Peter Foster has spent his life nurturing networks of contacts with insights and views that fill his new book about Brexit. The first half examines “what went wrong” with the British departure from the EU and the second half asks what can be done about it.
What is being done is that process is going into reverse. As Foster relays, there is nothing certain or easy about this developing rehabilitation. But there are areas where the UK will or can move much closer to the EU, to reverse some of the harms of recent years.
What went wrong with Brexit is probably best summed by a quote from the EU negotiator Stefaan de Rynck, who is quoted in Foster’s book: “The UK government played a game of chicken by itself.”
I remember listening to the then Brexit secretary David Davis at a dinner, where he bombastically declaimed that the UK could always fill the Channel Tunnel with concrete if the EU did not meet his negotiating demands. The EU did not, and the Channel Tunnel remains a functioning connection between continental Europe and England.
Polls show that the UK public is now heavily in favour of rebuilding a close relationship with Europe. A survey last week asked people to choose the country’s partner of choice and 44 per cent said the EU as against 34 per cent plumping for the US.
Although heavily skewed by the Covid-19 pandemic, the economic performance of the UK since it pulled out of the EU has been below par.
There are many more aspects of restitching ties that fall short of rejoining the bloc
There is a recognition that some of the damage done has been needless but inevitable, given that the UK was no longer participating in the EU’s single market. To give one small example, it was revealed last week that touring musicians had taken an enormous hit from Brexit.
An industry survey found 43 per cent of respondents said that the EU is financially out of bounds, while 65 per cent said they have received fewer invites to tour the bloc. Eight out of 10 respondents said their income had fallen in the past three years because of the break-up.
The decision by the UK to rejoin the mammoth EU-wide Horizon programme that funds scientific research was London’s first step to returning to the EU fold.
In the year since Prime Minister Rishi Sunak took power, London has also signed the Windsor Framework to allow the Northern Ireland economy to remain in the EU single market while easing checks on trade between the province and British mainland.
There are many more aspects of restitching ties that fall short of rejoining the bloc.
But it is not at all clear that the EU would even welcome a push by the UK to rejoin. It has, after all, survived the first punch of the British exit and is in many ways more cohesive without the UK’s presence at its decision-making tables.
That said, both sides – and even many Brexiters – will recognise that Britain is a European reality. The war in Ukraine has helped boost this pragmatic recognition that the UK cannot simply be a sidelined fact of life. Migration is another factor that has to engender co-operation between the two sides.
Experts, meanwhile, are trying to work out what a Labour government would mean if it took power in the 2024 election. Few would have a good take on what the party will do to repair the gulf with Europe.
At the start of this year, David Lammy, the shadow foreign secretary, ruled more things out than in when he said the UK would not rejoin the EU, single market or the customs union. Instead, it would work to fix the bad Brexit and increase trade.
Foster says, rightly, that even if Labour leader Keir Starmer wins the election, he will still face the threat of Conservative Brexiters fomenting opposition to working with Europe. On the other side of the coin, he noted that his European interlocutors say any future new agreements will have to contain safeguards against a reversion to populism.
Overall, they remain burned by the whole Brexit experience too.
After the Horizon decision, there are other obvious areas for rehabilitation that could be considered. The EU-UK Trade and Co-operation Agreement, signed in 2020, provides for a partnership council that has never been fully established.
The two sides could have a go at creating that as a forum for discussion on how they could work together. There could be talks on the creation of a European Security Council to get the UK back in the room on the big issues facing a continent at war.
The Tony Blair Institute has sketched out options for a closer alignment between the UK economy and the EU. One option would be to pass a blanket law aligning standards in strategic areas. This could mean providing the UK with access to markets such as the highly regulated and fast-growing battery storage sector.
There is even the prospect that, if the Northern Ireland arrangement is so good for Belfast, the agreement could be stretched to cover the entire UK economy.
Former prime minister Theresa May’s Global Britain concept promised free trade in goods and services along with Brexit. What’s coming, instead, is a remodelling of the UK’s former ties with its European neighbours.
La Mer lowdown
La Mer beach is open from 10am until midnight, daily, and is located in Jumeirah 1, well after Kite Beach. Some restaurants, like Cupagahwa, are open from 8am for breakfast; most others start at noon. At the time of writing, we noticed that signs for Vicolo, an Italian eatery, and Kaftan, a Turkish restaurant, indicated that these two restaurants will be open soon, most likely this month. Parking is available, as well as a Dh100 all-day valet option or a Dh50 valet service if you’re just stopping by for a few hours.
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BIGGEST CYBER SECURITY INCIDENTS IN RECENT TIMES
SolarWinds supply chain attack: Came to light in December 2020 but had taken root for several months, compromising major tech companies, governments and its entities
Microsoft Exchange server exploitation: March 2021; attackers used a vulnerability to steal emails
Kaseya attack: July 2021; ransomware hit perpetrated REvil, resulting in severe downtime for more than 1,000 companies
Log4j breach: December 2021; attackers exploited the Java-written code to inflitrate businesses and governments
Who has lived at The Bishops Avenue?
- George Sainsbury of the supermarket dynasty, sugar magnate William Park Lyle and actress Dame Gracie Fields were residents in the 1930s when the street was only known as ‘Millionaires’ Row’.
- Then came the international super rich, including the last king of Greece, Constantine II, the Sultan of Brunei and Indian steel magnate Lakshmi Mittal who was at one point ranked the third richest person in the world.
- Turkish tycoon Halis Torprak sold his mansion for £50m in 2008 after spending just two days there. The House of Saud sold 10 properties on the road in 2013 for almost £80m.
- Other residents have included Iraqi businessman Nemir Kirdar, singer Ariana Grande, holiday camp impresario Sir Billy Butlin, businessman Asil Nadir, Paul McCartney’s former wife Heather Mills.
Hunting park to luxury living
- Land was originally the Bishop of London's hunting park, hence the name
- The road was laid out in the mid 19th Century, meandering through woodland and farmland
- Its earliest houses at the turn of the 20th Century were substantial detached properties with extensive grounds
Cricket World Cup League 2
UAE squad
Rahul Chopra (captain), Aayan Afzal Khan, Ali Naseer, Aryansh Sharma, Basil Hameed, Dhruv Parashar, Junaid Siddique, Muhammad Farooq, Muhammad Jawadullah, Muhammad Waseem, Omid Rahman, Rahul Bhatia, Tanish Suri, Vishnu Sukumaran, Vriitya Aravind
Fixtures
Friday, November 1 – Oman v UAE
Sunday, November 3 – UAE v Netherlands
Thursday, November 7 – UAE v Oman
Saturday, November 9 – Netherlands v UAE
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.
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.”
Read more about the coronavirus
Dunki
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Four-day collections of TOH
Day Indian Rs (Dh)
Thursday 500.75 million (25.23m)
Friday 280.25m (14.12m)
Saturday 220.75m (11.21m)
Sunday 170.25m (8.58m)
Total 1.19bn (59.15m)
(Figures in millions, approximate)
Ferrari
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Our legal consultant
Name: Dr Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.