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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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MAN: 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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(CLEARS THROAT)
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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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(CHUCKLES)
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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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(CALMLY) 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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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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(SIGHS)
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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 communiqué.
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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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(TELEPHONE RINGING)
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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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00:09:07,160 --> 00:09:08,912
—No, Sir Humphrey.
—And whatever you do,
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00:09:09,040 --> 00:09:11,634
don't let him know
that that Kumranistan plan
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is dependent on our joining the euro.
193
00:09:14,080 --> 00:09:16,310
But it does say so in the ECB proposal.
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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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00:09:34,560 --> 00:09:36,710
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.
205
00:09:45,040 --> 00:09:48,158
Well, I know he's afraid Brussels
wants to take away most of his powers.
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00:09:48,400 --> 00:09:49,515
They already have.
207
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And so they should.
208
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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.
211
00:10:01,680 --> 00:10:04,069
—(DOOR SLAMS)
—It's been a terrible day.
212
00:10:04,240 --> 00:10:05,674
Any particular reason?
213
00:10:06,280 --> 00:10:08,317
—You've read about the Cabinet split?
—Yes.
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00:10:08,600 --> 00:10:10,113
And you have seen what has happened
to the FTSE?
215
00:10:10,200 --> 00:10:11,235
—Yes.
—And the pound?
216
00:10:11,320 --> 00:10:13,311
—Yes.
—And the inflation forecast?
217
00:10:13,400 --> 00:10:15,391
—Yes.
—And the rising unemployment figures?
218
00:10:15,480 --> 00:10:16,550
Yes.
219
00:10:16,640 --> 00:10:18,836
So how many particular reasons
do you want?
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00:10:18,920 --> 00:10:19,910
Well...
221
00:10:20,000 --> 00:10:22,560
And now this Lancaster House conference
222
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is turning into a catastrophe!
223
00:10:24,560 --> 00:10:25,994
Well, it was your idea to convene it.
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00:10:26,200 --> 00:10:29,397
If you become president of Europe
in the middle of the biggest
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00:10:29,480 --> 00:10:31,994
financial crisis for 80 years...
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00:10:32,080 --> 00:10:35,516
Prime Minister, with respect, there is
no such title as President of Europe.
227
00:10:35,880 --> 00:10:38,520
Oh, you are so pedantic, Bernard!
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00:10:40,200 --> 00:10:42,714
All right, what is my
official title then?
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President of the European Council?
230
00:10:44,360 --> 00:10:47,193
Uh, no, Prime Minister, the presidency
of the European Council
231
00:10:47,280 --> 00:10:48,918
went to the Belgian Prime Minister.
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00:10:49,200 --> 00:10:51,032
Who is completely unknown.
233
00:10:51,280 --> 00:10:52,873
Well, obviously. He's Belgian.
234
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And not elected.
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Appointed in secret.
236
00:10:58,760 --> 00:11:01,115
Of course, you wouldn't have a problem
with that, would you, Humphrey?
237
00:11:01,200 --> 00:11:03,476
Oh, Prime Minister,
you do me an injustice.
238
00:11:03,760 --> 00:11:07,594
I'm all in favour of elections,
provided the right people do the voting.
239
00:11:08,760 --> 00:11:09,989
I don't understand this!
240
00:11:10,080 --> 00:11:12,196
I'm sure I'm President of the Council.
241
00:11:12,280 --> 00:11:14,157
I remember being in the chair.
242
00:11:14,480 --> 00:11:16,312
Well, it is a little confusing,
Prime Minister.
243
00:11:16,400 --> 00:11:18,437
You see, we, the British,
244
00:11:18,520 --> 00:11:21,478
have the presidency of the Council
of the European Union.
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00:11:21,560 --> 00:11:22,630
That's what I said!
246
00:11:22,720 --> 00:11:25,997
Uh, no. The European Council
and the Council of the European Union
247
00:11:26,080 --> 00:11:27,115
are not the same thing.
248
00:11:28,120 --> 00:11:31,272
The President of the European Council
is there for 30 months
249
00:11:31,400 --> 00:11:33,994
and is in charge of, well,
preparing the agenda
250
00:11:34,080 --> 00:11:36,469
and chairing the meetings
of the European Council.
251
00:11:36,800 --> 00:11:40,475
Whereas the presidency of the Council
of the European Union
252
00:11:40,640 --> 00:11:43,154
is held for six months each
by rotating states
253
00:11:43,240 --> 00:11:45,834
and not by individual leaders
and not by you.
254
00:11:48,720 --> 00:11:50,711
So which of them really runs Europe?
255
00:11:50,800 --> 00:11:51,870
Oh, I see!
