Next Friday’s meeting of European Union heads of state in Bratislava will seek to rediscover a collective sense of purpose in the face of growing popular disenchantment with European integration. Alienation stoked by economic disparities, compounded by fears over migration and terrorism, are feeding support for political parties pursuing nationalist agendas. Britain’s referendum vote in June to leave the EU signalled the union’s existential threat.
The EU’s leaders have acknowledged that the union is facing a crisis of legitimacy. European Council president Donald Tusk has warned that member states’ citizens are looking to the EU to be “a guarantor of stability, security and protection” and to address the “feeling of people that globalisation only benefits the elites”. Such views acknowledge that the union’s vision of open economies and freedom of movement has turned sour.
Seemingly intractable economic stagnation in parts of Europe – illustrated by youth-unemployment rates touching 70 per cent in some of Italy’s southern regions – is fuelling a political insurgency that is challenging and in some cases displacing traditional political establishments. Germany’s ruling CDU-SPD coalition recently suffered a setback when the far right, anti-immigrant Alternative for Germany party secured up to a quarter of votes cast in regional elections. Elsewhere in Central Europe, ruling parties in Poland, Hungary and Slovakia are promoting themselves as defenders of national identities against enforced euro-federalism and multiculturalism.
A series of terrorist incidents have raised tensions among populations fearful that ISIL is inspiring freelance extremists to launch mass casualty attacks. In response to this threat, internal security and border controls will be at the head the agenda in Bratislava. Better cooperation between national intelligence agencies and police forces in Europe will be discussed, along with plans by the European Commission to introduce a more stringent visa regime for non-EU nationals entering the Schengen zone.
Beyond that, the main topics of discussion will be measures to reboot economic growth in Europe’s poorer regions. The leaders meeting in Bratislava are aware that they need to balance proof that they are listening with realism about the immensity of the challenges faced. With important national elections in Germany and France set for 2017, they know that the established centrist parties will have to offer a sufficiently convincing vision to head off the growing appeal of the populists.
Although Brexit is not on the agenda, the issue will loom over the talks. Prime minister Theresa May has not been invited, though the UK remains a member of the EU for now. The main issues of contention will be between those who would punish Britain and those who seek as much common ground as possible to conciliate Europe’s second-largest economy and most capable military power. The potential for discord was evident in the immediate aftermath of the June referendum, when calls by the European Commission for "more Europe" were immediately shot down by member-state governments aware that anti-EU sentiment in the UK stemmed from the same factors stoking resentment on the continent.
As Mrs May’s government fumbles its way towards giving real substance to the phrase “Brexit means Brexit”, some observers hope that the Bratislava talks may start a process leading to a watering down of the free movement of labour, one of the EU’s “four freedoms”, in response to British concerns over migration. The thinking is that new restrictions will facilitate a more mutually-beneficial agreement if and when London formally triggers the process of leaving the EU.
These fragile hopes that the EU will compromise its core principles will very much depend on the attitude of German chancellor Angela Merkel, the leader of Europe’s strongest economy. She backs moves to promote a better Europe that is more responsive to its citizens’ concerns than the more integrated Europe advocated by Brussels.
However, her government, supported by newer member states in Central and Eastern Europe, has so far dismissed limits on free movement.
Germany and its eastern neighbours remain diametrically opposed on the issue of accepting refugees from war zones in the Middle East. Although Mrs Merkel has not yet confirmed that she wishes to continue in power after 2017, a recent stout defence in the Bundestag of her decision to accept Syrian migrants suggests that she still believes she can persuade Germany and Europe to remain open to new arrivals rather than retreat into introspection and xenophobia.
Whether or not such disagreements can be resolved will be crucial to the EU’s efforts to reinvent itself as an exemplar of interstate cooperation. After years of political and economic expansion flavoured by post-Cold War triumphalism, the quest for “ever closer union” has now run out of momentum.
In the recent past, initiatives such as the single currency and the admission of new member states could be presented as triumphant milestones passed on a journey to a utopia. The newer challenges of assimilating the recent influx of immigrants, creating jobs and managing Brexit will in contrast be fraught processes that will take years if not decades to resolve.
Stephen Blackwell is an international politics and security analyst
Abu Dhabi traffic facts
Drivers in Abu Dhabi spend 10 per cent longer in congested conditions than they would on a free-flowing road
The highest volume of traffic on the roads is found between 7am and 8am on a Sunday.
Travelling before 7am on a Sunday could save up to four hours per year on a 30-minute commute.
The day was the least congestion in Abu Dhabi in 2019 was Tuesday, August 13.
The highest levels of traffic were found on Sunday, November 10.
Drivers in Abu Dhabi lost 41 hours spent in traffic jams in rush hour during 2019
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.”
Friday's schedule in Madrid
Men's quarter-finals
Novak Djokivic (1) v Marin Cilic (9) from 2pm UAE time
Roger Federer (4) v Dominic Thiem (5) from 7pm
Stefanos Tsitsipas (8) v Alexander Zverev (3) from 9.30pm
Stan Wawrinka v Rafael Nadal (2) from 11.30pm
Women's semi-finals
Belinda Bencic v Simona Halep (3) from 4.30pm
Sloane Stephens (8) v Kiki Bertens (7) from 10pm
How to get exposure to gold
Although you can buy gold easily on the Dubai markets, the problem with buying physical bars, coins or jewellery is that you then have storage, security and insurance issues.
A far easier option is to invest in a low-cost exchange traded fund (ETF) that invests in the precious metal instead, for example, ETFS Physical Gold (PHAU) and iShares Physical Gold (SGLN) both track physical gold. The VanEck Vectors Gold Miners ETF invests directly in mining companies.
