>> this is dw news live from berlin. breaking point. germany's government embroiled in a serious crisis over its migration policy. chancellor angela merkel facing a mutiny led by her interior minister. he is said to be preparing to define her and risk being down the government. also coming up, , the brink of a tradwar,r, the u.s.. president's slaps tariffs on china and beijing fires back. match day to at the world cup --

two at the world cup, morocco and iran facing off. which of the two sides had a lucky day? ♪ sarah: i am sarah kelly. welcome to the program. thank you for joining us. we begin with what is proving to be a stress test for germany's coalition government. angela merkel's authority is being challenged by her interior minister horst seehofer. her position is hanging by a thread after seehofer, a member of her own block and sister party the csu said he wanted to implement a plan under which migrants would be turned away at the border. merkel has rejected the idea, insisting on finding a joint european approach. reporter: angela merkel's

governing coalition has begun to wobble under her policy. while the conservative party still backs her, the bavarian conservatives, the csu, or in open rebellion. despite attempts at finding a consensus, the csu leaders say a change in policy is needed now. >> the stream of illegal migrants to germany is a big problem and the populace is critical. it is a political hot potato wherever we go. we have to solve this problem now. reporter: merkel hopes to negotiate a european solution to the issue when european leaders meet in brussels in two weeks. she argues germany should not be acting on its own. she offered a quote along the lines that international problems require international solutions. >> the world is highly integrated. everything is too interconnected for any country to determine its destiny alone.

very wise words. reporter: but the csu interior minister does not think i european solution is coming soon . he wants germany to refuse entry to migrants registered in other e.u. countries and may issue orders to that effect against merkel's wishes. the opposition thinks he is going to far. -- too far. >> the government is not nice. that is obvious. this is another attempt from the right wing of the conservatives to launch a takeover. reporter: merkel's other coalition partners, the social dedemocrats, are irritated by seehofer. he seems ready to risk bringing down the government. >> the argument b between the cu and the csu's dramatic. it is causing serious trouble. i don't understand why this is happening because not long ago when we are putting together the coalition agreement, we

discussed this question of how to get a a grip on the refugee problem. reporter: time is running out for the two sides to reach a compromise. if they don't, angela merkel's government could be in serious trouble. sarah: and dw's chief political correspondent melinda is covering events. it is clear that this crisis is not good for angela merkel, but does it have the potential to unseat her? melinda: it does. if the interior minister sticks to his ultimatum and moves to carry it out on monday as he spoke of doing, then essentially the chancellor might wind up with no option but to fire him because that measure he is proposing, to essentially reinstitute border controls along some of germany's borders and to turn away some migrants or send them back to the first

countries in europe that they entered, that would absolutely contraravene sections of thehe coalition agreement that he signed up to and would directly contradict the wishes of the chancellor.. he would be putting her in a very difficult spot. if she were to dismiss him, then his party group, the bavarian conservatives, csu, with the government. that would mean the coalition would not have the majority of the seats in parliament, which means the government would fall. new elections would be in stores, and the chancellolor herselelf would be without a job because she has said this would be her last term and essentially that would be a defeat for her. sarah: the stakes are so high for both of them. i want to turn to mr. seehofer's motivations because he is the chairman of the sister party of merkel. she should be one of her. life in the cabinet. why is he risking the downfall

of the government and potentially his own? melinda: there have been long tensions over immigration. the bavarian conservatives basically were opposed to the open door policy from its very inception in 2015 when there was a huge massive -- mass of refugees and the chancellor said given the weaknesses in european refugee policies as a whole, she saw no choice but to open germany's quarter. bavarian conservatives oppose that. they remained opposed. they have pushed hard for tougher action on deportations and limiting the number of refugees to enter the country. they did get some of those points into the coalition agreement, and none the less they have not been satisfied but this is more than anything about -- anything else but opportunism. there is an important election

