Angela Merkel's government on Tuesday removed domestic intelligence chief Hans-Georg Maassen from office, transferring him to a different post to end an explosive row over immigration and the far right that once more rocked the German chancellor's fragile coalition.
"Mr Maassen will become State Secretary in the interior ministry," Merkel and the leaders of her coalition parties announced through a statement after crisis talks.
The face-saving compromise lets Ms Merkel's fourth-term government live another day, after her Social Democratic coalition partners had insisted on Mr Maassen's departure, against the wishes of Interior Minister Horst Seehofer from her Bavarian CSU sister party.
Mr Maassen, 55, became the centre of a heated controversy after he raised doubts about the veracity of reports of far-right hooligans and neo-Nazis randomly attacking immigrants in the eastern city of Chemnitz in late August.
It was not immediately clear who will replace Maassen as head of the Federal Office for Protection of the Constitution (BfV).
In his senior new role, essentially a promotion, Maassen will not be responsible for overseeing the BfV though, the party leaders assured.
The far-right attacks in Chemnitz, which caused revulsion in Germany, were triggered by the fatal stabbing of a German man over which police are holding a Syrian suspect and searching for an Iraqi man. A court freed another initial Iraqi suspect on Tuesday.
Days after the unrest, Mr Maassen questioned the authenticity of amateur video footage showing street violence and voiced doubt that racists had "hunted down" foreigners – comments that contradicted Ms Merkel, who had deplored the xenophobic attacks and "hatred in the streets".
SPD leaders – as well as the opposition Greens, Free Democrats and Linke parties – had demanded the resignation or sacking of the spy chief for political meddling, and pointed to his repeated meetings with leaders of the anti-immigration Alternative for Germany (AfD) party.
Leading opposition figures were scathing about the government's response to the Maassen dilemma.
"That he has in practice been promoted and that the SPD supports this, is a farce," fumed Dietmar Bartsch, the parliamentary head of the far-left Die Linke.
Greens co-leader Katrin Goering-Eckardt tweeted that anyone who rewarded, instead of punishing, Maassen for "cosying up to the AfD" had "lost all sense of decency".
Whatever Mr Maassen's true political leanings, the issue has turned him into a martyr for Merkel haters and the far right.
"Merkel has moved another critic out of the way," the AfD's Alice Weidel said.
Mr Maassen rejected accusations that he had supported AfD lawmakers with early access to unpublished data and advice on how to avoid surveillance by BfV.
Social Democrat leader Andrea Nahles had charged that Maassen had "provided material for right-wing conspiracy theorists".
However, Mr Maassen had the backing of his immediate boss, the CSU's hardline minister Seehofer, who has been Ms Merkel's nemesis for three years within the ruling grand coalition.
Mr Seehofer, a harsh critic of Ms Merkel's 2015 decision to allow a mass influx of migrants and refugees, had in July brought the government to the brink of collapse with his threat to shutter national borders to asylum seekers.
With that bitter dispute barely papered over, the conflict over Mr Maassen's fate once more highlighted the deep chasms within Merkel's coalition.
On one level, both major parties, the CDU and SPD, are distrustful partners stuck in a political marriage of convenience after the AfD, a one-time fringe party, poached millions of their voters in last year's elections.
But the rift is deepest between Ms Merkel and Mr Seehofer, whose own political future hangs in the balance as his CSU braces for potentially massive losses to the AfD in Bavarian state elections next month.
Mr Seehofer recently labelled the migration issue "the mother of all problems" in the country's politics – a comment read by many as a veiled reference to Ms Merkel's nickname "Mutti", or Mummy.
The conservative Die Welt newspaper described Maassen's transfer – which comes with a bigger paycheck – as "a Solomonic solution" that allows Merkel and Seehofer to turn the page on yet another row.
"The coalition can continue. Maybe one day it will even govern," wrote commentator Torsten Krauel.
