ah ah this is the double the news live from berlin and the european central bank increases interest rates for the 1st time in 11 years hoping to put the brakes on runaway inflation in the euro zone. and today's increase is just the beginning. we'll find out why more expensive mortgages could be a good thing. also on the program, italy enters

a new period of political uncertainty as prime minister, not our drug resides. it sets the country on course for an early election, but the far right party leading the poles, russia resumes, gas delivers to germany through the north street, one pipeline. but with florida may have to, tim said to be using energy as a weapon against the block. a you, the block supplies remain vulnerable and more civilians are killed as russian forces show ukraine. second city. moscow says it's expanding its war and in response to the delivery of western weapons to ukraine. ah, ah, i'm so gale. welcome to the program. the european central bank has raised its key interest rate, half of one percent to the 1st increase for 11 years. borrowing rates,

the u. s. and the eurozone began the year at similar levels. but the u. s. federal reserve raised its key rate 3 times since then. to try and tame stubbornly high inflation or the e. c. b kept it's rate steady unless we're expecting a smaller e. c. b increase from the banks expected to raise rates again in september, the cb president christine the god said the larger the 1st step was made with the risk of inflation in might we expect inflation to remain undesirable the high for some time, owing to continued pressure from energy and food prices and pipeline pressures in the pricing chain. higher inflation pressures are also stemming from the depreciation of the euro exchange rate. but looking further ahead, in the absence of new disruptions, energy cost should stabilize and supply bottlenecks should ease

christy thompson from d. w 's business departments can explain what all this means. welcome, christie. we know consumer prices in europe at any d, t around the world going through the roof. will this at rate increase? bring them down. yeah, i mean, as you just said, this is a historic decision they've taken now, 1st hike in 11 years. so on that level, it is a little bit unclear exactly what effect this gonna is going to have. it definitely will have an effect, of course, raising rates after such a long amount of time. now what we do know is that this means that borrowing is going to get more expensive for bank. so banks that want to take a loan out from the european central bank there. it's going to cost them or they're gonna pass those costs on the you on a me, anyone looking to get a loan for a house alone for a car, businesses as well, looking to take out loans, those interest rates make it more expensive for them right now. and the logic here is that there's a bit too much cash flowing around in the economy right now. pent up demand from the pandemic also. yeah. again, these cheaper loans, we've seen the last 11 years. i mean that that's pushing up prices. so the idea

here to some degree is to dis, incentivize a lot of that spending and hopefully cool awesome those prices and bring them down . exactly what's going happen remains to be seen. ok, so we'll try it. and then we'll wait and said, yeah, at the a c, b raise rights higher than they originally indicated. why? right? i mean, the situation has unfortunately gotten worse in the economy up here in the eurozone since they 1st announced that they would be raising rates last month. what's happened since then? there's been a whole debacle about nord stream one. this is one of the main gas pipelines coming in to europe. of course, the big questions about whether the russian gas will keep flowing through that pipeline. i am. so this is knocking on a sort of economic confidence. we've also seen that the euro fall to the same exchange rate with the dollar. normally the euro is above the dollar. so this again indicates pessimism about the european economy and inflation is also still, as you said, very high, nearly 9 percent in june. so this is

a lot factors weighing on the economy weighing are causing a risk economic growth that the c b had originally wanted to do a gradual rate increase after so long with, with a neutral even negative rates. but they just felt that the situation was so bad that they had to make a stronger and stronger move. right. and so it, the, the aim presumably to stop the eurozone from falling into recession. will this do that? yeah, i mean, it's a really great question. obviously, this is the whole point of what they're going for here. and what are we talking about when we talk about recession? we're of course talking about 2 consecutive quarters of negative economic growth. now the thing about raising interest rates is that it's a very delicate balance. but if you raise to hard to quickly, then it's very easy to trigger an economic recession. this is why the c b had been so reluctant, many people had said they should have acted months ago, just like the federal reserve in the u. s. did they started raising rates earlier this year? but yeah, i mean, there's so many different factors weighing on the economy right now that raising

