or every meal is like a speech to the farm, to the tape, hundreds of excavations and restoration. this country is a place to slow down and enjoy the simple things coming to discover the natural, historical and cultural beauties. the hello, i'm adrian said again, this is counting the cost on al jazeera. you'll wish you 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 spelled trouble to the rest of europe. a wreck on $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 make up all was tough of the euros on economy. driving the 27 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 as being your it's engines of economic growth based bronson gemini, stay 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 alma crone has denied any responsibilities to be events that i'm folded some say, his lack of accountability is contributing to the country, instability, and also the novelty to go down. the more we today no longer have a government, it is not the french who are responsible, that he who governs us, who is responsible for the situation and focus. meanwhile, neighboring jeremy space has similar political problems and an even worse economic situation. it's economy is predicted to grow by just moot point, 7 percent next year. and last month, the german chancellor moved to the countries finance minister,

the space school disagreements assistant mash. yep. 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 following finance. when a certain under thomas, germany in front of the power houses of the e. u. together they may couple of myself. it's g d p and provide a thought of its total budgets. but analysts say the political instability could result in major changes for the blog. what we will see perhaps is kind of a shift of power within that you can union, going to the eastern european part, said to the eastern europeans, the states. so while germany and frauds may be regarded as the leaders of the blog, it's clear that in the coming months they will both be distracted by that food, internal affairs. leaving the use economics, a check on sausage, sorry, give out to 0, the counting, the cost. joining us not from brussels, the tie us by law,

who is the director and senior economist of the european center for international political economy. good to have you. but as much as i advised, let's start with upfront then what's going wrong? why was bonnie is budget so contentious? yeah, think um, bronze has spilt on too many uh, physical deficits in the past. uh you look at the country from the verbs i perspective from biggest johnson day is oversized government. public spending accounts for nearly 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 the clinic off unemployment,

which is some of the highest into you. and they use unemployment rate of some 18 percent also amongst the highest and euro. so by many a mattress from all the rates and it's operated for many years now as what i will 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 hisco reforms. but even though these reforms with just as being a very tiny trouble and increasingly what's don't, there was politically resistance to post charity 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 that

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 is 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 in old cage, if you're a cabbage i read compared to all right, you countries, especially frost. and yet my heart of the country i am driven by passport is also facing what i would describe the crisis off this function of the. busy and services plus high energy costs plus economic stagnation if you like. and that's also threatened by global developments. a continuous relative economic decline when you compare gemini, but also offer a you countries including for us to of

a cost ok off the road. how, how would in front of 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 always see half a lot of people know make power given that their industries are deeply intertwined in uh, you valued chase. uh, so if their economies perform a weekly or increasingly that will of course, also disrupt really change elsewhere in euro as concerns the political power. very hard to say. um, i want another call. uh, it's a crisis. uh but it, it, it wise is that we could be seen bronze and, uh, and also germany, i think it was 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 poland is the next comes of presidency that might want to step in, but they still didn't know if it's their agenda for, for you full. is it make it because just just briefly, the already likes behind the us in china, in terms of competitive knows with the president select from the threatening to impose terrace 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 addressed is gab to go said without meaningful structural reforms

that however need to take place at the national level of in the remember stage, not so much of the level. and here we need to talk about the gold tax reform signification of tax code, getting rid of subsidies that may go to a sectors that we would consider dysfunctional or on for this. and this is a start 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 increasingly in germany, my task it's been great to talk to you on content the cost manufacturing day for 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 full rates reports. now from sweeping 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 bump the want. this car is 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 started to q as a virus inside and batteries is the biggest problem. with electric cars, that's only the call with a tiny battery could be one solution to a host of problems such as 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 up b, m. w, with a knock on effect for europe, spot tree making abilities swedish, brought to a joint nor 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, danish transport company, dfcs believe europe's failure to challenge that is hindering the electric transition, the trucks and fairies as well as cause the strong battery industry in

