Protesters outside the Greek parliament in Athens, wearing masks of German chancellor Angela Merkel and finance minister Wolfgang Schäuble, front left, and, centre, a man rallies against the European troika. Getty Images
Protesters outside the Greek parliament in Athens, wearing masks of German chancellor Angela Merkel and finance minister Wolfgang Schäuble, front left, and, centre, a man rallies against the European Show more

Merkel accused: are EU rules fixed to favour Germany above all?



Germany’s chancellor Angela Merkel is convinced that she’s doing everything in her power to rescue the floundering European Union from its crisis, without question the most dire of its existence. Soundly pro-European, she believes, as most Germans do, that their affluent, über-­liberal nation is unthinkable without the bloc, which laid the foundations for its post-war economy and for unification, too. But a host of observers, not least United States president Donald Trump, who met with Merkel last week, accuse the EU’s powerhouse economy of turning the EU into a vehicle that perpetuates Germany’s own well-being, increasingly at the risk of the union’s survival.

The pre-Brexit EU of 28 countries, which extends from Finland’s fjords to shores of Cyprus in the Mediterranean, boasts accolades aplenty, having guided the conflict-plagued continent through an unprecedented stretch of peace and prosperity. But en route to a fully unified continent – the goal inscribed in its founding treaty signed 60 years ago today – the EU has sputtered, stalled and lost its way, just as anti-EU populists are celebrating heydays in every member country.

“Brexit was a turning point,” says Gesine Schwan, a leading Social Democrat and former president of the European University Viadrina in Frankfurt. “The EU had been in a bad way for awhile, but with Brexit it was clear that the EU was in a process of disintegration, not any longer one of integration. Something drastic has to be done.”

Giles Merritt, editor of the Brussels-based journal Europe's World and book author, most recently of Slippery Slope: Europe's Troubled Future agrees that it's a mess. "The EU has become a ramshackle monstrosity. It's not in danger of collapsing but rather stagnating to death.

“All eyes look to Germany. Not just because it’s the biggest and most successful EU country, but more importantly because it’s the most politically stable state.”

Germany has become so dominant in the EU that many now call Berlin, not Brussels, the real capital of Europe. Germany’s former partner in EU politics, France, is currently led by a left-centre government hobbled by its deep unpopularity. France’s economy is faltering and the Eurosceptic far right leads opinion polls. For now Berlin appears to be on its own.

The problem, according to critics such as Schwan, is Germany’s self-serving attitude across issues from the eurozone to trade and the environment. “Germany uses the council to further its own short-term interests,” says Schwan, referring to the European Council, the EU’s collective presidency, comprised of the heads of the member states. “Since the banking crisis, Merkel and [finance minister Wolfgang] Schäuble have acted extremely irresponsibly, fighting for power rather than for policies that benefit the entire EU. And then in their own countries, the national leaders simply complain about the EU, as if they have nothing to do with it.” It’s no wonder, says Schwan, the EU scores so low in national polls.

Germany has come under heavy fire for its economic policies within the eurozone, the subset of 19 EU countries joined in a monetary union. Leading economists such as Joseph Stiglitz and Paul Krugman contend that the euro simply cannot work in an economic zone that is not tightly bound together, both economically and politically.

“The eurozone was flawed at birth,” Stiglitz argues. “The structure of the eurozone – the rules, regulations and institutions that govern it – is to blame for the poor performance of the region, including its multiple crises”. Given the economic diversity, there needs to be mechanisms “that can help those nations for which the policies are not well suited”.

Stiglitz and others contend that Germany, which benefits enormously from the euro, has imposed its traditional economic norms – tight, low-inflation monetary policy and conservative, low-debt fiscal policy – on the rest of the eurozone. This includes the countries of southern Europe, which, with very different economies than industrial powerhouse Germany, have suffered and, in the case of Greece, is unable to recover without debt relief, public and private-sector investment, or currency devaluation.