interest rates is not necessarily going to be the, the one sort of silver bullet to, to save it. and the, the high cost of energy is $1.00 of the major factors weighing on the price of living right now. so it easy, unfortunate doesn't have any control over that. a lot of economists are saying it's more of a question of, of when and not if ok, christie plots, and from dw business. thank you. thanks. italy is on course for early elections following the resignation of prime minister matter. druggie 3 parties in he's a government of national unity had refused to back him at a confidence vote in parliament. the president has asked mister, draw you to remain in post as caretaker, leader on this say. his departure could not have come at a worse time for italy and for europe drank his trip to the presidential palace to submit his 2nd resignation within a week. may have launched yet another phase of turmoil and italian politics. he was originally appointed to the role of prime minister to help italy recover from the

impact of coven get a grip on a spluttering economy and implement economic reforms. those issues have not gone away. and if anything have become more pressing, his resignation has left many italians worried about the future. oh, and how much a delicate moment yet, i think it was a reckless move, not to bear in mind. everything that is happening globally with the war and the ongoing pandemic thought by with a link. it really is of the right moment for a government crisis up, but then this should have been the mom to get back on her feet. so i think, okay, not the moment to stop beside it. let's hope everything goes well. the lowest and the problem will be solved, delaware. i'm gonna, i could echo either good or windy. the political crisis began

a week ago when one of the parties and drag is coalition government refused to back an economic package that prompted him to tender his resignation. for the 1st time, italy's president asked him to stay on and to try and form a stable government, drag his 2nd resignation. after 2 more coalition parties broke ranks, rings the curtain down on that effort. he's been asked to remain in office in a caretaker role. and election is likely to be brought forward to the awesome. for now, the man dub super mariel will lead the government until a new prime minister is chosen. a jealous seaman got to in row, talk me through the problems italy's facing a why? the timing of mr. a drug is resignation is so bad. absolutely, i mean it couldn't come at a worse time. and really, i mean if there's one certainty in the chaos, is that there will be

a period of political uncertainty as a result of this resignation. and what will follow, and as you mentioned, a severe drought with these high temperatures, that we can easily energy prices that are soaring in place should. that's really at an old time high dealing with the war in ukraine, all having to be dealt with in a different way simply because of political infighting. mario drive the 74 year old for my head to europe in central bank was seen as a pair of hands and experienced europe leader to lead italy in these tough times. and now it calls into question various things, including those reforms that were necessary not to get that next tranche of european postpone demi recovery fund money and also looking at an alternative sources of energy and italy try to move away from its reliance on russian energy. now this is the years don't the largest economy, so instability here is old. so instability for the region as

a whole. now as the leader of the center left democratic party said, and because of the, the democratic party was supporting the drug. he said, all 3 of those policies are responsible for what has happened. and he says they know not what they've done. now, talent, what broadly supporting the druggie as well. but clearly now we're going to have a situation where for a few months there could be no functioning government here in italy. but we did see that mr. martha rella all is anytime. so these meets going to be meeting the speakers of both houses of parliament. and it's like you said that there will be fresh election. so as the jostling starts and had the most likely fresh elections, who should we be looking out for? well the most recent polls say that the brothers of italy, a far right party, led by georgia maloney is essentially neck and leg with the center less democratic party. and the thing is the brothers obesity had long been allied with the right

wing conservative parties that is the 4 se talia led by former prime minister berlusconi as well as the lead party. the far right, the party led by my p o l. d. so that could suggest that essentially be this coalition of right wing parties will prevail at the end of an election. now georgia, maloney, perhaps the 1st female prime minister. could that be a possibility for italy? mister miss maloney, for her part has been very triumphant with this suggestion of possible election saying that the will of the people will be expressed by voting. now it's interesting to note that these 3 parties that did not that, that so this result of a resignation of mr. druggie. all the 3 parties that missed the drug. you want it to be a part of the coalition. they were in the past, very much allied with vladimir putin. i mean mister bell is scone for his spot vacation to the former with the russian leader. mister v neopost

