German Chancellor Angela Merkel's conservatives suffered heavy losses in two important regional elections on Sunday, as voters punished the party for a series of pandemic setbacks and a face-mask procurement scandal.
Mrs Merkel's centre-right Christian Democratic Union endured its worst ever results in the south-western states of Baden-Wuerttemberg and Rhineland-Palatinate.
Both votes were regarded as a snapshot of the national mood before a general election on September 26 – when Mrs Merkel's successor will be chosen.
Norbert Roettgen, a senior figure in the CDU, described the disastrous results as a "wake-up call".
Paul Ziemiak, the CDU's general secretary, said the results were not necessarily related to national issues, but conceded more must be done to tackle the Covid-19 pandemic.
“We know that the coronavirus pandemic and the crisis management is troubling people, and we all have to ask ourselves where can we be faster, where can we be more pragmatic and where can be better,” Mr Ziemiak told ARD television.
The drubbing comes amid criticism of Germany's slow vaccinations, a delayed start to free rapid testing and a resurgence in infections despite months of shutdowns.
Mrs Merkel's CDU and its Bavarian CSU sister party, German's largest ruling bloc, were also hit in recent days by revelations of politicians apparently profiting from face-mask deals, prompting three MPs to resign in quick succession.
Mr Ziemiak said the accusations had hurt the party, and vowed the CDU would show "zero tolerance" towards politicians seeking to cash in on the health crisis.
Because of the pandemic, many votes were sent by postal ballot and observers cautioned that final results could still change.
In wealthy Baden-Wuerttemberg, the CDU slumped to about 24 per cent, from 27 per cent five years ago, latest estimates showed.
The left-leaning, ecologist Green Party won more than 32.7 per cent of the vote to achieve its best-ever result in any regional election.
Baden-Wuerttemberg is Germany's only region with a Green premier, Winfried Kretschmann, who after more than 10 years in office has forged a reputation as a centrist in a state that is also home to car giants Daimler and Porsche.
Mr Kretschmann could opt to maintain his current coalition government with the CDU, or build a new one with the centre-left Social Democrats and the pro-business Free Democratic Party.
Whichever option he chooses will be closely watched as it could serve as a blueprint for the first federal government of the post-Merkel era.
Greens co-leader Robert Habeck hailed a "super start to a super election year".
The Greens' popularity has surged nationwide in recent years on growing concern about climate change, and they could emerge as kingmakers in September's elections.
In neighbouring Rhineland-Palatinate, the CDU came second with some 27 per cent of the vote, down from almost 32 per cent in the previous regional election.
The centre-left SPD remained the largest party at around 36 per cent, roughly unchanged from 2016.
The result paves the way for popular SPD state premier Malu Dreyer to continue governing with the FDP and the Greens in what is known as a "traffic light" coalition, named after the parties' colours.
German Finance Minister Olaf Scholz, the SPD's candidate to replace Ms Merkel, said Sunday's results strengthened his bid to become chancellor.
"It is possible to form a government in Germany without the CDU/CSU," he said.
In both states, the far-right Alternative for Germany, or AfD, performed worse than in 2016, but still took around 10-11 per cent of the vote.
Although Mrs Merkel's CDU/CSU governs in a federal coalition with the SPD as a junior partner, much of the blame for the virus setbacks has fallen on the conservatives, particularly CDU Health Minister Jens Spahn.
Support for the CDU/CSU alliance has fallen to a one-year low at about 30 per cent, recent surveys show.
Sunday's rout is likely to pile pressure on new CDU chief Armin Laschet, who hopes to be nominated as chancellor candidate but lacks broad support.
Opinion polls suggest Germans would prefer to see Bavarian premier and CSU leader Markus Soeder run for the top job, but he has yet to throw his hat in the ring.
Observers say the pandemic fallout could not only risk the CDU/CSU's chances of staying in government after September's vote, it could also tarnish Ms Merkel's legacy as she prepares to bow out after 16 years.
Anghami
Started: December 2011
Co-founders: Elie Habib, Eddy Maroun
Based: Beirut and Dubai
Sector: Entertainment
Size: 85 employees
Stage: Series C
Investors: MEVP, du, Mobily, MBC, Samena Capital
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
The National Archives, Abu Dhabi
Founded over 50 years ago, the National Archives collects valuable historical material relating to the UAE, and is the oldest and richest archive relating to the Arabian Gulf.
Much of the material can be viewed on line at the Arabian Gulf Digital Archive - https://www.agda.ae/en
FFP EXPLAINED
What is Financial Fair Play?
Introduced in 2011 by Uefa, European football’s governing body, it demands that clubs live within their means. Chiefly, spend within their income and not make substantial losses.
What the rules dictate?
The second phase of its implementation limits losses to €30 million (Dh136m) over three seasons. Extra expenditure is permitted for investment in sustainable areas (youth academies, stadium development, etc). Money provided by owners is not viewed as income. Revenue from “related parties” to those owners is assessed by Uefa's “financial control body” to be sure it is a fair value, or in line with market prices.
What are the penalties?
There are a number of punishments, including fines, a loss of prize money or having to reduce squad size for European competition – as happened to PSG in 2014. There is even the threat of a competition ban, which could in theory lead to PSG’s suspension from the Uefa Champions League.
How to turn your property into a holiday home
- Ensure decoration and styling – and portal photography – quality is high to achieve maximum rates.
- Research equivalent Airbnb homes in your location to ensure competitiveness.
- Post on all relevant platforms to reach the widest audience; whether you let personally or via an agency know your potential guest profile – aiming for the wrong demographic may leave your property empty.
- Factor in costs when working out if holiday letting is beneficial. The annual DCTM fee runs from Dh370 for a one-bedroom flat to Dh1,200. Tourism tax is Dh10-15 per bedroom, per night.
- Check your management company has a physical office, a valid DTCM licence and is licencing your property and paying tourism taxes. For transparency, regularly view your booking calendar.
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if you go
The flights
Air France offer flights from Dubai and Abu Dhabi to Cayenne, connecting in Paris from Dh7,300.
The tour
Cox & Kings (coxandkings.com) has a 14-night Hidden Guianas tour of Guyana, Suriname and French Guiana. It includes accommodation, domestic flights, transfers, a local tour manager and guided sightseeing. Contact for price.
UAE tour of Zimbabwe
All matches in Bulawayo
Friday, Sept 26 – UAE won by 36 runs
Sunday, Sept 28 – Second ODI
Tuesday, Sept 30 – Third ODI
Thursday, Oct 2 – Fourth ODI
Sunday, Oct 5 – First T20I
Monday, Oct 6 – Second T20I
UAE currency: the story behind the money in your pockets
The White Lotus: Season three
Creator: Mike White
Starring: Walton Goggins, Jason Isaacs, Natasha Rothwell
Rating: 4.5/5
UAE currency: the story behind the money in your pockets