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Summit to Save the Euro; China Breaks Up Two Child Trafficking Rings; New Surveillance Video in Strauss-Kahn Case; Two Killed in New Virginia Tech Shooting; Putin Blames US for Opposition Protests; Syrian Pipeline Blown Up; Former Penn State Coach Jerry Sandusky Released on Bail

Aired December 8, 2011 - 16:00   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


(BEGIN VIDEO CLIP)

NICOLAS SARKOZY, PRESIDENT OF FRANCE (through translator): If we don't find an agreement by tomorrow, there will be no second chance.

(END VIDEO CLIP)

BECKY ANDERSON, HOST: As leaders kick off a crisis summit in Brussels, the French president makes a last-minute appeal to pull together for the good of Europe and the entire world.

Live from London this Thursday evening, I'm Becky Anderson. Also tonight, left behind. As US troops pull out, some Iraqis face the consequences of helping those troops during the long war.

And new images from the day Dominique Strauss-Kahn was accused of sexual assault. Why lawyers on both sides are claiming these pictures help their case.

First this evening, the danger to Europe has never been greater. That warning from French president Nicolas Sarkozy as leaders begin a crucial 24 hours to save the euro.

Meeting in Brussels, the summit is seen as make or break for the single currency, with France and Germany pushing proposals to bring the euro zone's finances closer together and punish countries who fail to bring their deficits under control.

But while the threat posed by the region's debt crisis is clear, the ability of all 27 members of the European Union to reach an agreement is not. And without it, the 17 countries who use the euro could be forced to go it alone and adopt their own treaty.

Well, let's be clear. Failure would be felt not just in Europe, but in economies across the globe. Markets want results, they want credibility in the euro restored, but success will require the region's politicians to put their posturing to one side.

Well, Richard Quest is in Brussels for us this evening. Richard, what is happening right now?

RICHARD QUEST, CNN INTERNATIONAL BUSINESS CORRESPONDENT: Right at this very moment, Becky, they are at the informal dinner. All the leaders are here. When they arrived, some said that it would be a very, very tough meeting. That was the Finnish prime minister.

Angela Merkel said that the credibility of the euro had been ruined and they had to restore it. David Cameron, the UK prime minister, said that he would be protecting the UK's interests.

And they really have two very distinct jobs to do. The first is to solve the crisis and to create more firepower for the stability fund, the so-called big bazooka. There's no particular agreement on the way forward for that. The IMF will be involved.

The second and more contentious and controversial way is building the fiscal compact. And there you get right into the nitty-gritty, the down and dirty of whether it should be by treaty change or by protocol, who's in, who's out, full European Union 27 or euro zone 17.

So, Becky, these -- this balancing act that they've got to do, and overarching, they know, get it wrong and, as Angela Merkel said the other day, the markets will be merciless.

ANDERSON: Oh, to be at the table for what is being slugged a -- an informal supper tonight. I know some out there, and you included, are calling it the Last Supper potentially tonight.

Richard, stay with me for a moment, because this isn't, of course, the first summit to fix the euro zone. But what sets this one apart is the sense of urgency and, indeed, the feel of -- the fear of failure. And as CNN's Fred Pleitgen now reports, leaders were in no doubt about the task ahead when they met in the French city of Marseilles earlier today.

(BEGIN VIDEOTAPE)

FREDERIK PLEITGEN, CNN INTERNATIONAL CORRESPONDENT: Before the EU summit in Brussels, the meeting of the European conservatives was the top of the agenda on the continent.

Both Germany's Angela Merkel as well as Nicolas Sarkozy spoke at this summit, Nicolas Sarkozy going out of his way to say that both Germany and France are trying to lead in the current eurozone crisis and not bully some of the smaller eurozone members.

SARKOZY (through translator): For France and Germany, the aim is not to ask for more rights than other EU countries, but we have more duties than other countries.

And if we were to come to such an important summit as one that is going to take place tomorrow in Brussels without an agreement between France and Germany, there couldn't be an agreement across the whole of Europe. This is the kind of luxury that we cannot afford.

PLEITGEN: In a common statement, both Nicolas Sarkozy and Angela Merkel say that both Germany and France are calling for comprehensive treaty change to be implemented in the EU or at least in the eurozone. And they say that is something that must be implemented at this next EU summit.

What needs to be done, they say, is for the EU to crackdown on countries that consistently bust their budget. One of the things they've been talking about is automatic penalties for countries that consistently borrow more than they actually take in.

Now, Angela Merkel said at this point in time, financial markets no longer believe the talk of European countries. She says in the past, the eurozone countries have talked a lot but acted too little. Now she says it's time for decisive action.