Alternatively, BlackRock Gold & General seeks to achieve long-term capital growth primarily through an actively managed portfolio of gold mining, commodity and precious-metal related shares. Its largest portfolio holdings include gold miners Newcrest Mining, Barrick Gold Corp, Agnico Eagle Mines and the NewMont Goldcorp.
Brave investors could take on the added risk of buying individual gold mining stocks, many of which have performed wonderfully well lately.
London-listed Centamin is up more than 70 per cent in just three months, although in a sign of its volatility, it is down 5 per cent on two years ago. Trans-Siberian Gold, listed on London's alternative investment market (AIM) for small stocks, has seen its share price almost quadruple from 34p to 124p over the same period, but do not assume this kind of runaway growth can continue for long
However, buying individual equities like these is highly risky, as their share prices can crash just as quickly, which isn't what what you want from a supposedly safe haven.
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Our family matters legal consultant
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
Tori Amos
Native Invader
Decca
Small Victories: The True Story of Faith No More by Adrian Harte
Jawbone Press
Take Me Apart
Kelela
(Warp)
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From Zero
Artist: Linkin Park
Label: Warner Records
Number of tracks: 11
Rating: 4/5
UAE currency: the story behind the money in your pockets
The National's picks
4.35pm: Tilal Al Khalediah
5.10pm: Continous
5.45pm: Raging Torrent
6.20pm: West Acre
7pm: Flood Zone
7.40pm: Straight No Chaser
8.15pm: Romantic Warrior
8.50pm: Calandogan
9.30pm: Forever Young
The biog
Favourite films: Casablanca and Lawrence of Arabia
Favourite books: Start with Why by Simon Sinek and Good to be Great by Jim Collins
Favourite dish: Grilled fish
Inspiration: Sheikh Zayed's visionary leadership taught me to embrace new challenges.
Dubai Bling season three
Cast: Loujain Adada, Zeina Khoury, Farhana Bodi, Ebraheem Al Samadi, Mona Kattan, and couples Safa & Fahad Siddiqui and DJ Bliss & Danya Mohammed
Rating: 1/5
Israel Palestine on Swedish TV 1958-1989
Director: Goran Hugo Olsson
Rating: 5/5
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
Favourite things
Luxury: Enjoys window shopping for high-end bags and jewellery
Discount: She works in luxury retail, but is careful about spending, waits for sales, festivals and only buys on discount
University: The only person in her family to go to college, Jiang secured a bachelor’s degree in business management in China
Masters: Studying part-time for a master’s degree in international business marketing in Dubai
Vacation: Heads back home to see family in China
Community work: Member of the Chinese Business Women’s Association of the UAE to encourage other women entrepreneurs
The candidates
Dr Ayham Ammora, scientist and business executive
Ali Azeem, business leader
Tony Booth, professor of education
Lord Browne, former BP chief executive
Dr Mohamed El-Erian, economist
Professor Wyn Evans, astrophysicist
Dr Mark Mann, scientist
Gina MIller, anti-Brexit campaigner
Lord Smith, former Cabinet minister
Sandi Toksvig, broadcaster
Lexus LX700h specs
Engine: 3.4-litre twin-turbo V6 plus supplementary electric motor
Power: 464hp at 5,200rpm
Torque: 790Nm from 2,000-3,600rpm
Transmission: 10-speed auto
Fuel consumption: 11.7L/100km
On sale: Now
Price: From Dh590,000
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Everything Now
Arcade Fire
(Columbia Records)
The specs: 2018 Volkswagen Teramont
Price, base / as tested Dh137,000 / Dh189,950
Engine 3.6-litre V6
Gearbox Eight-speed automatic
Power 280hp @ 6,200rpm
Torque 360Nm @ 2,750rpm
Fuel economy, combined 11.7L / 100km
if you go
The flights
Fly to Rome with Etihad (www.etihad.ae) or Emirates (www.emirates.com) from Dh2,480 return including taxes. The flight takes six hours. Fly from Rome to Trapani with Ryanair (www.ryanair.com) from Dh420 return including taxes. The flight takes one hour 10 minutes.
The hotels
The author recommends the following hotels for this itinerary. In Trapani, Ai Lumi (www.ailumi.it); in Marsala, Viacolvento (www.viacolventomarsala.it); and in Marsala Del Vallo, the Meliaresort Dimore Storiche (www.meliaresort.it).
WORLD CUP SEMI-FINALS
England v New Zealand
(Saturday, 12pm UAE)
Wales v South Africa
(Sunday, 12pm, UAE)
Avatar: Fire and Ash
Director: James Cameron
Starring: Sam Worthington, Sigourney Weaver, Zoe Saldana
Rating: 4.5/5
Veil (Object Lessons)
Rafia Zakaria
Bloomsbury Academic
MATCH INFO
Sheffield United 3
Fleck 19, Mousset 52, McBurnie 90
Manchester United 3
Williams 72, Greenwood 77, Rashford 79
SM Town Live is on Friday, April 6 at Autism Rocks Arena, Dubai. Tickets are Dh375 at www.platinumlist.net
SHAITTAN
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Scoreline
Germany 2
Werner 9', Sane 19'
Netherlands 2
Promes 85', Van Dijk 90'
Profile of RentSher
Started: October 2015 in India, November 2016 in UAE
Founders: Harsh Dhand; Vaibhav and Purvashi Doshi
Based: Bangalore, India and Dubai, UAE
Sector: Online rental marketplace
Size: 40 employees
Investment: $2 million
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