BERLIN // The German government is facing accusations from opposition politicians and health experts that it has mishandled the deadly E coli outbreak that has claimed at least 22 lives over the past month.
Renate Künast, the parliamentary group leader of the opposition Greens party, said in an interview published on Monday in the Berliner Zeitung newspaper: "There is no crisis management whatsoever. I ask myself what the health minister and consumer protection minister are actually doing,"
Sales of fresh vegetables, especially tomatoes and lettuce, have collapsed, farmers are demanding compensation and public alarm is growing at what is increasingly being perceived as a chaotic response to the epidemic.
Hospitals in northern Germany, where the outbreak originated, have been overwhelmed by the number of patients and are running out of blood supplies. There is also a shortage of dialysis machines.
Critics say a key problem is that no central authority has taken overall charge of handling the crisis, because of a mixture of bureaucratic confusion over responsibilities and Germany's regionally fragmented health system, the result of its federal structure, with 16 powerful regional states.
For example, the Robert Koch Institute, Germany's national disease control and prevention agency, has no powers to interview patients itself: that is up to regional health authorities. This has slowed down the flow of key information, experts say.
The sluggish response, coupled with the fact that it takes up to 10 days after infection for the disease to show symptoms, could explain why the source has not been found yet. In fact, scientists are warning that it may never be located because the contaminated food may all have been consumed.
The German epidemic response system is slower than other developed nations such as the United States and Japan that have set up early warning mechanisms to help speed up the response to outbreaks such as E coli infections.
The public uncertainty has been compounded by unco-ordinated public announcements made by regional and national authorities. There is no telephone hotline.
Even within the national government, the division of responsibilities is obscure. It is unclear whether the health minister, Daniel Bahr, or the consumer affairs minister, Ilse Aigner, is in charge of handling the outbreak.
Hopes that the source had been found were dashed on Monday as health officials failed to find evidence that bean sprouts from an organic farm in Bienenbuettel in northern Germany caused the epidemic. They found no trace of EHEC, the dangerous strain of the bacterium, which has infected more than 2,300 people in 12 countries.
All the victims had been travelling in northern Germany. Many have developed haemolytic uraemic syndrome (HUS), a potentially fatal complication that can lead to lasting kidney damage.
The regional government of the northern state of Lower Saxony insisted yesterday that bean sprouts remained the possible cause, while Ms Aigner reiterated that tomatoes, cucumbers and lettuce should also be avoided.
The medical director of Berlin's Charité University Hospital, Ulrich Frei, criticized the Robert Koch Institute, saying it had only been issued with questionnaires for its EHEC patients last week, even though the outbreak began in early May.
"That's not enough," Dr Frei told Tagesspiegel, a local newspaper. "They should have interviewed the patients. We need a better information policy."
The initial warning by German authorities that Spanish cucumbers might be to blame was withdrawn after laboratory tests refuted the theory, but the accusation has enraged Spanish farmers who have suffered hundreds of millions of euros in damage through lost sales.
It emerged on Monday that the Federal Institute for Risk Assessment, another authority whose exact responsibilities in the current outbreak are unclear, had warned as recently as early May that bean sprouts were a notorious source of contamination with E coli and other pathogens.
"So why didn't the alarm bells go off when EHEC patients in northern Germany reported having eaten a lot of raw produce and salad?" wrote Die Welt, a leading national newspaper, in an editorial on Tuesday. "There appears to be a lack of co-ordination between the national government and the regional states, between national institutes and ministries."
There are growing demands for Germany to revamp its crisis response system, but Ms Aigner said now was not the time to talk about structures.
"We're all working together in this situation. There is no wrangling over responsibilities, none at all," she told Germany's ARD television network on Monday night. "The authorities are working around the clock."
However, Franz-Josef Holzenkamp, an expert on farming in the ruling Christian Democratic Union (CDU) party, conceded that changes may need to be made.
"The real responsibility in our republic lies with the regional states which are autonomous and in charge here," he told the Deutschlandfunk national radio station on Tuesday. "After the crisis we should maybe look closely at what mistakes may have been made, and correct them."
EU farm ministers met in Luxembourg yesterday to discuss financial aid to fruit and vegetable producers hit by the E. coli crisis. The European commissioner for agriculture, Dacian Ciolos, said the EU would propose offering at least €150 million (Dh807m) in compensation to farmers.
foreign.desk@thenational.ae
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5 of the most-popular Airbnb locations in Dubai
Bobby Grudziecki, chief operating officer of Frank Porter, identifies the five most popular areas in Dubai for those looking to make the most out of their properties and the rates owners can secure:
• Dubai Marina
The Marina and Jumeirah Beach Residence are popular locations, says Mr Grudziecki, due to their closeness to the beach, restaurants and hotels.
Frank Porter’s average Airbnb rent:
One bedroom: Dh482 to Dh739
Two bedroom: Dh627 to Dh960
Three bedroom: Dh721 to Dh1,104
• Downtown
Within walking distance of the Dubai Mall, Burj Khalifa and the famous fountains, this location combines business and leisure. “Sure it’s for tourists,” says Mr Grudziecki. “Though Downtown [still caters to business people] because it’s close to Dubai International Financial Centre."
Frank Porter’s average Airbnb rent:
One bedroom: Dh497 to Dh772
Two bedroom: Dh646 to Dh1,003
Three bedroom: Dh743 to Dh1,154
• City Walk
The rising star of the Dubai property market, this area is lined with pristine sidewalks, boutiques and cafes and close to the new entertainment venue Coca Cola Arena. “Downtown and Marina are pretty much the same prices,” Mr Grudziecki says, “but City Walk is higher.”
Frank Porter’s average Airbnb rent:
One bedroom: Dh524 to Dh809
Two bedroom: Dh682 to Dh1,052
Three bedroom: Dh784 to Dh1,210
• Jumeirah Lake Towers
Dubai Marina’s little brother JLT resides on the other side of Sheikh Zayed road but is still close enough to beachside outlets and attractions. The big selling point for Airbnb renters, however, is that “it’s cheaper than Dubai Marina”, Mr Grudziecki says.
Frank Porter’s average Airbnb rent:
One bedroom: Dh422 to Dh629
Two bedroom: Dh549 to Dh818
Three bedroom: Dh631 to Dh941
• Palm Jumeirah
Palm Jumeirah's proximity to luxury resorts is attractive, especially for big families, says Mr Grudziecki, as Airbnb renters can secure competitive rates on one of the world’s most famous tourist destinations.
Frank Porter’s average Airbnb rent:
One bedroom: Dh503 to Dh770
Two bedroom: Dh654 to Dh1,002
Three bedroom: Dh752 to Dh1,152
It Was Just an Accident
Director: Jafar Panahi
Stars: Vahid Mobasseri, Mariam Afshari, Ebrahim Azizi, Hadis Pakbaten, Majid Panahi, Mohamad Ali Elyasmehr
Rating: 4/5
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.”
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Abu Dhabi GP schedule
Friday: First practice - 1pm; Second practice - 5pm
Saturday: Final practice - 2pm; Qualifying - 5pm
Sunday: Etihad Airways Abu Dhabi Grand Prix (55 laps) - 5.10pm
The specs
- Engine: 3.9-litre twin-turbo V8
- Power: 640hp
- Torque: 760nm
- On sale: 2026
- Price: Not announced yet