market as the aerospace engineer sees the credit rating cut. >>> and the european commission reportedly strikes a deal with roche to supply covid-19 treatments to eu member states but the swiss drug maker telling us it's committed to meeting the needs of patients worldwide. >>> and the stock markets here in europe have been trading for an hour so we'll we'll dive into what we're witnessing the market has moving slightly positive modest gains here. not exactly keeping pace with wall street where we've seen gains on the three major indexes but markets have been softer especially on the core markets there's been a lot of german stocks, in particular. it's been slightly disappointing week in terms of pace of acceleration for stocks here as the heat map is telling you, there's fairly evenly split trade between some of the gainers and losers on the market you can see it at a sector level where it was playing out a quick look at the boards for the european markets you can see how the individual ones are faring. a little bit cautious today. we had the stimulus yesterday but a lot of had been pr

commission the central sort of executive body of the european union will raise the money for this fund centrally borrow it on the financial markets and that's something that it hasn't done before and that's something that was not done during the financial crisis 10 years ago and the something that germany's always been against this idea of kind of shared debt across the european union so that is essentially merkel showing that germany is prepared to compromise germany is prepared to go beyond its previous positions and it expects other countries to do the saying so a new heads of state and government. about this recovery fund next week one of the hurdles that have to be overcome. yeah well will certainly the there are plenty of heads that still need knocking together not everyone has been persuaded yet by uncle americal in particular there's a small group of countries that have earned the moniker the frugal for some smaller northern european countries that would usually be allied with germany on this sort of thing but germany has now moved out ahead of them they're worried about the si

commission is expected to feel the ruling to the european court of justice and. earlier this year then irish prime minister lavrov current apple chief executive tim cook had an anniversary to celebrate 40 years since apple started manufacturing in ireland over the decades the e.u. country in the us i phone maker have both profited from the arrangement apple gets a massive tax break but it provides employment for multinational companies the favorable situation in ireland is practically unrivaled in europe at the moment firms officially pay 12.5 percent corporate tax and ireland that's compared with the e.u. average of 21.3 percent officially companies in germany have to cough up at least 30 percent. that alone has attracted many companies to ireland and in fact apple paid far less tax at times for example is little is 0.005 percent in 2014 when the tech giant paid just 50 euros tax on every 1000000 euros in profit. that was the last straw for e.u. competition commissioner my creative us here in 2060 in the european commission ordered apple to pay ireland 130000000

commission had pursued the case says it has yet to decide whether to appeal to the european court of justice you're watching news from berlin i'll be back at the top of the hour with more will be used followed by the day i think to see event. combating the pandemic. where does research stand. what are scientists learning.

been watching some scenes there from the european parliament in brussels we saw the european commission president jose left on the line speaking there about the unprecedented challenge for it presented by the coronavirus pandemic and just before that we saw chancellor angela merkel delivering a statement outlining germany's priorities for a 6 month you counsel presidency which it took over in july 1st we should say this was the chancellor's 1st trip abroad since the pandemic and she talked about the need for cohesion and solidarity in taking on the challenges of this pandemic and we have our chief political correspondent a crane with us here in studio and a richard walker has been over in brussels listening in to those statements as well wisher we'll start with you there in brussels we heard from chancellor merkel a pretty wide ranging speech she was really drilling down on some of those shared values in the european union how do you think that's going to go down there in brussels. well i think it was the kind of speech that we would have expected from. you know appealing on all sorts o

welcome the commission's plan for a recovery fund for a struggling for struggling european economies. but the chance of a 7 member states would need to compromise in order to sign off on the recovery fund before next month's summer recess diffidence than it might in some and if we are willing to overcome our differences and identify sched solutions if we are willing to view the world through the prism of others europe will emerge from the crisis stronger than ever if we strengthen cohesion and solidarity no one will get through this crisis alone we are all vulnerable. islands and 5 went. straight to brussels that we joined did of these that chief international editor richard walker welcome richard european leaders have been calling for greater unity amongst member states since forever so how does our going to merkel plan to make it happen this time. sensually she's saying the she and germany are prepared to provide leadership to the european union as they face up to this what she's been describing as the biggest crisis since the european union was founded and that process of germany k

