Chancellor Angela Merkel and Social Democrat chief Martin Schulz on Sunday vowed a new style of politics for Germany, as they opened talks on renewing their coalition to shake Europe's biggest economy out of political paralysis after September's inconclusive elections.
The week of meetings between Mrs Merkel's conservative alliance and the Social Democrats (SPD) will examine whether the two sides have enough common ground to begin formal coalition negotiations towards a new government by March or April.
Mrs Merkel voiced optimism about going forward with the SPD as she went into the talks at the centre-left party's headquarters, saying "I think that it can be done".
"We will work very swiftly and very intensively," the veteran leader said.
Speaking on behalf of Merkel's CDU, her Bavarian allies CSU as well as the SPD after the first day of talks, the centre-left SPD's Lars Klingbeil said: "The three party leaders made it clear in their opening statements that given the election results, we can't just go on as before."
"The global political situation, the situation in Europe, the composition of the German Bundestag, all that show that we find ourselves in a new era. And this new era needs new politics," he said, adding that "a new political style" was also required.
September's watershed elections left Mrs Merkel without a majority, while her junior coalition partner, the SPD, suffered its worst post-war score.
Meanwhile the far-right, anti-immigration Alternative for Germany (AfD) captured more than 90 parliamentary seats - the best showing for a far-right party since the end of World War II.
The AfD capitalised on growing misgivings over more than a million asylum seekers who have arrived in Germany since 2015.
Questions surrounding the new arrivals could yet prove to be sticking points as Merkel seeks a new deal with the SPD.
Anxious to stem the haemorrhage to the far right, the conservative wing of her party as well as her Bavarian CSU ally are championing a tougher stance on immigration - including demands that are unpalatable to the SPD.
With an eye on a regional election in Bavaria later this year, where current polls show that the CSU could lose its absolute majority, the party wants financial handouts to asylum seekers reduced.
Following several violent crimes involving refugees of uncertain age who claimed to be minors, the CSU party also wants medical tests to determine if adult migrants are posing as under-18s.
Nevertheless, CSU chief Horst Seehofer voiced his determination to find a deal with the Social Democrats.
"We must find an agreement," he said on Sunday as he entered into the exploratory talks.
Mr Schulz meanwhile signalled his party's determination to extract key concessions on social welfare reforms.
"We're not drawing any red lines, but we want as many red policies in Germany implemented as possible," he said, in a reference to the SPD party's colour.
The Social Democrats had initially vowed to go into opposition, but the collapse of coalition talks between Mrs Merkel's alliance and the smaller pro-business FDP and the left-leaning Greens parties pushed the SPD to reconsider.
Any deal would still have to be put to a vote of the SPD rank-and-file, and the leadership has been at pains to stress that talking with Mrs Merkel's conservatives did not automatically mean a new grand coalition.
The talks are "open-ended", said one of the SPD's negotiators Michael Groschek, reiterating the party's stance that the discussions could also lead to tolerating a Merkel-minority government.
As the two sides square off at the negotiating table, the parties have agreed to decline media interviews, with publicity limited to joint statements.
The decision is aimed at preventing a rerun of Mrs Merkel's previous failed attempt at forging a coalition late last year, when interviews given by negotiators soured the atmosphere.
Latest opinion polls suggest however that a potential new grand coalition enjoys little favour with Germans.
A survey published by Focus magazine found that 34 per cent of Germans would prefer fresh elections, while only 30 per cent favour a return of the conservative-SPD alliance.
Another poll published by public broadcaster ARD found that only 45 per cent of Germans view a new grand coalition positively, while 52 per cent consider it a bad option.
A MINECRAFT MOVIE
Director: Jared Hess
Starring: Jack Black, Jennifer Coolidge, Jason Momoa
Rating: 3/5
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
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 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
9.30pm: Forever Young
Election pledges on migration
CDU: "Now is the time to control the German borders and enforce strict border rejections"
SPD: "Border closures and blanket rejections at internal borders contradict the spirit of a common area of freedom"
Temple numbers
Expected completion: 2022
Height: 24 meters
Ground floor banquet hall: 370 square metres to accommodate about 750 people
Ground floor multipurpose hall: 92 square metres for up to 200 people
First floor main Prayer Hall: 465 square metres to hold 1,500 people at a time
First floor terrace areas: 2,30 square metres
Temple will be spread over 6,900 square metres
Structure includes two basements, ground and first floor
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
Explainer: Tanween Design Programme
Non-profit arts studio Tashkeel launched this annual initiative with the intention of supporting budding designers in the UAE. This year, three talents were chosen from hundreds of applicants to be a part of the sixth creative development programme. These are architect Abdulla Al Mulla, interior designer Lana El Samman and graphic designer Yara Habib.
The trio have been guided by experts from the industry over the course of nine months, as they developed their own products that merge their unique styles with traditional elements of Emirati design. This includes laboratory sessions, experimental and collaborative practice, investigation of new business models and evaluation.
It is led by British contemporary design project specialist Helen Voce and mentor Kevin Badni, and offers participants access to experts from across the world, including the likes of UK designer Gareth Neal and multidisciplinary designer and entrepreneur, Sheikh Salem Al Qassimi.
The final pieces are being revealed in a worldwide limited-edition release on the first day of Downtown Designs at Dubai Design Week 2019. Tashkeel will be at stand E31 at the exhibition.
Lisa Ball-Lechgar, deputy director of Tashkeel, said: “The diversity and calibre of the applicants this year … is reflective of the dynamic change that the UAE art and design industry is witnessing, with young creators resolute in making their bold design ideas a reality.”
The specs
Engine: Four electric motors, one at each wheel
Power: 579hp
Torque: 859Nm
Transmission: Single-speed automatic
Price: From Dh825,900
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The Beach Bum
Director: Harmony Korine
Stars: Matthew McConaughey, Isla Fisher, Snoop Dogg
Two stars
The specs
Engine: 2-litre or 3-litre 4Motion all-wheel-drive Power: 250Nm (2-litre); 340 (3-litre) Torque: 450Nm Transmission: 8-speed automatic Starting price: From Dh212,000 On sale: Now
The five pillars of Islam
Our legal columnist
Name: Yousef Al Bahar
Advocate at Al Bahar & Associate Advocates and Legal Consultants, established in 1994
Education: Mr Al Bahar was born in 1979 and graduated in 2008 from the Judicial Institute. He took after his father, who was one of the first Emirati lawyers
