hello, welcome to the show. i'm seeing beardsley in berlin is good to have you with us. inflation will weigh more heavily on european output next year than had been expected. the u commission lowering its growth forecast today by almost a full percentage points of brussels now protecting g d p growth of 1.5 percent next year. that's down from a spring estimate of 2.3 percent of behind the change is higher than expected price growth. the you now says inflation driven by storing energy costs. as a consequence of the warren, ukraine will be considerably higher than expected this year, as was next year. right. enjoy now by dw brussels correspond marina strauss and also by maria de meritus. she's the interim director of the brutal think tank and brussels. welcome to you both, maria, i want to start with you were talking about lower growth as well as ramp at inflation. isn't that a dangerous mix for some you members? how concerned should we be? it isn't it? again,

just makes it very awkward position to gain where policies that are policymakers have to take and decisions they have to make will actually be pulling over the directions. but that's the reality. we are having inflation that is coming in finally from to begin with from energy prices. unless we, we solve the energy crisis. that problem will not be able to manage inflation. and if we don't manage inflation, that it will be very difficult to sort of the other problems that come with it. marina inflation, projections have been lifted from what they were in the spring. what have rising cost meant for european countries living in europe, it has become one of the top ag people talk most about maybe even the most dominating topic here. and russel's definitely now we're still in european summer, but people are already worried about the winter. if they will make, or if they will be able to make ends meet, if they will be able to pay for their energy bills. and of course it's those people who are already have difficult difficulties to pay their bills, who are worried most. and it's not only energy, it's food prices, it's building

a house that got more expensive. and some e o leaders fear social unrest if people are not able to pay their bills any longer . or we've seen that in the past. maria, i want to go back to you. marina just mentioned that the food prices that we've seen and yet, commodities, prices such as oil and wheat are actually expected to settle further in the coming weeks and months to what extent will that help when it would suddenly help her. but we don't want to see any more price increases on the food side. of course you have doesn't have a shortage problem, but you know, compare that to the rest of the world. and then we have very much bigger problems to solve of prices. i think that would really help in terms of easing the difficult decisions we have to make. as marina said, there are some very tough decisions that need to be made in the next winter. how are we going to meet on energy demands? and the one thing we do know is that we will not make the winter without necessarily reducing the demand for energy. so all of us, all consumers will and,

and of course, the industry has to make an effort to reduce the demand for the moment. we are subsidizing the because the households in terms of financing that energy bills. this is course important as you may, as you may understand for the product of your households. but it also means that they're not reducing demand. we need to very quickly change policy attack here we need to find ways of subsidizing those and actually reduce the demand for energy. because if we don't do that, we will not meet the energy demands. very tough times ahead, but it's absolutely essential that the politicians not communicate to the public that without an important effort to reduce energy demands, we will not make it through the winter. so much of that based on natural gas and the availability of natural gas, the energy crunch. marina, can we say, what is the outlook for gas right now amongst, within the e u. murray, i mentioned that you, governments are extremely worried that russia will cut off gas completely by the

winter. and of course, governments are preparing for this scenario that you commission, the executive round, will, per, per percent, a venture preparedness then that's what they call it next week. and we don't know yet exactly what it will look like, but it's likely that will, for example, urge you countries and to, to, to prepare for, to, to help to cut gas demands for, for, for companies, for example, by national companies to cut their gas demands performed by giving them compensations, for example, as a to use the state age to encourage industries and power plants to switch to other energy supplies and also to roll out information campaigns for consumers. so they use less energy for cooling in the winter, and also for a heating and cooling the summer and for heating in the winter of course. but in the worst case scenario, we will see that limits gas limits or could be imposed 1st on companies,

but also in the last resort as a last resort. also consumers, all right, there was dw corresponding bosses. marina strauser and maria de merits was joining us from the brutal thing. take. welcome or thank you to both. thank you to both of you. what inflation is hitting the hungarian government hard especially its budget . now the right wing government is using its parliamentary, super majority. majority to pass a law aimed at drumming up tax revenues. but it's not a popular idea. large crowds gather in front of the parliament building in budapest, many of them owners of small businesses. they're infuriated by the government's new tax measures, scrapping a popular scheme that let's freelancer's, small businesses and contractors, pale, low, flat tax rate. laudable, get those other ones are quoted me sagal. many people are being affected by this model. the many people are being pushed into poverty. forget that goes the shock.

