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E.U. Leaders Meet for Crucial Talks on Ukraine and Defense; Missile Strikes Hotel in Zelenskyy's Hometown; Lithuania Invests $21 Million in Ukraine's Military Defense; Lutnick Says Some Mexico and Canada Tariffs Likely Delayed; Book Explores UAE's Roots Stretching Back 130,000 Years; Former Hostage Negotiator on U.S.-Hamas Talks; Israeli Health Ministry Reports Lives of Remaining Hostages Are at Risk. Aired 10-11a ET
Aired March 06, 2025 - 10:00 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
[10:00:00]
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UNIDENTIFIED MALE (voice-over): Live from CNN Abu Dhabi, this is CONNECT THE WORLD with Becky Anderson.
BECKY ANDERSON, CNN HOST (voice-over): Welcome to the second hour of our show. I'm Becky Anderson in Abu Dhabi, where the time is 7:00 in the
evening. It is 4 pm in Brussels, where European leaders are scrambling to try to take control of negotiations over the war in Ukraine.
An increasingly frantic tug of war against the U.S. and Russia that could be nearing a climax. And it is 5 pm in Kyiv. The real focus, of course, of
all of these talks where Russian attacks continued to wreak damage and kill civilians in the country.
Well, "a clear and present danger," the European Commission president, at today's crucial E.U. summit in Brussels, making it clear how she sees
Europe's new reality, an increasing threat from Russia, emboldened by U.S. president Donald Trump's pivot toward Vladimir Putin as the war in Ukraine
drags on.
Today's emergency summit aims to address that not just with a show of solidarity but with hundreds of billions of dollars to supplement E.U.
defenses and Ukraine's defenses against Russia. Ursula von der Leyen announced what's being called a rearmament plan ahead of the summit and she
says the need to boost spending is urgent.
(BEGIN VIDEO CLIP)
URSULA VAN DER LEYEN, PRESIDENT, EUROPEAN COMMISSION: This is a watershed moment for Europe and Ukraine, as part of our European family, it's also a
watershed moment for Ukraine.
Europe faces a clear and present danger and therefore Europe has to be able to protect itself, to defend itself, as we have to put Ukraine in a
position to protect itself and to push for a lasting and just peace.
(END VIDEO CLIP)
ANDERSON: Well, Nic Robertson, back with us this hour from Brussels, the site of that meeting. Nick Paton Walsh is in Kyiv in Ukraine.
And Nic Robertson, Ursula von der Leyen's goal, realistic?
NIC ROBERTSON, CNN SENIOR DIPLOMATIC EDITOR: On the surface, yes, and probably yes; 800 billion euros, about $861 billion. There's a plan to how
to get that money; 150 billion of it would come through loans.
The idea would be the E.U. would essentially do what it did during COVID, which is use sort of emergency loopholes, sort of legislation or rules, if
you will. Article 122 is the technical term here.
And go to big financial institutions, banks and say, hey, look, we're a community of 450 million people. We're worth a lot of money and we're good
for these loans.
And what they did during COVID was buy vaccines for the whole of the union. So it's a similar kind of event to get that 150 billion. The way to do
that, that's probably open.
The other is to appeal to the nations of -- the 27 member nations and that is to say, OK, guys, you can dig into your pockets, spend more on defense
spending, 1.5 percent of GDP additional defense spend would be equivalent if they all did it, 650 billion euros.
The trick, the E.U. sort of money tree trick on that, if you will, is that they have to relax some fiscal rules to allow some of those countries, who
are already in high deficit, to go into deficit more to be able to do that. So that's sort of bending their own rules.
What are they up against?
They're up against a couple of countries, notably Hungary, Slovakia, who would vote against such moves. But the weight of agreement that already
seems to exist -- and, of course, what they're talking about is some of the nitty gritty, even sort of more in the weeds details than what we're
talking about here.
The expectation is Ursula von der Leyen will get the go ahead to figure out how to get this money. So it's not like she's going to be told, yes, put
the money on the table. She's going to be told, OK, now get the detail and get going on it.
So the money's not there yet. It has to come and that will come. expected provisionally over the next few weeks. Then they can figure out how to
spend it, what to spend it on. So it takes time.
ANDERSON: It's not even a week since that infamous Oval Office meeting between U.S. president Donald Trump and Volodymyr Zelenskyy.
Nick Paton Walsh, we've just heard new insight into Trump's thoughts about that meeting. Here's the U.S. special envoy to Russia and Ukraine just
moments ago.
(BEGIN VIDEO CLIP)
KEITH KELLOGG, U.S. ENVOY TO UKRAINE: President Zelenskyy clearly wanted president Trump to side publicly with United States, with United States
against Russia, it would have negated an objective interlocutor role.
