German chancellor Angela Merkel is set to retire from her time at the helm of German politics. Markus Schreiber/AP Photo
German chancellor Angela Merkel is set to retire from her time at the helm of German politics. Markus Schreiber/AP Photo
German chancellor Angela Merkel is set to retire from her time at the helm of German politics. Markus Schreiber/AP Photo
German chancellor Angela Merkel is set to retire from her time at the helm of German politics. Markus Schreiber/AP Photo


Will Europe miss Merkel?


  • English
  • Arabic

September 26, 2021

“Tea,” a German friend said. “She loves English tea.” She, in this case, was Angela Merkel. After considerable persistence I had finally secured a rare interview with the German chancellor. Another friend, who worked for Mrs Merkel, had warned me she did not generally give interviews to foreign broadcasters. But I had a plan.

I had been fascinated by Mrs Merkel for years as the most important political leader in Europe, the one whose decisions in the 2008 financial crisis and the immigration crisis would decide the future of a continent. Would the EU survive rows over the euro? Greek protesters had compared Mrs Merkel’s austerity decisions to being occupied by the Nazis. Would Germany want to bail out the Greek and Italian economies that were so weak that some Germans said they should not have been allowed to join the common currency in the first place?

My own friends and family in Germany – Hamburg, Berlin, Freiburg, Munich – had mixed views on politics but they all respected the Chancellor sometimes referred to as “Mutti", or mummy.

Driving in a suburb in the old west Berlin, a German doctor friend slowed his car and pointed to apartment buildings in a pleasant but ordinary suburb. “The Merkels live there,” he said. It was an unremarkable middle-class life. They lived like – well, like normal people. "Frau Merkel" famously took pride in making breakfast for her husband every morning. My plan to secure the interview was to use what I knew to be at the core of Mrs Merkel’s Weltanschauung, her world view.

She is a Lutheran, the daughter of a Lutheran pastor who worked in the old East Germany. From 2008-17 Germany celebrated 500 years of the “Luther Decade”, the 10 years from 1508-17 when Martin Luther went from being a sceptical Catholic monk to a firebrand advocate of Protestantism. Before Luther, Germans could only hear about the Bible through Catholic priests who spoke Latin and who interpreted Christianity through the rulings of the Pope in faraway Rome. The Catholic church also imposed unpopular taxes in Germany to help build Rome’s St Peter’s basilica in 1506.

Luther translated the Bible into German. In an era of great religious ferment as a result of the invention of the printing press, (yes, again in Germany), citizens who could read were suddenly in possession of new information that contradicted teachings of the Catholic church.

Mrs Merkel agreed to the interview on the basis that I would be drawing some parallels between the disruption of Reformation Europe 500 years ago and the disruption across modern Europe in our new 21st-century information age, and she liked the idea. But I also wanted to draw a different parallel with the 21st century, the signs that Germans themselves were tiring of, and might even disrupt, the European project. Some hankered back to the days when they prospered under the old Deutschmark. The common European currency, the euro, meant that the thrifty hard-working German taxpayers were – in the view of many Germans – subsidising the less hard-working southern Europeans who had failed competently to manage their economies.

Germany's election is expected to see a broad coalition government come to power. AP Photo
Germany's election is expected to see a broad coalition government come to power. AP Photo
As she leaves power after 16 years in charge, her legacy is mixed

And so bearing English tea from Fortnum and Masons, and after brushing up my German so I could ask questions in that language if necessary, we met in the Chancellery, overlooking the wonderful new Reichstag building. Mrs Merkel entered the room with no fuss, no entourage. She accepted the tea and said wryly that the tea they usually served her in the Chancellery was awful. I suspected the German chancellor could have any tea she wanted, but she was charming and the interview went as planned.

She said that she would be happy for me to put questions in English but her translator would turn them into German. All went well until I suggested that German taxpayers in the 21st century resented their money going to wasteful projects in the south of Europe, and that this was just like German taxpayers in Luther’s time resenting their money going to Rome in the 16th century. Mrs Merkel thought for a few moments and was steely in response.

"Very ingenious, but wrong."

