:00:07. > :00:16.parse up on Greece and the ILO on unemployment. -- the pressure piles
:00:16. > :00:22.up. It is time for World Business Report.
:00:22. > :00:28.Welcome. The headlines: The head of the Eurogroup ups the ante by
:00:28. > :00:31.saying the Greek debt programme is off track because -- and needs a
:00:31. > :00:35.deal. One in three workers worldwide are either unemployed or
:00:35. > :00:41.living in poverty. The ILO lays down the challenge for the global
:00:42. > :00:46.economy to create 600 million jobs in a decade. Japan warns it will
:00:46. > :00:56.miss its goal to reduce its massive debt burden, the biggest in the
:00:56. > :01:00.
:01:00. > :01:04.The European Union has piled the pressure on Greece by saying it
:01:04. > :01:10.needs to reach a deal with his private creditors within days. This
:01:10. > :01:17.is crucial if Greece is to receive a second Euro rescue plan and avoid
:01:17. > :01:19.a default. Trying to solve the debt crisis remains higher on the agenda
:01:19. > :01:24.for the 17th eurozone finance ministers who are in Brussels and
:01:24. > :01:28.meet again later today. Here is what the President of the Eurogroup
:01:28. > :01:35.hat to say in the early hours of this morning ahead of the meeting.
:01:35. > :01:45.-- had to say. We reviewed the process of the consultations
:01:45. > :01:46.
:01:46. > :01:49.between the Greek government and the creditor groups. There were
:01:49. > :01:56.discussions about the new adjustment programme. We welcomed
:01:56. > :02:00.the increase convergence and asked the Greek government to reach in
:02:00. > :02:10.the next few days a common understanding of the main terms and
:02:10. > :02:15.conditions of the offer. I am joined by a managing director
:02:15. > :02:20.of a year -- and economic think that. This is all very exhausting.
:02:20. > :02:26.They have been discussing this for days. It is alarming. The important
:02:26. > :02:36.decisions being made are being made by affect heat leaders in the early
:02:36. > :02:36.
:02:36. > :02:40.hours of the morning. Absolutely. - - by tired leaders. In terms of the
:02:40. > :02:45.negotiations about debt, obviously the detail is being grappled with.
:02:45. > :02:49.Interest rates on the bond swaps... We have talked about this for a
:02:49. > :02:57.long time. You would have thought that they would have nailed this
:02:57. > :03:01.down, wouldn't you? Absolutely. The interesting thing is that whichever
:03:01. > :03:05.rate unfolds, decision time is looming large. Hopefully we will
:03:05. > :03:13.not have to talk about this for months to come. In one way or the
:03:13. > :03:18.other it will get resolved. Between the two options, having a proper
:03:18. > :03:23.deal to the extent that it is voluntary, or even having an ad hoc
:03:23. > :03:27.restructuring of Greek debt, between them, this is not going to
:03:27. > :03:32.have a very major impact on the eurozone crisis. That is primarily
:03:32. > :03:39.because the bigger problems lie in Spain and Italy. Greece has to some
:03:39. > :03:43.extent become a sideshow. The head of the Eurogroup just said that the
:03:43. > :03:49.programme is off-track. What does he mean? Greece is not meeting its
:03:49. > :03:53.deficit programme targets. It is not meeting the other targets that
:03:53. > :03:57.the IMF and the European Union has set it in terms of structural
:03:57. > :04:01.reform. There are two tracks. One is in negotiation with the private
:04:01. > :04:05.bondholders. The other is the economic programme which the EU and
:04:05. > :04:13.the IMF are funding. Right now neither of them looks to be in
:04:13. > :04:16.great shape. We have delivered there. Thank you. -- we have to
:04:17. > :04:22.leave it. We are keeping our Lionel of those negotiations in Brussels
:04:22. > :04:26.and Athens. Hungary's controversial Prime
:04:26. > :04:30.Minister will try to rebuild bridges today when he meets the
:04:30. > :04:38.President of the European Commission. The talks will focus on
:04:38. > :04:44.whether Budapest can qualify for a badly needed line of up to $25
:04:44. > :04:49.billion. -- the loan. The commission says Hungary must
:04:49. > :04:53.reconsider new rules. So Saudi Arabia's Cabinet says it
:04:53. > :04:57.will approve efforts to develop oil and gas co-operation with China.
