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(generated from captions) Good evening, I'm Scott

Bevan. On don't tonight's program. Australia's now Foreign Minister Bob Carr got

stuck into his brief today with

his first high level bilateral meeting. Hosting his Indonesian

counterpart, Mr Carr had plenty

to talk about, including US marines training in the Northern Territory and border

criticised the Federal security. Indonesia has again

Opposition's policy to turn

back asylum seeker back asylum seeker boats trying

to come to Australia. You watching The World. to come

It would be impossible and

shift the nature of the

challenge from one end of challenge from one end of the continuum to the other. The Indonesian Foreign Minister

says countries in the region

need to work collectively to address the people smuggling

issue. Also ahead, the US

President and the British Prime

Minister say they are united in

the face of global security

challenges from Afghanistan to

Syria and Iran. Election fever

in East Timor. We assess the

candidates in this weekend's

presidential poll. The presidential poll. The most

powerful woman in the world finance, Christine Lagarde powerful woman in the world of

talks to the ABC about the importance of the Greek debt

deal.

. What's in a name? The

campaign to change some of

Italy's piazzas to reflect the

country's feminine side. This Program is Captioned Live.

where Foreign Minister Bob We begin tonight in Canberra

has spent most of the day in

talks with his Indonesian counterpart. It was Senator Carr's first Carr's first official

engagement in his new job which

also included an inaugural two

plus two meetings with the

Defence Ministers from both

countries joining in. There was

a lot on the table as Jason

reports. Indonesia and a lot on the table as Jason Om

Australia are close friends and

Bob Carr has gone about making

the relationship even

closer. Marty and I have exchanged mobile numbers and

in my telephone. The new his mobile number is now lodged

Foreign Affairs Minister used

the occasion to quote one of

Labor's well-known proponents

of the Asian region. It was my

friend Paul Keating who put it

this way "No country is more important to Australia than Indonesia". Indonesia would Indonesia". Indonesia

like to describe our relations

with Australia as being strong,

as being solid and as being critically important. Behind

closed doors, the Ministers

discussed bilateral security and defence cooperation but it

was the prickly issue of asylum

seekers and what to do with

them that wouldn't go away. Indonesia wants to work Indonesia wants to work with Australia to smugglers. Bob Carr's

Australia counterpart has firmly rejected

counterpart has firmly rejected

back boats. It would Tony Abbott's policy of turning

back boats. It would be impossible and not advisable

even to simply shift the nature

of the challenge from one end

of the continuum to of the continuum to the other. On plans to rotate

hundreds of US marine in the Northern Territory, tensions

seem to have eased. Last year.

NT Marty Natalegawa was

worried the build-up could lead

to mistrust in the region. Whether it

Whether it would rankle China,

wasn't discussed but now

.... If there were questions initially, those questions have

been provided answers with. Indonesia says the US

response to natural presence would help the

disaster. We also plan to

proceed with this kind proceed with this kind of

exercise so I don't think there

will be a problem in respect of

government to governments. Australia would

in have no problem involving China

in joint exercises in the

future. Maybe you could have

Australia, US, Indonesia and

other countries, including and

in particular China. We in particular China. We spoke

about this in passing today, about this in passing today, we

don't dis count that down the

track. On the ish queue of live exports, it is believed

Indonesia is set to Indonesia is set to increase

the amount of cattle it imports. Marty Natalegawa

couldn't confirm any boost but

doesn't want the issue to hurt

relations. He says lessons have been learnt from the suspension

of the cattle trade. There is

already a strong determination

address this issue. This from both sides to be able to

meeting is the first of meeting is the first of a

series between Australia and

Indonesia this year. In May, the Indonesian President Susilo

visit Darwin. Bambang Yudhoyono plans to

Shoort shortly we hope to speak with political commentator Wimar Witoelar commentator Wimar Witoelar in

Jakarta for the reaction in Indonesia to today's talks in Canberra. We will bring you

Barack Obama has welcomed that when we can. US President

British Prime Minister David

Cameron to dinner at the White

House. The lavish event marks

three days of talks between three days of talks between the two countries focussed on

war in Afghanistan as well as two countries focussed on the

the conflicts in Syria and

Iran's nuclear program. Mr

Obama played down questions on whether combat troops will be

pulled out of Afghanistan

before the 2014 deadline. The

pair have warned Iran that time

is running out to reach a diplomat solution over its nuclear ambitions. During the

