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There's been no breakthrough
in the month-long negotiations
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to find a way out
of Europe's financial crisis.
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Getting the French, Germans and British
out of their economic mess
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has so far eluded all three governments,
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with the result that Greece,
Ireland, Spain, Portugal and Italy
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are still economic disaster zones,
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teetering on the edge of bankruptcy.
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Over here. Over here.
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Reporter". When the prime minister
emerged from the talks
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earlier this morning,
he seemed surprisingly calm.
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Yet, he refused to speak to reporters.
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We understand that he is due to appear
on the one o'clock news
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before going
to chequers for the weekend.
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So, prime minister,
the pound is falling,
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the ftse's dropping like a stone,
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inflation could be on the way up,
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your coalition is divided,
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and now the conference
on the euro crisis
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looks like a dead end.
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It's all a bit of a disaster, isn't it?
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You know, I'm glad you asked me that.
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So, would you like to give us an answer?
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- Yes.
- Yes, it looks like a disaster?
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No, no! It's not a disaster.
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And, yes,
I'd like to answer the question.
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Please don't interrupt
until after I've finished speaking.
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To you it may look like a disaster,
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but you don't know what's been going on
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inside Lancaster house.
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- No, that's why I'm asking about it.
- No, no.
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You're asking if it's all a disaster,
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typically loaded question,
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completely prejudicial.
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Have you ever considered
asking something open-minded, like,
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"how are negotiations going?"
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Fine. How are negotiations going?
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Well, obviously, I can't tell you that.
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- They're... they're confidential.
- But...
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I can tell you
there has been much progress.
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A Frank exchange of views
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and we all have an increasingly clear
understanding of the situation.
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Like the crew of the Titanic
when they hit the iceberg?
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No! There's a great deal of good will
and each country wants an agreement.
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But each country wants
a different agreement!
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If we all wanted the same thing,
we wouldn't be here negotiating!
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There'd be no need to negotiate.
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No, the fact of the matter is,
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we all have to pull together,
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tighten our belts.
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We need some give and take.
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Because, if, at the end of the day,
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we all want a better 'tomorrow...
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We're all in the same boat.
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The ss Titanic!
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No, not the Titanic.
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Nothing else to ask?
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I was waiting to be sure
I wasn't interrupting.
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Today is Friday. Monday is the last day
of this economic summit.
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Is there any likelihood
of an agreement by then?
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The treaty of Rome
wasn't built in a day, you know!
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At the very least, we'll have done
some invaluable ground work
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for the next conference.
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You said that after the last conference.
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I did. And do you know I believe
that consistency is important.
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- Thank you, prime minister.
- Thank you.
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And the main headline again,
there is still no sign of agreement
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at the Lancaster house conference.
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The prime minister has denied
that the European union
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is sailing on the Titanic.
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And now, the weather.
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It's a gloomy forecast
for the next couple of days,
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with further severe
thunderstorms, I'm afraid,
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heading in towards London
and the home counties...
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Why did you allow him
to give that interview?
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I couldn't stop him, sir Humphrey.
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He's so desperate for attention.
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Everything's so awful.
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What is awful, Bernard?
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All these jobs going!
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Interest rates, repossessions,
fear of inflation.
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Oh, yes! Terrible!
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You don't sound terribly worried,
sir Humphrey.
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Bernard, I am not being sacked,
repossessed or inflated.
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Nor is the prime minister,
but he's worried stiff.
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And so he should be.
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- You don't sympathise with him?
- Bernard, that's the deal.
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That's how prime ministers' careers go.
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They get to be on the front page
every day for years, which they love.
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They travel the long path, Bernard.
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From euphoric triumph
to ignominious failure.
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And then they make way
for the next saviour of the nation.
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It's called democracy.
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It beats me why anyone
would want to be prime minister.
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It's the only top job
that requires no previous experience.
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No training, no qualifications
and limited intelligence.
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Sir Humphrey, you do believe
in democracy, don't you?
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Do I, Bernard?
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Well, actually, no.
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Well, not as most people understand it.
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You see, Bernard,
democracy should not be
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about executing the will of the people.
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No, it should be the process
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whereby we secure
the consent of the people
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to the policies of those qualified
to decide on their behalf.
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- Like who?
- Like us, Bernard!
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Well, I believe
in democracy, sir Humphrey.
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It does you credit.
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And if all the voters were as informed
and as intelligent as,
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well, say me or even you, Bernard,
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then, yes, that could possibly work,
but it's hardly realistic.
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Well, obviously,
we have to stop the government
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from making stupid mistakes.
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But I am there to help him.
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Bernard! We have a leadership crisis
in this country
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and if the government
can't or won't exercise it,
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it falls to us,
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whether we want it or not.
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I know! Power abhors a vacuum.
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And we are currently led by one.
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And it is made even worse
because he has no overall majority.
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A hung parliament's a bad thing?
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Yes, Bernard.
Hanging's too good for them.
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Well, at least the coalition agreement
that they came up with seems reasonable.
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Well, of course it is, Bernard,
I wrote it for them.
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If the prime minister wants to do
something silly,
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we can make sure
that his coalition partners stop him.
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And we should exercise power, Bernard,
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because we have nothing
to gain or lose personally.
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We have respectable salaries,
honours, an office, a chauffeur...
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00:06:34,470 --> 00:06:35,881
Well, I haven't got a chauffeur!
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You will, Bernard, when you grow up.