The most powerful leader in Europe then articulated her own vision of a Europe at peace, growing together, sharing burdens and responsibilities, and never again fighting one of those terrible conflicts that over the centuries made Europe the bloodiest continent on Earth.

As she leaves power after 16 years in charge of Germany and guiding much of EU policy, it is true that her legacy is mixed.

Her generous acceptance of migrants with the phrase "we can do this", provoked a backlash from the far right. Her CDU party is now not in good shape – although after dominating Germany for a decade and a half that is hardly surprising. And Mrs Merkel’s attitude to Germany’s energy problems – notably the acceptance of the Nord Stream 2 pipeline from Russia that bypasses Ukraine – has divided the EU. Ukraine fears this is a major victory for Vladimir Putin and Russia. Europe – and therefore Germany – relies too much on American money and military commitments. Relations within Nato are bedevilled by this. And the authoritarian or extremist streak within the EU remains a problem, especially in respect of Poland and Hungary.

But the positive legacy of the Merkel years far outweighs the negatives.

The EU has survived both the financial crisis and Brexit. More importantly, member states are using Britain’s catalogue of difficulties to remind their own voters that the EU has brought peace, stability and economic opportunities across a diverse continent. Germany itself has faced up to its 20th-century history in ways that other countries – including the former colonial powers Britain, France and Belgium – have yet to do. And if, as has been suggested, France were to give up its seat on the UN Security Council Permanent Five in favour of an EU seat, German diplomats would play an even bigger role at the top table of international politics.

I visit Germany as often as I can and speak with my German friends and relatives. No one pretends Germany is perfect. But they are proud of their country, well aware of its past, and confident for the future. And they will miss the woman whose unfussy style – famously she always wore very plain businesslike jackets and unremarkable trousers – defined her no-nonsense leadership. Some leaders – Boris Johnson and Donald Trump – are the political equivalent of show ponies. They like to strut and make a fuss, but generally fail to solve problems. Mrs Merkel is more like a work horse. She gets things done.

When I asked one of her German colleagues why in photographs with me, and others, Mrs Merkel often puts her fingers together in a triangle shape, he laughed and said that it was simply because she needed to find a pose that meant she would not fidget on TV or in press photographs. And as I discovered, she speaks perfect English. She told me that as a schoolgirl in the old East Germany she listened to the BBC World Service under the bedclothes. “But your English is perfect, Chancellor,” I said. “So why did you have your translator translating my interview questions into German?” She laughed and said: “Because it gives me a few extra seconds to think of the answers.”

Yes, I’ll miss her, too.

Company profile

Date started: Founded in May 2017 and operational since April 2018

Founders: co-founder and chief executive, Doaa Aref; Dr Rasha Rady, co-founder and chief operating officer.

Based: Cairo, Egypt

Sector: Health-tech

Size: 22 employees

Funding: Seed funding 

Investors: Flat6labs, 500 Falcons, three angel investors

Turning%20waste%20into%20fuel
%3Cp%3EAverage%20amount%20of%20biofuel%20produced%20at%20DIC%20factory%20every%20month%3A%20%3Cstrong%3EApproximately%20106%2C000%20litres%3C%2Fstrong%3E%3C%2Fp%3E%0A%3Cp%3EAmount%20of%20biofuel%20produced%20from%201%20litre%20of%20used%20cooking%20oil%3A%20%3Cstrong%3E920ml%20(92%25)%3C%2Fstrong%3E%3C%2Fp%3E%0A%3Cp%3ETime%20required%20for%20one%20full%20cycle%20of%20production%20from%20used%20cooking%20oil%20to%20biofuel%3A%20%3Cstrong%3EOne%20day%3C%2Fstrong%3E%3C%2Fp%3E%0A%3Cp%3EEnergy%20requirements%20for%20one%20cycle%20of%20production%20from%201%2C000%20litres%20of%20used%20cooking%20oil%3A%3Cbr%3E%3Cstrong%3E%E2%96%AA%20Electricity%20-%201.1904%20units%3Cbr%3E%E2%96%AA%20Water-%2031%20litres%3Cbr%3E%E2%96%AA%20Diesel%20%E2%80%93%2026.275%20litres%3C%2Fstrong%3E%3C%2Fp%3E%0A
pakistan Test squad

