MARSEILLE, FRANCE // The last-ditch "Merkozy' campaign to save the euro began in earnest yesterday when the German chancellor, Angela Merkel, and the French president, Nicolas Sarkozy, agreed to press for a new European Union treaty to impose tough fiscal controls.
Despite their differences on remedies for the gravest crisis in the euro zone's 12-year history, the two leaders - determined to present a united front ahead of a two-day EU summit starting in Brussels on Thursday - approved a series of reforms at negotiations in Paris.
"We want to make sure the imbalances that led to the situation in the euro zone today cannot happen again," Mr Sarkozy said at a news conference.
"Therefore we want a new treaty, to make clear to the peoples of Europe, members of Europe and members of the euro zone that things cannot continue as they are."
The two leaders now agree that any state that allows its deficit to exceed 3 per cent of its gross domestic product (GDP) should face sanctions. Governments are supposed to follow this rule already, but many, including France, have flouted it.
If consensus cannot be achieved throughout the 27-nation EU, France and Germany will draw up the new treaty for the single currency zone's 17 members, with EU outsiders permitted to join.
The Elysée meeting came as Italian legislators considered a €30 billion (Dh148.5bn) programme of cuts and tax rises that the new prime minister, Mario Monti, admits may deepen recession. One Italian political leader, the welfare minister Elsa Fornero, broke down in tears at the news conference as she outlined measures that had, she said, taken a "psychological toll" on her.
Ireland was also preparing yesterday to embrace a new austerity package amid fears that the zone faces bleak times ahead if it is to remain intact.
Markets rose as hopes grew that Mr Sarkozy and Mrs Merkel would find enough common ground to forge an approach capable of winning over leaders of the EU. European stocks built on the gains of last week and bond yields fell, notably in Italy where they went beneath 6 per cent for the first time since October.
Today, the US treasury secretary, Timothy Geithner, is due in Germany for the start of a round of talks also taking him to France and Italy and reflecting US concerns that the crisis could spread beyond European borders. Further developments are likely at Thursday's monthly policy meeting of the European Central Bank.
France and Germany had been seeking broader cooperation among euro countries to prevent a repetition of the fiscal laxity that has brought Greece and Italy to their knees and threatened to destroy the single currency.
Mr Sarkozy and Mrs Merkel have not seen eye-to-eye on fundamental issues, with France anxious to retain greater national sovereignty while Germany, with the stronger economy, strongly favouring stringent centralised control.
Britain, while outside the euro zone, has serious reservations about changes needing an amended EU treaty and the time they could take to have an effect.
But Mrs Merkel, who had earlier called for "concrete steps towards a fiscal union, said after yesterday's meeting that both France and Germany wanted structural changes that "go beyond agreements".
"This package shows that we are absolutely determined to keep the euro as a stable currency and as an important contributor to European stability," she added. She seems to have given ground on sovereignty, conceding that the new central mechanism could not invalidate a country's budget.
Mr Sarkozy said the new treaty could be passed by next March - a month before the first round of the French presidential elections.
The process of securing treaty changes, which has proved a minefield in the past, could take more than a year and some analysts doubt whether eurozone nations can be trusted to push forward with a radically new fiscal regime.
And many economists fear the new rules alone would not be enough to halt the rise in Europe's borrowing costs. Mrs Merkel has argued for such amendments as necessary to put muscle into new rules while the French president, approaching 2012 elections trailing badly in opinion polls, fears electoral backlash if he surrenders too much power to the EU.
A growing number of French people say they would welcome a return to the franc and a break with the single currency is the official policy of Marine Le Pen's far-right, populist Front National.
All European leaders will be gauging public opinion, and this is where economists sense danger. "There is a real danger that anything agreed this week will be watered down as it goes through the process of approval at national levels and what we end up with is less of a fiscal union more of a strengthened stability pact," said Gary Jenkins, from Evolution Securities.
Mr Sarkozy again stressed that he endorsed German opposition to the introduction of Eurobonds, which he described as "in no case a solution to the crisis".
foreign.desk@thenational.ae
* Additional reporting by Reuters and Associated Press
The biog
Name: Abeer Al Bah
Born: 1972
Husband: Emirati lawyer Salem Bin Sahoo, since 1992
Children: Soud, born 1993, lawyer; Obaid, born 1994, deceased; four other boys and one girl, three months old
Education: BA in Elementary Education, worked for five years in a Dubai school
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.
At a glance
Global events: Much of the UK’s economic woes were blamed on “increased global uncertainty”, which can be interpreted as the economic impact of the Ukraine war and the uncertainty over Donald Trump’s tariffs.