ANGELA MERKEL, CHANCELLOR OF GERMANY (through translator): And overcoming of today's crisis requires that we would look at the reasons or the causes. First reason, the big indebtedness of some member states. The second reason, the various competitiveness -- degrees of competitiveness.

And the third is sometimes we need too much time. We decide too slowly and we don't coordinate sufficiently enough, and that's why we'll find ways from this crisis, we'll find good solutions.

PLEITGEN: In the past few days, the German side has shown itself to be irritated, especially at moves by other eurozone countries, suggesting that there might be a quicker way to European reform that could solve the crisis without fundamental changes.

However, the German side is very clear on this issue. They say that European countries that have trouble with debt need to implement fundamental reforms to get their finances back on track. Anything short of that would be seen as a failure and could derail the entire eurozone.

Fred Pleitgen, CNN, Berlin.

(END VIDEOTAPE)

ANDERSON: Well, while France and Germany's proposals, or the "Merkozy" proposals, as they are being called, are the hot topics for conversation in Brussels, there are fears that some European countries could be left feeling alienated.

Let's head back to Richard Quest in the Belgian capital. And lest we forget, there are leaders tonight meeting of 10 EU, European Union countries, Richard, who don't use the euro as a currency. How do they feel about these potential treaty changes?

QUEST: It depends on whether they aspire to use the euro or whether they have made a conscious decision not to.

If you take the UK, for example, and its prime minister, David Cameron, has been quite blunt about it. He says he is here to protect the UK's interest, notably, of course, against the financial tax, the Tobin tax, that Sarkozy and Merkel will be prepared to put in as part of their plan.

Then you have those countries, like Poland, perhaps, and the other countries, the newer countries of the Union, that would like to use the euro at some point in the future. But they are well aware that they need to -- what they sign up to in the future could be very different to the situation at the moment.

So, nobody comes to this table without an agenda, their own agenda, and the real fundamental problem is you have 27 sovereign governments all battling their own self-interest, and at the same time, no one really wanting to deal with the fundamental question: are they going to move to a United States of Europe?

ANDERSON: Yes, so the question here is, can national egos and interests be put aside at this point? I know you spoke to the Swedish prime minister earlier on --

(CROSSTALK)

QUEST: No. No, no. I'm going to --

ANDERSON: What did he say?

QUEST: I -- I'm going to answer that first one, no. National interest and -- are never put aside at euro summits. If you take the Swedish prime minister, he says -- he's quite clear on this question. Fredrik Reinfeldt is quite clear on the question of treaty change. Should it be by treaty change or by protocol? He says he doesn't have a mandate to come here for treaty change.

(BEGIN VIDEO CLIP)

FREDRIK REINFELDT, PRIME MINISTER OF SWEDEN: I have, as of now, no support from my parliament. I have a parliamentary committee that I can talk to tomorrow.

I want to be clear on that. Treaty change means different things, because it could be a smaller, more technical one. We did one in -- starting up one of these crisis mechanisms inside the eurozone, or it could be a bigger one.

Then, of course, I ask myself, if it's a bigger one, then it could be followed by referendums, then it could take a long time. How could that be the short-term solution to the economic problems we are having?

(END VIDEO CLIP)

QUEST: Right. And then you have the Danish, who say yes, they are in favor of treaty change, and even though the Swedes are not in favor of it, Angela Merkel wants that to go forward.

Now, you put all that into the mix, I promise you this, Becky. It is quarter past ten at night in Brussels on Thursday night. We have got a long way to go tonight, tomorrow, and some are suggesting this is going to go into Saturday.

ANDERSON: Yes.

QUEST: That's before they start sweeping up the mess.

ANDERSON: I feel a tectonic shift in the plates of the -- the rules and regulations of Europe as a space in and of itself, not just of the eurozone taking place as we move through the next hours. Richard's there for you viewers of CNN International. Richard, thank you very much, indeed.

Well, amid the doom and gloom, there was some good news today, at least for the struggling eurozone countries. The European Central Bank did cut its interest rates to one percent by 24 basis points or a quarter of one percent and announced new measures to support the region's banks.

But those expecting financial help for the most indebted countries were left sorely disappointed. Instead, the ECB president, Mario Draghi, ruled out stepping up its buying of government bonds and denied rumors that the ECB was preparing to funnel aid money through the International Monetary Fund. This is what he said.

(BEGIN VIDEO CLIP)

MARIO DRAGHI, PRESIDENT, EUROPEAN CENTRAL BANK: We have a treaty which says no monetary financing to governments. So the issue in whether one could use the IMF as a channel is legally very complex, but the point of fact is that there should be this respect of the spirit of the treaty always present in our minds.

