ah ah this is the w news live for the european central bank increases interest rates for the 1st time in 11 years, hoping to put the brakes on runaway inflation in the eurozone. and today's increase is just the stop also on the program, italy enters a new period of political uncertainty as prime minister mario drug resides inside the country, on course, for early election, the far right to party,

leading the poles, russia resumes gas deliveries to germany through the north stream one pipeline, but with vladimir putin said to be using energy as a weapon against a u. a block supplies remain vulnerable and more civilians are killed. russian forces shell ukraine, 2nd city. moscow says it's expanding its war aims in response to the delivery of western weapons to you. correct? ah, i'm so galle welcome to the program. the european central bank has raised its key interest rate, half of one percent. the 1st increase for 11 years to move aims to curb stubbornly high inflation in the euro zone, unless predicted a smaller increase with the bank expected to raise certain rates again in september,

you see be president christine, the god said the larger 1st step was made with the risk of inflation in mind, we expect inflation to remain undesirable high for some time owing to continued pressure from energy and food prices and pipeline pressures in the pricing chain. higher inflation pressures also stemming from the depreciation of the euro exchange rate. but looking further ahead in the absence of new disruptions, energy cost should stabilize christie plots, and 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 though, 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 him down. exactly what's gonna happen remains to be seen. ok, so we'll try it. and then we'll wait and say, 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 the, 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 per cent in june. so this is a lot of factors weighing on the economy, weighing our, posing arista economic growth, 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, a bit he raised too hard too quickly then it's very easy to trigger an economic recession. this is why the cb 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 though the one sort of silver bullet to, to save it. i'm the, the high cost of energy is one of the major factors weighing on the price of living right now. so the e, c v, unfortunately 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. now to italy, which is on course for early elections following the resignation of prime minister

matter of druggy. 3 parties in he is a government of national unity, had refused to back him with a confidence vote in parliament. the president has asked mister drago to remain imposed as can take a leader on lisa. his departure couldn't 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. 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 live, it really is of the right moment for a government crisis up, but that this should have been the mom to get back on her feet. so i think okay, not the moment to stop not beside it. let's hope everything goes well. the will always and the problem will be solved, delaware, i will not. i could echo either get it. i will be the political crisis begun 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 draggy 2nd resignation. after 2 more coalition parties broke

ranks brings 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 or journalist sema got her in rome, talk me through the problems it's italy's facing and why the timing of mr. joggers 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 with the 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, roger,

the 74 year old for my head to europe in central bank was seen as a pair of hands and experienced european 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 mix. trawn show 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 euro's 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 because of the, the democratic party was supporting the druggie. he said, all 3 of those parties are responsible for what has happened. and he says they know not what they've done. now he's talent, what broadly supporting the drug as well. but clearly now we're going to have

a situation where for a few months that good to 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 i 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 left 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 b. 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 bought 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 albini, a post e u. sanction and on when crimea with an axe and mister county from the 5 double when didn't want it's lead to said military 8 to ukraine. it's interesting to know 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 same a gutter in rome. and brussels correspondent jack pero told me how the

a you see many drug use resignation. well, 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 it 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 france president emmanuel, my crohn, 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 you 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 elections. 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 luigi demiris, the foreign minister suggesting that actually the sending of arms to russia will be more difficult if, as a kid 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 is sort of jostling. now that would potentially compete with the, with the center is parties in italy and could potentially throw up that far right. or prime minister. that would cause not just a headache, it wouldn't 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 jap, paris in brussels. and take a look at some or source making headlines around the world. there he was, president joe biden has tested positive for coven 19 the white house that he was experiencing very mild symptoms spokesperson added. the president would continue to carry out his duties and have started a course of the antiviral drug packs. love it. japanese media,

se the countries nuclear regulator is likely to approve a plan to dump irradiated water. the coolant from their fukushima nuclear power plant would drain into the pacific ocean a since a 2011 nuclear accident. their operator tapco has used the water to cool, melted to react to fuel longer in foreign minister pitter see archer is traveling to moscow to discuss buying more russian gas congress ruling fetus party said the move was to ensure the countries energy security. it comes as a european union works to end its reliance on russian gas following rushes, invasion of ukraine. russian gas flows through the north stream, one pipeline into germany have resumed falling maintenance work. there had been fears that moscow would keep the taps switched off in response to european sanctions over its invasion of the head of germany's energy regulator so that his country is still 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 if 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. when your crane says russian, shelling has killed 3 people and wounded nearly 20 others in its 2nd largest city hockey. a school in the city of color tours can you cranes don bass region was also destroyed. meanwhile, cave 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 authorities. russian missiles destroyed this building and several homes near by. the number of casualties was not immediately known as rescuer. as dug through the rubble in search of people possibly trapped in signed amid a relentless rush and 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 reader boomer guy