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We end up with an index-linked pension,
a bank directorship,
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couple of nicely remunerated quangos
and a cottage in the dordogne.
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So, we can be even-handed
in our judgements
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and make them entirely
in the public interest.
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That interview went pretty well,
didn't it?
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Didn't you think so?
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You didn't think so?
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Well, it wasn't that bad, was it?
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Was it?
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You thought it was that bad.
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Oh, my God!
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Why did you give that interview?
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Somebody has to give
a positive impression.
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Honestly, Jim,
I am head of your policy unit.
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I wish you'd talk to me
before revealing to the nation
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just how awful everything is.
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Will you be able to get
some sort of agreement?
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Doesn't look like it.
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Dealing with the Europeans
is like herding cats!
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Being president of Europe isn't enough.
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Europe is an empire,
it needs an emperor!
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You mean you?
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Well, of course, it's not...
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Yeah, please don't say that to the BBC.
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No. No, I'll try not to.
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We cannot govern Europe
without joining the euro.
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Why not?
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We governed India
without joining the rupee.
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So, what's the agenda for this weekend?
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Oh! Find a way of ending this conference
without looking like a complete idiot.
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And why haven't you invited
the foreign secretary to chequers?
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The foreign secretary?
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Well, he does have an interest.
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His only interest
is in pushing me overboard
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and taking my job.
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And you haven't invited
the chancellor either.
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No. Sir Humphrey advised me
not to ask either of them, actually.
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- Why not?
- He wants a quiet weekend, he says.
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Just the home team.
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You, me, him and Bernard.
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Hmm. It's so unlike him.
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He's up to something.
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I'll find out.
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And we'll try to come up
with some sort of final communiqu�.
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That'll make it a success?
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Claire! Dealing with Europe
isn't about achieving success.
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It's about concealing failure.
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Yes.
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The prime minister's arrived.
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- How does he sound?
- Irritable.
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Well, things may not seem so bad soon,
when we tell the prime minister
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about kumranistan.
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"European central bank to the rescue."
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Bernard, do not mention the ecb
to the prime minister.
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- No, sir Humphrey.
- And whatever you do,
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don't let him know
that that kumranistan plan
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is dependent on our joining the euro.
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But it does say so in the ecb proposal.
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00:09:15,350 --> 00:09:17,000
Yes, but not until page 67.
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And he never gets
beyond page three of anything.
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And then he jumps to the last paragraph.
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But conceal this report, just in case.
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Vehicle licensing centre, swansea.
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Yes.
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Bottom of the fifth box.
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Fifth box.
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He'll never find it.
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This had better work, Bernard.
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You know his views on Europe.
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00:09:43,990 --> 00:09:47,119
Well, I know he's afraid brussels
wants to take away most of his powers.
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They already have.
203
00:09:49,510 --> 00:09:50,671
And so they should.
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Now, all we need him to do
is to preside at tonight's dinner.
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Pretend he's read this kumranistan plan
and leave the rest to us.
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Sorry I'm late.
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00:10:00,630 --> 00:10:03,031
It's been a terrible day.
208
00:10:03,190 --> 00:10:04,635
Any particular reason?
209
00:10:05,230 --> 00:10:07,278
- You've read about the cabinet split?
- Yes.
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00:10:07,550 --> 00:10:09,075
And you have seen what has happened
to the ftse?
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00:10:09,150 --> 00:10:10,197
- Yes.
- And the pound?
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00:10:10,270 --> 00:10:12,272
- Yes.
- And the inflation forecast?
213
00:10:12,350 --> 00:10:14,352
- Yes.
- And the rising unemployment figures?
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00:10:14,430 --> 00:10:15,511
Yes.
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00:10:15,590 --> 00:10:17,797
So how many particular reasons
do you want?
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00:10:17,870 --> 00:10:18,871
Well...
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00:10:18,950 --> 00:10:21,521
And now this Lancaster house conference
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00:10:21,590 --> 00:10:23,080
is turning into a catastrophe!
219
00:10:23,510 --> 00:10:24,955
Well, it was your idea to convene it.
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00:10:25,150 --> 00:10:28,359
If you become president of Europe
in the middle of the biggest
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00:10:28,430 --> 00:10:30,956
financial crisis for 80 years...
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00:10:31,030 --> 00:10:34,477
Prime minister, with respect, there is
no such title as president of Europe.
223
00:10:34,830 --> 00:10:37,481
Oh, you are so pedantic, Bernard!
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00:10:39,150 --> 00:10:41,676
All right, what is my
official title then?
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00:10:41,750 --> 00:10:43,115
President of the European council?
226
00:10:43,310 --> 00:10:46,154
Uh, no, prime minister, the presidency
of the European council
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00:10:46,230 --> 00:10:47,880
went to the Belgian prime minister.
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00:10:48,150 --> 00:10:49,993
Who is completely unknown.
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00:10:50,230 --> 00:10:51,834
Well, obviously. He's Belgian.
230
00:10:53,430 --> 00:10:55,080
And not elected.
231
00:10:55,590 --> 00:10:57,399
Appointed in secret.
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00:10:57,710 --> 00:11:00,077
Of course, you wouldn't have a problem
with that, would you, Humphrey?
233
00:11:00,150 --> 00:11:02,437
Oh, prime minister,
you do me an injustice.
234
00:11:02,710 --> 00:11:06,556
I'm all in favour of elections,
provided the right people do the voting.
235
00:11:07,710 --> 00:11:08,950
I don't understand this!
