we are sure to see the agencies of legend some gloves and the stories of civilizations that marks history wants. this is where the story of vanity, how many stories to tell the hello i'm adrian said again, this is counting the cost on elders ariel. we see, look at the world of business and economics this week, they've long been the ears, powerhouses, but france and germany facing political,

economic to that. that's no trouble to the rest of europe. a record of $100000000000.00 replenishment of the world banks funds for the poorest nations. but is it enough? where is the bank failing the pool and the price of coffee is extremely high right now the highest of all this toughest century. why is the being so expensive and how does that affect the industry and us consumers, the fonts and germany have long been deemed the main acts as a pallet in new york in unity of the 2 nations made couple of his hoss of the euro's on economy driving the 27, been the blocks agenda, and it's g d p growth. but both now facing serious political and economic to him while it comes at a critical moment with us president elect donald trump reckoning terrace. as soon as he takes office in january, the european economy is already lagging behind the us in china, a political paralysis in france and germany could de rail it's competitive ness

even further. sorry, gill reports at once praised its being your, its engines of economic growth faced bronson, germany, a serious political crises last week, french prime minister, michelle bonnie, a loss to know confidence votes, impala me in the off the he pushed through an affair to budget by decrease a decision he vehemently defended plus the $60000000.00 an interest. that's what the french will have to pay every year. it's more than our budget for defense or higher education and it will be even higher tomorrow if we did not do anything. since bonnie a's resignation, president emmanuel mate crone has denied any responsibility for the events that i'm forwarded. some say his lack of accountability is contributions to the country instability, and also the developmental we today no longer have a government that is not on the french who are responsible, that he who governs us, who is responsible for the situation in focus. meanwhile,

neighboring germany space to simulate political problems and in even west economic situation, it's economy is predicted to grow by just moot point. 7 percent next year. on last month, the german chancellor removed the countries finance minister of the state school disagreements immeasurably yeah, they got involved in and then became more and more difficult to reach decisions. that's why it was right to end this government by firing finance, minister lender, thomas, germany in front of the power houses of the e u. together they may couple of myself. it's g d p. provide a 3rd of its total budgets. but analysts say the political instability could result in major changes for the blog would, we will see perhaps is kind of a shift of power within that. you can union, going to the eastern european parts to the eastern europeans, the states. so while germany and frauds may be regarded as the leaders of the block, it's clear that in the coming months they will both be distracted by that those

internal affairs. leaving the use economics each other on saucen. sorry, give out to sarah the counting, the cost. joining us not from brussels baton us by law who is the director and senior economist of the european sense of international political economy. good to have you with as much time as science. let's start with upfront then what's going wrong? why was bonnie a's budget so contentious? yeah, think um, bronze has spilt on too many uh, physical deficits in the past. uh. edu. look at the country from the brookside perspective. from the biggest johnson day is its oversized government. public spending accounts formulated 60 percent off to the p $60.00. 5. i turned in by one of the highest techs birds in europe. at the same time, many frenchmen, amongst them,

made business owners. they criticized that for them to be turned on. this enormous amount of government spending is on the roaming, including essential services like health care education, big infrastructure, but also paid off on employment, which is some of the highest in the you and they, you've unemployment rate of some 18 percent. also amongst the highest and euro, so by many emetrius problems, operates and it's operated for many years now as what i would describe a socialist economy with a dysfunctional stage. deeply embedded in pretty much every aspect of economic life . now, michelle bonnie and his government, they dared to attempt to address these issues. rightfully so. we've however, well tiffany motor rate is going to be for us. but even though these be forms with just as being a very tiny trouble, and increasingly what's, don't there,

what's politically resistance to whatever, to measures on the one hand, but also new texas, that's the way of these efforts. all right, let's move to germany, then it's economy expected to grow one percent next year. what's going wrong there was in germany. economy is still doing better to put it that way. let me stress that things still look good for germany. when you compare the country to cross. so generally, we made one of the most, at one economies off the rules. we selected by a strong and very diverse manufacturing sector and increasingly diverse services sector economy with high exports steel. and i would also say an old cage if you're a cabbage i read compared job, are you countries, especially frost. and yet my heart of country, i'm german by passport is know, also facing what i would describe, the crisis off this function of the go. busy and services plus high energy costs

