18/06/2012 BBC World News

Europe's leaders welcome the result of the Greek elections, but call on

the leader of the party... In Spain, bonds reach an unsustainable 7%.

Europe's -- Li's military rulers give themselves sweeping powers.

Welcome to BBC World News. Also in the programme - deterioration in

security on the Israel-Egypt border, at least two people are dead. And

police are investigating a complaint of alleged assault

against tennis player David Nalbandian after a line judge was

Efforts are under way in Greece to form a new government after

yesterday's victory by the pro-bail out New Democracy party. But most

stock markets are down this morning. In the all-important bond markets,

borrowing costs for Spain and Italy have jumped again. Relief at a

result that came down to the wire. The centre right New Democracy

clinched victory, delighting its supporters. The party has vowed to

keep Greece in the euro by broadly honouring the conditions of the

international bail-out. Today, the Greek people expressed their will

to stay anchored with the euro, remain an integral part of the

eurozone. But Alexis Tsipras came a close second with his leftist

SYRIZA party. It campaigned on an anti-bail out platform, and he said

his party would not be silenced. TRANSLATION: We will continue our

struggle on Monday, because we know that the future is not for those

who are in fear, but for those who carry on hoping. The results show a

deeply divided country. Parties opposed to the bail-out have

attracted the victims of the crisis, and are now presenting a strong

anti-austerity front in opposition. That could trigger social unrest if

more cuts are announced. And so the wrangling to form a government now

begins. Antonis Samaras will reach out to the Socialists and others.

Europe's leaders will breathe a sigh of relief at this result. They

had been fearing that the euro could be fatally undermined. They

are likely to discuss the result at the G20 meeting in Mexico later

today. Already, Berlin has suggested the terms of Greece's

bail-out could be somewhat softened. This exhausted nation has decided

to bite the bullet, but the path ahead will be painful, and the

voice of dissent here is growing louder. Our correspondent is live

in Athens - what is the latest on how difficult it is going to be to

form a new coalition government? Well, Antonis Samaras has now

formally received the mandate from the President to try to form a

government. He is meeting with the President, as well as Alexis

Tsipras, the second placed leader, this afternoon. Alexis Tsipras is

expected to reject the offer of serving in any government which

supports the bail-out. Later on there will be a meeting with the

leader of the Socialist Party, Evangelos Venizelos, which could be

a natural coalition partner for New Democracy. Numerically speaking, it

could be a simple coalition between New Democracy and PASOK, because

they both broadly support the bail- out. Together, they would have a

majority of 12 in Parliament. But given that there is a widespread

desire for a stable government here, and that there was such support for

anti-bail out parties, I think that they will want to bring more

parties into the coalition, in order to stand a chance of lasting

longer than just a few months. Another big question is whether

there will be a readjustment in the austerity measures which Greece is

forced to carry out, given that SYRIZA did get around a third of

the vote. Any new government has to carry the population with it?

do, and Antonis Samaras has said that he wants a renegotiation of

some of the terms of the bail-out. His party signed up to the bail-out

in the first place, but he has recognised that it would be simply

impossible for Berlin, Brussels or Paris to try to stick to the

austerity plan to the letter. There is such a feeling of exhaustion

here with austerity, with cost cutting. This country has got

record unemployment, a third of Greeks pushed below the poverty

line after that toxic mix of recession and austerity. So, the

line of Antonis Samaras to the EU will be, we have decided to accept

more pain and more austerity, but you must now try to lift the foot

off the pedal of austerity, to cut us some more slack. Already, the

signs from Berlin are that they are willing to make more concessions.