256
00:11:51,960 --> 00:11:53,030
Neither.
257
00:11:54,160 --> 00:11:56,754
Uh, Prime Minister,
let me simplify it for you.
258
00:11:57,240 --> 00:12:01,154
The European Union is run on
an intricate and sophisticated system
259
00:12:01,320 --> 00:12:03,470
based on an hierarchical structure
260
00:12:03,680 --> 00:12:07,150
of interlocking
and overlapping jurisdictions
261
00:12:07,480 --> 00:12:11,314
designed to separate the powers
while reinforcing the authority
262
00:12:11,440 --> 00:12:13,590
of the departments,
institutions and agencies
263
00:12:13,680 --> 00:12:17,469
who collectively and separately
control and supervise
264
00:12:17,560 --> 00:12:21,030
the diverse activities of the union
and its associated organisations.
265
00:12:23,120 --> 00:12:27,398
So, Europe is actually
run by the president
266
00:12:27,600 --> 00:12:31,309
of the European Commission who is akin
to the Prime Minister of Europe
267
00:12:31,480 --> 00:12:34,996
because he is elected
and he heads a cabinet government.
268
00:12:35,680 --> 00:12:39,116
But the President of the Council,
269
00:12:39,200 --> 00:12:41,555
he is, in fact, appointed, not elected.
270
00:12:41,640 --> 00:12:44,109
And he presides over the meetings
of that council,
271
00:12:44,200 --> 00:12:45,474
which is not the cabinet.
272
00:12:47,040 --> 00:12:50,476
And then, Prime Minister, there is
the Council of the European Union.
273
00:12:53,040 --> 00:12:55,998
Now, Britain currently
has that presidency.
274
00:12:57,440 --> 00:13:00,432
And, while you are
the rotating president,
275
00:13:01,240 --> 00:13:03,390
the presidency itself
is not yours personally.
276
00:13:04,640 --> 00:13:05,960
That simplifies it?
277
00:13:06,920 --> 00:13:08,911
Prime Minister,
what it all boils down to,
278
00:13:09,000 --> 00:13:10,149
as far as you're concerned,
279
00:13:10,440 --> 00:13:13,956
is the difference between years
of being head of an empire
280
00:13:14,080 --> 00:13:16,435
of nearly 500 million people
281
00:13:16,640 --> 00:13:18,916
and chairing the Council of Ministers
for six months.
282
00:13:19,040 --> 00:13:21,429
The fact of the matter is,
I am the president,
283
00:13:21,520 --> 00:13:23,158
or I have the presidency.
284
00:13:23,240 --> 00:13:25,151
I don't give a hoot what we call it.
285
00:13:25,560 --> 00:13:29,190
And I convened the conference
on this dreadful recession
286
00:13:29,280 --> 00:13:31,749
and the resulting euro crisis.
287
00:13:31,960 --> 00:13:33,280
I had to do something.
288
00:13:33,400 --> 00:13:36,233
And the conference was something,
so you did it. Well done.
289
00:13:38,880 --> 00:13:43,670
But now it's falling apart,
which might just about finish me.
290
00:13:43,880 --> 00:13:46,793
Well, Prime Minister,
it might not be falling apart.
291
00:13:47,240 --> 00:13:50,437
Uh, did you see my interview on TV
this lunchtime?
292
00:13:50,560 --> 00:13:52,471
—Yes, Prime Minister.
—How was it?
293
00:13:55,360 --> 00:13:56,794
What was wrong with it?
294
00:13:56,920 --> 00:13:59,833
"Ours not to reason why,
ours but to do and die."
295
00:14:01,080 --> 00:14:03,435
You just said the conference
may not be falling apart.
296
00:14:03,520 --> 00:14:06,034
Don't you know what's going on?
Don't you keep up?
297
00:14:06,440 --> 00:14:08,636
Haven't you been reading
the conference reports?
298
00:14:08,960 --> 00:14:10,678
I have. Have you?
299
00:14:12,120 --> 00:14:13,235
Not my fault.
300
00:14:14,800 --> 00:14:16,473
The spadework wasn't done properly.
301
00:14:16,720 --> 00:14:19,917
The Foreign Office and the Treasury
let me down, badly.
302
00:14:20,240 --> 00:14:22,516
I think the Foreign Secretary
and the Chancellor
303
00:14:22,600 --> 00:14:24,238
are plotting to get rid of me already.
304
00:14:24,440 --> 00:14:26,795
That's why I suggested
not inviting them this weekend.
305
00:14:27,000 --> 00:14:31,073
But everyone knows you have
to agree the final bulletin
306
00:14:31,360 --> 00:14:33,795
before the conference begins.