State dinner, the leaders spoke

of their close relationship. In

all of our inter actions

including today, I have learnt

something about David. In good

times and in bad, he is the

kind of partner you want kind of partner you want at

your side. I trust him. He says

what he does and he does what what he does and he does

he says. We have struck up, I

believe, a really good

partnership. It is frank and honest, we talk through issues

very rationally. We don't need

to remind each other of the

basic threats we face, we know them. Earlier in the day, the

two leaders vowed to push on in

Afghanistan despite a spate of

bloody setbacks. Underscoring

the instability, the US Defence

Secretary found himself a part

from North of a major security scare. More

correspondent Craig from North America the McMurtrie. As Leon Panetta's

plane was landing at a British

air base in southern

Afghanistan, a civilian worker

stole a struck from a British soldier, crashed through a security fence making for the

runway. We were diverted runway. We were diverted to a

different runway. Officials say

the US Defence Secretary didn't

see the incident. The truck

crashed into a ditch. The

driver was on fire as he driver was on fire as he was captured. Underscoring tensions

on the ground, the US and

British leaders sat down in Washington

Washington to discuss the war, calling calling it a hard slog. In the aftermath

aftermath of the shooting

rampage by a US soldier, who has

has now been spirited out of Afghanistan, Barack Obama's

playing down speculation playing down speculation about American troops coming home

sooner. I

this stage, we are going to be making any sudden addition al changes. Both say their forces

will step back from the combat

lead next year. The transition

details to be discussed at a

NATO summit in Chicago in May.

Prime Minister Cameron says the

military mission is in its

final phases. We won't build a perfect Afghanistan, although

let's be clear we are making some tangible progress. Syria

and the nuclear stand-off with

Iran were also on the ajendsa.

The US President warning Tehran

time is running out for a

diplomat solution. The window for solving this issue diplomatically is

shrinking. The two were at pains to highlight their special relationship, even

joking about another conflict,

an attempt to burn the White

House down. It's now been 200

years since the British came

here to the White House under somewhat different

circumstances. They really circumstances. They really lit

up the place. You have got the

place a little better defended today. Tomorrow the British

leader heads to Ground Zero in

New York.

Let's return to our top

stories, the bilateral talks

between Australia and Indonesia

and let's speak with Wimar

Witoelar in a long and varied

career, he has been a political activist and activist and presidential

spokesman, a journalism

lecturer and a popular TV talk

show host. Through it all, he

has been a keen observer and

commentator on Indonesian

politics and society. He politics and society. He joins

us from Jakarta. Wimar

Witoelar, thanks for your time

tonight.. I don't think Mr

Witoelar can hear us at the

moment. We will return moment. We will return to

Jakarta as soon as we can to

speak to him about today's bilateral talks in Canberra. Stay with us on The Stay with us on The World,

still to come, we have a

preview of the East Timor presidential election plus an interview with candidate Francisco 'Lu Olo' Guterres.

Later on the program, IMF managing director Christine

Lagarde discusses the Eurozone debt crisis with Chris Uhlmann.

In East Timor, voters are

getting ready to go to the polls in the country's third presidential election. It presidential election. It is

shaping up as a crucial test

for the young democracy. If all

goes well, the United Nations

and Australia-led peace keepers

will leave there at the end of

the year. From the capital, Dili, Sara Everingham reports. Election fever in Dili. Around the Dili. Around the country, thousands of supporters have been turning out to been turning out to rallies

like this. In this election,

there is much at stake. If it

goes well, smoothly, then I

think we have turned the

corner. Timor Leste finally can claim

claim to have a stable, predictable think democracy. Incumbent Jose

Ramos-Horta is one of 12 candidates vying for the job. democracy. Incumbent Jose

He is up against the Timorese Australian woman who was

acquitted of plotting to kill

him in 2008. The former partner of the late rebel leader

Alfredo Reinado. East Timor

needs an immediate change. The

people are screaming out for new ideas, new faces. But

perhaps the biggest threat is

from the former military chief

Taur Matan Ruak who has the

Xanana Gusmao. In the campaign,

there has been robust debate between candidates but not the violence that's marred elections here in the past. So

far, so well. Everything is

under peaceful way, democratic

way. The Electoral Commission

is more concerned bad weather

and rugged roads could prevent

people making it to the polls.

East Timor has two elections this

this year. This this year. This presidential

race and a parliamentary vote

in June. If all goes well, it

is likely the United is likely the United Nations

mission will leave at the end

of the year. This year, East

Timor will celebrate the 10th

anniversary of formal independence from Indonesia and

it is keen to show it is ready

to manage its own affairs.

In the report there, we heard

from a couple of candidates in

the East Timor presidential

election. Another contender is Francisco 'Lu Olo' Guterres

from the strong leftist

Fretilin Party. He was

commander in East Timor's Fretilin Party. He was a

guerilla Army and spent 24

years fighting Indonesian rule

before making the transition

from soldier to politician. Our

reporter Sara Everingham caught

up with him in Dili. Thanks for

joining us. You currently hold the position of Deputy Prime

Minister. Why do you want to be Minister. president? I think every

politician, after many years of

experience and looking at experience and looking at the current candidates, I thought

it was the right time for me to

present myself to the people of

East Timor. The experience East Timor. The experience I

have had in international

affairs as well as national at

the government level, I feel

that I have all the experience

necessary and if people will

vote for me on 17 March, I will

do my best to serve my people,

as I did for 24 back. What's back. What's the main issue you

have been campaigning on in

this election? I have nine points to present to people,

nine points program. One of the

major ones is that all of them

are important, of course. One

of them is to all the candidates have been defending the change of the current

systems we have from semi

pattial to presidential one. I

have pointed out and I have

pead clear I am in favour of

the current system, the semi

presidential and that's why I presidential and that's why

have included one of the points

is to defend the Constitution

of the Republic. Are the other

candidates arguing for the

powers of the president to be

increased? Oh yes, that's some

of the candidates. Another issue that is important also

for me is the economic

development of the country, but

development that takes into

account justice, social

justice, as well as the sustainable development, taking into consideration the

environment and also to promote

the private sector's interests

because otherwise the

development will not benefit as

it should the people of East

Timor. Are you worried that the

revenue from oil and gas isn't

benefitting the whole of the

country? My main concern is

that we have to find better ways in order to allocate resources to fund resources to fund development.

