[000:00:00;00] a foundation ah this is the w y from berlin. it's re entered a new period of political instability. italian president dissolves parliament to paving the way for the elections. it follows the resignation of prime minister, money, or drug after his national unity. government collapse. also on the program, 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. today's increase is just the start and more civilians are killed as russian forces shell ukraine. second city bhaskar says it's expanding its war aims in response to the delivery of western weapons to you. ah, i'm so again, welcome to the program. at least president has dissolved parliament paving the way for early elections. it follows the resignation of prime minister, money of drug after the collapse of his national unity government. the president has asked mister drago to remain in post as caretaker liter analysts say. his departure could not have come to worst time for italy and for europe. drag is trip to the presidential palace to submit her 2nd resignation within

a week has launched yet another phase of turmoil in italian politics. he was originally appointed to the rule of prime minister to help italy recover from the impact of cove it yet a grip on his splattering 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. i should delicate moment that i think it was a reckless move, not to bear in mind everything that is happening globally with the war. and the ongoing pandemic already thought by the element with they let you really is of the right moment for a government crisis up but on this should have been the mom to get back on her feet hot and cold. not the moment to stop,

not inside it. let's hope everything goes well, the lowest and the problem will be solved on the like. where did i go now? i got a call either good or windy. the political crisis began a week ago when one of the parties and drug is coalition. government refused to back an economic package that prompted him to tender his resignation. for the 1st time, it is 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. on thursday evening, italy's president sergal montero tele deserved parliament clearing the way for new elections to be held on september 25th. the mand up super mario has been asked to remain an office in a caretaker role until a new prime minister is chosen. so what happens now that parliament has been dissolved?

i asked her political research. mateo got volleyer in miller. in the i mean aid, you know, according to article illegal to constitutional. the, the prisoner probably has to talk to the speakers of the bull chambers of parliament and dan. together we don't can agree intake that the seasonal missile department. then you have a certain peer convert as to, alas, a election, musty place would in between 60 and 70 days seem to day that the previous garment has been de saw selections. now we know will take place on the 25th of september. this is the very guide, any means said the new carlo, and we'll start working on grading sometime between that 15 and at once i got over and meanwhile, mario drug stays on as a caretaker past got capacity. how is that likely to pan out? he will. what he will be focusing on overwhelmingly will be the implementation of

the recovery package that has been putting together over last year. and you have to remember definitely that respect is the main beneficiary of the recovery package should, has been agreed upon. your level receiving over 20 billing years, and this is what money will be working on, but you will not be allowed to start new initiatives and certainly will not be allowed to prepare the next budget next financial law which will be cost my new parliament. sometimes probably november or december. as i understand it is never faced. and the election campaign during the summer, everybody goes on holiday. what can we expect been and the next 2 months? yes, it's a new i mean you could claim that lewis, you know, they're always electro complaints in italy officially. that is something you and park is will be struggling 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 that you need to determine the

chamber of ethic is the number of employees will be flex from 630 to 400 and b and senate from turn into 200. also they will have to prefer and submit the names of the political parties that will run for the elections by the 14th of august. and for me, the least all 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 employees will be cut. ok, thank you for that. matter. got a boy yet. and miller, a european central bank has raised its key interest rate, half of one percent. the 1st increase for 11 years. the move aims to curbs, doubly high inflation in the euro zone, unless predicted a smaller increase with the bank expected to raise the rates again in september e. c. b president christine, my god said this larger 1st step had been made with the risk 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 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. kristy plaza from the w's business department, can explain what all this means. welcome, christie. we know consumer prices in europe at any deed 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, on that level, it is a little bit unclear exactly what effect this gonna is gonna 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 loan 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'm in 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 to 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 euro zone since they 1st announced that they would be raising rates last month a. 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 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. m is also, well, as you said, very high, nearly 9 percent 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 you 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, big, big, he raised too hard too quickly and 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 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, christy plots, and from d w business. thank you. thanks. a 2nd look at small stores making headlines around the world. you as president jo biden's tested positive recovery, 19 white house said he was experiencing 40 mild symptoms spokesperson audio. the

president would continue to carry out his duties and have started the course of the antiviral drug. but lots of it. bazillion politician lula da silva has been chosen as a candidate to take on giant boston are in the presidential election. this year is twice been president before being imprisoned on corruption charges that were later overturned. is the current, the favorites to win the vote. in october, officials in pakistan's, at least 290 people have died in weeks of heavy rains and flooding. national disaster management authority reported almost 6000 homes have been destroyed with critical infrastructure such as roads and bridges severely damaged. the ukraine says russian shelling has killed 3 people and wounded nearly 20 others and its 2nd largest city. hockey of russian missiles also destroyed a school and the city of cram tours in the eastern dumbass region. meanwhile,

cave is training soldiers to use new longer range weapons arriving from the west, which russia says it's worth it to widen it's offensive. this is all that remains of a school in the ukrainian city of cram matters. russia missiles destroyed this building and several homes nearby. the number of casualties was not immediately known. as rescuers dug through the rumble in search of people, possibly trapped inside. a made a relentless russian shelling. regional officials in 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, i was because i could not believe it. when we were under the rubble, the will to live was there after all already. so we took ourselves out with our hands 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. a 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 poles 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 for global supported loc mean, seen geographical tasks of these special operation will extend still further from the current law in regards certain, initially, should we support. but in an interview with d, w, a. germany's foreign minister on a lena bear, bog dismissed russia's argument that it's being forced to widen. it's 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 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 z ala has died at the age of 85 sailor made his day before humbug. age of 17, remained hugely popular with the clubs funds throughout his life. and a 20 year career hamburg, he won a bonus league, a title of june cuff underrepresented west. germany at full well comes is reminded by top stories at this hour. following the resignation of prime minister drago,

italy's presidents as dissolved parliament to paving the way of the elections. the european central bank has raised its interest rate for the 1st time in 11 years . it seeks to control stubbornly high inflation in the euro's on the banks expected to raise rates again in september. it will foolish on some more world news at the top of the hour next on the w and investigation into the unscrupulous private doctors pressuring women in india. and having unnecessary is threatened with a starts in germany,