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tv   Business - News  Deutsche Welle  July 17, 2020 12:30pm-12:46pm CEST

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the 1st beethoven is for. plato is for the. beethoven is for us. is for the beethoven 2027250th anniversary here on the air. everyone herds but that won't stop europe's leaders from scratching each other's eyes out in a bid to get the best deal they can at a recovery fund summit it's their 1st face to face talks since the pandemic struck . one of the ailing nations in desperate need of cash is italy will take the temperature of small businesses there. and facing up why can't boss comes clean
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about his role in the downfall of the multi 1000000000 euro payments for. the kids as well and as to business history is in the making investors are closely watching today's e.u. rescue summit leaders hammering out a deal for the biggest recovery fund europe has ever seen but there's dutch opposition and the threat of a hungary and veto the markets would love a deal but this could drag on over the weekend and even be too late before we get too pessimistic let's check if the european union is on the right track in getting its 27 member states through these tricky times it's a question my colleague rob wants put to some of the world's leading economists the european central we have a commitment to a common fiscal response with the european recovery fund now they're going to walk you about it on friday and saturday we'll get a decision up 5 minutes on our street deprived politicians as we always do but i think we will get. eventually a commitment to
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a common for school program and that's why i call for europe's stability over the medium term the problem of course is that the scale is still relatively limited. and that there is a great deal of dependence on the national government still leading in terms of fiscal policy but i think we're going in the right direction we are very much impressed with the european union's come. it's not it's still climate change and he said this and then it offers us a great opportunity to educate the public and to educate france in hurting market underneath to do something about it since 5 and i think that's where the european me union is sticking to me including you know easy action that's what we understand it must be really that we see their historical moment even though the
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small you know the fact that we want to avoid at any costs a repeat of the greek crisis is something that is major for europe the problem or at least the issued some to now you go up to mystic ease you we're going to have to sustain efforts for years to come this is the easy part to take the insurance policy and say we're going to do whatever it takes you know come the c b we're going to do whatever it takes from the government that's the easy part and let's look at the hard part giving up this 750000000000 euro fund biggest contributor is germany and of acquitting a german economist about that in a moment for us the numbers. the recovery plan to help e.u. economies hit by the pandemic is highly controversial and expensive it would boost the e.u. budget for next year until 2024 in the form of grants worth 500000000000 euros and loans to the tune of $250000000000.00 euros but there are differences over how the recovery money would be distributed the commission wants
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a $300000000000.00 euro chunk of it to go to italy and spain the countries hardest hit by the coronavirus pandemic overall the cash strapped southern european countries are calling for solidarity in the form of grants that do not need repayment while the wealthier and more frugal northern countries favor loans. columnist tom crepes is advising the german government during these talks and help put together germany's our rescue package tom what are the member states need to do to get a deal or what is the e.u. have to do to get it still. hears china and things will never meet i think it's a very important moment as to florida hurt and i think you'll look all together and united they reach some sort of deal the big issue will be how much of the general recovery front how big it will be will it be the $750000000000.00 euros which is
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a lot how much of it will have yes grants and how much will be as known and importantly germany and france france this time came together and actually put forward initially a proposal and now it's up to a few countries their so-called trigger countries or the stingy countries if you wish. to agree to to some sensible measures well tom if it is such a big i'm out do you really think it's going to be enough to get the block out of recession. well if it's more of a causative signal i mean it's big in terms of the e.u. budget right it would increase over your budget over the next 7 years by 2 sorts so that's that's a big big increase of cost by itself it will not be enough to pull the economy out of the recession countries individual countries still have to put together their
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own interest competitors because they do but again i think it's also very important as a signal that europe in this very important moment in time unite and also that other countries show solidarity with countries like italy and spain which were very hard hit by the crisis so i think this is this is basically important in terms of. communicating and their europe acts together made a firm from the situation a few years ago when we had the european debt crisis and degree crisis specially germany was all it's proposing austerity measures which are counterproductive in a crisis and we're not showing germany well it was at that time not shown much so that era cheese so i think that's actually them. even if we do get unity how optimistic can we be i mean many people think it is going to be over soon but i'm getting a feeling it's not. no not at all i don't feel quite so that i'm not going that