236
00:11:09,030 --> 00:11:11,158
I'm sure I'm President of the council.
237
00:11:11,230 --> 00:11:13,119
I remember being in the chair.
238
00:11:13,430 --> 00:11:15,273
Well, it is a little confusing,
prime minister.
239
00:11:15,350 --> 00:11:17,398
You see, we, the British,
240
00:11:17,470 --> 00:11:20,440
have the presidency of the council
of the European union.
241
00:11:20,510 --> 00:11:21,591
That's what I said!
242
00:11:21,670 --> 00:11:24,958
Uh, no. The European council
and the council of the European union
243
00:11:25,030 --> 00:11:26,077
are not the same thing.
244
00:11:27,070 --> 00:11:30,233
The President of the European council
is there for 30 months
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00:11:30,350 --> 00:11:32,956
and is in charge of, well,
preparing the agenda
246
00:11:33,030 --> 00:11:35,431
and chairing the meetings
of the European council.
247
00:11:35,750 --> 00:11:39,436
Whereas the presidency of the council
of the European union
248
00:11:39,590 --> 00:11:42,116
is held for six months each
by rotating states
249
00:11:42,190 --> 00:11:44,796
and not by individual leaders
and not by you.
250
00:11:47,670 --> 00:11:49,672
So which of them really runs Europe?
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00:11:49,750 --> 00:11:50,831
Oh, I see!
252
00:11:50,910 --> 00:11:51,991
Neither.
253
00:11:53,110 --> 00:11:55,716
Uh, prime minister,
let me simplify it for you.
254
00:11:56,190 --> 00:12:00,115
The European union is run on
an intricate and sophisticated system
255
00:12:00,270 --> 00:12:02,432
based on an hierarchical structure
256
00:12:02,630 --> 00:12:06,112
of interlocking
and overlapping jurisdictions
257
00:12:06,430 --> 00:12:10,276
designed to separate the powers
while reinforcing the authority
258
00:12:10,390 --> 00:12:12,552
of the departments,
institutions and agencies
259
00:12:12,630 --> 00:12:16,430
who collectively and separately
control and supervise
260
00:12:16,510 --> 00:12:19,992
the diverse activities of the union
and its associated organisations.
261
00:12:22,070 --> 00:12:26,359
So, Europe is actually
run by the president
262
00:12:26,550 --> 00:12:30,271
of the European commission who is akin
to the prime minister of Europe
263
00:12:30,430 --> 00:12:33,957
because he is elected
and he heads a cabinet government.
264
00:12:34,630 --> 00:12:38,077
But the President of the council,
265
00:12:38,150 --> 00:12:40,517
he is, in fact, appointed, not elected.
266
00:12:40,590 --> 00:12:43,070
And he presides over the meetings
of that council,
267
00:12:43,150 --> 00:12:44,436
which is not the cabinet.
268
00:12:45,990 --> 00:12:49,437
And then, prime minister, there is
the council of the European union.
269
00:12:51,990 --> 00:12:54,960
Now, britain currently
has that presidency.
270
00:12:56,390 --> 00:12:59,394
And, while you are
the rotating president,
271
00:13:00,190 --> 00:13:02,352
the presidency itself
is not yours personally.
272
00:13:03,590 --> 00:13:04,921
That simplifies it?
273
00:13:05,870 --> 00:13:07,872
Prime minister,
what it all boils down to,
274
00:13:07,950 --> 00:13:09,111
as far as you're concerned,
275
00:13:09,390 --> 00:13:12,917
is the difference between years
of being head of an empire
276
00:13:13,030 --> 00:13:15,397
of nearly 500 million people
277
00:13:15,590 --> 00:13:17,877
and chairing the council of ministers
for six months.
278
00:13:17,990 --> 00:13:20,391
The fact of the matter is,
I am the president,
279
00:13:20,470 --> 00:13:22,120
or I have the presidency.
280
00:13:22,190 --> 00:13:24,113
I don't give a hoot what we call it.
281
00:13:24,510 --> 00:13:28,151
And I convened the conference
on this dreadful recession
282
00:13:28,230 --> 00:13:30,710
and the resulting euro crisis.
283
00:13:30,910 --> 00:13:32,241
I had to do something.
284
00:13:32,350 --> 00:13:35,194
And the conference was something,
so you did it. Well done.
285
00:13:37,830 --> 00:13:42,631
But now it's falling apart,
which might just about finish me.
286
00:13:42,830 --> 00:13:45,754
Well, prime minister,
it might not be falling apart.
287
00:13:46,190 --> 00:13:49,399
Uh, did you see my interview on TV
this lunchtime?
288
00:13:49,510 --> 00:13:51,433
- Yes, prime minister.
- How was it?
289
00:13:54,310 --> 00:13:55,755
What was wrong with it?
290
00:13:55,870 --> 00:13:58,794
"Ours not to reason why,
ours but to do and die."
291
00:14:00,030 --> 00:14:02,397
You just said the conference
may not be falling apart.
292
00:14:02,470 --> 00:14:04,996
Don't you know what's going on?
Don't you keep up?
293
00:14:05,390 --> 00:14:07,597
Haven't you been reading
the conference reports?
294
00:14:07,910 --> 00:14:09,639
I have. Have you?
295
00:14:11,070 --> 00:14:12,196
Not my fault.
296
00:14:13,750 --> 00:14:15,434
The spadework wasn't done properly.
297
00:14:15,670 --> 00:14:18,879
The foreign office and the treasury
let me down, badly.