307
00:14:34,280 --> 00:14:36,840
But instead of having
everything nailed down
308
00:14:36,920 --> 00:14:39,833
before they all convened,
they left it to chance.
309
00:14:39,920 --> 00:14:40,955
Useless!
310
00:14:41,200 --> 00:14:43,714
(SPEAKING LATIN)
311
00:14:44,040 --> 00:14:46,270
Oh, oh, yes, yes. Very good.
312
00:14:48,200 --> 00:14:49,235
What?
313
00:14:49,600 --> 00:14:52,558
"For those in misery,
perhaps better things will follow."
314
00:14:52,920 --> 00:14:54,433
Well said, Bernard.
315
00:14:55,560 --> 00:14:57,915
I didn't actually say that,
that was Virgil.
316
00:14:58,000 --> 00:14:59,115
Yes, I know that, Bernard.
317
00:14:59,840 --> 00:15:02,354
It was completely predictable.
318
00:15:02,880 --> 00:15:05,633
The Krauts don't want a stimulus plan.
319
00:15:06,160 --> 00:15:08,151
They're terrified of runaway inflation.
320
00:15:08,240 --> 00:15:10,072
That's what destroyed
the Weimar Republic
321
00:15:10,160 --> 00:15:11,275
and brought them Hitler.
322
00:15:12,000 --> 00:15:13,832
The Wops and the Dagos
323
00:15:14,560 --> 00:15:17,473
are up to their armpits in debt already.
324
00:15:17,800 --> 00:15:21,873
The Frogs only want it
if France gets all the benefits.
325
00:15:21,960 --> 00:15:24,156
Prime Minister, I really think
you should stop using
326
00:15:24,240 --> 00:15:27,153
these vintage pejorative epithets
to describe our allies.
327
00:15:28,760 --> 00:15:30,353
They might slip out in public sometime.
328
00:15:30,480 --> 00:15:32,118
Quite right, Bernard. Thank you.
329
00:15:32,720 --> 00:15:35,439
And the Micks and the Polacks
330
00:15:35,520 --> 00:15:37,989
aren't getting the subsidies
they were promised,
331
00:15:38,080 --> 00:15:40,071
which they regard as a betrayal.
332
00:15:40,760 --> 00:15:44,594
So it is time for me to get hands-on
and give some leadership.
333
00:15:44,840 --> 00:15:45,910
Oh, good.
334
00:15:46,000 --> 00:15:47,115
So,
335
00:15:47,480 --> 00:15:48,550
tell me what I should do.
336
00:15:48,680 --> 00:15:49,715
Ah!
337
00:15:50,840 --> 00:15:53,832
Now, that's just the kind
of leadership we need.
338
00:15:53,920 --> 00:15:56,230
Oh! Thank you, Humphrey.
339
00:15:56,560 --> 00:15:59,359
And, Prime Minister,
we have good news for you.
340
00:15:59,680 --> 00:16:02,399
Late last night, we had
a breakthrough at Lancaster House.
341
00:16:02,480 --> 00:16:04,232
A new player has appeared on the scene.
342
00:16:04,320 --> 00:16:06,197
The Americans?
Are they coming after all...
343
00:16:06,480 --> 00:16:09,677
Ah, no, Prime Minister,
their position is immutable.
344
00:16:09,760 --> 00:16:13,276
They will not come to this conference
because you won't let them chair it.
345
00:16:13,360 --> 00:16:17,035
I can't let them chair
a European conference, Humphrey.
346
00:16:17,480 --> 00:16:18,550
Look at the map!
347
00:16:22,080 --> 00:16:25,232
Well, it could become an international
conference, Prime Minister.
348
00:16:25,400 --> 00:16:28,597
That could save the whole
European financial system
349
00:16:28,680 --> 00:16:29,875
from melting down again.
350
00:16:29,960 --> 00:16:33,191
Oh, don't be silly, Humphrey.
I'd lose face.
351
00:16:33,720 --> 00:16:35,154
Oh, yes, of course. Silly me.
352
00:16:36,040 --> 00:16:38,634
Prime Minister,
the Kumranistanis have joined us.
353
00:16:39,040 --> 00:16:40,075
Good!
354
00:16:41,480 --> 00:16:42,515
Have I heard of them?
355
00:16:43,400 --> 00:16:45,596
Prime Minister, they have oil.
356
00:16:46,040 --> 00:16:50,910
Yes, massive new reserves of oil
have been found in Kumranistan.
357
00:16:51,000 --> 00:16:56,439
Now, they're offering a possible
$10 trillion loan to Europe
358
00:16:56,560 --> 00:16:58,153
secured against future purchases.
359
00:16:58,440 --> 00:17:00,078
-But that could solve everything.
