challenge. that story is coming up in business with ana humphrey what else will you be covering we'll be taking a look at the russian pension reform a lot of people in the country don't like all the attention is fixated closely on the wall come all of that coming up in around one minutes time x. washington. so this is the view from my seat in the horn section. sarah with knows her start. this. is going to be the most incredible. and conductors. and she shows just how diverse classical music can be in their. sorrows music contemporary classical. d.w. .

and on demand. language courses. video or you know. anytime anywhere. w. media center. at the. ease the e.u. strong enough to win a trade war with the united states that's the question we're asking as a need aside blinks following tit for tat units of measure also coming up. trumps turns his back on harley davidson and says his administration is working to bring other motorcycle companies to the united states. and they might be fixated on the world cup but it hasn't escaped the attention of many russians that the government's announced a pensioner for one. lots of people don't like you. this is your business update on

how to humphrey in berlin glad you could join me. german chancellor angela merkel says it is time for germany to try to a virt a trade war with the united states this after terrorists from washington met by e.u. levies of it so the next step potentially tariffs on vehicles made in europe a move which would hurt car exporting germany heart take a listen now to the chancellor speaking of parliament a deescalation in the trade brinkmanship. could it but right now we're witnessing something falter which we've always considered a constant namely the role of multilateral organizations we now have tariffs on a limb in human steel and we have a far more serious issue to levies be raised on cars imported to the u.s. because of the import with all and ladies and gentlemen some of this has the traits

of a trade conflict i'm not ready to call it anything else just yet but it's a lot but it is worth putting all our efforts into trying to defuse this conflict before it does become a war though of course both sides have to be involved in all of that something and that's really why that. what a warning there from chancellor merkel in her speech came as the european commission president headed to the u.s. for talks with washington the e.u. well has a lot to lose in a trade conflict with the united states which might be one compelling reason to stand together but the union also needs reform with some analysts saying that it in its current state is too weak to win a battle. so is the e.u. ineffectual and bogged down a visit to afghans might suggest otherwise after years of financial crisis greece with the e.u.'s help has turned a corner or so says european commissioner pm must give each. region.

each with its. own with its european. city to the euro. those european partners now have three other economic headaches to deal with first italy which is sitting on a mountain of debt some two point three trillion euros worth saving italy might prove an even tougher job than greece could this mean and atallah exit. then there's brics it britain is waving goodbye to the e.u. but what this will ultimately mean is anything but clear how much of a handle does brussels have on the situation and its costs. and last but not least donald trump he's threatening tariffs and the e.u. use value to strike back with levees on some two hundred fifty billion euros worth of u.s. exports joining forces against trump for the e.u.

that could be a show of solidarity and strength. and with me here in the studio now is may have vodka meet the director of the think tank open in europe but great to have you with us today now for weeks i think europe's been looking at berlin with a little bit of annoyance of course germany appearing to have its own introspective crisis there it seems to be that that crisis has been averted for now now potentially time to look for new reforms is the european union ready will those states pull together do you think. not even sure of germany is ready yet and i think this refugee crisis can drag on for months assuming the. we will have a good and stable government for the rest of the year. i'm not quite sure i mean there has been some agreement between america and michael the famous mazie back declaration where they agreed on a euro zone budget the european monetary fund but not on the specifics and then

also them there are many other eurozone member states who have their own interests and very different views i mean that is interesting you point today's other views the fact that some countries may not even be ready for example italy has got big issues to grapple with at the moment could we not potentially risking a two speed europe going on regarding reforms that might be a risk when it comes to the speed of reforms and the development of competitiveness and the debt situation but we can't have two speed europe in the sense of having two different kinds of rules you know this is this is a club and the rules should be the same for everyone and they should be they should be followed by a behavior one that's that's not something where the way can have deeper integration will lessen integration it has to be it has to be you know out for the

how to be european union so then what reforms are needed in your mind what worries you where are the biggest risks one of the biggest wrists and also pertains to italy is the doomed loop between banks. and government budgets so if there if these banks whole lots of government debt seven dead of their own country then once you have a banking crises and there's many non-performing loans in the talian banking system then this could lead to a national crisis that. we would have another bailout program perhaps for italy and italy might be too big to fail it points to the. attention new bailout program one of the ideas actually put forward by the french president and on the way back on and that matters in favor of is this european monetary fund to help countries in crisis could you imagine though a fund whereby it was the funds automatically release or we're going to go through

something arduous what each national parliament needs to say yes this country can have this money it is a big question also of national sovereignty and you know no taxation without representation and should the type for example the german government still have a say over tax payers money which is a constitutional issue and so it so that it really depends whether how this european monetary fund would then look like legally also in terms of volume and we now agreed on something like a euro zone budget right which could also help but the german government things you know in the area of thirty billion. dollars thinking more in bigger terms of three hundred or four hundred billion has a volume for special like you say a constitutional question one that certainly countries like germany think grappling with since even the greek financial crisis make a lot of older

a director of the think tank open in europe thank you. where u.s. president donald trump is lashed out at american motorcycle make a harley davidson trump says the administration is courting motorcycle companies that want to move to the united states off the harley davidson said it's moving some assembly overseas now harley davidson announced last week it's moving production of motorcycles sold in europe to facilities in india and brazil the company blamed the decision on tariffs imposed by the european union to retaliate for tariffs trump imposed on a host of a new products. well politicians on the tories to save a disappointing news for otherwise busy days in just the football world cup rolled around the russian government announced a sweeping pension reform pushing up the official retirement age but world cup will no world cup the reform is facing resistance. it's been

a long day and olga played minge of a needs a cup of tea after thirty years of working as a hospital doctor she was planning to retire next spring and just earn a bit on the site but now the fifty four year old fears there's little chance of that the russian government wants to gradually raise the age of retirement from sixty to sixty five for men from fifty five to sixty three for women. russia has an aging population and too few people paying into its pension pot the retirement system needs an overhaul. the government wants to modernize the country but needs to invest more in health and education as communication choices can seem a little in that doctor to announce the retirement reform at the start of the world cup hoping perhaps that the football tournament would distract people from its intentions that these two will be. the kremlin has otherwise kept quiet on the

issue president putin appears keen to distance himself from the reform law give russia be anything but trade unions and opposition politicians believe he's the one behind it all you know they've organized demonstrations and collected millions of signatures in protest. what's more there you. ordered the pension reform as a way of stealing our money or mark zelig who deserve called reform is making citizens poorer in which we will do everything to prevent these measures from being implemented on the most which is the means that. parliament has to give its approval before the reform can go ahead and not all members are in favor independent analysts also skeptical. reformist speaking as an economist such reforms are only necessary when you have strong economic growth youth or not enough workers. neither of which is the case. russia's economy is

sluggish and the country has a huge workforce and few businesses actively high older people so. having to welcome a few more use the bin ladens. because you know everything my generation has seen but hold out much hope. and if the reform is implemented it will stop people's trust in the russian government her. today with the wild right now has.

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