on the election meddling the european commission president is under fire over a video supporting croatia's ruling policy that critics daybreak's a key code of conduct. to. a very warm welcome to you this is r.t. international with me nicky aaron it's great to have you with us now our top story this hour with the most countries in the world the zing back to normality following months of lockdown scientists are warning the virus is no longer being treated seriously enough more than $200.00 researchers and doctors have sent a collective letter to the w.h.o. saying the risks of airborne transmission are being ignored. we're concerned that the lack of recognition of the risk of airborne transmission of covert 19 and the lack of clear recommendations on the control measures against the airborne virus will have significant consequences all the warning comes of people around the globe have been flooding back to shops and bars restaurants and beaches artie's southgate tale has been assessing the risk of math contagion. when most who shed its restrictions on knocked out was lifted people wasted no t

commission is expected to appeal the ruling to the european court of justice. earlier this year and then irish prime minister current apple chief executive tim cook had an anniversary to celebrate 40 years since apple started manufacturing in our land over the decades the e.u. country in the us i phone maker have both profited from the arrangement. apple gets a massive tax break but it provides employment for multinational companies the favorable situation in ireland is practically unrivaled in europe at the moment firms officially pay 12.5 percent corporate tax in arland that's compared with the e.u. average of 21.3 percent officially companies in germany have to cough up at least 30 percent. that alone has attracted many companies to ireland and in fact apple paid far less tax at times for example is little is 0.005 percent in 2014 when the tech giant paid just 50 euros tax on every 1000000 euros in profit. that was the last straw for e.u. competition commissioner my creative s. here in 2016 the european commission ordered apple to pay ireland 13000000000 eur

loss to receive the relief funds the european commission will also undertake mass mutual borrowing for the 1st time. well as the current president of the council of the e.u. germany's chancellor angela merkel worked closely with france's president to forge this deal merkel said that she was very relieved and described the deal as quote a good signal she talked about how the leaders work their way toward an agreement. after a very long session we have reached a good conclusion and i'm very happy about that emmanuel mccrone the french president and i are sitting with you here today and we can say that between 18th of may our joint initiative on the 21st of july we have covered an important distance in which europe has shown that it is prepared to go in new ways in a very special situation. i believe that is necessary extraordinary events and in this case that's the pandemic that has reached a school demands extraordinary new methods. and this was in. the german chancellor speaking earlier let's go straight to correspondent maria strauss who is standing by in brussels marina walk us throu

commission is expected to appeal the ruling to the european court of justice. well i'm now joined by author sullivan from d.w. business who looks a little closer to the story it looks like a major vindication of countries a low tax policies like ireland so where does this leave the european commission in their fight against tax avoidance but it's definitely a blow hard symbolically it's a big blow but it is important to draw a distinction between this specific case and the wider fight against tax avoidance so this case looked at the issue of illegal stated did apple's specific arrangements in ireland amount to a legal state it the courts today said it didn't that the commission did not prove that it did under various levels under the verdict is quite clear in that regard over the wider issue that is that countries like ireland and the netherlands and so on so forth that the commission increasingly has been looking to the competition commissioner margaret vistar has been increasingly looking to tackle this issue and we're seeing more and more reports the commiss

commission e.u. commission is must abstain from making public statements or interventions on behalf of any political party of which they are members on this they are for expressed. to the president of the e.u. commission the rationale for such a prohibition is to prevent conflict of interest between the e.u. commission is to enforce. these of the member states and then national political allegiances now a spokesperson for the e.u. commission has tried to blame this on a mistake the president recorded a short soundbite for use in a video involving a number of european peoples party politicians it was meant as a contribution in her personal capacity regrettably this. made clear in the final version of the video but that's not appeasing everyone some say that she should be sanctioned. you should know that this violated the e.u. commission code of conduct. and should for that now when voted to lend became the commission president she laid down her own rules values for europeans to live by and that includ

has agreed with european commission. member states like victor hungary bad blood between the 2 men may remain despite that and underlying problems that haven't gone away macklin mccomas say the e.u. works. after a very long session we have reached a good conclusion and i am very happy about that. all. europe has shown that it is prepared to go in new ways in a very special situation i believe that is necessary extraordinary events and in this case that the pandemic that has reached us all demands extraordinary new methods towards. the whole thing may have been close mccrone says the deal they reached will help all 27 e.u. nations. i am convinced that there is a plan this budget resumed and you could have avoided economic and social challenges be able to move aging in our countries. it was a long fight 4 days of negotiations brought significant divisions to light but the deal stands and now everyone can go home. after war now we are joined by yanis a man you are lead to see is the director of studies at the european polic