298
00:14:19,190 --> 00:14:21,477
I think the foreign secretary
and the chancellor
299
00:14:21,550 --> 00:14:23,200
are plotting to get rid of me already.
300
00:14:23,390 --> 00:14:25,757
That's why I suggested
not inviting them this weekend.
301
00:14:25,950 --> 00:14:30,035
But everyone knows you have
to agree the final bulletin
302
00:14:30,310 --> 00:14:32,756
before the conference begins.
303
00:14:33,230 --> 00:14:35,801
But instead of having
everything nailed down
304
00:14:35,870 --> 00:14:38,794
before they all convened,
they left it to chance.
305
00:14:38,870 --> 00:14:39,917
Useless!
306
00:14:42,990 --> 00:14:45,231
Oh, oh, yes, yes. Very good.
307
00:14:47,150 --> 00:14:48,197
What?
308
00:14:48,550 --> 00:14:51,520
"For those in misery,
perhaps better things will follow."
309
00:14:51,870 --> 00:14:53,395
Well said, Bernard.
310
00:14:54,510 --> 00:14:56,877
I didn't actually say that,
that was Virgil.
311
00:14:56,950 --> 00:14:58,076
Yes, I know that, Bernard.
312
00:14:58,790 --> 00:15:01,316
It was completely predictable.
313
00:15:01,830 --> 00:15:04,595
The krauts don't want a stimulus plan.
314
00:15:05,110 --> 00:15:07,112
They're terrified of runaway inflation.
315
00:15:07,190 --> 00:15:09,033
That's what destroyed
the weimar Republic
316
00:15:09,110 --> 00:15:10,236
and brought them Hitler.
317
00:15:10,950 --> 00:15:12,793
The wops and the dagos
318
00:15:13,510 --> 00:15:16,434
are up to their armpits in debt already.
319
00:15:16,750 --> 00:15:20,835
The frogs only want it
if France gets all the benefits.
320
00:15:20,910 --> 00:15:23,117
Prime minister, I really think
you should stop using
321
00:15:23,190 --> 00:15:26,114
these vintage pejorative epithets
to describe our allies.
322
00:15:27,710 --> 00:15:29,314
They might slip out in public sometime.
323
00:15:29,430 --> 00:15:31,080
Quite right, Bernard. Thank you.
324
00:15:31,670 --> 00:15:34,401
And the micks and the polacks
325
00:15:34,470 --> 00:15:36,950
aren't getting the subsidies
they were promised,
326
00:15:37,030 --> 00:15:39,032
which they regard as a betrayal.
327
00:15:39,710 --> 00:15:43,556
So it is time for me to get hands-on
and give some leadership.
328
00:15:43,790 --> 00:15:44,871
Oh, good.
329
00:15:44,950 --> 00:15:46,076
So,
330
00:15:46,430 --> 00:15:47,511
tell me what I should do.
331
00:15:47,630 --> 00:15:48,677
Ah!
332
00:15:49,790 --> 00:15:52,794
Now, that's just the kind
of leadership we need.
333
00:15:52,870 --> 00:15:55,191
Oh! Thank you, Humphrey.
334
00:15:55,510 --> 00:15:58,320
And, prime minister,
we have good news for you.
335
00:15:58,630 --> 00:16:01,361
Late last night, we had
a breakthrough at Lancaster house.
336
00:16:01,430 --> 00:16:03,194
A new player has appeared on the scene.
337
00:16:03,270 --> 00:16:05,159
The Americans?
Are they coming after all...
338
00:16:05,430 --> 00:16:08,639
Ah, no, prime minister,
their position is immutable.
339
00:16:08,710 --> 00:16:12,237
They will not come to this conference
because you won't let them chair it.
340
00:16:12,310 --> 00:16:15,996
I can't let them chair
a European conference, Humphrey.
341
00:16:16,430 --> 00:16:17,511
Look at the map!
342
00:16:21,030 --> 00:16:24,193
Well, it could become an international
conference, prime minister.
343
00:16:24,350 --> 00:16:27,559
That could save the whole
European financial system
344
00:16:27,630 --> 00:16:28,836
from melting down again.
345
00:16:28,910 --> 00:16:32,153
Oh, don't be silly, Humphrey.
I'd lose face.
346
00:16:32,670 --> 00:16:34,115
Oh, yes, of course. Silly me.
347
00:16:34,990 --> 00:16:37,596
Prime minister,
the kumranistanis have joined us.
348
00:16:37,990 --> 00:16:39,037
Good!
349
00:16:40,430 --> 00:16:41,477
Have I heard of them?
350
00:16:42,350 --> 00:16:44,557
Prime minister, they have oil.
351
00:16:44,990 --> 00:16:49,871
Yes, massive new reserves of oil
have been found in kumranistan.
352
00:16:49,950 --> 00:16:55,400
Now, they're offering a possible
$10 trillion loan to Europe
353
00:16:55,510 --> 00:16:57,114
secured against future purchases.
354
00:16:57,390 --> 00:16:59,040
- But that could solve everything.
- Yes.
355
00:16:59,230 --> 00:17:00,755
- Save the conference.
- Yes.
356
00:17:00,830 --> 00:17:02,798
- Save Europe, in fact.
- Yes!
357
00:17:02,990 --> 00:17:05,596
"Triumph for the prime minister."
358
00:17:06,990 --> 00:17:09,755
"Victory for the president of Europe."
359
00:17:09,830 --> 00:17:10,877
Uh, prime minister, you are not...
