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.
Our legal consultant
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
The biog
Favourite films: Casablanca and Lawrence of Arabia
Favourite books: Start with Why by Simon Sinek and Good to be Great by Jim Collins
Favourite dish: Grilled fish
Inspiration: Sheikh Zayed's visionary leadership taught me to embrace new challenges.
Silent Hill f
Publisher: Konami
Platforms: PlayStation 5, Xbox Series X/S, PC
Rating: 4.5/5
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
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Profile
Company: Justmop.com
Date started: December 2015
Founders: Kerem Kuyucu and Cagatay Ozcan
Sector: Technology and home services
Based: Jumeirah Lake Towers, Dubai
Size: 55 employees and 100,000 cleaning requests a month
Funding: The company’s investors include Collective Spark, Faith Capital Holding, Oak Capital, VentureFriends, and 500 Startups.
GAC GS8 Specs
Engine: 2.0-litre 4cyl turbo
Power: 248hp at 5,200rpm
Torque: 400Nm at 1,750-4,000rpm
Transmission: 8-speed auto
Fuel consumption: 9.1L/100km
On sale: Now
Price: From Dh149,900
Champions League Last 16
Red Bull Salzburg (AUT) v Bayern Munich (GER)
Sporting Lisbon (POR) v Manchester City (ENG)
Benfica (POR) v Ajax (NED)
Chelsea (ENG) v Lille (FRA)
Atletico Madrid (ESP) v Manchester United (ENG)
Villarreal (ESP) v Juventus (ITA)
Inter Milan (ITA) v Liverpool (ENG)
Paris Saint-Germain v Real Madrid (ESP)
Our legal consultant
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
Simran
Director Hansal Mehta
Stars: Kangana Ranaut, Soham Shah, Esha Tiwari Pandey
Three stars
Liverpool 4-1 Shrewsbury
Liverpool
Gordon (34'), Fabinho (44' pen, 90' 3), Firmino (78')
Shrewsbury
Udoh (27'minutes)
Man of the Match: Kaide Gordon (Liverpool)
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
Islamophobia definition
A widely accepted definition was made by the All Party Parliamentary Group on British Muslims in 2019: “Islamophobia is rooted in racism and is a type of racism that targets expressions of Muslimness or perceived Muslimness.” It further defines it as “inciting hatred or violence against Muslims”.
On racial profiling at airports
Titanium Escrow profile
Started: December 2016
Founder: Ibrahim Kamalmaz
Based: UAE
Sector: Finance / legal
Size: 3 employees, pre-revenue
Stage: Early stage
Investors: Founder's friends and Family
What vitamins do we know are beneficial for living in the UAE
Vitamin D: Highly relevant in the UAE due to limited sun exposure; supports bone health, immunity and mood.
Vitamin B12: Important for nerve health and energy production, especially for vegetarians, vegans and individuals with absorption issues.
Iron: Useful only when deficiency or anaemia is confirmed; helps reduce fatigue and support immunity.
Omega-3 (EPA/DHA): Supports heart health and reduces inflammation, especially for those who consume little fish.
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Global state-owned investor ranking by size
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Other simple ideas for sushi rice dishes
Cheat’s nigiri
This is easier to make than sushi rolls. With damp hands, form the cooled rice into small tablet shapes. Place slices of fresh, raw salmon, mackerel or trout (or smoked salmon) lightly touched with wasabi, then press, wasabi side-down, onto the rice. Serve with soy sauce and pickled ginger.
Easy omurice
This fusion dish combines Asian fried rice with a western omelette. To make, fry cooked and cooled sushi rice with chopped vegetables such as carrot and onion and lashings of sweet-tangy ketchup, then wrap in a soft egg omelette.
Deconstructed sushi salad platter
This makes a great, fuss-free sharing meal. Arrange sushi rice on a platter or board, then fill the space with all your favourite sushi ingredients (edamame beans, cooked prawns or tuna, tempura veggies, pickled ginger and chilli tofu), with a dressing or dipping sauce on the side.
The specs: 2018 Renault Megane
Price, base / as tested Dh52,900 / Dh59,200
Engine 1.6L in-line four-cylinder
Transmission Continuously variable transmission
Power 115hp @ 5,500rpm
Torque 156Nm @ 4,000rpm
Fuel economy, combined 6.6L / 100km
Avatar: Fire and Ash
Director: James Cameron
Starring: Sam Worthington, Sigourney Weaver, Zoe Saldana
Rating: 4.5/5