The German Foreign Minister said last night that he was willing to

agree to extend the period for the repayment of the Greek loans. But I

think there will be a lot of haggling now to try to get to some

kind of compromise, to lessen the pain of austerity in the months

ahead. We have been looking at market reaction, we had a spike,

but then things pulled back again. Absolutely. This haggling back and

forth between whatever Greek government is formed, and of course,

Angela Merkel, the other leaders of the eurozone. This is what the

markets are considering. We have seen this before. We have had small

blips of good news, the markets cheering, and then within the hour,

they start thinking, hang on, there's still big problems. For

that reason, we have seen the markets turn their attention once

again back to Spain. That is a worry. In fact, the cost of

borrowing for the Spanish government last Thursday hit an

all-time high, more than 7%. It dropped, but today, it has gone

back up over 7% again, even higher than it was on Thursday. That is

markets and investors very worried, basically telling Spain, this is

too expensive, and that those kind of levels, it is unsustainable. So

the markets will remain volatile. This is what the experts had to say

to me earlier about this whole matter.

This rally, if you had overslept, you would have missed it.

Essentially, the markets are, as you say, focusing on the much

bigger problem of Spain. But more than that, if we go back to Greece,

obviously, the new government, as could become they are now arguing

about who could potentially be the Prime Minister. You have to ask

yourself, have they got their priorities right? Surely the

priority is to form a government, not until about to the Prime

Minister will be. With Greece, many are saying, the last thing for a

government which has got debt up to its eyeballs would be to borrow

more money. Many are suggesting that the eurozone governments need

to be able to write off a big chunk of that - is that the case, do you

think? I think that will eventually have to happen. Most definitely.

There will need to be what we would call official sector involvement.

At the moment, the size of the debt pile, given the contraction in the

Greek economy, the fact that youth unemployment is over 50%, these

bail-out commissions so that in conditions are way too onerous for

an economy which is actually imploding. Portugal and planning

have basically met all their fiscal targets, and they are not getting

any preferential treatment. So if they see Greece getting

preferential treatment, they are perfectly entitled to what exactly

the same thing for doing the right thing. Let's stay with that story,

because the chairman of the Athens Chamber of Commerce and Industry,

Constantine Michalos, said the right party had been chosen.

were always in favour of the pro- European vote, and this is exactly

who prevailed last night. The pro- European political power was

prevailed. Today is an extremely important day, because the leader

of New Democracy, Antonis Samaras, has to form a strong coalition,

including representatives of both sides of the political divide. Both

sides must be part of the coalition. They can then take their political

agenda to Berlin and Brussels, to start to renegotiate those parts of

the bail-out agreement which will bring stimulus into the economy. We

have said it in the past, you cannot have austerity upon

posterity. It is evident, it is not just a Greek problem. You have just

reported on the Spanish situation, and unfortunately, it will get

worse unless we change the economic recipe, and Mrs Merkel has to

understand this. The world's top economic powers start their two-day

meeting in Mexico today. Everything we have been hearing about comes at

a crucial time for the global economy. Our correspondent reports

from Mexico. Security guards outnumbered holidaymakers at this

resort, as world leaders started arriving. There has to be Co

ordination. Before the Greek election results came in, one of

the key players in the global economy, the head of the

International Monetary Fund, Christine Lagarde, addressed

business leaders. If I can make a suggestion to the G20 leaders, and

those who represent the private sector, it is to be as blunt as you

can with the G20 leaders. One of those listening was this man, from

the International Chamber of Commerce, who is most concerned

about the lack of economic growth. All countries are linked by trade

and investment and other activities, and yet we have no tools to manage

a globalised economy. One of the biggest challenges is how to create

jobs. With more than 75 million young people out of work worldwide,

students at this school are nervous about the future. There was a lot

of competition. I think it will be hard to find a job. This local

businessman runs a company that makes windows. Four years ago, the

financial crisis hit him hard, and he was forced to lay off half of

his staff. Now he wants leaders meeting in his home town to set

aside national interests and work together. I believe they need to be

open and honest to what the solution is. Everybody has to

forget their egos, their powers. For the next two days, this is

where the meeting will take place. When Europe's leaders arrive, they

will face lots of questions about what action they are taking to

tackle the continent's debt crisis. But all of the leaders are facing

one common challenge - how to promote economic growth around the

world. Let's have a look at the markets.

We have seen a bit of a bounce back, but nothing like the euphoria that

we saw earlier. The Spanish, Italian, Irish and French borrowing

costs have all gone up. That's the business news. One wonders, how

many G20 leaders want to be photographed on a beach next to a

palm tree?! We have got some news just in on the question of Syria.

