Death of Iran’s Raisi Could Stir Race for Khamenei Succession, Insiders Say 

Iranian Supreme Leader Ali Khamenei receives President Ebrahim Raisi and members of the government in August. (dpa)
Iranian Supreme Leader Ali Khamenei receives President Ebrahim Raisi and members of the government in August. (dpa)
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Death of Iran’s Raisi Could Stir Race for Khamenei Succession, Insiders Say 

Iranian Supreme Leader Ali Khamenei receives President Ebrahim Raisi and members of the government in August. (dpa)
Iranian Supreme Leader Ali Khamenei receives President Ebrahim Raisi and members of the government in August. (dpa)

Iranian President Ebrahim Raisi's death in a helicopter crash upsets the plans of hardliners who wanted him to succeed Supreme Leader Ali Khamenei and will stir rivalries in their camp over who will take over the country when he dies.

A protege of Khamenei who rose through the ranks of Iran's theocracy, Raisi, 63, was widely seen as a leading candidate to take over from the 85-year-old Supreme Leader - though it was far from being a foregone conclusion in Iran's opaque politics.

His rise to the presidency was part of a consolidation of power in the hands of hardliners dedicated to shoring up the pillars of the Islamic Republic against the risks posed by dissent at home and powerful enemies in a turbulent region.

Raisi had enjoyed staunch backing from Khamenei, who had himself held the position of president before he became Supreme Leader in 1989 following the death of the Islamic Republic's founder, Khomeini.

The Supreme Leader holds ultimate power in Iran, acting as commander-in-chief of the armed forces and deciding on the direction of foreign policy, defined largely by confrontation with the United States and Israel.

While Khamenei has not endorsed a successor, Iran watchers say Raisi was one of the two names most often mentioned, the second being Khamenei's second son, Mojtaba, who is widely believed to wield influence behind the scenes.

Raisi, backed by a group that wanted to see him become Supreme Leader, clearly wanted the role, said Vali Nasr, professor of Middle East Studies and International Affairs at John Hopkins School of Advanced International Studies.

"Now they don't have a candidate, and that opens the door for other factions or other figures to emerge as serious contenders," he said.

For Raisi, a mid-ranking Shiite cleric, the presidency had been a vehicle to reach the supreme leadership. "There's no other candidate right now (with) that kind of a platform and that's why the presidential elections in Iran, however they unfold, will be the first decider about what comes next," Nasr said.

'BLOW TO THE ESTABLISHMENT'

Raisi's views echoed Khamenei's on every major topic and he enacted the leader's policies aimed at entrenching clerical power, cracking down on opponents, and adopting a tough line on foreign policy issues such as the nuclear talks with Washington, two Iranian insiders said.

The hardliners maintained their grip in a parliamentary election held in March, but turnout sunk to the lowest level since the revolution.

Critics saw this as reflecting a crisis of legitimacy for the clerical elite, amid mounting economic struggles and dissent among Iranians chafing at the social and political restrictions which drove months of protests ignited by the death of a young woman arrested by the morality police in 2022.

Though his name has often been cited, doubts have swirled over the possible candidacy of Mojtaba, a mid-ranking cleric who teaches theology at a religious seminary in the city of Qom.

Khamenei has indicated opposition to his son's candidacy because he does not want to see any slide back towards a system of hereditary rule in a country where the US-backed monarchy was overthrown in 1979, an Iranian source close to Khamenei's office said.

A regional source familiar with the thinking in Tehran said Khamenei's opposition to hereditary rule would eliminate both Mojtaba and Ali Khomeini, a grandson of the Islamic Republic's founder who is based in Najaf, Iraq.

A former Iranian official said powerful actors including the Revolutionary Guards and influential clerics in Qom are now expected to step up efforts to shape the process by which the next supreme leader is picked.

"Raisi's death is a blow to the establishment that has no other candidate now," the official said, adding that while it was believed Raisi had been groomed to succeed Khamenei, nobody knew for sure what Khamenei's intentions were.

UNCERTAINTY IN THE SUCCESSION

Khamenei had not been a clear favorite for the role in 1989 and only emerged after backroom dealings among the clerical elite.

Under Iran's constitution, the Supreme Leader is appointed by the Assembly of Experts, an 88-member clerical body that supervises and in theory can sack the Supreme Leader.

While the Assembly is chosen in an election, another hardline watchdog body comprising clerics and jurists aligned to Khamenei has the power to veto laws and decide who may stand.

Two sources familiar with the matter said the Assembly of Experts had taken Raisi off a list of potential successors some six months ago because of his sagging popularity, reflecting economic hardship caused by US sanctions and mismanagement.

One of the sources said intensive lobbying had been underway by influential, pro-Raisi clerics to get his name reinstated.



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.