angela merkle said this just before the summer. she has linked the two. it is the central project in the whole history of the european union, the core back down now, as many see it. even though not all member states share the single currency, i can see emotionally what she says. that could be the end product. >> as always, we appreciate your analysis. german chancellor angela merkle headed to the summit just hours after the bundestag approved expanding the bailout fund. she got crossed party support and a major majority within her government coalition. she said the eyes of the world war in europe for the worst crisis since the end of the second world war. german involvement in the bailout fund will not exceed 211 billion euros. our political correspondent, simon young, joins me now in the studio to talk more about today's vote. i want to ask you -- why was this vote so important today? >> chancellor merkle says she wants to create a new culture of stability. this gives her a strong mandate to go to brussels and negotiate. in particular, it gives her broad

. >> into the merkle laid out the plan to german lawmakers at the chancellor's office. according to those present, the numbers are huge. greece will get a write-down of its debt. to fund it, banks will need big reserves of new capital. >> the german government believes tha banks will need 100 million euros in new capital. the figure for german banks is around 5.5 million euros in fresh capital. >> that will shield them from possible losses. this and other measures have broad support from the opposition. but the greens and social democrats say they need more information before reaching a final verdict. >> it is only right that today the government finally announced the plans will not be discussed secretly, tucked away in committees, but in the main chamber. parliament will vote on the plans. that is a key criterion for reaching a decision. >> the chancellor will address parliament wednesday morning before lawmakers vote. the outcome will be another crucial test for merkle on decision day for the euro. >> another big question is contagion and who might be next. >> its lea

. >> into the merkle laid out the plan to german lawmakers at the chancellor's office. according to those present, the numbers are huge. greece will get a write-down of its debt. to fund it, banks will need big reserves of new capital. >> the german government believes that banks will need 100 million euros in new capital. the figure for german banks is around 5.5 million euros in fresh capital. >> that will shield them from possible losses. this and other measures have broad support from the opposition. but the greens and social democrats say they need more information before reaching a final verdict. >> it is only right that today the government finally announced the plans will not be discussed secretly, tucked away in committees, but in the main chamber. parliament will vote on the plans. that is a key criterion for reaching a decision. >> the chancellor will address parliament wednesday morning before lawmakers vote. the outcome will be another crucial test for merkle on decision day for the euro. >> another big question is contagion and who might be next. >> its le

german chancellor angela merkle is seeking full support at home on the expansion of the eurozone bailout fund. the parliamentary vote is due wednesday, just before she heads into a crucial summit. she is looking to secure a strong mandate before she heads into negotiations aimed at stopping the debt crisis from spiraling out of control. >> chancellor merkle wants to be in a strong position when she heads to the summit on wednesday, and she looks like she is getting the support she needs. government deputies overwhelmingly backed the bailout package in a test vote on tuesday. parliament is set to follow suit. >> this represents an enormous strengthening of the german government, the german chancellor's position in brussels, because it will show that what we are calling for has broad support in the german parliament. >> the opposition social democrats and greens are also likely to vote for the package, although they are unhappy with the government pay for crisis management. >> i will be honest. this government makes things more difficult from time to time, because, and you have seen it you

german chancellor angela merkle is seeking full support at home on the expansion of the eurozone bailout fund. the parliamentary vote is due wednesday, just before she heads into a crucial summit. she is looking to secure a strong mandate before she heads into negotiations aimed at stopping the debt crisis from spiraling out of control. >> chancellor merkle wants to be in a strong position when she heads to the summit on wednesday, and she looks like she is getting the support she needs. government deputies overwhelmingly backed the bailout package in a test vote on tuesday. parliament is set to follow suit. >> this represes an enormous strengthening of the german government, the german chancellor's position in brussels, because it will show that what we are calling for has broad support in the german parliament. >> the opposition social democrats and greens are also likely to vote for the package, although they are unhappy with the government pay for crisis management. >> i will be honest. this government makes things more difficult from time to time, because, and you have seen it yours

i have spoken with angela merkl. they want to act to prevent a sovereign debt crisis from spinning out of control. they committed to the european project. their politics is tough. because essentially they have to get agreement with not only their own parliaments, but they have to get agreement with 20 parliaments or 24 parliaments or 27 parliaments. and engineering that kind of coordinated action is very difficult. you know, what i have been seeing over the last month is a recognition by european leaders of the urgency of the situation. nobody is going to be affected more than they will be if the situation there spins out of control. i'm confident that they want to get this done. i think there are some technical issues they are working on in terms of how they get a big enough -- how do they get enough fire power to let the markets know they will be standing behind euro members who may be in a weaker position. they have to act fast and we have a g-20 meeting coming up in november. my strong hope is by the time of the

i have spoken with angela merkl. they want to act to prevent a sovereign debt crisis from spinning out of control. they committed to the european project. their politics is tough. because essentially they have to get agreement with not only their own parliaments, but they have to get agreement with 20 parliaments or 24 parliaments or 27 parliaments. and engineering that kind of coordinated action is very difficult. you know, what i have been seeing over the last month is a recognition by european leaders of the urgency of the situation. nobody is going to be affected more than they will be if the situation there spins out of control. i'm confident that they want to get this done. i think there are some technical issues they are working on in terms of how they get a big enough -- how do they get enough fire power to let the markets know they will be standing behind euro members who may be in a weaker position. they have to act fast and we have a g-20 meeting coming up in november. my strong hope is by the time of the

