German leader Angela Merkel on Friday resisted calls to remove patent protections on Covid-19 vaccines as a way of boosting global supplies.
Rich countries are under pressure to address the imbalance in global vaccination rates, with the global Covax scheme falling short of its targets.
Washington this month backed the idea of waiving patents, but the German chancellor spoke out against the idea at a Global Solutions Initiative event where she said companies needed incentives to produce the shots.
She said that suspending patent rights could discourage companies from developing medicines for future virus mutations or new diseases.
“Those who have been developing these vaccines with breathtaking speed – if we were to turn to them and say you’ll have to forsake your patents right now, I don’t think that would be the best thing to do,” she said.
“We’re talking about companies here that have the capability to produce these vaccines, and all of a sudden we take away the patents from them.
“I don’t want the message to go out that in the next crisis situation, it is no longer worthwhile for companies to invest or to work hard to develop goods or produce medicine.”
Ms Merkel said Germany had provided Covax with more than €2.2 billion ($2.67bn) in funding, but that money was not the main issue.
“We have found that it doesn’t help a lot to have a lot of money in the account of Covax, because we don’t have enough vaccines,” she said. "We need to produce more, much more than we have done so far.
“I believe we need incentives for the respective companies to further invest in development.”
Warning over virus mutations in unvaccinated countries
Unicef said last week that Covax faced a shortfall of nearly 190 million doses by next month, partly because of the disastrous second wave of the pandemic in India.
At current rates, some developing countries face waiting until 2023 or 2024 to vaccinate their populations against Covid-19.
Italian premier Mario Draghi, speaking alongside Ms Merkel, said Europe had a stake in boosting vaccine access in Africa.
“So long as the pandemic rages on, the virus can undergo dangerous mutations that can undermine even the most successful vaccination campaign,” he said.
The EU last week announced a plan to donate at least 100 million vaccine doses to poorer countries by the end of the year.
But EU leaders reacted sceptically to the Biden administration’s support for suspending patents, despite pressure from human rights groups.
Ms Merkel said pharmaceutical companies should be encouraged to invest in Africa.
“There will be further virus mutations, there will be new pathogens coming up and this is why we need to prepare for further pandemic threats,” Ms Merkel said.
“So we should not reduce incentives for research and development, but rather we ought to maintain it. Patent protection plays a very important role in this respect."
Lamenting a lack of preparation for the pandemic, Ms Merkel said Germany had tried to put the issue on the global agenda during its G7 and G20 presidencies in 2015 and 2017.
She said some progress had been made but wished that countries had taken more steps to prepare.
But, she conceded, “at the time, no one would probably have been able to imagine that this issue would become so pressing”.
German intelligence warnings
- 2002: "Hezbollah supporters feared becoming a target of security services because of the effects of [9/11] ... discussions on Hezbollah policy moved from mosques into smaller circles in private homes." Supporters in Germany: 800
- 2013: "Financial and logistical support from Germany for Hezbollah in Lebanon supports the armed struggle against Israel ... Hezbollah supporters in Germany hold back from actions that would gain publicity." Supporters in Germany: 950
- 2023: "It must be reckoned with that Hezbollah will continue to plan terrorist actions outside the Middle East against Israel or Israeli interests." Supporters in Germany: 1,250
Source: Federal Office for the Protection of the Constitution
The five pillars of Islam
Specs
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Range: 400km
Power: 134bhp
Torque: 175Nm
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Results
Stage 7:
1. Caleb Ewan (AUS) Lotto Soudal - 3:18:29
2. Sam Bennett (IRL) Deceuninck-QuickStep - same time
3. Phil Bauhaus (GER) Bahrain Victorious
4. Michael Morkov (DEN) Deceuninck-QuickStep
5. Cees Bol (NED) Team DSM
General Classification:
1. Tadej Pogacar (SLO) UAE Team Emirates - 24:00:28
2. Adam Yates (GBR) Ineos Grenadiers - 0:00:35
3. Joao Almeida (POR) Deceuninck-QuickStep - 0:01:02
4. Chris Harper (AUS) Jumbo-Visma - 0:01:42
5. Neilson Powless (USA) EF Education-Nippo - 0:01:45
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
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Lexus LX700h specs
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Transmission: 10-speed auto
Fuel consumption: 11.7L/100km
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How to wear a kandura
Dos
- Wear the right fabric for the right season and occasion
- Always ask for the dress code if you don’t know
- Wear a white kandura, white ghutra / shemagh (headwear) and black shoes for work
- Wear 100 per cent cotton under the kandura as most fabrics are polyester
Don’ts
- Wear hamdania for work, always wear a ghutra and agal
- Buy a kandura only based on how it feels; ask questions about the fabric and understand what you are buying
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