From left, Slovenia’s Foreign Minister Tanja Fajon, her Luxembourg counterpart Xavier Bettel and Palestinian Prime Minister Mohammad Mustafa at the meeting in Luxembourg. AFP
From left, Slovenia’s Foreign Minister Tanja Fajon, her Luxembourg counterpart Xavier Bettel and Palestinian Prime Minister Mohammad Mustafa at the meeting in Luxembourg. AFP
From left, Slovenia’s Foreign Minister Tanja Fajon, her Luxembourg counterpart Xavier Bettel and Palestinian Prime Minister Mohammad Mustafa at the meeting in Luxembourg. AFP
From left, Slovenia’s Foreign Minister Tanja Fajon, her Luxembourg counterpart Xavier Bettel and Palestinian Prime Minister Mohammad Mustafa at the meeting in Luxembourg. AFP

Europe urged 'the sooner, the better' in move to recognise Palestinian statehood


Sunniva Rose
  • English
  • Arabic

Several European Union countries have expressed interest in recognising Palestinian statehood ahead of a key international peace conference in June, Palestine's Prime Minister Mohammad Mustafa has said.

Speaking in Luxembourg alongside the EU's foreign affairs chief, Kaja Kallas, and Dubravka Suica, the European Commissioner for the Mediterranean, Mr Mustafa struck an optimistic tone despite scepticism that major EU powers such Germany, Italy and the Netherlands will align with France's call for co-ordinated recognition.

If you think it's important, then you do it
European diplomat

"I think we have heard some encouraging comments from some key members of the EU about their interest and willingness to consider seriously recognition in the near future, and I think the sooner, the better," Mr Mustafa said, answering a question from The National.

"Some of them are waiting for the June conference, the International Peace Conference, that will be held in New York on June 17 to make that announcement. But we do encourage countries to do that as soon as possible."

The Luxembourg talks marked the first high-level EU-Palestinian political dialogue, with Mr Mustafa meeting the bloc's 27 foreign ministers and holding bilateral meetings with his counterparts from Spain, the Netherlands, Malta, Luxembourg, Belgium and Malta.

EU officials described the meeting as part of Brussels' efforts to equally engage both Israel and the Palestinian Authority (PA), despite the latter lacking a formal association agreement with the bloc.

A former World Bank official, Mr Mustafa appears to have given a favourable impression to European diplomats. He was accompanied by Palestinian Foreign Minister, Varsen Aghabekian Shahinand, and Minister of Planning and International Co-operation, Wael Zakout.

"It's a real pleasure to have this first-ever high-level political dialogue and I hope that there are many, many more such meetings to come," Ms Kallas said. "Let me again express our solidarity with the Palestinian people at the appalling loss of life and destruction in Gaza."

Macron's plans for Palestine

While the EU supports a two-state solution and has condemned Israel's actions in Gaza and the occupied West Bank, the bloc is historically divided on the Israel-Palestine conflict, with limited influence on peace efforts. The EU remains, however, the biggest financial donor to the PA.

Yet French President Emmanuel Macron has recently emerged as a vocal advocate for Palestinian statehood. After a recent trip to Egypt near the Gaza border, Mr Macron said he would recognise Palestinian statehood at the conference in June. Speaking to the PA leader Mahmoud Abbas on Monday, Mr Macron said he wanted the authority to assume responsibility for Gaza from Hamas in a "day after" scenario once the war has ended. "This should allow progress towards a two-state political solution, with a view to the peace conference in June, in the service of peace and security for all," he said.

French President Emmanuel Macron and the Palestinian Authority's Minister for Heritage and Tourism Hani al-Hayek visit the Treasures Rescued from Gaza exhibition at the Arab World Institute in Paris. EPA
French President Emmanuel Macron and the Palestinian Authority's Minister for Heritage and Tourism Hani al-Hayek visit the Treasures Rescued from Gaza exhibition at the Arab World Institute in Paris. EPA

The Macron push is viewed as a significant shift in a country often seen as a mediator between pro-Palestine and pro-Israel EU countries. As a member of the Group of Seven and the UN Security Council, the French stance carries weight.

Mr Macron also aims to encourage western countries to follow suit while pushing for Arab states to establish relations with Israel. While Mr Macron has not clarified which Arab states he is alluding to, French diplomats and analysts have suggested Saudi Arabia. Riyadh has made it clear that establishing ties with Israel depends on a clear path to Palestinian statehood.

In a phone call with Mr Macron, Israeli Prime Minister Benjamin Netanyahu on Tuesday expressed his strong opposition to the French President's plans, saying "this would constitute a huge reward for terrorism", his office reported.

In Europe, Mr Macron's initiative has left many European diplomats puzzled. "It’s not obvious why Macron is doing it at this point in time and what is the impulse," one diplomat told The National.

Linking too many conditions to Palestinian recognition is unnecessary and complicated, a ministerial source from a pro-Palestinian EU country said. "If you think it's important, then you do it," they said. "[Even] if Saudi Arabia doesn’t follow, I would still encourage Macron to do it."

Despite Mr Macron's push, major EU players remain hesitant. The incoming German coalition government will be dominated by conservatives who will be reluctant to change decades of Middle East policy rooted in historical responsibility towards Israel.

The Netherlands last week summoned Israel's ambassador over the killing of aid workers in the Gaza Strip and has tightened arms exports controls, but domestic politics – dominated by anti-Islam populist politician Geert Wilders – make recognition unlikely.

In Italy, Prime Minister Giorgia Meloni hopes to capitalise politically on her proximity with US President Donald Trump, also Israel's strongest ally.