less economic stagnation if you like. and that is also threatened by global developments. a continuous relative economic decline when you compare germany, but also operate you countries including for us to of a cost, okay, off the road. how, how will front some germany's economic problems impact the rest of the you could we see economic power shifting elsewhere within the you to what extent is that already happening? they obviously have a lot of economic power given that their industries are deeply intertwined in uh, you valued chase. uh so if their economies perform a weekly or increasingly that it will, of course also disrupt valued chase, ellsbury and euro as concerns the political power. very hard to say um i will not call uh it's a crisis. uh but it, it,

it wise is that we could be c in bronze and, and. busy so germany, i think it is normal, that's a government spray got there will be a new elections and so and so forth. but this will obviously have an impact on how both countries engage and then you repeat and console. um, so these countries as to where he'd be in the, in the driver's seat when it comes to e policy making and there are i work countries like told that it was the next concert presidency that mike wants to step in, but they still didn't know to fix their agenda for an a 4 you bullet and make it because just just briefly that you already left behind the us in china in terms of competitive knows with the present and select from the threatening to impose tariffs on on inputs from both china and the you, i mean, how is that going to exacerbate the problems of france and germany? you are right. there is this huge investment, technological and, you know,

produce being competitiveness get that has been rising for more than a decade now. and it's very, very difficult to address this gap. she's go said without meaningful structure. what will be. busy arms that however need to take place at the national level of in, do you remember stage? not so much of the you'd have a here, we need to talk about full text reform, signification of text or getting rid of subsidies that may go to a sectors that we would consider dysfunctional or unproductive. and this is a starting difference when you compare what is happening in the united states, where the economy is generally much less reliance on, on, uh, government spending, direct subsidies and a government that is not so much inclined to apply and do is just the approach you know kind of come on and control regulation that we see in launch. quads of new ups is mentioned in france,

but also increasing the germany because it's been great to talk to you on causing the cost manufacturing data being with us. yeah. right. com. thank you. a comic as a battery projects are under severe pressure as europe struggles to beat its 2035 deadline to end the production of combustion engines. the concept likes fall behind china, which dominates both battery production and electric vehicles. sales globally pull race reports now from sweden on how the confidence efforts to catch up with asia have sold. if you're going to test a new type of electric vehicle, the worst places to do it, then stop. the car is not king here, and the traffic is lights. sweden is also a focal point for europe's green transition. but the road to sustainable transport has been a bumpy on this car. it's the future of cars. it's $400.00 kilos. lights. it utilizes very small batteries. very small motors. the average electric car has 300 . keep also batteries inside this has 30 q as

a virus inside and batteries is the biggest problem. with the electric cars, a tiny call with a tiny battery could be one solution to a host of problems that beset the industry. the design is the best call are hoping they can help take the electric vehicle market in a new direction. as for additional manufacturers in europe had been struggling in germany, there's been industrial action of ford, which blinds cuts and that to europe in workforce partly on a lack of government health. the electric transition volkswagen is also being hit by strikes as it threatens factory closes for the 1st time and it's 87 year history . i'm able to approach mon escalation. we are prepared for both prophets of slumped to b. m. w, with a knock on effect for europe, spot tree making abilities swedish, brought to a joint north fault is the confidence great. hon is a home growing supplier, but the loss of a 2000000000 dollar contract with b and w has been just one problem to hit no fault on its way to bankruptcy in the us.