coming up in the csu party. it will occur in october and they are very eager to look tough on immigration in order to ward off gains by the far right immigration afd party. this is all about tactics. sarah: i head of that, let's gauge the mood of the country because there has been a poll conducted before this crisis and shows the majority of germans want change with regard to refugee policy. i would like to drill down into the details. the poll was conducted by -- they asked what people thought about differing migration proposals. they said the proposal with the greatest agreement was the one that called for deportation of asylum-seekers whose application has been turned down. 86% of those who responded agree that premise -- with that premise and only 10% disagreed. to build on that, we will have a

look at the level of popularity enjoyed by angela merkel's coalition itself. these findings date from before the political turmoil. people were asked how satisfied are you with the german government's performance? a clear majority, two thirds, they admitted they were dissatisfied. only one third of voters said they were satisfied with the government's performance. how should we read these findings? on the face of it does not look good for merkel and her policies, does it? melinda: on the first finding on policy regarding deportation, it comes as no surprise. that has been the viewpoint of a large section of the public for some time. the coalition agreement foresees tougher, quicker, better more effective action on deporting those who have no right to asylum in this country. the point is that question a,

was not put during the current crisis and b, was not phrased as but do you want to see go it alone action right now on this point? that is what seehofer is saying, he wants to do, with ahead on his own essentially on a unilateral basis. the fact is the coalition agreement specifies that the coalition partners will seek e.u.-wide solutions, multilateral european union solutions to what is a very complex problem. that is the chancellor's position and in fact this finding that we just saw that doesn't necessarily contradict that. the second finding about support for the government, very -- they want to o see another future of the grand coalition, both for the spd voters and the cdu. they would much prefer to see other constellations of parties.

we cannot necessarily draw a causal connection. if we look at another poll released today, taken after this dispute flared up, the voters of nearly all german parties except bavarian conservatives and the afd, the far right party, all the other voters say immigration is not on the top of their priority lists. sarah: that is fascinating. in addition to that we have to remind viewers that according to these polls, merkel remains the most popular politician in the country by far. how do you see this playing out? if she finds a solution, what does it mean for her and the government? melinda: solution would be a compromise to simply turn down the heat on this dispute. we are told especially the christian democrats, her block, her party in the conservative bloc, we are told they are looking hard for a compromise

with their bavarian estranged sister party, but it sounds like it has not been found. the former finance minister and current president of the parliament will gunshot blur -- wolfgang scheidler is going to meet. so a time to look for that european union solutions she wants the four and e.u. summit at the end of the month. sarah: we know in the world of power politics, angela merkel, often the last one standing. we will see if that is the case this time around. melinda crane, we appreciate it. migration also topping the agenda with emmanuel macron meeting with giuseppe conte's in paris. after the talks macron called for profound reform of the european union's migration policy. the summit past update after a tense exchange earlier in the

week over italy's refusal to let migrant ships docked at its ports. reporter: days ago they exchanged harsh words. now it is handshake and back rubs. french president emmanuel macron and italian prime minister giuseppe conti are finding common ground despite their differences. one is a european cheerleader, the other the head of the eurosceptic government. but both agreed that the current rules for processing asylum-seekers are not working. >> the concept of a state entry must be reviewed. whoever set t foot in italy sets foot in europe. >> today the current system does not work. solidarity system is designed with quotas and did not deliver satisfactory result. we must find something so each state can bear responsibility for migrants on its territory but also allow for solidarity to

the geographical situation does not result in an unsustainable political situationon. reporter: thehe meeting was almt upended by a spat over t the plight of migranants on board a rescue s ship. macron's spokesman accused italy of cynicism and irresponsibility forr turning the ship away. italy demandeded apology and threatened to call off the leaders' meeting. the migrants remained on board, heading for spain. there is fair conditions at the palace. conte says italy is working on a proposal to overhaul your filing system. he wants to see migrant processing centers in africa, something macron seems open to. an attempt to give just keeps italy close even as countries drift apart. sarah: let's get a quick check of other stories that have been making news. donald trump' former campaign managers paul manafort has been

