a glass maker now paying 20 times it's normal energy bill and it's got lots of sun and wind and it is it connected to the grid? so why has it taken so long for this spanish island to turn to renewable energy welcome to dw business. i'm christy plats and it's shaping up to be a big week for e. u. economic affairs. after the e. c. b announced an unprecedented rate hike yesterday. you. economic and finance ministers are gathering in prague for an informal meeting at the top of the agenda . the looming recession caused by high energy prices and record high inflation in europe. finance ministers will also be discussing financial support for war turn ukraine, german finance minister, kristian. linda announced he wants to push for the oil price cap agreed on by g 7 countries. i'm joined now by the ws bank league out who's at the conference in cod banneker to see you a lot of chatter about how to bring down prices for consumers. what options are

ministers considering the after the ease of either european central bank acted? yesterday, the board is known the feud of the finance ministers. they have to come up with some measures to fight inflations. and one of the former smithers would be a sound fiscal policy. so less step. but on the other side, they want to ease the pressure on prices for consumers. there are many 8 packages and the development a bit would actually heighten the debt of the finance ministers and the public good household. so it's very difficult to find a balance here. and ministers are not agreeing on what measures to take the southern countries. one more did the northern countries was one less that a and, but all agree that the inflation has to come down somehow. and the ministers don't have an actual direct impact on the prices here. okay. well, talking about agreement here, g 7 countries have been talking about a price cap on russian oil for months. russia and opec have been

a warning against it. now germany is pushing for it. why is that sledge? germany as the presidency of the g 7 announced today that they want to push for a price cap equity of g $7.00 has already agreed on a prize cap. and they want to shave off a revenues for russian estate or the companies. and so that the devil be no gains from this war any more for mr. putin. on the other hand, this, the danger of course is that doing this is the supply of oil for the volt market would go down and that, that could heighten price is actually on the other side again. so the g 7 is now looking for other customers of russia to join them to have this prize cap and to push the revenues of russia down. it's more political measure, it's not a direct impact on the price is worldwide actually. okay, well obviously a lot of our elements to debate,

there are any concrete proposals coming out of the meeting so far. well, no concrete proposals, but the minute have to agree or how to deal with public finances and fiscal policies. there must be a solution that cannot push it, or can, could kick the can down the road. so they have to come up with a ver rule how to get rid of public debt in the euro zone in order to avoid another crisis, which we have seen in 2015 was freeze. for example, this recession, this crisis can easily develop into as state debt crisis and also your crisis panting at and proc, thank you for that. europeans are being urged to save energy this winter to avoid shortages. for some companies that's impossible, leaving shutting down the only option dora likes is one of the world's most prominent glass produces, but it's soon won't be producing at all. the french company says it's halting

operations for 4 months this winter due to the cost of gas and electricity. jo, jose luis, the aquinas is no other way to save the business. lupita did it to be between january 2021 and january 2023. the price of electricity will have be multiplied by $22.00 and gas by 18. in these conditions are production lies. are worthless, your coldly for maintain production, our energy costs could represent, i'll to 40 percent of our turnover, which is untenable. looking at another, do, relics needs lots of energy. it's gas fired furnaces met glass turning it into tableware at $1400.00 degrees celsius. the current one to lety of energy prices is a nightmare for the company's boss that they're filled with. the 1st thing i do when i wake up in the morning is look at the daily change in electricity and gas

prices. it, yes, it's a family, a roller coaster, and the outlook for the future is complete and not so you wholesale, lose your corner says if the crisis goes on, it would mean the debt of the industry as he knows it. on to just discuss this further, am joy now by karen piddle of germany's etha center for energy climate and resources . karen, thanks for joining us. are these types of shut down? so we just heard about an example of what's happening all across europe, not just in france. yes, definitely. i mean, industry structure in different countries is different energy price likes also different electricity in france is among the worst in europe. but still this is can be observed all across europe. for example, in germany, the industry association, ah, estimates that about 10 percent of firms already decrease the production or shut it down. and it really boils down to the question, is whatever the firm produces,

