BERLIN //After last week's EU summit, the German chancellor Angela Merkel does not deserve the epithet "Iron Chancellor" some commentators have given her.
True, Mrs Merkel came home with an agreement that should spare her a major domestic political headache. But she failed to secure backing for several key changes that would have made the single currency significantly more protected against storms.
Financial markets are understandably unimpressed, as an increase in risk premiums on the sovereign debt of ailing economies such as Greece and Ireland showed on Friday.
Mrs Merkel managed to strong-arm fellow leaders at the two-day meeting in Brussels into giving tentative backing for something most of them had been bitterly opposed to - a change in the wording of the Lisbon EU treaty to provide a permanent mechanism for handling future debt crises once the existing €440 billion (Dh2.26 trillion) safety net expires in mid-2013.
While everyone agrees the EU needs a permanent rescue scheme, the German demand for a treaty amendment means more arduous national ratification procedures and even referendums in some countries including Ireland, which had rejected the Lisbon Treaty in 2008.
The treaty, which streamlines decision making in the EU after its expansion to 27 members in 2004, only came into force last December after eight years of negotiation.
Mrs Merkel desperately needs the amendment to assuage the German constitutional court, which is due to rule on the legality of Berlin's contribution to the euro rescue fund, hastily arranged in May to fend off speculators on the single currency after Greece almost went bankrupt.
With a permanent, legally binding mechanism in place, she will not have to negotiate the extension of the safety net - a deeply unpopular measure in Germany where voters are incensed at having had to bail out high-debt nations - in 2013. Mrs Merkel faces a general election that year.
The treaty amendment would also provide the legal foundation for forcing private-sector bondholders to be involved in future bailouts, another German demand.
Herman Van Rompuy, the president of the European Council, will now sound out possibilities for an amendment that will be small enough to avoid a full round of ratifications and referendums. Mr Van Rompuy will report back at the EU summit in December.
Job done, Mrs Merkel, a master at side-stepping political mines, would have thought as she flew back to Berlin on Friday.
Not so. To achieve her goal, the "Iron Chancellor" went soft on the reform of the Stability Pact, the agreement designed to ensure fiscal discipline and thereby underpin the stability of the currency.
Two weeks before the summit, Mrs Merkel had procured the support of Nicolas Sarkozy, the French president, for a treaty change by dropping her demand for a quasi-automatic system of penalties on nations that persistently exceed the budget deficit ceiling of 3 per cent of GDP.
That means it will remain up to the EU's political leaders to decide who gets fined. So far, in the 13 years since the pact came into force, no country has ever been punished, even though the deficit limits have been breached dozens of times. Nations always managed to talk their way out of that painful trip to the headmaster.
So even though the EU summit endorsed plans by the European Commission, the bloc's executive body, for tougher budget rules the likelihood they will be rigorously applied remains slim.
Mrs Merkel also failed to get support for her demand that deficit wrongdoers should have their EU voting rights suspended.
For the moment, despite the evident lack of progress on the Stability Pact, the euro remains strong largely because Germany, by far the biggest economy in the EU, is booming.
But the strength of the currency is making life harder for exporters in troubled economies such as Greece and Portugal, and thereby threatens to widen economic imbalances within the 16-nation euro zone.
Last week's summit was an example of classic EU horse-trading. Investors would be foolish to believe the leaders' claims that significant progress has been made in protecting the single currency.
[ business@thenational.ae ]
The specs
Engine: 2.0-litre 4cyl turbo
Power: 261hp at 5,500rpm
Torque: 400Nm at 1,750-4,000rpm
Transmission: 7-speed dual-clutch auto
Fuel consumption: 10.5L/100km
On sale: Now
Price: From Dh129,999 (VX Luxury); from Dh149,999 (VX Black Gold)
A QUIET PLACE
Starring: Lupita Nyong'o, Joseph Quinn, Djimon Hounsou
Director: Michael Sarnoski
Rating: 4/5
The bio
Favourite book: Kane and Abel by Jeffrey Archer
Favourite quote: “The world makes way for the man who knows where he is going.” - Ralph Waldo Emerson, American essayist
Favourite Authors: Arab poet Abu At-Tayyib Al-Mutanabbi
Favourite Emirati food: Luqaimat, a deep-fried dough soaked in date syrup
Hobbies: Reading and drawing
Student Of The Year 2
Director: Punit Malhotra
Stars: Tiger Shroff, Tara Sutaria, Ananya Pandey, Aditya Seal
1.5 stars
Fresh faces in UAE side
Khalifa Mubarak (24) An accomplished centre-back, the Al Nasr defender’s progress has been hampered in the past by injury. With not many options in central defence, he would bolster what can be a problem area.
Ali Salmeen (22) Has been superb at the heart of Al Wasl’s midfield these past two seasons, with the Dubai club flourishing under manager Rodolfo Arrubarrena. Would add workrate and composure to the centre of the park.
Mohammed Jamal (23) Enjoyed a stellar 2016/17 Arabian Gulf League campaign, proving integral to Al Jazira as the capital club sealed the championship for only a second time. A tenacious and disciplined central midfielder.
