Germany was trying to limit damage to its reputation on Tuesday after a Russian spy scandal sparked frustration within Nato.
German Defence Minister Boris Pistorius played down security fears after Russia leaked a recording of a classified military meeting on the war in Ukraine.
"Of course we are reliable," Mr Pistorius said on a visit to Stockholm.
He found an ally in soon-to-be Nato member Sweden, whose Defence Minister Pal Jonsson agreed on Germany's reliability, but others appear less satisfied.
Mr Pistorius has been calling allies to insist the leak was a one-off security mistake.
Foreign Minister Annalena Baerbock hastily added a trip to Paris to her schedule on Tuesday, while Gewrman Chancellor Olaf Scholz met an elite commando unit to show his support for the armed forces.
Embarrassing leak
The recording leaked by Russia had something to aggravate almost everyone.
The Kremlin seized on chatter about striking a Crimean bridge to suggest Germany was a party to the war, an impression Mr Scholz has been desperate to avoid.
Talk of Britain having “people on the ground” in Ukraine was the second time in days that Germany appeared to have given that away, sparking irritation with Mr Scholz in Westminster.
At home, his argument that providing Taurus missiles would require German troops in Ukraine seemed to be contradicted by the leak, in which it was said Kyiv’s forces could operate them alone.
A further complaint in Berlin is that for all of Mr Scholz’s talk about a shift to a more robust security policy (known as the Zeitenwende, or watershed), the military’s apparent clumsiness tells a different story.
“Instead of following the arguments of his own officers, Olaf Scholz is doing exactly what Putin wants” by not sending the Taurus missiles, said conservative member Norbert Roettgen, a foreign policy specialist.
“That is disastrous as a signal to Moscow, because it shows that Russian pressure works.”
Reinhard Brandl, who sits on a defence committee in parliament, said it was time for ministers to strengthen Germany’s cyber defence after the latest Russian spy scandal.
An alleged Russian spy in Germany’s foreign intelligence service was arrested on suspicion of treason in 2022. The same year, a guard at the British embassy in Berlin admitted passing secrets to Moscow.
“Russia listened to a conversation among military officers about the deployment of Taurus in Ukraine. That shows once more that we’re still waiting for the Zeitenwende in cyber defence,” Mr Brandl said.
German response
German officials have hit back by accusing Russia of spreading propaganda and trying to sow division among Ukraine’s biggest backers.
Mr Pistorius said the leak was a one-off security mistake by a general who dialled into a WebEx call on an unsecured line from Singapore, possibly using hotel WiFi.
The call is believed to have been a “random hit” for Russian wiretappers and German military chiefs do not think they have a mole, according to Mr Pistorius.
The fact that Russia went public with its secret intelligence shows that "Putin is not interested in the information itself that he gathers", Mr Pistorius said.
"He just wanted to embarrass us, and to try to divide our unity and try to undermine our support for Ukraine."
Ms Baerbock will follow her French meeting by hosting the UK's Foreign Secretary David Cameron on Thursday.
While UK ministers have refrained from criticising Mr Scholz, leading security voices have not held back after the chancellor implied British and French troops were helping Ukraine to fire missiles.
Alicia Kearns, the head of the UK Parliament’s foreign affairs committee, last week described Mr Scholz’s comments as “wrong, irresponsible and a slap in the face to allies”.
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
WandaVision
Starring: Elizabeth Olsen, Paul Bettany
Directed by: Matt Shakman
Rating: Four stars
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
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)
Killing of Qassem Suleimani
A MINECRAFT MOVIE
Director: Jared Hess
Starring: Jack Black, Jennifer Coolidge, Jason Momoa
Rating: 3/5
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.”
UAE v IRELAND
All matches start at 10am, and will be played in Abu Dhabi
1st ODI, Friday, January 8
2nd ODI, Sunday, January 10
3rd ODI, Tuesday, January 12
4th ODI, Thursday, January 14
The specs
- Engine: 3.9-litre twin-turbo V8
- Power: 640hp
- Torque: 760nm
- On sale: 2026
- Price: Not announced yet
Votes
Total votes: 1.8 million
Ashraf Ghani: 923,592 votes
Abdullah Abdullah: 720,841 votes
TECH%20SPECS%3A%20APPLE%20WATCH%20SERIES%208
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