Britain and Germany signalled on Thursday that they were willing to make a deal on Northern Ireland and put aside what Berlin called the “Achilles heel” of their post-Brexit ties.
German Foreign Minister Annalena Baerbock was in London for a strategic dialogue meant to relaunch UK-German relations.
But she said Brexit still felt like a death in the family as she implored Britain not to take the nuclear option of tearing up the Northern Ireland Protocol.
She said Britain and Germany's alliance would always be held back until that issue — a trade dispute with far deeper significance for peace, identity and sovereignty on the island of Ireland — is resolved.
While the EU says it will not go beyond adjusting the unpopular trade pact, Britain has not dropped its threat of unilateral action.
However, UK Foreign Secretary James Cleverly said there was a “much more constructive tone” in his talks with the European Commission.
“There is definitely, definitely a desire in the UK and across the EU to get a resolution on this,” he said.
Ms Baerbock said the EU was willing to be flexible and creative to address British concerns, while working within the boundaries of the protocol.
She said the war in Europe had shown the importance of preserving peace, as she urged Mr Cleverly not to breach international commitments while defending the rule of law in Ukraine.
“The implementation of the Northern Ireland Protocol remains the Achilles heel of the EU’s relations with the UK,” she said.
But she told a press conference: “The latest talks between the EU and the United Kingdom had a very positive tone.
“The feeling of having lost a family member remains. But that is life, and I want to make clear that this is history and we have to leave the wounds of the past behind.”
The ministers also discussed Ukraine, Iran, Afghanistan, energy and climate change in what is intended to become an annual strategy meeting.
Britain and Germany have both sent arms to Ukraine and committed as G7 and Nato allies to resisting Russia’s invasion for the long haul, while seeking to curb the Kremlin’s influence on the energy market.
Neither would be drawn on whether they would follow France by sending armoured vehicles to Ukraine, with both saying they would discuss with Ukraine what it needed.
A UK-German cultural commission is set to meet for the first time since 1993, with Ms Baerbock saying she wants to build new bridges for students, researchers and skilled workers to move between the two countries.
Her visit to Britain was meant to take place last year but was delayed repeatedly by upheaval in the UK, and then by bad weather that stranded her at an Irish airport last month.
While in Ireland, she said there was a “window of opportunity” to make a deal on the trade protocol. It came after Mr Cleverly said the “mood music” among officials had improved.
Irish Prime Minister Leo Varadkar took a conciliatory tone this week by saying the EU was ready for compromise and that the protocol was “perhaps a little bit too strict”.
Downing Street welcomed his comments, but Northern Irish unionists remain deeply unhappy over the protocol, which they say loosens ties between Belfast and the British mainland.
The aim of the protocol is to check goods when they enter Northern Ireland so there is no need for controls at the Irish border, which would be politically unacceptable and risk inflaming tension.
But Britain says the checks, demanded by the EU to protect its single market, are too cumbersome, and a bill to override them is still on the table in parliament.
“The protocol was not, is not and will not be supported by unionists,” Jeffrey Donaldson, the leader of Northern Ireland’s Democratic Unionist Party, said this week.
“Whilst Mr Varadkar’s comments indicate he now recognises the political reality in Northern Ireland, we need to see a fundamental change of attitude in the negotiations if we are to see an outcome that is durable.”
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
Essentials
The flights
Etihad and Emirates fly direct from the UAE to Delhi from about Dh950 return including taxes.
The hotels
Double rooms at Tijara Fort-Palace cost from 6,670 rupees (Dh377), including breakfast.
Doubles at Fort Bishangarh cost from 29,030 rupees (Dh1,641), including breakfast. Doubles at Narendra Bhawan cost from 15,360 rupees (Dh869). Doubles at Chanoud Garh cost from 19,840 rupees (Dh1,122), full board. Doubles at Fort Begu cost from 10,000 rupees (Dh565), including breakfast.