There are reports that Mr Macron may be able to convince the non-EU UK – also a G7 country and Security Council member – to join him in recognising Palestinian statehood in June. But British Prime Minister Keir Starmer has yet to express public support.

"This really depends on Macron's powers of persuasion," a second European diplomat said. "But who knows what might happen in European public opinions by June?"

Italy's decisive role

The prospect of unilateral recognition remains controversial. Israel has all but cut diplomatic ties with Spain, Ireland, Slovenia and non-EU Norway after they recognised Palestine last year. While 11 EU countries have recognises Palestine, many – such as Hungary and the Czech Republic – did so under Soviet-era governments and have since shifted to a pro-Israeli position. In total, 149 countries in the world recognise Palestine.

Italy could prove decisive. Analysts say that if enough EU countries join Mr Macron, Ms Meloni's government may face pressure to reconsider. Italy is a typical example of European "strategic ambiguity" – a reference to support for a two-state solution while refusing to recognise Palestinian statehood – said Maria Luisa Fantappie, the Head of Africa and Middle East Programme at Istituto Affari Internazionali, a think tank in Rome.

The tense relationship between Mr Macron and Ms Meloni – seen as rival power brokers in Europe – adds a personal edge. "There is definitely a strong womanship v strong manship issue at stake," Ms Fantappie told The National.

"But if Mr Macron's proposal is supported by many other EU member states, it will be very difficult for the Meloni government and her coalition partners to say that they will not support it – precisely because Italy has long traditional of support for Palestine."

Kelly Petillo, programme manager for the Middle East and North Africa at the European Council on Foreign Relations, said it was an unlikely move, highlighting Deputy Prime Minister Antonio Tajani's comment in February that "Palestine does not exist".

"While at the grass-roots level, people are expressing solidarity with the Palestinians, overall people are reluctant to question Israel’s military actions and the balance is tipped towards supporting Israel," Ms Petillo said. "People tend to be less familiar with the domestic politics in the country or Israel’s actions to oppress the Palestinians even before the Gaza war."

Europe's delicate balancing act on Palestine has been acknowledged at the highest level. Speaking on Tuesday, Ms Kallas said divisions were slowing down further sanctions against extremist settlers in the West Bank who harass or kill Palestinians. Pro-Israel EU countries want this to be accompanied by equivalent sanctions against Hamas, which is listed as a terror organisation. The EU has issued several rounds of sanctions against Hamas since the October 7 attacks on Israel in 2023.

"We have proposed sanctions. But so far, we don't have 27 member states on board. Some member states are saying that, yes, it should be on equal footing to put members of Hamas under sanctions," she said, answering a question from The National. "To be very clear, we have put many and there are not many left."

With time ticking towards the June 17 conference, momentum for recognising Palestine may hinge on Mr Macron's ability to turn declarations into a co-ordinated European policy announcement.

Timeline

2012-2015

The company offers payments/bribes to win key contracts in the Middle East

May 2017

The UK SFO officially opens investigation into Petrofac’s use of agents, corruption, and potential bribery to secure contracts

September 2021

Petrofac pleads guilty to seven counts of failing to prevent bribery under the UK Bribery Act

October 2021

Court fines Petrofac £77 million for bribery. Former executive receives a two-year suspended sentence 

December 2024

Petrofac enters into comprehensive restructuring to strengthen the financial position of the group

May 2025

The High Court of England and Wales approves the company’s restructuring plan

July 2025

The Court of Appeal issues a judgment challenging parts of the restructuring plan

August 2025

Petrofac issues a business update to execute the restructuring and confirms it will appeal the Court of Appeal decision

October 2025

Petrofac loses a major TenneT offshore wind contract worth €13 billion. Holding company files for administration in the UK. Petrofac delisted from the London Stock Exchange

November 2025

180 Petrofac employees laid off in the UAE

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The essentials

What: Emirates Airline Festival of Literature

When: Friday until March 9

Where: All main sessions are held in the InterContinental Dubai Festival City

Price: Sessions range from free entry to Dh125 tickets, with the exception of special events.

Hot Tip: If waiting for your book to be signed looks like it will be timeconsuming, ask the festival’s bookstore if they have pre-signed copies of the book you’re looking for. They should have a bunch from some of the festival’s biggest guest authors.

Information: www.emirateslitfest.com
 

COMPANY PROFILE
Name: Kumulus Water
 
Started: 2021
 
Founders: Iheb Triki and Mohamed Ali Abid
 
Based: Tunisia 
 
Sector: Water technology 
 
Number of staff: 22 
 
Investment raised: $4 million 

Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.

Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.

Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.

Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.

“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.

Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.

From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.

Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.

BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.

Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.

Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.

“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.

Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.

“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.

“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”

The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”

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Stormy seas

Weather warnings show that Storm Eunice is soon to make landfall. The videographer and I are scrambling to return to the other side of the Channel before it does. As we race to the port of Calais, I see miles of wire fencing topped with barbed wire all around it, a silent ‘Keep Out’ sign for those who, unlike us, aren’t lucky enough to have the right to move freely and safely across borders.

We set sail on a giant ferry whose length dwarfs the dinghies migrants use by nearly a 100 times. Despite the windy rain lashing at the portholes, we arrive safely in Dover; grateful but acutely aware of the miserable conditions the people we’ve left behind are in and of the privilege of choice. 

WandaVision

Starring: Elizabeth Olsen, Paul Bettany

Directed by: Matt Shakman

Rating: Four stars

Our legal consultants

Name: Hassan Mohsen Elhais

Position: legal consultant with Al Rowaad Advocates and Legal Consultants.

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Our legal consultants

Name: Hassan Mohsen Elhais

Position: legal consultant with Al Rowaad Advocates and Legal Consultants.

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Updated: April 15, 2025, 2:26 PM