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).
Company Profile
Company name: Cargoz
Date started: January 2022
Founders: Premlal Pullisserry and Lijo Antony
Based: Dubai
Number of staff: 30
Investment stage: Seed
COMPANY PROFILE
Company name: Revibe
Started: 2022
Founders: Hamza Iraqui and Abdessamad Ben Zakour
Based: UAE
Industry: Refurbished electronics
Funds raised so far: $10m
Investors: Flat6Labs, Resonance and various others
RESULTS - ELITE MEN
1. Henri Schoeman (RSA) 57:03
2. Mario Mola (ESP) 57:09
3. Vincent Luis (FRA) 57:25
4. Leo Bergere (FRA)57:34
5. Jacob Birtwhistle (AUS) 57:40
6. Joao Silva (POR) 57:45
7. Jonathan Brownlee (GBR) 57:56
8. Adrien Briffod (SUI) 57:57
9. Gustav Iden (NOR) 57:58
10. Richard Murray (RSA) 57:59
Pakistan v New Zealand Test series
Pakistan: Sarfraz (c), Hafeez, Imam, Azhar, Sohail, Shafiq, Azam, Saad, Yasir, Asif, Abbas, Hassan, Afridi, Ashraf, Hamza
New Zealand: Williamson (c), Blundell, Boult, De Grandhomme, Henry, Latham, Nicholls, Ajaz, Raval, Sodhi, Somerville, Southee, Taylor, Wagner
Umpires: Bruce Oxerford (AUS) and Ian Gould (ENG); TV umpire: Paul Reiffel (AUS); Match referee: David Boon (AUS)
Tickets and schedule: Entry is free for all spectators. Gates open at 9am. Play commences at 10am
COMPANY PROFILE
Name: Haltia.ai
Started: 2023
Co-founders: Arto Bendiken and Talal Thabet
Based: Dubai, UAE
Industry: AI
Number of employees: 41
Funding: About $1.7 million
Investors: Self, family and friends
360Vuz PROFILE
Date started: January 2017
Founder: Khaled Zaatarah
Based: Dubai and Los Angeles
Sector: Technology
Size: 21 employees
Funding: $7 million
Investors: Shorooq Partners, KBW Ventures, Vision Ventures, Hala Ventures, 500Startups, Plug and Play, Magnus Olsson, Samih Toukan, Jonathan Labin
Our legal consultant
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
How to avoid getting scammed
- Never click on links provided via app or SMS, even if they seem to come from authorised senders at first glance
- Always double-check the authenticity of websites
- Enable Two-Factor Authentication (2FA) for all your working and personal services
- Only use official links published by the respective entity
- Double-check the web addresses to reduce exposure to fake sites created with domain names containing spelling errors
Zayed Sustainability Prize
DEADPOOL & WOLVERINE
Starring: Ryan Reynolds, Hugh Jackman, Emma Corrin
Director: Shawn Levy
Rating: 2.5/5
ALRAWABI SCHOOL FOR GIRLS
Creator: Tima Shomali
Starring: Tara Abboud, Kira Yaghnam, Tara Atalla
Rating: 4/5
THE BIO
Bio Box
Role Model: Sheikh Zayed, God bless his soul
Favorite book: Zayed Biography of the leader
Favorite quote: To be or not to be, that is the question, from William Shakespeare's Hamlet
Favorite food: seafood
Favorite place to travel: Lebanon
Favorite movie: Braveheart
SPECS
Engine: 4-litre V8 twin-turbo
Power: 630hp
Torque: 850Nm
Transmission: 8-speed Tiptronic automatic
Price: From Dh599,000
On sale: Now
RESULTS
Time; race; prize; distance
4pm: Maiden; (D) Dh150,000; 1,200m
Winner: General Line, Xavier Ziani (jockey), Omar Daraj (trainer)
4.35pm: Maiden (T); Dh150,000; 1,600m
Winner: Travis County, Adrie de Vries, Ismail Mohammed
5.10pm: Handicap (D); Dh175,000; 1,200m
Winner: Scrutineer, Tadhg O’Shea, Ali Rashid Al Raihe
5.45pm: Maiden (D); Dh150,000; 1,600m
Winner: Yulong Warrior, Richard Mullen, Satish Seemar
6.20pm: Maiden (D); Dh150,000; 1,600m
Winner: Ejaaby, Jim Crowley, Doug Watson
6.55pm: Handicap (D); Dh160,000; 1,600m
Winner: Storyboard, Richard Mullen, Satish Seemar
7.30pm: Handicap (D); Dh150,000; 2,200m
Winner: Grand Dauphin, Gerald Mosse, Ahmed Al Shemaili
8.05pm: Handicap (T); Dh190,000; 1,800m
Winner: Good Trip, Tadhg O’Shea, Ali Rashid Al Raihe
Living in...
This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
Match info
Athletic Bilbao 0
Real Madrid 1 (Ramos 73' pen)
Kill
Director: Nikhil Nagesh Bhat
Starring: Lakshya, Tanya Maniktala, Ashish Vidyarthi, Harsh Chhaya, Raghav Juyal
Rating: 4.5/5
RESULTS
6.30pm: Emirates Holidays Maiden (TB) Dh 82,500 (Dirt) 1,900m
Winner: Lady Snazz, Richard Mullen (jockey), Satish Seemar (trainer).
7.05pm: Arabian Adventures Maiden (TB) Dh 82,500 (D) 1,200m
Winner: Zhou Storm, Connor Beasley, Ali Rashid Al Raihe.
7.40pm: Emirates Skywards Handicap (TB) Dh 82,500 (D) 1,200m
Winner: Rich And Famous, Royston Ffrench, Salem bin Ghadayer.