360
00:17:10,950 --> 00:17:13,715
"Victory for the
president of Europe", Humphrey.
361
00:17:14,030 --> 00:17:15,441
Might even save your job.
362
00:17:15,550 --> 00:17:18,030
My job is perfectly safe.
363
00:17:18,150 --> 00:17:20,630
Other people have survived
with small majorities.
364
00:17:20,790 --> 00:17:24,431
Wilson had a majority of four in 1964
365
00:17:24,510 --> 00:17:26,194
and he lasted six years.
366
00:17:26,430 --> 00:17:28,432
But he did have to fight
a second election pretty soon
367
00:17:28,510 --> 00:17:29,875
to get a working majority.
368
00:17:29,990 --> 00:17:31,230
And Wilson had hair.
369
00:17:36,590 --> 00:17:38,160
What are you saying, Bernard?
370
00:17:38,470 --> 00:17:40,472
Well, it's just that no prime minister
371
00:17:40,550 --> 00:17:43,201
or us president has been elected
without a full head of hair
372
00:17:43,270 --> 00:17:45,716
since eisenhower and Churchill
in the 1950s.
373
00:17:50,230 --> 00:17:52,881
So I'm saying you did magnificently well
374
00:17:52,950 --> 00:17:55,157
to cobble together a majority of two.
375
00:17:55,990 --> 00:17:58,675
I had hair when I was first elected.
376
00:17:59,750 --> 00:18:03,118
I lost my hair in the service
of my country.
377
00:18:03,830 --> 00:18:06,071
Indeed you did, prime minister.
378
00:18:06,350 --> 00:18:07,397
Indeed.
379
00:18:07,470 --> 00:18:08,517
Uh, prime minister,
380
00:18:08,590 --> 00:18:12,390
this kumranistan deal
could solve all your problems.
381
00:18:12,470 --> 00:18:13,551
Fine, where do I sign?
382
00:18:13,990 --> 00:18:15,594
No. We're not quite there yet.
383
00:18:15,670 --> 00:18:17,638
Uh, they do want something in exchange.
384
00:18:17,910 --> 00:18:19,799
- You know where kumranistan is?
- Yes.
385
00:18:21,990 --> 00:18:23,480
Well, sort of.
386
00:18:24,070 --> 00:18:25,754
You know, it's over there.
387
00:18:27,110 --> 00:18:29,033
It lies in turkistan,
388
00:18:29,390 --> 00:18:33,281
to the north of Uzbekistan,
Kazakhstan and Afghanistan.
389
00:18:33,550 --> 00:18:36,030
- Here, in fact.
- As I said, exactly.
390
00:18:36,630 --> 00:18:39,554
Now, they had been planning
to take their oil to Europe
391
00:18:39,630 --> 00:18:40,791
through the Soviet pipeline...
392
00:18:41,070 --> 00:18:44,552
They're not Soviets any more, Humphrey,
they're Russians.
393
00:18:44,630 --> 00:18:47,201
They haven't been Soviets
for over 20 years.
394
00:18:47,270 --> 00:18:49,750
They still are in spirit
and always will be.
395
00:18:50,390 --> 00:18:52,996
The, urn, Russians want
a pretty huge payment.
396
00:18:53,070 --> 00:18:55,437
Which kumranistan does not want to pay
397
00:18:55,510 --> 00:18:59,356
since the Soviets will have
their hands on the pipeline tap.
398
00:18:59,470 --> 00:19:03,441
So, with a little prompting from us,
the kumranistanis came up with a plan b.
399
00:19:03,750 --> 00:19:06,435
A pipeline through Turkey,
Greece and Southern Europe,
400
00:19:06,750 --> 00:19:08,275
avoiding Russia altogether.
401
00:19:08,510 --> 00:19:10,911
What they need now
is European agreement.
402
00:19:11,190 --> 00:19:14,831
And that's what they're
prepared to lend us $10 trillion for.
403
00:19:14,990 --> 00:19:16,037
Why?
404
00:19:16,110 --> 00:19:20,160
They want the guarantee of future
oil purchases by everyone in the eu.
405
00:19:20,990 --> 00:19:22,196
No, I don't get it.
406
00:19:22,670 --> 00:19:24,672
It's awfully simple, prime minister.
407
00:19:25,430 --> 00:19:26,477
Urn...
408
00:19:26,550 --> 00:19:30,794
Kumranistan will lend Europe the money
to buy kumranistan's oil.
409
00:19:31,030 --> 00:19:34,000
And Europe borrows
another 10 trillion more debt?
410
00:19:34,270 --> 00:19:36,750
Oh, the debt is not a problem.
It doesn't have to be repaid for years.
411
00:19:37,190 --> 00:19:40,319
See, we get the money now,
interest-free,
412
00:19:40,510 --> 00:19:42,035
but we repay it in the future,
413
00:19:42,150 --> 00:19:44,551
when we buy the oil
that we will need anyway.
414
00:19:44,630 --> 00:19:45,961
So, how do they make their money?
415
00:19:46,150 --> 00:19:48,152
Ah, we will have to pay a premium...
416
00:19:48,270 --> 00:19:51,114
- Ah!
- But not for many years to come,
417
00:19:51,350 --> 00:19:53,637
when there will be
a different government.
418
00:19:57,150 --> 00:19:58,561
Oh, that's all right then.
419
00:20:00,550 --> 00:20:02,439
Are all the Europeans on board?
420
00:20:02,510 --> 00:20:04,000
They are, prime minister.