although it's still making batteries in sweden. china though it has an 85 percent share of global battery cell production. dana's transport company dfcs believes europe's failure to challenge that is hindering the electric transition, the trucks and fairies as well as cause the strong battery industry any year. it would mean for all the transport operators, of course, a kind of a security for what kind of technology they're going to invest in that to the future. so if you have these anxiety of batteries not being available in us, because that source from somewhere else and it was because we have to flights in constrains of political tensions. it is, of course, a bit of a risk in investing and electric trucks access to their right. batteries means chinese companies like gentlemen, you can offer cheaper calls in europe. postal, a chinese swedish brand increased at sales in a declining market this year. although you regulations could make like caught up for chinese may cuz well donald trump threats of tariffs may cause even bigger problems for the electric vehicle industry, when he becomes us president and january pull race out, is there

a stock car or eradicating poverty? is that the call of the world banks goals? yep. the financial institution says that it would take more than 3 decades to lift almost 700000000 people out of extreme poverty. that means anyone currently living on less than $2.15 a day, developing nations, pay to rec, or $1.00 trillion dollars to service the debt in 2023. and on top of that, many of struggling with climate disasters, inflation and conflicts. now donor countries have recently provided a lifeline pledging a record of $100000000000.00 replenishment of the world banks funds for the poor stations. the announcement was made last week in south korea as capital sold at a pledging conference for the international development association. the id a provides grants, a very low interest loans to $78.00 low income countries. and it happens once every 3 years, richer nations will contribute to 23700000000 directly to the id,

but the fund will use this money to borrow on financial markets. the one lock the targeted $100000000.00 in grants and loans through to mid 2028 among the band donors of the us, japan and several european nations including norway, spain and the u. k. the idea is the largest source of multilateral development finance for low income nations. since 1960, it is provided $533000000000.00 to $115.00 nations around $35.00 countries of graduated from the fund to become donors themselves, including china, south korea, julie jordan, and tuck yet. but one out of 3 idea nations is now poor. i thought it was before the start of the code at 19 pandemic. it late 2019 nations eligible to borrow from the funds pay to record $96200000000.00 to service the debt in 2023.

joining us not from gone is capital across. is they this wish to guarantee who's the president and ceo of the african center for economic transformation? good to have you with us made is what does securing money from dona nations actually mean in practice? as we heard the, the money is going to be used to borrow again in order to reach that $100000000000.00 marked at the will. bank says, but it's secure. that's right. that's right adrian, thank you very much for having me today. so i think what either of this country is actually concessional long term loans of boston. what countries in africa, countries in africa need little tim investments for structural change. so if you are going to borrow a full infrastructure investment, for example, for the cation, you really will not see the 10 for 20 to 30 years. so what you want to be able to do is access concessional finance, and that you will not be required to pay for

a long time. you'll never buy to pay. and so the re tens um you realize of it says i am your country. that's what makes i does such a pressure test results of full and not have low income countries. okay. $100000000.00. sounds a heck of a lot of money. but is it going to be enough to tackle the multiple crises, the developing nations, mainly in africa? facing right now the crushing depth of poverty. uh the, uh, dishonest is climate related disaster conflict. but it will contribute to it. so it's not enough. i mean, to be honest, when the process started, african governments and african institutions set a target from hundreds play to 1000000 a $122000000000.00 sarah as a minimum. so the $100000000000.00 is $20000000000.00 sure of the minimum target that we had before. so given the challenges that we're facing on the concept and

now it's not going to be not, we apparently spend a know on that service. and then we on the, you know, critical areas, my health education infrastructure development. and we typically meet this conversational finance. so the short answer is no, but a 100000000000 is better than nothing. all the world bank and other global financial institutions failing of the poorest nations who's to blame for the watering levels of debt. but many nations, the face of the moment, the global financial system, or perhaps domestic economic mismanagement. i think it's a mixture both to be honest with you. adrian. one of the things that we have seen at asset in our knowledge is, is that, you know, we have challenges around effective use of that. so some of the analysis that we

have done has shown that countries spent in as little as 10 percent in every dollar borrowed effectively and efficiently. so as high as a 100 percent. so we have a responsibility to ensure that we spend the money effectively. the 2nd issue is around the source of financing, and you know, when we borrowed on the capital markets you've had over and over again, but we have a row in, at a higher rate of interest. then a countries around the world rates in agencies to rates in as an advocate of countries at a higher risk than the rest of the well as a result. as a result, we have a higher rates of interest and so on. of these issues have compounded to add to the challenges we have on the confidence right now. but the fundamental challenge that i said keeps saying and keeps raising on the desk is that