8.15pm: Emirates Airline Conditions (TB) Dh 120,000 (D) 1,400m
Winner: Rio Angie, Sam Hitchcock, Doug Watson.
8.50pm: Emirates Sky Cargo (TB) Dh 92,500 (D) 1,400m
Winner: Kinver Edge, Richard Mullen, Satish Seemar.
9.15pm: Emirates.com (TB) Dh 95,000 (D) 2,000m
Winner: Firnas, Xavier Ziani, Salem bin Ghadayer.
The Bio
Name: Lynn Davison
Profession: History teacher at Al Yasmina Academy, Abu Dhabi
Children: She has one son, Casey, 28
Hometown: Pontefract, West Yorkshire in the UK
Favourite book: The Alchemist by Paulo Coelho
Favourite Author: CJ Sansom
Favourite holiday destination: Bali
Favourite food: A Sunday roast
COMPANY PROFILE
Name: Xpanceo
Started: 2018
Founders: Roman Axelrod, Valentyn Volkov
Based: Dubai, UAE
Industry: Smart contact lenses, augmented/virtual reality
Funding: $40 million
Investor: Opportunity Venture (Asia)
Tips for job-seekers
- Do not submit your application through the Easy Apply button on LinkedIn. Employers receive between 600 and 800 replies for each job advert on the platform. If you are the right fit for a job, connect to a relevant person in the company on LinkedIn and send them a direct message.
- Make sure you are an exact fit for the job advertised. If you are an HR manager with five years’ experience in retail and the job requires a similar candidate with five years’ experience in consumer, you should apply. But if you have no experience in HR, do not apply for the job.
David Mackenzie, founder of recruitment agency Mackenzie Jones Middle East
MATCH INFO
FA Cup final
Chelsea 1
Hazard (22' pen)
Manchester United 0
Man of the match: Eden Hazard (Chelsea)
UAE athletes heading to Paris 2024
Equestrian
Abdullah Humaid Al Muhairi, Abdullah Al Marri, Omar Al Marzooqi, Salem Al Suwaidi, and Ali Al Karbi (four to be selected).
Judo
Men: Narmandakh Bayanmunkh (66kg), Nugzari Tatalashvili (81kg), Aram Grigorian (90kg), Dzhafar Kostoev (100kg), Magomedomar Magomedomarov (+100kg); women's Khorloodoi Bishrelt (52kg).
Cycling
Safia Al Sayegh (women's road race).
Swimming
Men: Yousef Rashid Al Matroushi (100m freestyle); women: Maha Abdullah Al Shehi (200m freestyle).
Athletics
Maryam Mohammed Al Farsi (women's 100 metres).
Results
Stage 7:
1. Caleb Ewan (AUS) Lotto Soudal - 3:18:29
2. Sam Bennett (IRL) Deceuninck-QuickStep - same time
3. Phil Bauhaus (GER) Bahrain Victorious
4. Michael Morkov (DEN) Deceuninck-QuickStep
5. Cees Bol (NED) Team DSM
General Classification:
1. Tadej Pogacar (SLO) UAE Team Emirates - 24:00:28
2. Adam Yates (GBR) Ineos Grenadiers - 0:00:35
3. Joao Almeida (POR) Deceuninck-QuickStep - 0:01:02
4. Chris Harper (AUS) Jumbo-Visma - 0:01:42
5. Neilson Powless (USA) EF Education-Nippo - 0:01:45
Key changes
Commission caps
For life insurance products with a savings component, Peter Hodgins of Clyde & Co said different caps apply to the saving and protection elements:
• For the saving component, a cap of 4.5 per cent of the annualised premium per year (which may not exceed 90 per cent of the annualised premium over the policy term).
• On the protection component, there is a cap of 10 per cent of the annualised premium per year (which may not exceed 160 per cent of the annualised premium over the policy term).
• Indemnity commission, the amount of commission that can be advanced to a product salesperson, can be 50 per cent of the annualised premium for the first year or 50 per cent of the total commissions on the policy calculated.
• The remaining commission after deduction of the indemnity commission is paid equally over the premium payment term.
• For pure protection products, which only offer a life insurance component, the maximum commission will be 10 per cent of the annualised premium multiplied by the length of the policy in years.
Disclosure
Customers must now be provided with a full illustration of the product they are buying to ensure they understand the potential returns on savings products as well as the effects of any charges. There is also a “free-look” period of 30 days, where insurers must provide a full refund if the buyer wishes to cancel the policy.
“The illustration should provide for at least two scenarios to illustrate the performance of the product,” said Mr Hodgins. “All illustrations are required to be signed by the customer.”
Another illustration must outline surrender charges to ensure they understand the costs of exiting a fixed-term product early.
Illustrations must also be kept updatedand insurers must provide information on the top five investment funds available annually, including at least five years' performance data.
“This may be segregated based on the risk appetite of the customer (in which case, the top five funds for each segment must be provided),” said Mr Hodgins.
Product providers must also disclose the ratio of protection benefit to savings benefits. If a protection benefit ratio is less than 10 per cent "the product must carry a warning stating that it has limited or no protection benefit" Mr Hodgins added.
ANDROID VERSION NAMES, IN ORDER
Android Alpha
Android Beta
Android Cupcake
Android Donut
Android Eclair
Android Froyo
Android Gingerbread
Android Honeycomb
Android Ice Cream Sandwich
Android Jelly Bean
Android KitKat
Android Lollipop
Android Marshmallow
Android Nougat
Android Oreo
Android Pie
Android 10 (Quince Tart*)
Android 11 (Red Velvet Cake*)
Android 12 (Snow Cone*)
Android 13 (Tiramisu*)
Android 14 (Upside Down Cake*)
Android 15 (Vanilla Ice Cream*)
* internal codenames