(END VIDEO CLIP)

ANDERSON: Well, those comments, well, they sent stocks lower today, with France and Italy taking the brunt of the selling, as you can see there. The DAX off two percent, Paris off more than two and a half, the FTSE down one, and the Dow Jones Industrials, which have only just closed, down about two percent, taking a lead from these European markets.

And that market reaction really indicative of the importance that leaders draw a line under this current crisis. My next guest believes that even with an agreement, things could be tough for many years to come.

Kirsty Hughes is a senior associate fellow at the University of Oxford's Centre for International Studies and joins me tonight from Brussels. As things stand this hour, Kirsty, how confident are you of a solution at the end of this summit?

KIRSTY HUGHES, CENTRE FOR INTERNATIONAL STUDIES, UNIVERSITY OF OXFORD: Well, I think there will be a deal, but I'm not sure that will count as a solution. I think they will come to something they will call a fiscal compact, but it's going to be a very difficult compromise to get to.

And if it's too weak a compromise, then everybody will be looking again both to the bailout fund, to the IMF, to the ECB to rescue things.

ANDERSON: All right. What's your best bet on the shape of that financial compact as we might call it?

HUGHES: Well, I think it's going to be a relatively minimal one. It's going to be one that is going to be intrusive in terms of control of national budgets.

But we heard in the last couple of days, Angela Merkel and Nicolas Sarkozy talk about broader ambitions to harmonize corporate taxation, the financial transactions tax, labor law. I don't think you can do that at this moment in time.

So, it's going to come back to a narrower fiscal compact, and it may only be done as a protocol rather than as the treaty change that Angela Merkel has said is absolutely fundamental. So, if she doesn't get her way when she said it's fundamental, it's going to look rather weak.

ANDERSON: Yes, if we are looking at new treaties, and you're suggesting that we may not be at this point, but if we were looking at new treaties, can -- and I just put this to Richard, and he said there's no way that national interests or egos be put aside, but there's going to have to be some negotiation here.

So, can governments get together, or are we looking at a two-tier Europe going forward? Ten countries who don't use the euro, and 17 who do?

HUGHES: I think it's going to be really important that they somehow pull this together at 27. If it was a treaty among the 17, some are saying that's even legally impossible, but if it were, that would be a dramatic political moment for the European Union.

But 27, although countries don't give up their national interests, they do compromise. If it's a hard compromise, it's often at 4:00 in the morning, and that will be 4:00 in the morning on Saturday morning, not this coming morning.

But I -- I think it's happened before we've got to tough compromises, but it may also be weak in terms of the content.

ANDERSON: Kirsty, what sort of damage has been done to the politics, to democracy, and to the economic standing of Europe?

HUGHES: I think huge -- huge damage to each of those three. The economic is clear, but I think the political dynamics are very problematic. People have talked a lot about the 17 and the 10 euro out.

But actually, with the dominance of France and Germany, there are 15 other euro member states who are feeling pretty sore and bruised.

And as for the wider public, they seem to have been actually totally ignored. I don't think there's even been a serious attempt to communicate with them from the politicians about what's going on.

ANDERSON: Fascinating. Kirsty, we thank you for your time. We look forward to what happens in the hours ahead. Your expert on the subject, tonight.

Our top story. The French president has warned there will be no second chance if EU leaders fail to agree a plan to save the euro. Right now, a crucial summit in Brussels is underway, and we'll head back there later this hour to see if any progress has been made for you.

You're watching CONNECT THE WORLD here live from London. It's 16 minutes past 9:00. Coming up, new hotel surveillance video just released from the day Dominique Strauss-Kahn was accused of sexual assault. Why both sides are claiming it helped their case.

(COMMERCIAL BREAK)

ANDERSON: You're watching CNN, the world's news leader. This is CONNECT THE WORLD, I'm Becky Anderson, welcome back.

Well, Chinese authorities say they have broken up two large child trafficking rings. After a six-month nationwide investigation, 178 young kids have been rescued and hundreds of suspects arrested.

Now, Stan Grant has some of the background for you now from Beijing.

(BEGIN VIDEO CLIP)

STAN GRANT, CNN SENIOR INTERNATIONAL CORRESPONDENT: This is all part of a coordinated attempt to try to smash what is a lucrative trade. Since 2009, when special police unites were set up, authorities here say that thousands of trafficking rings have been busted, and tens of thousands of women and children rescued.