replaceable by something else, so can they increase their prices because the product is absolutely needed, or is the import or the types of things that can be, can replace their product. and that basically determined switch lee way they have to pass on the prices to customers. ok, well 10 percent already shutting down. that's quite a dramatic number. i mean what, what would wide spread shut downs like these mean for the economy as a whole? that really depends crucially on which type of firms are actually um, shutting down if it's at the end of the value chain. so it's basically just the firm that is impacted. it's still not good for the economy. but if it's somewhere in the beginning of the value chain, so their product is used and other firms and other firms and so on, it can lead to cascading effects, and that would make things much worse. okay, well do we have any chance of avoiding this sort of worst case scenario? i mean, we're just talking about the cap on russian gas prices, for example. any way to get around this, this problem?

not completely. i mean, what we also just to where it is about the debt christ as a potential debt crisis and for the governments. so, i mean, the prices are there, the cost, so they apply energy and it really is the question, how can i go about that? i said those firms which are especially important for the economy and how can i prevent the others to shut down permanently. so kind of trying loan programs, trying also to support the workforce of the firms and keeping the workforce, excuse me, such that they don't have to lay people off. so it's about minimizing the impact. it's not about voiding it completely. that was karen pedal from the evo center for energy, climate and resources. thanks for that analysis. look now to some of the other global business stories making is today. the 1st ship to bring liquefied natural gas to a new terminal in the netherlands has arrived. the facility will be able to process up to 8000000 cubic meters of gas per year. it's part of europe's efforts to end

its use of russian gas. india has banned the export of some kinds of rice and has imposed a 20 percent duty on others. it aims to boost local supplies and com domestic prices. the decision was prompted by rice production falling due to below average rainfall. the spanish holiday island of la paloma relies primarily on dirty energy generated by a diesel power plant, even though it has plenty of sun and wind. energy operators are beginning to rethink, but it's going slowly. this small island became world famous after this volcano erupted last year for nearly 3 months. tall gaiters spewed lava bearing parts of the island, but another vent spewing smoke and carbon emissions in particular has garnered little attention. the transition to green energy is far away, but these women want to change that to look isn't laws again,

just as lies out of here. these blocks are called las windshield. this is where most of the islands energy is produced. this power plant cover is 90 percent of the island of energy needs, so that means only 10 percent of renewables in particular wind and photovoltaic lee for the will duyka. there are no power lines linking neighboring islands to le palma. its population relies on the diesel power plant despite an abundance of wind, which is already used to generate power at the local airport. so the question is, why can't the whole island use wind to generate energy? a defendant that i phone is not a yet but a hamper. there are several reasons they are areas for wind power with no grid available. we're not the power grid on the island is in pretty bad shape. latter. if this i was 20 miles in la, la la energy firm and desa operates the diesel power plant. and it has stakes in 2 small wind parks. clean energy hasn't been much of an issue for years, neither for the company nor the islands government,

but that is changing slowly said ha, now focusing on decentralized household production so that we can use the yield areas like loose and parking lot school. we had about a hallmark, amanda noreah, al bets home already has a solar panel. and she happily shows her energy bill 7 euros $0.03 a month by the envy of many here who now need to save as the islands. only energy consultancy has observed, you ha, say muscle, mina, we opened a month and a half ago. 90 percent of the questions are about renewable energy here. so people want to install solar panels on their roofs. finances black us photo, and i asked dick those at the power supplier continues to block renewables. the newly formed electricity cooperative now wants to install solar panels on a water reservoir. but i a question about i think it ended august it up everything that needs to happen fast takes a long time. we're not to. yeah. we have now applied for feet and point little i do

. but in desa rejected it right away because the transformer was too weak and, and i don't know. and we insisted now it could be enough money as patio or no, no us directly cow it up. but i think a c le palmer once we light on renewables, with hydro electric power plants supplying the island with energy at the end of the 19th century. but an desa shut down the islands, laughed hydroelectric power plant in 2003. that was our show. thank you for watching. ah ah, with

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