Azhar Ali (capt), Shan Masood, Abid Ali, Imam-ul-Haq, Asad Shafiq, Babar Azam, Fawad Alam, Haris Sohail, Imran Khan, Kashif Bhatti, Mohammad Rizwan (wk), Naseem Shah, Shaheen Shah Afridi, Mohammad Abbas, Yasir Shah, Usman Shinwari

Labour dispute

The insured employee may still file an ILOE claim even if a labour dispute is ongoing post termination, but the insurer may suspend or reject payment, until the courts resolve the dispute, especially if the reason for termination is contested. The outcome of the labour court proceedings can directly affect eligibility.


- Abdullah Ishnaneh, Partner, BSA Law 

UAE currency: the story behind the money in your pockets

The Vines - In Miracle Land
Two stars

THE APPRENTICE

Director: Ali Abbasi

Starring: Sebastian Stan, Maria Bakalova, Jeremy Strong

Rating: 3/5

Ten tax points to be aware of in 2026

1. Domestic VAT refund amendments: request your refund within five years

If a business does not apply for the refund on time, they lose their credit.

2. E-invoicing in the UAE

Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption. 

3. More tax audits

Tax authorities are increasingly using data already available across multiple filings to identify audit risks. 

4. More beneficial VAT and excise tax penalty regime

Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.

5. Greater emphasis on statutory audit

There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.

6. Further transfer pricing enforcement

Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes. 

7. Limited time periods for audits

Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion. 

8. Pillar 2 implementation 

Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.

9. Reduced compliance obligations for imported goods and services

Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations. 

10. Substance and CbC reporting focus

Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity. 

Contributed by Thomas Vanhee and Hend Rashwan, Aurifer

The%20specs
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How to apply for a drone permit
  • Individuals must register on UAE Drone app or website using their UAE Pass
  • Add all their personal details, including name, nationality, passport number, Emiratis ID, email and phone number
  • Upload the training certificate from a centre accredited by the GCAA
  • Submit their request
What are the regulations?
  • Fly it within visual line of sight
  • Never over populated areas
  • Ensure maximum flying height of 400 feet (122 metres) above ground level is not crossed
  • Users must avoid flying over restricted areas listed on the UAE Drone app
  • Only fly the drone during the day, and never at night
  • Should have a live feed of the drone flight
  • Drones must weigh 5 kg or less
BEETLEJUICE BEETLEJUICE

Starring: Winona Ryder, Michael Keaton, Jenny Ortega

Director: Tim Burton

Rating: 3/5

Specs

Engine: 51.5kW electric motor

Range: 400km

Power: 134bhp

Torque: 175Nm

Price: From Dh98,800

Available: Now

The five types of long-term residential visas

Obed Suhail of ServiceMarket, an online home services marketplace, outlines the five types of long-term residential visas:

Investors:

A 10-year residency visa can be obtained by investors who invest Dh10 million, out of which 60 per cent should not be in real estate. It can be a public investment through a deposit or in a business. Those who invest Dh5 million or more in property are eligible for a five-year residency visa. The invested amount should be completely owned by the investors, not loaned, and retained for at least three years.

Entrepreneurs:

A five-year multiple entry visa is available to entrepreneurs with a previous project worth Dh0.5m or those with the approval of an accredited business incubator in the UAE.  

Specialists

Expats with specialised talents, including doctors, specialists, scientists, inventors, and creative individuals working in the field of culture and art are eligible for a 10-year visa, given that they have a valid employment contract in one of these fields in the country.

Outstanding students:

A five-year visa will be granted to outstanding students who have a grade of 95 per cent or higher in a secondary school, or those who graduate with a GPA of 3.75 from a university. 

Retirees:

Expats who are at least 55 years old can obtain a five-year retirement visa if they invest Dh2m in property, have savings of Dh1m or more, or have a monthly income of at least Dh20,000.

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.”