(DOOR KICKED IN)

(END VIDEO CLIP)

ANDERSON: Extra on CONNECT THE WORLD, we'll bring you the dramatic police footage of the bust as Stan explains just how it all unfolded. That coming up. A look now, though, at some of the other stories that are connecting our world this hour.

A never before seen video is bringing new attention to the Dominique Strauss-Kahn case. You'll recall that New York prosecutors dropped the sexual assault case against the former IMF chief when they determined his accuser wasn't a credible witness.

Well, Jim Bittermann now reports both sides claim the new images support their version of events.

(BEGIN VIDEOTAPE)

JIM BITTERMANN, CNN SENIOR INTERNATIONAL CORRESPONDENT: The security camera video from the Sofitel Hotel was obtained by French broadcaster BFM television and has not been seen in public before.

It appears to show the rather casual departure of Dominique Strauss- Kahn from the hotel about 20 minutes after he is alleged to have sexually assaulted a room maid, Nafissatou Diallo, in contrast to the description used by authorities at the time that the former director of the International Monetary Fund fled the scene.

BFM will not say where it obtained the footage, but the alleged victim, Diallo, is seen in several sequences very clearly. In one, before the police arrive, she is rather passively sitting in a hotel corridor with two men described by BFM as their boss and a hotel security officer.

In another almost an hour after the alleged assault, she is more animated. Her lawyers say she is describing what happened.

Thereafter, the two men are seen in another room doing a 12-second hand-slapping routine, although without audio, it's impossible to say what they're celebrating. Finally, the police arrived to take charge of the affair.

As you can imagine, there have been a number of reactions to the release of the videos, with lawyers for Diallo claiming it supports their case, while Strauss-Kahn's attorneys have already said that the so-called celebration dance raises serious questions about what was going on at the hotel.

The Accor Group, the owners of the Sofitel, says that the release of the video extracts, as it calls them, unnecessarily exposes employees to media curiosity and that any idea that the hotel was involved in a plot is nonsense.

Jim Bittermann, CNN, Paris.

(END VIDEOTAPE)

ANDERSON: At least two people have been shot and killed on the Virginia Tech University campus in the United States, the same campus where a gunman went on a rampage and killed 33 people in 2007.

Now, one of the victims, a policeman, was shot during a routine traffic stop. A second body was found later in a parking lot. Federal agents have been called to the scene to help with the response to the shootings. The campus is on lockdown while police search for the shooter.

Russian prime minister Vladimir Putin is blaming the United States for opposition protests that have roiled his country since weekend elections. Today, he lashed out at US Secretary of State Hillary Clinton because of her calls for an investigation into voting irregularities. Mr. Putin said today that Russia should defend itself from that kind of foreign interference.

(BEGIN VIDEO CLIP)

VLADIMIR PUTIN, PRIME MINISTER OF RUSSIA (through translator): The first thing that the US Secretary of State said about the Russian elections was that they were neither fair nor free even before receiving reports from international observers.

By saying that, she set the tone for some public figures in our country, gave them the signal. They heard that signal and, with the support of the US State Department, started their active work.

(END VIDEO CLIP)

ANDERSON: A key oil pipeline that serves the city of Homs in Syria has been blown up. Video posted online shows dense, black smoke above the flames. State media blames opposition members, and they in turn blame security forces. Now, in recent months, Homs has been a flashpoint for anti-government protests in the country.

Former Penn State assistant football coach Jerry Sandusky has left jail after paying a $250,000 bail. He was arrested on Wednesday on -- on new child sex charges involving two alleged victims, new victims, that is. That brings the total number of alleged victims to ten. Court officials say he'll be placed under house arrest and will have to wear a monitoring device.

Well, plenty more still to come here on CONNECT THE WORLD on CNN. It's 24 minutes past 9:00 as we speak, including Chinese authorities sweep in on an enormous child trafficking ring. While the black industry is stealing children is big business there.

And shock in UEFA. Champions League's surprising results make for an unlikely outcome. Stay with us.

(COMMERCIAL BREAK)

ANDERSON: You're watching CONNECT THE WORLD live from London, I'm Becky Anderson, welcome back.

Now, Wednesday was full of surprises in the European Champions League, and not just because England's two big Manchester clubs were sent packing. Eyebrows were raised as French side Lyon managed to leapfrog Ajax Amsterdam to finish second in Group D and qualify for the round of 16.

Now, the French club overturned a 6 goal deficit with a 7-1 thrashing of Dinamo Zagreb of Croatia whilst Ajax had two goals controversially ruled out in their 3-nil loss to Real Madrid.

Joining me for more on this is "World Sport's" Patrick Snell. I can't remember a night as exciting as this. Patrick, what's been UEFA's response to allegations of foul play in Champions League?