development is not going to come from the outside. well, we need to take responsibility for our own development, which means that we have to invest in transforming our economies. we get very excited whenever we talk about roach. road is nothing that we need to transfer my economies. we need to stop the cost and dependence on robots. tv out for our main source of revenue. we need to address, i need to those 4 materials. we need to invest for life. we need to create, we need to, as for the create jobs, are optically where we use population. almost that is, i was on stability and college and then i went, pub med can contribute to it. however, if we don't take a strong leadership role in driving this edge and then,

you know, we're not going to see the progress that we wanted to see on the content. at the end of the day, every country will be looking out for your own interest. so i feel confident that we need to start by looking out a lot of interest, prioritize in our development, our people. then our voice will become a lot stronger on the global stage. maybe it has been really good to talk to your own content across manufacturing data being with us. thank you. i. it is one of the most traded commodities in the world. the month for coffee has been on the rise, but its prices also rocketed by almost 70 percent. the highest level since 1977 for coffee level as a morning comp is set to get very costly, but will that trickle down to farm us? we'll discuss that with our guest in just a moment, but 1st assembled around fancy reports from typically top in west of columbia. delete those steep mountains, coffee pickers are sifting through the plains. i didn't even brisk or paste these

days for making the most a record high global prices. the bigger profits being made from colombia sign, the rabbit beans are percolating into their pay packets. and is that the am i right now? we are getting $1700.00 faces per kilo. it's very good. i think it's just great. i've already left lot of these prices. i have to come back and take advantage of it . and so i'm up and i pick up by or it's an unexpected. and what has already been the good harvest. get a relief for a long time, farmer, orlando, by the after difficult years, the left of many producers drowning and dates back on the 2023 harvest was granted reduced by climate change and very low prices. and you are left hanging by a thread because we have to break the bank. you sell stuff to be back. that is and tried to remain in the business. and like the industrial heavily mechanized coffee

funds. another major producing countries like brazil, columbia rug it, the rain is maintained. the large network of small to medium family run finds the remaining dependent on intensive labor and are inherently fragile. the head of columbia as coffee, national federation, who represents more than half a 1000000 coffee producing families, says the price hike is a blue line must be made. and so far in the 1st 2 months, if it's close to the value of the harvest, increase to 108 percent, that means the 4th quarter, gd pay or we'll have coffee, us to protect most of the national economic to cover me well favorable weather conditions and high global prices brought a profitable season too many producers. many fear the gains will be short lived. the high cost of labor fertilizers and inflation means in margins will remain tight . and the high market volatility is driving, anxious farmers to sell quickly before prices drop again,

leading to some unexpected consequences. and there's a negative impact in terms of quality because quality goes on the back of it. and if the price suspended coffee is the same as the speciality coffee's been, why go through more demanding and expensive processes back at the farm? your lender says it's in taishan. short term gains are also trumping the urgent need to address long term issues like climate change, key in other pretty as theirs are buying land to a forest and protect water. dwindling sources. i think that's we need to keep our level of heading and feet on the ground is to be able to handle uncertain times. yes. so this will not last forever. and instead, we need to be very intelligent and skills to be able to sustain ourselves in the future. now, columbus farmers are savoring 2 days high prices, but with all the tile markets in certain climate, but literally in financial, they know the curren winful mean. last for long,

obviously we're gonna get the engines data for counting the costs that lead to as well joining us not for london. it's david, honestly, he's the chief climate and commodities economist of capital economics. good to have you with us that david, as we saw in that report, drawing coffee is getting hotter and more expensive. how much of the rise in prices will trickle back down to the farmers that we sold? that when will they be any better off? well, but potentially in the number one, but i think the key thing to stress is that the coffee supply chain is quite a no one. so there's a lot of people involved in getting coffee, things from the field to the cops. so i think it's typically coming from this, we're selling those coffee things to local buyers who are with then you get them instead of production or insect drug or markets. and typically that is causing problems. they've already paid once a year on the back of the holidays. so it will, does that starting on that condition, link this frame, revise and copy prices in global markets and what forms that i immediately and,

