Tunisia's President Kais Saied has rejected the EU’s financial support, describing it as mere charity. AP
Tunisia's President Kais Saied has rejected the EU’s financial support, describing it as mere charity. AP
Tunisia's President Kais Saied has rejected the EU’s financial support, describing it as mere charity. AP
Tunisia's President Kais Saied has rejected the EU’s financial support, describing it as mere charity. AP

Tunisia's Saied draws Europe's leaders into public feud


Sunniva Rose
  • English
  • Arabic

Tunisian President Kais Saied can lay claim to causing more trouble for European leaders from Carthage than any figure since Hannibal crossed the Alps almost 2,500 years ago.

A controversial deal struck this summer between the European Union and Tunisia to address migration has caused simmering tensions to boil over between the bloc’s two most senior public figures: Charles Michel and Ursula von der Leyen.

As President of the EU Commission, the bloc’s executive arm, Ms von der Leyen is the more prominent face on the international stage and was the official who signed the agreement in July with Mr Saied at Carthage Palace in Tunis.

But Mr Michel presides over the powerful EU Council, where national leaders meet to decide on major decisions, and also travels the world speaking in the name of the union.

Their dispute undermines the EU’s ability to effectively implement the deal, which has been weakened by Mr Saied recently saying he is no longer interested.

Prominent European legislators such as Manfred Weber have ridiculed the situation, telling news website Politico: “If doubts are now being sown both on the European side with Charles Michel’s statements and on the Tunisian side, then it is of course extremely dangerous.”

Migration is a deeply controversial topic in the EU, which since 2020 has been negotiating a new migration and asylum deal and has recently turned to non-EU countries such as Tunisia to help stem arrivals, while remaining divided on how to handle migrants once they land on European soil.

In a recent interview with German news outlet Der Spiegel, Mr Michel said the council had been excluded from the commission’s agreement with Tunisia, in which it promised €1 billion ($1.05 billion) in aid and investment in exchange for Tunisian border guards stopping an increasing number of migrants making the dangerous trip to the EU.

“The EU is based on treaties and it would be wise to stick to them,” Mr Michel said.

In rare criticism of the EU Council, a representative for the EU Commission on Wednesday said Mr Michel's comment was “partially inaccurate and in no way strengthens the EU’s ability to act effectively in dealing with the difficult issue of migration“.

Tensions between the two European officials have often spilt into the public realm. In a famous incident known as “sofagate”, in 2021 during a trip to Turkey, Mr Michel sat in the only chair available near Turkey’s President Recep Tayyip Erdogan, forcing a visibly shocked Ms von der Leyen to sit on a sofa – a breach of protocol.

Tensions between Charles Michel and Ursula von der Leyen have at times spilt into the public realm. EPA
Tensions between Charles Michel and Ursula von der Leyen have at times spilt into the public realm. EPA

Meanwhile, there has been additional confusion around the implementation of the agreement, with contradictory statements coming out of Brussels and Tunis.

One week after Ms von der Leyen visited Lampedusa in a show of public support to Italian Prime Minister Giorgia Meloni as the number of migrant arrivals surged, the EU Commission on September 22 announced it would send a first tranche of €127 million ($133 million) to Tunisia.

But on Monday, Mr Saied said he rejected the EU’s financial support, describing it as mere charity. The announcement puzzled officials in Brussels, with one saying that Mr Saied had probably expected more than €127 million as a first disbursement of the €1 billion package.

Questioned on Wednesday, an EU Commission representative said Tunis had requested a disbursement of €60 million in budgetary support on August 31 and that Brussels had sent the money “earlier this week”.

Yet, on the same day, the Tunisian Ministry of Foreign Affairs responded that it had not agreed to this disbursement and referred to Mr Saied’s earlier statement.

Tunisia is free to wire the money back, said the EU's commissioner for neighbourhood and enlargement Oliver Varhelyi, who clarified the €60 million was not linked to the agreement.

"Tunisia is free to cancel its formal disbursement request & wire back the money to the EU budget," wrote Mr Varhelyi on X, formerly Twitter, on Thursday.

"Implementation of the MoU [memorandum of understanding] should continue once Tunisia returns to the spirit of our strategic & comprehensive partnership based on mutual respect."

Tunis also denied entry last month to a European Parliament delegation after several MEPs criticised the country’s human rights record and its treatment of sub-Saharan migrants.

The EU Commission had high hopes the agreement with Tunisia could be replicated with other countries in the region, such as Egypt.

The bickering on display so far seems to indicate that such hopes may have been premature.

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.”

German intelligence warnings
  • 2002: "Hezbollah supporters feared becoming a target of security services because of the effects of [9/11] ... discussions on Hezbollah policy moved from mosques into smaller circles in private homes." Supporters in Germany: 800
  • 2013: "Financial and logistical support from Germany for Hezbollah in Lebanon supports the armed struggle against Israel ... Hezbollah supporters in Germany hold back from actions that would gain publicity." Supporters in Germany: 950
  • 2023: "It must be reckoned with that Hezbollah will continue to plan terrorist actions outside the Middle East against Israel or Israeli interests." Supporters in Germany: 1,250 

Source: Federal Office for the Protection of the Constitution

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All kick-off times 10.45pm UAE ( 4 GMT) unless stated

Tuesday
Sevilla v Maribor
Spartak Moscow v Liverpool
Manchester City v Shakhtar Donetsk
Napoli v Feyenoord
Besiktas v RB Leipzig
Monaco v Porto
Apoel Nicosia v Tottenham Hotspur
Borussia Dortmund v Real Madrid

Wednesday
Basel v Benfica
CSKA Moscow Manchester United
Paris Saint-Germain v Bayern Munich
Anderlecht v Celtic
Qarabag v Roma (8pm)
Atletico Madrid v Chelsea
Juventus v Olympiakos
Sporting Lisbon v Barcelona

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Results:

6.30pm: Handicap | US$135,000 (Dirt) | 1,400 metres

Winner: Rodaini, Connor Beasley (jockey), Ahmad bin Harmash (trainer)

7.05pm: Handicap | $135,000 (Turf) | 1,200m

Winner: Ekhtiyaar, Jim Crowley, Doug Watson

7.40pm: Dubai Millennium Stakes | Group 3 | $200,000 (T) | 2,000m

Winner: Spotify, James Doyle, Charlie Appleby

8.15pm: UAE Oakes | Group 3 | $250,000 (D) | 1,900m

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8.50pm: Zabeel Mile | Group 2 | $250,000 (T) | 1,600m

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9.20pm: Handicap | $135,000 (T) | 1,600m

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Courtesy: Carol Glynn, founder of Conscious Finance Coaching

Updated: October 05, 2023, 4:04 PM