It’s not alone in this but Germany has refused to sacrifice economic sovereignty in order to turn the eurozone into a tightly bound economic entity in which its members, like the federal states in the US, Germany, or Canada, vouch for one another. Richer states come to the aid of poorer states, until they get back on their feet. “But Merkel rules out any further form of debt or risk sharing in the eurozone,” says Giegold, who notes that the establishment of an independent central bank, the ECB, was already a step in this direction, as were the massive bailouts of the southern Europeans. For the eurozone to function it must complete its integration, which means issuing eurobonds or instituting the likes of unemployment insurance, he says.

More conservative German economists argue that it has balanced its own books through restrictive economic policies, and so should others, too. They point out that country’s economy in the 2000s was in poor shape: joblessness soared, as did the national debt. “But Germany undertook reforms that cut taxes for those who could invest and loosened up labour laws,” says Jürgen Matthes, an economist at the Cologne Institute for Economic Research, who credits the pro-market reforms of the 2000s with Germany’s spectacular recovery. “Investment and spending did increase at the same time that Germany streamlined its economy,” he states, countering sceptics who claim countries such as Greece can’t slim down and recover at the same time. “Germany’s debt came down, too.”

Matthes believes that the German prescription is now bearing fruit in Spain and Portugal, where budgets were reined in, bad banks eliminated, and labour market reforms introduced. Their economies have turned the corner, he says. “Spain’s recovery shows that the German way is right,” he argues. Greece’s problem, he says, is that the left-wing Syriza government refuses to make the reforms demanded of it.

Another bone of contention is that Germany has chalked up record-busting trade surpluses in recent years, the 2016 surplus of €253 billion (Dh999bn) exceeded that of 2015, also a banner year, by €8bn. The turnover has resulted in much higher than expected tax revenues, too, to the tune of a €20bn surplus in 2016.

But here’s the rub: German exports benefit from a euro lower than a country like Germany would normally peg its national currency to (but which fits better the poorer eurozone countries) and also from extremely cheap debt-­financing, a consequence of the ECB’s purchases of sovereign bonds. To many, it looks like Germany has the rules fixed in its favour.

Critics believe Germany should spend those surpluses in a way that would benefit deficit countries, for example in mass infrastructure projects, the over spill – in foreign tourism, import purchases, wages for foreign workers – would spur the economies of eurozone nations still languishing from the debt crisis. France, the EU’s next largest economy, recorded its biggest deficit ever in 2016: €48.1bn. Economists, multilateral organisations and the Trump administration claim that Germany’s export-led growth creates imbalances that put the global economy at risk. There are counter arguments to all of these claims.

“It would be helpful if the Germans were less rigid,” says Merritt, “but you can’t blame them for a 60-year old institution that simply wasn’t made for globalisation and other conditions of the 21st century.”

It would be ideal for all the members states to sit down together and rethink the union, asking “what is Europe?” This is unlikely to happen with so much dissension among the 28. It’s more likely that the EU will slog along in its present form, incrementally fading until what’s left is just a tattered semblance of the dream behind the Treaty of Rome.

Paul Hockenos is the author of Berlin Calling: A Story of Anarchy, Music, the Wall, and the Birth of the New Berlin (The New Press).