—Yes.
360
00:17:00,280 --> 00:17:01,793
—Save the conference.
—Yes.
361
00:17:01,880 --> 00:17:03,837
—Save Europe, in fact.
—BOTH: Yes!
362
00:17:04,040 --> 00:17:06,634
"Triumph for the Prime Minister."
363
00:17:08,040 --> 00:17:10,793
"Victory for the President of Europe."
364
00:17:10,880 --> 00:17:11,915
Uh, Prime Minister, you are not...
365
00:17:12,000 --> 00:17:14,753
"Victory for the
President of Europe", Humphrey.
366
00:17:15,080 --> 00:17:16,479
Might even save your job.
367
00:17:16,600 --> 00:17:19,069
My job is perfectly safe.
368
00:17:19,200 --> 00:17:21,669
Other people have survived
with small majorities.
369
00:17:21,840 --> 00:17:25,470
Wilson had a majority of four in 1964
370
00:17:25,560 --> 00:17:27,233
and he lasted six years.
371
00:17:27,480 --> 00:17:29,471
But he did have to fight
a second election pretty soon
372
00:17:29,560 --> 00:17:30,914
to get a working majority.
373
00:17:31,040 --> 00:17:32,269
And Wilson had hair.
374
00:17:37,640 --> 00:17:39,199
What are you saying, Bernard?
375
00:17:39,520 --> 00:17:41,511
Well, it's just that no Prime Minister
376
00:17:41,600 --> 00:17:44,240
or US President has been elected
without a full head of hair
377
00:17:44,320 --> 00:17:46,755
since Eisenhower and Churchill
in the 19505.
378
00:17:51,280 --> 00:17:53,920
So I'm saying you did magnificently well
379
00:17:54,000 --> 00:17:56,196
to cobble together a majority of two.
380
00:17:57,040 --> 00:17:59,714
I had hair when I was first elected.
381
00:18:00,800 --> 00:18:04,156
I lost my hair in the service
of my country.
382
00:18:04,880 --> 00:18:07,110
Indeed you did, Prime Minister.
383
00:18:07,400 --> 00:18:08,435
Indeed.
384
00:18:08,520 --> 00:18:09,555
Uh, Prime Minister,
385
00:18:09,640 --> 00:18:13,429
this Kumranistan deal
could solve all your problems.
386
00:18:13,520 --> 00:18:14,590
Fine, where do I sign?
387
00:18:15,040 --> 00:18:16,633
(CHUCKLES) No.
We're not quite there yet.
388
00:18:16,720 --> 00:18:18,677
Uh, they do want something in exchange.
389
00:18:18,960 --> 00:18:20,837
—You know where Kumranistan is?
—Yes.
390
00:18:23,040 --> 00:18:24,519
Well, sort of.
391
00:18:25,120 --> 00:18:26,793
You know, it's over there.
392
00:18:28,160 --> 00:18:30,071
It lies in Turkistan,
393
00:18:30,440 --> 00:18:34,320
to the north of Uzbekistan,
Kazakhstan and Afghanistan.
394
00:18:34,600 --> 00:18:37,069
—Here, in fact.
—As I said, exactly.
395
00:18:37,680 --> 00:18:40,593
Now, they had been planning
to take their oil to Europe
396
00:18:40,680 --> 00:18:41,829
through the Soviet pipeline...
397
00:18:42,120 --> 00:18:45,590
They're not Soviets any more, Humphrey,
they're Russians.
398
00:18:45,680 --> 00:18:48,240
They haven't been Soviets
for over 20 years.
399
00:18:48,320 --> 00:18:50,789
They still are in spirit
and always will be.
400
00:18:51,440 --> 00:18:54,034
The, um, Russians want
a pretty huge payment.
401
00:18:54,120 --> 00:18:56,475
Which Kumranistan does not want to pay
402
00:18:56,560 --> 00:19:00,394
since the Soviets will have
their hands on the pipeline tap.
403
00:19:00,520 --> 00:19:04,479
So, with a little prompting from us,
the Kumranistanis came up with a plan B.
404
00:19:04,800 --> 00:19:07,474
A pipeline through Turkey,
Greece and Southern Europe,
405
00:19:07,800 --> 00:19:09,313
avoiding Russia altogether.
406
00:19:09,560 --> 00:19:11,949
What they need now
is European agreement.
407
00:19:12,240 --> 00:19:15,870
And that's what they're
prepared to lend us $10 trillion for.
408
00:19:16,040 --> 00:19:17,075
Why?
409
00:19:17,160 --> 00:19:21,199
They want the guarantee of future
oil purchases by everyone in the EU.
