the Spanish, the Italians and others, the weaker

:15:21. > :15:25.members, are effectively telling you what to do, that is blackmail?

:15:25. > :15:30.It could be, if we are not successful in communicating to the

:15:30. > :15:34.people that this is one part of the game. The other part of the game

:15:34. > :15:37.has structural reforms, we still want to have the structural reforms

:15:37. > :15:42.because of the liquidity, this money, it is a short-term solution

:15:42. > :15:48.we have. For a long-term solution we really need structural reforms,

:15:48. > :15:52.and so nobody questions a structural reform in Brussels. We

:15:52. > :15:56.are talking about speed, we are talking about tools and flexibility,

:15:56. > :16:00.and about a lot of other things, but at the end of the day, we want

:16:00. > :16:06.to have the structural reforms and this is the most important point.

:16:07. > :16:11.Thank you very much for joining us. This could be watershed moment for

:16:11. > :16:16.Britain's banks, the revelations about fiddling at Barclays and new

:16:16. > :16:19.allegations of mis-selling, come on top of computer gliches at RBS and

:16:19. > :16:22.subsidiaries, not to mention the disastrous business mistake that is

:16:22. > :16:26.brought us into the financial crisis in the first place. Today

:16:26. > :16:30.the Prime Minister said he's considering new legislation, that

:16:30. > :16:35.traders who fiddle The Libertines rate have insensed the public and

:16:35. > :16:39.politicians. -- the LIBOR rate have insensed the public and politicians.

:16:39. > :16:41.And it is an industry with profound problems. I hope everyone now

:16:41. > :16:45.understands that something went very wrong with the UK banking

:16:45. > :16:49.industry and we need to put it right. That goes to both the

:16:49. > :16:54.question of culture in the banking industry, and to the structure of

:16:54. > :17:00.the banking industry. From excessive levels of compensation,

:17:00. > :17:03.to shoddy treatment of customers, to a deceitful manipulation of one

:17:03. > :17:09.of the most important interest rates. And now, this morning, to

:17:09. > :17:12.news of yet another mis-selling scandal, we can see that we need a

:17:12. > :17:15.real change in the culture of the industry.

:17:15. > :17:22.Nick Leeson is well known as someone who served time as a rogue

:17:22. > :17:27.trader when we worked with Barings in 1995 and Gervais Williams runs

:17:27. > :17:31.the investment fund, MEN. Just an assessment of this moment in

:17:31. > :17:36.banking, does it feel like a watershed moment? It is a very

:17:36. > :17:41.important moment, LIBOR is at the centre of the banking system, to

:17:41. > :17:44.have distortions openly, in an international context, where LIBOR

:17:44. > :17:49.is depended upon internationally not just UK banks is very central.

:17:49. > :17:53.What do you think of it as from the view of the traders, how they are

:17:53. > :18:00.seeing things? A lot is made of moral outrage. Do they act in a

:18:00. > :18:03.moral way or are they trying to get the next trade? Is it always about

:18:04. > :18:08.greed? It is all about competitive edge, regulation is important in

:18:08. > :18:12.that regard. It needs to be efficient and robust, when there

:18:12. > :18:16.are breaches of regulation it needs to be stamped down upon and

:18:16. > :18:20.punishment needs to be meaningful. What happens in my case, if you

:18:20. > :18:24.push those boundaries all the time, and the regulations prove to be

:18:24. > :18:29.inefficient, or the regulators prove to be incompetent, then you

:18:29. > :18:32.know, you end up with utter contempt and disdain for the

:18:32. > :18:36.regulators. One thing that also comes through in a number of these

:18:36. > :18:41.occasions is contempt for the customers, do you think some people

:18:41. > :18:44.think the customers are mugs? think, it is impossible to tar

:18:44. > :18:49.everybody with the same brush. You are going to get an element of that

:18:49. > :18:52.in any industry, and that's going to exist in banking as well. But

:18:52. > :18:56.the e-mails that have passed around, for me, exhibit the amount of

:18:57. > :19:00.contempt there is for the regulator. The regulator is inefficient,

:19:00. > :19:05.bordering on incompetent. Do you see a problem with the entire

:19:05. > :19:12.culture of the trading floors, people just push the boundaries,

:19:12. > :19:21.try to get away with it and do, quite often? There is a big

:19:21. > :19:24.cultural issue, asset prices have been rising on off and on from the

:19:24. > :19:29.1980, it is a cultural expectation, where the tail is wagging the dog.