e u. sanction in on, when crimea with an axe and mister county from the fight double. when didn't want it's lead to said military a to ukraine. it's interesting to note that that is very much in contrast with mister drug was very much in support of the ukrainians in that bull. thank you for that. seem a gutter in rome. now brussels correspondent jack pero told me how the use seize mister jackie's resignation. while it's it will be a huge headache to see a leader change. i think it's safe to say that here in brussels and indeed across the capitals of the european union, mario draggy is an extremely popular figure. firstly, because he's come across a stable. secondly, because not only has he towed the e u line country to many of his predecessors, he's actually advanced in greatly participated in a lot mainly because of his history as the president of the european central bank. he understands europe. he knows how it works. he knows either you works and also

he's extremely pro european, i think the broad support that he has actually felt in italy and continues to feel has extended here in brussels. we saw, for instance, him attending that visit to keep alongside jolla shows the german chancellor and french president emanuel micron. he's been extremely strong on support the ukraine . in fact, he was one of the 1st leaders to really come out strongly at and suggest that ukraine should be allowed a quick entry into the european union and application processes and accession country. and we already know now they have been granted that position to be an e n e e. accession countries. a lot of that is gonna going to change. now i think we just heard from sima some of the likely a jostling i had a new election. might me a change of direction for italy when it comes to european policy on ukraine and russia? yes, it is. certainly, for instance,

we've already heard from the luigi demiris, the foreign minister suggesting that actually the sending of arms to russia will be more difficult if as a k can take a government important decisions that italy will need to make on things like energy, specifically gas. we have a proposal yesterday from the european commission that you country should off their citizens to reduce gas consumption, that these things will not be able to move forward in the auspices of a caretaker government. and it would be until probably early autumn with we're hearing before there would be a new election, but probably perhaps even more feared in brussels than a caretaker. government would be a far right government under, under the far right parties that, that a sort of jostling night that would potentially compete with the, with the center as parties in italy and could potentially throw up that far right. or prime minister. that would cause not just a headache, it would be a small you country, it would be the 3rd largest economy with the far right government and that, that's something here in brussels. they will be there were very concerned about

phil. thank of the judge at paris in brussels. let's take a look at some more stores making headlines around the world. you as president jo biden's tested positive for coven 90? the white i said he is experiencing very mild symptoms. spokesperson addie that the president would continue to carry out his duties and have started a course with the antiviral drug packs of it slang has 6 time prime minister, but it will become a single has become the country's new president. he was sworn in as a ceremony in the capital, colombo after lawmakers elected him the previous day. imagine politicians are controversial choice because of his closeness to the out. the previous president, japanese media reporting that the country's nuclear regulator is likely to approve a plan to dump it radiated water. the coolant from the fukushima nuclear plant would drain into the pacific ocean. since the 2011 nuclear crisis operator tapco

has used the water to cool melted reactor fuel on gary and a foreign minister peter c. otto's traveling to moscow to discuss buying more russian gas. hunger is a ruling fetus party said the movers to insure the country's energy security. it comes as the european union works to end its reliance on russian gas after russia's invasion of ukraine. russian gas flows through the nord stream, one the pipeline into germany have resumed following maintenance work. there had been fears at moscow would keep the taps switched off in response to european sanctions over its invasion of ukraine. despite this, the head of germany's federal network agency regulator, close molar, said his country remained at russia's mercy. berlin is now scrambling to diversify its energy sources. the flow of gas has restarted through the biggest pipeline carrying russian gas to germany. north stream one had been out of action for routine maintenance, many in berlin were concerned,