[10:05:04]
President Trump, however, was not approaching as a matter of one side gaining an advantage over the other but was instead focused on peace.
(END VIDEO CLIP)
ANDERSON: Given what you've seen going on in Brussels today, given what you've just heard from Keith Kellogg and considering where we are at not a
week yet after that meeting, where do you see things standing at present, Nick?
NICK PATON WALSH, CNN CHIEF INTERNATIONAL SECURITY CORRESPONDENT: I mean, there has been a material shift now in the public positioning of the United
States, no longer the ally of Ukraine in this war, solely considering itself someone in between both sides in this war.
So beware what you will. What happens to the pause in U.S. military aid or intelligence sharing that is now their public policy.
And to be clear, you can't really be the ally of both sides in a war, particularly given the position the U.S. has occupied over the past three
years and being the main plank of support to Ukraine. That is increasingly clear.
And is it a negotiating tactic?
Is it, as Trump said in his meeting with Zelenskyy, that he can't talk bad about somebody if he wants to try and get them to make a deal?
Well, I think this is where the world of business and the world of geopolitics don't necessarily align. No one's really tried something like
this before, perhaps because it doesn't have necessarily a great success of working.
The issue, I think, for Ukraine is very much the notion that the psychological damage of U.S. withdrawing aid, intelligence sharing, even
the practical damage that we'll see in the weeks ahead will embolden Russia.
They clearly will feel emboldened by what we're seeing now, two emergency meetings in just five days, both of which Zelenskyy is present at. Yes,
this is solidarity around Ukraine.
But it's one where the basic details clearly suggest from European officials that they can't implement their own plan without U.S.
psychological and practical support. That is in doubt. And that is an unprecedented moment in the last 80 years in European continental security.
So Zelenskyy is now faced with a very difficult moment in that we, yes, continually see this European support, planning for their own defense,
planning to step in as much as they can but acknowledging they can't really see success without the United States.
Zelenskyy has gone, it seems, quite some distance in his public statements, calling that Oval Office meeting -- that many Ukrainians here, frankly,
think was a public drubbing for their wartime president -- calling that "regrettable," saying he's willing to sign the rare earth minerals deal at
a time that is convenient for the White House.
And publicly saying it's not a change in Ukraine's position but they commit to a peace. The issue is the kind of peace they're expected to commit to.
And we just don't know what president Trump's thinking on that is.
There is a U.S.-Russia track of negotiations happening without Ukraine or Europe. There is a European plan taking shape with Ukraine, the details of
which we'll see hammered out in a military chiefs meeting amongst European powers in Paris next week.
And then there is perhaps the idea that Trump simply wants to feel Zelenskyy is more onside for this peace deal. We don't know where the White
House is in terms of the details of that.
But we do know, that even after Trump said in his speech on Tuesday night that he'd received the letter from Zelenskyy and talked about it in
positive tones and, indeed, Zelenskyy seems to hope there'll be more meetings in the weeks or days ahead, we saw intelligence sharing cut,
publicly announced the following morning.
That's massively crippling, potentially, to Ukraine's wartime efforts here. And so while there has been this bid to suggest there's a positive future
ahead, the practical reality of it is that the United States has shifted from being on Ukraine's side to being, it says, in the middle, though the
Russians will see them closer to Moscow.
And Ukraine is facing, in the weeks ahead, a massive crunch in resources and wartime capability that the Europeans simply can't make up the gap in.
Becky.
ANDERSON: And more perspective from the Trump administration in the last 24 hours.
His secretary of state, Marco Rubio, saying, quote, "The U.S. is waging a proxy war against Russia in Ukraine."
This, he said, "must end."
Well, it hasn't ended, of course, because the conflict goes on.
Just explain what's been going on the ground in the past, what, 24 hours or so?
WALSH: Yes. I mean, just to be clear, the idea that this is a U.S. proxy war against Russia is a Kremlin talking point, full on. I mean, that is
what they've been saying, that they are at war with NATO.
They have been trying to explain the lack of their ability to achieve their military goal in the first six weeks, three weeks or last three years as
being because they're facing the massed ranks of all of NATO.
That is obviously not accurate. Much of NATO is providing military support to Ukraine but the forces they're facing on the battlefield are Ukrainians.
And so it's interesting to hear that specific point being made by Marco Rubio, the secretary of state of the United States.
[10:10:03]
The battlefield now is seeing two or three things we have to bear in mind, of Kursk, where Russia experienced a Ukrainian incursion in August of last
year; Ukrainian forces, by most accounts, are losing ground there and are in a potentially perilous place with that one key piece of negotiating
territory that Ukraine had.
It was their main card. Donald Trump likes to talk about cards. That was one that they had. And they look like they're losing there. Slowly around
the rest of the eastern front, there are suggestions, perhaps, that Ukraine is seeing its positions ease slightly.