410
00:19:22,040 --> 00:19:23,235
No, I don't get it.
411
00:19:23,720 --> 00:19:25,711
It's awfully simple, Prime Minister.
412
00:19:26,480 --> 00:19:27,515
Um...
413
00:19:27,600 --> 00:19:31,833
Kumranistan will lend Europe the money
to buy Kumranistan's oil.
414
00:19:32,080 --> 00:19:35,038
And Europe borrows
another 10 trillion more debt?
415
00:19:35,320 --> 00:19:37,789
Oh, the debt is not a problem.
It doesn't have to be repaid for years.
416
00:19:38,240 --> 00:19:41,358
See, we get the money now,
interest-free,
417
00:19:41,560 --> 00:19:43,073
but we repay it in the future,
418
00:19:43,200 --> 00:19:45,589
when we buy the oil
that we will need anyway.
419
00:19:45,680 --> 00:19:47,000
So, how do they make their money?
420
00:19:47,200 --> 00:19:49,191
Ah, we will have to pay a premium...
421
00:19:49,320 --> 00:19:52,153
—Ah!
-But not for many years to come,
422
00:19:52,400 --> 00:19:54,676
when there will be
a different government.
423
00:19:58,200 --> 00:19:59,599
Oh, that's all right then.
424
00:20:01,600 --> 00:20:03,477
Are all the Europeans on board?
425
00:20:03,560 --> 00:20:05,039
They are, Prime Minister.
426
00:20:05,120 --> 00:20:07,634
And the problems
are what we've been negotiating
427
00:20:07,880 --> 00:20:10,190
as you will have seen in your red boxes?
428
00:20:10,280 --> 00:20:12,396
Yes. But remind me.
429
00:20:13,480 --> 00:20:17,030
Well, as you'll doubtless remember,
the Turks refused to cooperate
430
00:20:17,120 --> 00:20:19,509
unless they were admitted
to the European Union.
431
00:20:19,600 --> 00:20:20,999
Now, I see their point.
432
00:20:21,280 --> 00:20:23,715
I've always had a soft spot
for Johnny Turk.
433
00:20:23,800 --> 00:20:26,952
Johnny Turk!
You're on first name terms, then?
434
00:20:28,400 --> 00:20:30,755
Oh! (CHUCKLES SARCASTICALLY)
435
00:20:32,040 --> 00:20:33,872
Yes, that's very droll, Prime Minister.
436
00:20:34,840 --> 00:20:36,797
Turkey is an important ally.
437
00:20:36,880 --> 00:20:40,396
They are the only Muslim country with
a secular democracy, Prime Minister.
438
00:20:40,480 --> 00:20:42,232
—We do need...
—Johnny Turk!
439
00:20:42,320 --> 00:20:43,549
Yes.
440
00:20:43,920 --> 00:20:45,479
Anyway, everything is agreed.
441
00:20:46,800 --> 00:20:49,394
Everyone gets a share
in the construction.
442
00:20:50,320 --> 00:20:51,355
—(SCREEN BEEPING)
—Ah!
443
00:20:51,440 --> 00:20:52,555
BERNARD: Here's the route.
444
00:20:53,120 --> 00:20:55,555
(POPPING SOUNDS)
445
00:21:02,280 --> 00:21:04,078
Well, that looks pretty straightforward.
446
00:21:06,560 --> 00:21:07,834
-We're saved!
—Yes.
447
00:21:08,600 --> 00:21:10,591
But why didn't I know about all this?
448
00:21:10,840 --> 00:21:13,036
—It's top secret.
-Oh, good God, Humphrey.
449
00:21:13,120 --> 00:21:14,155
I'm the Prime Minister.
450
00:21:14,240 --> 00:21:15,639
(PATRONISING) Yes, I know.
451
00:21:17,240 --> 00:21:19,629
And what an excellent Prime Minister
you are.
452
00:21:19,720 --> 00:21:21,279
But this had to be kept under wraps.
453
00:21:21,360 --> 00:21:22,714
If this had leaked,
454
00:21:22,800 --> 00:21:24,996
this week the money markets
would have gone mad.
455
00:21:25,080 --> 00:21:26,115
I see.
456
00:21:26,560 --> 00:21:28,756
Well, is that everything I need to know?
457
00:21:28,840 --> 00:21:30,433
—Yes.
—Well, there is one more thing.
458
00:21:30,520 --> 00:21:31,635
Bernard?
459
00:21:32,760 --> 00:21:36,116
A power group in Kumranistan
still want the Russian route.
460
00:21:36,360 --> 00:21:38,715
Oh, Bernard is absolutely right,
Prime Minister.
461
00:21:38,800 --> 00:21:40,473
They didn't want to upset the Soviets.
