a d, w, need for mines. ah, this is d, w. news live from berlin. the european central bank increases interest rates for the 1st time in 11 years, hoping to put the brakes on by the way, inflation in the euro zone in today's increase is just the start. also on the program, it leaves president dissolves parliament to paving the way for early elections. it follows the resignation of prime minister mario druggie, plunging the country into a period of instability and more civilians are killed,

as russian forces shall ukraine's the 2nd city. moscow says it's expanding its war aims in response to the delivery of western weapons to you, correct? ah, i'm fil gail. welcome to the program. the european central bank has raised its key interest rate, half of one percent the 1st to increase for 11 years. the move aims to curb stubbornly high inflation in the euro zone, unless predicted a smaller increase for the bank expected to raise the rates again in september e. c. b president christine le. god said the larger 1st step was made with the brisk of inflation in mind. 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 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. christie plaza 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. in 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 going 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, 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 tammy and inflation and is also still, as you said, very high, nearly 9 percent in june. so this is a lot of factors weighing on the economy way or 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, 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 and 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 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 the e. c, b, 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. i to italy where the presidents has dissolved parliament paving the way for early elections as follows. the resignation of prime minister mateo draggy after the collapse of his national unity government . the president is asked mr. druggie to remain in post as caretaker leader. only

say his departure could not have come at a worse time for italy and for europe. drag 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 rule of prime minister to help italy recover from the impact of covert. get a grip on a spluttering economy and implement economic reforms. those issues have not gone away. 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

what they left. 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 no beside it. let's hope everything goes well, the lowest and the problem will be solved, delaware, i will not. i could echo either get either windy. 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, drag his 2nd resignation. after 2 more coalition parties broke ranks. brings the curtain down on that effort. for now, the man dub super mario will lead the government until the new prime minister is

chosen. let's go through this with dr. mateo garafola. he's our research associate in politics and international relations at the university of oxford. welcome to d w. so i'm with the prime minister, having resigned and the various parties in college and having sort of gone their separate ways. it sounds like the president really had no choice but to dissolve parliament. indeed, i mean, aid, you know, according to article 88 of the constitutional the, the prisoner public has to talk to the speakers of the book chambers of parliament and dan. together we don't, can agree and take that, the seasonal department. then you have a certain period time that has to elapse, but election must take place within between 60 and 70 days. seen today that the previous apartment has been dissolved selections, now we know will take place on the 25th of september. this is the very tight and it means that the new parliament will start working operating sometime between the

15th and the 22nd of october. and meanwhile, mario drug stays on as a caretaker passed capacity. how is that likely to pan out? he will what, what he will be focusing on overwhelmingly will be the implementation of the recovery package that elite has been putting together over the last year, year and a half. you have to remember that in that respect is the main beneficiary of the recovery package should, has been agreed at on your level receiving over 250000000000 years. and this is what matters rank. and we'll be working on that. you will not be allowed to start new political initiatives and certainly will not be allowed to prepare the next budget next financial law which will be cost but new parliament sometimes probably november summer. as i understand it is never faced an election campaign during the summer. everybody goes around on holiday. what can we expect been in the next 2 months? yes, he knew. i mean, you could claim that is always, you know,

they're always electro complaints in italy officially. that is something you and park is will be struggling with because you have a combination of factors. everyone is on holiday. you will have a reduction in the number of parts of him. he's in the district and the number of epic is the number of people will be flex from 630 to 400 and p and senate from turn the 15 to 200. also they will have to prefer and meet the names of the political parties that will property elections by the 14th of august and to meet the lease of canada and the 22nd of august. so it will be tight and it will be a lot of fighting within each parking because they know the number of one piece will be cut. ok, thank you for that matter. got a volley and miller. so take a look at some all stores making headlines around the world. now you as president joe biden has tested positive for cove. 19 the wife has said he was experiencing

very mild symptoms spokesperson added that the president would continue to carry out his duties. and had started a course of the anti viral drug, a packs love it. jenkins, 6 time prime minister runner become a singer, has become a countries new president. he was sworn in at the ceremony in the capital, colombo after law makers elected him at the previous day. veteran politicians are controversial choice because of his closeness to the ousted previous president. russian gas flow through the nord stream, one pipeline into germany have resumed following maintenance work had been fierce at moscow. would keep the taps switched off in response to european sanctions of ritz invasion of ukraine. bulgaria and ukraine says, russian shelling has killed a 3 people and wounded nearly 20 others in its 2nd largest city. hockey of russian missiles also destroyed a school in the city of comm. at tours can the easton don bass region. meanwhile,

key is trading soldiers to use newton longer range weapons arriving from the west, which russia says is forcing it to whiten 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 rumble in search of people possibly trapped inside. 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 room, although 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 thereafter all water. so we took ourselves out with a hump we're 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 of 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 admitted the walker closer because the west paws 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 or should adopt mean, same geographical tasks of these special operations will extend still further from a current law in regards certain, initially, should we support. but in an interview with d, w, a. germany's foreign minister on the line and bear bog dismissed to russia's argument that it's being forced to widen it's offensive in ukraine because of

western weapons deliveries, defend russia 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 another part 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 and football, legendary german strike over zailynn has died at the age of 85 sailor made his debut for hamburg, aged 17, and remained a hugely popular figure with clubs funds throughout his life. in a 20 year career at hamburg, he won a bond, his legal title, a german cup, and represented west germany at full woke ups. is reminder of our top story. at this hour. the european central bank has raised its interest rate for the 1st time in 11 years as it seeks to control stubbornly

high inflation in the euro zone. and it's expected to write rates again in september. coming up next in d. w. news, asia. so lanka, new president of face is monumental challenges if he wants to write the economy. skeptic sphere, the veteran politician, will only offer more of the same as we've been facility. who has that story? ardmore, a news asia in just a moment. i'll be back in the top of the out. what secrets lie behind these walls? discover new adventures in 360 degrees. and explore fascinating world heritage sites. d w world heritage 360. get the app now.