and the election meddling the european commission president is under fire over a video supporting croatians ruling party critics a break to key code of conduct. a warm welcome is 4 pm here in moscow and you're watching r.t. international with me mickey aaron our top story with most countries in the world easing back to normality following months of lockdown scientists are warning the virus is no longer being treated seriously enough more than $200.00 researchers and doctors have sent a collective letter to the w.h.o. saying the risks of airborne transmission are being ignored. we're concerned that the lack of recognition of the risk of airborne transmission of coded 19 and the lack of clear recommendations on the control measures against the airborne virus will have significant consequences well the warning comes as people around the globe have been flooding back to shops bars restaurants and beaches saskia taylor has been assessing the risk of loss contagion. it's restrictions on lockdown was lifted people wasted no time in pounding the pavement no moss gloves though just some good old pre

european commission president who sort of underlying this to say as sure arved. good morning so after 3 days and 3 nights of negotiation marathon we are entering now in the crucial phase but i have the impression that if european leaders really want an agreement which they show the clear will to find a solution and we need a solution the european citizens need a solution the european union needs a solution needs an agreement to overcome this crisis and to prepare europe for the future i'm positive for today we're not there yet but things are moving in the right direction. stross in brussels remember just heard european commission president also off on the line sounding a more positive note this morning is this going to be settled today them. emmanuelle mccraw the french president also just arrived here at the e.u. summit building and brussels and he basically said the same thing he said that a compromise is in reach is possible but to stay is prudent because he doesn't want to strike a deal at the cost of european their use he also stressed that he'll continue wo

commission is expected to appeal the ruling to the european court of justice. the ruling hands of big legal victories apple the e.u. general court said the e.u. commission did not succeed in showing that the tech giant had received an illegal economic advantage in ireland over its low taxes. the decision is a major blow to competition commission amount creates a vest a is efforts to crack down on low tax regimes in the block. they commission fans who only behind the object if that all companies should pay their fair share of tax if member states gives certain multinational companies tax advantages not available to their rivals this harms fair competition in the e.u. the e.u. commission has 2 months time to decide if it wants to challenge the ruling in need use highest court the core of the problem is that the e.u. does not have one common tax code at the moment firms officially pay 12.5 percent corporate tax in ireland that's compared with the e.u. average of 21.3 percent officially companies in germany have to cough up at least 30 percent that alone has attrac

the european commission has given conditional approval for the use of antiviral rendez evie or making it the 1st also rise therapy to treat covered 9000 in the e.u. problem is the u.s. has already bought up most supplies of the drug also coming up another round of talks between britain and the e.u. have ended without success is a no deal bricks it unavoidable. and how the coronavirus pandemic turns an empty airport in spain into a look written business model. hello and welcome to the business i want to get johns and berlin good to have you with us the european commission has cleared the way for antiviral drug rim disease via to be used for treating coronavirus in the e.u. but this is a catch renda stevia is produced by a u.s. based gilliatt one of the most profitable pharmaceutical companies worldwide sales reaching 22000000000 dollars last year the u.s. has already bought up most of the drugs production capacity as negotiations with e.u. supplies are underway you officials say they could give german and all the e.u. drug makers a license to produce the drug even without to get approv

and was about from the use perspective does the european commission now need to change its approach to tackling what it sees is tax avoidance. well when you say showed my view is not a choice am i i don't think stage 8 was our bridges our end to deal with the issue of international types of weapons. and i don't think it's the appropriate makan ism and so we need a truly international approach to solving issues many of which arise simply from this much as between. rules in different countries and this issue primarily arose because arlen sense that these are all companies were resident in the united states in the united states that they were resident in our own john as a result they were resident nowhere that's not really something stalemate can solve and i'm not sure it's something the commission can solve. as to whether they will change their approach i don't know certainly i think the decision is not the defeats that many are making it out to be because. i believe that actually they won on the legal principle that they were trying to advance and that represents an extension of states'

at that point, the european commission was predicting a 7% decline for the european economy. it warned it could be much more severe in southern europe. course, the situation has really shifted from that point on. infections have managed to stay in check. we have seen european economies opening up. almost returning to something that looks like oral. so we could see the european commission perhaps be more optimistic. incan also see them factor the fact that the policy debate has shifted. of course, the recovery fund very much on the table, that they would not have to pile in more debt. you could argue that could be very good for their economy. the government definitely thinks that could be very good for them . manus: good morning to you. some of those numbers in terms of economic contraction are quite staggering. nearly 10% increase. the state of the markets. let's talk about the condition of the recovery fund. the approval. the tragedyst like of europe. battering a consensus. where are we? >> we know that this is going to be incredible. , it is a majore breakthrough if it happ

