really invest the i pressed cobra walked into the program. germany's economy minister says he wants to continue with the funding of multi 1000000000 euro economic projects. that's the spite. a recent court ruling preventing the government from re purposing left over funds raised to find defend demik. the ruling trigger a crisis over the government's budget for next year, as it cannot raise new debts due to a constitutional so called that break robot. how they accepted the federal government and the states of germany are working together to find a way to keep money flowing to the project. less describing them is affecting the economic heart of germany in big fears. on more on what he had to say. do you projected mcgee mentioned the project, like within the climate, then transformation fund concerned the heart of germany is economy torch loans. the economy data behind this has become common. knowledge comes out and it was due to the loss of the $60000000000.00 euros expected from this funds were expecting

economic growth to drops by at least half a percentage point this year. and this trend will continue in 2025 and 26. if to a lesser degree, at this point, we have to defend the substance of germany's economy and we have to build trust in our businesses across the country by the indian to you on for throne indian between a hyphen gun. that's got the view of carson jessica on this search. he's economist i n g germany. welcome back to the problem, carson. have a percentage point less of g d p growth a thanks to the government's budget crisis. that's what the economy minister is predicting. is that realistic or do you anticipate a worse impact as a sign even worse price? um, because yes uh 0.5 percent to ship ones. impact is realistic. given the size of the 60000000000 euro hole, as they 60000000000, is around 1.6 percent off, due to some kind of disturbing measures. what for the already know or could you see

growth by all points, higher percentage bonds. but this is not everything. it is also about uncertainty that has gone up through the roof against the uncertainty amongst consumers, uncertainty amongst the corporate. so given this policy answer me right now, there will be even more of holding back investment. there will be even more holding back of consumption slide to the 2024. if we won't find a quick solution for this fiscal issue, 2024 will be worse than 2023. and for 2023, i think we should already expect a recession bar wrong minus oakland, 5 percent of the economy ministers, promising that all financial support promise to companies trying to transition towards a green economy will be upheld despite this very difficult fiscal situation at what cost as well,

either at the cost of the maybe a falling off the government otherwise and the cost of the higher taxes for expenditure comes elsewhere. the where where's the status quo work now the status quo. oh is that there is not enough money also not in the 2024 budgets to to fund all the plans that the government had announced. so that is a tax either. now, the government can deviate once again from the physical debt break, which i think they won't dare to and wish legally room very complicated. otherwise, they found a structural solution say, all right, let's go for a complete make over of the day of the dead break. but for this, they need the opposition to shooting you and i think that's also not going to happen. so that the only thing is if you have to do it with the money that there is in the budget, it means there are more expansion plans said money coming in. so this means other expenditures, like for example, the social care. but also the, the dual guard gail which, which is kind of social benefits,

they should be cut again, or they would have to start talking about higher texas something the liberals, the ftp who haven't ruled out so far. cousin jessica chief economist at i n g germany carson, as always, thank you for your thoughts. last week, countries at the united nations voted for the organization to take a greater role in international tax matters. the move is perceived as a threat to the ascendancy or the o a cd. the body that has led these discussions for decades. countries that the un adopted a resolution to begin the process of establishing a framework convention on tax and completely change our global tax rules. are the side resolution, was that primarily by african member states and could eventually move decision making on global tax rules from the city club developed countries to the us before the show,

i spoke to alex called them of the tax justice network and asked him why he thinks that developing countries stand to benefit from the you and playing a bigger role in taxing multi nationals and individuals. here's organization says that the tax avoidance costs the world around $480000000000.00 annual. the larger part of that is lost by obesity, members, the rich countries themselves. but as a share of current tax, revenues is much bigger, much more intense, those losses for lower income countries. so the state in countries that doesn't have a voice within the c d, which has been sifting the tax rules for about 60 years. of the countries that lose are in the way there's most damaging. and so they lose almost on average, almost 50 percent of the public health budget compared to perhaps 9 or 10 percent in the high income countries. so that's why it's really important that this is

a step on the way to lower income countries having an equal say, in setting the rules. that doesn't mean we'll get to a perfect solution. but it certainly means there's a lot of space for all countries to to be much better off alex, let's take a closer look at this agreement. the to tech deal aims to create a 50 percent global minimum corporate tax rate and calls for a new treaty that would shift some taxing rights on the most profitable multi nationals to countries where the companies clients are located. now how likely is it that these plans will become reality? it is not terribly likely, but that is nothing to do with what's happening to the united nations. that's purely because the obesity, the 2 pillars have really lost so much of the emission. so the pillar one was originally designed to, to really make a profit shifting, almost impossible. in the most ambitious version, it would have required all of the profit, some of the national companies to be declared and taxed in the same places that