The National's picks
4.35pm: Tilal Al Khalediah
5.10pm: Continous
5.45pm: Raging Torrent
6.20pm: West Acre
7pm: Flood Zone
7.40pm: Straight No Chaser
8.15pm: Romantic Warrior
8.50pm: Calandogan
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NO OTHER LAND
Director: Basel Adra, Yuval Abraham, Rachel Szor, Hamdan Ballal
Stars: Basel Adra, Yuval Abraham
Rating: 3.5/5
UAE currency: the story behind the money in your pockets
RESULTS
5pm Wathba Stallions Cup Maiden (PA) Dh70,000 (Dirt) 1,400m
Winner Munfared, Fernando Jara (jockey), Ahmed Al Mehairbi (trainer)
5.30pm Handicap (PA) Dh70,000 (D) 1,600m
Winner Sawt Assalam, Szczepan Mazur, Ibrahim Al Hadhrami
6pm Maiden (PA) Dh70,000 (D) 1,800m
Winner Dergham Athbah, Pat Dobbs, Mohamed Daggash
6.30pm Handicap (PA) Dh70,000 (D) 1,800m
Winner Rajee, Fernando Jara, Majed Al Jahouri
7pm Conditions (PA) Dh80,000 (D) 1,800m
Winner Kerless Del Roc, Fernando Jara, Ahmed Al Mehairbi
7.30pm Handicap (TB) Dh70,000 (D) 2,000m
Winner Pharoah King, Pat Dobbs, Doug Watson
8pm Conditions (PA) Dh85,000 (D) 2,000m
Winner Sauternes Al Maury, Dane O’Neill, Doug Watson
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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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
Specs
Engine: Dual-motor all-wheel-drive electric
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2025 Fifa Club World Cup groups
Group A: Palmeiras, Porto, Al Ahly, Inter Miami.
Group B: Paris Saint-Germain, Atletico Madrid, Botafogo, Seattle.
Group C: Bayern Munich, Auckland City, Boca Juniors, Benfica.
Group D: Flamengo, ES Tunis, Chelsea, (Leon banned).
Group E: River Plate, Urawa, Monterrey, Inter Milan.
Group F: Fluminense, Borussia Dortmund, Ulsan, Mamelodi Sundowns.
Group G: Manchester City, Wydad, Al Ain, Juventus.
Group H: Real Madrid, Al Hilal, Pachuca, Salzburg.
The specs
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The White Lotus: Season three
Creator: Mike White
Starring: Walton Goggins, Jason Isaacs, Natasha Rothwell
Rating: 4.5/5
Milestones on the road to union
1970
October 26: Bahrain withdraws from a proposal to create a federation of nine with the seven Trucial States and Qatar.
December: Ahmed Al Suwaidi visits New York to discuss potential UN membership.
1971
March 1: Alex Douglas Hume, Conservative foreign secretary confirms that Britain will leave the Gulf and “strongly supports” the creation of a Union of Arab Emirates.
July 12: Historic meeting at which Sheikh Zayed and Sheikh Rashid make a binding agreement to create what will become the UAE.
July 18: It is announced that the UAE will be formed from six emirates, with a proposed constitution signed. RAK is not yet part of the agreement.
August 6: The fifth anniversary of Sheikh Zayed becoming Ruler of Abu Dhabi, with official celebrations deferred until later in the year.
August 15: Bahrain becomes independent.
September 3: Qatar becomes independent.
November 23-25: Meeting with Sheikh Zayed and Sheikh Rashid and senior British officials to fix December 2 as date of creation of the UAE.
November 29: At 5.30pm Iranian forces seize the Greater and Lesser Tunbs by force.
November 30: Despite a power sharing agreement, Tehran takes full control of Abu Musa.
November 31: UK officials visit all six participating Emirates to formally end the Trucial States treaties
December 2: 11am, Dubai. New Supreme Council formally elects Sheikh Zayed as President. Treaty of Friendship signed with the UK. 11.30am. Flag raising ceremony at Union House and Al Manhal Palace in Abu Dhabi witnessed by Sheikh Khalifa, then Crown Prince of Abu Dhabi.
December 6: Arab League formally admits the UAE. The first British Ambassador presents his credentials to Sheikh Zayed.
December 9: UAE joins the United Nations.
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Living in...
This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.
BlacKkKlansman
Director: Spike Lee
Starring: John David Washington; Adam Driver
Five stars
Moral education needed in a 'rapidly changing world'
Moral education lessons for young people is needed in a rapidly changing world, the head of the programme said.
Alanood Al Kaabi, head of programmes at the Education Affairs Office of the Crown Price Court - Abu Dhabi, said: "The Crown Price Court is fully behind this initiative and have already seen the curriculum succeed in empowering young people and providing them with the necessary tools to succeed in building the future of the nation at all levels.
"Moral education touches on every aspect and subject that children engage in.
"It is not just limited to science or maths but it is involved in all subjects and it is helping children to adapt to integral moral practises.
"The moral education programme has been designed to develop children holistically in a world being rapidly transformed by technology and globalisation."
MATCH INFO
Qalandars 112-4 (10 ovs)
Banton 53 no
Northern Warriors 46 all out (9 ovs)
Kumara 3-10, Garton 3-10, Jordan 2-2, Prasanna 2-7
Qalandars win by six wickets