. you remember how it was, oh, i could not believe it to like you to when we were under the rubble or the will to live was there after all the border. so we took ourselves out with a homes were doing walked, 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. as the russia has criticized the west, saying moscow has no choice but to expand its war aims in ukraine. i met at the walker cuz of because the west pause, more remote long range weapons, such as high malls, in to ukraine, in an impotent rage. or in a desire to exacerbate the situation as much as possible to calais were supported

docs mean same geographical tasks of these special operation lecture will extend still further from a current long ago. certainly, should we support, but in an interview with d. w, a. germany's foreign minister on a lena bear bog dismiss to 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 m. so this time it's so because of the military support they are saying, but they have been attacking key if an occupancy 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. well, d, w correspondent, tanisha is in cave, asked her how russia's announcement of expanded war objectives had been received.

without much surprised phil because people here are really never had any doubts that russia's interested in a far more than to don't bus region. in fact, if you may remember that famous speech just before this food 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 doubt from the beginning of the rule that this is going to go further than did on bus region. they take the 2nd knowledge meant actually by kremlin in the name of the foreign minister lover of yesterday, as a form of propaganda, that he's actually aimed at the russia and population at the russian audience to find a form of justification. why in the world is russia is still a bonding ukraine and he's 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 on the way, all those weapons making a difference. certainly if you look at one specific u. s. weapon there, the high mos which for food, about a listen to report as 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 grain and government of course, are very much relieved about new weapons being announced that are coming at the same time yet some regrets, why didn't they come earlier and also some skepticism because this quite of our discrepancy between pledged weapons and weapons that arrive here. right. and a quick word about the you have the latest developments in the fighting funny we will hear much more about a town called snow vianza, which is the administrative center in the don units region. this is the town that russia lied to occupy because if they occupy us labianca, then they basically made, i had way in the don units region and they're able to probably take all of that reagan. so if you will hear more of a shelling around as labianca as you have heard today, clamor doors, 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 today or so on. a story had keith was hit at the 2nd largest city in ukraine. and this is exactly what people are really concerned about. these indiscriminate, charlie's not really knowing were, are you save, are you a safe to wake up the next day? thank you for dr. fisher in chief. a veteran politician rather will become a senior host, been sworn in israel anchors, new president. he faces the challenge of leaving the country out of its worst economic and political crisis since independence from britain. some process of say, the new leader is tainted by his association with the old regime. his immediate challenge is to convince sri lankan that he's fit for the job.

the crime a singer faces the task of leading the country out of its economic collapse and restoring order after months of mass protest. but many reluctance are skeptical. they see him as an ally of his predecessor, what the country need these up does it does, is them take a different, i mean, we want to get rid of this that up it, but edition. so that's what we are doing. so you'll have up, i'm going to reveal that we will not give up. you'll see, let's see what's gonna happen once a vibrant economy with a solid middle class tra, lanka is now suffering lengthy power blackouts. people spend days in line to buy fuel while stores shelves have run low of food and essential medicine. paper la struggling. they're going to have food. they're going to have garrison. they don't, i guess. they don't have the so they don't have a public anger over the hardships boiled over when tens of thousands of

protesters stormed the home of then president got to buy your pock sam, forcing him to step down that cleared the way for recommend cingus election. the 73 year old politician has failed in his previous to runs for the presidency. his assumption of power means he will serve out the rest of the presidential term until november 2024 and football. legendary german strike, a very sailor has died at the age of 85. he made his hamburg debut, i'd just 17, and remained a hugely popular figure with the clubs fans throughout his life. in a 20 year career at hamburg, he won a bond as legal title at german cochrane represented west germany at full world cups. it remind of our top story this our therapy in central bank has raised its interest rate for the 1st time in 11 years as it seeks

to control stubbornly high inflation in the eurozone. banks expected to raise rates again in september coming up next in news asia july because new president faces monumental challenges if he wants to invite the economy . skeptics fair, the veteran politician willing to offer more of the site and facility we'll have that story as more in d, w. news, asia in just a moment. and i'll be back to the top of the have a good with

who is the end of the pandemic? in site we show what it could look like. will return to normal. and we visit those who are finding it difficult. his success in our weekly coven,

19 special. in 60 minutes on dw. ah let us here. when i arrived here i slept with a sick of people in a room as a 9th fema. it was hard. i wish fear. i even got white hair is learning the gym and language head. yeah, i love this kids to me and they don't much to nikki, to and chat with you want to know their story in full migrant verified and reliable information for migrant india. a lead of contrasts of ambitions of inequality. 75 years ago, mahatma gandhi peacefully led the country to independence, full of ideals. and what is remained of his vision?

what's the status of human rights and social justice in what's called the world's largest democracy? willis, india ahead it is the pulpit tour unleash on violet bass. and re imagine these teachings for relevance to gandhi's legacy. stuart to august 6th on b. w. or today on d. w. 's asia, a new president for sri lanka. but can the people expect the same old patron politicians about it victory missing a is born in as then you've leader judges the either nation to come together to find a way out of its worst economic crisis in decades. but does he happy ear of protests? and has crisis written, sri lanka got itself into a death trap. some critics blamed china.