421
00:20:04,070 --> 00:20:06,596
And the problems
are what we've been negotiating
422
00:20:06,830 --> 00:20:09,151
as you will have seen in your red boxes?
423
00:20:09,230 --> 00:20:11,358
Yes. But remind me.
424
00:20:12,430 --> 00:20:15,991
Well, as you'll doubtless remember,
the turks refused to cooperate
425
00:20:16,070 --> 00:20:18,471
unless they were admitted
to the European union.
426
00:20:18,550 --> 00:20:19,961
Now, I see their point.
427
00:20:20,230 --> 00:20:22,676
I've always had a soft spot
for Johnny turk.
428
00:20:22,750 --> 00:20:25,913
Johnny turk!
You're on first name terms, then?
429
00:20:27,350 --> 00:20:29,717
Oh!
430
00:20:30,990 --> 00:20:32,833
Yes, that's very droll, prime minister.
431
00:20:33,790 --> 00:20:35,758
Turkey is an important ally.
432
00:20:35,830 --> 00:20:39,357
They are the only Muslim country with
a secular democracy, prime minister.
433
00:20:39,430 --> 00:20:41,194
- We do need...
- Johnny turk!
434
00:20:41,270 --> 00:20:42,510
Yes.
435
00:20:42,870 --> 00:20:44,440
Anyway, everything is agreed.
436
00:20:45,750 --> 00:20:48,356
Everyone gets a share
in the construction.
437
00:20:49,270 --> 00:20:50,317
Ah!
438
00:20:50,390 --> 00:20:51,516
Here's the route.
439
00:21:01,230 --> 00:21:03,039
Well, that looks pretty straightforward.
440
00:21:05,510 --> 00:21:06,796
- We're saved!
- Yes.
441
00:21:07,550 --> 00:21:09,552
But why didn't I know about all this?
442
00:21:09,790 --> 00:21:11,997
- It's top secret.
- Oh, good God, Humphrey.
443
00:21:12,070 --> 00:21:13,117
I'm the prime minister.
444
00:21:13,190 --> 00:21:14,601
Yes, I know.
445
00:21:16,190 --> 00:21:18,591
And what an excellent prime minister
you are.
446
00:21:18,670 --> 00:21:20,240
But this had to be kept under wraps.
447
00:21:20,310 --> 00:21:21,675
If this had leaked,
448
00:21:21,750 --> 00:21:23,957
this week the money markets
would have gone mad.
449
00:21:24,030 --> 00:21:25,077
I see.
450
00:21:25,510 --> 00:21:27,717
Well, is that everything I need to know?
451
00:21:27,790 --> 00:21:29,394
- Yes.
- Well, there is one more thing.
452
00:21:29,470 --> 00:21:30,596
Bernard?
453
00:21:31,710 --> 00:21:35,078
A power group in kumranistan
still want the Russian route.
454
00:21:35,310 --> 00:21:37,677
Oh, Bernard is absolutely right,
prime minister.
455
00:21:37,750 --> 00:21:39,434
They didn't want to upset the Soviets.
456
00:21:39,670 --> 00:21:42,560
Well, it is understandable.
They do share a border.
457
00:21:42,950 --> 00:21:45,396
But the kumranistan foreign secretary,
458
00:21:45,670 --> 00:21:49,595
he has come over here to offer us
the deal, if we want it.
459
00:21:49,830 --> 00:21:50,991
Invite him to dinner!
460
00:21:51,190 --> 00:21:52,874
- Tonight!
- I did, prime minister.
461
00:21:53,230 --> 00:21:55,198
That's why we're here.
462
00:21:56,830 --> 00:21:58,514
And he can do the deal, now?
463
00:21:58,590 --> 00:22:00,433
Yes, he has the authority,
prime minister,
464
00:22:00,510 --> 00:22:02,751
but he needs careful handling.
465
00:22:03,150 --> 00:22:05,596
They are very sensitive about respect.
466
00:22:05,990 --> 00:22:09,392
You get an awful lot of respect
for $10 trillion.
467
00:22:09,830 --> 00:22:11,594
He can have all mine for a start.
468
00:22:11,670 --> 00:22:14,321
Oh, excellent, prime minister.
469
00:22:16,790 --> 00:22:17,916
Bernard!
470
00:22:18,150 --> 00:22:19,197
Yes, prime minister?
471
00:22:19,270 --> 00:22:21,591
There's something you're not
happy about, what is it?
472
00:22:21,790 --> 00:22:25,192
- Well, I'm not really sure i...
- Oh, spit it out, Bernard.
473
00:22:25,390 --> 00:22:26,471
Well, I...
474
00:22:26,910 --> 00:22:27,991
Ah.
475
00:22:30,830 --> 00:22:31,956
What?
476
00:22:32,550 --> 00:22:34,279
"I fear the greeks,
477
00:22:34,510 --> 00:22:36,877
"especially when they bring gifts."
478
00:22:41,630 --> 00:22:44,031
Remember the trojan horse,
prime minister.
479
00:22:50,390 --> 00:22:52,358
The greeks can't afford gifts!
480
00:23:00,430 --> 00:23:01,591
Ah, Claire,
481
00:23:01,830 --> 00:23:03,639
could you come to my study, please?
482
00:23:04,790 --> 00:23:05,951
Now.
483
00:23:17,310 --> 00:23:18,357
Yes, come in.
484
00:23:18,950 --> 00:23:20,475
Ah, Claire.
