18/03/2016 Newsnight


18/03/2016

With Evan Davis. Paris terror suspect arrested in Belgium. Political turmoil in Brazil and just how bad a week has it been for the chancellor and his budget?


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Transcript


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Ian Duncan Smith has resigned from the government this evening,

:00:00.:00:10.

over benefit cuts, the end of his six years reign as work

:00:11.:00:13.

At the last Budget he'd cheered government policy

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So, is his exit a full-blown crisis for the government,

:00:17.:00:23.

Five arrested in Brussels - Paris attacker Salah Abdeslam among

:00:24.:00:34.

We'll piece together today's events, and ask whether the authorities can

:00:35.:00:38.

And on tonight's Artsnight - artist Ryan Gander explores the art

:00:39.:00:43.

Art isn't a stronghold of the elite, it's everywhere. It surrounds us.

:00:44.:01:01.

It was at 9:00pm this evening, the news dropped without warning.

:01:02.:01:05.

Iain Duncan Smith has resigned from the cabinet.

:01:06.:01:07.

His resignation letter stuck the knife into George Osborne,

:01:08.:01:10.

and indeed, twisted it around a bit too.

:01:11.:01:13.

Now it had obviously been a fraught day,

:01:14.:01:16.

earlier in the evening, there had been signs

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of a significant U-turn on those unpopular cuts to benefits

:01:19.:01:21.

for people with disabilities - the personal independence

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The cuts were meant to make a ?1.3 billion saving.

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But according to Mr Duncan Smith's resignation letter,

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He didn't like them, and didn't like them even more

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for the fact they were accompanied by tax cuts for the better off.

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That have a brief chat to BBC political editor Laura Kuenssberg,

:01:42.:01:52.

who is in Downing Street. Take us through the letter, what you make of

:01:53.:01:56.

it, the substance and tone. Well, it's an absolute zinger of a

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resignation letter. He believed very strongly in the changes being made

:02:07.:02:09.

in welfare under his leadership at the DWP over the last six years, but

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in his view, these latest proposed cuts to the payments for many

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disabled people were simply a step too far. They were, in his view, the

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wrong balance, striking the wrong balance. He makes a very interesting

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point. Politically this will hurt. He suggests the government now has

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the balance of cuts the wrong way round, they are looking in the wrong

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places and hitting the wrong people. He dares the government to explain

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why they've been hitting people at the bottom end and the younger

:02:40.:02:42.

generation instead, protecting pensioners at the top end. The most

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striking and damaging line of all in this letter is saved for the very,

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very end. He casts doubt on the government's main assertion they've

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made time and time again since they've been in charge in 2010, he

:02:58.:03:01.

questions whether or not we are really all in this together. That is

:03:02.:03:05.

a senior figure in government walking out in protest and,

:03:06.:03:09.

essentially, questioning the government's main motivation. Every

:03:10.:03:14.

line is almost full of some bitterness. There has been bad blood

:03:15.:03:17.

between him and George Osborne for some time now. Very briefly, that is

:03:18.:03:22.

what he said, is there anything unsaid that is going on tonight?

:03:23.:03:26.

Naz of course there always is in politics. In this case there is

:03:27.:03:31.

something glaringly missing from the resignation letter. Iain Duncan

:03:32.:03:35.

Smith is one of the most prominent Eurosceptics, he has a big role in

:03:36.:03:38.

obtaining for us to leave the European Union. For some people

:03:39.:03:42.

inside government, they are pointing very much to that as part of his

:03:43.:03:47.

motivation. This will pour fuel on the already fiery debate inside the

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Conservative Party over whether or not we should stay or leave the EU.

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Senior MPs I've spoken to close to Iain Duncan Smith say, however, it's

:03:56.:04:00.

just not the case. He feels he was forced into these reforms he was

:04:01.:04:04.

then feeling he was being forced to defend them. When it emerged today

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the government was going to jump the reforms altogether, you felt it was

:04:10.:04:13.

a step too far. This will make a difference to the bad blood already

:04:14.:04:18.

there over the EU. That think that anger, that's David Cameron has been

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struggling to contain inside his party. No question, the timing of

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the debate around the EU referendum is absolutely part of this, too.