For me, private sector is one

of the engines of the economy

everywhere. So if - when we

came to power, we had around

$1.6 billion and today we have

almost $10 billion. If we use

properly the amount of money we

have invested in

infrastructure, invested in

education, and making these funds available, or some of

them, through banking system available to our available to our private

sector, then we can repair the

conditions to develop a non-oil sector in our economy. But economic

economic development relies on

security. How does the mood in

this campaign compare to the

mood during the election in

2007? Yes, I think that there

is huge difference. In 2006,

when you came here, we had a

lot IDPs. Internally

people. Today you can feel the

feeling is that people are

living in a very very peaceful country and more living in a very peaceful town,

stable. I am happy we took only

two years to solve the two years to solve the 120,000

IDPs problem and we have also implemented major programs in order to make our defence force

s more professional, including

create better situations for

them to perform their duties

according to the Constitution.

In general terms, can say we

are living in a very stable environment. Including our crime rate is much lower than

many countries in the world. On

foreign policy, if you were to win this election, would you

aim to develop the relationship with Australia? For sure.

Australia is a great neighbour,

not only great neighbour but a

friendly neighbour. History has

shown that we, Timor and

Australia, we have to live

together. Another issue that is very important is that East

Timor, in spite of our public

statement to join ASEAN, we cannot develop our foreign

policy neglecting the south of

Timor Leste, such as Australia,

which is a democratic country, which

New Zealand, our Pacific neighbours. We will do our best

to maintain the friendly

relationship we have with Australia. When I speak Australia. When I speak about Australia, I don't only look

into the government but the

main people of Australia, Australians, that have been main people of Australia, the

with us for many years and during the most difficult times

of our country. The same

relations we want to maintain

with Indonesia and relations today with Indonesia with Indonesia and our

is excellent relations and we

hope to continue and together Australia and Indonesia and

Timor, we can do our best in

order to guarantee that this

water around us, the maritime

security, be place security, be place of

stability, a place that no trafficking, illegal fishing, people smuggling or

will harm the natural resource

we all share. Because the fish,

remember they don't remember they don't have

passport, they go from one

place to another, so we have to

do our best in order to

cooperate as the three nations in maritime in 'Lu Olo' Guterres, thanks for

joining us. Thank you very much. All the best to you. Sara

Everingham in Dili with

Francisco 'Lu Olo' Guterres.

Let's return to our top story,

the bilateral talks between Australia and Indonesia and

speak with Wimar Witoelar. As I

was saying before, he has had a

long and varied career. He has been a political presidential spokesman, a been a political activist,

journalism lecturer and a

popular TV talk show host.

Through it all he has been a

keen observer and commentator

on Indonesian politics and

society. He joins us from

Jakarta. I trust you can hear

us this time. Yes, thank you

for having me. I feel very good

with you here. Thank you. How

has this two plus two dialogue between Australia and between Australia and Indonesia, at least Defence and

Foreign Affairs Ministers, been viewed in Indonesia? Well,

they happen to be two of the

cabinet Ministers who don't

have as many problems with the

public or some of the others.

In fact, they are so good they

are quite obscure in the news,

meaning there is no bad news

about them and we are happy to

have them there in Australia

because they represent some of

the finest ministers in our government. Does that mean

there hasn't been much coverage

today in Indonesia about some

of the key issues that have

been discussed? There has not

been much coverage but then I

have been off the air waves

since five hours ago so I haven't checked recently. haven't checked recently. But

up until five hours ago, I

could find not many signs of

the dialogue, aside from what I

gathered from your producer. At the conference, our new Foreign

former Prime Minister Paul Minister Bob Carr today quoted

Keating from 1994 when he said

no country is more important Australia than Indonesia. Do no country is more important to

Indonesians believe Australia's

actions and attitudes have

lived up to those words in

recent years? I think there is

a dichotomy here. Australia is

seen as largely seen as largely friendly

country and certainly a part of

our daily lives. There are many

Australians who are in the circle of our personal friends,

many Australians tourists and

we watch your shows, your radio

programs, but not many Indonesians really follow the

policy intri catcies of the

Australian government. It has

not been parts of the ups not been parts of the ups and downs of Australian foreign

policy developments. In all, I

think Australia has positive

image with Indonesians who now

have more problems with other countries. But, having said

that, let me point out that

most of Indonesian attitudes

towards foreign policy is towards foreign policy is based

on local politics. It is based

on who they want to unsettle

domestically. As I said

Foreign Affairs and earlier, the Minister of

Minister of Defence in

Indonesia is not part of the political acrimony so Australian foreign policy

hasn't been in the headlines hasn't been in the headlines in

terms of bad news. As we know,

good news is no news, so not

much is being said about

Australian foreign policy. It

is just to say our neighbour

has been for a long time and we

wish you the best of everything

in Indonesia. Even so, among

the decision makers, among the

leaders there, given the

enormous advances in Indonesia

in recent years, including

economically, how much do those Indonesian leaders, the

decision makers, feel as though

Australia has literally overlooked them in recent years

as Australia's gaze has been

increasingly turned to China?

