The European Union is in a right pickle, and not just because of the beleaguered euro, argues Jean-Claude Piris, one of the Union's foremost legal experts in his new book The Future of Europe: Towards a Two-Speed EU?
Piris is a stalwart believer in the European Union and has been on the inside track of its dramatic transformations for more than two decades. For this reason, he maintains, the body of now 27 nations has to change radically if it’s going to fend for itself in the rough-and-tumble world of the 21st century.
Of course, Piris begins by singing the union’s praises: peace, reconciliation, the internal market, prosperity, liberal democracy and so on. But then he weighs into the object that he professes to love so much.
The 2009 Lisbon Treaty, which was designed to streamline and reinvigorate the EU’s ungainly structures, simply hasn’t delivered. The union’s post-Lisbon incarnation still isn’t right for an expanding club, which began with just six members and within a few years could have swollen to more than 30. The needs and interests of Greeks and Swedes, Romanians and Irish, Germans and Portuguese, are simply too heterogeneous to fit under one hat. The one-size-fits-all approach to monetary policy that dragged the eurozone countries into their present mess also spells trouble for a whole range of other matters, from migration to justice.
In fact, the closer he looks at its dysfunctional parts, the more convinced Piris – and his readers – become that the whole thing is badly broken and that what is needed is not patchwork repairs but a major overhaul.
The council, for example, which acts as the EU’s collective presidency, is still forced to take its most meaningful steps by unanimous vote. And where “qualified majority voting” is permissible (Lisbon expanded these areas) its steep requirements are still significantly more demanding than those for laws in the individual member states. The simple fact that the number of participants is ever more as the union expands, makes the council’s decision-making process that much more cumbersome.
And the naming of a full-time president, currently the Belgian Herman van Rompuy, as well as a high representative for foreign affairs, which is Catherine Ashton, hasn’t helped much either. Both of these new offices were supposed to strengthen the centre of the EU, as both were independent of the national authorities of any one member state. The EU’s de facto foreign minister, complete with a full-time multinational diplomatic corps, was appointed to enable the EU to speak powerfully in world affairs, so that finally its diplomatic clout would equal its economic gravitas. But this hasn’t panned out and both figures have been undercut by rivals within the union’s structures and in the member states.
As for the commission, the EU’s executive, it is also burdened by the magnitude of its ranks. There are 27 commissioners, one from each state, each with a different portfolio (environment, justice, social affairs, etc). Try as reformers might, they couldn’t come up with a way of cutting back and rotating offices in a way that was palatable to member states. In a nutshell, nobody wants to be left out in a given term, which is what slimming down would have meant. Moreover, Piris rightly laments that the commissioners tend to represent the national interests of their homelands rather than those of all Europe.
And then there is the European Parliament (EP), Europe’s legislature, which Lisbon was meant to buff up in terms of clout and at the same time put in closer touch with European voters, thus narrowing the infamous democracy deficit. But this too has largely flopped. The EP has new powers of democratic control, in an array of fields, but the directly elected “MEPs” are still as distant as ever from the grassroots.
Since 1979, when the EP had next to no power at all, voters have been turning out for elections in steadily decreasing numbers. In 2009 it was just 43 per cent of those eligible. And those who show up at the ballot boxes tend to vote on the basis of national politics, not EU affairs, which most people can’t – or just don’t – follow. Trust in the EU in general, and the EP in particular, is at an all-time low.
For these reasons – and others – the union has failed to live up to its potential in fields including defence, foreign policy, social affairs, energy and even the internal market, which Piris thinks could and should work better.
So what to do?
Obviously a Europe devotee on the scale of Piris would prefer to have the key treaties revamped in a fundamental way to address these shortcomings. But this implies a long, bloody process of ratifications in all of the member states. The bruising battles to get Lisbon passed – with the Irish, French and Dutch “no votes” – are still fresh in the minds of those who were on the front lines. The fact of the matter is that it simply wouldn’t happen.
Another route would be to work with what exists – and to try to take the Lisbon improvements (many of which haven’t been implemented in full) as far as possible. Yet this is simply reformulating the current quandary: if there were the will to do this, the Europeans could and would do it. But they can’t or won’t.
