back, they're pleased to reach on and off the pitch. remembering to visit your boxing dw, news live from berlin that said from me and the news team for now don't go away, they'll business use is up next with will. watson's already waiting in the wings of this studio. i'm gout office for me, and the team, thanks for watching. ah, in the land of contrasts, of ambitions of inequality. 75 years ago, mahatma gandhi peacefully led the country to independence, full of ideals. and what has remained of his vision with what's the status of human rights and social justice in what's called the world's

largest democracy willis, india headed with the pulpit to unleash on violet bass. and re imagine that these teachings or elements to us. gandhi's legacy store to august 6th on d. w. ah, your of reckons with the impact of rates rises, e. c, b 's decision to height rates by half, a percentage point was welcomed him some quarters. but what does it mean for the euro zones? biggest borrowers and as europe left its future in the hands of too many other countries, we'll look at how the e u is trying to lower its reliance on foreign imports. this is d to we business on

robots in berlin. welcome to the program. it followed immense pressure. the european central banks decision to hike interest rates by 50 basis points has been welcomed in many parts of the euro zone. but not all the higher than expected rates rise announced by christine legard on thursday brought the c p. policy closer in line with the u. s. federal reserve and strengthened euro against the dollar. the key aim is to bring down record inflation in the euro zone. however, the rise has been met with concern in parts of europe with higher levels of debt among them. italy, where news came on the same day as its prime minister, mario druggie announced his resignation. well, let's discuss this further with kramer. his chief economist at comments bank enjoys us for frankfort, doug. good. have you on the program? good. that you can hear us. well, this rate's rise is always going to have a different impact on some of the 19 members of yours and that it is on others,

isn't it? well, on the other end, you have to say yes that you should be delivered yesterday a 50 basis points rated by the deposit rate of the e. c. b. it's still at 0 percent. therefore, monetary policy is still very, very expansionary. therefore, i think it's far too early to say that this may be a problem for, for any country, this should not be a problem for any country, an interest rate of 0 percent. but does it says precedent that could see further rates, right. is in fact easy, it's just that that could be what's coming. they may be appropriate, i think is the way that it, it put it in is that not something that could be concern for the countries that have got higher levels of debt and that they might actually be impacted more than, for example, countries in the north of the region so when you think of italy, for example, italy has a debt to g. d p ratio of 150 percent. this is really 3 times what the mastery

treaty allows. and in so far, italy should, should prepare itself, of course to, to sustain this dead level, to carry this dead level. even if the interest rate is no longer 0 percent but, but, but a bit higher. that means norma. and therefore of course, i think it's a problem that prime minister druggie who started some reforms, at least their prime minister drive was forced by it is pretty consistent to recite series of the countries themselves, the kind of mitigate the, the impacts of this. but the c b did announce a measure to try and help countries, you know, to deal with the uneven impacts. what are they named at the name of the transmission protection instrument that we know exactly how that's going to work and, and how it aims to sort of fix that problem or wait to translate was what t p i, it really means this is a new bond by program of the e. c. b,

in favor of individual countries with high debt whose government bonds may suffer from future interest rate hikes. this is a background. however, as far as a program is concerned, they are no her objective criteria to this. and even the, the reform conditions attached to the program are very, very weak. and therefore, i think that there, we can say how the easy b will use this program in the future. very entrance paradigm to say ok, you kramer, chief economist at comments bank with some criticism of the c b there. thanks a lot for joining us. yeah, thank you. let's take a look at some of the other global business stories that are making the news. the german government will acquire a 30 percent stake in beleaguered utility unit according to the company.

effectively, the german government is offering the country's largest in puerto russian gas, a multi 1000000000 euro bailout, and is struggling to secure alternatives to russian gas in port summit. soaring prices, talks on a un led plan to secure a corridor for ukrainian grain are going well according to turkey. and gra, hosted officials from russia, ukraine, and the un to discuss getting ukrainian weeks out amid the war. turkeys as a general agreement has been reached and the world can expect good news on how much we will soon be able to leave crane. now germany and other countries rely heavily on imports of raw materials for use in key technology such as batteries, robotics and renewable energy is often on one single country supplier like china. and the sort of things that you could see just revolving around me were the kinds of elements that europe has been getting from other countries,

things like cobalt lithium, for example, graphite titanium, and rarer as well. china supplies actually 98 percent of the rare switch are required in wind and solar energy equipment and battery production as well. only one percent of the raw materials needed to make matters come from the e. u. so the pandemic and the war in ukraine have made the blocks self insufficient . if you like, all to clear brussels now wants to use the raw materials act and initiative to reduce its reliance on just a few countries and make supply chains more resilient in the face. of crises that could be done by encouraging more mining and recycling of resources within the u. let's discuss this little bit further in about how you're going to this point by speaking to liz, under aflac, from germany's ether institute for economic research is great to have you on d w business just to explain to us how europe has found itself so reliant on other