It's under less pressure but it's important to bear in mind that there are rhythms of Russian movement here. Sometimes they choose to slow down or
step back to build up manpower for future offensives.
Potentially, you might argue, Moscow seeing the ammunition crunch in the weeks or months ahead. It might want to reserve some of its powder or
manpower for later stages.
And then there is what we saw last night, Becky, which is the real, immediate toll of what we're talking about in foreign capitals. And that's
U.S. military aid. Key to that, Patriot defense missiles.
Last night, Zelenskyy's hometown, Kryvyi Rih, was hit. A hotel there hit with a ballistic missile. Exactly the kind of thing that only Patriot air
defense missiles can stop. Four died in that, dozens injured, one of a multiple number of incidents I could tell you about over the past weeks.
We're into well over 50 dead since Trump called Zelenskyy a dictator. The toll continues to rise in civilians away from the front line. The front
line toll is by the hundreds of every day. So this is a war of acute savagery and loss on the front and in civilian cities, too.
And while we debate about the kind of concepts of who can support whom and who's realigning where, that doesn't detract from the fact that there's a
loss of life here in Ukraine and also amongst Russia's military ranks. Horrific casualty tolls there.
Some suggestions from British military intelligence that they've dropped down to 1,200 dead and injured a day and that that is comparatively low. So
remarkable losses around the front lines but most importantly in Ukraine's civilian cities, too, Becky.
ANDERSON: Yes, absolutely.
Nick Paton Walsh joining us from Kyiv in Ukraine.
Thank you.
Well, politicians in the Baltic nations have been critical of recent European talks about the war in Ukraine.
The Lithuanian president says Europe now needs to show, quote, "whether it's just a debate club or whether we can make decisions."
The Baltic states, Estonia, Latvia and Lithuania, weren't invited to the talks in London last weekend on Ukraine's security. They may be E.U.
members with the greatest cause for concern about Russia's intentions, as each of them has a border with Russia.
And they were all once part of the Soviet Union. Lithuania has already pledged to boost defense spending to 5 percent of its GDP. It's also spent
$21 billion buying arms for Kyiv from Ukrainian manufacturers.
Defense minister Dovile Sakaliene told "Politico," "We would be naive to think that Europe does not need the United States. We do. But at the same
time, we also need Europe to grow stronger."
And the minister joins me now live from Washington.
And let me just ask you, you are in D.C.; you are talking to lawmakers there.
How are you being received?
What is the mood?
Has it changed significantly, do you believe?
DOVILE SAKALIENE, MINISTER OF NATIONAL DEFENSE, LITHUANIA: Well, I just had a meeting with the chairman of the Appropriations Committee, Mr. Cole.
And I think it was a very good meeting.
And it shows, again and again, that partners, that allies who deliver on their promises, like Lithuania, who invest in their own defense, who
support Ukraine and who are less about talk and more about action, are really perceived as team, as friends and as allies.
So on that I feel really confident. At the same time, of course, there is this difficult conversation now ongoing but which we, as Lithuania, fully
support because we, for years, have been encouraging or even pressuring our colleagues to realize that we need defense industry boost.
That we need defense investments that are well above 2 percent. And yes, as you mentioned, we are going to have from 5 percent to 6 percent GDP, at
least for the period of five years. We have set that specific sum for 2026- 2030 but also we support Ukraine by providing 0.28 percent GDP last year.
[10:15:00]
And this year it's not going to be less. So at least 0.25 GDP to Ukraine would be something that would speak louder than a lot of declarations.
So that is, I think, received well here in D.C. as well as our understanding that sometimes dramatic words do not help because we have to
accept reality. United States is necessary for Europe. But we believe that Europe is also necessary for United States.
But it needs to be not a relationship where one is dependent upon the other but where both are partners, strongly standing on both feet and putting
money on the table, producing weapons and helping each other in action.
ANDERSON: Well, you're in D.C., looking for security guarantees for Ukraine from the Americans and suggesting that Europe can't go it alone or
shouldn't go it alone, that you need U.S. support.
In Brussels today, European leaders seem to be more stern in their words. And you've said, you know, it's time, perhaps, to stop this sort of
bombast. But we are hearing very stern, a sense of urgency in Europe. Take a listen to the European Parliament president.
(BEGIN VIDEO CLIP)
ROBERTA METSOLA, PRESIDENT, EUROPEAN PARLIAMENT: It is about damn time. This is something that we have been asking for a long time, that the
European Union, that Europe is capable of standing up on its own two feet, for Europe to say that we are ready to put our money finally where our
mouth is.
(END VIDEO CLIP)
(CROSSTALK)
SAKALIENE: And frankly --
ANDERSON: -- make of those words?
