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.



Jamal Mustafa: Saddam and Other Iraqi Officials Headed to the Gallows with Heads Held High

Jamal Mustafa al-Sultan. (Asharq Al-Awsat)
Jamal Mustafa al-Sultan. (Asharq Al-Awsat)
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Jamal Mustafa: Saddam and Other Iraqi Officials Headed to the Gallows with Heads Held High

Jamal Mustafa al-Sultan. (Asharq Al-Awsat)
Jamal Mustafa al-Sultan. (Asharq Al-Awsat)

Saddam Hussein’s entourage never expected that they would one day find themselves in jail. It never occurred to them that the American military machine would use all of its might to oust Saddam’s regime and overthrow the ruling party and army. They never believed that forces allied to Iran would assume positions of power in the new regime.

Times changed and Saddam, who controlled the fate of the nation and its people, found himself in prison where he counted the days until his execution. The man was unyielding until his last breath and his will remained unbroken.

The men who made up the Revolutionary Command Council or government soon found themselves in prison. They were interrogated by the Americans and Iraqis and a death sentence was always going to be their fate.

In the second installment of his interview to Asharq Al-Awsat, Dr. Jamal Mustafa al-Sultan, late Iraqi President Saddam Hussein’s son-in-law and second secretary, recalled the execution of his colleagues and relatives. He also recalled how he married Hala, the youngest of Saddam’s daughters, and how the late president acted around his family, away from state affairs.

Other officials who were held along with Saddam included “Vice President Taha Yassin Ramadan, my uncle and member of the Revolutionary Command Council Ali Hussein al-Majid, my other uncle Abed Hassan al-Majid, head of the Revolutionary Command Council Awad al-Bandar, Saddam’s half-brother Barzan Ibrahim al-Hassan, Secretary Abed Hammoud and aide to the intelligence chief Farouk Hijazi,” said Mustafa.

He showed Asharq Al-Awsat a video that recently came to light of Khodair al-Khozaei, the former vice president during the American occupation. “In it, he said that he saw no justification for the death sentence against Abed Hammoud. Most dangerous of all, he confessed that he visited Iran and consulted with a judicial official, who encouraged him to sign the death sentence, which he did,” added Mustafa.

“The truth is that we sensed from the beginning that our trial was a means of revenge acting at Iran’s orders. One day, Abed Hammoud was informed that he was going to be moved to hospital and later that day the guards informed us that he was executed,” he continued.

“Mr. President (Saddam) expected to be executed. The truth is that his very existence, whether in jail or otherwise, was a source of concern for them. I can firmly attest that the members of the leadership bravely faced their death sentence. None of them showed any weakness or faltered,” he revealed.

He recalled the day they informed Barzan and Awad that they were going to be executed. “I was working out with al-Bandar when we received the news. I am not exaggerating when I say that he maintained his optimism even in that moment. They were executed the next day. Days later, I learned that Abed Hassan al-Majid, Farouk Hijazi and Hadi Hassan, an intelligence officer, were executed,” Mustafa said.

“Let me tell you what used to happen. One day, they came up with false charges that before the US occupation, I gave Mr. Khamis al-Khanjar (a Sunni politician) a sum of 250,000 dollars. Of course, the charge is baseless. They told me that I would remain in jail for life if I did not confess to the charge. I refused and told them that I enjoyed normal relations with Khanjar,” he went on to say.

“They later came up with a different scenario. They told me that they would take me to the Iraqi embassy in Jordan if I confessed to the charge and that I would late be released in Amman with a hefty sum of money. I told them that I would reject whatever they have to offer because I would not abandon my values to betray Khanjar, who was a friend,” he stated.

“They later accused me of complicity in the draining of the Mesopotamian Marshes, which I had nothing to do with,” he added.