countries and potentially countries with, you know, had an un unreliability to them on key raw materials. yeah. for him in principle over all firms have off short term great part of low value added steps of the production process. we choosing priest po, a very good strategy if does this combine? we have far davis vacation of suppliers. ah. but what we see is that for many intermediate goods and materials, the use reliant on fuel producers are which implies a higher dependency as well that so yeah, this realization since becoming a, a bit too late, isn't it? wow. i wouldn't say too late because in the next years we were, we are going to see an increasing demand for a several raw materials. so we have showing in our study, ah, critical raw materials that are germany and the you need for the production of key

technologies such as electric motors and wind turbines and to if the demand for these products increase. also the demand for raw materials increase. ah, and so, so there is a still high need to act. ah, yes indeed sir, in this direction. so i think then it's, yeah. are they you should now expand trade relations with partners that are key producers and key exporters of far off my intermediate to woodson in raw materials, to increase the resilience of supply chains in the future. because one of the problems is that manufacturers and indeed consumers in europe have got used to having to pay less or gay or being needed. and we're not not having to pay so much money because of the, the cheaper or materials that come from elsewhere. if they are mind and your presumably they will be more expensive. so is it going to be okay with us? yeah, so what we observe already in there in the daytime surveys that we have for conduct

at funny since with firms is that firms are really to change their sourcing strategy and all sourcing of intermediate inputs, including raw materials. even if this is associated with higher production prices and these in all as a way to increase the resilience of supply chains. so for instance, we have asked firms about their furniture plans in terms of sourcing strategy and in particular firms. there were severely hit by material shortages, these firms are planning to increase their diversification of their supply chains and increase the stock biling. but of course, these means then are higher costs and then also higher prices to find out customers . yes it is. there's always a knock on effect for these things, isn't that lasandra flak from an effort institute? i thank you so much for joining us onto to remittance think of her the conclusion that the european union is not just reliance on the rest of the world for raw materials. the finished products themselves are also coming often from other

countries. and countries within e is future relationship is far from secure. so often that country, as china, ah love them or hate him. masks are an example of our product, but the european union no longer produces, at least until the corona virus came along. since the pandemic europeans have started wondering if they outsource to many key industries. solar energy is another one of those key industries. especially now as the block is trying to shift away from russian fossil fuels. but the german companies that used to lead the european solar market have long since gone bankrupt due to the end of federal subsidies a decade ago. the market will take care of itself. after all, they said, well, it did. and now the you is dependent upon china. the motto is the cheaper, the better lenses. i think 5 if i don't think we need to ask ourselves of that was the right path ever, ever long a yahoo!

for many years it was, while arreola had said the trade off was in our favor. a visa, you hadn't pies, we had cheap solar panels that a lot of people could afford a lot less and con, we also had cheap power from russia to an egg eligible slant, because for many years, our economic growth by including for many consumers in germany, was a net positive have alpha and large land deposit eva, and figure it to sentiment. economist good on voice agrees with, with a caveat, does in the 1st hours is not to listen actually, does it? well, it's of course annoying that we don't have any producers in the sector anymore assets, and that's because china is distorting the market with its subsidies and state aid . not just in bet that fats out and china's roles. a trade partner is problematic for other reasons as well. components for chinese solar panels are producing ching jang province, where many wiggers live. the government suspects the muslim minority of supporting terrorism over

a 1000000 of them are currently believe to be enforced labor camps. chinese cotton is often also produced with force labor before it shipped abroad. the european parliament recently voted to been all products produced with force labor in the u. digitalization and artificial intelligence are also a weak spot for the you. china is leading the way for other asian countries there and is already moved well ahead of germany, just like you was high tech companies did decades ago. it's not just a question of having the right investors, the you needs more experts as well. ah, the hm. oh, the yeah, i think we haven't been attracting the right talents for years now. politics, especially when you look at our immigration policies, as i said, the americans did that. that's. i'm the only candidate my stanford in california aren't just so good because there are so many good americans. national is a good fuss. but because they also attract the best from the entire world a month people are still key for many key industries.

for just a fair amount of the top, as i saw you were following foyer, this out e. c, v decision to raise interest rates is being met with concern in some parts of the your as own countries with higher level of debt, such as italy of pricing for non effects. that's all from us. is the end of the pandemic in site. we show what it could look like. return to normal. and we visit those who are finding it difficult. successes in a weekly coven 19 special. next on

d w. we've got some hot tips for your bucket list. ah romantic corner hotspot for food and some great cultural memorials to boot w travel. we go ah, there is still many questions surrounding cove in 19. we know that some people are at particular risk, while others never seem to catch it at all. but we don't know why welcome to walk over 19 special in china attempts to control the virus with strict lock downs and home grading vaccines that she'd mixed results. well, garner struggles with vaccine hesitancy. rwanda is building a vaccine factory.