SAKALIENE: So I couldn't agree more with Ms. Metsola, because that's exactly what needs to be done. And now, when the European Union finally
answered our urge as well, as well as harsh words by United States and is now ensuring that we will have those hundreds of billions of euros
necessary for our defense capacity strengthening.
Which is a necessity if we want to help Ukraine. That means, as she said, that we finally put the money on the table and therefore 800 billions that
would be available for defense, including 150 billion for quick loans for joint loans by the states, especially those that are on the border,
strengthening of the northern eastern flank.
That is the action that we need. What I meant before that, you know, less chat, more action, is less criticism to the style of the way that United
States talks but more action from --
(CROSSTALK)
ANDERSON: Let me -- let -- let's just be -- yes, let's just be clear about this, because you're talking as if that is a reality already. It's a lot of
money. Three quarters of a trillion dollars, being freed up effectively, or more for this rearmament initiative. That's all well and good but it
needs support from the entire bloc.
And, you know and I know that there are a number of countries who are unwilling at this point to really support Ukraine in further aid.
And, you know, seeing this war, frankly, continue, so how's Europe going to come together, if at all?
SAKALIENE: Well, let's look at the chronology. Last year, when Lithuania was saying very loudly that we need money for defense investments right
now, we were absolute minority. In the beginning of this year, already a bloc of countries along the northern eastern border were speaking in one
voice.
But after the ministerial, after defense ministers' meeting in Brussels, where secretary Hegseth, well, had a cold shower for all of us, in 24
hours, there was more change than in months.
And now, after certain harsh statements by president Donald Trump, European Commission is now talking about specific numbers, specific mechanisms. And
there are talks also how we could resolve the joint decisionmaking obstacles that we are now having.
That certain borrowing systems could be not as a European Union itself but is as a coalition of certain countries. Technical and legal issues can be
resolved very easily if there is a political will.
And now, finally, in the matter of a few weeks, this political will has moved forward much further than in years before. And since we all know how
the situation is going, I'm quite sure we will have to do it, even though it's going to be difficult.
[10:20:02]
But now Germany, Germany, of all of them, has said very clearly that Maastricht criteria should not be applied to defense spending whilst
Germany was one of the main opposers.
Now even in France we have talks about use of the 200 billion frozen assets for Russia, even though there is internal discussions. But in France, it is
already happening. So therefore I think that we will now, as Europe, we will have to prove.
Are we doing business really?
Or are we just continue talking?
And I think we are now finally on the business side.
ANDERSON: Fascinating. Well, it's good to have you on. Thank you very much indeed for joining us out of D.C. today.
Still to come, president Trump backing off some of his tariffs, at least for a moment, on Canada and on Mexico. The latest on that tariff roller
coaster is just ahead.
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ANDERSON: U.S. president Donald Trump has made a 180 on auto tariffs on Mexico and Canada, granting a one-month pause.
And this just in: Commerce Secretary Howard Lutnick has just told CNBC that he believes the delay will be extended to all goods from Mexico and
Canada.
There will be people watching this now who will have seen that the markets are tracking lower. They are now still low but not as low as they were.
I mean, these comments made by significant Trump employees or Trump appointees can really move markets around. Certainly we've got the Dow down
0.1 percent. The Nasdaq down just shy of 0.08 percent and the S&P down about 0.75 percent. That's less than they were down at the beginning of
trade today.
So look, I mean, frankly, there's been a lot of lurching around in the Trump administration's position when it comes to these tariffs. They say
that they can provide some flexibility for those who work with them. You could also argue that they may be watching what these markets are doing and
working in real time.
Who knows at this point?
Markets hate uncertainty. I can tell you that, having been a business journalist for some 25 or more years. It is the nemesis of these stock
markets, uncertainty.
And so let's just watch what happens and let the dust settle on these on these tariffs for a bit before we start really trying to work out how they
might impact the U.S. economy and other economies, medium to long term.
[10:25:04]
Meantime, a number of Republicans are pushing Elon Musk to coordinate more with Congress on his sweeping DOGE cuts to the federal government.
Their message, delivered during a pair of private meetings with the tech billionaire on Wednesday, is the following.
Republicans are looking to reassert more power and even vote on some of the budget cuts that DOGE is targeting. CNN's Stephen Collinson has written an
analysis piece about the Trump administration's America First strategy. That's, of course, moved at a breakneck pace.
He writes, "To some extent, the chaos is the point. And the theatrics of a president addicted to stunt politics are key to his political appeal. For
some MAGA supporters, Trump's genius for enraging Democrats, the media and foreign governments is an end in itself.
"And for ideologues on the populist/nationalist right, sparking pandemonium in Washington and destroying government agencies is a way of deconstructing
the administrative state."
Stephen Collinson joining me now.
The title of your analysis piece is called, "The world is beginning to tire of Trump's whiplash leadership."
