Does he have the answers . Does he have what it takes, the political clout to kickstart an economy that is falling further behind . Thats will be beginning in the newsroom where the focus once again is squarely on syria. Lets say hello. How are you . Very well. Syria is donating. These are the headlines. Their probe says the Security Council must uphold its responsibility of chemical weapons. As the national Security Council bags action, urging us to wait. It has been 50 years since the i had a dream speech. Martin luther king will be at the very spot where Martin Luther king delivered his iconic ledge. The United Kingdom is pulling a resolution to the United States Security Council, authorizing necessary measures to russia has urged the west to wait for a report before introducing blame to chemical weapons usage. The uk proposal came as the foreign secretary said it is time the u. N. Shouldered responsibilities. We have to confront something that is a war crime and a crime against humanity. So, we continue to look for a strong response from the International Community that is legal and will deter the future use of chemical weapons. The order that the team of inspectors in damascus investigate three rebel attacks which he claims syrian soldiers held toys in his gases. Those inspectors were working this wednesday. They say they need another four days to investigate. We have more. U. N. Investigators cross into rubbleheld territory. It is accompanied by the syrian army. Witnesses here claim they were the victims of a poison gas attack last wednesday. Over 350 people are thought to have been killed. After initial hesitation, washington accused the civil government is not endorsed by the u. N. Although, it has also called for further consideration. We have analyzed the situation. There is, of course, understandable anger, but at the same time, reflection is necessary. The purchased Prime Minister is ready to take it a step further the british Prime Minister, david cameron, is ready to take it a step further. He is authorized measures to protect syrian civilians. A call for united response. Cannot be missing in action. The council must unify and act. Experts say they are unlikely to change that stance. I dont see how the counselor could be overcome. The decision remains. The u. S. Coalition is likely to bypass it. Allow time for inspectors to do their job. Their mission is expected to last another four days. Israeli media reports say the government there has authorized people to gear up for a possible retaliation. They were gas masks from various Distribution Centers set up across the country. Officials say demand has tripled in recent days. One u. S. Peacekeeper has been killed in the democratic republic of congo. This forces troops and eight region wrapped with violence in a region wrapped with violence. More than 50 people have been killed in a wave of bombings. Seven people died in one of the worst instances of car bombs. The attacks came primarily in the neighborhood during rush hour. Martin luther kings iconic i have a dream speech, president obama is set to get an address from the same spot in washington. Kings march for jobs and freedom is considered the moment that calls for reforms. Back in 1963, 250 thousand people came to washington to hear Martin Luther king demand equality for black americans. I have a dream. That my four little children will one day live in a nation what they will not be judged by the color of their skin but by the content of their character. I have a dream. It wrapped it was a turning point for the Civil Rights Movement putting it on the national agenda. Less than a year later, lyndon b. Johnson signed the Civil Rights Act which outlined segregation. Thousands of marchers converged on washington, d. C. Commemorating the anniversary. The rally was led by kings son and held for action on jobs, voting rights, and gun violence. This is not the time for nostalgic celebration. The task is not done. The journey is not complete. We can and we must to do more. Speakers paid tribute over the past five decades including barack obama as the first black president. On this anniversary, i am joined by a professor at duke university. Thank you very much for joining us. Martin luther king, of course, had a dream. As a sign that report, there is a lot of debate as to the extent it has come true. That is true. Do you want me to talk about that . I would. We have had a great deal of progress for people who are well off and educated. There is been an increase in the black middle class and a number of blacks Getting College degrees, but no change in the one third of the population of black people that are poor. Twice as many blacks are unemployed as whites. Not enough progress towards real Economic Equity with a combination of race and class discrimination. Where do you see resolutions coming from realistically . They will come from either spending a lot more money on childhood education, because that is where you change peoples possibilities, secondly, doing a lot more in terms of creating decent jobs, and moving much more aggressively toward a full employment equality economy. Thank you for joining us. We leave you now for some with some colorful scenes in spain where the tomato fest has been taking place inspired by a food fight in 1995 of children. This is the unusual sight of tomato juice mixing with rainwater. The event saw the clouds open for the first time. Time now for me to hand you over. Many thanks to the newsroom. France finds itself caught in the throes of the angstriddled last week. Backtoschool shopping. The foreboding of an office in trade. Enough to fade fast that summer tan. This year, reality is biting particularly hard. Frances socialist government raising efforts. In an interview over the weekend, the european vice resident has gone as far as it could with raising taxes. He wants to see a reduction of the bloated public sector. It rests on the strength of state owned or backed industries. The failure has the backing and the will to overhaul the state. Is reform possible in france . Welcome back. The Business Leaders association. Also with us, and economists with the thomas more institute. You can join the conversation on facebook and on twitter. The french will have to work even longer after partially rolling back the raising of the retirement age for those who started working very young. For most, itll will be more years of punching the clock. It is my responsibility to restore longlasting balance. To achieve this, there is no alternative but to extend the time that people pay into receiving a full pension. Extend the amount of time. No alternative. This is a Campaign Issue where he got a lot of votes by saying he would go back on the raising of the retirement age. In the uks a 67. 