‘Iraqi Resistance’ Ready for ‘Wider War’ in Lebanon

Iran's acting foreign minister Ali Bagheri Kani and Iraqi Foreign Minister Fuad Hussein arrive for a joint news conference in Baghdad, Iraq June 13, 2024. REUTERS/Thaier Al-Sudani
Iran's acting foreign minister Ali Bagheri Kani and Iraqi Foreign Minister Fuad Hussein arrive for a joint news conference in Baghdad, Iraq June 13, 2024. REUTERS/Thaier Al-Sudani
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‘Iraqi Resistance’ Ready for ‘Wider War’ in Lebanon

Iran's acting foreign minister Ali Bagheri Kani and Iraqi Foreign Minister Fuad Hussein arrive for a joint news conference in Baghdad, Iraq June 13, 2024. REUTERS/Thaier Al-Sudani
Iran's acting foreign minister Ali Bagheri Kani and Iraqi Foreign Minister Fuad Hussein arrive for a joint news conference in Baghdad, Iraq June 13, 2024. REUTERS/Thaier Al-Sudani

When Iraqi Foreign Minister Fuad Hussein warned of the outbreak of war in Lebanon, his disturbing words were expected to receive a stormy response from Iraqi factions loyal to Iran about preparations to support Lebanon’s Hezbollah. But this did not happen.

On June 13, Hussein was speaking in a joint press conference with his acting Iranian counterpart, Ali Bagheri Kani, and without prior context, he fired a “warning shot” about South Lebanon, while Baghdad is committed to the truce under a government that is increasingly admired by the Americans.

“If a war breaks out there, the entire region will be affected, not just Lebanon,” Hussein said.

For many, the words of the Iraqi chief diplomat were a “message” based on information provided by the Iranian visitor, Bagheri Kani, who, two weeks before his arrival in Baghdad, was holding “normal” meetings in Beirut and Damascus about the “close and lasting partnership.”

Two figures in the Coordination Framework told Asharq Al-Awsat that when Kani arrived in Baghdad, he spoke with Iraqi officials about “a possible war that Israel is planning in South Lebanon.”

In an attempt to understand the position of the military factions, Asharq Al-Awsat spoke to an Iraqi faction leader, who said: “We were asked about our position if the Lebanon front were to witness further escalation. We replied: We are ready, (...) we will go there.”

A diplomat confirmed that Bagheri had not made the request “in this manner,” while an Iraqi expert interpreted Hussein’s words as an attempt to achieve “political balance between the government and the resistance,” ruling out the chances of a “wider war”.

Who is seeking to expand the war, Iran or Israel?

For months, the regions of South Lebanon and northern Israel have been witnessing the most violent exchange of attacks since the 2006 war, within the framework of unconventional rules of engagement that make it a war in doses, with high costs, especially on the side of Hezbollah in the South.

Lebanese sources told Asharq Al-Awsat that the toll of the past months is equivalent to the damage of a comprehensive war.

Amos Hochstein, advisor to US President Joe Biden, who arrived in Israel on Monday, and from there to Beirut, conveyed a message to dissuade Netanyahu from any possible escalation that might push Iran to intervene directly in Lebanon, through its arms in Iraq.

Aqeel Abbas, a political science professor in Washington, believes that Netanyahu “wants this war more than Hezbollah and Iran,” because the latter wants to maintain the pattern of frequent strikes from South Lebanon to ease pressure on Hamas in Gaza.

Hezbollah itself also wants to maintain the “dynamic of deterrence” at its current level, as any open military operation by the Israelis will annihilate the Lebanese infrastructure, according to Abbas.

Iran waves the Hezbollah card

Before Bagheri Kani’s visit to Baghdad, Iran was transmitting messages to the Iraqis suggesting that it was facing three intractable problems: The vacuum left by the death of Iranian President Ibrahim Raisi and Foreign Minister Hossein Amir-Abdullahian, the enormous pressure from the Americans and the West regarding the nuclear program, and Tehran’s position in the Gaza ceasefire deal, which will ultimately force it to abandon one of its axes in the region.