:19:30. > :19:33.Do you think the rest of us, who don't know what is going on, don't

:19:33. > :19:37.care very much while everything is prospering, and the statement about

:19:37. > :19:41.when the tide goes out you see who is wearing no clothes, and that is

:19:41. > :19:47.what has happened? It is what has happened, but it is more meaningful.

:19:47. > :19:50.It is a point where customers, not just in the UK, but international,

:19:50. > :19:55.they will sit up and their attitudes will change, this will be

:19:55. > :19:58.with us for many years for reputational damage. To the UK?

:19:58. > :20:01.the City for financial issues. is very bad for business? It is

:20:02. > :20:05.very bad for business. We are talking about trust, people are

:20:05. > :20:09.trusting their capital to investors in the City. Not everyone is bad,

:20:09. > :20:12.but if there is a culture whereby markets are distorted, then you

:20:12. > :20:16.just don't know, as a customer, whether you are getting a fair

:20:16. > :20:19.price or not. Do you agree with that? Whenever there is a scandal

:20:19. > :20:24.there is so much rhetoric, you can see it this week, this happened a

:20:24. > :20:28.few years ago, the traders are no longer here, everybody is OK.

:20:28. > :20:33.bad apple, nobody believes that, do they? The public, for a number of

:20:33. > :20:35.years have, they have accepted the rhetoric they have received. It is

:20:35. > :20:39.this rogue trader, it is not systemic, it is not everything

:20:39. > :20:42.going on, we have dealt with it. This can be a defining moment. As

:20:42. > :20:46.long as punishment is handed down. There is a proper investigation

:20:46. > :20:49.into everything that happened too. What do you mean that punishment is

:20:49. > :20:53.handed down, do you want new laws, as the Prime Minister seems to

:20:53. > :20:57.suggest, are there existing laws that might work, can you clawback

:20:57. > :21:00.some of the money from the people who have made money? If something

:21:00. > :21:02.criminal has been done they have to be punished. There has to be a

:21:02. > :21:06.proper investigation into everything that happened around

:21:06. > :21:10.Barclays arbgts way the markets were manipulated f people look deep

:21:10. > :21:13.enough they will find things that are wrong. The regulators need to

:21:13. > :21:19.improve. The quantity of regulation is not important. It is the quality.

:21:19. > :21:22.This came from America, didn't it? Where it was spotted first? That is

:21:22. > :21:26.half the problem were were the English people, where were the

:21:26. > :21:28.English regulators. It will have a much more long lasting effect, it

:21:28. > :21:32.is not just about regulation, regulation will close the door

:21:32. > :21:36.after all of this, and there will be an effect in the long-term. It

:21:36. > :21:39.is the customers changing and the scale of the customers changing

:21:39. > :21:43.their attitude that really changes things, as it comes through that

:21:43. > :21:47.will change things with a view to culture going through. Can you

:21:47. > :21:52.understand it with customers, we are all customers with bank

:21:52. > :21:56.accounts what can we do? We feel outraged, affronted, taken for a

:21:56. > :21:59.ride, and yet what can we do about it? The fact that there will be

:21:59. > :22:05.such a big change in terms of attitude also give the politicians

:22:05. > :22:08.opportunities to make a much more significant changes, they have been

:22:08. > :22:10.worried about damaging the City up until now, but they will be

:22:10. > :22:16.empowered now to make more significant changes, which will

:22:16. > :22:20.have a much greater effect. Do you, for instance, new legislation, new

:22:20. > :22:23.powers of scrutiny, what kind of things. Again, in the period that

:22:23. > :22:28.you have been talking about, light- touch regulation was a buzzword for

:22:28. > :22:33.a long time, discredited now, perhaps? What we will go for is

:22:33. > :22:37.simply more simplification, it is complexity, with interrelationships

:22:37. > :22:43.that is clouding the ability of people to make good decisions in

:22:43. > :22:46.terms of regulation and leadership. Tying it in with the other story,