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Well to discuss all of this is Tim Montgomerie, from the Times

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newspaper, who was a speech writer for Iain Duncan Smith and founded

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the Centre for Social Justice with him, and also Jonathan

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Freedland, columnist from the Guardian, and Anne McElvoy

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Good evening to you all. Tim, what is going through his mind tonight? I

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think you have to judge it by the content of the letter that he wrote

:04:52.:04:54.

to the Prime Minister. He has been struggling for a long time with an

:04:55.:05:00.

imbalance of cuts that he's being asked to make. Huge part of the

:05:01.:05:05.

welfare budget, particularly for pensioners, said in universal

:05:06.:05:08.

benefits like child benefit have been ruled out of being touched by

:05:09.:05:11.

the Prime Minister and by the Chancellor. I think Iain Duncan

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Smith has, as he says, been a team player, tried to make cuts on the

:05:18.:05:22.

working poor and younger families. He feels it has gone on too far.

:05:23.:05:27.

It's one thing to make cuts for deficit reduction, but as his letter

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said, it's completely different if you are making those cuts to fund

:05:30.:05:33.

tax cuts for the better off or capital gains tax. You are taking

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the letter at face value. I think we have to, there may be other reasons,

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but there is a lot of moral force to this letter and it chimes with a lot

:05:44.:05:47.

of people who feel, to quote the letter, the promise was, we are all

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in this together. And, actually, it is working age families at the

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bottom of the pile who are yet again been asked to bear the brunt of

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posterity. It's interesting, a lot of critics to the left, who've grown

:05:59.:06:03.

to not like him very much over the last six years of his reign there,

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they will say, why are you going this way? There's been a lot of this

:06:08.:06:11.

over the last six years and you suddenly popped out, particularly

:06:12.:06:15.

just in the run-up to an EU referendum, which will make them

:06:16.:06:17.

suspicious if something about Brexit. You could easily make the

:06:18.:06:22.

argument he could have gone over other cuts, over tax credits last

:06:23.:06:26.

year. I think that the difference is the use of these cuts to help fund

:06:27.:06:32.

cuts for better off people. That really is a step too far. The others

:06:33.:06:38.

like detail is this is the day the policy he is resigning over was

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going to be junked. It's very odd to resign over policy the government

:06:43.:06:47.

has abandoned. The timing perhaps wasn't completely ideal in that

:06:48.:06:51.

respect. But I think the wider point of the letter, that cuts are still

:06:52.:06:56.

coming down the pipeline and are focused on the working age, young

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families, that is still very resonant. IQ taking the letter at

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face value or do you think there is something else going on? -- are you

:07:05.:07:10.

taking. It's what Iain Duncan Smith really believes, I don't think there

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is any sort of hokum, trying to cover something up. There is a

:07:14.:07:18.

permissive environment in the Conservative Party as a result of

:07:19.:07:22.

the referendum and a deep split in the Conservative Party which goes

:07:23.:07:27.

back... Pretty much forever... But Iain Duncan Smith is one of those

:07:28.:07:31.

people from the 90s onwards who has been a great Eurosceptic. This is

:07:32.:07:34.

their moment in the run-up to a possible Brexit. All sorts of things

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that maybe would have just about held together, got patched together,

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like those family rows. Once you start one, the others tend to come

:07:43.:07:46.

up. That's really what is going on here. People say what he's trying to

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do... The letter is so barbed comment doesn't mention George

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Osborne particularly, but it's so obviously aimed at him. People say

:07:55.:07:57.

he's trying to betray himself as the nice guy, for exit, the Chancellor,

:07:58.:08:03.

who wants to remain, as the evil... People will find it rich of Iain

:08:04.:08:08.

Duncan Smith to criticise Osborne from the left. They will say, you

:08:09.:08:12.

are the person who has been implementing these cuts, some of

:08:13.:08:15.

them very severe. The test of fitness to work imposed on the

:08:16.:08:20.

disabled. He's been seen as extremely harsh by disability

:08:21.:08:24.

groups. They find that now of all times he discovers it's too much for

:08:25.:08:29.

him. He is shocked to discover there is this harsh policy from the

:08:30.:08:32.

government and he's quitting just as it's dropped. Of course people are

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going to be sceptical and ask that because Dean you always ask in

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politics, why now? Is tolerated lots before now. Now three months ahead

:08:41.:08:44.

of the referendum he feels it's time to really launch an exit at the man

:08:45.:08:58.

who is leading the outcome pain. Is this full-blown crisis or

:08:59.:09:01.

containable to one policy over this benefit cut, which has been junked?