Well, if you were talking

about Paul Keating the other

day, certainly we feel Paul

Keating has been a great friend

of Indonesia. Unfortunately,

Indonesia was at that time

represented by a president who

was not a great friend of

Indonesians as they are today. So Paul Keating's legacy is

sort of mixed. He is a friend

of Indonesia, he is a friend of

Soharto, so where do we stand?

We go back to people to We go back to people to people relationship with Australia

which has been good and we don't

don't bother too much with the complications of domestic policies

policies in either country. The

issue of basing more US troops in the Northern Territory in the Northern Territory was

raised today. In fact, it was

the first question asked by an

Indonesian journalist at the post-meeting press conference.

How much has that issue, the basing

basing of more American troops

in Australia, how much is playing on the minds of

Indonesians and how could it impact

impact on Australia-Indonesia

relations? It is a logical

question to be asked by journalist otherwise they would

waste their time at this press

conference, but it is not

really a question the public

ask. In the eyes of the public,

either you are for America or

Australia, or they are in

favour of America and Australia

and they find other kinds of

reasons to explain why this is

a case. As a person who a case. As a person who has

more than average access to information, I know this is not

a threat to Indonesia. I know

that both the US and Australia stand to gain an advantage from strengthening their military

posture. Obama certainly wants

to look tough in front of to look tough in front of the

Republicans and with Australia

I'm less familiar but I'm strengthening

it is not a threat against

Indonesia because I do not see

anyone even wanting to threaten Indonesia militarily. It would

be a be a counterproductive game. Regionally, what effect

do you think it will have,

beyond Indonesia, more broadly in the region? Regionally, in the region? Regionally, it

would raise the ante in the

chess game played by foreign policy players in every

country. But again it is a

chess game by the foreign

policy players, not by the

public. The public will public. The public will watch

the chess game and see how it

evolves and they will take

sides according to the domestic personnel, domestic leaders they

they know, because they know how to evaluate politicians. Indonesians are

ignorant or not interested in

foreign policies of foreign policies of other countries. On the issue of

asylum seekers which was raised today, your Foreign Minister

was critical of the Australian Federal

Federal Opposition's 'Turn back

the boats' policy, saying it is

impossible and not advisable to

turn back vessels mid voyage.

How is Australia's handling of

this whole issue this whole issue of asylum

seekers being viewed in

Indonesia and how is it affecting relations from your

perspective? If I were

Foreign Minister, I would speak

exactly like Mr Natalegawa

spoke but if I were a citizen,

I would just see how it plays

out because, at times out because, at times when

Australia goes against the

grain of public commonsense,

they would step back and re-think their position. re-think their position. If they are really acting inhumanely against any inhumanely against any kind of

people movement within the country, they would face public

dissent and until such public

dissent is expressed publicly,

it is still a matter for the politicians and government leaders.

leaders. Minister Natalegawa is doing his job, which is to

remind Australia there is a

potential for discord but it potential for discord but it is

still a potential, it hasn't

shown the daily lives in the

streets, the schools of

Indonesia yet. How great is the

potential for discord? Pardon

me? How great is that

potential for discord? It would depend on how much

aggravation is grown on this

issue. If both sides take a step step backwards and seek

communication or if both communication or if both sides

seek to show bravado for the interest of raising their

domestic post post churs. How

defensive you are, depends on

how strongly offence is. It is

still a chess game. Nobody can

tell. Final li, Mr Natalegawa

said while the two country's relations were strong, solid

and critically important, he

also said there was plenty of room for improvement. room for improvement. What do

you see as the key areas you see as the key areas for improvement in Australia-Indonesia relations?

Being a professor of an

Australian university, I would

say strengthening of ties

between the academic communities, whether it be

students or professors or

research, would be a very strong cornerstone of

relationships between the two

countries. If there is one issue we haven't mentioned, it

is that the proportion of Indonesian academics having

involvement in Australia is

getting less in proportion to Chinese and Korean which is

nobody's fault, but it is a

sign that it will not get as

strong as it used to be if we

do not have people-to-people

programs and relationships. It could be ak dema, university,

it could be culture, music. it could be culture, music. It

could be football, but then you

beat us every time, so maybe

that's not a good area to

explore. Stick to academia, you

think? . Thank you for your

time from Jakarta, always good

speaking with you. Thank you. There have been There have been dramatic developments in Chinese

politics. One of the politics. One of the country's

best-known politicians and a

key powerbroker, Bo Xilai, has

been sacked. The 62-year-old

was a strong contender to be

promoted to China's top

leadership later this year but

his factional enemies have used

a local corruption scandal to

remove him from his post as a

provincial Communist Party lead

er. Stephen McDonnell has been covering the National People's er. Stephen

Conference in Beijing for the

past two weeks. Bo Xilai has

been sacked and it will shape

the very future of China. In the Communist the Communist Party, on the one

hand, there are those

advocating more opening up, more reform, more government

accountability. Then there was

Bo Xilai, a figure on the rise

with his model for the country. It involves a strong Communist Party solving social and

economic problems. He appeared at the National People's Conference, saying all was

well, but his enemies have well, but his enemies have used

a corruption scandal to finish

him off politically. Central to him

Bo Xilai's fame was

high-profile anticrime drive in

the city he ran, Chongqing,

the city he ran, Chongqing, but his critics say this flouted

the law and was used to get the law and was used to get his political opponents. Bo Xilai's right-hand man, police chief