russia wouldn't turn it back on. germany relies on russia for around a 3rd of its gas imports. for now, the nightmare scenario as it was described seems to have been avoided. but concerns remain, experts say germany should be doing more to reduce its dependence. the, like i said, elicitation is urgent. aha, who should have been making savings from day one and february? we lost valuable months. it's important to re adjust this now for citizens are being urged to save energy. experts also say germany should look for alternative sources, philip storage facilities and expand renewables. berlin has been scrambling to set some of these measures in motion. it has reduced its dependence on russian gas. the government has also given the go ahead for l n. g terminals to be built. and by mid july, germany had raised its gas storage levels to 65 percent. more however, needs to be saved. and they have also been setbacks,

especially for japanese climate goals. the government has decided to leave. it's called plants running longer than planned. nuclear power might also be back on the table. and more coordination efforts, especially among you partners, could be needed. this could for instance, mean that you know, there is a clear decision taking that ok, we're going to prioritize the supply of a gas for heating houses in slovakia. what that means, we need to turn down or ration the supply or say that it will be so that's the kind of thing that can only be coordinated for the you. solidarity agreements would avoid lengthy negotiations in cases of emergency sticking together will be important in europe in order to stay warm in winter. a russian selling has killed 2 people and wounded nearly 20 others in ukraine,

2nd largest city hockey school in the city of trauma, tor skin, ukraine's don't bathroom, was also destroyed. meanwhile, keith is training soldiers to use new longer range weapons, arriving from the west, which russia says is forcing it to widen it's offensive. this is all that remains of his school in the ukrainian city of crime authors. russian missiles destroyed this building, and several homes near by the number of casualties was not immediately known as rescuer as dunk through the rubble in search of people possibly trapped inside. amid relentless russians, shelling regional officials and eastern and southern ukraine have been urging civilians to evacuate. but that is not an easy option for the elderly or frail. rumor guy, you remember? oh, good. oh, i could not believe it. super cute when we were under the rubble, the will to live was there after all the border. so we took ourselves out with the hums, were doing what else could we do elsewhere in ukraine,

the military is training its soldiers to use new weapons. currently arriving from the west, key of hopes that the new anti tank rocket launchers and mortars will change the tide of the war in their favor. earlier, washington announced it was sending even more longer range arms to ukraine. of the russia has criticized the west saying moscow has no choice but to expand its war aims in ukraine. you committed the walker, cause of causes west pause, more remote long range weapons, such as high miles into ukraine in an impotent rage, or in a desire to exacerbate the situation as much as possible to claim a super did not mean same geographical tasks. of these special operations will extend still further from a current law in regards certainly, should we support. but in an interview with d. w, a. germany's foreign minister on the line of bear,

bog dismissed russia's argument that it's being forced to widen is offensive in ukraine. because of western weapons deliveries, defend russia as using every time a different argument. um, so this time it's so because of the military support they are saying, but they have been attacking key if and not a pod of ukraine before. so it's just a new propaganda from the russian side. meanwhile, russian forces continue to his civilian targets. not only on the front lines, but in cities and towns throughout ukraine. will they w correspondent for the for shaw is in cave asked her how this russian announcement of expanded war objectives had been received. he don't much surprised phil because people here are really never had any doubts that russia is interested in a far more than to don bas region. in fact, if you may remember that famous speech josby fool, these fools can evasion, began on february 24th. that speech by vladimir putin before the war began saying

that ukraine really doesn't have a right to exist. so people here had no doubts from the beginning of the vall, that this is going to go further than to don't bus region. they take this acknowledgement actually by kremlin in the name of the 4 minutes the lover of yesterday, as a form of propaganda, that he's actually aimed at the russia and population of the russian audience to find a form of justification. why in the world is russia is still a bonding ukraine and is engaged in this war entering it's 6 months. however, of course you will find people here and keep region keep. see the very, i'm right now that a worried because they do not know beyond those remarks, what is the playbook that is there? what kind of other escalation is to be expected with regards to the progress of this war, right? and the b u. s. and you kind of said that more heavy weapons are on the way, all those weapons making a difference. certainly if you look at one specific u. s. weapon there,