:09:02.:09:06.

And one man? It feels like, judging from the tweets of all the people

:09:07.:09:10.

coming out in support of him, the usual suspects on the Brexit side of

:09:11.:09:14.

the party, it feels like it's igniting something, is that right?

:09:15.:09:20.

This is an historic time for the Conservative Party. I don't want to

:09:21.:09:23.

make a prediction in a world where Donald Trump could be the next

:09:24.:09:26.

president, it's a world full of surprises. I think the Conservative

:09:27.:09:30.

Party could easily split over this Brexit bait, not just because of the

:09:31.:09:34.

nature of the huge divide it represents philosophically, but the

:09:35.:09:39.

way it is being fought. -- Brexit debate. There is unhappiness on both

:09:40.:09:43.

sides at the emphasis the Prime Minister is putting on fear, for

:09:44.:09:47.

example. Other people on the site that supports staying in the EU

:09:48.:09:52.

worries about the tactics of some of the people wanting to come out.

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There is also a sense, this is why this letter is imported, the

:09:56.:09:58.

weakness of the leading party means the Conservative Party could be in

:09:59.:10:03.

government for a long time. -- weakness of the Labour Party. Iain

:10:04.:10:07.

Duncan Smith says unless the Conservative Party is a truly one

:10:08.:10:11.

nation party that balances the cuts and tax policy so they are fair to

:10:12.:10:14.

everyone in society, it risks squandering that opportunity to be

:10:15.:10:17.

the natural party of government again. The difficulty with that is,

:10:18.:10:24.

it's such a complex landscape within the Conservative Party. When Iain

:10:25.:10:27.

Duncan Smith says, in the letter, he could just about have gone along

:10:28.:10:30.

with this if it hadn't been for the fact he thought the budget was too

:10:31.:10:35.

nice to high earners... This is someone on the right of the party.

:10:36.:10:39.

Where are we? That's another question. We've gone through the

:10:40.:10:44.

looking Glass of it. It's going to be a bit of a problem. I feel you

:10:45.:10:49.

should put in some word of defence for George Osborne here. It's easy

:10:50.:10:53.

on a night like this to say, you see what happens, you put on these

:10:54.:10:58.

disability cuts, now look. We've heard a rising bill on this.

:10:59.:11:04.

Governments, going back to new Labour... Disability benefit cuts to

:11:05.:11:14.

fund tax cuts for the well of. It was because for the top rate of tax

:11:15.:11:18.

to come down from 50p to 45 D. E tolerated that before. We've got a

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figure on the right attacking the figure associated with compassionate

:11:25.:11:28.

conservatism and modernisation, saying, this is too much for me.

:11:29.:11:32.

That is why you feel it's about Brexit. You've got this odd thing

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going on, partly to do with the weakness of labour. Government and

:11:37.:11:39.

opposition are happening within the Conservative Party. It's the sort of

:11:40.:11:42.

thing George Osborne could have got away with before but half the people

:11:43.:11:46.

behind him as he gave the budget wanted him to fail, wanted him to

:11:47.:11:54.

trip up, because he is the leader of In. Is this schism in the party at

:11:55.:12:04.

the end of the road is it repairable the referendum... Is, David

:12:05.:12:11.

Cameron's departure date will have to come forward, is not in the

:12:12.:12:17.

position, if it is likely he wins the Brexit election, he will not be

:12:18.:12:21.

able to heal this. The Chancellor is toxic on lots of these issues. I

:12:22.:12:25.

think a new leader will be necessary to heal divisions. Inside of the

:12:26.:12:35.

party? Early in the parliament. Polls suggest it wouldn't be risk he

:12:36.:12:39.

couldn't do a healing role. Cameron has allowed Osborne to be the

:12:40.:12:44.

lightning rod and hate figure of In. Cameron isn't even here, playing the

:12:45.:12:50.

statesman figure. This attack goes to Cameron as well as Osborne. I

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mean, he's put up his hands and said, there are a lot of people.

