Netanyahu Weighs Risks of Rafah Assault as Hostage Dilemma Divides Israelis

 Families of Israeli soldiers who were killed in the ongoing conflict in Gaza between Israel and the Palestinian militant group Hamas, demonstrate outside the US embassy branch in Tel Aviv calling for the war to continue and for the Israeli army to keep on fighting inside Rafah in the south of the besieged Palestinian territory on May 7, 2024. (AFP)
Families of Israeli soldiers who were killed in the ongoing conflict in Gaza between Israel and the Palestinian militant group Hamas, demonstrate outside the US embassy branch in Tel Aviv calling for the war to continue and for the Israeli army to keep on fighting inside Rafah in the south of the besieged Palestinian territory on May 7, 2024. (AFP)
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Netanyahu Weighs Risks of Rafah Assault as Hostage Dilemma Divides Israelis

 Families of Israeli soldiers who were killed in the ongoing conflict in Gaza between Israel and the Palestinian militant group Hamas, demonstrate outside the US embassy branch in Tel Aviv calling for the war to continue and for the Israeli army to keep on fighting inside Rafah in the south of the besieged Palestinian territory on May 7, 2024. (AFP)
Families of Israeli soldiers who were killed in the ongoing conflict in Gaza between Israel and the Palestinian militant group Hamas, demonstrate outside the US embassy branch in Tel Aviv calling for the war to continue and for the Israeli army to keep on fighting inside Rafah in the south of the besieged Palestinian territory on May 7, 2024. (AFP)

Prime Minister Benjamin Netanyahu faces competing pressures at home and abroad when he weighs how far to push the operation to defeat Hamas in Rafah that complicates hopes of bringing Israeli hostages home.

Street demonstrations against the government by families and supporters of some of the more than 130 hostages still held in Gaza have become a constant fixture, with protestors demanding a ceasefire deal with Hamas to get them back.

Others are demanding the government and the Israeli Defense Forces press ahead with the Rafah operation against the remaining Hamas formations holding out around the city which began this week with air strikes and battles on the outskirts.

"We applaud the Israeli government and the IDF for going into Rafah," said Mirit Hoffman, a spokesperson for Mothers of IDF Soldiers, a group representing families of serving military personnel, which wants an uncompromising line to pressure Hamas into surrender.

"We think that this is how negotiations are done in the Middle East."

The opposing pressures mirror divisions in Netanyahu's cabinet between centrist ministers concerned at alienating Washington, Israel's most vital ally and supplier of arms, and religious nationalist hardliners determined to clear Hamas out of the Gaza Strip.

Hamas handed Netanyahu a dilemma this week when it declared it had accepted a ceasefire proposal brokered by Egypt for a halt to fighting in return for an exchange of hostages for Palestinian prisoners.

Israeli officials rejected the offer, accusing Hamas of altering the terms of the deal. But it did not break off negotiations and shuttle diplomacy continues, with CIA chief Bill Burns in Israel on Wednesday to meet Netanyahu.

Internationally, protests have spread against Israel's campaign in Gaza, which has so far killed more than 34,000 Palestinians, according to local health authorities, and spread malnutrition and disease in the enclave.

Seven months into the war, surveys show opinion in Israel has become increasingly divided since Netanyahu first vowed to crush Hamas in retaliation for the Oct. 7 attack that killed some 1,200 people, according to Israeli tallies, took more than 250 hostage, and triggered the campaign in Gaza.

"I understand that it's necessary to defeat Hamas but I think that can wait, and the hostages cannot wait," said Elisheva Leibler, 52, from Jerusalem. "Every second they're there poses immediate danger to their lives."

For the moment, Netanyahu has kept the cabinet together, rejecting the latest Hamas proposal for a ceasefire but keeping the negotiations alive by dispatching mid-ranking officials to Cairo, where Egyptian mediators are overseeing the process.

But the risks he faces by holding out against a deal, as his hard-right partners wish, were highlighted on Tuesday when Washington paused a shipment of weapons to signal its opposition to the long-promised Rafah assault.

DIVIDED OPINION

Despite his image as a security hawk, Netanyahu, Israel's longest serving prime minister, has struggled with a widespread perception that he was to blame for the security failures that allowed Hamas to overwhelm Israel's defenses around Gaza.

That has fed a mood of distrust among many Israelis who otherwise support strong action against Hamas.