Khalfan Mubarak (22) One of the most exciting players in the UAE, the Al Jazira playmaker has been likened in style to Omar Abdulrahman. Has minimal international experience already, but there should be much more to come.
Jassim Yaqoub (20) Another incredibly exciting prospect, the Al Nasr winger is becoming a regular contributor at club level. Pacey, direct and with an eye for goal, he would provide the team’s attack an extra dimension.
Zakat definitions
Zakat: an Arabic word meaning ‘to cleanse’ or ‘purification’.
Nisab: the minimum amount that a Muslim must have before being obliged to pay zakat. Traditionally, the nisab threshold was 87.48 grams of gold, or 612.36 grams of silver. The monetary value of the nisab therefore varies by current prices and currencies.
Zakat Al Mal: the ‘cleansing’ of wealth, as one of the five pillars of Islam; a spiritual duty for all Muslims meeting the ‘nisab’ wealth criteria in a lunar year, to pay 2.5 per cent of their wealth in alms to the deserving and needy.
Zakat Al Fitr: a donation to charity given during Ramadan, before Eid Al Fitr, in the form of food. Every adult Muslim who possesses food in excess of the needs of themselves and their family must pay two qadahs (an old measure just over 2 kilograms) of flour, wheat, barley or rice from each person in a household, as a minimum.
The specs
Engine: 6.2-litre V8
Transmission: ten-speed
Power: 420bhp
Torque: 624Nm
Price: Dh325,125
On sale: Now
Killing of Qassem Suleimani
SPECS
Engine: 1.5-litre turbo
Power: 181hp
Torque: 230Nm
Transmission: 6-speed automatic
Starting price: Dh79,000
On sale: Now
Notable groups (UAE time)
Jordan Spieth, Si Woo Kim, Henrik Stenson (12.47pm)
Justin Thomas, Justin Rose, Louis Oosthuizen (12.58pm)
Hideki Matsuyama, Brooks Koepka, Tommy Fleetwood (1.09pm)
Sergio Garcia, Jason Day, Zach Johnson (4.04pm)
Rickie Fowler, Paul Casey, Adam Scott (4.26pm)
Dustin Johnson, Charl Schwartzel, Rory McIlroy (5.48pm)
You Were Never Really Here
Director: Lynne Ramsay
Starring: Joaquim Phoenix, Ekaterina Samsonov
Four stars
Results:
Women:
1. Rhiannan Iffland (AUS) 322.95 points
2. Lysanne Richard (CAN) 285.75
3. Ellie Smart (USA) 277.70
Men:
1. Gary Hunt (GBR) 431.55
2. Constantin Popovici (ROU) 424.65
3. Oleksiy Prygorov (UKR) 392.30
the pledge
I pledge to uphold the duty of tolerance
I pledge to take a first stand against hate and injustice
I pledge to respect and accept people whose abilities, beliefs and culture are different from my own
I pledge to wish for others what I wish for myself
I pledge to live in harmony with my community
I pledge to always be open to dialogue and forgiveness
I pledge to do my part to create peace for all
I pledge to exercise benevolence and choose kindness in all my dealings with my community
I pledge to always stand up for these values: Zayed's values for tolerance and human fraternity
ROUTE TO TITLE
Round 1: Beat Leolia Jeanjean 6-1, 6-2
Round 2: Beat Naomi Osaka 7-6, 1-6, 7-5
Round 3: Beat Marie Bouzkova 6-4, 6-2
Round 4: Beat Anastasia Potapova 6-0, 6-0
Quarter-final: Beat Marketa Vondrousova 6-0, 6-2
Semi-final: Beat Coco Gauff 6-2, 6-4
Final: Beat Jasmine Paolini 6-2, 6-2
Company profile
Company name: Hayvn
Started: 2018
Founders: Christopher Flinos, Ahmed Ismail
Based: Abu Dhabi, UAE
Sector: financial
Initial investment: undisclosed
Size: 44 employees
Investment stage: series B in the second half of 2023
Investors: Hilbert Capital, Red Acre Ventures
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).
Company Profile
Company name: Cargoz
Date started: January 2022
Founders: Premlal Pullisserry and Lijo Antony
Based: Dubai
Number of staff: 30
Investment stage: Seed
The Emperor and the Elephant
Author: Sam Ottewill-Soulsby
Publisher: Princeton University Press
Pages: 392
Available: July 11
The Bio
Hometown: Bogota, Colombia
Favourite place to relax in UAE: the desert around Al Mleiha in Sharjah or the eastern mangroves in Abu Dhabi
The one book everyone should read: 100 Years of Solitude by Gabriel Garcia Marquez. It will make your mind fly
Favourite documentary: Chasing Coral by Jeff Orlowski. It's a good reality check about one of the most valued ecosystems for humanity
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
Company Profile
Company name: Namara
Started: June 2022
Founder: Mohammed Alnamara
Based: Dubai
Sector: Microfinance
Current number of staff: 16
Investment stage: Series A
Investors: Family offices
How to register as a donor
1) Organ donors can register on the Hayat app, run by the Ministry of Health and Prevention
2) There are about 11,000 patients in the country in need of organ transplants
3) People must be over 21. Emiratis and residents can register.
4) The campaign uses the hashtag #donate_hope
Our legal consultant
Name: Dr Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.