BERLIN // Angela Merkel, under fire at home and abroad for her handling of the euro debt crisis and a perceived lack of leadership, is unlikely to have found much solace in being named the world's most powerful woman by Forbes last month.
The German chancellor is battling a rebellion in her conservative party over the single currency, and her political future hangs in the balance ahead of a parliamentary vote on crucial changes to the euro bailout fund.
Meanwhile, German elder statesmen, including her former mentor, Helmut Kohl, have been lining up to attack her foreign policy record, and Mrs Merkel's international partners are worried that Germany has become more unilateralist and less reliable under her government.
Commentators say Mrs Merkel, after six years as German leader, may be facing her twilight unless she gets her party back in line and manages to reassure voters, who are increasingly alarmed at the prospect of having to foot the bill for the European debt crisis.
Her Christian Democratic Union (CDU) party has suffered a series of regional election defeats this year. The loss of power in March in the large, wealthy south-western state of Baden-Württemberg, a CDU bastion since 1953, was a particularly stinging blow.
Mrs Merkel had planned to campaign yesterday for the CDU at location election rallies, but her father, Horst Kasner, passed away on Friday and she cancelled all of her appearances.
The most damaging criticism of Mrs Merkel has come from Mr Kohl, 81, the longest-serving post-war chancellor. He is frail and wheelchair-bound, but his voice still carries weight, especially among older conservative voters, and his verdict on Mrs Merkel in a magazine interview last month was damning.
"Germany has not been a predictable force for several years now - neither at home nor abroad," Mr Kohl, who led Germany for 16 years until 1998, told Internationale Politik. "The enormous changes in the world can be no excuse for having no view or idea where you belong and where you are going." Germany, he added, lacked a "compass".
He was referring in part to Mrs Merkel's decision to abstain in the UN Security Council vote in March authorising Nato military action in Libya, a decision that broke with Germany's decades-old tradition of loyalty to its Western partners and was described by commentators as its biggest foreign policy mistake since the end of the Second World War.
In abstaining, Germany sided with Russia and China, and angered France, Britain and the United States. The success of the Nato operation has embarrassed Berlin, and Mrs Merkel's foreign minister, Guido Westerwelle, came under pressure to resign after he initially suggested the downfall of Colonel Muammar Qaddafi was brought about by the economic sanctions backed by Germany, rather than by the air strikes.
There have been other examples of Germany veering away from its partners. Mrs Merkel brushed off calls from France and the US to scale down Germany's perennial trade surpluses, seen as a source of economic imbalance in the world. And she did not consult European neighbours before she decided to phase out nuclear power generation in Germany following the Fukushima nuclear accident.
Mrs Merkel's reluctance over the past 18 months to bail out ailing euro zone member countries, and her insistence that those nations impose crippling austerity packages, has fuelled concern among partners that she is less committed to European integration than previous German leaders.
Her position is more precarious than it has been at any time since she took office in 2005. Some two dozen MPs from the CDU have threatened to vote against the EU agreement to increase the size and scope of the €440 billion (Dh2.3 trillion) euro rescue fund in a parliamentary vote on September 29, because they believe this would cause a massive, long-term redistribution of wealth from Germany to weaker EU members.
Her coalition only has a majority of 19 in the 620-seat parliament. If she fails to get enough backing from her own MPs, her authority will suffer a potentially fatal blow, and she may call a vote of confidence or seek an early election.
"It would be the beginning of the end of her chancellorship," Gerd Langguth, Mrs Merkel's biographer, told The National.
In an apparent response to attacks that she is not pro-European enough, Mrs Merkel has been peppering recent statements with uncharacteristically flowery rhetoric. She said last week that European integration filled her with "awe and humility" and that "Europe is the solution".
"Merkel has always had trouble conveying emotion," said Prof Langguth. "Someone told her to sound more emotional about Europe, so she did. I do think she's a committed European, but from the head rather than from the heart."
Mrs Merkel is in a quandary. German taxpayers don't want to go on underwriting the debt of nations that fail to live up to Teutonic fiscal discipline. They are also deeply wary of ceding more sovereignty to EU institutions, even though that may be the only way to overcome the debt crisis.
But the rest of Europe wants Germany, the continent's biggest economy, to bail it out, and to continue its tradition of unquestioning support for the bloc.
foreign.desk@thenational.ae
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
Company%20profile
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How it works
A $10 hand-powered LED light and battery bank
Device is operated by hand cranking it at any time during the day or night
The charge is stored inside a battery
The ratio is that for every minute you crank, it provides 10 minutes light on the brightest mode
A full hand wound charge is of 16.5minutes
This gives 1.1 hours of light on high mode or 2.5 hours of light on low mode
When more light is needed, it can be recharged by winding again
The larger version costs between $18-20 and generates more than 15 hours of light with a 45-minute charge
No limit on how many times you can charge
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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.”