PATRICK SNELL, CNN SPORTS CORRESPONDENT: Yes, it was an incredible Wednesday all around, as you mentioned Becky, not just the two big Manchester clubs going out against many expectations.

But yes, that freak match, if you like, the Croatian capital, an extraordinary score line, and how Ajax Amsterdam's fans must be feeling in the wake of that. They must have thought throughout their game with Real Madrid that they'd done enough to go through, but it wasn't to be.

But to answer your question, UEFA have nipped this one in the bud pretty quickly indeed, saying that, look, the system they use, the betting fraud detection systems, has basically found no betting -- irregular betting patterns at all. No irregular betting patterns at all.

So, as far as UEFA are concerned, there is no foul play at work, and a lot of people involved in that game are taking offense.

Let's bring you a statement from FC Dinamo Zagreb, who've come out and said very promptly indeed that "It is scandalous and malicious to proclaim the Champions League match between Dinamo and Lyon as suspicious. Dinamo strongly objects to all domestic and foreign media speculation about any dishonorable actions regarding the game result because it is humiliating for the reputation of our club, football, and sport in general to do so."

So, a firm a stance taken there by Dinamo Zagreb, Becky.

ANDERSON: All right. Well, let's move on to Europa League, then, because it's becoming a more exciting competition. Some big names, of course, now in that competition, having been chucked out of the Champions League.

How much will Man United, Man City, Valencia, and Porto raise the profile of what has always been seen as the second tier competition, hasn't it?

SNELL: Yes, this is the old UEFA Cup getting a big and unexpected boost. You've got some top tier clubs in that one.

And these are clubs that would have expected to be competing in the Champions League right through the latter stages, but not to be. They've paid the price, they've gone out, and United's head coach, Alex Ferguson, for one, not too happy.

Now, he's been getting a bit of criticism for using the word "punishment," his team's punishment in connection with having to play in this tournament. Let's just be fair to Fergie, he did also say that it means unpopular travel days, it means having to play games on Thursdays, it means having to travel on Sundays, which is also going to be impacting on the club's Premier League assault.

And a quick little reaction from Platini himself -- we may not like to hear this, Becky, as fans of the English game, but Platini's saying "the world does not revolve around England. I like England a lot, its football is fantastic, its supporters are wonderful. But you just shouldn't criticize the Europa League just because you played in three Champions League finals." That's a direct reference to Alex Ferguson and his team.

"The Europa League is a brilliant competition. It's amazing. I know Mr. Ferguson would have been preferred -- would have preferred to be in the Champions League, but so would many other clubs. They don't have that possibility."

So, Michel Platini, the head man, the main man, the president of the UEFA hitting back at Ferguson's perceived disdain --

ANDERSON: Wow.

SNELL: -- if you like --

ANDERSON: Absolutely.

SNELL: -- of the old UEFA cup. Becky, back to you.

ANDERSON: What a brave man he is.

SNELL: Yes, he is.

ANDERSON: What a brave man he is. You're coming up, I know, in an hour on "World Sport." Pat, thanks for that.

Still to come on CONNECT THE WORLD, as Iraq prepares for major changes, find out why locals who worked with American forces face the wrath of their fellow citizens.

Then, a controversial new law dictates the hours of the day when teenagers can play video games. I'll ask a psychologist if government intervention should take the place of parental supervision.

(COMMERCIAL BREAK)

ANDERSON: This is CONNECT THE WORLD live from London. You're watching CNN. Let's get you a check of the world news headlines at this point.

The EU leaders have begun a crucial summit in Brussels designed to rescue the eurozone. They're discussing proposals put forward by France and Germany to punish countries who fail to keep their deficits under control.

Police are searching for a gunman after two people were shot and killed on the Virginia Tech campus. A policeman was one of the victims. In 2007, you'll remember, a gunman opened fire on that very same campus, killing 33 people.

Sabotage in Syria. Thick black smoke in Homs after an oil pipeline was blown up. State media blames opposition members, but the opposition says security forces were responsible.

US Secretary of State Hillary Clinton says she stands by her suggestion that Russia's legislative election was manipulated. The comments came after Russian prime minister Vladimir Putin accused the US of stoking anti-government protests.

In the quest to end modern-day slavery, this report, now, from China, where police have broken up two large child trafficking rings and rescued 178 small children. They are calling it their biggest achievement since a campaign against human trafficking was launched in 2009.

More than 600 suspects are now in custody after an investigation that took months of painstaking work. Stan Grant reports.