A survey published on Wednesday for Channel 13 suggested that 56% of Israelis thought Netanyahu's chief consideration was his own political survival against only 30% who thought it was freeing the hostages.

A survey by the Israel Democracy Institute found just over half the population believed a deal to rescue the hostages should be the top government priority, over the aim of destroying the remaining Hamas formations.

But a separate poll by the Jewish People's Policy Institute (JPPI) found 61% thought the military must operate in Rafah no matter what. The Channel 13 poll found 41% in favor of accepting the deal and 44% opposed.

"I don't trust Hamas at all," said 81-year-old David Taub, from Jerusalem. "The only solution is to conquer Rafah, and then maybe, we hope, we pray, the hostages will come back to us."

For the moment, Netanyahu depends on the two hardliners from the nationalist religious bloc, Finance Minister Bezalel Smotrich and Security Minister Itamar Ben-Gvir, both of whom reject any suggestion of compromise.

Both have clashed repeatedly with Benny Gantz, the centrist former army general who joined the emergency wartime cabinet in the wake of Oct 7, and who is the leading contender to replace Netanyahu after new elections.

Gantz and his ally Gadi Eisenkot, another former army chief, are both sworn enemies of Hamas, but both have been alarmed at the deterioration in relations with the United States.

For the increasingly desperate hostage families, a mood of deepening exhaustion at the endless uncertainty has settled in, with hopes of a safe return overcoming any other consideration.

Niva Wenkert, mother of 22-year-old hostage Omer Wenkert, said she had no choice but to trust Israeli leaders but that not enough had been done.

"The hostages are still in Gaza, the military actions almost stopped and the feelings are very, very bad. I want Omer back."



Borderless Europe Fights Brain Drain as Talent Heads North

Eszter Czovek, 45, packs up her house as she moves to Austria, in Budapest, Hungary, October 28, 2024. REUTERS/Bernadett Szabo
Eszter Czovek, 45, packs up her house as she moves to Austria, in Budapest, Hungary, October 28, 2024. REUTERS/Bernadett Szabo
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Borderless Europe Fights Brain Drain as Talent Heads North

Eszter Czovek, 45, packs up her house as she moves to Austria, in Budapest, Hungary, October 28, 2024. REUTERS/Bernadett Szabo
Eszter Czovek, 45, packs up her house as she moves to Austria, in Budapest, Hungary, October 28, 2024. REUTERS/Bernadett Szabo