62 is where it is in france. Yes, but there is no43 years. Retirementge. It is a question of lengthening the contributions. You will not get as much of the pension. Depending when you stop working. They will be able to continue with a full pension at 60 or 62. I think that is extremely important in this rerm. We are financing the euros by extending the contribution. And increasing the contributions in a very progressive way. It is not an ideological debate about the retirement age because that makes no sense. That is a very pragmatic reform. It is very just. It is putting much more focus on women, on young people, on people who have very unskilled jobs and a very tiring jobs. They will be able to have a better retirement. I think that what you just said that is logical, people live longer. There can be change to at least 65 which is the average in europe. We have all of us trying to understand. Not touch this age of 62. The other point, which is very preoccupying for us, is that we would have in france 1. 7 of growth. We are flat for about three years running. And as we would have seven percent unemployment in franc above 10 . Even this reform could contribute more based on the very difficult we are not going to get to this adult. It is just a little one step which will all be going the same direction. This one, do we want to touch it, if not for ideological reasons. Im going to interrupt you for one second because we can go to the pair where the french Business Leaders association is holding its annual summer seminar and we are hoping to speak to our correspondent, to our Business Editor, who is there. Do we have a monday line with us . Not yet yet. We hope to speak to them in a moment. Just a word on this from you then. The raising of the retirement age was an ideological battle. This is common sense and all a step in the right direction now. Where will the retirement age really go . Give it to us straight. What the 65 in the end . The rest of europe is over with 65. How can you explain with the same economy sent different constraints . Maybe less different in germany but in england and other countries like that, how can you explain that we have such a different structul system where we retire at 62 and in the other country we are at 65. The french make more a beast. It is a nondebate. The real question that we are dealing with is the question of the length of years of contribution. You start working at 17 or 27, you are not going to retire at the same age. And why shouldnt, with 43 years of contribution, some in the start working at the teen, why shouldnt he be allowed to leave it 62 . Please answer the question because that is the real issue. No. It is a mathematical problem. That is what im saying. You start when youre 18 and worked at 43 years. Why should you stand to 65 . Let me finish, please. These 43 years of contribution will be in affect in 2035. So, what will happen from here until 2020, we will still be at 41. We will be in exactly the same system as of now. I want to remind you of something. Retirement age. The early 1980s. 1982. The Life Expectancy was 75 years. Now Life Expectancy is 82 years. Plus seven years. And the system the retirement age has just increased by two years. Is at the same for people who start working at 17 . No. It is not. You know very well. You are focusing on the very specific problem. The reality is today that those who start working early will leave at 6062. Those who start working measure will leave at 6560 seven, after they have contributed 41 or 43 years. It is not a question of ideology. [indiscernible] the left wing and the right wing have been difficult to deal with, the same. Every few years they are obliged to work on the situation. Which is normal, right . Because europe has an aging population. It is not normal. We are incapable to explain to our population what our politicians need. There is a demographic of reality. We have a European Market in all europe. 65 or 67 is an average age to leave and retirement. We should be able to do one big reform. We are obliged to start again. Do you take on board the idea of not speaking in terms of the retirement age . If it is not important to talk about the age of retirement, lets suppress it quest lets suppress it. You can have it off once and for all. When you say four to one years of contribution, the average age when people would stop working in france is 23. 