(BEGIN VIDEOTAPE)

GRANT (voice-over): They come at night and they don't ask permission to enter. Inside, a suspected child trafficker and a baby.

(MEN SHOUTING IN CHINESE)

GRANT: "What's the child's name?" this policeman yells. Within minutes, the baby is snatched away, rescued, and the suspect arrested and hauled off.

Five thousand police have fanned out across ten different provinces in China. Authorities say more than 600 suspected traffickers have been rounded up, leaving 180 babies whisked away.

"We must not leave any child behind," this policeman says.

GRANT (on camera): This is all part of a coordinated attempt to try to smash what is a lucrative trade. Since 2009, when special police units were set up, authorities here say that thousands of trafficking rings have been busted, and tens of thousands of women and children rescued.

GRANT (voice-over): "This policy is aimed at cracking down on the buyers' market," this policeman says. "We will ensure the buyers lose both their money and the purchased children."

China's one child policy has helped fuel this trade. Children are scarce and valuable, especially highly sought-after boys. Women, too, are stolen and sold into prostitution or forced marriage.

For now, the latest children rescued will be held in orphanages in the hope they'll be reunited with their families.

In a land where kidnapped children can fetch a high price, parents hold tight to their most precious possessions.

Stan Grant, CNN, Beijing.

(END VIDEOTAPE)

ANDERSON: Well, you can learn more about the CNN Freedom project on our website, cnn.com/freedom. There, you can get facts about modern-day slavery, what people are doing about it around the world. There's also a section that shows you how you can help. Do get involved, cnn.com/freedom.

You're watching CONNECT THE WORLD here on CNN. When we return, Iraqis and Americans working together, but at what cost? We visit the so-called Traitor Town where locals are accused of siding with the enemy.

(COMMERCIAL BREAK)

ANDERSON: Welcome back, 39 minutes past 9:00 in London.

Well, all this week on CONNECT THE WORLD, we are looking at how American soldiers are preparing to exit the country at the end of the year and what they will be leaving behind. Locals have been working alongside US troops as the country gets ready to enter a new era, but as CNN's Arwa Damon explains, some have been branded traitors by their own people.

(BEGIN VIDEOTAPE)

ARWA DAMON, CNN INTERNATIONAL CORRESPONDENT (voice-over): Just north of Tikrit, Saddam Hussein's hometown, is a village everyone calls "Traitor Town." Adel Ensayif, the village chief, shows us why.

Just a few steps from his home is the former US military base, Speicher, recently handed over to the Iraqis.

"It's painful to look at the compound," Ensayif says.

Speicher once employed hundreds of villagers, from day laborers to translators. The men gathered in Ensayif's home tell us at least three villagers were killed over the years just for working with the Americans.

"The threats started from day one, up until this very moment," Ensayif adds. They had hoped that the Americans would bring prosperity. Instead, they say, they've got nothing but dirt. "Dirt," Ensayif says bitterly. "They're leaving an Iraq that is nothing but a pile of dirt."

In Saddam Hussein's time, the base was an Iraqi air force academy.

DAMON (on camera): This is very much a military town. Look, there's a bunker right in the middle of it. Now, residents say in 2003 when the US military first invaded, they struck a number of targets in the vicinity, although the town itself was not directly hit.

Still, they say, that just about every single window in all of the buildings here shattered, and they were absolutely terrified.

UNIDENTIFIED MALE: When they struck camp to talk to people, we were happy with them. We saw they came not to kill us. They came to help us.

DAMON (voice-over): This young man asked not to be identified. He's afraid he will be killed for working as an interpreter for the Americans.

UNIDENTIFIED MALE: They leave, and that's really bad. Iraq is going to be destroyed.

DAMON (on camera): So you think they failed in their mission to help Iraq?

UNIDENTIFIED MALE: Yes. They're not supposed to leave now. They have to be here. We still need help, a lot.

DAMON (voice-over): Ruqaya Mohammed shows us her son's photo. He was also a translator for the Americans. He's now living in the United States under an asylum program for Iraqis who face threats after being employed by the US.

He's one of the lucky ones. Across the country, there are many Iraqis who worked for the American military and private American companies anxiously waiting to escape to the United States.

But for his mother, it's a tragedy. "I wish the Americans had never come, so I could still hold my son close," she weeps.

For the others left behind in this village, there's anger. They say that the nation that came to liberate them from one evil has abandoned them to another.

Arwa Damon, CNN, al-Souqur, Iraq.

(END VIDEOTAPE)

ANDERSON: You're watching CONNECT THE WORLD here on CNN. I want to get you back to Brussels for the very latest from what is a crunch crisis summit for the eurozone. So, more on that, shortly.

