Armin Laschet has expressed hopes of becoming Germany's next chancellor, despite the CDU winning barely 24 per cent of the vote in Sunday's election. EPA
Armin Laschet has expressed hopes of becoming Germany's next chancellor, despite the CDU winning barely 24 per cent of the vote in Sunday's election. EPA
Armin Laschet has expressed hopes of becoming Germany's next chancellor, despite the CDU winning barely 24 per cent of the vote in Sunday's election. EPA
Armin Laschet has expressed hopes of becoming Germany's next chancellor, despite the CDU winning barely 24 per cent of the vote in Sunday's election. EPA

Laschet faces party strife after prolonging German chancellorship bid


Tim Stickings
  • English
  • Arabic

Armin Laschet’s hopes of leading Germany have descended into party strife, as key figures questioned his efforts to build a coalition despite losing the election.

Mr Laschet’s Christian Democrats (CDU) sunk to their lowest-ever vote share at Sunday’s election, coming second to Olaf Scholz’s Social Democrats (SPD).

But Mr Laschet still expressed hope of leading the next government, in a coalition with the Greens and the Free Democrats (FDP).

Markus Soeder, the Bavarian premier who lost a struggle for the party nomination to Mr Laschet in April, called on colleagues to acknowledge Mr Scholz’s victory.

He said the SPD should “make the next move” after Mr Scholz took the first steps towards a coalition with the two smaller parties.

“It’s important that you respect an election result. I congratulate Olaf Scholz for winning the most votes in Germany,” Mr Soeder said.

“Olaf Scholz, clearly, is the one who has the best chances of becoming chancellor at the moment.

“In case that doesn’t work out, we are ready for any conversation, because Germany has to be able to govern.”

Markus Soeder, who was outmanoeuvred by Mr Laschet for the party leadership in April, said the CDU should respect Olaf Scholz's victory. EPA
Markus Soeder, who was outmanoeuvred by Mr Laschet for the party leadership in April, said the CDU should respect Olaf Scholz's victory. EPA

Ellen Demuth, a regional CDU politician and former aide to leadership contender Norbert Rottgen, called on Mr Laschet to resign as party leader.

“Armin Laschet, you lost. Please show some insight. Avoid further damage to the CDU and resign,” Ms Demuth said.

Tilman Kuban, the head of the party’s youth wing, said: “We lost the election. Full stop.”

The CDU won 24.1 per cent of the vote at Sunday’s election. The SPD took 25.7 per cent.

Mr Laschet argued on Monday that the SPD lacked a clear mandate because its vote share was well below that of governing parties in decades gone by.

“No party can draw a mandate to govern from this election result, including us,” he said.

But he acknowledged that a result below 30 per cent of the vote was not satisfactory for the CDU, and accepted he was partly to blame.

FDP leader Christian Lindner, second right, met Green co-leaders Annalena Baerbock, second left, and Robert Habeck, right, for preliminary coalition talks. AFP
FDP leader Christian Lindner, second right, met Green co-leaders Annalena Baerbock, second left, and Robert Habeck, right, for preliminary coalition talks. AFP

The two kingmakers, the Greens and the FDP, began preliminary talks on Tuesday after agreeing to approach each other first.

Mr Scholz wants their support for what is known as a “traffic light” coalition because of the red, yellow and green colours of the parties.

Annalena Baerbock and Robert Habeck, the co-leaders of the Greens, met FDP chief Christian Lindner on Tuesday evening.

“In the search for a new government, we are sounding out agreements and bridges over disagreements,” Mr Habeck said. “And we’re even finding some. Exciting times.”

The new chancellor will have to be confirmed by a majority of MPs in the new parliament once a coalition deal is reached.

The talks are widely expected to take months. The constitution allows Angela Merkel, the outgoing chancellor, to stay on as a caretaker as long as necessary.

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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.”

Roll of honour 2019-2020

Dubai Rugby Sevens
Winners: Dubai Hurricanes
Runners up: Bahrain

West Asia Premiership
Winners: Bahrain
Runners up: UAE Premiership

UAE Premiership
}Winners: Dubai Exiles
Runners up: Dubai Hurricanes

UAE Division One
Winners: Abu Dhabi Saracens
Runners up: Dubai Hurricanes II

UAE Division Two
Winners: Barrelhouse
Runners up: RAK Rugby

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Sector: Entertainment/Streaming Video On Demand

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Investors/Investment amount: $125 million. Major investors include Starz/Lionsgate, State Street, SEQ and Delta Partners

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Tarek Kabrit, chief executive of Seez, and Imad Hammad, chief executive and co-founder of CarSwitch.com

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Uefa Champions League Group C

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Updated: September 29, 2021, 10:39 AM