favorable exchange rates. now it's telling importers that they can settle contracts and rupees. and it'll make it take a 2nd. look at your table condiments a dutch researcher finds a way to store residual heat in salt below. welcome to the show. i'm seeing here the 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. a 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 it . inflation. isn't that a dangerous mix for some e members? how concerned should we be? it is indeed a dangerous makes us very awkward position to dana, where policies that are honest, make us have to take and decisions they have to make will actually pulling up 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 saw the energy crisis, that problem will not be able to manage inflation. and if we don't manage inflation, then it will be very difficult to sort of the 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 topic people talk most about maybe even the most dominating topic here. and russel's definitely now is 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. 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, compared to the rest of the world. and then we have very much bigger problems to solve for prices. i think that would really help in terms of easing the difficulty of the 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 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 u. murray, i mention it. you government 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 ground, 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 they will, for example, urge you countries and to try to prepare for to, to help to cut gas demands for, for, for companies, for example. but national companies to catch their gas demands performed by giving them compensations. for example, as the to use the state aid to encourage industry is the 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 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 the last resort. also consumers, all right, there was dw corresponding brussels. 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 missouri 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 lets freelancer's small businesses and contractors, pale low, flat tax rate law dabble get this as it was according me sagal. many people are being affected by this model. the many people are being pushed into poverty, vega, that goes the shock. if people don't stand up for themselves, his methods, if they don't come out to protest void, then the government can feed anything to us, let because we're already sinking. we cannot let this happen and forget the management of 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 remained an entrepreneur, i would start each month with about $600.00 euros. i won't stay one, i'll go into the black market, doesn'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 driving 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 is starting to struggle. i'm 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 a for a little

a little while. so you're here as stories from people buying a smaller sizes, buying less said to 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 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 carts. ok, he's our deli correspondent, char, break this down force. why exactly does india? why is it making this move now? well steven, a primer for see when it's when, when, when reads about there's that sounds like india is willing 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 countries or any cases what most expos out of the opinion here is that this move is the aim that russia and sri lanka know. 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, which will and 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 about 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 laces as well. so this, this move appears to be, to, to help out a russia and sri lanka will enable the companies to open accounts in thanks special accounts called postal banks. and that's how these are transactions will up. steven r i d w, 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 been to 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 . laugh which i can now retrieve by adding water on the energy we've like love comb . it took 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 soul tear in the system is in a large container with the small compartments for which error can flow or hey, thomas, before 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 thinks 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 her 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

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