finally, the european commission president recognised this, there is a smaller european budget after brexit and what about the projects which matter? projects which, again, in the climate crisis, health fund, some of the projects also matter to european countries and their future post—pandemic if there is a post—pandemic, have either been reduced or cut back completely. lots of good questions. your thoughts on all of that? haven't theyjust broken a bunch of their fiscal rules? does it matter? where does all of this leave the actual engine of the european economy, the actual business functioning of europe? on the rules, i think yes, in a sense, they have, but covid has broken all the rules. we are not living in the same world in which the rules were made in the first instance. if you do not change your opinion when facts change you are stuck. i am not too worried about that. the cost of borrowing is going to remain very low and i do not think this is going to be economically a huge problem of repayment. it could give the eu extra powers in taxation. the contribution from member st

and then finally, and the european commission president recognised this, there is a smaller european budget post—brexit, and what about the projects which matter? projects which, again, in the climate crisis, health fund, some of the projects also matter to european countries and their future, post—pandemic, if there is a post—pandemic, have either been reduced or cut back completely. mm, lots of good questions there. arkady, your thoughts on all of that? haven't they just broken a bunch of their fiscal rules? does it matter? and where does all of this leave the actual engine of the european economy, the actual business functioning of europe? well, on the rules, yes, i think, in a sense, they have. but covid has broken all the rules. we are not living in the same world in which the rules were made in the first instance. if you do not change your opinion when facts change then you are stuck. i am not too worried about that. i think the cost of borrowing is going to remain very low and i don't think this is going to be economically a huge problem of repayment. it could give the e

indeed privacy shield was supposed to be an expression of how the european commission and the united states had agreed on such a formula however the court of justice claims that this formally out is not enough so what happens now with the privacy shield is that a lot of data transfers are going to have to be stopped so imagine the situation where may be in the in the absence of a moratorium on facial recognition facebook us wants to have access to photos uploaded on the facebook servers of facebook ireland and in the current framework and after this decision this is simply not going to be possible so now probably it's going to be a matter of the european commission going back to the drawing board and trying to draft a new framework agreement for data transfers to the u.s. and the ruling i understand doesn't just apply to data between the u.s. and the e.u. but also to non other e.u. countries what are the implications of this. the implications are quite straightforward the court of justice says that for any kind of laws. 3rd parties 3rd states we will need to apply the same standards

commission just yesterday for costing that the e.u. economy would contract by more than 8 percent this year that is really a dramatic contraction something that hasn't been seen in the european union's history so the idea is to put together a plan running to hundreds of billions of euros to stimulate the economy particularly in economies that have been worse hit because what we're seeing also from the economic data is that the impact of the coronavirus is not being in. evenly spread there are some countries that are being hard hit economically as well as by the pandemic much harder than others for example spain and italy they're really looking to miracle to provide leadership on that and as you've been speaking we've been looking at some pictures of chancellor merkel as you said she'd entered the chamber we saw the commission president underlined seated there as well i want to ask you about that economic recovery package because this is so important moving forward and yet there is some controversy over this hundreds of billions of euro

and the european commission has allowed french engineering a giant al stopped of by the trade making division of the canadian company well the 6000000000 euro acquisition will make el stomp the 2nd largest railway manufacturer after china's c r r c cooperation approval came on condition that al stomp would divest some of its assets while last year european regulators blocked out soms attempt to buy german engineering giant siemens over fears that the combined company would become too dominant. or at max's andor is covering this for you from brussels max great to see you why is the commission apparently just waving through this deal that despite their initial concerns yeah you said it already this is not the 1st time that the can that the european commission is dealing with an all star merger and last year the commission blocked a deal between all summons humans between because and to trust authorities were under the impression that this move would just make their company the combined company too powerful and harm competition in the block also and siemens back then weren't willing to

laws to receive the relief funds the european commission will also borrow money for the 1st time. well as the current president of the council of the e.u. germany's chancellor angela merkel worked closely with france's president emmanuel mock wrong to forge the deal merkel said that she was very relieved and described the deal as a good signal she praised european cooperation amid global challenges moment is screwed by them at the moment multilateralism is under pressure around the world and europe with its 27 member states has shown that it can act at a moment like this as we face unprecedented challenges. as this challenge is unfolding we'll only know what this means for our national economies in the coming months and every country has to then decide for itself whether it chooses to take unusual steps in such an unusual situation of big. let's go straight to our correspondent in brussels marina strauss a marina walk us through this momentous night of deal making. if either is agreed to to take on $300.00 or to hand out $390000000000.00 euros grant so money that doesn't have to b