In this context, Iran is seeking to put the South Lebanon card on the table to improve its conditions in the negotiations. It is not clear how this hypothesis fits with the case of Hezbollah, as many observers say that the group is exhausted and limited in its movement. However, the Iraqi politician responded by saying: “No one has yet confirmed the fact that Hezbollah is exhausted, while it can at any time cause a harmful blow to the Israelis.”

To a large extent, Aqeel Abbas agrees with this suggestion, pointing to an Israeli and American concern over “Hezbollah’s military and technological capabilities,” even after months of attrition.

“Hands on the trigger, Lebanon”

When the Iraqi minister issued his warning on Lebanon, Baghdad was at a safe distance from the flames of the Gaza war in the region. The government was able to maintain the truce with the US forces for months, while Prime Minister Mohammad Shiaa al-Sudani tried to balance between Iran’s requirements and the ambitions of the factions.

Since the death of Raisi, the leaders of the Shiite parties and factions have not heard many important messages from the Iranians.

A Shiite faction leader in Baghdad, who spoke to Asharq Al-Awsat on condition of anonymity, said that unannounced visits by Iranian military figures to Iraq have decreased since Raisi’s death.

He noted that before Bagheri Kani’s visits to Baghdad and Erbil, the Iranians addressed direct questions to the Hezbollah Brigades and the Nujaba Movement about their willingness to participate in the South Lebanon confrontations with Israel.

The faction leader told Asharq Al-Awsat: “We told them, yes, of course. Hands on the trigger...”

Hezbollah does not want the Iraqis’ involvement

“Indeed, we are preparing for any emergency in Lebanon (...) we know what the crown jewel of the resistance in the region (Hezbollah) is facing,” said a field commander of an influential Shiite faction, which is active in Nineveh Governorate (northern Iraq). He also claimed that he informed the IRGC about his readiness to fight alongside the resistance in Lebanon.

It seems that Tehran wants the “concerned parties” to express this position publicly, while Hezbollah is under enormous pressure by the Israelis who are planning for a wider war with the aim of disintegrating the “resistance in South Lebanon.”

However, the participation of the Iraqi factions in a war alongside Hezbollah is not guaranteed. Even though the Iraqis are offering “human equipment,” the Lebanese faction has not informed any of the “resistance comrades” that they would be allowed to deploy in the field, on Lebanese territory.

The leaders of the two Shiite factions in Baghdad and Nineveh agree that “(Hezbollah) will not welcome the Iraqis, because it views them as unqualified, lack a cohesive entity, and are at best bad allies, with countless problems in decision-making.”

What increases the conviction that the Iraqi factions will not engage in the South Lebanon War is the rare understanding between the Iranians and the government in Baghdad to protect the existing formula of stability.

A senior official in the government of Adel Abdul Mahdi said: “Iraq is the crown jewel of the Iranians, more than Hezbollah, and they will not risk it in the South Lebanon war.” He added that Hussein’s words were a form of “pressure to prevent war, not the contrary.”

Abbas believes that Tehran does not want to facilitate [Donald] Trump’s victory by striking the Americans under the mandate of his rival, Biden.

In the context, the former Iraqi official stated that Iran wants to keep the war away from Iraq’s borders, because “they are now keener on calm in Iraq.”

The Syrian model in Lebanon

The former Iraqi official said “a comprehensive war is only present in the imagination of the Lebanese.”

However, if such a war erupted, “Hezbollah would not likely need the Iraqi brigades.”

But if war breaks out, “Iran will not leave Hezbollah alone. This will not happen (...). It will definitely do something,” said the official.

A pessimistic scenario indicates that the “broader” war will break out in South Lebanon, pushing Iran to resort to the Syrian model.

The Iraqi official said: “This would mean dividing the map of Lebanon according to certain calculations, between factions from Iraq, Yemen, and Afghanistan...”

However, there is no decisive information regarding a broader war in the South and the engagement of pro-Iranian Iraqi factions. Iran is trying to use all the cards with caution to make amendments in its favor in the “day after” the Gaza deal, and fears that the “arenas” it manages will spiral into a war in which it will lose the ability to maneuver.



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.