:12:56.:13:01.

They recently have want to do continue with the Cameron- Osborne

:13:02.:13:04.

duo at the top of the Conservative Party. This is an extremely

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significant moment for them. Geoffrey Howe, the attack on

:13:09.:13:11.

Margaret Thatcher, these things come round, teams to be an eternal

:13:12.:13:15.

recurrence. It begins to look like the beginning of an endgame, doesn't

:13:16.:13:19.

it? Osborne has had the most appalling week. This has to be worse

:13:20.:13:24.

than omnishambles. He was going to be all right after the budget! And

:13:25.:13:30.

now look. Again, is it what you would call the tin ear, he doesn't

:13:31.:13:36.

get 1 billion pounds from disabled people is a lot of money. It's like

:13:37.:13:40.

the disabled tax credit row from last, the fact he has repeated it

:13:41.:13:44.

with an even more vulnerable group. People feel the disabled are the one

:13:45.:13:48.

group, most of all, that deserve help from the welfare state. Taking

:13:49.:13:53.

from the poor to give to the rich is one thing, but even the Sheriff of

:13:54.:13:56.

Nottingham didn't take from the disabled and sick to give to the

:13:57.:14:00.

rich. Capital gains tax sounded so bad. People were selling their

:14:01.:14:04.

shares in Osborne as soon as he sat down on Wednesday. It's got much

:14:05.:14:07.

worse. You can't keep making mistakes like this. If you are the

:14:08.:14:11.

great strategic genius as he presenting cells politically, his

:14:12.:14:15.

image has been, I may not look like that popular figure on TV but I am a

:14:16.:14:19.

strategic wizard. Yet he's done the tax credit reversal, similar to...

:14:20.:14:25.

Praising the Google tax deal, another humiliation. He's running

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out of lives. Your luck does run out as Chancellor. Remember, he's been

:14:30.:14:32.

an absolutely commanding figure in this period, an architect of the

:14:33.:14:38.

Tory election victory. Your luck does run out as Chancellor. It

:14:39.:14:43.

hinges on the Office for Budget Responsibility. When it goes well

:14:44.:14:50.

his stock rises. Not only that, the OBE are as a life of its own in

:14:51.:14:56.

national politics. -- the OBR. Tim was reflecting, that absolutely

:14:57.:15:01.

driven feeling Osborne has that he has to at least prove he is right in

:15:02.:15:05.

the long run, it's now beginning to trip him up. Does it make any

:15:06.:15:08.

difference to the referendum itself? Does it bolster the leave camp,

:15:09.:15:13.

possibly even the remain camp? It does matter how much standing

:15:14.:15:22.

David Cameron has in the country. He is the lead person selling EU

:15:23.:15:33.

membership to the people. If this makes a difference, every time he

:15:34.:15:38.

tries to sell the EU, people look at him slightly differently. It is not

:15:39.:15:44.

helpful... I think the damage is around George Osborne. He is the

:15:45.:15:49.

toxic figure, the hard-faced man. He was booed at the Paralympics, he is

:15:50.:15:54.

having another go at this table people now. I don't think much of

:15:55.:16:00.

that rubs off on Cameron. That is all we have time for. Thank you.

:16:01.:16:04.

Just over four months since the Paris attacks,

:16:05.:16:06.

Salah Abdesalm Europe's most wanted man, for his role in those

:16:07.:16:11.

Along with an accomplice, and three people in a family who had

:16:12.:16:18.

Right in a flat in Molenbeek, Abdesalm's home

:16:19.:16:22.

Secunder Kermani has been in Molenbeek in recent days,

:16:23.:16:26.

Dramatic scenes on the streets of Molenbeek in Brussels,

:16:27.:16:31.

as authorities closed in on one of Europe's's most wanted men.

:16:32.:16:36.

as authorities closed in on one of Europe's most wanted men.

:16:37.:16:39.

Salah Abdeslam was reportedly shot in the leg and arrested along

:16:40.:16:42.

with an alleged accomplice and three members

:16:43.:16:43.