485
00:23:20,710 --> 00:23:23,680
There's something I don't know
about this pipeline plan.
486
00:23:23,750 --> 00:23:25,275
Yes, I've just been finding out
about it.
487
00:23:25,550 --> 00:23:27,075
What is it Humphrey
hasn't been telling me?
488
00:23:27,230 --> 00:23:28,311
Well, how about the truth?
489
00:23:28,510 --> 00:23:30,672
- What have you found out?
- I'll tell you when I'm sure.
490
00:23:30,750 --> 00:23:32,912
Maybe there's something in here.
491
00:23:34,070 --> 00:23:36,072
- Was that the bottom box?
- Of course.
492
00:23:36,430 --> 00:23:38,592
- Yeah, try the bottom file.
- Oh, yes!
493
00:23:41,750 --> 00:23:44,913
"Vehicle licensing centre, swansea."
494
00:23:45,950 --> 00:23:46,997
Yes!
495
00:23:49,350 --> 00:23:52,797
"Proposal for kumranistan oil pipeline."
496
00:23:53,430 --> 00:23:55,273
I think it could be
about the pipeline mechanics.
497
00:23:55,350 --> 00:23:58,911
Oh, I don't care about the mechanics.
I'm not an engineer.
498
00:23:59,110 --> 00:24:02,000
No, fiscal mechanics, Jim,
financial engineering.
499
00:24:02,070 --> 00:24:04,471
Perhaps, Humphrey has arranged
for the proposed loan
500
00:24:04,550 --> 00:24:06,234
to go through the European central bank
501
00:24:06,310 --> 00:24:07,391
and isn't mentioning it.
502
00:24:07,470 --> 00:24:08,551
Is that important?
503
00:24:13,910 --> 00:24:14,957
Yes.
504
00:24:15,550 --> 00:24:18,156
Yes, if so, if we want any of the loan,
505
00:24:18,430 --> 00:24:19,795
we'll have to join the euro.
506
00:24:19,990 --> 00:24:23,517
We can't join the euro,
it would be a catastrophe!
507
00:24:24,030 --> 00:24:25,555
Look what's happened to Greece,
508
00:24:25,830 --> 00:24:28,356
Spain, Italy, Ireland, Portugal!
509
00:24:28,870 --> 00:24:31,441
Hand over control of interest rates,
510
00:24:31,590 --> 00:24:33,399
control of exchange rates,
511
00:24:33,590 --> 00:24:35,319
control of the money supply?
512
00:24:35,630 --> 00:24:38,600
What if I need to inflate
to get re-elected?
513
00:24:41,070 --> 00:24:44,677
If the Germans are worried
about rising prices,
514
00:24:44,830 --> 00:24:48,039
the ecb could deflate
and I could get kicked out.
515
00:24:48,110 --> 00:24:50,477
Well, candidly, I not sure
that that would bother sir Humphrey.
516
00:24:50,630 --> 00:24:52,200
Well, let's find out.
517
00:24:55,030 --> 00:24:57,840
Yes, Bernard, tell Humphrey
I want to see him, please.
518
00:24:57,950 --> 00:24:59,793
No, no,
519
00:24:59,870 --> 00:25:03,079
anytime within the next
10 seconds will do.
520
00:25:04,630 --> 00:25:05,711
Yes?
521
00:25:06,110 --> 00:25:07,157
It's come through.
522
00:25:07,710 --> 00:25:09,200
From the controller general?
523
00:25:10,030 --> 00:25:13,671
Great. Could you print it all out
and I'll come and get it right away.
524
00:25:16,470 --> 00:25:17,517
Oh.
525
00:25:17,870 --> 00:25:19,156
Ah, Humphrey.
526
00:25:25,590 --> 00:25:27,001
Prime minister?
527
00:25:27,230 --> 00:25:28,436
Do sit down!
528
00:25:30,350 --> 00:25:31,556
Tell me,
529
00:25:32,070 --> 00:25:35,517
what would a cabinet secretary do
530
00:25:35,590 --> 00:25:38,161
if he thought that a prime minister
was set on a course
531
00:25:38,230 --> 00:25:40,801
that was seriously damaging to britain?
532
00:25:40,950 --> 00:25:42,315
Do you have a particular
cabinet secretary
533
00:25:42,390 --> 00:25:43,437
or prime minister in mind?
534
00:25:43,590 --> 00:25:44,637
No.
535
00:25:44,710 --> 00:25:46,474
No, purely hypothetical.
536
00:25:46,750 --> 00:25:49,640
Well, the cabinet secretary
would have to argue very strongly.
537
00:25:49,710 --> 00:25:52,554
But if he failed to persuade
the prime minister...
538
00:25:52,630 --> 00:25:53,711
No, I mean, he'd have to.
539
00:25:53,990 --> 00:25:58,678
Ah! So what you're saying is,
he'd have to go along with it or resign.
540
00:25:59,390 --> 00:26:00,437
Uh...
541
00:26:02,350 --> 00:26:03,590
Yes, I suppose I am.
542
00:26:03,790 --> 00:26:04,837
Right.
543
00:26:07,030 --> 00:26:11,194
This kumranistan loan
is all good news, isn't it?
544
00:26:11,470 --> 00:26:12,960
Oh, tremendous news!
545
00:26:13,670 --> 00:26:18,517
There are no hidden snags, you know,
terms and conditions, penalty clauses,
546
00:26:18,950 --> 00:26:21,317
- tough guarantee...