Wang Lijun, ran that campaign

before being accused of corruption. He also tried unsuccessfully to get asylum in the United States. Bo Xilai's

downfall probably also leaves

his model for China in tatters. At the end of the National

People's Conference, Wen People's Conference, Wen Jibao warned against turning back the

clock. He is seen as a liberal

figure in the party who has

apologised for not achieving

more. But in his last year in

office, Premier Wen knows office, Premier Wen knows his

allies are probably on the

rise, which will be crucial in the make-up of the government

later this year and also the

policies it puts in place.

Stephen McDonnell in Beijing,

our China correspondent. our China correspondent. Still ahead on the program, we ahead on the program, we will

get the latest from get the latest from the

national swimming trials being

held in Adelaide. get

Christine Lagarde sits down for an interview with the an interview with the ABC's Chris Uhlmann.

You are watching The World on

ABC News 24. I'm Scott Bevan. A

reminder of our top stories: In

In his first official

engagement as Australia's

Foreign Minister, Bob Carr has

met with his Indonesian counterpart in Canberra.

Discussions centred on people

smuggling and how to establish

closer defence ties. Both

parties noted the strong

bilateral relationship, but

says there is room for

improvement. Meantime, it seems

Indonesia is on the verge of

announcing a big lift in the

quota of live cattle imports

from Australia. US President

Barack Obama and the British PM David Cameron have marked three

days of talk in Washington with a

a lavish State dinner. The

talks focused on the war in

Afghanistan, the conflict Afghanistan, the conflict in

Syria and Iran's nuclear program. Both leaders insisted

their mission in Afghanistan is

in its final stages. President Obama

Obama said he will stick to

pulling all combat troops out by the end of 2014.

A powerful Chinese politician

has been removed from office in a move that will have major

ramifications for the direction of the Communist Party. Bo

Xilai was the Mayor of the huge

south-western city south-western city of

Chongqing. He looked set to

join the top ruling group of

government but he was removed

from power after becoming

caught up in a local corruption

scandal.

Coming up later on The World,

it is a man's world in Italy

but now there is a campaign to

rename some piazzas after prominent Italian women. The

The IMF rr's board is set to

meet tomorrow to set a new 28

billion Euro loan for billion Euro loan for Greece. Last Friday, IMF chief

billion Christine Lagarde announced a

larger-than-expected proposal

with the loan spanning four rather than the normal three

years. In her first interview

with Australian media,

Christine Lagarde spoke with

'7:30''s Chris Uhlmann. Chris began by asking how Greece will

return to growth. Greece has return to growth. Greece has a

few things to do, quite a few

things to do actually. The

first thing that needs to be

achieved, which is of paramount importance from our

perspective, is that it has to

have the support of the largest

possible number of people, both

at governmental level, at

parliamentary level and in

society as well. Because

clearly the path on which the

country is engaging is going to

be a difficult one, one that will require resilience, determination, some sacrifices

along the way and a clear focus

on growth, on trying to create

value, on trying to improve

competitiveness. The first thing, the first condition is broad political and community

support, if you will, so that the program that is the program that is currently considered by the country

considered by the country is something that belongs to the

country and that will help it improving its improving its economic situation. Second, there will

clearly be a whole range of

reforms that needs to be

adopted. Reforms of the labour

market, reforms of the product

and service markets. All of and service markets. All

those with a view to achieving

more flexibility, agility, the

ability to respond to market

demands so that the country can

actually be competitive and generate growth and create jobs. The third condition that

is also required, that is also required, that the Greek authorities are very

is careful with public finances in

the country. The country has

been running very high deficits

for many years. It is

financing a debt that for many years. It is currently

represents roughly 160% of represents roughly 160% of its

GDP and it has to restore a more healthy path for more healthy path for both

deficit and debt. It is all

these conditions that are

needed for Greece to actually

get back on track and become a

country that can actually

generate its own growth, create

its own jobs and be off the

European support that is so

badly needed at the moment. You

are going to cut the Greek

minimum wage by 22% and when people

people leave their collective agreements, they will be forced

back on the minimum wage. That will cut demand and will cut demand and tax

receipts so where will growth

in the Greek economy come from?

Based on the review and the

work we have done on the Greek

economy, there is a lot of room

for additional tax for additional tax collection.

That's an understatement.