23 plus 41 is 64. But we are not so far from the 65, but this is the average system. We are allowing people who start early to leave early and not contribute more because they are the ones who have the more physically commanding jobs best physically demanding jobs, usually. However, before the announcement was made, trade unions had already circled september 10 on their calendar. They will be protesting that day. The fact that there is real fear. Do you sometimes feel the conservatives in this country te of the aisle in parliament, rather in the trade unions and with some members of your own Political Party . And they are definitely on the righthand side of the parliament. I can can tell you that. Im competent confident they will come. They say they will be marching to keep things the way they are. The big difference between this reform is that there has been a social dialogue. I do not thats all here the animosity and anger as in the previous reforms. I am quite confident that it will not be a movement as strong as it was before. He often said if you want a painful reform, it is better to have the left in parliament. If you want peace, it is better to have the right. I just want one thing. Whatever government is in charge of our country, it has got to succeed. This government could be a real success. What has been done between trade unions and companies on the flexibility has been very good agreement. That is the benefit of our government. Unfortunately, a certain amount of other reforms have been under attack. Specifically, the states reform, so we do have a permanent increasing taxes but we have to have our the spending of the state. Unfortunately that is still to come. Too many taxes you say. We now can go to where they are having that summer seminar for french Business Leaders. Our Business Editor is out there. You just heard him saying that there is still the problem because the state has been in a form of rising taxes. Yet we have seen that some of those business taxes have been moved over. Do they have a beef, the Business Leaders . All they talk about here is tax help. Tax hell. That is the french companies. A one billion euros more of taxes than their european competitors. That is what they have been talking about today. What they want from the government is for the government to lower the taxes by 20 billion euros for five years. That is a lot. The government would have to lower public expenses. That is what they want here. They keep talking about this tax help. Do get the impression this year that the Business Leaders are in a defined mood . It is kind of an annual ritual, this meeting of the Business Leaders that takes place just before the first of september. A day in a defined mood when it comes to the government . They really want to strike a deal. As i said, they are against this tax help. They want to lower layer lower labor costs. And lower taxes. They are not depressive. They think the government might move on, but it is a lot to ask. There is a big crisis right now. It is not very optimistic at the moment, the mood here. So, we will see. Enqueue for that and joining us live there. Is france in tax hell . I dont think so. What is taxation . It is what we need. It is contributions from people and individuals, enterprises, to be able to finance our public services. A redistribution in our economy. He has said from the beginning, because we have a few differences which we have inherited. The tax shield from the previous government costs Something Like 3 billion euros. We have to pay that back now. There is a huge deficits. Half will be from savings. Half of the from new taxations. Is what were doing from the beginning. That is a drop in the bucket. It is an amount which is quite important. I think with the government is doing today is taxing more of the very rich but not the enterprise. They are suffering the most. We have had the credit, the tax credit for the enterprise to be able to have new margins. This government is doing things for business, but it also has to reduce the deficit. I will let you speak. We have take a quick break. When we come back, i want to hear your answer. Stay with us. Welcome back or welcome if you are just joining us. Samples of the stories we will be following for you at the top of the hour right here. U. N. Inspectors in damascus resuming their probe as the secretarygeneral says that the Security Council must uphold its responsibilities over the alleged use of chemical weapons. Barack obama set to speak at the very spot Martin Luther king delivered his iconic i have a dream address 50 years ago today. Police in china offer an award leading to an address after a sixyearold boy had his eyes gouged out. Much more at the top of the hou. Welcome back or welcome if youre just joining us. France has Just Announced that if you want full Retirement Benefits you will have to be working a little bit longer. It has been a big Campaign Issue but it turns out that the socialists are also going to have to do something to plug the hole in the deficit. It begs the broader question which is can france reform with us. Phil, who represents the french broad. Your home constituency. French People Living in thos. Epic. The thomas moore foundation, thank you for being back with us. It has been a brutal couple of years for frances economy. Perhaps one of the symbols that you could face. Laster, it was forced to shut a major plant. And yet, i hope springs eternal. The company has just had its share price going up and a new model. But jobs, they may be gone for good. We are here. We want to keep our production in europe and in france. Clearly, the question of labor costs is key. We have to increase our facility. We need to be sure that the rest of the production keeps a minimum of utilization. We were talking before the break. High taxes and labor costs. Can france manufacturing rebound . No. Definitely, no. You know, there are more than 100 billion more of taxes and fringes on the salaries. It is more than germany. Every year, six percent of gdp. They paid in taxes more than germany. Tear after year, these companies generate much less profit are much less profitable. That means they cannot invest and if they cannot invest, they are losing a competitive advantage. What we heard the boss saying was that the factories are going to remain. It is just the jobs that are not going to come back. Perhaps therell be more automations is what he seemed to be implying. This is our biggest competitor. I discussed one year ago with the former ceo of a very big Service Company which is making 5 billion sales. I made a study in order to move my company from france, to where . To germany. I would save 600 million on taxes and salaries. That is four percent of the total sale of that company. How could it compete with