:22:46. > :22:54.you have heard Ralph Brinkhaus saying short-term things will be OK

:22:54. > :22:57.for the City of London, but in the long-term if Europe gets its act

:22:57. > :23:02.together things will change. And looking at the banks and saying

:23:02. > :23:04.they are smelly? Something needs to be done, the regulators need to be

:23:04. > :23:08.improved. That will come through the Government and making sure

:23:08. > :23:12.everything is better. If you are on trading floor, earning a healthy

:23:12. > :23:15.living or knowing how it works, you won't want to work for the

:23:16. > :23:19.regulator for half the money? have to pay the regulators more,

:23:19. > :23:23.and attract better individuals. Any school that is finishing up, in any

:23:23. > :23:28.school across the country, the best people go towards medicine, towards

:23:28. > :23:35.the trading floors, and there is something left in the mid-thal goes

:23:35. > :23:38.towards the regulators that he can -- middle bit that go towards the

:23:38. > :23:41.regulators. You need people who better perform and are better

:23:41. > :23:45.skilled, who see how the markets are manipulated, and challenge what

:23:45. > :23:50.is going on. It doesn't matter what degree of understanding you have,

:23:50. > :23:54.if you don't challenge what is going on it will continue.

:23:54. > :24:00.It was the deadliest attack in Norway since World War II, almost

:24:00. > :24:03.one year ago, on the 22nd July, 2011, Anders Breivik detonated a

:24:03. > :24:08.bomb in Oslo's Government quarter killing eight people. The murders

:24:08. > :24:12.continued on an island a few hours later, where he shot dead 69,

:24:12. > :24:17.mostly teenage members of the governing Labour Party, on a summer

:24:17. > :24:21.camp. The trial will offer awe stage to the world, Anders Breivik

:24:21. > :24:27.wrote in his manifesto posted on the Internet before the attacks.

:24:27. > :24:32.When that trial began in April, the responsibility for prosecuting the

:24:33. > :24:41.crimes fell to Inga Berjer Engh. Her' action to Breivik's Nazi

:24:41. > :24:46.salute, was to shake hands with him. Breivik used the trial, which ended

:24:46. > :24:52.last week, as a platform for his far right political views, arguing

:24:52. > :24:55.that his victims were legitimate targets in his war against Marxist

:24:55. > :24:59.multiculturalism. She also heard the harrowing testimony of

:25:00. > :25:03.survivors who escaped the gun of a man whose only regret is that he

:25:04. > :25:09.didn't kill more. Inga Berjer Engh spent the trial

:25:09. > :25:16.demolishing Breivik's far-fetched claims to be part of a network of

:25:16. > :25:19.right-wing extremists, styling themselves, the Knights Templar.

:25:19. > :25:24.The prosecution concluded that far from being a terrorist he was, in

:25:25. > :25:28.fact, insane, and not responsible for his crimes at all, a suggestion

:25:28. > :25:32.Breivik himself claimed was offensive. In August a panel of

:25:32. > :25:38.judges will decide whether Norway's most notorious killer will serve

:25:38. > :25:44.his sentence in a prison cell, or a psychiatric ward.

:25:44. > :25:48.Earlier I caught up with the chief prosecutor in the Breivik trial,

:25:48. > :25:52.Inga Berjer Engh. He was obviously guilty of killing people, but

:25:52. > :25:55.equally obviously he wanted a platform for his views, he wanted a

:25:56. > :26:01.stage to the world, as he put it. How concerned were you about that

:26:01. > :26:05.aspect of the trial? Well, that's been a discussion in the media,

:26:05. > :26:13.especially in Norway. That discussion, I would say is

:26:14. > :26:19.meaningless n a way, but it is, I can't take that discussion too

:26:19. > :26:24.seriously's accused of a crime, when he's use accused, he has

:26:24. > :26:30.certain rights. One of the principal rights he has in court is

:26:30. > :26:36.to speak and make a statement in court, and it is very important

:26:36. > :26:41.that we hold on to our rules and principles, even though we are

:26:41. > :26:46.facing a horrible crime like this. In court Breivik gave a Nazi salute,

:26:46. > :26:53.and then you walked up and shook his hand, why did you do that?

:26:53. > :26:57.did that once, the first day of court. We always do that in court.

