:00:05. > :00:15.manslaughter. Those are the latest headlines for
:00:15. > :00:26.
:00:26. > :00:33.The headlines: World leaders scrambled to contain the eurozone
:00:33. > :00:38.debt crisis as Greece's government teeters on the brink.
:00:38. > :00:42.I am at the G20 summit in Cannes. World leaders are trying to beef up
:00:42. > :00:46.the power of the International Monetary Fund, such that it can
:00:46. > :00:52.stop the contagion to countries such as Italy and Spain within the
:00:52. > :00:55.eurozone. Asian markets rise as Greece drops
:00:55. > :01:00.plans for a controversial referendum.
:01:00. > :01:06.Plus a new way of doing business or a new dot-com bubble? Loss-making
:01:06. > :01:16.website Groupon has as -- is having its Nasdaq debut with a valuation
:01:16. > :01:20.
:01:20. > :01:25.of almost $13 billion. They had hoped to present a united
:01:25. > :01:28.front and a solution to the eurozone debt crisis, t crisis,
:01:28. > :01:33.leaders at the G20 summit I in damage limitation mode as they face
:01:33. > :01:36.the possibility that the political turmoil in Greece would force it
:01:37. > :01:42.out of the euro and threaten the single currency. Talks on Friday
:01:42. > :01:46.are expected to focus on beefing up the power of the IMF, to provide a
:01:46. > :01:55.fi fire Walk, basically to protect the likes of Italy and
:01:55. > :02:01.Spain in the event of a Greek default.
:02:01. > :02:08.It is damage limitation but it is trying to beef up the IMF. So we
:02:08. > :02:12.had these very hefty firewalls in place. It was always accepted that
:02:12. > :02:17.Greece in itself was going to be a containable problem, the debts of
:02:17. > :02:22.Reiss which amount to something of a third of a trillion euros. If
:02:22. > :02:27.confidence was lost, in Italy and Spain, it was understood that that
:02:27. > :02:34.would not be a containable problem. Italy is the third largest economy
:02:34. > :02:39.within the eurozone. So you look at the firepower of the stability
:02:39. > :02:43.facility, which at the moment st ste trillion, and A Bit
:02:43. > :02:50.Of mask shows you that the numbers do not stack up. Contagion is
:02:50. > :02:54.exactly what is happening right now. Greek crisis have led raids on
:02:54. > :02:59.Italian sovereign borrowings, so what the government pays to borrow
:02:59. > :03:03.on the markets, too well in excess of 6%. It was always understood
:03:03. > :03:07.that 6% was some kind of turning point, that that would be
:03:07. > :03:12.unaffordable for Greece, it is paying that much on its debt, it is
:03:12. > :03:17.possible that it cannot afford to be finance it. You might find that
:03:17. > :03:22.it will be unable to pay its domestic bills. So the contagion
:03:22. > :03:26.problem has already started. It is well under way. So the IMF, there
:03:26. > :03:32.is talk about boosting the firepower of the IMF in order that
:03:32. > :03:39.he can try to contain the problem. That is going to be the challenge.
:03:39. > :03:47.A big challenge indeed. Reiss's teacher in the euro could
:03:47. > :03:51.hinge on this confidence vote in parliament in Athens today. We have
:03:51. > :04:00.a professor of economics at Athens University. Also a spokesperson for
:04:00. > :04:04.the European Council. I guess the big question, what in
:04:04. > :04:13.the world is going to happen today? Can decree government collapse
:04:13. > :04:20.today? -- the Greek government. It is is isn really tell.
:04:20. > :04:29.Most people expect that it is going to be a smooth transition, so the
:04:29. > :04:34.party and the opposition will find a way to have a temporary coalition,
:04:34. > :04:40.which is going to vote on the October agreement with the European
:04:40. > :04:45.Union. After that, there is going to be elections called in about 4-5
:04:45. > :04:50.months. That is the most probable scenario. Right now, there is a
:04:50. > :04:53.little bit of a game of chicken, where the two large parties did not
:04:53. > :05:02.ing in this agreement. The main thing
:05:02. > :05:06.to stress is that regardless of all the tactical moves, the strategic
:05:06. > :05:10.decision of the vast mthe vast m the Greek people and the vast
:05:10. > :05:15.majority of the Greek political parties, is they do want to belong
:05:15. > :05:21.to the eurozone. In fact, that is why in the last couple of years,
:05:21. > :05:25.the Greek people had been extremely patient in accepting all types of
:05:25. > :05:35.extremely severe austerity measures, in comes had been decreased by
:05:35. > :05:35.