the German Company . There is a German Company that is as big as this one. As long as we are not forcing or a program, a decrease of expenses and salaries, by more than 100 ilion, 100 billion, the Industrial Companies will decrease. Before the break, you are saying that there was a deal struck between the government and bosses and unions. Flexibility. Flexibility in the workplace. Reducing a little of those payroll taxes. I totally agree. I would just like to give to this government the credit of having a consciousness of the situation. I dont think what you said here was in any way a contradiction at the majority of the parliaments. The only thing that is a result of this awareness, as we are increasing taxes, it is not like were going to give someone else more money. It has been found to give back to the economy to try to compensate. Somehow, everybody is aware of the situation and everyone is trying to deal with the situation. It is just impossible. There is an absolute necessity of a political and economical shock. Fortunately, we have some little signs and ideas. Some little direct shouldnt. But it is so small compared to the huge reality to which we are. It is absolutely inefficient. Elected in may 2012. Now it is august 2013. Is it too late to do a big, painful, reform . I think from the beginning, over one year now that the government has been elected, there has been a lot done. It was packed with a tax credit. Trying to help. Should be able to invest and export. The government is not only conscious, but working for the real economy. Now we head into an election cycle. There will be elections. Political time is very short. The window of opportunity to make a grid forms, is it over . It is not over. He has been clear from the beginning. He is implementing that and has been searching for one year. Itll continue but with the same balance for creating growth. That is where unemployment is and growth is. On on the other hand, having a just economy. We also want to redistribute in a fair way. This pension reform, two effects on the companies. You give on one hand, but you have taken much more. We leave the deficits. Any company which is in deficits just [indiscernible] it is very honest. It is not enough. It is extraordinarily complicated. It is absolutely inefficient. Each time you make a move in the right direction, you take it back. It is tricky, always being tricky. I put it there. Many things, but not tricky. The government since the beginning wants to be balanced. September 2012, protecting by 12 billion. And then you invent the famous tax credits. After, you say, look. We are very probusiness. Lets look at the big numbers here. The big picture of all of this. And perhaps which we give to our children. The New York Times over the weekend, there was a piece there by the correspondent who just left. It said the french are justifiably proud of their social model. Many french retire at 60 or younger. 526 weeks of vacation every summer is normal. They have significant protection against layoffs and firings. The question is not whether the french social model is a good one, but whether they can continue to afford it. I think in france there is a consensus to keep the french social model. At the same time, to make our economy more competitive. This is exactly what the government has been doing. Very respectfully, if we are all agreeing to maintain the social model but we cant afford it, cant we at least agree that perhaps in 10 years we will have to have a less generous social model and perhaps if everything goes very well, we will be able to restore it . We cannot afford it. Do we need to cut benefits for the poorest or get money from Capital Gains . That is where the money is today. We need to be a little bit more balanced. The real issue is not in your proposals. The real issue is that over the last 15 years, before the crisis, friends has an Unemployment Rate that is 40 higher than the average of developed countries. Which is not true. It is absolutely true. 14 higher Unemployment Rate. That means what . What is said by this . It is not true. We cannot afford this system for years. The outcome of that i am not talking about an american system. Talking about an average system. A system where we have 40 more unemployment and then in this country. [indiscernible] [indiscernible] what about those one Million People who are unemployed and who should have unemployment jobs . There are when my people who do not have a job but should. That is where we are. Do you think it is fair or just for those people who should have a job and who do not have a job because this cost of the system is so huge . You are opposing the american or french system. I heard the president of the republic for so long saying we should Work Together to have an average system in europe. If we are aiming for and never system, nobody seems to be coming to our system. We could at least cut the average of europe by being a good aim. You mentioned europe. One man who has an idea on how to fill it is the Vice President of the european commission. He gave an interview to the french papers over the weekend. He wants to see major reform of state run sectors of the economy. He expects results on three fronts. Competitiveness and opening up the Service Sector. And in opening up to competition of the rail and energy sectors. The French Energy giant remain virtual monopolies. These companies, couldnt they at least be partially more opened up than they are right now . A huge player around europe, but couldnt they open it up to competition here . That is planned in the european directive. He should work Elizabeth Moore on the european economy. Maybe a little bit less in the details area is the first one to give lessons. It is not a detail. They have just given france a twoyear free pass to keep their public deficit above three percent. It is their business. Everyone is conscience about that. Does not give them a say about what happens in this country . We have an agreement in