ordered to jail. a federal judge revoked his house arrest after special counsel robert mueller charged in with witness tampering. he is facing to criminal trials on -- two criminal trials. the afghan defense ministry says a u.s. drorone strike has killed the leader of paktan'ss taliban. he was the most wanted militants. he is notorious for ordering the country's worst ever school shooting and the attempted assassination of the nobel prize winner malala yousafzai. the ashes of stephen hawking have been buried in london's westminster abby. he was known for his ground breaking research into black holes and for his iconic digital voice. he died in march at the age of 76 after living for decades with dedebilitating motor neuronn didisease.

helena humphrey is here. what a day for global trade. reporter: i think it is fair to say relations have been friendly . the trade route has moved up -- row has moved up. beijing retaliating with equal strength to the u.s., and berlin adding fuel to the fire although the heat mostly coming from washington today with trump announcing 25% tariffs on over 1000 chinese products mainly from next month. they include high tech, so taking aim at beijing's ambitions to transition into a tech economy. they had up to a total of $50 billion, in punitive tariffs for what trade -- trump called unfair trade practices. they are hurting that -- china is imposing levies of its own on american goods to the tune of $3.3 billion including blue

jeans, whiskey and motorcycles. the e.u. may be united on that but on other issues of trade, cracks are beginning to show. italy's government has been threatening to not ratify the trade deal with canada. italian city agreement doesn't protect regional products like parmesan and prosciutto. it seems we are on the brink of a global trade war. the escalating international trade dispute made itself felt on the markets friday. the looming trade war between the u.s. and china and europe is making investors nervous. share markets are under pressure . even the dow jones lurching into negative territory. boeing was among the heaviest losers. traders were reacting to the belief aircraft and agricultural produce be on the list of retaliatory chinese sanctions.

and covering the follow on wall street is our financial correspondent. what are you hearing on the floor? jens: the first round of tariffs on imports from china will kick in on july 6, and we will start with the amount of $35 billion, then china declared friday afternoon that they will retaliate. they will start imposing a terraced -- a tariff on the u.s., the amount of $35 billion. we will see tariffs on u.s. agricultural, seafood, and energy. aerospace is not going to the tariff at least for now. it was interesting to see the reaction on wall street actually was muted. we did not see a huge selloff. maybe that is because as you look at the united states in

general and the u.s. economy, we are talking about gross thomistic product in total of $19 trillion. now we are talking tariffs in the amount of $35 billion, so for now at least investors do not believe that it is going to threaten economic growth in the united states at least for now. helena: business as usual. thank you. the czech republic have a government eight months after an inconclusive election. a billionaire has been struggling to find coalition partners for his centrist party -- now the government has a deal. they will still depend on the communist party. reporter: bread for product straight out of the factory belonging to the prime minister. the bread factory with its 270 employees belongs to a business

success story. they have a yearly turnover of 1.5 billion euros. the company's interests extend beyond bread but keep their cards close to his chest, reluctantly giving a statement on the prime minister s involvement. -- prime minister's involvement. >> he has not been responsible since 2014 when he joined as finance minister. now he is heading up the government, he is no longer with us. his share in the company has been transferred into a trust fund. he has no part in acrobat's daily business. reporter: directly opposite the company headquarters, the main office of the political party founded by the prime minister. this is the biggest political force in the czech parliament. he is estimated to be worth 3 billion euros. many people are c concerned so much wealth and political power are concentrated in just a few

hands. in early june thousands took to the streets to protest against what they called an oligarchy. the anti-prime minister protests arare organized d by a group o f students. >> his holding which is managed by his wife and his close friendnds were eaearned during s time o over four y years, 1.5 bibillion of euro, and is the se amount his holding earned dururg 20 years before together. reporter: the activists say he has acquired the most important newspapers in the country, turning them into propagaganda instruments. the senior editors h have left e papers and are working independndently. >> his interests in health, agriculture and chemistry and the businenees are verery much depends on the statate and legislation of the state.