Second, if you look at the minimum wage, for instance,

which is one of the which is one of the conditions

that was put in the program, the minimum wage of Greece is

currently about 50% higher than that of Portugal, 17% that of Portugal, 17% higher

than that of Spain and multiple of the minimum wage applicable

in countries like Croatia, for

instance. So, a lot had been done

done in the last few years to

increase those numbers. Clearly

the country has to get back on a pace that is sustainable in

the long-term. Clearly growth

is not going to come out of

those changes in minimum wage

because there will be less

consumption, there will be less consumption, there will be

tax collection on tax collection on that particular aspect of the

market. But it is a necessary

competitiveness step to actually improve the

competitiveness of the country.

We believe that the reforms

that are structural reforms that are structural reforms for

the country will be conducive

to growth. That is a parallel

path that has to be taken

together with the fiscal

consolidation I was alluding to

and the market reform that needed in the and the market reform that is

market. Greek politicians can needed in the labour

pass these laws but when people

actually see what's going actually see what's going to

happen, when the minimum wage

falls by 580 Euros a month and

people see cuts in health and education, surely that will

cause great social dislocation. cause great social

Don't you fear that? That was

my point to begin with. It will

be necessary for the country to

actually understand that the

sacrifices that are expected

now are necessary to actually

bring the country back to a

sustainable path and to restore

a situation where it can

actually be self-sustainable

and generate its own growth. It

is a difficult path, no

question about it. But don't

forget what I just mentioned,

the current minimum wage in

Greece is 50% higher than in

Portugal, 17% higher than in Spain.

Spain. There have been public

policies in the past that have

been quite complacent when it came to setting certain wages

ranges and clearly the

progressions that we have seen

over the last few years in the

range of about 60% have not

been particularly sensible to

make sure that the country could remain could remain competitive. But don't you fear you don't you fear you might

actually see a revolution in a

place like Greece because of the harshness of this? Look,

this is a debate that has been going

going on for two years in Greece and the country has been

supported by its European

partners, by the IMF as well,

with a view to restoring its

public finances and make sure

that the country is that the country is sustainable and can pursue its path towards

an improvement of the

situation. It was important

that the Parliament could adopt

at a very strong majority the

program that is under way. It was important to have the

political support by the key

political Greek parties so that political

there is the buy-in, the

ownership that is required for

the program to work. It is

difficult. There is no question

about it. It is ambitious but,

at the same time, it requires

sacrifices on the part of the

people that want their country

to work, that want their

country to become competitive,

that want the economy to create

jobs. It is both, it cannot be

ambitious without having an

element of sacrifice about it and an element of significant reforms that actually change

the culture. If Greece had a

sovereign currency, it could

devalue, wouldn't that be a

better shock absorber and it

won't have to go through such a

harsh dislocation? I don't

think you can think you can associate

currency dislocation. We have a

situation in Ireland where the

programs have been equally

demanding and requiring

sacrifices and major sacrifices and major reforms where we haven't seen

dislocation and there has been

strong buy-in and success. If

you look at the case of Latvia.

True, when you are in a

monetary zone as Ireland is, as

Greece is, as Portugal is, you

can actually improve

competitiveness and sort of devalue,

devalue, in a way, by operating

on the labour cost because you

cannot use the cannot use the currency lever. Ms Lagarde, lever. Ms Lagarde, what would

be the real dangers if the Euro

should shatter? Was that one of

of your great concerns in all

of this? We are not

considering the fact that the Euro could break into pieces. The Eurozone is consistent

monetary zone with a strong

currency. If you look at the

relative value of the Euro compared with, say, the dollar, compared

for instance, it is a strong

monetary zone, it is one that

is in the process of

is in the process of being improved significantly because when it

when it was set up 10 years

ago, it did not have all the

attributes, the components and

disciplinary rules that are

helpful to keep a monetary zone

together strong and going, together strong and going, but

in our assessment and review of

the situation, the Eurozone is

solid. As I said, its construction and construction and reinforcement

is clearly in process. 2011 turned out to be a difficult year, was that because of a

failure of economics or failure

of political will? 2011 was a tough year, no doubt about it.

20 2009 was a very tough year.

What we saw in 2011, particularly the second half of

2011, was a crisis of

confidence concerning

particularly the sovereign debt

and the ability of economies to

recover from the financial crisis that affected pretty

much the whole world in 2009.

It seems, at the moment, given the measures that have been

taken particularly by the

European members of the

Eurozone in terms of

discipline, in terms of

collective fiscal behaviour, in

terms of renewed focus terms of renewed focus on growth, it seems that the

sovereign crisis, crisis of confidence,

confidence, is abating a little

bit. That's going to be a

question of those economies to

focus on managing a combination of

of fiscal consolidation at

their respective pace and focus

on growth so that growth can

kick start yet again. Are you

concerned about the grid lock

we see in the United States'