Piris’s choice of remedy is a “two-speed” solution that enables one grouping of member states, perhaps those of the eurozone, to function as an advance party, while the others catch up at their own speed. Different versions of this two-speed Europe idea have been floated for a long time. In the past, it was Europhiles like Piris who shunned the option, not wanting to divide a Europe that had been so recently united, but now it’s simply the lesser of two evils if the EU wants to succeed. And Piris underscores that “two speeds” doesn’t mean “two tiers” or “two classes”. The difference is that “two speeds” means the “development of closer cooperation among some member states, pursuing objectives that are common to all EU member states”. The smaller group would forge ahead immediately, while the others, travelling at their own speeds, would follow and join at a later date. “Two tiers” or “two classes”, on the other hand, implies a permanent and irreversible separation.
In fact, there is already a range of issues on which different clusters of member states cooperate independently of others. Two of the most prominent examples are the euro and the Schengen border regime. But Piris argues that cooperation shouldn’t happen a la carte or ad hoc. Rather the advance group would be clearly defined, perhaps even by a treaty, co-operating on all of the issues it deems appropriate, for example, energy, defence, economic and monetary union, social rights, the internal market, immigration, foreign affairs and others.
The choice, argues Piris reluctantly, is between “the status quo, which might mean a diluted EU, slowly stagnating and becoming irrelevant, and an EU that accepts, as a temporary measure, more differentiation between its member states”. Especially in times of economic crisis, like the present, when the EU is imposing austerity and discipline measures with an iron hand, it has to offer something positive too. This is a wider political project of ever closer integration. Otherwise, the EU’s ambitions of sitting at the table with superpowers such as the US and China will be over before they ever get off the ground.
Paul Hockenos is the author of Joschka Fischer and the Making of the Berlin Republic: An Alternative History of Postwar Germany.
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.”
Company%20Profile
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COMPANY PROFILE
Name: Kumulus Water
Started: 2021
Founders: Iheb Triki and Mohamed Ali Abid
Based: Tunisia
Sector: Water technology
Number of staff: 22
Investment raised: $4 million
PROFILE OF CURE.FIT
Started: July 2016
Founders: Mukesh Bansal and Ankit Nagori
Based: Bangalore, India
Sector: Health & wellness
Size: 500 employees
Investment: $250 million
Investors: Accel, Oaktree Capital (US); Chiratae Ventures, Epiq Capital, Innoven Capital, Kalaari Capital, Kotak Mahindra Bank, Piramal Group’s Anand Piramal, Pratithi Investment Trust, Ratan Tata (India); and Unilever Ventures (Unilever’s global venture capital arm)
FIGHT%20CARD
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Where to submit a sample
Volunteers of all ages can submit DNA samples at centres across Abu Dhabi, including: Abu Dhabi National Exhibition Centre (Adnec), Biogenix Labs in Masdar City, NMC Royal Hospital in Khalifa City, NMC Royal Medical Centre, Abu Dhabi, NMC Royal Women's Hospital, Bareen International Hospital, Al Towayya in Al Ain, NMC Specialty Hospital, Al Ain
Specs
Engine: 51.5kW electric motor
Range: 400km
Power: 134bhp
Torque: 175Nm
Price: From Dh98,800
Available: Now
Skewed figures
In the village of Mevagissey in southwest England the housing stock has doubled in the last century while the number of residents is half the historic high. The village's Neighbourhood Development Plan states that 26% of homes are holiday retreats. Prices are high, averaging around £300,000, £50,000 more than the Cornish average of £250,000. The local average wage is £15,458.