:26:57. > :27:04.Every trial I have, no matter what the accused has done, I go up to

:27:04. > :27:07.them and I shake hands with them, and I think the rest of the people

:27:07. > :27:12.that had a role in court also did that. All the other lawyers. I

:27:12. > :27:16.think has important. You don't feel any qualms about that, this is a

:27:16. > :27:20.man obviously with blood on his hands, who had given a Nazi salute

:27:20. > :27:24.in a country occupied by the Nazis, where there are people alive today

:27:24. > :27:28.who remember that occupation. Wasn't it quite offensive? It was

:27:28. > :27:34.offensive when he did it. I think his lawyer told him not to do it,

:27:34. > :27:41.and he stopped. But in order to shake his hand, I think it is, my

:27:41. > :27:46.goal has been to treat him as any other criminal. I think that is

:27:46. > :27:50.important. I think which managed to do -- we management to do it, and I

:27:50. > :27:53.think most of the -- we managed to do it, and most people have respect

:27:53. > :27:57.for that view. Some people disagreed with it. For me it was

:27:57. > :28:05.important to treat him like all the other criminals that I bring to

:28:05. > :28:11.court. Even though you argued in court that this man is insane?

:28:11. > :28:18.hi to argue, I was not sure when we started the trial, we were not able

:28:18. > :28:23.to conclude on that. But in order to have, in order to face a prison

:28:23. > :28:28.sentence in Norway you have to be sane. If there is any reasonable

:28:28. > :28:35.doubt about that condition, we are oblige today propose to the court

:28:35. > :28:40.to make -- obliged to the court to make an order for mental healthcare

:28:40. > :28:48.and not an ordinary prison sentence. If it was reasonable doubt, and it

:28:48. > :28:52.was after we finished after ten weeks. We had two court-appointed

:28:52. > :29:01.forensic scientists who had stated he was psychotic, and he was on the

:29:01. > :29:04.2nd of July, and he still is. They stated he had massive deillusions.

:29:04. > :29:08.How important is it for the families that he is regarded as

:29:08. > :29:17.insane, and not, in some way, totally responsible for his

:29:17. > :29:21.actions? My experience during the trial, for some families, it was

:29:21. > :29:24.very important he was looked upon as sane, and sentenced to an

:29:24. > :29:30.ordinary prison sentence. For other people they were not so concerned

:29:30. > :29:35.about it. What is common for all of them, that they need to feel secure,

:29:35. > :29:40.secure that he's going to be away, he's going to be locked up, if it's

:29:40. > :29:44.in a hospital, or it is in prison, it doesn't really matter that much

:29:44. > :29:49.for some people. They need to feel sure they are not going to meet him

:29:49. > :29:53.in the street. Isn't that a sopt soft option if he ends up in a

:29:53. > :29:57.mental hospital rather than a prison. You have bent over

:29:57. > :30:01.backwards to be humane and decent and tolerant to a defendant, but

:30:01. > :30:07.you also a duty to those who have suffered most grievously, who would

:30:08. > :30:12.like to see this man punished, some would like to see him executed?

:30:12. > :30:16.but when we face crimes that we cannot believe, like this crime, I

:30:16. > :30:21.think my role as a prosecutor is to follow the law, and the principle

:30:21. > :30:24.that is we have a long tradition of. That is why I do it and not the

:30:24. > :30:29.ones that have been hurt, because there is a lot of feelings there.

:30:29. > :30:33.Thank you for talking to us. The review show is up next, Kirsty,

:30:33. > :30:38.what have you got? Get ready for strange doings with

:30:38. > :30:42.fried chicken in William Friedkin's black commondy, Killer Joe, there

:30:42. > :30:47.is darkness at the heart of the Edvard Munch exhibition at Tate

:30:47. > :30:51.Modern. Ben Whishaw and Tom Hiddleston ride it out in the Dark

:30:51. > :31:01.Crown, join us in just a minute. There is darkness at the heart of

:31:01. > :31:40.

:31:40. > :31:45.quite a few of the newspapers, That's all from Newsnight, we lead

:31:45. > :31:49.you with a tribute to the headline writers at the Sun newspaper and

:31:49. > :31:56.their return to form this morning, this is how they advised Diamond it