Chelsea 2 Burnley 3
Chelsea Morata (69'), Luiz (88')
Burnley Vokes (24', 43'), Ward (39')
Red cards Cahill, Fabregas (Chelsea)
Our legal consultants
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
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Killing of Qassem Suleimani
The specs
Engine: 3.0-litre six-cylinder MHEV
Power: 360bhp
Torque: 500Nm
Transmission: eight-speed automatic
Price: from Dh282,870
On sale: now
UPI facts
More than 2.2 million Indian tourists arrived in UAE in 2023
More than 3.5 million Indians reside in UAE
Indian tourists can make purchases in UAE using rupee accounts in India through QR-code-based UPI real-time payment systems
Indian residents in UAE can use their non-resident NRO and NRE accounts held in Indian banks linked to a UAE mobile number for UPI transactions
If you go
Flight connections to Ulaanbaatar are available through a variety of hubs, including Seoul and Beijing, with airlines including Mongolian Airlines and Korean Air. While some nationalities, such as Americans, don’t need a tourist visa for Mongolia, others, including UAE citizens, can obtain a visa on arrival, while others including UK citizens, need to obtain a visa in advance. Contact the Mongolian Embassy in the UAE for more information.
Nomadic Road offers expedition-style trips to Mongolia in January and August, and other destinations during most other months. Its nine-day August 2020 Mongolia trip will cost from $5,250 per person based on two sharing, including airport transfers, two nights’ hotel accommodation in Ulaanbaatar, vehicle rental, fuel, third party vehicle liability insurance, the services of a guide and support team, accommodation, food and entrance fees; nomadicroad.com
A fully guided three-day, two-night itinerary at Three Camel Lodge costs from $2,420 per person based on two sharing, including airport transfers, accommodation, meals and excursions including the Yol Valley and Flaming Cliffs. A return internal flight from Ulaanbaatar to Dalanzadgad costs $300 per person and the flight takes 90 minutes each way; threecamellodge.com
EA Sports FC 25
Developer: EA Vancouver, EA Romania
Publisher: EA Sports
Consoles: Nintendo Switch, PlayStation 4&5, Xbox One and Xbox Series X/S
Rating: 3.5/5
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Moon Music
Artist: Coldplay
Label: Parlophone/Atlantic
Number of tracks: 10
Rating: 3/5
The biog
Hobbies: Salsa dancing “It's in my blood” and listening to music in different languages
Favourite place to travel to: “Thailand, as it's gorgeous, food is delicious, their massages are to die for!”
Favourite food: “I'm a vegetarian, so I can't get enough of salad.”
Favourite film: “I love watching documentaries, and am fascinated by nature, animals, human anatomy. I love watching to learn!”
Best spot in the UAE: “I fell in love with Fujairah and anywhere outside the big cities, where I can get some peace and get a break from the busy lifestyle”
Key figures in the life of the fort
Sheikh Dhiyab bin Isa (ruled 1761-1793) Built Qasr Al Hosn as a watchtower to guard over the only freshwater well on Abu Dhabi island.
Sheikh Shakhbut bin Dhiyab (ruled 1793-1816) Expanded the tower into a small fort and transferred his ruling place of residence from Liwa Oasis to the fort on the island.
Sheikh Tahnoon bin Shakhbut (ruled 1818-1833) Expanded Qasr Al Hosn further as Abu Dhabi grew from a small village of palm huts to a town of more than 5,000 inhabitants.
Sheikh Khalifa bin Shakhbut (ruled 1833-1845) Repaired and fortified the fort.
Sheikh Saeed bin Tahnoon (ruled 1845-1855) Turned Qasr Al Hosn into a strong two-storied structure.
Sheikh Zayed bin Khalifa (ruled 1855-1909) Expanded Qasr Al Hosn further to reflect the emirate's increasing prominence.
Sheikh Shakhbut bin Sultan (ruled 1928-1966) Renovated and enlarged Qasr Al Hosn, adding a decorative arch and two new villas.
Sheikh Zayed bin Sultan (ruled 1966-2004) Moved the royal residence to Al Manhal palace and kept his diwan at Qasr Al Hosn.
Sources: Jayanti Maitra, www.adach.ae
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AI traffic lights to ease congestion at seven points to Sheikh Zayed bin Sultan Street
The seven points are:
Shakhbout bin Sultan Street
Dhafeer Street
Hadbat Al Ghubainah Street (outbound)
Salama bint Butti Street
Al Dhafra Street
Rabdan Street
Umm Yifina Street exit (inbound)