Sri Lanka squad for tri-nation series

Angelo Mathews (c), Upul Tharanga, Danushka Gunathilaka, Kusal Mendis, Dinesh Chandimal, Kusal Janith Perera, Thisara Perera, Asela Gunaratne, Niroshan Dickwella, Suranga Lakmal, Nuwan Pradeep, Dushmantha Chameera, Shehan Madushanka, Akila Dananjaya, Lakshan Sandakan and Wanidu Hasaranga

MATCH INFO

Hoffenheim v Liverpool
Uefa Champions League play-off, first leg
Location: Rhein-Neckar-Arena, Sinsheim
Kick-off: Tuesday, 10.45pm (UAE)

GOLF’S RAHMBO

- 5 wins in 22 months as pro
- Three wins in past 10 starts
- 45 pro starts worldwide: 5 wins, 17 top 5s
- Ranked 551th in world on debut, now No 4 (was No 2 earlier this year)
- 5th player in last 30 years to win 3 European Tour and 2 PGA Tour titles before age 24 (Woods, Garcia, McIlroy, Spieth)

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SPECS
%3Cp%3EEngine%3A%20Supercharged%203.5-litre%20V6%0D%3Cbr%3EPower%3A%20400hp%0D%3Cbr%3ETorque%3A%20430Nm%0D%3Cbr%3EOn%20sale%3A%20Now%0D%3Cbr%3EPrice%3A%20From%20Dh450%2C000%0D%3Cbr%3E%3C%2Fp%3E%0A
AS%20WE%20EXIST
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Brief scores:

Liverpool 3

Mane 24', Shaqiri 73', 80'

Manchester United 1

Lingard 33'

Man of the Match: Fabinho (Liverpool)

Dr Afridi's warning signs of digital addiction

Spending an excessive amount of time on the phone.

Neglecting personal, social, or academic responsibilities.

Losing interest in other activities or hobbies that were once enjoyed.

Having withdrawal symptoms like feeling anxious, restless, or upset when the technology is not available.

Experiencing sleep disturbances or changes in sleep patterns.

What are the guidelines?

Under 18 months: Avoid screen time altogether, except for video chatting with family.

Aged 18-24 months: If screens are introduced, it should be high-quality content watched with a caregiver to help the child understand what they are seeing.

Aged 2-5 years: Limit to one-hour per day of high-quality programming, with co-viewing whenever possible.

Aged 6-12 years: Set consistent limits on screen time to ensure it does not interfere with sleep, physical activity, or social interactions.

Teenagers: Encourage a balanced approach – screens should not replace sleep, exercise, or face-to-face socialisation.

Source: American Paediatric Association

Hunger and Fury: The Crisis of Democracy in the Balkans
Jasmin Mujanović, Hurst Publishers

FINAL LEADERBOARD

1. Jordan Spieth (USA) 65 69 65 69 - 12-under-par
2. Matt Kuchar (USA) 65 71 66 69 - 9-under
3. Li Haotong (CHN) 69 73 69 63 - 6-under
T4. Rory McIlroy (NIR) 71 68 69 67 - 5-under
T4. Rafael Cabrera-Bello (ESP) 67 73 67 68 - 5-under
T6. Marc Leishman (AUS) 69 76 66 65 - 4-under
T6. Matthew Southgate (ENG) 72 72 67 65 - 4-under
T6. Brooks Koepka (USA) 65 72 68 71 - 4-under
T6. Branden Grace (RSA) 70 74 62 70 - 4-under
T6. Alexander Noren (SWE)  68 72 69 67 - 4-under

How much do leading UAE’s UK curriculum schools charge for Year 6?
  1. Nord Anglia International School (Dubai) – Dh85,032
  2. Kings School Al Barsha (Dubai) – Dh71,905
  3. Brighton College Abu Dhabi - Dh68,560
  4. Jumeirah English Speaking School (Dubai) – Dh59,728
  5. Gems Wellington International School – Dubai Branch – Dh58,488
  6. The British School Al Khubairat (Abu Dhabi) - Dh54,170
  7. Dubai English Speaking School – Dh51,269

*Annual tuition fees covering the 2024/2025 academic year

Mumbai Indians 213/6 (20 ov)

Royal Challengers Bangalore 167/8 (20 ov)

Updated: September 26, 2021, 8:18 AM