462
00:21:40,720 --> 00:21:43,599
Well, it is understandable.
They do share a border.
463
00:21:44,000 --> 00:21:46,435
But the Kumranistan Foreign Secretary,
464
00:21:46,720 --> 00:21:50,634
he has come over here to offer us
the deal, if we want it.
465
00:21:50,880 --> 00:21:52,029
Invite him to dinner!
466
00:21:52,240 --> 00:21:53,913
-Tonight!
—I did, Prime Minister.
467
00:21:54,280 --> 00:21:56,237
That's why we're here.
468
00:21:57,880 --> 00:21:59,553
And he can do the deal, now?
469
00:21:59,640 --> 00:22:01,472
Yes, he has the authority,
Prime Minister,
470
00:22:01,560 --> 00:22:03,790
but he needs careful handling.
471
00:22:04,200 --> 00:22:06,635
They are very sensitive about respect.
472
00:22:07,040 --> 00:22:10,431
You get an awful lot of respect
for $10 trillion.
473
00:22:10,880 --> 00:22:12,632
He can have all mine for a start.
474
00:22:12,720 --> 00:22:15,360
Oh, excellent, Prime Minister.
475
00:22:17,840 --> 00:22:18,955
Bernard!
476
00:22:19,200 --> 00:22:20,235
Yes, Prime Minister?
477
00:22:20,320 --> 00:22:22,630
There's something you're not
happy about, what is it?
478
00:22:22,840 --> 00:22:26,231
—Well, I'm not really sure I...
-Oh, spit it out, Bernard.
479
00:22:26,440 --> 00:22:27,510
Well, I...
480
00:22:27,960 --> 00:22:29,030
Ah.
481
00:22:29,240 --> 00:22:31,675
(SPEAKING LATIN)
482
00:22:31,880 --> 00:22:32,995
What?
483
00:22:33,600 --> 00:22:35,318
"I fear the Greeks,
484
00:22:35,560 --> 00:22:37,915
"especially when they bring gifts."
485
00:22:42,680 --> 00:22:45,069
Remember the Trojan Horse,
Prime Minister.
486
00:22:51,440 --> 00:22:53,397
The Greeks can't afford gifts!
487
00:23:01,480 --> 00:23:02,629
Ah, Claire,
488
00:23:02,880 --> 00:23:04,678
could you come to my study, please?
489
00:23:05,840 --> 00:23:06,989
Now.
490
00:23:17,240 --> 00:23:18,275
(KNOCKING ON DOOR)
491
00:23:18,360 --> 00:23:19,395
Yes, come in.
492
00:23:20,000 --> 00:23:21,513
Ah, Claire.
493
00:23:21,760 --> 00:23:24,718
There's something I don't know
about this pipeline plan.
494
00:23:24,800 --> 00:23:26,313
Yes, I've just been finding out
about it.
495
00:23:26,600 --> 00:23:28,113
What is it Humphrey
hasn't been telling me?
496
00:23:28,280 --> 00:23:29,350
Well, how about the truth?
497
00:23:29,560 --> 00:23:31,710
—What have you found out?
—I'll tell you when I'm sure.
498
00:23:31,800 --> 00:23:33,950
(SIGHS) Maybe there's something in here.
499
00:23:35,120 --> 00:23:37,111
—Was that the bottom box?
—Of course.
500
00:23:37,480 --> 00:23:39,630
—Yeah, try the bottom file.
-Oh, yes!
501
00:23:42,800 --> 00:23:45,952
"Vehicle Licensing Centre, Swansea."
502
00:23:47,000 --> 00:23:48,035
Yes!
503
00:23:50,400 --> 00:23:53,836
"Proposal for Kumranistan Oil Pipeline."
504
00:23:54,480 --> 00:23:56,312
I think it could be
about the pipeline mechanics.
505
00:23:56,400 --> 00:23:59,950
Oh, I don't care about the mechanics.
I'm not an engineer.
506
00:24:00,160 --> 00:24:03,039
No, fiscal mechanics, Jim,
financial engineering.
507
00:24:03,120 --> 00:24:05,509
Perhaps, Humphrey has arranged
for the proposed loan
508
00:24:05,600 --> 00:24:07,273
to go through the European Central Bank
509
00:24:07,360 --> 00:24:08,430
and isn't mentioning it.
510
00:24:08,520 --> 00:24:09,590
Is that important?
511
00:24:14,960 --> 00:24:15,995
Yes.
512
00:24:16,600 --> 00:24:19,194
Yes, if so, if we want any of the loan,
513
00:24:19,480 --> 00:24:20,834
we'll have to join the euro.