the high mall, which with food about a listen to report does long range missile systems. now they do have the capacity to be quite precise. in fact, we have here via been hearing reports about a bridge in house and region of being a destroyed by ukraine and forces with the help of high morse. a long range missile system to definitely helps to gain momentum here for ukrainian forces and to slow down a little bit of a rush, an offensive there. but at the same time, you one, the other then slowing down. what can be seen when he comes to ukraine trying to start the counter offends if they haven't seen much of that. and of course you also hear people saying, why didn't the west send those weapons much earlier? because then it wouldn't be the case that about one 5th of ukraine is already occupied by russian forces in a way people, ukraine and the ukraine. and government of course, are very much relieved about new weapons being announced that are coming at the

same time. yeah, some regrets, why didn't they come earlier and also some skepticism because it's quite of a discrepancy between pledged weapons and weapons that arrive here. right. and a quick word about the you have the latest developments in the facing funny we will hear much more about the town called silvia landscape, which is the administrative center in the donna screech. and this is as the town that russia live to occupy because if they occupy us lobby anston, they basically made, i had way in the don. yes region. and they're able to probably take all of that region so, so you will hear more of a shelling around us labianca as you've heard today, clamor tours, one of the schools being destroyed, they are, even though russia claims it wasn't a school, but a weapon depot. and of course, unfortunately more indiscriminate shelling already again to day or so on. authorities had keith was hit of the 2nd largest city in ukraine. and this is exactly what people are really concerned about. these indiscriminate challenge,

not really knowing were, are you safe? are you a safe to wake up the next day? thank you for that. are fun official in keith at the world athletics championships in oregon, china's a fang been house one a surprise gold in the disco speaking, american olympic champion, valerie almon, in her own back yard. there was also successful runner who this year switched her allegiance from kenya to catholic sta. china's thing been was on the 17th at last. she is tokyo olympics. when the world championships, she did this, an opening throw of 69.12 meters was a personal best. even with the raucous support of an american home crowd, olympic champion valerie almon, could not compete with fang the chinese discus fro a could barely believe it. she is already being fated back home.

oh milk. i say no, yes, i didn't imagine i could do that because the other competitors were so strong. i just wanted to try my bashed talk before you be over in the women steeplechase, nor roger brutal when gold in a championship record. with the 3rd fastest time ever. he was competing for cas extend this year. having previously been registered as a canyon runner. he kissed the ground in oregon and then looked up to the heavens. oh, and then he is in my december 2nd i with these country people say, welcome jose, william, didn't you? and i am at the biblical cell. here i am, it is

a day of surprising eugene, thanks to to root out and thing these will championship started last week and have been a slow burner without some of the major athletics names of old. but now the sport has some new stars. but since you're up to date, i'll have more world news or the top of be our coming up next on the w focus on your of the day. ah ah ah

ah ah ah ah ah, with who whoa, whoa! cuz so on the loose again in sardinia, a huge swarm has overrun until now north, how's fall? money of hard work destroy. it was just a few hours. the farmer is desperately looking for ways to deal with the locus.

play. one unfold, focus on europe. connect on d, w. o . man with the memories of a woman. ah, ali from syria is born in a female body. forced into marriage, great. far from home, ali can finally become the person. he's always wanted to be alone, despair badly. oh, in a 3 credit, then we'll go, i was born in berlin, starts july 22nd on d, w o. his goal is establishing and order changing pain, president of the global powered china. he's part of

a whole system which believes his time has come. he relies on an authoritarian system of total surveillance on economic expansion without scruples and again and again, she provokes and threatens with the military aggression the chinese president believes his way is for superior than that of western democracy. china's president, she ging paying starts july 30th on d, w a . mm. hello and welcome to focus on europe. thank you for joining us for this week's edition. let me begin by saying that i am really thankful this studio here is air conditioned because outside.