Saddam Hussein with his daughter Hala in this undated photo. (Getty Images)

First call after Saddam’s execution

Mustafa recalled the first telephone call he had with his wife Hala and her mother, Sajida Khairallah Talfah, right after Saddam’s execution. “Five days after Mr. President’s martyrdom, I contacted my family. I spoke with my wife, and she was in very good spirits. She had very high faith and patience. I asked her about her mother, and she reassured me that she was also doing very well despite the pain,” he said.

“I pray that Gold Almighty will give her health and a long life. We have always derived our strength from her. My mother-in-law lost her two sons, Uday and Qusay, and then her husband. She had played a major role in supporting her husband from the beginning of his struggle. She always used to support him and stood by him throughout his career,” he remarked.

First meetings with Saddam

Mustafa recalled the early days of his meeting with Saddam. “They started when I began working for his special guard. That was when I first met him. Like most Iraqis and Arabs, I believed that he would be a difficult person, but the truth is that I saw him as a paternal figure,” he added. “When you work with him, you begin to develop a different opinion than the public impression. He was a very paternal figure.”

During their first meeting, they learned that they came from the same tribe and were distant cousins.

“I stayed by Mr. President’s side for around 20 years. I started off as part of his personal guard and he then tasked me with people’s affairs, meaning seeing to their needs and addressing their problems. He was very concerned with the people’s affairs and refused any one of them to be wronged. The truth is that many laws were amended or changed at the time following complaints from the people,” he revealed.

“There were two telephones at Mr. President’s office, and both were connected to my office. Whoever had a problem could call the president through the citizens’ line. I used to answer their calls and listen to their problems and set an appointment with the president. Sometimes I used to ask the caller to come in person with their request so that their problem could be tackled. Sometimes Mr. President would interject on the call to ask about the issue and would request to talk to the citizen on the line,” Mustafa said.

“He would listen to the person’s grievance and tell him to head to the dedicated office to tackle the issue. (...) So we used to receive hundreds of citizens every week to solve their problems. Mr. President was very concerned about these issues,” he stressed. “I have never met another person like him. He would listen, care and then come up with a solution.”

President’s son-in-law

Asharq Al-Awsat asked Mustafa about when he asked Hala to marry him. “It was in 1994. As is the tradition in Iraq, I headed with my uncles to Saddam’s family to ask her hand in marriage,” he said. “One of my uncles made the request to Mr. President on my behalf and he agreed and welcomed it.”

“A judge was summoned immediately for the ceremony, and we were married. We had lunch at the president’s house that same day. I first met Hala on September 12, and we were married on September 26. It was a short engagement in line with tradition.”

“Mr. President used to separate state affairs from his relationship with his family. His work was completely separate from family, which had nothing to do with political or state affairs. It never intervened in those issues. Mr. President was a man of state when he was doing his job, and a father when he came home. He treated his family as if he were its father – the perfect father. Every family wishes to have a father that can measure up to him because he looked after all of his children and all of his relatives,” Mustafa said.

“When he sat down to the dinner table, he himself used to serve his own food and ask his children about their day. He would serve them food and generally cared very much for them. The state is one thing and family is another. At the same time, he acted as a father to all Iraqis. He treated them fairly. This is Saddam Hussein,” stressed Mustafa. “He was always keen that Iraqis be treated justly and that none of them be wronged. He was also very firm with his children if they made any mistake.”

Saddam’s hobbies

Saddam was a “very traditional Arab man. He loved traditional Arab and Iraqi dishes. He himself used to cook his own version of the traditional Iraqi dish al-Habeet. (...) He also loved seafood and would cook the Masgouf fish dish himself,” Mustafa told Asharq Al-Awsat.

His hobbies included horseback riding, hunting, swimming and sharpshooting. “Occasionally, before heading to the front to fight against Iran, he would visit the al-Amarah region, where gazelle and geese are abundant, to hunt. As circumstances became more challenging, he limited himself to fishing, which he did regularly,” he added.

He was a skilled shooter from his youth. “Generally, growing up in a tribe, children are taught at a young age how to become a good shooter. This is part of our upbringing. He was also an avid reader. He was always reading something,” Mustafa said of Saddam.