Until recently aerospace engineer Pedro Monteiro figured he'd join many of his peers moving from Portugal to its richer European neighbors in the quest for a better-paid job once he completes his master's degree in Lisbon.
But tax breaks proposed by Portugal's government for young workers - up to a temporary 100% income tax exemption in some cases - plus help with housing are making him think twice.
"Previous governments left young people behind," said Monteiro, 23, who is studying engineering and industrial management at the Higher Technical Institute in the Portuguese capital. "The country needs us and we want to stay but we need to see signs from the government that they are implementing policies that will help."
Monteiro cites in particular the cost of buying or renting a home amid a housing crisis aggravated by the arrival of wealthy foreigners lured by easy residency rights and tax breaks, Reuters said.
He is doubtful the government's new measures will be enough.
"Some of my friends are now working abroad and earn substantially more money... and have better career development opportunities," he said. "I'm a little bit skeptical concerning my job opportunities here in Portugal."
Portugal is the latest country in Europe to seek to tackle a brain drain holding back its economy. Tax breaks for young workers in the budget currently going through parliament will take effect next year and could benefit as many as 400,000 young people at an annual cost of 525 million euros.
Talent flight to wealthier countries of the north is a problem Portugal shares with several others in southern and central Europe, as workers take advantage of freedom of movement rules within the trade bloc. Countries including Italy have tried other schemes to counter the flight, with mixed results.
By exacerbating regional labor shortages and depriving poorer countries of tax revenues, it is yet another hurdle for the EU as it tries to improve its ebbing economic growth while addressing population decline and lagging labor productivity.
Donald Trump's victory in US elections this month raises the stakes, with the risk of across-the-board trade tariffs on European exports of at least 10% - a move that economists say could turn Europe's anaemic growth into outright recession.
About 2.3 million people born in Portugal, or 23% of its population, currently live abroad, according to Portugal's Emigration Observatory. That includes 850,000 Portuguese nationals aged 15-39, or about 30% of young Portuguese and 12.6% of its working-age population.
More concerning still is that about 40% of 50,000 people who graduate from universities or technical colleges emigrate each year, according to a study by Business Roundtable Portugal and Deloitte based on official statistics, costing Portugal billions of euros in lost income tax revenue and social security contributions.
DEMOGRAPHIC HELL
"This is not a country for young people," said Pedro Ginjeira do Nascimento, executive director of Business Roundtable Portugal, which represents 43 of the largest companies in the nation of 10 million people. "Portugal is experiencing a true demographic hell because the country is unable to create conditions to retain and attract young talent."
Internal migration within the EU is partly driven by the disparity in wages between its member states. Some economic migrants also say they are looking for better benefits such as pensions and healthcare and less rigid, hierarchichal structures that give more responsibility to those in junior roles.
Concerns are mounting over the long-term viability of Europe's economic model with its rapidly ageing population and failure to win substantial shares of high-growth markets of the future, from tech to renewable energy.
Presenting a raft of reform proposals aimed at boosting local innovation and investment, former European Central Bank chief Mario Draghi said in September the region faced a "slow agony" of decline if it did not compete more effectively.
Eszter Czovek, 45, and her husband are moving from Hungary to Austria, where workers earn an average 40.9 euros ($29.95) per hour compared to 12.8 euros per hour in Hungary, the largest wage gap between neighboring countries in the EU.
The number of Hungarians living in Austria increased to 107,264 by the beginning of 2024 from just 14,151 when Hungary joined the EU.
Czovek's husband, who works in construction, was offered a job in Austria, while she has worked in media and accounting at various multinationals. She cited better pay, pensions, work conditions and healthcare as motives for moving. She also mentioned her concern over the political situation in Hungary, which she fears might join Britain in leaving the EU.
"There was a change of regime here in 1989 and 30 years later we are still waiting for the miracle that will see us catch up with Austria," Czovek said of the revolution over three decades ago that ended communist rule in Hungary.
Since Brexit, the Netherlands has replaced Britain as a preferred destination for Portuguese talent while Germany and Scandinavian countries are also popular.
Many Europeans still head to the United States in search of better jobs - about 4.7 million were living there in 2022, according to the Washington-based Migration Policy Institute, which nonetheless notes a long-term decline since the 1960s.
In 2023, 4,892 Portuguese emigrated to the Netherlands, surpassing Britain for the first time, which in 2019 received 24,500 Portuguese.
At home, they face the eighth-highest tax burden in the Organization for Economic Co-operation and Development (OECD) even as house prices rose 186% and rents by 94% since 2015, according to property specialists Confidencial Imobiliario.
A single person in Portugal without children earned an average of 16,943 euros after tax in 2023 compared to 45,429 euros in the Netherlands, according to Eurostat.
Portugal will offer under 35s earning up to 28,000 euros a year a 100% tax exemption during their first year of work, gradually reducing the benefit to a 25% deduction between the eighth and tenth years.
Young people would also be exempted from transaction taxes and stamp duty when buying their first home as well as access to loans guaranteed by the state and rent subsidies.
"We are designing a solid package that tries to solve the main reasons why the young leave," Cabinet Minister Antonio Leitao Amaro said in an interview with Reuters.
'THINGS WON'T CHANGE'
Leitao Amaro said he did not know for sure if the tax breaks would work but that his government, which came into office in April, had to try something new.
"If we don't act ambitiously, things won't change and Portugal will continue down this path," he said.
The Italian government has already found that tax breaks used as incentives are costly and open to fraud.
In January, Italy abruptly curtailed its own scheme that was costing 1.3 billion euros in lost tax revenue, even as it lured tech workers such as Alessandra Mariani back home.
Before 2024, returners were offered a 70% tax break for five years, extendable for another five years in certain circumstances. Now, it plans to offer a slimmed-down scheme targeting specific skills after it attracted only 1,200 teachers or researchers - areas where Italy has a particular shortage.
Mariani said the incentives were key to persuading her to return to Milan in 2021 by allowing her to maintain the same standard of living she enjoyed in London.
"Had the opportunity been the same without the scheme, I would not have done it at all," said Mariani, now working at the Italian arm of the same large tech company.
With her tax breaks poised to be phased out by 2026 unless she buys a house or has a child, Mariani faces a drop in salary and she said she's once again eyeing the exit door.