europe and i dont see much coming out of the european commission. We should be working more on that. The government has mentioned it and we know. The European Community has said the same thing. Every day they had said the same thing to the government. Perhaps this is not a big issue between us. Faster and further. Couldnt we agree on this . What is the government doing . The budget debate starts in two weeks times time. That is reducing deficits. A comment from twitter on by michael. The eu needs to be more aggressive, especially in the auto sector. The state still does have a role to play. You agree with that . I do. Liberalism does not need a new state to tell. In france, 66 of the economy now. It is occupied or overloaded by the excessive plays of state. I absolutely believe the state has a role in regulating the economy. Like the police. [indiscernible] saying there are too many monopolies in france. Of course the state has to rule in these issues to open up the economy. Certainly not interfering. I agree with what your twitter said. Were talking about big reforms. You mentioned how we needed a big bang. It is a painful reform in the short run. He was booted out and the left has not been seen back in power since in germany. He got clobbered by paralyzing strikes and it was scrapped. Critics would argue he would learn to leave well enough alone. There is a wariness when it comes to big reforms. We have a comment on twitter saying that no european nation could complete. They have gone through performance and paid the price. He knows what to do, but people question whether he has got the spine to do it. What has been done . The labor market reform . The reform now . The pensions . They are financed, pragmatic, and just. It is this balance between justice and the necessary reforms which he said in his campaign is implementing now. It can he make it so they do not rely on the state . The important thing is to create growth tomorrow. We are destroying growth and companies. You cannot say that. I would like people to say or not if the enterprises is being destroyed today. I think were trying to put focus on helping. In the real economy, and taxing. All countries, including greece, italy, spain, portugal. Of course, germany. The only country with the current to come is still deteriorating his friends. Explain why. You are creating or destroying growth by destroying confidence, by always putting additional taxation, by always creating stability. This is the fifth in 20 years. Thats means someone else will have to do another one within the next two or three years. You know you can never protect yourself in the future. Things are changing all the time. You will have some point in time to face the real reform. Stability is important for companies. The real issue, the reason why we have more taxation coming in the coming budget is contrary to what the government expected, it will be 4. 5 oh in dollars of income in taxes in the current year. Its because they arrive so high that people start leaving from this party. That is what was mentioned today. When people leave france, when people are ready to make up, we are the ones who want to succeed. The young. My young daughter or son wants to create a company, is gone. In belgian, in great britain. I am elected in belgian people dont come to see me for tax reasons. They come for opportunities. Young foreigners coming to france to study and invest. Im not quite sure. A mobile europe. I have plenty of patriotic. It is through discovery. Im not quite sure refusing this has a best way of dealing with it. Is the problem with the french taxation system, the way the nanny state and things have been discussed in the past hour, or is it just simply the type of economy that france has . Manufacturing may be big in germany, but it is tourism and other Services Industry that motor a lot of the french economy. If you look at this graphic, you see the Service Sector has taken a much bigger portion of the economy. Thats a bigger question that that is also being asked in the United States right now with a big push to increase the minimum wage. How many middleclass jobs, jobs that earn decent salaries, can the Services Industry create . I am certain that the services have potential for very dynamic economy. The french model is a good one. Having an economy that is based on things like luxury goods and services and tourism. I believe so. It doesnt mean we have to neglect anything. The systematic criticism of what the government does. I find the consciousness whats the enterprise spirits can bring to a country. I find some very positive signs. Businesses saying we have to develop the new america economy. All the potentials are being seen and identified. So heavy that this reform is going to be able to liberate potentials. I can see we still have a lot of work on the government. We still have four years. Lets finish on this note. What can the government now due to encourage small business. The government has started by creating a Public Investment bank. To be able to export much more. We have Small Businesses which are much smaller. It is much more difficult for them to be strong n the export field. They need to have liquiditys. They need to credit to be able to be stronger. Less of a tax burden as well . It is a way of helping small enterprises. That is the difficulty for Small Businesses, to be able to borrow money. I wish we could continue this discussion. One damage we havent mentioned is the european damage. If we really want to create margaret the needs to be on the european level. We will mention it next time. I want to thank you. Thank you for joining us here in the debate. syria, oil, and the wait continues on what action the united dates will take and what impact it will have on the markets. I am phillip yin in washington. I am michelle makori. At the Nasdaq Market in times square in new york. The worlds leading exporter of Dairy Products says its bab
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