Look, what I've just read out is so eloquently written as ever by you. You've got a real turn of phrase.
But when you talk about the world beginning to tire of Trump's whiplash leadership, I just wonder whether that is strictly true or whether you
could also argue that the world is less tiring of Trump and more stepping up in what many, I think, feel are these sort of, you know, threats that
may or may not have any substance going forward.
Certainly, from the European side, there is this sense of urgency now, that you and I have watched the European space for years now, simply haven't
seen before.
STEPHEN COLLINSON, CNN WHITE HOUSE CORRESPONDENT: Yes. And I suppose you could argue that to some extent, the fact that Europeans are now stepping
up and saying we're going to spend more on our defense is a success for Trump, because he's been demanding that for a long time.
The issue here, though, I think, is that a lot of American allies and the populations in those countries are starting to realize that, going forward,
first of all, that Trump is not necessarily an aberration. This, after all, is the second time he's been elected.
But also that American values and priorities may no longer be shared with its allies. There's massive frustration in Canada right now. These tariff
threats keep coming out of the White House. Canada tries to respond to them, even though there's not that much fentanyl or undocumented migrants
that go across the border from north to south.
And then Trump comes up with another reason why they want the tariffs. Now perhaps the tariffs aren't in place. This causes huge uncertainty; as you
were saying, volatility. People in business need to plan.
And the wider issue -- and I think it's a case in Europe as well -- another reason why they're talking about more defense is that the United States,
which was for so long a bulwark of stability and reliability, has now become perhaps the most disruptive force in the world and cannot be relied
upon, whether Trump is in the White House or not.
So I think that is the whiplash here. People are working out that for their own political futures. Leaders in allied countries and, for their
populations, they cannot carry on relying on the United States. And if this whiplash continues, it's going to cause a great deal of stability across
the world -- instability.
ANDERSON: Yes. It's good to have you on. I often say you're a regular guest on this show. You're a very regular guest on this show and for all
the right reasons. And I do hope this continues. I hope you make time for us. Your analysis and insights are always so valuable, Stephen. Thank you.
Still to come, a critical moment for European leaders as America pulls back and with more defense spending very likely on the horizon. Well, that
opened the door to new economic opportunity for the continent. That is, after this.
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ANDERSON (voice-over): Welcome back. You're watching CONNECT THE WORLD with me, Becky Anderson, from our Middle East programming headquarters here
in Abu Dhabi. Your headlines:
European leaders are holding a crucial summit in Brussels, aimed at boosting defense capabilities and aid for Ukraine's war with Russia.
European Commission president Ursula von der Leyen says the continent faces, quote, "a clear and present danger." She's presenting an $860
billion plan to increase E.U. military spending.
Well, in South Korea, 15 people were injured after the air force there accidentally dropped eight bombs on a civilian area. You are looking at
video of the moment one of those bombs hit.
It happened earlier today during a live fire joint exercise with U.S. forces. Officials say initial findings suggest a pilot had entered the
wrong bombing coordinates.
Human Rights Watch is warning that Israel's blockade of Gaza, preventing aid, including fuel, from getting in, will shut down the enclave's water
infrastructure within a week. The group calling Israel's move a violation of international humanitarian law.
The U.K., France and Germany also urging Israel to ensure Gaza gets unhindered access to aid, saying it should not be used as a political tool.
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ANDERSON: Well, I want to get a little bit more on what is some breaking news that we brought you about 10 minutes ago.
The U.S. Commerce Secretary, Howard Lutnick, saying in an interview with CNBC that he believes that Donald Trump will end up delaying the levies or
tariffs on all goods from Mexico and Canada, not just on the auto industry.
Let's discuss this with CNN's Anna Stewart. She joins us now live from London.
More mixed messages out of the Trump administration and, coincidentally, during another day when the markets were significantly lower. These are
messages of flexibility, which tend just tend to push markets a little higher again.
What do you make of what we're hearing?
ANNA STEWART, CNN CORRESPONDENT: Well, we're looking at U.S. markets right now. They are slightly higher than they were. They're still in the red. And
frankly, Becky, it's becoming pretty difficult if you're an investor to know where to put your money right now, given the policy and the trade
tariffs change sort of every 30 days.
We're getting very mixed signals here. So we've had a difficult few days for the market. It'll be interesting to see where we go from here. But the
tariffs on Canada and Mexico potentially now being moved to April the 2nd.
This would be in time for all of the other so-called reciprocal tariffs that are expected on places, like the E.U. So that then sort of delays
perhaps the inevitable, unless more negotiations take place.
And we have been watching, you know, for signals in terms of negotiations. We know, for instance, president Trump had a conversation with Canada's
prime minister, Justin Trudeau, yesterday and that they had a constructive, very long conversation today; a conversation with the Mexican president as
well. No news yet what's come out of that.