Company%20Profile
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UAE currency: the story behind the money in your pockets
In numbers: PKK’s money network in Europe
Germany: PKK collectors typically bring in $18 million in cash a year – amount has trebled since 2010
Revolutionary tax: Investigators say about $2 million a year raised from ‘tax collection’ around Marseille
Extortion: Gunman convicted in 2023 of demanding $10,000 from Kurdish businessman in Stockholm
Drug trade: PKK income claimed by Turkish anti-drugs force in 2024 to be as high as $500 million a year
Denmark: PKK one of two terrorist groups along with Iranian separatists ASMLA to raise “two-digit million amounts”
Contributions: Hundreds of euros expected from typical Kurdish families and thousands from business owners
TV channel: Kurdish Roj TV accounts frozen and went bankrupt after Denmark fined it more than $1 million over PKK links in 2013
Formula Middle East Calendar (Formula Regional and Formula 4)
Round 1: January 17-19, Yas Marina Circuit – Abu Dhabi
Round 2: January 22-23, Yas Marina Circuit – Abu Dhabi
Round 3: February 7-9, Dubai Autodrome – Dubai
Round 4: February 14-16, Yas Marina Circuit – Abu Dhabi
Round 5: February 25-27, Jeddah Corniche Circuit – Saudi Arabia
COMPANY%20PROFILE
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The%20specs%3A%202024%20Mercedes%20E200
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Scores in brief:
- New Medical Centre 129-5 in 17 overs bt Zayed Cricket Academy 125-6 in 20 overs.
- William Hare Abu Dhabi Gymkhana 188-8 in 20 overs bt One Stop Tourism 184-8 in 20 overs
- Alubond Tigers 138-7 in 20 overs bt United Bank Limited 132-7 in 20 overs
- Multiplex 142-6 in 17 overs bt Xconcepts Automobili 140 all out in 20 overs
Israel Palestine on Swedish TV 1958-1989
Director: Goran Hugo Olsson
Rating: 5/5
BORDERLANDS
Starring: Cate Blanchett, Kevin Hart, Jamie Lee Curtis
Director: Eli Roth
Rating: 0/5
The rules on fostering in the UAE
A foster couple or family must:
- be Muslim, Emirati and be residing in the UAE
- not be younger than 25 years old
- not have been convicted of offences or crimes involving moral turpitude
- be free of infectious diseases or psychological and mental disorders
- have the ability to support its members and the foster child financially
- undertake to treat and raise the child in a proper manner and take care of his or her health and well-being
- A single, divorced or widowed Muslim Emirati female, residing in the UAE may apply to foster a child if she is at least 30 years old and able to support the child financially
COMPANY%20PROFILE
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The specs
Engine: 4.0-litre flat-six
Torque: 450Nm at 6,100rpm
Transmission: 7-speed PDK auto or 6-speed manual
Fuel economy, combined: 13.8L/100km
On sale: Available to order now
NO OTHER LAND
Director: Basel Adra, Yuval Abraham, Rachel Szor, Hamdan Ballal
Stars: Basel Adra, Yuval Abraham
Rating: 3.5/5
A timeline of the Historical Dictionary of the Arabic Language
- 2018: Formal work begins
- November 2021: First 17 volumes launched
- November 2022: Additional 19 volumes released
- October 2023: Another 31 volumes released
- November 2024: All 127 volumes completed
Know your Camel lingo
The bairaq is a competition for the best herd of 50 camels, named for the banner its winner takes home
Namoos - a word of congratulations reserved for falconry competitions, camel races and camel pageants. It best translates as 'the pride of victory' - and for competitors, it is priceless
Asayel camels - sleek, short-haired hound-like racers
Majahim - chocolate-brown camels that can grow to weigh two tonnes. They were only valued for milk until camel pageantry took off in the 1990s
Millions Street - the thoroughfare where camels are led and where white 4x4s throng throughout the festival
Nayanthara: Beyond The Fairy Tale
Starring: Nayanthara, Vignesh Shivan, Radhika Sarathkumar, Nagarjuna Akkineni
Director: Amith Krishnan
Rating: 3.5/5
UAE currency: the story behind the money in your pockets
Moon Music
Artist: Coldplay
Label: Parlophone/Atlantic
Number of tracks: 10
Rating: 3/5
The specs: 2018 Nissan 370Z Nismo
The specs: 2018 Nissan 370Z Nismo
Price, base / as tested: Dh182,178
Engine: 3.7-litre V6
Power: 350hp @ 7,400rpm
Torque: 374Nm @ 5,200rpm
Transmission: Seven-speed automatic
Fuel consumption, combined: 10.5L / 100km
