Europe braces for tidal wave of refugees from across Mediterranean


Colin Randall
  • English
  • Arabic

MARSEILLES // Europeans watching from afar raise eyebrows at media images, or amateur footage when professional coverage is impossible, portraying events in the Middle East and North Africa.

But much as they deplore harsh measures to counter political protest, they are more concerned still at the threat that widespread unrest will lead to immigration, on an enormous scale, towards their own countries.

The Italian foreign minister, Franco Frattini, said yesterday the crisis in Libya could, if - as seems likely - it deepens, drive a wave of immigration across the Mediterranean on a "biblical scale".

"We know what awaits us when the Libyan regime falls: a wave of 200 to 300,000 immigrants," Mr Frattini told the Corriere della Sera newspaper.

Interior ministers from Italy, Cyprus, France, Greece, Malta and Spain met yesterday in Rome to ponder one inescapable fact: if a wind of protest is sweeping a region from Bahrain to the Maghreb, the hard rain it carries may well fall on Europe.

When the Tunisian riots led not only to the fall of president Zine el Abidine Ben Ali but also to an exodus, it was to Europe and notably Italy to which the departing Tunisians fled. Alarmed, Italy offered to dispatch its own police officers, a proposition rejected as an affront to Tunisian sovereignty, and then came up with money and technical expertise, readily accepted.

But still the immigrants come. Several thousands have arrived on the small Italian island of Lampedusa, numbers with which the authorities have struggled to cope.

Historical attachments also place Italy on the front line if, as seems inevitable, large numbers of Libyans try to escape the bloody unrest in their country.

European countries have reacted with collective dismay to Libyan warnings that it could suspend co-operation on human trafficking because of the EU's condemnation of the shooting of protesters.

"We are extremely concerned about the evolution of the situation in North Africa," Michele Cercone, speaking for the EU home affairs commissioner, Cecilia Malmstroem, told reporters.

Italy sees itself as engaged in perpetual struggle with the implications of an influx of people seeking a better life.

It has sought to stem the tide with a contentious arrangement with Libya that allows the Italian navy to intercept boat people and send them home. But ministers in Rome know that if Libya adopted a retaliatory more lax approach, or withdrew such co-operation, their own problems would worse,

Other southern European countries also fear fallout. France has ties with Tunisia, but also Morocco and especially Algeria. And the outbreak of serious protest in Morocco and simmering tension in Algeria leave France wary. Spain, too, has reason for concern.

All three countries, but particularly Italy and Spain, have pressing economic problems of their own. Public opinion demands more controls on immigration, not fewer.

The rhetoric of the far right in several European countries has influenced thinking generally, and there is a tendency to blame immigrants for such social ills as unemployment, insufficient housing and crime.

Integration is also an issue. Many of Maghrebin backgrounds are assimilated successfully into French society, for example; many more experience routine discrimination in jobs, education and housing.

Such problems arise already as a result of a more orderly stream of north and sub-Saharan Africans towards the northern shores of the Mediterranean.

If reports from Brussels are correct, the prospect of Muammar Qaddafi being swept from office in Libya, for so long, in the past, an event strongly desired in the West, is regarded by growing numbers of EU officials as a potential nightmare.

Mr Frattini believes the EU must make an immediate start on its own equivalent of the post-war Marshall Plan by funding a series of measures to help improve the lives of people in the region.

But he also voiced worries about the course some of the protests may be taking. "I'm extremely concerned about the self-proclamation of the so-called Islamic Emirate of Benghazi," Mr Frattini was quoted as saying on Tuesday. "Would you imagine having an Islamic Arab Emirate at the borders of Europe? That would be a really serious threat."

This may be seen in other quarters as scaremongering and an attempt by one beleaguered country to force the hands of others into a strategy of discouraging illegal immigration and actively stiffening resistance to it.

Most observers would accept that the EU foreign ministers were sincere when they said in a statement after their meeting on Monday: "The legitimate aspirations and demands of people for reform must be addressed through open, inclusive, meaningful and national Libyan-led dialogue."

Increasingly, however, the EU recognises that the crisis has the power to travel - and does not threaten one or two countries alone.

Laurent Wauquiez, France's European affairs minister, said: "With the migratory pressure centred in some countries - Greece, Malta, Italy and Spain - we cannot say to them, 'You're on you're own.' If we have common borders, we have to exercise community solidarity."

RESULTS

Bantamweight title:
Vinicius de Oliveira (BRA) bt Xavier Alaoui (MAR)
(KO round 2)
Catchweight 68kg:
Sean Soriano (USA) bt Noad Lahat (ISR)
(TKO round 1)
Middleweight:
Denis Tiuliulin (RUS) bt Juscelino Ferreira (BRA)
(TKO round 1)
Lightweight:
Anas Siraj Mounir (MAR) bt Joachim Tollefsen (DEN)
(Unanimous decision)
Catchweight 68kg:
Austin Arnett (USA) bt Daniel Vega (MEX)
(TKO round 3)
Lightweight:
Carrington Banks (USA) bt Marcio Andrade (BRA)
(Unanimous decision)
Catchweight 58kg:
Corinne Laframboise (CAN) bt Malin Hermansson (SWE)
(Submission round 2)
Bantamweight:
Jalal Al Daaja (CAN) bt Juares Dea (CMR)
(Split decision)
Middleweight:
Mohamad Osseili (LEB) bt Ivan Slynko (UKR)
(TKO round 1)
Featherweight:
Tarun Grigoryan (ARM) bt Islam Makhamadjanov (UZB)
(Unanimous decision)
Catchweight 54kg:
Mariagiovanna Vai (ITA) bt Daniella Shutov (ISR)
(Submission round 1)
Middleweight:
Joan Arastey (ESP) bt Omran Chaaban (LEB)
(Unanimous decision)
Welterweight:
Bruno Carvalho (POR) bt Souhil Tahiri (ALG)
(TKO)

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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.”

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