reporter: many see an indisputable conflict of interest between prime minister's business activitieies and role in politics. this business consultant knows the mood among business leaders. ♪ sarah: time to check up on world cup action in russia where the first full day of matches has served up plenty of,. breaking it down for us is max hermann from dw sports. there was one game everyone was focusing on. we were watching it a short while ago. portugal versus spain. reporter: it was more than a nailbiter, it was everything. so what's happened. it was the best world cup game in a really long time. it all got started very quickly as well. cristiano ronaldo was found in the box. let's look at the tape. he stepped up to the spot, put portugal in front 3.5 minutes

into the game. that puts spain under real pressure. they responded to that. diego costa, some nifty moves in the penalty area of his own. couple of cutbacks and now the far post. portugal were not really done. rinaldo took a crack of his own. it was too hard for the goalie. i am not even halfway done. and then after halftime, spain put things level. diego finishing off that play. and the real madrid defender who found rinaldo for the penalty scored on a volley from distance which is hard to beat. cristiano ronaldo in the final minute of the game however would put portugal level, 3-3 draw. i don't think it is inappropriate to call this an instant classic. everyone was looking at this

when the draw was made saying it might get good game. sarah: a ton of fans got their money's worth. also morocco and iran. reporter: the game was won a lot were watching. they didn't know these teens very well. it turned out to be an even match the different styles chasing each other. let's watch the footage. it ended as a win for iran. last-minute winner here. jubint, t ery look at the replay, turned out [indiscernible] from aziz, really a settlement because it looked like morocco was going to get away with a draw. they could have won this. they were really pushing iran around in the first half hour. but you know, iran is a team that likes to defend. they like to have teteams come onto them and they are comfortable with that. that plan worked out very well for them. i think it will be tough against

portugal or spain, the other teams in group b, but they have three points and those teams have one. sarah: it will be one to watch. however the early match? reporter: that one finished quite similarly to the morocco-iran game. it was a late winner, not as late, 87th minute. look at the tape. that was scored by jose maria jimenez. powerful header coming in off the free kick. this was kind of a crushing loss for egypt. egypt went into this game knowing at least behind closed doors there superstar attacker was not ready to play. they decided to play it safe. looks like that gamble, maybe they could get a result against what might be the best team in group a was going to pay off. it worked for 87 minutes.

the last three minutes did not really work. really tough loss, but her away -- uruguay has got to be looking ahead. sarah: who is the best so far? reporter: russia for sure. i don't trust them to get more results, i think uruguay will be them, but a 5-0 when iss something of a dream start especially for a host nation that didn't have a lot of confidence in the tournament. they are sitting very pretty. sarah: who else is likely to be sitting pretty after saturday? we have a big match day tomorrow. reporter: there will be two teams sitting pretty. two tournament favorites will be kicking off their campaigns, france taking on australia, nearly lightly regarded team it must be said, and argentina have a somewhat smaller opponent themselves. the cap debutante, iceland. but later saturday it will get

interesting. you will have peru versus denmark. that could be a very evenly matched game. then you have teams that are potential to surprise viewers with a deep run if things go their way. and finally a game between two teams which were difficult to judge, croatia have a small squad -- strong squad. big-name players, but they sometimes come up short in tournaments and are facing nigeria, another team hard to judge. sarah: matt hermann, thank you for breaking it down. you are watching dw news. we have more coming up at the top of the hour. you can get dw news on the go on our app. you can download it from google play or the app store. on your apple phone. i am sarah kelly, thank you watching. hope to you again soon. [captioning performed by the national captioning institute, which is responsible for its caption content and accuracy. visit ncicap.org] ♪

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