Fixed Borders Separate Syrian 'Mini-States' Pending US-Russian Deal

A Syrian man gets his beard trimmed in preparation for the upcoming Eid al-Fitr holiday which marks the end of the Muslim holy month of Ramadan, at a camp for the internally displaced in Maaret Misrin city in Syria's northwestern Idlib province on May 8, 2021. (Photo by OMAR HAJ KADOUR / AFP)
A Syrian man gets his beard trimmed in preparation for the upcoming Eid al-Fitr holiday which marks the end of the Muslim holy month of Ramadan, at a camp for the internally displaced in Maaret Misrin city in Syria's northwestern Idlib province on May 8, 2021. (Photo by OMAR HAJ KADOUR / AFP)
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Fixed Borders Separate Syrian 'Mini-States' Pending US-Russian Deal

A Syrian man gets his beard trimmed in preparation for the upcoming Eid al-Fitr holiday which marks the end of the Muslim holy month of Ramadan, at a camp for the internally displaced in Maaret Misrin city in Syria's northwestern Idlib province on May 8, 2021. (Photo by OMAR HAJ KADOUR / AFP)
A Syrian man gets his beard trimmed in preparation for the upcoming Eid al-Fitr holiday which marks the end of the Muslim holy month of Ramadan, at a camp for the internally displaced in Maaret Misrin city in Syria's northwestern Idlib province on May 8, 2021. (Photo by OMAR HAJ KADOUR / AFP)

The “borders” between the three spheres of influence in Syria are fixed, pending a mutual understanding between the United States and Russia. The deal would open the door to a comprehensive solution, but remains insufficient to impose and maintain the expected settlement as the Syrian conflict enters its eleventh year.

Two years ago, Damascus, Moscow, and Tehran were betting on a military operation to restore Idlib- or understandings and incursions to regain influence over east of the Euphrates, in addition to Arab and European political breakthroughs to ease Western sanctions on Damascus- and break its isolation.

But these hopes did not materialize. In March 2020, Moscow was surprised by the Turkish military presence in northwestern Syria and then concluded a long truce with Ankara. Joe Biden entered the White House this year, and the US military presence in northeastern Syria became open, no longer subject to the tweets and understandings of former President Donald Trump with his Turkish counterpart Recep Tayyip Erdogan. Moscow and Washington agreed on a truce as well. In addition, the previous US administration implemented the Caesar Act and coordinated with the European Union and Britain to impose sanctions on Damascus. This has set a legal and political ceiling that restrained the aspirations of those seeking political normalization and economic cooperation with the country.

For around a year and a half, no practical steps were achieved towards a political solution nor a breakthrough in the work of the Constitutional Committee, which Moscow put as an alternative to all the provisions of Resolution 2254. The lines of contact between the three regions have not changed. Each “region” follows its agenda.

In Damascus, parliamentary elections took place, and two weeks after, presidential elections will be held in government-controlled areas, as well as in some diplomatic missions abroad and Lebanon. This is accompanied by war under Russian cover against “ISIS” in the Badia and some assassinations and expansion operations in the countryside of Daraa and Sweida. The official political discourse emphasizes restoring control and sovereignty over all parts of the “Syrian state”, while promises of reforms are repeated in the “national agenda” that will follow the presidential elections. Damascus is benefiting from the presence of Russian and Iranian bases and forces.

The east of the Euphrates is witnessing the empowerment of the Autonomous Administration and the implementation of intra-Kurdish political agreements between its institutions and Syrian opposition parties. This is accompanied by a campaign launched in coordination with the US-led international coalition to pursue ISIS cells and solve the problem of the “mini-state” in al-Hol, a city that comprises thousands of ISIS Arabs, foreigners, and displaced people. This is supported by efforts to grab political recognition of this administration and the Kurdish forces inside it. The “administration” enjoys the presence of the US-led coalition forces and bases.

Something similar is going on in the northwest of the country. Hay’at Tahrir al-Sham, the successor of Al-Nusra Front, is seeking to have political recognition, and its leader, Abu Muhammad al-Julani, changed his rhetoric in an attempt to receive the consent of America and the West. The movement also seeks to empower its “rescue” government and institutions, in competition with the “interim government” that extends its control with other factions over the north of the country. Moreover, the group has opened a department for compulsory recruitment and continues to chase ISIS militants and extremists. It also benefits from the presence of Turkish forces and military bases.

The foreign military presence is not the only common factor between the three regions, which are also facing a severe economic crisis and the spread of the coronavirus. Each region is looking for exits through agreements and bargains, by opening “crossings through the lines of contact” for the passage of goods and aid. The US promised to release frozen funds to support stability and to give humanitarian and structural exemptions from sanctions for the eastern Euphrates.

It also promised to extend the decision on “cross-border” humanitarian aid and increase the crossings to three to include Turkey - northern Syria and Iraq - eastern Syria.

As for Russia, in view of the “borders” set by the sanctions and Western isolation, it is betting on Arab breakthroughs and Damascus’ return to the “Arab fold”, in addition to providing some funds and humanitarian aid to the Syrian government under the slogan of fighting the coronavirus.

Since the arrival of Biden’s administration, Washington has not imposed sanctions under the Caesar Act. It is monitoring Arab steps towards Damascus. It also allowed medical, humanitarian, and nutritional exceptions. The US capital is in fact betting that its leniency will encourage the Russian side to extend the international resolution to provide aid “across borders.”

Despite the decline in US-Russian bilateral relations, the abovementioned steps are seen as a tentative preparation for an arrangement of mutual interests between Washington and Moscow in Syria.

“This is the only path for the start of a comprehensive settlement, not its conclusion,” said a western diplomat.



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.