a year. it wouldn't mean for all the transport operators, of course, economy, for security, for what kind of technology they're going to invest in the, to the future. so if you have the inside of batteries, not being available in us because that's the source from somewhere else. and it was because we have supplied in constrains of political tensions. it is, of course, a bit of a risk in investing and elected trucks access to their right. but trees means chinese companies like gentlemen, you can offer cheap because 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 in january pull, reese out, is there a stock car or eradicating poverty? is that the call of the world banks goals? yet the financial institution says that it would take more than 3 decades to lift almost 700000000 people out of extreme policy. 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 poorest ations. the announcement was made last week in south korea's capital sol at a pledging conference for the international development association. the idea provides grants a very low interest loans to $78.00 low income countries. and it happens once every 3 years, which of nations will contribute to 23700000000 directly to the id, but the fund will use this money to borrow on financial markets to one loc, the targeted one $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 multi level 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, to a jordan and took here. but one out of 3 idea nations is now poorer than it was before the start of the code at 19 pandemic. in 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 i do 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 for an infrastructure investment, for example, of the way to cation, you really will not see like 10 for 20 to 30 years. so what you want to be able to do is access concessional financing, that you will not be required to pay for a long time. you'll never buy to pay. and so the root tens um you realize of it says i am your country. that's what makes items such

a precious result of full and not have no 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, the disasters climate related disaster conflict. and so it will contribute to it. so it's not enough. i mean, to be honest, when the process started, african government and african institution set a target of 122000000. a 122000000000. sorry. i submitted a month. so it's a 100000000000. is $20000000000.00 sure of the minimum pocket that we had hoped for . so given the challenges that we are facing on the continent now, it's not going to be not we have currently spending know on that service. and then we on the, you know, critical areas. my health education infrastructure development,

and we intend to lead me this conversational finance. so the short answer is, no. a 100000000000 is better than nothing. all the world bank and all the global financial institutions failing the poorest nations who's to blame for the watering levels of debt. but many nations face up above the global financial system or perhaps domestic economic mismanagement. i think it's a mixture of both, to be honest with you, adrian. one of the things that we have seen at asset in our analysis 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. busy 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 this, i'll find that instead of, 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 an african 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 a keeps raising weight 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 transform. i call them is we need to stop the cost or dependence on well miss t mail for our main source of revenue. we need to add a, so i need to those 4 materials. we need to industrialize we need to create. we need to, as for the create a job for our optically where we use population. almost, that is our responsibility at college and manage our pod list 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 want to see on the content that's at the end of the day. every countries will be looking out for your own interest. so i feel confident that we need to start by looking out a lot of interest,

prioritizing our development, our people. then our voice will become a lot stronger on the global stage. maybe this has been really good still to your own content across many sites and data being with us. thank you. i. it is one of the most traded commodities in the world of the month. the coffee has been on the rise, but its price is 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 i'll assembled around pnc reports from finale top in west them, 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 crisis. the bigger profits being made from colombia signed the radical beans or percolating into their pay packets. and is that the am i right now?

we are getting 1700 paces. akila is very good. i think it's just great. i've already left some of these prices. i have to come back and take advantage of it. and so i'm up and i pick up by and 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 in their 2020 city harvest was granted reduced by climate change and very low prices and much 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. unlike the industrial heavily mechanized coffee funds, another major producing countries like for sales, 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 coffee, national federation, who represents more than half a 1000000 coffee producing families, says the price hike is a blue line, mostly middle, and so far in the 1st 2 months of this, close to the value of the harvest increased 108 percent, that means the 4th quarter, the cd pay or having coffee, plus the protecting us 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. do you think 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 inflation. short term gains are also trumping the urgent need to address long term issues like climate change. see another producers are buying land to a forest and protect water. dwindling sources. i think that's we need to keep our level of head 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 columbia farmers are saved, varying today's high prices, but with them all the time markets in certain climate, but literally in financial they know the current winful mean last for long. so i'm going to get the engines data for counting the costs that lead to as well. joining us not from london as david. obviously 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 long run, but i think the, the key thing to stress is that the coffee supply chain is quite a no one. so there's an, yeah, lots of people involved in getting coffee, things from the sale to the cops. so i think it's typically coming from this was so those couple of things to local buyers who would then you get them instead of production or insect drug or markets. and typically a large company farm is already paid once a year on the back to the harvest. so it will, it started in the mechanistic link between providing coffee prices in global markets. and what phone was that i immediately and but it's processed through style ready for 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 funding solely to do with climate change orders or something else of work here to. i mean,