:04:57. > :05:01.This follows a visit by the Chinese Prime Minister to the world's
:05:01. > :05:04.biggest exporter to oil. During the visit the Chinese Prime Minister
:05:04. > :05:09.pressed Saudi Arabia to open its markets to Chinese Investment.
:05:09. > :05:14.The US has added another Iranian bank to its list of sanctions.
:05:14. > :05:17.Iran's third biggest bank has been blacklisted for providing financial
:05:17. > :05:20.services to Iranian banks and companies that are under
:05:20. > :05:26.international sanctions for their involvement in the country's
:05:26. > :05:31.nuclear programme. The world is facing an urgent
:05:31. > :05:35.challenge and needs to create 600 million jobs to generate growth and
:05:35. > :05:39.maintain social cohesion. That is according to the International
:05:39. > :05:46.Labour Organisation, which says there are 27 million more
:05:46. > :05:49.unemployed workers and at the start of the global economic crisis. --
:05:50. > :05:55.than that. It says better jobs need to be great Kate -- need to be
:05:55. > :06:03.created for those living be up -- living below the poverty line.
:06:03. > :06:08.Let's speak to director of the ILO's analysis department. Thank
:06:08. > :06:17.you for being on the programme. The unemployment picture globally is
:06:17. > :06:27.worrying. Tell us more about the report. The most worrying thing is
:06:27. > :06:30.the fact that 27 million jobs... The worrying thing is despite the
:06:30. > :06:34.stimulus, which has managed to tread water and just keep up with
:06:34. > :06:41.the rate of growth of the labour force, we have not managed to
:06:41. > :06:44.reduce the deficit created by the crisis of 27 million jobs. We have
:06:44. > :06:50.a serious problem of growth and employment. It seemed like the
:06:50. > :06:55.stimulus was going to raise growth and did so. It raised jobs by a
:06:55. > :06:58.little bit just to keep up with the labour force. The problem is, the
:06:58. > :07:04.backlog relax -- the backlog remains. And growth has dipped
:07:04. > :07:09.again now. We worry about his best but be. Then there is the longer
:07:09. > :07:13.term challenge over the next decade. Every year, approximately 40
:07:13. > :07:23.million people are added to the lambda force demographic. -- the
:07:23. > :07:25.
:07:25. > :07:35.labour force. 40 million people every year for another decade is
:07:35. > :07:36.
:07:36. > :07:44.400 million. We have a backlog of 200 million. That is 600 million.
:07:44. > :07:48.We have to leave it there. We could discuss that a lot further. But we
:07:48. > :07:52.have to move on. This story about Japan. It is
:07:52. > :07:56.warning it will miss its goals to reduce its debt mountain, the
:07:56. > :08:03.biggest in the world, even if it doubles the nation's sales tax.
:08:03. > :08:08.Rico Hizon is in Singapore. What is happening? You have the Prime
:08:08. > :08:15.Minister and his party wanting to raise the sales tax that 8% in
:08:15. > :08:20.about two years. And then to 10% in three years. The Cabinet Office
:08:20. > :08:23.this doubt it will be enough to contain the massive debt. As a
:08:23. > :08:27.result you have the government probably missing its goal of
:08:27. > :08:31.balancing the budget by 2020. They stressed that further fiscal
:08:31. > :08:36.improvements would be necessary to meet the goal in about eight years.
:08:36. > :08:46.Measures to raise the sales tax are still just plans. Many lawmakers
:08:46. > :08:55.
:08:55. > :09:01.oppose the increase -- increase. Thank you very much. Very much.
:09:01. > :09:11.Let's look at the markets quickly. Asia. A little bit of optimism
:09:11. > :09:17.
:09:17. > :09:27.there. Japan and Taiwan are slightly higher. The euro today
:09:27. > :09:32.falling. As far as Europe is concerned, bookies are mixed about
:09:32. > :09:36.how the trading day will begin given the stalemate, or lack of
:09:36. > :09:41.progress seen in a Europe at the moment. That's all from me on World