So this is from the Commerce Secretary. We're waiting for an actual official update as whether this will happen. And maybe that's why markets
are slightly treading water right now, because we don't have confirmation even that these tariffs have indeed been delayed.
ANDERSON: Yes.
[10:35:00]
Trump tariff day threatened for April the 2nd, the day after April Fool's Day.
All right. Look, let's park that just for the time being. It does look like Donald Trump is succeeding in getting Europe to spend significantly more on
defense. And I know you could argue, at least, that this could be good for Europe on a lot of levels.
Right?
STEWART: Yes, perhaps more levels than people initially considered. And this isn't something that's actually new from the U.S. The U.S. has been
telling Europe, particularly different presidents have been telling Europe to up their spending on military and defense for many, many, many years.
But Europe's really taking it very seriously right now. Currently the E.U., you know, if you averaged all the spending out, they spend about 1.9
percent of their combined GDP on defense.
Now one economics professor at LSE (ph) has estimated that, if they were to increase that, say, to 3.5 percent of GDP as a result of all of these
meetings, well, that could result in a 1 percent increase in GDP for the E.U., which would be badly needed.
Right now, the E.U. is expected to grow at less than 1 percent this year. And, of course, if you increase investment in defense, you are increasing
jobs. You are investing in infrastructure. With jobs comes more economic spending. You boost spending. That's only a good thing.
There are also sort of a spillover effect of advanced technology in defense, feeding into other sectors. And generally, historically, when you
spend more on defense, you tend apparently to increase productivity in an economy as well.
So all good things. If you look at defense stocks right now, we can see that, this year, they are all up considerably. So investors are feeling
pretty bullish about putting their money into European defense stocks.
We did have some warnings today. It was the ECB meeting a few hours ago. This is from the ECB president, Christine Lagarde, kind of warning about
some of the economic headwinds that are quite clearly ahead.
(BEGIN VIDEO CLIP)
CHRISTINE LAGARDE, PRESIDENT, EUROPEAN CENTRAL BANK: An escalation in trade tensions would lower euro area growth by dampening exports and
weakening the global economy.
Ongoing uncertainty about global trade policies could drag investment down. Geopolitical tensions, such as Russia's unjustified war against Ukraine and
the tragic conflict in the Middle East, remain a major source of uncertainty as well.
(END VIDEO CLIP)
STEWART: So defense may be a bright spot, Becky, but we're looking at a pretty uphill battle here for Europe. I've actually just come back from
Spain. I have to say, the conversation about tariffs is one that everyone is talking about, expected on April the 2nd. Maybe, maybe not.
Who knows?
Becky.
ANDERSON: Yes.
It's fascinating, isn't it?
Well, we wait with bated breath. Beginning of April.
We're going to take a very short break.
Anna, thank you.
We'll be right back.
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During the Muslim holy month of Ramadan, the UAE is reviving its tradition of firing a cannon daily at Iftar, the breaking of fast, of course. The
first one firing Saturday from the Grand Mosque here in Abu Dhabi.
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ANDERSON: Well, tradition is at the heart of the UAE. Despite being known for its modernity, I recently spoke with the author of a new book spanning
130,000 years of the history of the land that became the United Arab Emirates and about the ways past and present intertwine.
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ANDERSON (voice-over): Before the skyscrapers and world records, the 53 year old United Arab Emirates had a rich history. Spanning 130,000 years,
previously unknown, now discovered by Alexander McNabb, author of "Children of the Seven Sands."
Trade the common thread weaving through time.
ANDERSON: There will be many people watching this who will say what they know about this country, which is just over 50 years old, is its story of
its oil wealth. And, of course, there's a much richer history than that. That has been literally over the last 50 years. You allude to pearling, for
example. This is a great global trading hub.
ALEXANDER MCNABB, AUTHOR: That's in the DNA of here. And we say that because, Sheikh Hasher Al Maktoum opened up Dubai to trade in 1905. But the
first ever intercontinental human trading network, established 5,000 years ago, was established through here. It was between Mesopotamia and Harappa,
the Indus Valley civilizations.
And these two civilizations traded through what is now the Emirates. So this was the locus of that hub.
The great Arab trade network with the east, the role of Hormuz and Julfar, the Arab dhows trading with China, with Taiwan sending this rich richness
through to Europe, where there was a ready market for it.
The way the Portuguese demolished that trade network, the fact that they were fundamentalist, bloodthirsty fanatics, the Portuguese, they went
around cutting off people's noses and their ears and they basically took over that trade network. And that's why Portugal became rich.