Plus, the real-life cost of virtual reality addiction. How one country is cracking down on gaming-addicted teens. That coming up after this.

(COMMERCIAL BREAK)

ANDERSON: Video gamers from around the world are testing their skills at the World Cyber Games in Busan in South Korea this week. The country has one of the fastest broadband networks in the world and is home to millions of avid gamers. But as Hala Gorani now reports, that distinction comes with a cost.

(BEGIN VIDEOTAPE)

HALA GORANI, CNN INTERNATIONAL CORRESPONDENT (voice-over): In South Korea, it's game on 24/7 at popular internet cafes. Known here as PC baangs, they offer gamers a comfortable social environment to relax, eat, smoke and, of course, play video games with their peers. Another draw, the gaming systems in PC baangs are usually top-notch.

But there's a dark side to South Korea's gaming culture. Video game addiction is widely regarded as a major social problem. In perhaps the most extreme example, a couple was convicted last year of letting their baby starve to death while they spent countless hours playing an online game.

They were adults, but a national survey last year found video game addiction impacts children the most. According to the study, nearly 14 percent of 9 to 12-year-olds in South Korea are internet addicts.

Now, the government is fighting back with an online gaming curfew from midnight to 6:00 AM for children under 16. It took effect last month.

KIM SUNG-BYUK, MINISTER OF GENDER EQUITY AND FAMILY (through translator): There are many people who view this measure as a means of the country and government providing parents with a guideline for them to regain the right of education that was lost from aggressive marketing strategies and the fun factors of games promoted by gaming companies on teenagers.

DAMON: Still, activists argue the law violates children's civil rights, and many parents resent what they regard as government intrusion.

Kim Hye-Jeong says one of her two children suffered from internet gaming addiction and recently spent about five months in therapy for it. But she feels the law is disrespectful to parents and children and ignores the roots of the problem.

KIM HYE-JEONG, MOTHER (through translator): I think the government should be playing a different role. They shouldn't label the parents, children as victims and call the game companies the vice. They shouldn't be the ones judging others.

What they need to do is understand why the children have no choice to do what they do. Understand why they get addicted to games and create a platform for everyone to talk about the problems.

DAMON: Teenagers who violate the so-called Cinderella Law face no punishment if they're caught playing online games after midnight. But officials of companies that make online games and video consoles could face penalties.

Some companies are still trying to figure out how to comply. Sony recently blocked South Koreans under 16 for registering for accounts on its PlayStation network.

Industry and parents' groups have vowed to fight the curfew, and teenagers will, no doubt, find ways around it. But for now, according to the law at least, it's game over at the stroke of midnight for young gamers in South Korea.

Hala Gorani, CNN.

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ANDERSON: Well, excessive gaming is an issue that affects young people around the world. Experts say extreme gamers can often be prone to mood swings and find it harder to take on other activities.

Physical symptoms can include nausea and unpleasant dreams, often about the games. And gaming addicts are also more prone to obesity, eating high levels of junk foods and avoiding exercise.

So, what can parents do to prevent this or help out? For that, we're joined by Dr. Lisa Boesky, who's a clinical psychologist in San Fran -- no, San Diego. And the author of "When to Worry: How to Tell if Your Teen Needs Help and What to Do About It." Lisa, thank you for joining us.

We know gaming is addictive. Do we know why?

LISA BOESKY, CLINICAL PSYCHOLOGIST: Well, if you think about it versus the TV, it's much more engaging, it's got the music, it's got the graphics.

And there's a competitive nature to it. You're playing it over, and over, and over, either competing with yourself and your previous score, or you're competing with your online friends or virtual friends, trying to see who's the best.

And we know boys are competitive, and gaming is mostly a problem among boys, but we also have some evidence now that it may actually be affecting the reward centers of the brain, and it works similar to any other kind of drug use so that you need more and more of it to get the same feeling, and you feel really irritable without it.

ANDERSON: What sort of damage does it do, Lisa?

BOESKY: Well, the kind of damage we're seeing, research shows, particularly with kids, is that it affects their school work, their homework, that they're too tired to go to school, their grades are dropping. But we're also seeing kids not eating at all, skipping meals because they're gaming --

ANDERSON: Whoa.

BOESKY: -- or because they're sitting there for hours, they're just eating junk food, they're eating food that's not good for them, and they're not moving around, so we see it leading to obesity, overweightness, pain in their arms, and families complaining that they never get to see their children.

ANDERSON: What do we do about it, is the question. We know what the South Koreans have decided to do, they're legislating as a curfew. Viewers have been weighing in on our Facebook page. Have a listen to this, Lisa.