Joker: Folie a Deux

Starring: Joaquin Phoenix, Lady Gaga, Brendan Gleeson

Director: Todd Phillips 

Rating: 2/5

In-demand jobs and monthly salaries
  • Technology expert in robotics and automation: Dh20,000 to Dh40,000 
  • Energy engineer: Dh25,000 to Dh30,000 
  • Production engineer: Dh30,000 to Dh40,000 
  • Data-driven supply chain management professional: Dh30,000 to Dh50,000 
  • HR leader: Dh40,000 to Dh60,000 
  • Engineering leader: Dh30,000 to Dh55,000 
  • Project manager: Dh55,000 to Dh65,000 
  • Senior reservoir engineer: Dh40,000 to Dh55,000 
  • Senior drilling engineer: Dh38,000 to Dh46,000 
  • Senior process engineer: Dh28,000 to Dh38,000 
  • Senior maintenance engineer: Dh22,000 to Dh34,000 
  • Field engineer: Dh6,500 to Dh7,500
  • Field supervisor: Dh9,000 to Dh12,000
  • Field operator: Dh5,000 to Dh7,000
Cryopreservation: A timeline
  1. Keyhole surgery under general anaesthetic
  2. Ovarian tissue surgically removed
  3. Tissue processed in a high-tech facility
  4. Tissue re-implanted at a time of the patient’s choosing
  5. Full hormone production regained within 4-6 months
Key facilities
  • Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
  • Premier League-standard football pitch
  • 400m Olympic running track
  • NBA-spec basketball court with auditorium
  • 600-seat auditorium
  • Spaces for historical and cultural exploration
  • An elevated football field that doubles as a helipad
  • Specialist robotics and science laboratories
  • AR and VR-enabled learning centres
  • Disruption Lab and Research Centre for developing entrepreneurial skills
Scoreline:

Everton 4

Richarlison 13'), Sigurdsson 28', ​​​​​​​Digne 56', Walcott 64'

Manchester United 0

Man of the match: Gylfi Sigurdsson (Everton)

Company%C2%A0profile
%3Cp%3E%3Cstrong%3ECompany%20name%3A%20%3C%2Fstrong%3EHayvn%3Cbr%3E%3Cstrong%3EStarted%3A%20%3C%2Fstrong%3E2018%3Cbr%3E%3Cstrong%3EFounders%3A%20%3C%2Fstrong%3EChristopher%20Flinos%2C%20Ahmed%20Ismail%3Cbr%3E%3Cstrong%3EBased%3A%20%3C%2Fstrong%3EAbu%20Dhabi%2C%20UAE%3Cbr%3E%3Cstrong%3ESector%3A%20%3C%2Fstrong%3Efinancial%3Cbr%3E%3Cstrong%3EInitial%20investment%3A%20%3C%2Fstrong%3Eundisclosed%3Cbr%3E%3Cstrong%3ESize%3A%3C%2Fstrong%3E%2044%20employees%3Cbr%3E%3Cstrong%3EInvestment%20stage%3A%20%3C%2Fstrong%3Eseries%20B%20in%20the%20second%20half%20of%202023%3Cbr%3E%3Cstrong%3EInvestors%3A%20%3C%2Fstrong%3EHilbert%20Capital%2C%20Red%20Acre%20Ventures%3C%2Fp%3E%0A
If you go
Where to stay: Courtyard by Marriott Titusville Kennedy Space Centre has unparalleled views of the Indian River. Alligators can be spotted from hotel room balconies, as can several rocket launch sites. The hotel also boasts cool space-themed decor.

When to go: Florida is best experienced during the winter months, from November to May, before the humidity kicks in.

How to get there: Emirates currently flies from Dubai to Orlando five times a week.
Guide to intelligent investing
Investing success often hinges on discipline and perspective. As markets fluctuate, remember these guiding principles:
  • Stay invested: Time in the market, not timing the market, is critical to long-term gains.
  • Rational thinking: Breathe and avoid emotional decision-making; let logic and planning guide your actions.
  • Strategic patience: Understand why you’re investing and allow time for your strategies to unfold.
 
 
Paatal Lok season two

Directors: Avinash Arun, Prosit Roy 

Stars: Jaideep Ahlawat, Ishwak Singh, Lc Sekhose, Merenla Imsong

Rating: 4.5/5

Formula Middle East Calendar (Formula Regional and Formula 4)
Round 1: January 17-19, Yas Marina Circuit – Abu Dhabi
 
Round 2: January 22-23, Yas Marina Circuit – Abu Dhabi
 
Round 3: February 7-9, Dubai Autodrome – Dubai
 
Round 4: February 14-16, Yas Marina Circuit – Abu Dhabi
 
Round 5: February 25-27, Jeddah Corniche Circuit – Saudi Arabia
You may remember …

Robbie Keane (Atletico de Kolkata) The Irish striker is, along with his former Spurs teammate Dimitar Berbatov, the headline figure in this season’s ISL, having joined defending champions ATK. His grand entrance after arrival from Major League Soccer in the US will be delayed by three games, though, due to a knee injury.