. >> the crisis management of angela merkle and nicolas sarkozy it was in focus all day, first cousin insecurity because nobody knew what they decided in their weekend meeting. then it was announced the use summit would take place a week later than scheduled. people here now imagine the decisions on how to solve the crisis are getting more concrete, perhaps driving deeper than imagined. before, that helped shares. that led to a rally. matire dropped back. the ceo declared he no longer wanted to be ceo of the group. that is causing insecurity, because people do not know who will be the successor, and whether he will be able to handle problem areas in the region. >> let us take a closer look at some of the market numbers. in frankfurt, and the dax took a huge jump up to close monday up over 3%, at 5847. the eurostoxx 50 was up more than 2.5%. the dow jones closed up more than 3%. the euro is trading for $1.3649. a strike by german air traffic controllers is on hold. they expect to have talks with the government on wednesday over pay and conditions. 2400 controllers could walk off the jo

merkle or myself were in power when it was decided. it was a mistake. greece entered with figures that were false and they weren't ready. their economy wasn't ready for integration into the euro zone. it was a decision taken in 2001 and for which we are now paying the consequences. >> he did stress that he trusted the greek government to negotiate a part out of its debt crisis. but his comments provoked a defiant response from athens. >> greece is in the middle of the storm but is not the source of the problem. we see this with portugal, ireland, spain. we see the discussion happened. it doesn't have to scapegoat a particular european country. >> with the bailout front now heading to china to drum up support for the plan, mr. sarkozy said he had spoken to his chinese counter part. president sarkozy said he would welcome fresh investment but was sure that europe could cope on its own. >> if the chinese who have 60% of the worldwide reserves decide to invest in the euro rather than the dollar then why we fuse? after all, there's nothing to negotiate. our

angela merkle says your country has brought greece to the brink of crisis. it is not an easy pr job you have. >> it is not. but i do not feel i am doing that for greece. i feel i am discussing with everyone the importance we have as europeans to stick together. europe's power is the euro and the solidarity, in addition to responsibilities to each other. greece may be in the center of the storm today, but this is not a great problem. other countries have already recognized with portugal, italy, spain, and ireland. this is a european issue. scapegoating greece is not the solution. greece making changes is crucial to help bring europe closer to what it should always be -- the union that together is more powerful than almost anyone. a union that divided can be weak. what happened yesterday is the you prove that not only it can, but has the political will, to move to protecting the euro, greece, and itself. >> thank you for coming in. in other news around the world, a prisoner exchange between egypt and israel has concluded successfully. the american-israeli ilan

. >> chancellor merkle made it clear germany is ready to move toward recapitalizing banks, if necessary. in general, she speaks of a step-by-step approach. some people will not like that, but they have to lump it. a solution still rests with europe's richest country, germany. bbc news, brussels. >> hundreds of protesters have gathered in new york for a demonstration against wall street, shouting slogans against inequality. they urged the financial sector to contribute further toward economic recovery. demonstrations are in their third week, and show no signs of fading. >> what started as just a handful of protesters has grown into this. thousands of demonstrators in lower manhattan on wednesday, protesting against wall street and economic inequality in the u.s. "i am a registered nurse. i have been coming here the last two weeks. we are occupying wall street to stand up against what is going on. we are bailing out the banks. what about middle-class americans who struggle to find employment? >> we can no longer have a middle-class. the rich get richer. the poor get poorer. >> the demonst

i speak frequently with chancellor merkle and president sarkozy. they are mindful of these challenges. i think they want to act to prevent a sovereign debt crisis from spinning out of control or seeing the potential breakup of the euro. i think they're very committed to the european project. but their politics is tough. because, herbally -- essentially, they've got to get agreement with not only their own parliaments, they've got to get agreement with 20 parliaments or 24 parliaments or 27 parliaments. and engineering that kind of coordinated action is very difficult. you know, but what i've been seeing over the last month is a recognition by european leaders of the urgency of the situation. and nobody's, obviously, going to be affected more than they will be. if situation there spins out of control. so i'm confident that they want to get this done. i think there are some technical issues that they're working on in terms of how they get a big enough, how do they get enough firepower to let thearkets know that they're going to be standing behind eur

the opposition this germany is even stronger in favor of it than chancellor merkle's party. so i, it's a risk that we these to keep our eyes on. it could happen, but i would say watch what the germans do, not what they say. >> dr. makin. >> i always know when i'm with fred i'm getting demoted from dr. makin. >> just shows you what good friends we are. [laughter] >> again, looking at germany, germany has been a great bicep fishery of the monetary union, but, but now that the financial complications of the currency area have begun to jeopardize the stability of the financial system and you have a failure of a major financial institution two weeks ago in belgium, german economic activity is slowing rapidly partly, i would argue, because things are slowing in china, but also partly because the european citizens pick up the paper every day, and they look at the headlines in greece, and they look at what's going on, and they know that something's not working. so i understand -- and i think if we listen to german leadership carefully over the past several weeks, i'm sure that they'

the opposition in germany is even stronger in favor than chancellor merkle's party. it is a risk we need to keep our eyes on. it could happen. but i would say watch what the germans do, not what they say. >> i think that, again, looking at germany, germany has been a great beneficiary of the monetary union, but now that the financial complications of the currency era have begun to jeopardize the stability of the financial system and you have the failure of a major financial institution two weeks ago in belgium. german economic activity is slowing rapidly, partly i would argue because things are slowing in china, but also because german citizens pick up the paper every day and look at what is happening in greece and they know that something is not working. i think if we listen to german leadership carefully over the past several weeks, i am sure they are contemplating their options. the german finance minister said default may be necessary. the german public was never asked -- was never permitted to vote on germany joining the currency union. german elites are powerfu