Police had been searching for him ever since the attacks in Paris last

:16:44.:16:48.

November and he is now likely to be extradited to France.

:16:49.:16:51.

In the past, some there had accused Belgian

:16:52.:16:53.

security services of intelligence failures.

:16:54.:16:56.

This evening the French president praised their work

:16:57.:17:00.

TRANSLATION: I have a special thought for the victims

:17:01.:17:08.

of the attacks on the 13th of November in Paris.

:17:09.:17:14.

Because Salah Abdeslam is directly connected to the preparation,

:17:15.:17:22.

organisation and, I have to say, the perpetration of these attacks.

:17:23.:17:26.

I also think of the families who have been looking

:17:27.:17:29.

Salah Abdeslam was a former petty criminal from the Brussels district

:17:30.:17:34.

He drove the attackers to Paris and, according to some reports,

:17:35.:17:39.

took an active part in what had happened there.

:17:40.:17:42.

His brother was one of those firing at people in the bars and cafes

:17:43.:17:45.

He was picked up by two friends, who drove

:17:46.:17:58.

Incredibly, they were stopped three times at police

:17:59.:18:02.

checkpoints, but were allowed to continue.

:18:03.:18:03.

The next day, those two friends who had picked him up were arrested

:18:04.:18:06.

in dramatic fashion, despite an international manhunt

:18:07.:18:08.

Until a raid earlier this week in Brussels

:18:09.:18:12.

suburb where police found his fingerprints.

:18:13.:18:14.

One man was killed, two others escaped.

:18:15.:18:17.

One may have been Salah, but today he was finally

:18:18.:18:19.

Clearly, catching someone like this alive,

:18:20.:18:24.

who was involved in the plot against Paris, who was probably

:18:25.:18:27.

meant to die giving that attack, which means he was really a key part

:18:28.:18:32.

of the fabric of the operation means he will have

:18:33.:18:34.

a real insight into the broader networks around them,

:18:35.:18:37.

into the people who supplied them with

:18:38.:18:39.

weapons, the people who helped them make the bombs,

:18:40.:18:43.

From an intelligence perspective, this is a huge victory.

:18:44.:18:50.

Salah had been a childhood friend of the organiser of the Paris

:18:51.:18:52.

Who else in IS, whether in Europe or Syria, was involved

:18:53.:18:57.

in the attacks, will be a key question to explore.

:18:58.:19:03.

As will the network who helped Salah hideout for so long.

:19:04.:19:07.

Molenbeek where he grew up and where he was captured has gained

:19:08.:19:09.

what many residents see as an unfair reputation as a centre of extremism.

:19:10.:19:19.

This man runs one of the oldest youth centres. He said with a Distin

:19:20.:19:28.

fries population, it is the perfect place to hide. You should know that

:19:29.:19:39.

there is a high density population. 8000 new inhabitants every year. And

:19:40.:19:48.

8000 leaving. There were tense scenes in Molenbeek to light. Most

:19:49.:19:51.

oppose extremism, but also many have a troubled relationship with the

:19:52.:19:59.

police. These raids were a success for the Belgian authorities, but as

:20:00.:20:03.

they discover more behind the Paris attacks, they will be looking to

:20:04.:20:07.

prevent other attacks happening. What was his role on November the

:20:08.:20:24.

13th? I have spent quite a bit of time in Molenbeek and I have met

:20:25.:20:29.

many of Salah Abdesalm's friends. They cannot comprehend his role in

:20:30.:20:35.

the attacks. His brother said he had seen him watching jihad videos. But

:20:36.:20:40.

his friends, it had been a shock to them. They would say the fact he

:20:41.:20:45.

didn't end up dead on the night of the attack shows he had second

:20:46.:20:49.

thoughts about his involvement. But he played a key role in the

:20:50.:20:54.

logistics, he rented cars, rented one of the safe houses that was used

:20:55.:21:00.

to manufacture the suicide belts that were detonated. One of the most

:21:01.:21:05.

interesting aspects is the anger in Molenbeek tonight. Interpret that,

:21:06.:21:12.

it is not complicit with Isis, what is going on? Molenbeek has a high

:21:13.:21:22.