Congress and the failure Congress and the failure of

political will we see so often

in Europe? Isn't there a political issue at the heart of

all of this? There are always political issues. Let's face

it, the world is about a

combination of xik issues -

economic issues, creation of value,

value, creation of jobs,

expansion of the pie, if you

will, and political decisions

that have to do with how to

manage it, how to allocate manage it, how to allocate it. The two processes operate in close synchronisation and affect each other. Australia

has much better economic

fundamentals than many

countries around the world and yet we have seen the second contest for the prime

ministership in 18 months. ministership in 18 months. Are there lessons Australia needs

to learn about keeping its

political house in order? I

think it is a blessing that

Australia is enjoying such a

strong set of economic data and

numbers. When I look at the

unemployment rate, half of that

in Europe, for instance, when in Europe, for instance, when I

look at the potential for

growth and the growth forecast

for 2012, double that of many

other advanced economies, other advanced economies, I think that Australia has think that Australia has the

huge benefit of a very strong

economic base. Do you think

that the IMF needs more money

in order to do the work it does?

does? I think the IMF does its

work as well as it can, thank

you very much. We have hundreds

of economists and a lot of people that are highly

dedicated to improving the

international monetary system,

surveying and making sure countries are on the right track, providing advice and support and technical assistance and eventually

lending money. When it comes to

lending, we have been very

active lately, I am sure we will continue to be active, will continue to be active, and

if the firewall at the appropriate level of risk

contagion limits are put in

place in other parts of the

world, and IMF additional

funding is not necessary, we

can do without it. But,

equally, if the protections and anticontagion devices are anticontagion devices are not sufficient, clearly the IMF

should be doing its job and if

more is needed, then you can

count on me to say so. But I am appreciative of the Australian

authorities' support in what

the IMF is trying to

do. Finally, Ms Lagarde, do. Finally, Ms Lagarde, are you optimistic about the

future? I am desperately optimistic about the future. Thank you for joining

us. Pleasure.

In another sign of reform in Burma, Aung San Suu Kyi has

been allowed to address the

nation on State media. It is

the first time that the

pro-democracy campaigner has been permitted to discuss

politics on the area after

decades of authoritarian military

We are waiting for the We are waiting for the story to come up. She has been greeted She has been greeted by swathes of endearing fans on

the campaign trail, now Aung San Suu Kyi has been given

access to one of the most powerful platforms. TRANSLATION: We

have to repeal immediately some

of the repressive laws. We have

to ensure that the judicial system is independent. Full media freedom must be

given. The military, which has

ruled Burma since crushing ruled Burma since crushing the democracy movement in 1998, has placed tight control on

speech. The nominally civilian

Government has given each party

contesting the by-elections a 15-minute time 15-minute time slot. Aung San

Suu Kyi's pre-recorded speech

was leaked online since the

event. She has since accused

the military of censoring a

paragraph, but that didn't stop

her extending an olive branch. TRANSLATION: I branch. TRANSLATION: I believe

the military must play a the military must play a role

for the development of the

country. I also believe country. I also believe the

military, which was founded by

my father, General Aung San, is always ready to serve in the interest of the country. Next

month's bye-elections are seen

as a vital sign as to whether

the Government's recent democratic reform will

continue. This issue of a free, fair, transprnts election is

important to us in terms of

demonstrating tangible terms in

terms of democracy they

terms of democracy they have

issued us they are on the road

toward. It is one step, but an important step. The military is

still going to have a quarter

of the seats and Aung San Suu Kyi's National League for Democracy can't win a

majority. To sport now with

Amanda Shalala. The Australian

swim ing team is taking

shape. Six athletes made it through tonight. Stephanie Rice

is going to the games thanks to

an impressive win in the 400m individual medley at the selection trials in Adelaide.

Rice underwent shoulder surgery

in December but left the rest

of the field in her wake to

earn the first spot on the

Australian team. What a swim.

She is off to London. It has

been one of the

been one of the toughest

preparations I have ever had. I

am just so thankful to have

qualified and to be the first

person going to the Olympics, I

am excited. Blair Evans is also

going to the games after

finishing second. Thomas Fraser

Holmes set a new Australian record in the men's event.

David McKean and Ryan Napoleon

went 1-2 to make the team.

Libby Trickett's comeback is on

track. She is through to the

finals of the 100m butterfly. Jessica

Jessica Schipper was the fastest qualifier. Geoff

Huegill has qualified fastest for the final of the 50 fly.

Chelsea's veterans have Chelsea's veterans have ensured

it is the only English side

into the European Champions

League. The Blues trailed

Napoli 3-1. Their old Napoli Didier Drogba and John Terry

and Frank Lampard sent the tie

to extra time. Branislav Ivanovic did the rest. Ivanovic! Bed lamb. Real

Madrid is also into the Madrid is also into the last

eight thanks to a aggregate win

over CSKA Moscow. Manly is

confident it can keep Dale

Cherry-Evans despite reports he

wants to leave the NRL club at

the end of this season. Other

clubs are ready to swoop on clubs are ready to swoop on the

rooky of the - rookie of the

year if the Sea Eagles can't

meet his demand for a pay rise.