:05:35. > :05:45.roughly 40%, in some cases. Taxes have gone up. Four times, I'm going
:05:45. > :05:50.to stop you there. Anybody mentioned -- mentioning a
:05:50. > :05:56.member leaving the eurozone would likely be sent to the gallows. Is
:05:56. > :06:00.the eurozone preparing to cut loose Greece?
:06:00. > :06:06.In general, no. That is an extreme case scenario which remains
:06:06. > :06:11.unlikely. The mechanisms, there is a lot of talk, we have Angela
:06:11. > :06:18.Merkel, she has touted on it, Nicolas Sarkcolas Sark is a lot of
:06:18. > :06:28.talk about the mechanisms. Is there such a thing as the mechanisms to
:06:28. > :06:28.
:06:28. > :06:34.allow an exit? There are no mechanisms in the treaty. That
:06:34. > :06:38.would be a problem. But what has provoked in this discussion is the
:06:38. > :06:43.possibility that Greece, through a referendum or otherwise, might say
:06:43. > :06:49.no to a deal that was reached last week. What would the no actually
:06:49. > :06:54.mean? It can mean that no that deal is insufficient, we want more loads
:06:54. > :06:58.of a greater size, it could mean that, no, we do not want any
:06:58. > :07:03.assistance, we can manage by ourselves, all we are going to
:07:03. > :07:07.default, or possibly, we want to leave the euro. It is not what the
:07:07. > :07:16.Greeks themselves want. But it raises those sorts of questions.
:07:16. > :07:20.What does a no actually mean. That is why these questions come up.
:07:20. > :07:25.The headlines over to last couple of days have all been political.
:07:25. > :07:28.But at the end of the day, the fundamentals are still there.
:07:28. > :07:34.Whether the Greek government survives, at the end of the day, it
:07:34. > :07:39.is still going to struggle paying off its debt. That is . That is is
:07:39. > :07:43.where the October agreement comes in. This is the end of a long road
:07:43. > :07:48.in the last year and a half. Reiss has been trying to implement
:07:48. > :07:53.unprecedented measures and at the same time, the EU has taken a
:07:53. > :07:57.number of measures, what we are seeing right now is that we are
:07:57. > :08:03.trying to solve the problems that the eurozone has, and has had for a
:08:03. > :08:07.number of years, and the problems that Greece has had, nobody said it
:08:07. > :08:14.was going to be easy, but the progress that had been made in the
:08:14. > :08:20.last couple of years were very significant. But now it seems we
:08:20. > :08:25.are at the very last stage, and if the October agreement goes through,
:08:25. > :08:35.then this is an opportunity for a new start. As long as the
:08:35. > :08:40.
:08:40. > :08:47.politicians behave as they should. We are running out of time.
:08:47. > :08:51.The big question, how is all of this affecting the markets?
:08:51. > :08:58.We have seen a nice little bounce back on the markets. It is the
:08:58. > :09:02.first time in about five days. What is the driver? As you can imagine,
:09:02. > :09:07.it is the fact that Greece has now scrapped plans for that
:09:07. > :09:13.controversial referendum, certainly a very positive reaction. All
:09:13. > :09:20.across Asia, we are seeing the stock markets, some up as much as
:09:20. > :09:25.3.3%. Many investors are doing exactly like their European and
:09:25. > :09:29.American counterparts, rising on the news that there may not be a
:09:29. > :09:33.referendum. It is the first rise in five days in Asia. People that I
:09:33. > :09:38.had been talking to have been telling me that although Greek
:09:38. > :09:41.politics may be in disarray, the fact that the referendum has been
:09:41. > :09:47.scrapped, this potentially could mean that Greece could be closer to