The tours
Amar Grover travelled with Wild Frontiers. A tailor-made, nine-day itinerary via New Delhi, with one night in Tijara and two nights in each of the remaining properties, including car/driver, costs from £1,445 (Dh6,968) per person.
RACE CARD
6.30pm: Maiden (TB) Dh82,500 (Dirt) 1,200m
7.05pm: Maiden (TB) Dh82,500 (D) 1,900m
7.40pm: Handicap (TB) Dh102,500 (D) 2,000m
8.15pm: Conditions (TB) Dh120,000 (D) 1,600m
8.50pm: Handicap (TB) Dh95,000 (D) 1,600m
9.25pm: Handicap (TB) Dh87,500 (D) 1,400m
Who's who in Yemen conflict
Houthis: Iran-backed rebels who occupy Sanaa and run unrecognised government
Yemeni government: Exiled government in Aden led by eight-member Presidential Leadership Council
Southern Transitional Council: Faction in Yemeni government that seeks autonomy for the south
Habrish 'rebels': Tribal-backed forces feuding with STC over control of oil in government territory
APPLE IPAD MINI (A17 PRO)
Display: 21cm Liquid Retina Display, 2266 x 1488, 326ppi, 500 nits
Chip: Apple A17 Pro, 6-core CPU, 5-core GPU, 16-core Neural Engine
Storage: 128/256/512GB
Main camera: 12MP wide, f/1.8, digital zoom up to 5x, Smart HDR 4
Front camera: 12MP ultra-wide, f/2.4, Smart HDR 4, full-HD @ 25/30/60fps
Biometrics: Touch ID, Face ID
Colours: Blue, purple, space grey, starlight
In the box: iPad mini, USB-C cable, 20W USB-C power adapter
Price: From Dh2,099
What is the FNC?
The Federal National Council is one of five federal authorities established by the UAE constitution. It held its first session on December 2, 1972, a year to the day after Federation.
It has 40 members, eight of whom are women. The members represent the UAE population through each of the emirates. Abu Dhabi and Dubai have eight members each, Sharjah and Ras al Khaimah six, and Ajman, Fujairah and Umm Al Quwain have four.
They bring Emirati issues to the council for debate and put those concerns to ministers summoned for questioning.
The FNC’s main functions include passing, amending or rejecting federal draft laws, discussing international treaties and agreements, and offering recommendations on general subjects raised during sessions.
Federal draft laws must first pass through the FNC for recommendations when members can amend the laws to suit the needs of citizens. The draft laws are then forwarded to the Cabinet for consideration and approval.
Since 2006, half of the members have been elected by UAE citizens to serve four-year terms and the other half are appointed by the Ruler’s Courts of the seven emirates.
In the 2015 elections, 78 of the 252 candidates were women. Women also represented 48 per cent of all voters and 67 per cent of the voters were under the age of 40.
TRAP
Starring: Josh Hartnett, Saleka Shyamalan, Ariel Donaghue
Director: M Night Shyamalan
Rating: 3/5
The low down on MPS
What is myofascial pain syndrome?
Myofascial pain syndrome refers to pain and inflammation in the body’s soft tissue. MPS is a chronic condition that affects the fascia (connective tissue that covers the muscles, which develops knots, also known as trigger points).
What are trigger points?
Trigger points are irritable knots in the soft tissue that covers muscle tissue. Through injury or overuse, muscle fibres contract as a reactive and protective measure, creating tension in the form of hard and, palpable nodules. Overuse and sustained posture are the main culprits in developing trigger points.
What is myofascial or trigger-point release?
Releasing these nodules requires a hands-on technique that involves applying gentle sustained pressure to release muscular shortness and tightness. This eliminates restrictions in connective tissue in orderto restore motion and alleviate pain. Therapy balls have proven effective at causing enough commotion in the tissue, prompting the release of these hard knots.
Auron Mein Kahan Dum Tha
Starring: Ajay Devgn, Tabu, Shantanu Maheshwari, Jimmy Shergill, Saiee Manjrekar
Director: Neeraj Pandey
Rating: 2.5/5