Geoff Toovey fed many scrums

during his career with the Sea

Eagles but had his work cut out

serving a media pack that wanted to know whether Dale Cherry-Evans had asked for a release from the final year of

his contract. Until he tells his contract. Until he tells me

that, I can't comment. We are

trying to get something sorted

out as soon as possible. At the moment, it is not what we are

looking for. With Premiership success comes an increase in

player value and the challenge

of fitting everyone under the

salary cap. If there is anyone

out there with a lot of money

that wants to see Cherry that wants to see Cherry stay,

let's here from you. They are

hopeful he will remain loyal to

the club that gave him start. The coach was the club that gave him his

annoyed. Money talks, doesn't

it? Not always, no. Five times

more? What are you trying to

say? ? From the Queensland Cup to the Australian team within

12 months, it has been a

meteoric size for the 23 - rise for the 23-year-old but for the 23-year-old but whether

a similar rise is possible in

the pay department is something officials will have to tackle.

NSW Warriors winger mimp

Mitchell will - Drew Mitchell

will miss the rest of the

SuperRugby with an ankle

injury. He says a specialist

told him he will be sidelined for at least four more months.

The winger will miss tests

against Wales and Scotland in

June. Day one of the Australian

Formula One Grand Prix was under way in Melbourne today. The main race isn't until

Sunday but fans lined up early under grey skies to watch

warm-ups and meet drivers.

Jenson Button was among those

keep - keeping busy. He is heading into his 13th season heading into his 13th season at

the top level and says he is constantly evolving. It has

flown by, but I have gained so

much experience along the way.

In terms of driving, setting up

the car with the engineers, but

also finetuning in other ways

which you don't realise you

need to do as a youngster. As

you get older, not that you get older, not that I'm

old, I'm 32, you find layers

the whole time, you always

improve as a driver. There is

always more to learn and as

long as you are open, keep your

eyes open, you can always keep

improveing, I feel. Australian

tennis player Matthew Ebden tennis player Matthew Ebden has

lost his fourth round match in

John Indian wels. Ebden went down to

John Isner. All of the top

players have progressed to the quarterfinals including Novak Djokovic and Rafael Nadal. Nadal will play David

Nalbandian next after the Argentinian beat Jo Wilfried

Tsonga in three. New Zealand's

had a catastrophic collapse on

cricket test the opening day of the second

cricket test against South

Africa. The Black Caps were all

out for 185 though the Proteas

haven't made the best start haven't made the best start to

their reply. They lost two

wickets before stumps. New

Zealand started well and was

2/133 at one stage, but in an 2/133 at one stage, but in

extraordinary turn, the Black

Caps lost five for none in the

space of 20 balls. COMMENTATOR:

That's not one. It is 5/0 now

in this horrific run of cricket

for the Black Caps. It is only

the third time that's ever

happened in a Test with New Zealand owning all three unwanted places in history. Sri

Lanka is 6/166 after 39 overs

in its Asia Cup match against Pakistan. Sri Lanka has had

plenty of match practice. A lot

against the Aussies losing that

final one, unfortunately final one, unfortunately for their fans. Thanks. All roads

may lead to Rome, however, in

Italy's capital, it is the

street names causing a problem.

Because most of them are named

after men and women across

Italy are campaigning to change

that. According to an old

saying, all roads lead to Rome

and most of them carrying the

name of a famous Italian name of a famous Italian from

2,000 years of history. From

writers to philosophers, to

former kings. But look closer and you

and you will find they have one and you will find they have

thing in common. Most streets

are named after men. Only 3% of them

them pay homage to women. Now

school teacher Leila Zammar has started a Facebook campaign

calling for a U-turn in which she

she says is widespread misogyny. We are not only

bodies, we also have intellectual values, so it intellectual values, so it is

important to dedicate street

names to women that have had an

intellectual value, an intellectual know. The campaign has spread intellectual importance, you

to the whole country with women

from all across Italy counting how many streets in their cities are named after women. how many streets in their own

It turns out not many. Now they

are fighting for their right to

be acknowledged one street at a time. Among the campaign

supporters, the wife of the Mayor of Rome. TRANSLATION:

The campaign highlights

centuries of discrimination and

exclusions against women. To

this day, women this day, women are disadvantaged,

disadvantaged, especially in

politics and in the work place.

In Italy, only 46% of In Italy, only 46% of women are employed. Only 18% of them are

in Government. Campaigners know

the road for female visibility

on Roman roads will be paved

with obstacles but they are committed to add a woman's

to touch to the city. To keep

touch to the city. To keep up

to date on all the stories we

are following, you can log to our web site. are following, you can log on

Abc.net.au/news. That

evening. I will be back in a

few moments with news

headlines. I'm Scott Bevan.

Thanks for your company. Closed Captions by CSI Thanks This Program is Captioned

The top stories from ABC News

- the former Federal Treasurer

Peter Costello has criticised

the appointment of Sydney businessman David Gonski to

head the Future Fund. The

Government had originally asked

Mr Gonski to help select a new chairman and he suggested Mr Costello, who has been a fund Costello,

board member since being appointed by Kevin Rudd. But in

a shock move, the Government

instead appointed David Gonski.

Mr Costello says the Government has damaged the fund's

reputation by mishandling

process. Queensland Premier

Anna Bligh says she has proof

that Campbell Newman had

definite links with a campaign

donor. The Crime and Misconduct

Commission is assessing

payments made from a developer

to Mr Newman's Lord Mayoral