And then, of course, the British took over from the Portuguese. And so the great myth of piracy in the Gulf, that was a lie. And that wonderful
Emirates hub and spokesmodel, of course, when Hasher opened up Dubai to trade, it brought in the Indian, British Indian steamships to Dubai from
Bombay. So at the end of the day, it's been all about trade.
ANDERSON: Where is this country now and where is it headed?
MCNABB: It all started in 1968 and the British announced that they were going to leave. They were going to unilaterally abrogate the protectorate.
And the rulers here, the sheikhs, the Trucial States were aghast. You just can't do this. There was no infrastructure here. There were no road
network. There was no school network. There was no ministry of finance. There was no ministry of anything really.
And the British gave them three years to put all of this together. And that led to this place falling forward. It was always going to be about the
future. You've got to build a nation. It does not matter how much oil wealth you have. Building a nation is a huge task.
And so the first 50 years the Emirates was really about that building. It was about infrastructure, it was about places.
And then came this dawning realization that, actually, what about the people?
You've got the places. You've got to do something about the people. So if the first 50 years was about places, the next 50 becomes about people.
Still, the future, that remorseless focus on the future but also on people.
And then now what we're seeing is this global hub status. And it's not just people here but people from all around the world. Bring them here, upskill
them, sell them overseas. We used to be a trader network of reexporting.
Now we're reexporting talent building, competitiveness, using innovation, bringing innovators here, being an open global hub for innovators. From
wherever you are, bring your talent here. I find that I'm quite an old man but still I find it inspiring. I find that's a very youthful aspiration.
(END VIDEOTAPE)
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(COMMERCIAL BREAK)
[10:45:00]
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ANDERSON: In an unprecedented move, the White House says the U.S. is negotiating directly with Hamas about hostages and the Gaza ceasefire. The
move goes against Washington's established stance of not talking to groups it deems to be terrorists.
Well, earlier I spoke to former hostage negotiator Gershon Baskin about the remarkable change in policy and what it could mean for the region.
(BEGIN VIDEOTAPE)
GERSHON BASKIN, FORMER HOSTAGE NEGOTIATOR: I think that what's going on here is that the American side believes that they can effectively pressure
Hamas, if they do it directly and not through Egypt and Qatar, where their messages might be softened.
Because the United States actually has very little leverage over Hamas. It has an enormous amount of leverage over Israel. In fact, anything that
president Trump tells to prime minister Netanyahu is going to get done because Netanyahu has no choice. Israel is dependent on the United States.
And unlike when there's a Democratic administration in Washington, there's no one for Netanyahu to go around the back of the president and complain
to.
So what we're seeing here is a determining moment of whether or not president Trump is going to tell Netanyahu to move ahead with stage two of
the agreement, which Israel obligated itself to do and Witkoff negotiated.
Or Trump is going to tell Netanyahu, I tried to push Hamas and didn't succeed. So you now have a green light to restart the war and destroy
what's left of Gaza.
ANDERSON: Donald Trump posting on Truth Social, what he said was a last warning to Hamas, saying, and I quote him here, "release all of the
hostages now, not later and immediately return all of the dead bodies of the people you murdered or it is over for you."
Hamas said this statement derails the ceasefire.
And what do you make of it?
BASKIN: Well, it is certainly, if this is going to be the policy adopted by Israel, then we're not going to see a negotiated second phase of the
deal, which obligates Israel to end the war and withdraw from Gaza, which is a fundamental principle that Hamas is determined would take place in any
agreement with Israel.
Hamas gave in and agreed that it be in a second phase, not in the first phase. And Israel agreed to this when they signed the agreement. But now
Israel is reneging.
So what we're going to see, as I said, this determining moment of whether or not we're going to get back to war in Gaza or whether or not we will
move forward with the release of hostages and a negotiated agreement.
If we're going back to war, then it's also a designation that Israel has decided to sacrifice the remaining hostages. There are 59 hostages left in
Gaza. It's assumed that about half of them are alive.
ANDERSON: Can Hamas be backed into a corner at this point by Donald Trump?
What could they be forced to do or what would they ultimately, do you believe, be willing to do at this point?
BASKIN: Well, I don't believe that the United States has any real leverage over Hamas. It does have leverage over Qatar and in Egypt, perhaps some of
the other Arab countries. It has a lot of leverage over Israel.
But I don't see Hamas giving in to American threats or American demands. In fact, I think it will strengthen the Hamas resistance against any American
imposition of any kind of plan for the future of Gaza, including the disarming of Hamas.
And we know that Hamas cannot be deterred by threats of killing them. It's a religious commandment to become a martyr for Hamas, for Hamas people, for
Palestine, for Islam. So there's no real deterrence there.
The only way to really push Hamas into the direction that we need to go in is the united Arab position. That would have a much greater power of
persuasion on the Hamas leadership outside of Gaza.