One Russian news agency is saying that Moscow is preparing to send

marines to Syria in the event that it needs to protect personnel and

remove equipment from its naval facility in its Mediterranean port.

Syria is Russia's firmest foothold in the Middle East. It is the only

permanent warm-water port outside the former Soviet union which the

Russians can use. So, reports that Russia is preparing to send marines

to Syria. Coming up on the programme - why a third of India's

Now, here in Britain a new report into the PIP breast implants has

concluded that they have twice the rate of rupture of other implants,

but that the silicone used is not likely to cause harm. Well, the

review found although the implants were made with unauthorised

silicone filler, the filler is not toxic nor carcinogenic.

She may not look it, but at her home near Darlington, Gemma Pepper

is a worried woman. She had PIP implants after years of breast-

feeding changed her body shape, but one of them is torn.

As the implants had the European CE approval mark, she says that the

Government should ensure that all PIP implants are replaced.

The best case scenario is for the Government to say that they have --

like they have done in Wales, is to take every pair of implants out as

they gave it a CE mark. I don't think that will happen. If they

declare them dangerous, then the clinics then have to step up.

But the report today concludes that PIPs are not toxic. Although they

have double the rupture rate of other implants that still should

not cause long-term health problems. PIP implants were made from

industrial grade material, never approved for medical use, but the

Government and private clinics involved have said that there is no

need to have them removed. The report reinforces that position.

We don't know what we've been told. Toxic PIPs have to go.

That is unlikely to be a comfort to these women. They marched in London

demanding action. They still feel that their health is at risk and

and Government should help, but it seems that Gemma Pepper and most of

those women like her will have to live with their implants or pay

thousands of pounds for replacements.

A group of six world powers is holding talks with Iran over its

nuclear programme. The meeting in Moscow is being held over two days.

The West says it is prepared to offer help with nuclear safety

measures, but Iran wants the international community to lift

sanctions which have been crippling for the country.

Increasing levels of obesity around the world could have the same

impact on global resources as an extra 1 billion people living on

the planet, according to research by scientists at the London School

of Hygiene & Tropical Medicine. Researchers say that 6% of people

live in North America, but they are responsible.

This is BBC World News. The headlines:

The New Democracy party has won a slender victory in Greece's general

election but will need to form a coalition.

And Greece's election results have not persuaded the financial markets

that the Euro problem is under control. Concerns about government

debt in Spain have resurfaced. In Egypt, the ruling military

council has given itself sweeping power as -- powers at the counting

is continuing. The Muslim Brotherhood describes this as a

coup. The BBC's Mary MacAleese is in

Cairo over looking -- Lyse Doucet is in Cairo, overlooking Tahrir

Square. What is happening here today? Are

the people out in celebration? I'm overlooking Tahrir Square,

regarded as the birthplace of the Egyptian revolution, that is where

they toppled Hosni Mubarak, now it has become the place of protest.

There is more of a traffic jam there at this time of day. Some are

in celebration, but most are trying to get about their day-to-day

business. There are hundreds of people in the square. There are a

lot of Egyptians flag-waving, but a lot of flags of the Muslim

Brotherhood. Talking to people, they are convinced that their

candidate, Mohammed Morsi has won this election, raising the question,

what if he has not? How will the mood change? The vote count is not

over, the supporters of Ahmed Shafiq are insisting that they have

won the election, and some Egyptian television stations are beginning

to show results that Ahmed Shafiq is in the lead. So we have to wait

for confirmation to see exactly who is going to be the new President,

but what we do know for certain is whoever becomes the President has

far fewer powers than that of the ruling Military Council which last

night announced by decree a range of sweeping powers for itself,

making it clear that it will control the President, not the

other way around it will control also what is meant to be a

transition to civilian rule, but that will take many months and the

army has give an press conference in which they tried to send a

message for the Egyptians to trust them, but for a lot of Egyptians

that trust is in doubt after the announcement last night.

Should we be surprised, therefore, not to be seeing more people

protesting at this effective takeover of power? I think the

people who used to fill up Tahrir Square have for some time been

reflecting on what's gone wrong with their chosen way of protest.