they're carrying out their real economic activity. so that would still be shifting prospects into places like the method. wenzel island, deluxe and bug, you know, away from the places that the companies are actually making that money. but that's collapse matter. so what's left is a bit of a bit of alignment of profit with activity that applies only to a small fraction of the profit of view within one hundreds of the mileage as multinational, as all other profits remain under the old rules and links pricing that we know to work, so that one's going. and on top of that, the united states a signal, but they wouldn't be able to ratify. and the rules as, as the of the city is written the means that that means nobody else can move ahead with this either. so the one is pretty much dated and that's, that's just the way you see doing that pillar to the minimum tax. as you say, in theory, that would apply a rate of 15 percent very low, but much better than the kind of 0 or 5 percent. perhaps that the companies often

pay in those you are paying time savings like the math events like look some book. so it feels like a step forward. but actually, when you look at the detail as people now have the way that this is involved in the last couple of years, again, it's lost a great deal of it. so i'm vision. so what we see now is the revenue gains are going to be much lower than the of the cd originally projected. and on top of that, most of them will be captured by those corporate tax savings. they've profit shifting jurisdictions. so those are the ones the most, the most excited when bracing this you know, we see switzerland and it's, it's different can tones competing with each other to see how they can get the most . i have to this for most other countries that can continue suffering, profit shifting just as they have done up till now. and that's why really countries are looking into the united nations to see if we can find a better way, a better way forward instead of alex couple of the tax just as network fair. and

you can watch our entire conversation on the d. w, use youtube channel. it is a fibers now, and the country has for years been a hotspot for investment stemming from israel. but that has changed since the october 7 attacks by a mosse and israel's counter offensive against the terrace slippery and real estate companies in particular, are seeing major drops in demand. dw is jack power, can reports the most about shelton is a real estate developer in cyprus, he's building large scale projects like this one in law and using money coming, at least in pulse for me is really investors. he says there's been a 90 percent drop in investments since the terror attack. everything is in in hold . the people that we're aiming to sign contracts said they want to reconsider said they want to postpone the signing and any other marketing campaigns

. the also stops. and the people are just waiting to see what the future will bring when reason these rated currency, the ship, who dropped 10 percent against the euro. in the immediate off the most of the attack developers on big construction projects like days expect to be able to ride eyes and a short time shift in demand. but here in cyprus, that has also been a shift in the real estate market for people to move into properties immediately. and vast off site costs, as he's been selling significant numbers of homes in law on the cookie young, his way to the families for the past decade. i used to see this and also 20 or to be quite yeah, they said they from from each right. that is phase that they haven't done. he believes it's certainly temporary though. i sense that uh, that interesting cypress i didn't stop is just the plus side presses home to run 3 times in jewish families already. they say they feel safe here long the crew is

popular because it has to be international airport. a 40 minute flight tel aviv make go move to 6 years ago and has been visiting properties like this to advise friends and family back in israel and want to invest in and why the price is uh, i would say half of what is the pricing is uh, around half price is in these rental property are relatively high. it's too soon to know how significant the market shifts will be. so the overall cit prius, the economy business is connected to over lions on these really money, a real bracing themselves. and that wraps up our show for more check out our website at www dot. com slash business. add the dw, use youtube channel. i'm chris kolber, on berlin from me and the entire team. thanks for watching. have a successful the

institution this award recognizes people connected via the length of freedom of our 2023 bits and metals to to recipients from to believe taipei in budapest, the vans in 90 minutes on d. w. how many portion of lots of turn out in the world climate change. the story faces more plants the way from just one week. how much was going to really get we still have time to work. i'm doing this fast fashion as an environmental 9

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this is the, the news alive from the israel. i'm from us say that open to extending the safe spot. i'm asked militants to release the 3rd group of hostages to israel and launch band collage crowds in the west bank. welcome to palestinians release from his writing press. the occupied westbank public stimuli to suffer a search and settle if violence, which they say is meant to intimidate them and to leave it also on the programs here to the evans. as calm as being.