but it's process through style, but it's a long time you would expect us to trickle for a couple of a couple of years and all the rising costs and coffee production and coffee phonics solely to do with climate change orders or something else, but work here too. i mean, obviously there's lots of transportation costs involved in an agriculture and markets. there's a very strong relationship between i could come to prices, low prices and that all parties have been sold this year and we as a company, we expect them to continue to form over the coming years as and yeah, but the whole market is august, august. the 5, so i think kind of changes necessarily that the, the key thing presume causes up to copy markets. i'm yeah, no, no, i think actually when it comes to having the impacts of these costs onto the actual price of coffee, i mean, if you call the 2nd step because we're always not advising him for cost is not just something that coffee pictures isn't. that's the consent we have in recent years. obviously we're saying huge pressure on the supply chain costs across the

industrial, the got code to serve as well. i mean as to how that translates into the cost of the outputs. and i come through or industrial war depends on how companies react to visualizing costs, whether they, whether they have room or choose to observe these into that profit margins over the past and present to consumers. so. so what, what does that mean for consumers? people who love coffee like like you and i, the 1st mean will be paying a lot more for our coffee will lapse. reduce demand will high coffee. price has to be something, but all of us have to get used to i think so. i mean, if it's, i guess the coming told of his son that doesn't disruption we're seeing in the coffee market. and in recent months on the dr. pod went room video, there's really come on the back of a number of by rowing is. so yeah, so i was thinking about starting to turn around quickly, you know, copy stops, drive with you. oh, baby daughter. so yeah, i don't say 20 points is pulling sharply anytime soon. so those stops. so i

finished as to what that means to customers. i mean, the good news, the people are not that coffee fix is not the price of things is actually a relatively small part of the cost that you pay when you go to the coffee shop. typically around 5 to 10 percent. why don't you take into account the only the other costs coffee and shops have to pay 90 bucks and is your, your, to the sort of things. so even which thing called the process all over the past few months of march, the 245 to 10 percent on the cost of coffee. and as i mentioned, the facts, the coffee demands is not incredibly responsive to changes in price, i think. yeah. but what we're gonna say is people are going to have to pay them off a coffee bought paper, put the bu, i'm also company david, it's been great to talk to you on terms of the costs manufacturing paid for being with us. you know, can thank you. i'm that's all show for this week. if you'd like to comment on anything that you've seen, i'm at a finnegan on x. try to remember to use the hash tag a j c t c o. you could drop us

a line caution. the cost of our 0 don't net is our email address, as always is press email. if you on line up out of 0 dot com slash ctc, that takes you straight to a page and that you'll find individual reports. links at a time, additions to these account shopping. that's it for this edition accounting, the cost i made right instead of going from a team here though. huh, thanks for being with us. for news on al jazeera is next assigned to a for june of this. it was a hey from, from the war and shelter for civilians, refugees, web ex, got turned into the garden during cambodia as bloody civil stuff. flooring us up to here and suddenly we were turning the facts on the canal rouge had taken anything of value out of the hotel, cambodia. zip in no more hotels. oh no. just a level of non political power and diagnostic families often

intertwine for generations. did you, meghan family has let the countries, mary knight christians, through that fits or civil war, political maneuvering and killing which is 0 world, tells the story of their rise power and into wins living on political families. the jamalia is do this to, you know, to 0 the colleges here with the,

there's no limit to how a dream continue to study in your own event, you know, counter and the, the syrians tell alta zara about the mass graves duckling full days on the outskirts of damascus, the head of them carried johnston. this is alex is here in dallas from dough. so when the program is ready, will things hits homes that come out as well? in hospice and in northern gossen, the report from inside the hospitals intensive. can you ukraine says it's

assassinated, the russian general on the ation for can.