16 months on since Hosni Mubarak was toppled, it is clear that it

was the toppling of a President, but not the old regime. Some, many

Egyptians are saying that the time for protest is over, they want to

get on with daily life. So there is no so much of an automatic reaction

of going to the square, but as the day goes on, when we get a clearer

idea of who won the election and how the main political movement

such as the Muslim Brotherhood and some of the other groups calling

for protest, we will then get an idea to the reaction to the army's,

essentially grab for power, that some have called a military coup.

Thank you very much. The Israeli authorities have closed

a main road along the southern border with Egypt, after a raid

resulted in the death of a civilian worker.

The Israeli Defence Minister says there is a deterioration in

security on the Egyptian side of the border. He urges the country's

new leaders to end the attacks. The main concern for Israel is the

worsening situation along its southern bored we are Egypt. Israel

is in the process of building a 200 kilometre-long fence it keep out

smugglers and migrants, but also as Israel says that the worsening

security situation in Egypt, means that militants are getting out of

Gaza, down into the Sinai and using the Sinai desert to attack Israelis

in the south. That is what is happening. This morning a bomb or a

rock elt was fired by militants it killed -- rocket was fired by

militants. It killed an Israeli. We understand that the incident is

over, but the Israeli government is concerned about the developing

crisis in the Sinai and what may happen depending on who gets into

power in Egypt. The police are investigating a

complaint of assault against David Nalbandian. The 30-year-old kicked

an advertising board at line judge during the AEGON Championships

yesterday. The official suffered a bloody shin. David Nalbandian has

been disqualified for unsportsman like conduct at Queeen's Club.

Today Britain and America are the closest of allies, but it has not

always been so. This week the Americans are marking the 200th

anniversary of the war of 1812. As well as defeating the British, the

war give the Americans its National Anthem and its flag.

The Star-Spangled Banner is a symbol of American pride it was a

victory over the British that gave it its name. Here at Fort Henry in

Baltimore, weeks after the British Forces burned down the White House,

they attacked the harbour. A lawyer named Francis Scott Key watched the

battle unfold and was inspired to write a song which became the

National Anthem. # O say can you see, by the dawn's

early light # What so proudly we hailed at the

twilight's last gleaming. # fact that the flag remained. He was

looking to see are we to protect the symbol of our country, are we

going to protect it? That is what he was looking for. That is what we

are doing today. What they were going through that day, the bombs

bursting, they are in battle. It gives you goose bumps.

The battle was a turning point in the -- point in the war in 1812 it

was marked a victory for the Americans and then began a lasting

peace. The two nations have worked closely

together and hopefully will continue to do that in the

centuries to come. The Americans British over --

victory over the British has been marked00 years later on.

There is no shortage of pride in The Star-Spangled Banner, America's

anthem and its flag. To India and a staggering

statistics. Around a third food produced in India is wasted.

Despite record harvests and successful farming, so why does

this scandal continue? Vegetables and fruit, rotting away at the

Baikaler Market in Mumbai. Shopkeepers here say that a lot of

food is wasted as it is passed down the supply chain from the farms to

people's homes. TRANSLATION: About a half of the

stock we buy from the wholesale market is spoiled before it reaches

the stall. Especially in the mon seen season when exposed to the

rain. -- monsoon. Poor quality distribution and

inefficiency is wasted. Even the government has admitted a

shortage of space, but it is a problem that India faces year after

year. Most food warehouses are leased by the governments by

private companies, but there are not enough of them. A poor quality

of distribution in the system adds to the problem and a third of fresh

crops are wasted each year. India is the second-largest food producer

in the world, but the country has seen prices rising rapidly. After a

bumper wheat production, a panel set up to deal with the problem of

grains going to waste as suggested to export the products at a

subsidised rate. The inability to dies Bute this is

a big policy failure, not just of this government, but succeeding

governments down the year. It is almost genocidal in its negligence,

a country where so many people are dying of starvation and where

almost half of the children are malnourished to have this foods

wasting in go-downs, it is unacceptable. Critics say there is