meantime big tech in silicon valley face opposition from the european commission. she's gone after big tech companies before, but the latest, the likes of alphabet, google, facebook could face new complex laws designed to akle their market dominance and get them to pay more tax, also demand more responsibility for responsibility for content. they'll draft the new laws but the history has been they've come up with an anti-trust fine against google in the cost, demanded apple pay back taxes also the european data regulation designed here. so clearly there's history. stand by for the latest on that. >> also, uber set to take over one major food delivery service. what more do you have on that? >> you can expect more consolidation in the food delivery business. we're hearing reports that uber has inked a deal to buy the business postmates in a $2.65 billion agreement. we're waiting formal announ

council and the european commission and my hope is that the european consul with the drum presidency will pick up this important issue and so that we can. achieve an improvement of the situation because we know well not only the legal pushbacks but we have the devastating situations in the in the camps and therefore i hope with the german president see we can achieve progress to improve the situation given that we aren't here imagine a couple of times if this busy lack of of unity within the very very institutions of a new we've been speaking to the greek immigration minister not as a mr darcy. and pointed out this exactly this a survey is lack of solidarity. there is not sufficient support for relocating people who are there from the front line states to the rest of europe we currently have a 100 in 1000 feet are side i'm suggesting that if you understand what the asylum service is that's a huge burden for out of the 8 camps that's a big number we would need more support for other countries to help us with asylum seekers and refugees but at the same time you understand most beautifu

the european commission is out with its assessment of the european economy earlier on, warning that the coronavirus economic contraction will be bigger than anticipated earlier and the recovery will take longer than previously estimated, forecasting a 3.7% drop in growth this year. joining us from brussels, the european commission vice president. he oversees the economic forecast. thank you for your time. is the number that you have produced today a warning shot to european leaders that they need to make sure, next week, that they come up with a rescue plan, a rescue fund for europe? is this just further encouragement that that needs to happen? >> indeed. if we look at european conditions, the economic forecast, there are deeper recessions. forecast at 8.7% for the euro area and for the eu as a whole. gross next 5.8% year. we see that a recession is and it means that we need a ambitious and coordinated response. we took a lot of measures for the immediate crisis response and we see that these measures are bearing fruit. for example, if you look at unemployment rates, those are not as ba

heavily to spend on their recessionary economies and the european commission has said it expects. an average solver in debt across the e.u. this year to rise from about 75 percent to about 95 percent just on account of covert 19 therefore it's very important that there is a new entity the european commission that's willing to issue debt and to assume responsibility for that it will. course be paid off partly from the member states who are also responsible for the sovereign debt but it will also the commission hopes be partly paid for from independent resources and revenues that adds a 2nd very important dimension so what dylan is trying to do here and which the greeks are very much behind because greeks are staunchly federalist within the european union and have been for the last 40 years and that is that it creates a new power for the european commission to issue debt and to form policy on how to distribute that money and it creates the power for the european commission to levy taxes in order to service that i think that you'll find that in this country which has always believed

commission, he is -- since february 2020. our conversation today will be about the economy of the european union and about the european union's economic policy response to the covid-19 crisis, we will also touch upon the european union, european commissions, broader economic policy agenda as we hopefully recover from the crisis, it has been evolving fiscal institutions, its management of the european macro economy. it should be an interesting conversation, obviously of particular importance given the worldwide economic crisis we are suddenly found ourselves in. let me introduce my guests today, director general for economic and financial affairs in the european commission, prior to his current job, he was director general for structural reform support a topic we will touch on a little bit as well i imagine, prior to that he was deputy director general for economic and financial affairs. he also worked extensively on the so-called -- fund which we will talk about as well. anyway, with that introduction out of the way, i want t

european commission president goes off on the line was among several top european figures present. one after the other they showed their condolences by laying flowers. yes also included those were most impacted by the pandemic such as relatives of the victims. were excellent robbery when we had one when i speak of my brother i'm talking about all of them and remembering all of them. sad that he was 28 years old get ready he was 100 into their hosts a whole year on from other states and moving on last huss from. where you at the end of the half hour ceremony a minute of silence so $20000.00 deaths in spain across europe but it's all stands at over $180000.00 to talk more about the response to scuttle brussels correspondent barbara faisal as she's standing by there for us to see you barbara so how is you getting to grips with the pandemic. slowly because it's the beginning the european union pretty much failed member countries slammed the door shut their borders they turned their backs on their colleagues in the neighboring countries hoarded medical equipment and so on and so forth b