Nato's 30 allies signed an accession protocol for Finland and Sweden on Tuesday, taking the two Nordic countries a step closer to membership.
It will allow them to join the nuclear-armed alliance once allied parliaments ratify the decision, the most significant expansion of Nato since the mid-1990s.
The move increases Russia’s isolation since its invasion of neighbouring Ukraine in February and the subsequent conflict.
The protocol means Helsinki and Stockholm can participate in Nato meetings and have greater access to intelligence but they will not be protected by the Nato defence clause that an attack on one ally is an attack against all, until ratification that is likely to take up to a year.
The 30 ambassadors and permanent representatives formally approved the decisions of last week’s Nato summit, when the alliance made the historic decision to invite the two countries to join the military pact.
"This is truly a historic moment," Nato Secretary General Jens Stoltenberg said alongside the foreign ministers of the two countries. "With 32 nations around the table, we will be even stronger."
Nato's 30 ambassadors and Mr Stoltenberg stood together for a photo in which the foreign ministers of Sweden and Finland held up their signed protocols, before breaking out into applause.
Swedish Foreign Minister Ann Linde said on Twitter: "Thank you for your support! Now the process of ratification by each of the allies begins. Look forward to working together in ensuring our collective security."
Despite the agreement in the alliance, parliamentary approval in member state Turkey could still pose problems for their final inclusion as members.
Turkish President Tayyip Erdogan issued a warning at last week's summit in Madrid that Finland and Sweden must first keep the promises made to Turkey in a deal or ratification will not be sent to the Turkish Parliament.
Historic Nato summit - in pictures
After weeks of diplomacy, Mr Erdogan and his Finnish and Swedish counterparts agreed on a series of security measures to allow the two Nordic countries to overcome the Turkish veto that Ankara had imposed in May due to its concerns about terrorism.
But he insisted Ankara could still block the process if the two countries fail to fully meet Turkey’s demand to extradite suspected terrorists with links to outlawed Kurdish groups or the network of an exiled cleric accused of a failed 2016 coup in Turkey.
According to the signed memorandum, Finland and Sweden pledged not to support the Kurdish militant PKK and YPG groups or the network of US-based cleric Fethullah Gulen, which Ankara says staged a 2016 coup attempt and which it labels a terrorist organisation with the acronym Feto.
Mr Stoltenberg said he expected no change of heart. “There were security concerns that needed to be addressed," he said. "And we did what we always do at Nato. We found common ground.”
Every alliance nation has different legislative challenges and procedures to deal with and it could take several more months for the two to become official members.
“I look forward to a swift ratification process,” said Finnish Foreign Minister Pekka Haavisto. The Russian invasion of Ukraine has given the process added urgency. It will ensconce the two nations in the western military alliance and provide Nato with more clout, especially in the face of Moscow’s military threat.
Tuesday’s signing has brought both nations deeper into Nato’s fold already. As close partners, they already attended some meetings involving issues that immediately affected them. As they were officially invited, they can attend all meetings of the ambassadors even if they do not yet have any voting rights.
Living in...
This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
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Will the pound fall to parity with the dollar?
The idea of pound parity now seems less far-fetched as the risk grows that Britain may split away from the European Union without a deal.
Rupert Harrison, a fund manager at BlackRock, sees the risk of it falling to trade level with the dollar on a no-deal Brexit. The view echoes Morgan Stanley’s recent forecast that the currency can plunge toward $1 (Dh3.67) on such an outcome. That isn’t the majority view yet – a Bloomberg survey this month estimated the pound will slide to $1.10 should the UK exit the bloc without an agreement.
New Prime Minister Boris Johnson has repeatedly said that Britain will leave the EU on the October 31 deadline with or without an agreement, fuelling concern the nation is headed for a disorderly departure and fanning pessimism toward the pound. Sterling has fallen more than 7 per cent in the past three months, the worst performance among major developed-market currencies.
“The pound is at a much lower level now but I still think a no-deal exit would lead to significant volatility and we could be testing parity on a really bad outcome,” said Mr Harrison, who manages more than $10 billion in assets at BlackRock. “We will see this game of chicken continue through August and that’s likely negative for sterling,” he said about the deadlocked Brexit talks.
The pound fell 0.8 per cent to $1.2033 on Friday, its weakest closing level since the 1980s, after a report on the second quarter showed the UK economy shrank for the first time in six years. The data means it is likely the Bank of England will cut interest rates, according to Mizuho Bank.
The BOE said in November that the currency could fall even below $1 in an analysis on possible worst-case Brexit scenarios. Options-based calculations showed around a 6.4 per cent chance of pound-dollar parity in the next one year, markedly higher than 0.2 per cent in early March when prospects of a no-deal outcome were seemingly off the table.
Bloomberg
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Tips from the expert
Dobromir Radichkov, chief data officer at dubizzle and Bayut, offers a few tips for UAE residents looking to earn some cash from pre-loved items.
- Sellers should focus on providing high-quality used goods at attractive prices to buyers.
- It’s important to use clear and appealing photos, with catchy titles and detailed descriptions to capture the attention of prospective buyers.
- Try to advertise a realistic price to attract buyers looking for good deals, especially in the current environment where consumers are significantly more price-sensitive.
- Be creative and look around your home for valuable items that you no longer need but might be useful to others.
The nine articles of the 50-Year Charter
1. Dubai silk road
2. A geo-economic map for Dubai
3. First virtual commercial city
4. A central education file for every citizen
5. A doctor to every citizen
6. Free economic and creative zones in universities
7. Self-sufficiency in Dubai homes
8. Co-operative companies in various sectors
9: Annual growth in philanthropy