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optimistic and that i'm not aware of court. right now the economy is doing a little bit better than in april and may when we had a total lockdown and that's true in germany and all in new york in general and so in that sense we are moving forward but we shouldn't expect at the end of the year in new york to be at me everywhere before the crisis not at all and so we will see expression in the labor market we will see unemployment going up and we know that the go up and continue to go up and we will see also businesses closing and companies going out of business and so we will see an informal actually real economic repercussions of this crisis and so in that sense. to me we shouldn't be too optimistic but that doesn't mean that we shouldn't do all those things we could to be shouldn't think of this as it may be an important political moment. and might
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be actually turn out to be very good for europe and the longer economists talk claims of political unity thank you very much for joining us we'll have to leave it there thank you thank you. a former senior executive a german payments process of what i caught has confessed to his role in the company's multi-billion euro fraud that's according to lawyers who say the executive was c.e.o. of conses thems middle east by cars largest subsidiary he was arrested in munich last week conses thems played a key role in the wakhan scandal which put it need 2000000000 euro hole in its balance sheet icon sophos insolvency last month financial correspondent ali bonds has moved. the former senior executive as confessing to his individual responsibility we don't know exactly what he's confessing to what crimes what actions but whatever he says to the prosecutors could also shed light on the actions of others involved in this crime in the scoundrel that would be judicially and politically very important meanwhile investors the public politicians were
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aghast that even with all that has happened and why are carted still in attacks well the door has now announced that that could soon be over that chapter it's changing the rules and if market participants agree to the change of rules and wire card could be out of the docks in mid august. or from all the bots returning to our top story and italy is calling for the recovery financing to come as free grants rather than repayable loads the nation's already deep in debt it was the euro zone's weak link before the crisis here's a look at how some companies fare. some beautiful enough starts her coffee machine once again. it fell silent 3 months ago when her piece through in the northern italian port city of trance 2 is shut down by the corona virus pandemic. her business has been hit hard and she can no longer pay her employees and although
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more was promised she was only given 600 your own state. oh yeah and always been a lot of talk but very little action both the regional and federal governments promised grants we would have to pay back but we've only received very little money . that year that it didn't account for. the same is true for many restaurant owners interest the italian government has distributed $500.00 euros credit to low income families in an attempt to support the tourism sector. the goal of the handouts is to repopulate the beaches. poured in and then about an hour's drive from tranced furniture factory will come shut down production for about 4 weeks due to the pandemic so far none of the workers have contracted covert $1000.00 still sales have dropped dramatically. owner appear luigi's omo has
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chilled wine in preparation for an in-house trade fair he plans for october to present new products to customers he's applied to his bank for a bridging loan backed by the state to secure his liquidity but it's been weeks since he submitted his request and he has yet to receive a payout is speed void that a lot of managers they had it all survived the war came about i think at the end this is also their skills. in this situation and that is on the rise but this is what is israel is a burning italian banks were already battling a credit crisis before the pandemic struck and are highly reluctant to lend right now 3 s. deep sea harbor normally serves the region's economy well but the pandemic has hit local export oriented businesses hard they're hoping for substantial aid from
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brussels. i think there should be direct intervention with the european commission should provide direct funding for major projects to improve infrastructure. and further develop technologies in the digital transformation of industry 4.0 this or did you that live at the gate restaurant tourism tree asked hope that you fans will pass them by either bistro owner savina fulling has almost given up hope of ever receiving adequate italian state aim to stay afloat. things cross guys nothing business with.
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combating the corona pandemic. where does research stand. what are scientists learning. background information and news. hour corona. covert 19 special next on d w. in the art of climate change.
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goodsome is to. the if. he is today how far future. dot com for the mega city the melting guests culture. after falling 9000 cases are spiking again in some regions and the fears of a 2nd wave are real the list of authorities around the world reimposing coronavirus willing to knock down is growing california has banned going to bars and eating inside in restaurants. south african authorities have
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reimposed a curfew and an alcohol ban. with no vaccine millions across the world face similar prospects if cope with 19 cases continue to grow. welcome to you covered out in special and dwi monica jones in berlin good to have you with us experts have been warning of a 2nd wave saying it would most likely hit in winter but as we know by now sars cove too is full of surprises israel manage the 1st wave really well but only weeks later the country is struggling with a new corona virus outbreak case numbers hit record highs this week the new normal 1st register your personal details and take a temperature check before you can enter a cafe in jerusalem student shot on live near spirit of the number of corona virus cases is once again bracing sharply she lost her part time job during the lockdown in march and april now she's facing renewed uncertainty and none for. work
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there but i want to create a health issues and the economic situation student.

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