Muslim population. They resent the presence of the international media

:21:23.:21:25.

been camped out there portraying it as the Jihadi capital of Europe.

:21:26.:21:28.

That is what explains that. To discuss the wider

:21:29.:21:38.

implications of today's events, we're joined by Professor Peter

:21:39.:21:41.

Neumann from King's College's Centre for the study of Radicalisation

:21:42.:21:42.

and Political Violence. To what extent does capturing him

:21:43.:21:51.

alive help the authorities? Potentially he might talk, but we

:21:52.:21:58.

don't know that yet. There is a potential disadvantage because of

:21:59.:22:02.

course, Isis has an incentive to perhaps even try to blackmail

:22:03.:22:09.

Belgium to release him. It is absolutely unpredictable what will

:22:10.:22:13.

happen in the next days and weeks. If he talks, it will be a huge

:22:14.:22:18.

opportunity, but there is no guarantee he will. What does this

:22:19.:22:22.

say about ice is that he was in Molenbeek. He could have gone to

:22:23.:22:27.

Syria, the big network, but he hadn't? It is interesting, because

:22:28.:22:35.

his brother died in the attacks. One of his school friends was the

:22:36.:22:39.

mastermind of the attacks. Despite this being such a transnational

:22:40.:22:45.

phenomenon, it is also a very small local phenomenon. A lot of people

:22:46.:22:49.

are closely related to each other. The fact he stayed in that place for

:22:50.:22:55.

four months. If you were the most wanted man in Europe, maybe you

:22:56.:22:59.

would enqueue shouldn't be in the obvious place. The fact he stayed

:23:00.:23:02.

there proves how provincial and local some of this movement can be.

:23:03.:23:08.

The fact he was under their noses, what does that tell us about the

:23:09.:23:16.

authorities? Was it a success they got him, but a failure because he

:23:17.:23:21.

was always in Molenbeek? It is a success. Well Jim is the most effect

:23:22.:23:26.

that country relative to population size in Europe. Its security

:23:27.:23:30.

agencies were not built for the numbers of people they now have to

:23:31.:23:34.

deal with. Second point, this was a part of Brussels that had been

:23:35.:23:39.

abandoned by the state, by the Muslim communities and it is clear

:23:40.:23:42.

that the authorities did not penetrate that part of their own

:23:43.:23:52.

city at all. What about the European authorities, are they working

:23:53.:23:54.

together a love? Are they able to deal with what is going on? After

:23:55.:24:01.

Paris, something 's happened. But there are still some big things that

:24:02.:24:06.

need to be fixed. To this day there isn't a single database accessible

:24:07.:24:10.

to every European country that contains the names of every foreign

:24:11.:24:15.

fighter, every potential terrorist. It is still possible, even after

:24:16.:24:20.

Paris, for people to come back from Syria, returned to their own

:24:21.:24:24.

countries are via other countries, because their countries don't have a

:24:25.:24:26.

proper way of exchanging information. Peter, thank you very

:24:27.:24:28.

much. Latin America is having

:24:29.:24:31.

an extraordinary year - socialism in that continent has

:24:32.:24:33.

been in the ascendancy, Venezuela in economic crisis,

:24:34.:24:36.

Socialist Cuba coming And, a socialist government

:24:37.:24:40.

in Brazil in the midst The Brazil crisis is the one

:24:41.:24:44.

that is reaching fever Demonstrations and

:24:45.:24:47.

counter-demonstrations, The scandal concerns construction

:24:48.:24:49.

company bribes paid to the state oil company, finding their way

:24:50.:24:52.

to senior political figures. It's now ensnared the revered former

:24:53.:24:56.

President, Lula da Silva. An extraordinary tale -

:24:57.:25:01.

Gabriel Gatehouse reports. Lula da Silva, seventh son of a

:25:02.:25:17.

literate farm workers, a former shoeshine boy turned president.

:25:18.:25:21.

Credited with lifting millions of people out of poverty. He left

:25:22.:25:26.

office five years ago with an approval rating of 90%. In Brazil

:25:27.:25:35.

Lula said in the 1980s, when up for man steals, he goes to jail. When a

:25:36.:25:41.

rich man steals, he becomes a minister. Now, the man himself

:25:42.:25:44.

stands accused of doing exactly that, falling foul of his own savage

:25:45.:25:51.

critique of the system. Last Sunday, more than a million people across

:25:52.:25:55.

