French Left party leader and candidate for the 2017 French presidential election, Jean-Luc Melenchon, gives a speech from a barge on the canal de l'Ourcq in Paris. Thibault Camus / AP
French Left party leader and candidate for the 2017 French presidential election, Jean-Luc Melenchon, gives a speech from a barge on the canal de l'Ourcq in Paris. Thibault Camus / AP
French Left party leader and candidate for the 2017 French presidential election, Jean-Luc Melenchon, gives a speech from a barge on the canal de l'Ourcq in Paris. Thibault Camus / AP
French Left party leader and candidate for the 2017 French presidential election, Jean-Luc Melenchon, gives a speech from a barge on the canal de l'Ourcq in Paris. Thibault Camus / AP

Presidential contest in France is a ballot full of ‘rotten choices’


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An unsigned note left on the seat of a public bench in a small French Riviera resort read: “I would vote but prefer democracy.”

As a piece of philosophy, it falls beneath the standards of Descartes, Voltaire or Sartre – even its coherence is open to challenge. But the sentiment sums up the mood of disenchantment that, only days before France votes in the first round of a murky presidential election, leaves the outcome wide open.

Faced with a choice of candidates many consider unconvincing, up to 35 per cent are said by opinion polls to have no intention of voting at all, making abstentionism – to quote the state-owned broadcaster France Info – “the leading party”.

If pollsters retain any credibility after failing to predict Brexit or the victory of Donald Trump, the front-runners in France are easy to identify. Latest polls put the centrist Emmanuel Macron slightly ahead of the far-right Marine Le Pen, both scoring between 22 and 24 per cent, with the centre-right Francois Fillon and far-left Jean-Luc Melenchon narrowly separated between three and six points behind.

Even at its most accurate, polling carries the health warning of a three-point error margin. This raises the prospect that the French could end up voting for anything from the most left wing programme Europe has seen from a serious contender for power since the fall of communism (Mr Melenchon) to the protectionist, anti-immigration and anti-European Union Front National (Ms Le Pen).

Mr Melenchon even talks of doing away with the job he seeks, with a new sixth republic replacing the model that has defined the governance of France since the days of Gen Charles de Gaulle without what he calls a “presidential monarchy”.

Since a sizeable part of the electorate is intent on voting but far from sure who for, the potential for a shock becomes greater still. The candidates taking the top two places among the 11 candidates contesting Sunday’s first round will go forward to a decisive run-off on May 7 unless, as seems impossible, one wins with an absolutely majority.

For the French, the choice is complicated by the scandal and rumour that have dogged the campaign from its outset. Mr Fillon, a clear favourite when he won the primaries of the mainstream conservatives, has been grievously wounded by allegations that he paid his British wife, Penelope, and two of their five children huge amounts in return for, at best, wildly exaggerated duties.

Since the money, more than €900,000 (Dh3.5m), came from public funds, Mr Fillon and his wife both now find themselves under formal criminal investigation. This creates the unseemly possibility that a man offering himself as the most responsible candidate with the soundest economic policies, and the woman who would serve as his first lady, could eventually have to stand trial.

Ms Le Pen also has a raft of troubles with the law, including claims that her party misused money from the EU, an institution it loathes, to pay the salaries of staff based purely in France.

That leaves Mr Macron, who has never held elected office, and Mr Melenchon, a charismatic intellectual born in Morocco where his father worked in the pre-independence French postal service.

Mr Macron was an adviser and then minister in Francois Hollande’s socialist government before deciding he was not a socialist after all. He insists his policies, including slashing bureaucracy and labour costs while easing taxes on pay, have nothing to do with the traditional left-right divide but offer a way to haul France into the 21st century.

Meanwhile, Mr Melenchon mocks his portrayal as a “dangerous” man who would, in his self-caricature, bring “nuclear winter, torrents of frogs, Red Army tanks and the landing of the Venezuelans”.

Admirers, attending his rallies in tens of thousands, lap it up. They are as unmoved by criticism of their candidate as are Le Pen supporters by justifiable concerns that her party still harbours unsavoury elements who regret the defeat of Adolf Hitler.

One fervent French-Moroccan Melenchon supporter, Mounia Belaili, who previously believed nothing could stop Ms Le Pen, now says he could be on the verge of a historic victory for the left. Away from the hustings, conversation at Sunday lunch in Nice inevitably turned to the election.

“It’s a rotten choice,” said the host, a doctor. “Le Pen – catastrophe. Melenchon – catastrophe. Macron – the least realisable programme of all. And how could the French ever again respect Fillon?”

How has he resolved his personal uncertainty?

“I shall vote Fillon with a heavy heart because he is the least bad option.”

Current projections suggest Ms Le Pen would be beaten by any of her main adversaries in the run-off.

But in this unedifying process of choosing a successor to the historically unpopular Mr Hollande, his own socialist party in deep and unelectable despair, a much older version of that anonymous message on the Riviera bench springs to mind. “If voting changed anything, they’d have made it illegal,” said the late Russian anarchist and author Emma Goldman.

Colin Randall is a former executive editor of The National

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.”

Our legal consultant

Name: Hassan Mohsen Elhais

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

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