Dimitar Berbatov (Kerala Blasters) Word has it that Rene Meulensteen, the Kerala manager, plans to deploy his Bulgarian star in central midfield. The idea of Berbatov as an all-action, box-to-box midfielder, might jar with Spurs and Manchester United supporters, who more likely recall an always-languid, often-lazy striker.

Wes Brown (Kerala Blasters) Revived his playing career last season to help out at Blackburn Rovers, where he was also a coach. Since then, the 23-cap England centre back, who is now 38, has been reunited with the former Manchester United assistant coach Meulensteen, after signing for Kerala.

Andre Bikey (Jamshedpur) The Cameroonian defender is onto the 17th club of a career has taken him to Spain, Portugal, Russia, the UK, Greece, and now India. He is still only 32, so there is plenty of time to add to that tally, too. Scored goals against Liverpool and Chelsea during his time with Reading in England.

Emiliano Alfaro (Pune City) The Uruguayan striker has played for Liverpool – the Montevideo one, rather than the better-known side in England – and Lazio in Italy. He was prolific for a season at Al Wasl in the Arabian Gulf League in 2012/13. He returned for one season with Fujairah, whom he left to join Pune.

Vidaamuyarchi

Director: Magizh Thirumeni

Stars: Ajith Kumar, Arjun Sarja, Trisha Krishnan, Regina Cassandra

Rating: 4/5

 

The specs

AT4 Ultimate, as tested

Engine: 6.2-litre V8

Power: 420hp

Torque: 623Nm

Transmission: 10-speed automatic

Price: From Dh330,800 (Elevation: Dh236,400; AT4: Dh286,800; Denali: Dh345,800)

On sale: Now

MATCH INFO

World Cup 2022 qualifier

UAE v Indonesia, Thursday, 8pm

Venue: Al Maktoum Stadium, Dubai

Other workplace saving schemes
  • The UAE government announced a retirement savings plan for private and free zone sector employees in 2023.
  • Dubai’s savings retirement scheme for foreign employees working in the emirate’s government and public sector came into effect in 2022.
  • National Bonds unveiled a Golden Pension Scheme in 2022 to help private-sector foreign employees with their financial planning.
  • In April 2021, Hayah Insurance unveiled a workplace savings plan to help UAE employees save for their retirement.
  • Lunate, an Abu Dhabi-based investment manager, has launched a fund that will allow UAE private companies to offer employees investment returns on end-of-service benefits.
SQUADS

India
Virat Kohli (captain), Rohit Sharma (vice-captain), Shikhar Dhawan, Ajinkya Rahane, Manish Pandey, Kedar Jadhav, Dinesh Karthik, Mahendra Singh Dhoni (wicketkeeper), Hardik Pandya, Axar Patel, Kuldeep Yadav, Yuzvendra Chahal, Jasprit Bumrah, Bhuvneshwar Kumar, Shardul Thakur

New Zealand
Kane Williamson (captain), Martin Guptill, Colin Munro, Ross Taylor, Tom Latham (wicketkeeper), Henry Nicholls, Ish Sodhi, George Worker, Glenn Phillips, Matt Henry, Colin de Grandhomme, Mitchell Santner, Tim Southee, Adam Milne, Trent Boult

The specs

Engine: Four electric motors, one at each wheel

Power: 579hp

Torque: 859Nm

Transmission: Single-speed automatic

Price: From Dh825,900

On sale: Now

The specs
Engine: 77.4kW all-wheel-drive dual motor
Power: 320bhp
Torque: 605Nm
Transmission: Single-speed automatic
Price: From Dh219,000
On sale: Now