Chris Edward says, "I'm 24. I'm employed and I'm addicted to gaming." He writes, "A curfew is taking it just too far. I don't think gaming is a hindrance to progress, but on the contrary, it improves reflexes, knowledge, and logical reasoning," he says.

Geoman Cosmos doesn't buy that at all. She says, "Youths are no longer willing to study. They spend horrible amounts of time living in a world of fantasy and unwilling to do anything. In the end, society pays for this."

Two good comments from different spectrums, there, Lisa. What should be done about it. Is legislation the answer?

BOESKY: Well, I don't think it's the only answer. I think it's helpful to send a message to parents to take it seriously, but I think the real -- the real world answer is what happens in the home.

Parents have got to limit their child's screen exposure. Kids shouldn't have these games in their bedroom, it should be in a central location so the parents can monitor it.

And parents need to be a parent, not a friend, and even though the kids are going to be mad and upset, they have to say, "No, you can only watch it after you do your homework or after you do your chores." And parents should be watching these games with their kid. If there's a lot of violence or a lot of sex, then maybe they shouldn't be playing it at all.

But I do think it's important for everybody to take a role in this, because it affects everybody, and it's affecting the kids at the time of their life when they're learning how to interact with other people, how to deal with conflict, and we really don't want them learning it from these video games.

ANDERSON: Yes, Lisa, you and I remember when we were kids. The last thing we wanted was any parental involvement in anything we were doing. So, is what you're saying realistic at this point?

BOESKY: It has to be. And parents need to start early. You can't wait until someone's 17 years old and then say "no video games." I think kids have to earn -- they have to earn the right to play these games rather than it's just a normal part of life. And they have to be limited in the amount that they play it.

Parents limit other things that these kids do. And I think we've literally lost track of the fact that kids need to be outside and they need to be interacting with people in person.

What happens with these kids when they're only playing online is they're not developing good social skills or they're only interacting with people who are online and they're losing sight of one-to-one interaction.

So, I think it may not be easy, but I think parents have to take back the control. They're the only ones that have a say over their kids, and you need to start early, because if you wait until they're 17, you're a little late.

ANDERSON: You've been told. Lisa, we thank you for that, Lisa Boesky is your expert on the subject this evening.

All right. I want to get you back to our top story, now, and the crucial EU summit that is underway in Brussels as we speak. This is no game, let me tell you. The stakes are extremely high. Richard Quest is there. Richard, what have we heard at this point?

QUEST: Becky, I was just about tweet, actually, that there is a Reuters news agency has a -- well, it has a draft of an agreement that will be a complicated deal concerning the bailout from the EFSF and the ESM and how they're going to leverage it up.

That is seen by some here as being the most crucial and immediate part of solving the crisis, but the underlying issue, one of treaty change, that of course, we still wait to hear. 11:00 at night in Brussels. We are not expecting to get out anytime soon.

ANDERSON: Yes, all right. So, what we should all be looking at now is another 24 hours at least before we get any sort of conclusive solution to what is, let's face it, a -- this is a crisis. We're told we've been using the world "crisis" for two and half years, now, in Europe. This is a crisis with a capital C.

QUEST: Yes, but for the first time in this crisis, the issue has been much more closely defined, and it really is one of fiscal compact. This is the first time amongst all the summits that we've had, that they've really grasped that mettle of what are they going to do on fiscal union and fiscal compact? They know that is the key to unlocking Mario Draghi and his ECB checkbook.

ANDERSON: You're right. They're talking about this fiscal compact. Let me just get this clear, because you and I have been talking about the necessity for a fiscal union to run a currency zone for some time now. You can't run it with just a monetary unit. Are we talking about tax and spend legislation across the entire European space, or would that be going too far?

QUEST: That is way too far. Too far and too fast. Although, ultimately, that is probably the end destination some years down the road.

Initially, you're talking about supervision. You're talking about approval. You're talking about sanctions. You're talking about fines. You're talking about budgetary czar. You're talking about ensuring that no country can ever put the Union in the jeopardy the way countries like Greece --

ANDERSON: Sure.

QUEST: -- have done so, so far. That is what you're talking about with fiscal compact at the moment.

ANDERSON: Yes, and that's what worries me, because I don't think that's enough. But anyway, it's -- short term, it may be the best fix. Richard Quest is in Brussels for you this evening and will be there for some hours to come.

I'm Becky Anderson. That was -- or is CONNECT THE WORLD for you this evening. Here from London, from the team, it's a very, very good evening. Thank you for watching. Your headlines and "BackStory" are up after this short break. Don't go away.

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