if people don't stand up for themselves, his method, if they don't come out to protest, more than the government can feed anything to us, let as it were already sinking. we cannot let this happen, that project management had them. an estimated half a 1000000 workers fall into this tax bracket. some marchers say the law could force them to evade tax just to make ends meet. in the, if i remain an entrepreneur, i would start each month with about $600.00 euros. i won't stay one, i'll go into the black market, didn't work without registering. my activity will pay for the minimum social security or i'll grab my suitcase and we'll go to the nearest normal country and probably many people do the same. and so both hide me, the government here, worries about losing revenue as inflation sores. but free lancers and small businesses are determined to show their power in numbers or europe is struggling to

contain inflation, but prices are continuing to soar in the us as well. and at record pace fresh data showing us inflation rising more than expected. at 9 point, one percent in june is the highest year over year increase since 1981 thriving the hike. the rising cost of fuel housing and food consumers are feeling the pinch. take a listen to our correspondent in new york, people in the lower income bracket that is starting to struggle um quite a bit. and if you look at the costs for it, pretty much all the essentials are going up. but if you look at housing, if you look at food, if you look at transportation and that trend might actually stay for a little a little while. so you're here as stories from people buying a smaller sizes, buying less, said are basically living from one day to another. so those are high prices, definitely have it. all right, those dw correspondent in new york,

yann's quarter of an asia. now the indian rupees, is that an all time low against the u. s. dollar, and the indian government is concerned? now officials are introducing a measure that they hope with a shine back in the home currency. in a newly unveiled ruby settlement system for international trade. and you want payments and invoices for imports and exports to be made in their local currency. the order takes immediate effect. it's also expected to reduce trade friction between india and russia. a bilateral trade between those 2 nations has already been increasing. last year, russia was the source of less than one percent of total oil imported by india. by back, by may of this year, that figure had jumped to 10 percent. and that's turned russia into india's 2nd largest oil supplier. in the hopes its efforts to conduct more business in rupees will boost the currencies, popularity internationally. i let's go now to charo car to gay. he's our deli correspondent, char, break this down force. why exactly does india?

why is it making this move now? well steven, either a primer for see when it's when, when, when reads about there's that sounds like india is going to do all it's international trade in the indian robina, but that's not what it is about. while the government or the r b, i has not mentioned specifically any fees or any cases. what most expos out of the opinion here is that this move is aimed at russia and sri lanka. no. so long as we all know is going to a massive economic crisis, a massive foreign exchange prices. so this is aimed at the doing trade, richland guide, facilitating trade, mitchell and guy in the indian rookie and then with russia. now, as you rightly said, in the immortal russian group as been going up, apart from that, we've been buying other stuff as well and no gold imports. i'd also like you to go up. we've been buying 40 leases as well. so this of this move appears to be, to help out a russia and sri lanka. it will enable the companies to open the indian thanks

special accounts called postal banks. and that's how these are transactions will help. steven, right? it will be correspond to char carter k in delhi. thank you very much. was we mentioned earlier in the show soaring prices have given europe more incentive than ever to be as efficient as possible with energy. a new innovation in the netherlands could add another piece of the puzzle, storing residual heat and salt. take a look to ingredients, water and a secret type of table salt. play a big role in this chemistry lesson. both salt and water are the key to an amazingly simple energy storage technology. lot of intake on the south. the reaction of water mixing with sold generates heat. it's so warm that you can even touch it. what's important is that i've stored energy into sold without any losses . law, which i can now retrieve by adding water on the energy, we've like,

love comb. it to 12 years of research discovered this effect, physicists, olaf, adon, spent a long time experimenting to make his raw material salt react efficiently. the south have in the salt here in the system is in a large container with the small compartments for which error can flow. jorge over the air is moist or dry, depending on whether you want to generate or store heat. is the salt battery, the future of energy storage? the prototype is in the final testing phase. the european union is supporting the pilot project with 7000000 euros. a don, thanks. half of all dutch households could use the residual heat in the fall. the 1st houses in eindhoven will be connected and heated with salt batteries. only then will we see if this really is a hot, new technology. and his reminder of our top business story. the

e u commission has lowered his growth forecast today by almost a full percentage point. russel's now protecting g d p growth of 1.5 percent next year. down from a spring estimate of 2.3 percent behind that change is higher than expected price growth. that's our show. thanks for watching. ah ah, with ah,

the water came at night last summer, a terrible flood devastated the oro valley little was left standing. what does the region look like today? and how a residence dealing with the focus on europe in 30 minutes on d w. ah, we're all good to go beyond deal with as we take on the world 8 hours, i do all the things we're all about. the stories that matter to you

i police my follow with here we are, your is actually on fire made for mine. will you become a criminal? i think i may all ready news with hackers, paralyzing between your societies. computers that i showed you and governments that go crazy for your data. we explain how these technologies work, how they can go in for and how they can also go terribly. watch it now on youtube.

ah ah, this is the w use life from berlin. a pledge from the united states and israel on iran, you as president joe biden and is my, the prime minister at yahoo dot pete sign is security packed, promising to do whatever it takes to prevent t, ron from developing nuclear weapons. like to say that you waste won't white forever for iran to agree to a nuclear deal. russia strike central ukraine. at least 20 people killed off the miss house hit the city of unit so far from the front lines in the east and south of the contract for that grown.