Growth forecasts: Cut for 2025 from 2 per cent to 1 per cent. The OBR watchdog also estimated inflation will average 3.2 per cent this year
Welfare: Universal credit health element cut by 50 per cent and frozen for new claimants, building on cuts to the disability and incapacity bill set out earlier this month
Spending cuts: Overall day-to day-spending across government cut by £6.1bn in 2029-30
Tax evasion: Steps to crack down on tax evasion to raise “£6.5bn per year” for the public purse
Defence: New high-tech weaponry, upgrading HM Naval Base in Portsmouth
Housing: Housebuilding to reach its highest in 40 years, with planning reforms helping generate an extra £3.4bn for public finances
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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Sun jukebox
Rufus Thomas, Bear Cat (The Answer to Hound Dog) (1953)
This rip-off of Leiber/Stoller’s early rock stomper brought a lawsuit against Phillips and necessitated Presley’s premature sale to RCA.
Elvis Presley, Mystery Train (1955)
The B-side of Presley’s final single for Sun bops with a drummer-less groove.
Johnny Cash and the Tennessee Two, Folsom Prison Blues (1955)
Originally recorded for Sun, Cash’s signature tune was performed for inmates of the titular prison 13 years later.
Carl Perkins, Blue Suede Shoes (1956)
Within a month of Sun’s February release Elvis had his version out on RCA.
Roy Orbison, Ooby Dooby (1956)
An essential piece of irreverent juvenilia from Orbison.
Jerry Lee Lewis, Great Balls of Fire (1957)
Lee’s trademark anthem is one of the era’s best-remembered – and best-selling – songs.
Salah in numbers
€39 million: Liverpool agreed a fee, including add-ons, in the region of €39m (nearly Dh176m) to sign Salah from Roma last year. The exchange rate at the time meant that cost the Reds £34.3m - a bargain given his performances since.
13: The 25-year-old player was not a complete stranger to the Premier League when he arrived at Liverpool this summer. However, during his previous stint at Chelsea, he made just 13 Premier League appearances, seven of which were off the bench, and scored only twice.
57: It was in the 57th minute of his Liverpool bow when Salah opened his account for the Reds in the 3-3 draw with Watford back in August. The Egyptian prodded the ball over the line from close range after latching onto Roberto Firmino's attempted lob.
7: Salah's best scoring streak of the season occurred between an FA Cup tie against West Brom on January 27 and a Premier League win over Newcastle on March 3. He scored for seven games running in all competitions and struck twice against Tottenham.
3: This season Salah became the first player in Premier League history to win the player of the month award three times during a term. He was voted as the division's best player in November, February and March.
40: Salah joined Roger Hunt and Ian Rush as the only players in Liverpool's history to have scored 40 times in a single season when he headed home against Bournemouth at Anfield earlier this month.
30: The goal against Bournemouth ensured the Egyptian achieved another milestone in becoming the first African player to score 30 times across one Premier League campaign.
8: As well as his fine form in England, Salah has also scored eight times in the tournament phase of this season's Champions League. Only Real Madrid's Cristiano Ronaldo, with 15 to his credit, has found the net more often in the group stages and knockout rounds of Europe's premier club competition.
The White Lotus: Season three
Creator: Mike White
Starring: Walton Goggins, Jason Isaacs, Natasha Rothwell
Rating: 4.5/5
NO OTHER LAND
Director: Basel Adra, Yuval Abraham, Rachel Szor, Hamdan Ballal
Stars: Basel Adra, Yuval Abraham
Rating: 3.5/5
COMPANY PROFILE
Founders: Alhaan Ahmed, Alyina Ahmed and Maximo Tettamanzi
Total funding: Self funded
TECH%20SPECS%3A%20APPLE%20WATCH%20SERIES%209