[10:50:00]
I'm not sure what kind of persuasion they have of the new, younger, third- tier level military commanders of Hamas in Gaza today. There's no one left from the political command of Hamas in Gaza today. And we're relying on
these young people who are holding the hostages and have delivered so far.
But there could be a rift developing between the political leadership of Hamas outside and the military leadership of Hamas inside of Gaza today.
And that's a very dangerous situation.
(END VIDEOTAPE)
ANDERSON: That's Gershon Baskin speaking to me earlier.
Well, as president Trump issued that threat to Hamas, he and his Middle East envoy, Steve Witkoff, met with eight former hostages at the White
House. One of them is Keith Siegel.
And he said after the meeting, "We trust them and we know they will get all the 59 remaining hostages held in Gaza back to their families, back to
Israel."
Well, meanwhile, the head of the medical division at the Israeli Health Ministry has issued her own warning, that the lives of all those hostages
still held by Hamas are gravely at risk. Dr. Hagar Mizrahi joins me now live from Jerusalem.
And thank you for making the time. These hostages have had harrowing experiences and you've spoken to many of them.
What have you learned about their time in captivity?
DR. HAGAR MIZRAHI, MEDICAL DIVISION, ISRAELI HEALTH MINISTRY: Well, thank you for having me here.
And as I'm in deep concern of the status of the hostages in Gaza and especially in medical terms. And during the last weeks, we have learned
from the returnees that they are -- the hostages that are being held by those terrorist organizations in Gaza, are being held in very, very harsh
conditions.
they are being held in very narrow tunnels underground, tens of feet underground. And they are not being treated appropriately. They are being
denied of medical treatment as well as nutrition and clean water, which, as you know, are basic needs. So I'm in deep concern for the status of those
hostages. And I'm worried.
ANDERSON: What have you found?
MIZRAHI: Yes.
ANDERSON: What have you found in general that these hostages, who have been released, need in terms of care, once they are released and are
returned to their families?
MIZRAHI: Well, what we have learned from the last weeks is that the nutrition status are quite harsh. They are getting not enough calories,
sometimes less than half and some days even total starvation. And that actually led to weight loss, severe weight loss, up to 40 percent of body
weight, which is -- which is quite, quite a lot.
And not only that, some of them have lost muscle mass during these weeks. More than 500 days, as you know, and I'm worried because these types of
condition and this type of body mass weight loss, as well as muscle weight loss, can damage both respiratory and cardiovascular system.
And the nutrition lacks of vitamins, minerals, as well as protein. That also damage the immune function of the body. And the water are not clean
enough. So I'm worried that they might get infectious disease and won't be able to deal with it appropriately because of the immune system deficiency
they are held to.
(CROSSTALK)
MIZRAHI: Not only -- sorry?
ANDERSON: You have stressed that, the longer that the hostages -- you've stressed that the longer that these hostages are kept in Gaza, of course,
the more dire their conditions become.
The prime minister, Benjamin Netanyahu, has proposed new conditions on this ceasefire and hostage deal, ones that were not included in initial
negotiations. He's blocked the transfer of much needed humanitarian aid. He's being accused of scuttling the deal and putting the hostages at risk,
those who have survived this.
What do you make of these decisions and the impact that they will have on those hostages who are still alive in Gaza?
MIZRAHI: Well, as you know, I'm merely a doctor. And what I've been seeing during the last weeks are quite a lot of trucks going into Gaza with
supply, both food as well as other supplements. And what I'm aiming is, at least for the Red Cross, to do the effort and to make Hamas bring those
hostages enough water, clean water.
[10:55:00]
Take care of the diet and give them appropriate medical treatment. I think those are only basic needs. And I do believe that the Red Cross can do the
effort and can make Hamas and other terrorist organizations supply those basic needs.
ANDERSON: Yes, right.
Just on your point about the ICRC, we've pressed the ICRC a number of times. They say both sides have to be in agreement. Otherwise, they are
denied access to those hostages. And they have continued to press that point home. So I just -- I'm just putting it to you briefly, with just if
you -- just get your response on that.
MIZRAHI: Well, I'm not really into the details of the ICRC and the Israeli and the Hamas negotiations. I'm worried because the people over there are
not getting enough vitamins. We have witnessed vitamin C deficiency with the returnees who came back to Israel, which means scurvy. Scurvy is a
disease.
(CROSSTALK)
MIZRAHI: That nearly vanished from Earth. So supplements and vitamins are needed.
ANDERSON: Understood.
MIZRAHI: I think it's very, very, you know, low, low basic needs that should be --
ANDERSON: Understood.
MIZRAHI: Yes.
ANDERSON: I'm -- I've got to get to the end of this show. I thank you for joining us. Thank you.
This is CONNECT THE WORLD. Do stay with CNN. "NEWSROOM" is up next.
END