514
00:24:21,040 --> 00:24:24,556
We can't join the euro,
it would be a catastrophe!
515
00:24:25,080 --> 00:24:26,593
Look what's happened to Greece,
516
00:24:26,880 --> 00:24:29,394
Spain, Italy, Ireland, Portugal!
517
00:24:29,920 --> 00:24:32,480
Hand over control of interest rates,
518
00:24:32,640 --> 00:24:34,438
control of exchange rates,
519
00:24:34,640 --> 00:24:36,358
control of the money supply?
520
00:24:36,680 --> 00:24:39,638
What if I need to inflate
to get re-elected?
521
00:24:42,120 --> 00:24:45,715
If the Germans are worried
about rising prices,
522
00:24:45,880 --> 00:24:49,077
the ECB could deflate
and I could get kicked out.
523
00:24:49,160 --> 00:24:51,515
Well, candidly, I not sure
that that would bother Sir Humphrey.
524
00:24:51,680 --> 00:24:53,239
Well, let's find out.
525
00:24:56,080 --> 00:24:58,879
Yes, Bernard, tell Humphrey
I want to see him, please.
526
00:24:59,000 --> 00:25:00,832
—(MOBILE RINGING)
—No, no,
527
00:25:00,920 --> 00:25:04,117
anytime within the next
10 seconds will do.
528
00:25:05,680 --> 00:25:06,750
Yes?
529
00:25:07,160 --> 00:25:08,195
It's come through.
530
00:25:08,760 --> 00:25:10,239
From the Controller General?
531
00:25:11,080 --> 00:25:14,710
Great. Could you print it all out
and I'll come and get it right away.
532
00:25:14,960 --> 00:25:16,030
(KNOCKING ON DOOR)
533
00:25:17,520 --> 00:25:18,555
Oh.
534
00:25:18,920 --> 00:25:20,194
Ah, Humphrey.
535
00:25:26,640 --> 00:25:28,039
Prime Minister?
536
00:25:28,280 --> 00:25:29,475
Do sit down!
537
00:25:31,400 --> 00:25:32,595
Tell me,
538
00:25:33,120 --> 00:25:36,556
what would a cabinet secretary do
539
00:25:36,640 --> 00:25:39,200
if he thought that a prime minister
was set on a course
540
00:25:39,280 --> 00:25:41,840
that was seriously damaging to Britain?
541
00:25:42,000 --> 00:25:43,354
Do you have a particular
cabinet secretary
542
00:25:43,440 --> 00:25:44,475
or prime minister in mind?
543
00:25:44,640 --> 00:25:45,675
No.
544
00:25:45,760 --> 00:25:47,512
No, purely hypothetical.
545
00:25:47,800 --> 00:25:50,679
Well, the cabinet secretary
would have to argue very strongly.
546
00:25:50,760 --> 00:25:53,593
But if he failed to persuade
the Prime Minister...
547
00:25:53,680 --> 00:25:54,750
No, I mean, he'd have to.
548
00:25:55,040 --> 00:25:59,716
Ah! So what you're saying is,
he'd have to go along with it or resign.
549
00:26:00,440 --> 00:26:01,475
Uh...
550
00:26:03,400 --> 00:26:04,629
Yes, I suppose I am.
551
00:26:04,840 --> 00:26:05,875
Right.
552
00:26:08,080 --> 00:26:12,233
This Kumranistan loan
is all good news, isn't it?
553
00:26:12,520 --> 00:26:13,999
Oh, tremendous news!
554
00:26:14,720 --> 00:26:19,556
There are no hidden snags, you know,
terms and conditions, penalty clauses,
555
00:26:20,000 --> 00:26:22,355
-tough guarantee...
-Oh, no, nothing like that.
556
00:26:22,440 --> 00:26:24,033
—Standard agreement.
—Great!
557
00:26:24,440 --> 00:26:27,353
Just an ordinary Treasury loan,
as far as we're concerned.
558
00:26:27,680 --> 00:26:29,353
—In a sense, yes.
—In a sense?
559
00:26:29,760 --> 00:26:31,751
Well, in due course,
following agreed procedures,
560
00:26:31,840 --> 00:26:33,399
after certain formalities.
561
00:26:33,680 --> 00:26:35,956
But the money
goes straight to the Treasury.
562
00:26:36,160 --> 00:26:38,470
(CHUCKLING NERVOUSLY) Oh, it goes
to the Treasury, of course. Yes.
563
00:26:38,560 --> 00:26:39,595
Straight
564
00:26:40,720 --> 00:26:41,790
to the Treasury?
565
00:26:41,920 --> 00:26:43,479
Well, broadly speaking,
yes, more or less.
