Valletta // The European Union has demanded that Britain make “significant progress” on its divorce from the bloc before talks on a trade deal can start, in tough Brexit negotiating guidelines unveiled on Friday.
EU president Donald Tusk rejected British prime minister Theresa May’s demand for immediate parallel negotiations in her letter triggering the Brexit process on Wednesday.
Mr Tusk said London must first make headway on the paying the costs of the split, safeguarding the rights of three million European citizens living in Britain, and also the border in Northern Ireland.
The clash underscored the tensions in the divorce as Britain prepares to be the first country to leave the EU in its 60-year history.
The fallout from Brexit kept coming for London on Friday, with Spain pressing its claim to Gibraltar and Scotland formally calling for a second independence referendum.
“The EU 27 does not and will not pursue a punitive approach. Brexit itself is already punitive enough,” Mr Tusk said as he revealed his plans in Malta, which currently holds the EU rotating presidency.
The draft guidelines set the tone for the coming two years of Brexit talks and will now be sent to the capitals of the 27 remaining EU countries ahead of a special summit in Brussels on April 29.
Mr Tusk’s guidelines appeared to offer a small compromise, saying that some trade talks could eventually be held at the same time, but he insisted on a “phased approach” during the Brexit process.
“Starting parallel talks on all issues at the same time as suggested by some in the UK will not happen,” the former Polish premier said.
“Once and only once we have achieved sufficient progress on the withdrawal can we discuss the framework for our future relationship.”
France and Germany have led opposition to the parallel talks that Ms May had demanded.
But Britain is keen to get things moving as quickly as possible, fearing the “cliff edge” of an exit from the EU’s single market in March 2019 without a new deal.
London said it had expected a “robust” position in the EU guidelines.
“We’ve been clear for some time now we expected robust positions to be taken at the start. The negotiation will get under way and let’s see where we end up,” a spokesman for Mrs May said.
Brexit got off to a rocky start after Mrs May warned in her letter that failure to clinch a deal on trade would affect Britain’s cooperation on terrorism and security.
Mr Tusk ruled out the suggestion there was an inherent threat in the warning.
“I know Theresa May well enough and I know her approach to this issue. This is why I rule out this kind of interpretation ... that security cooperation is used as a bargaining chip. It must be a misunderstanding,” he said.
British foreign secretary Boris Johnson, in Brussels as Nato ministers met US secretary of state Rex Tillerson, said London was committed to European security and that it was “not some bargaining chip” in the Brexit talks.
Britain’s very unity is at stake in the negotiations.
The EU’s guidelines state that Spain must have a say over whether any post-Brexit deal applies to the British territory of Gibraltar, over which London and Madrid have rowed for 300 years. The outpost at the southern point of the Iberian Peninsula has a population of 32,000 and about 96 per cent of its residents voted to remain in the EU last year.
Scotland’s government meanwhile made a formal request to London for a second vote on Scottish independence, given that a majority of Scots also voted to stay in the EU.
“The people of Scotland must have the right to choose our own future,” said First Minister Nicola Sturgeon, who has called for a new vote by early 2019.
EU-UK talks could start as soon as May 22 when the bloc’s Brexit negotiator Michel Barnier is expected to get a mandate from the EU 27, although “pre-negotiations” on the language and format of the discussions could begin sooner.
European officials suggested enough progress could be made on the divorce arrangements by the end of the year to begin trade talks, although EU leaders will have the final say.
But time will be short as Mr Barnier has said that a draft deal is needed by October 2018 if it is to be ratified in time by the European parliament and member states.
The EU guidelines say they are also open to a transitional arrangement after Brexit as a “bridge” to a future deal some years down the line.
But the bloc insisted that it would have to be under EU rules and the European Court of Justice, a politically toxic condition in Britain give that national sovereignty was a key issue in the Brexit referendum.
The EU said meanwhile it would “prepare itself to be able to handle the situation also if the negotiations were to fail”.
* Agence France-Presse with additional reporting from Associated Press
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Remaining Fixtures
Wednesday: West Indies v Scotland
Thursday: UAE v Zimbabwe
Friday: Afghanistan v Ireland
Sunday: Final
The biog
Age: 46
Number of Children: Four
Hobby: Reading history books
Loves: Sports
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.”
The biog
Name: Mariam Ketait
Emirate: Dubai
Hobbies: I enjoy travelling, experiencing new things, painting, reading, flying, and the French language
Favourite quote: "Be the change you wish to see" - unknown
Favourite activity: Connecting with different cultures
Cry Macho
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Rating:**
What is the FNC?
The Federal National Council is one of five federal authorities established by the UAE constitution. It held its first session on December 2, 1972, a year to the day after Federation.
It has 40 members, eight of whom are women. The members represent the UAE population through each of the emirates. Abu Dhabi and Dubai have eight members each, Sharjah and Ras al Khaimah six, and Ajman, Fujairah and Umm Al Quwain have four.
They bring Emirati issues to the council for debate and put those concerns to ministers summoned for questioning.
The FNC’s main functions include passing, amending or rejecting federal draft laws, discussing international treaties and agreements, and offering recommendations on general subjects raised during sessions.
Federal draft laws must first pass through the FNC for recommendations when members can amend the laws to suit the needs of citizens. The draft laws are then forwarded to the Cabinet for consideration and approval.
Since 2006, half of the members have been elected by UAE citizens to serve four-year terms and the other half are appointed by the Ruler’s Courts of the seven emirates.
In the 2015 elections, 78 of the 252 candidates were women. Women also represented 48 per cent of all voters and 67 per cent of the voters were under the age of 40.
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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
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What is dialysis?
Dialysis is a way of cleaning your blood when your kidneys fail and can no longer do the job.
It gets rid of your body's wastes, extra salt and water, and helps to control your blood pressure. The main cause of kidney failure is diabetes and hypertension.
There are two kinds of dialysis — haemodialysis and peritoneal.
In haemodialysis, blood is pumped out of your body to an artificial kidney machine that filter your blood and returns it to your body by tubes.
In peritoneal dialysis, the inside lining of your own belly acts as a natural filter. Wastes are taken out by means of a cleansing fluid which is washed in and out of your belly in cycles.
It isn’t an option for everyone but if eligible, can be done at home by the patient or caregiver. This, as opposed to home haemodialysis, is covered by insurance in the UAE.
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