Brazil came out onto the streets to demonstrate against the government

:25:56.:26:03.

of Lula successor. At the heart of this story is a giant corruption

:26:04.:26:12.

scandal. Allegations of billions of dollars of Ribes involving senior

:26:13.:26:16.

officials and politicians. Now, Lula himself has been implicated. He has

:26:17.:26:22.

denied charges of money-laundering and fraud, but the allegations have

:26:23.:26:27.

set off a chain reaction. Secretly taped phone calls released to the

:26:28.:26:33.

media, appeared to show the president offering Lula a

:26:34.:26:35.

ministerial post which would shield him from prosecution.

:26:36.:26:49.

The appointment was announced and Lula was sworn in yesterday. The

:26:50.:26:59.

president herself is facing impeachment over allegations she

:27:00.:27:02.

misused public fronts to boost spending during an election

:27:03.:27:06.

campaign, warned of attempts to overthrow her government.

:27:07.:27:13.

TRANSLATION: Convulsing Brazilian society with lies and reprehensible

:27:14.:27:17.

practices, violates constitutional rights and the rights of citizens.

:27:18.:27:24.

It sets serious precedents. Kuwas begin this way. Under President

:27:25.:27:31.

Lula, Brazil was on the up. Bids to host the World Cup and the 2016 Rio

:27:32.:27:38.

Paralympics. In 2010, the economy grew by 7.5%, but since then things

:27:39.:27:44.

have gone wrong. Last year, GDP fell by 3.8%, leading to perhaps the

:27:45.:27:51.

worst recession since records began. There are all sorts of reasons for

:27:52.:27:56.

Brazil's economic woes, not all of them the government's fault.

:27:57.:28:01.

Constant stories in the media about waste and corruption surrounding the

:28:02.:28:05.

World Cup and the Olympics have feel the anger, especially among

:28:06.:28:08.

middle-class voters. The upper middle class has suffered a very

:28:09.:28:14.

significant, economic and political losses in the period of

:28:15.:28:19.

Administration in the past 13, 14 years. On the economic side, jobs

:28:20.:28:26.

for the other middle-class, paying between the minimum wages have

:28:27.:28:31.

declined by 4.5 million in this period. It is very difficult for

:28:32.:28:35.

children to do better than their parents did. The government does

:28:36.:28:41.

have its supporters, drawn chiefly from the working class. Today, they

:28:42.:28:47.

came out in force to save they are backing Lula and the president.

:28:48.:28:52.

TRANSLATION: For the first time workers have rights and benefits and

:28:53.:28:56.

the elite don't like this because they no longer have a cheap labour

:28:57.:29:01.

force and slaves. The anti-government protests might have

:29:02.:29:04.

begun as a middle-class movement. One of its leaders is a former hedge

:29:05.:29:10.

front manager. Today he told us their appeal is broadening. Over the

:29:11.:29:13.

last few days you could see absolutely everyone coming to the

:29:14.:29:19.

streets, because the outrage is penetrating all of society. It

:29:20.:29:22.

doesn't matter the social or economic level. Barack Obama once

:29:23.:29:28.

called Lula the most popular politician on earth. Now

:29:29.:29:33.

demonstrators are willing to face water canons to demand he go on

:29:34.:29:36.

trial and his hand-picked successor stand out. Brazilians are coming to

:29:37.:29:42.

the conclusion their political culture is rotten. So rotten, even

:29:43.:29:47.

their most revered heroes seem not to be immune.

:29:48.:29:51.

That's it from Newsnight, but now for Artsnight.

:29:52.:29:53.

In the last episode in this run of the series, artist Ryan Gander

:29:54.:29:57.

looks at the links between everyday life and creativity,

:29:58.:29:59.

and travels to Berlin to meet Olafur Eliasson,

:30:00.:30:02.

who famously created a giant sun in Tate Modern's Turbine Hall.

:30:03.:30:10.

Everyone has the capacity to be creative.

:30:11.:30:13.

We all do things in our lives that are artistic, whether we realise

:30:14.:30:17.

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