566
00:26:43,560 --> 00:26:44,595
Broadly speaking?
567
00:26:44,680 --> 00:26:47,399
How would you describe it
if you were narrowly speaking?
568
00:26:49,720 --> 00:26:52,712
Does it have to go through
the European Central Bank?
569
00:26:52,880 --> 00:26:55,759
Prime Minister, we get the money,
that is what matters.
570
00:26:55,840 --> 00:26:57,433
Let me put this in another way.
571
00:26:57,520 --> 00:26:59,636
Will this loan be in euros?
572
00:26:59,720 --> 00:27:02,360
Prime Minister, I do urge you
not to clutter your mind
573
00:27:02,440 --> 00:27:05,558
with procedural detail
and monetary trivia.
574
00:27:05,840 --> 00:27:07,956
Humphrey, in words of one syllable,
575
00:27:08,200 --> 00:27:11,716
is this plan dependant
on our abandoning sterling
576
00:27:11,840 --> 00:27:12,910
and joining the euro?
577
00:27:13,000 --> 00:27:14,593
Well, dependant has three syllables.
578
00:27:14,840 --> 00:27:17,070
And abandoning has four.
579
00:27:17,160 --> 00:27:18,753
(CHUCKLES SARCASTICALLY)
580
00:27:19,880 --> 00:27:20,950
Right, oh, good heavens.
581
00:27:21,240 --> 00:27:22,913
Oh, look at the time, Prime Minister.
582
00:27:23,080 --> 00:27:26,391
It's almost time for your dinner
with the Kumranistan Foreign Minister.
583
00:27:26,480 --> 00:27:28,630
—Now, you really must not be late.
—Humphrey!
584
00:27:30,440 --> 00:27:31,839
Answer my question!
585
00:27:32,040 --> 00:27:33,394
All right, Prime Minister.
586
00:27:33,480 --> 00:27:36,757
You have asked a straight question
and I'll give you a straight answer,
587
00:27:38,120 --> 00:27:40,475
which, however,
clearly depends on its context.
588
00:27:41,200 --> 00:27:43,794
In the course
of all financial negotiations,
589
00:27:43,880 --> 00:27:46,872
certain provisos have to be
pre-cogitated
590
00:27:46,960 --> 00:27:48,075
and pre-conditioned.
591
00:27:48,320 --> 00:27:52,109
Various caveats have to be postulated,
designated, investigated,
592
00:27:52,200 --> 00:27:55,397
and specified,
and a number of considerations
593
00:27:55,480 --> 00:27:57,153
have to be unequivocally determined,
594
00:27:57,240 --> 00:27:59,277
acknowledged and indeed
sometimes even conceded
595
00:27:59,640 --> 00:28:03,634
so that we can facilitate
the finalisation of preliminary plans
596
00:28:03,720 --> 00:28:05,950
to create an epistemological basis
597
00:28:06,240 --> 00:28:09,437
for all parties to proceed towards
598
00:28:09,520 --> 00:28:13,559
a mutually beneficial consummation
which will acknowledge and safeguard
599
00:28:13,640 --> 00:28:15,916
the vital interests
of all the participants
600
00:28:16,000 --> 00:28:18,230
without jeopardising in any material way
601
00:28:18,320 --> 00:28:22,234
the underlying collective benefits
ultimately accruing to the signatories
602
00:28:22,320 --> 00:28:25,153
or leaving unresolved
any anomalies or irregularities
603
00:28:25,240 --> 00:28:28,631
which could precipitate
operational uncertainty down the line,
604
00:28:28,720 --> 00:28:30,393
so that there will be a presumed modicum
605
00:28:30,480 --> 00:28:33,438
of iron-clad reciprocity,
which in the great scheme of things
606
00:28:33,520 --> 00:28:35,352
will be to everybody's advantage.
607
00:28:42,160 --> 00:28:43,753
Did that mean yes or no?
608
00:28:45,160 --> 00:28:46,309
Don't you think that yes and no
609
00:28:46,400 --> 00:28:48,755
are rather broad and unspecific
in their application?
610
00:28:49,040 --> 00:28:50,075
No!
611
00:28:51,240 --> 00:28:53,993
I want a clear, unambiguous answer.
612
00:28:54,200 --> 00:28:56,237
Certainly. What was the question again?
613
00:28:57,360 --> 00:29:00,671
Is joining the euro a condition
of getting the loan?
614
00:29:01,000 --> 00:29:03,389
Well, in the sense that
if agreement of the...
615
00:29:03,480 --> 00:29:08,236
Humphrey, I repeat, is joining the euro
a condition of getting the loan?
616
00:29:09,320 --> 00:29:10,754
Yes, Prime Minister.
45592
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