%3Cp%3E%3Cstrong%3EDisplay%3A%3C%2Fstrong%3E%2041mm%20%E2%80%93%20352%20x%20430%3B%2045mm%20%E2%80%93%20396%20x%20484%3B%20always-on%20Retina%20LTPO%20OLED%2C%202000%20nits%20max%3B%20Ion-X%20glass%20(aluminium%20cases)%2C%20sapphire%20crystal%20(stainless%20steel%20cases)%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EProcessor%3A%3C%2Fstrong%3E%20Apple%20S9%2064-bit%2C%20W3%20wireless%2C%202nd-gen%20Ultra%20Wideband%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ECapacity%3A%3C%2Fstrong%3E%2064GB%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EMemory%3A%3C%2Fstrong%3E%201GB%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EPlatform%3A%3C%2Fstrong%3E%20watchOS%2010%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EHealth%20metrics%3A%3C%2Fstrong%3E%20Blood%20oxygen%20sensor%2C%20electrical%20heart%20sensor%20and%20ECG%2C%203rd-gen%20optical%20heart%20sensor%2C%20high%20and%20low%20heart%20rate%20notifications%2C%20irregular%20rhythm%20notifications%2C%20sleep%20stages%2C%20temperature%20sensing%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EEmergency%20services%3A%3C%2Fstrong%3E%20Emergency%20SOS%2C%20international%20emergency%20calling%2C%20crash%20detection%2C%20fall%20detection%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EConnectivity%3A%3C%2Fstrong%3E%20GPS%2FGPS%20%2B%20cellular%3B%20Wi-Fi%2C%20LTE%2C%20Bluetooth%205.3%2C%20NFC%20(Apple%20Pay)%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EDurability%3A%3C%2Fstrong%3E%20IP6X%2C%20water%20resistant%20up%20to%2050m%2C%20dust%20resistant%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EBattery%3A%3C%2Fstrong%3E%20308mAh%20Li-ion%2C%20up%20to%2018h%20regular%2F36h%20low%20power%3B%20wireless%20charging%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ECards%3A%3C%2Fstrong%3E%20eSIM%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EFinishes%3A%3C%2Fstrong%3E%20Aluminium%20%E2%80%93%20midnight%2C%20pink%2C%20Product%20Red%2C%20silver%2C%20starlight%3B%20stainless%20steel%20%E2%80%93%20gold%2C%20graphite%2C%20silver%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EIn%20the%20box%3A%3C%2Fstrong%3E%20Watch%20Series%209%2C%20woven%20magnetic-to-USB-C%20charging%20cable%2C%20band%2Floop%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EPrice%3A%3C%2Fstrong%3E%20Starts%20at%20Dh1%2C599%20(41mm)%20%2F%20Dh1%2C719%20(45mm)%3C%2Fp%3E%0A
The%C2%A0specs%20
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KILLING OF QASSEM SULEIMANI
The smuggler
Eldarir had arrived at JFK in January 2020 with three suitcases, containing goods he valued at $300, when he was directed to a search area.
Officers found 41 gold artefacts among the bags, including amulets from a funerary set which prepared the deceased for the afterlife.
Also found was a cartouche of a Ptolemaic king on a relief that was originally part of a royal building or temple.
The largest single group of items found in Eldarir’s cases were 400 shabtis, or figurines.
Khouli conviction
Khouli smuggled items into the US by making false declarations to customs about the country of origin and value of the items.
According to Immigration and Customs Enforcement, he provided “false provenances which stated that [two] Egyptian antiquities were part of a collection assembled by Khouli's father in Israel in the 1960s” when in fact “Khouli acquired the Egyptian antiquities from other dealers”.
He was sentenced to one year of probation, six months of home confinement and 200 hours of community service in 2012 after admitting buying and smuggling Egyptian antiquities, including coffins, funerary boats and limestone figures.
For sale
A number of other items said to come from the collection of Ezeldeen Taha Eldarir are currently or recently for sale.
Their provenance is described in near identical terms as the British Museum shabti: bought from Salahaddin Sirmali, "authenticated and appraised" by Hossen Rashed, then imported to the US in 1948.
- An Egyptian Mummy mask dating from 700BC-30BC, is on offer for £11,807 ($15,275) online by a seller in Mexico
- A coffin lid dating back to 664BC-332BC was offered for sale by a Colorado-based art dealer, with a starting price of $65,000
- A shabti that was on sale through a Chicago-based coin dealer, dating from 1567BC-1085BC, is up for $1,950
Specs
Engine: Dual-motor all-wheel-drive electric
Range: Up to 610km
Power: 905hp
Torque: 985Nm
Price: From Dh439,000
Available: Now
Specs
Engine: 51.5kW electric motor
Range: 400km
Power: 134bhp
Torque: 175Nm
Price: From Dh98,800
Available: Now
Fixtures (all times UAE)
Saturday
Brescia v Atalanta (6pm)
Genoa v Torino (9pm)
Fiorentina v Lecce (11.45pm)
Sunday
Juventus v Sassuolo (3.30pm)
Inter Milan v SPAL (6pm)
Lazio v Udinese (6pm)
Parma v AC Milan (6pm)
Napoli v Bologna (9pm)
Verona v AS Roma (11.45pm)
Monday
Cagliari v Sampdoria (11.45pm)
The specs
Engine: Four electric motors, one at each wheel
Power: 579hp
Torque: 859Nm
Transmission: Single-speed automatic
Price: From Dh825,900
On sale: Now
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
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.