- Oh, no, nothing like that.
547
00:26:21,390 --> 00:26:22,994
- Standard agreement.
- Great!
548
00:26:23,390 --> 00:26:26,314
Just an ordinary treasury loan,
as far as we're concerned.
549
00:26:26,630 --> 00:26:28,314
- In a sense, yes.
- In a sense?
550
00:26:28,710 --> 00:26:30,712
Well, in due course,
following agreed procedures,
551
00:26:30,790 --> 00:26:32,360
after certain formalities.
552
00:26:32,630 --> 00:26:34,917
But the money
goes straight to the treasury.
553
00:26:35,110 --> 00:26:37,431
Oh, it goes
to the treasury, of course. Yes.
554
00:26:37,510 --> 00:26:38,557
Straight
555
00:26:39,670 --> 00:26:40,751
to the treasury?
556
00:26:40,870 --> 00:26:42,440
Well, broadly speaking,
yes, more or less.
557
00:26:42,510 --> 00:26:43,557
Broadly speaking?
558
00:26:43,630 --> 00:26:46,361
How would you describe it
if you were narrowly speaking?
559
00:26:48,670 --> 00:26:51,674
Does it have to go through
the European central bank?
560
00:26:51,830 --> 00:26:54,720
Prime minister, we get the money,
that is what matters.
561
00:26:54,790 --> 00:26:56,394
Let me put this in another way.
562
00:26:56,470 --> 00:26:58,598
Will this loan be in Euros?
563
00:26:58,670 --> 00:27:01,321
Prime minister, I do urge you
not to clutter your mind
564
00:27:01,390 --> 00:27:04,519
with procedural detail
and monetary trivia.
565
00:27:04,790 --> 00:27:06,918
Humphrey, in words of one syllable,
566
00:27:07,150 --> 00:27:10,677
is this plan dependant
on our abandoning sterling
567
00:27:10,790 --> 00:27:11,871
and joining the euro?
568
00:27:11,950 --> 00:27:13,554
Well, dependant has three syllables.
569
00:27:13,790 --> 00:27:16,031
And abandoning has four.
570
00:27:18,830 --> 00:27:19,911
Right, oh, good heavens.
571
00:27:20,190 --> 00:27:21,874
Oh, look at the time, prime minister.
572
00:27:22,030 --> 00:27:25,352
It's almost time for your dinner
with the kumranistan foreign minister.
573
00:27:25,430 --> 00:27:27,592
- Now, you really must not be late.
- Humphrey!
574
00:27:29,390 --> 00:27:30,801
Answer my question!
575
00:27:30,990 --> 00:27:32,355
All right, prime minister.
576
00:27:32,430 --> 00:27:35,718
You have asked a straight question
and I'll give you a straight answer,
577
00:27:37,070 --> 00:27:39,437
which, however,
clearly depends on its context.
578
00:27:40,150 --> 00:27:42,756
In the course
of all financial negotiations,
579
00:27:42,830 --> 00:27:45,834
certain provisos have to be
pre-cogitated
580
00:27:45,910 --> 00:27:47,036
and pre-conditioned.
581
00:27:47,270 --> 00:27:51,070
Various caveats have to be postulated,
designated, investigated,
582
00:27:51,150 --> 00:27:54,359
and specified,
and a number of considerations
583
00:27:54,430 --> 00:27:56,114
have to be unequivocally determined,
584
00:27:56,190 --> 00:27:58,238
acknowledged and indeed
sometimes even conceded
585
00:27:58,590 --> 00:28:02,595
so that we can facilitate
the finalisation of preliminary plans
586
00:28:02,670 --> 00:28:04,911
to create an epistemological basis
587
00:28:05,190 --> 00:28:08,399
for all parties to proceed towards
588
00:28:08,470 --> 00:28:12,520
a mutually beneficial consummation
which will acknowledge and safeguard
589
00:28:12,590 --> 00:28:14,877
the vital interests
of all the participants
590
00:28:14,950 --> 00:28:17,191
without jeopardising in any material way
591
00:28:17,270 --> 00:28:21,195
the underlying collective benefits
ultimately accruing to the signatories
592
00:28:21,270 --> 00:28:24,114
or leaving unresolved
any anomalies or irregularities
593
00:28:24,190 --> 00:28:27,592
which could precipitate
operational uncertainty down the line,
594
00:28:27,670 --> 00:28:29,354
so that there will be a presumed modicum
595
00:28:29,430 --> 00:28:32,400
of iron-clad reciprocity,
which in the great scheme of things
596
00:28:32,470 --> 00:28:34,313
will be to everybody's advantage.
597
00:28:41,110 --> 00:28:42,714
Did that mean yes or no?
598
00:28:44,110 --> 00:28:45,271
Don't you think that yes and no
599
00:28:45,350 --> 00:28:47,717
are rather broad and unspecific
in their application?
600
00:28:47,990 --> 00:28:49,037
No!
601
00:28:50,190 --> 00:28:52,955
I want a clear, unambiguous answer.
602
00:28:53,150 --> 00:28:55,198
Certainly. What was the question again?
603
00:28:56,310 --> 00:28:59,632
Is joining the euro a condition
of getting the loan?
604
00:28:59,950 --> 00:29:02,351
Well, in the sense that
if agreement of the...
605
00:29:02,430 --> 00:29:07,197
Humphrey, I repeat, is joining the euro
a condition of getting the loan?
606
00:29:08,270 --> 00:29:09,715
Yes, prime minister.
47573
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