obviously there's lots of transportation costs involved in an agriculture lock. it says a very strong relationship between i could come to price isn't low prices and that all parties have been sold this year. and we as a company, we expect them to continue to phone over the coming years as and yeah, that's the only a mock is august is a 5. so i think kind of changes necessarily that the, the key thing presume causes of food, coffee markets. i'm oh, yeah, no, no, i think casual, but when it comes to having the impacts of these costs on say, actual parts of coffee. i mean, if you kind of take a step because we're always not rising for cost is not just something that coffee produces a consent with embrace is what you were saying. huge pressure on the supply chain costs across the industrial, the got code for service. well, i mean as to how that translates into the cost of and outputs and come true 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. influence of consumers. so, so what, what does that mean for consumers? people who love coffee like like you and i does this mean will be paying a lot more for our coffee will lapse, reduce demand and will high coffee prices be something that all of us have to get used to? i think so. i mean if it's, i guess the company they go to this, so the, the, the, then the structures and the coffee market in recent months on the dr. pod went room 0. there's rudy come on after a number of i mean yeah, so yeah, so i was thinking about starting to turn around quickly. you know, coffee stop story for the oh baby daughter. so yeah, i don't say 20 points is pulling sharply any time soon. so those stop, so the finish as to what that means, the 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 product itself that i'd be the cost you most of march the 20 for 5 to 10 percent on the cost of the coffee. and as i mentioned, the, the facts, the coffee, huge amount is not incredibly responsive to changes in price, i think. yeah. but what we're going to say is people are going to have to pay more for coffee bought paper, put the bu, i'm also coffee, 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 h a c t c o, you could drop us a line cash and the cost of our 0 dot net is our e mail address. as always, there's plenty of, of you online at out of 0 dot com slash ctc. that takes you straight to a page, and then you'll find individual reports links at a time additions to these account shopping. that's it for this edition of counting

the cost. i'm a tree instead of going from a team here. and so how, thanks for being with us for news on alpha 0, is that the for examining the headlines? what they wanted to do, they wanted to leave the without health system unflinching the chair. and then there's a one side of a group of people who call themselves the research patriot and on the other side as well, and see races, processes sharing, posting stories with a global audience. what is the c life working on a rooftop? that's a single thanks to an abundance of well tough programming. vera unique, fascinating creatures. he found nowhere else on the, on our record numbers of chinese asylum seekers are traveling to the us. that's double many take a dangerous route through loss in america. a gang of people points to the color and the 1st of a 2 part investigation, 101 east meets the chinese,

my friends. risk commutable to the american dream on out to 0. out of the cold or weather sits in families a start their day of repairing their damage. 10 most people here have lost everything over the last year for now. this is home. it's very children of sick women was screaming everything became towing disruption, sickness and disease every week. we're sick and tired, stopped us. those who have managed to survive. these really attacks are now hoping to survive the winter. we left the most and survived the bombings we left off to the siege. but now the rain and cold killing us without proper shelter, people are vulnerable to infection and disease. we were affected by the rain. our children were soaked, our clothes gone when we have nothing to protect ourselves, just the tent and shoulders made of a plastic blankets and cardboard,

or the old protection from the wind and rain. the on the flow, this is in use our own algae 0. i'm for the black people live in doha, coming up in the next 60 minutes. dozens of people are injured in a new is really a talk on guys come out had one hospital. the last functioning health facility in the north. jordan says it will reopen. it's only border crossing with syria almost 2 weeks after it was goes for security reasons. castle after shots rattled.