Damascus ‘Thwarts’ Settlement as it Eyes Reconstruction

UN special envoy for Syria Geir Pedersen holds a press conference at the United Nations Offices in Geneva. (AFP)
UN special envoy for Syria Geir Pedersen holds a press conference at the United Nations Offices in Geneva. (AFP)
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Damascus ‘Thwarts’ Settlement as it Eyes Reconstruction

UN special envoy for Syria Geir Pedersen holds a press conference at the United Nations Offices in Geneva. (AFP)
UN special envoy for Syria Geir Pedersen holds a press conference at the United Nations Offices in Geneva. (AFP)

Damascus is set to host in the coming hours United Nations Under-Secretary-General for Humanitarian Affairs and Emergency Relief Coordinator, Martin Griffiths.

UN special envoy, Geir Pedersen, meanwhile, is being made to wait for an invitation to visit the Syrian capital as it mulls its priorities for the coming phase. Damascus will welcome international aid and push forward the implementation of the UN resolution on cross-border aid with its new phrasing. The resolution was extended in early July.

Damascus is setting its sights on the reconstruction and relief funds, while delaying negotiations over a political settlement and the UN-sponsored talks in Geneva related to the constitutional committee.

In July, the United States and Russia reached a “historic settlement” that was extension of the cross-border aid resolution. Washington was forced to make concessions over the duration of the resolution and the finer details an accept Moscow’s introduction of new phrasing to the resolution.

The resolution now speaks of “early recovery”. The resolution reads: “The Security Council welcomes all efforts and initiatives to broaden the humanitarian activities in Syria, including water, sanitation, health, education, and shelter early recovery projects, undertaken by the International Committee of the Red Cross (ICRC) and other organizations, and calls upon other international humanitarian agencies and relevant parties to support them.”

“The Security Council requests the Secretary-General to brief the Council monthly and (…) to include in his reports overall trends in United Nations cross-line operations, in particular on the implementation of the above mentioned activities on improving all modalities of humanitarian deliveries inside Syria and early recovery projects, and detailed information on the humanitarian assistance delivered through United Nations humanitarian cross-border operations, including the distribution mechanism, the number of beneficiaries, operating partners, locations of aid deliveries at district-level and the volume and nature of items delivered.”

Griffiths’ meeting with Syrian Foreign Minister Faisal al-Miqdad in the coming hours will be an opportunity for Damascus to offer its interpretation of the resolution and its priorities in regards to “cross-line” operations between the three zones of influence inside Syria and the contributions to the “early recovery projects” that take the country closer to reconstructions.

Damascus will likely also pressure Griffiths to take a clearer position on the “unilateral” western sanctions and Ankara’s closure of a water pumping station east of the Euphrates River.

Damascus’ stances are pushing it closer from those of Moscow and Tehran that stand in contrast to Washington and the West that are prioritizing cross-border aid. The US and western countries view the aid as a matter of life or death and have accused Damascus of obstructing deliveries of aid to northeastern regions that are held by Washington’s allies.

Furthermore, western countries refuse to take part in any reconstruction project in Syria before making sure that irreversible progress is achieved in the political process. This position implicitly agrees that sanctions, isolation and pledges to contribute in reconstruction are “means to pressure” Damascus to make internal and geopolitical concessions.

The clash in positions between Damascus and the West over aid will not extend to the political arena as the government continues to refuse to welcome Pedersen despite Russia’s intervention to facilitate such a visit.

Damascus is “angry” with the envoy for helping mediate a meeting between Daraa representatives and his issuing of a statement expressing his concern over the deteriorating situation there. It is also upset with the way negotiations have been held with the head of the government delegation to the constitutional committee talks in Geneva. The negotiations have focused on the agreement on the working mechanism of the committee and working paper that the envoy had presented at the beginning of the year.

Pedersen, meanwhile, wants to head to Damascus to “negotiate” over the UN constitutional mechanism. In April, he had sent a document to government delegation head, Ahmed al-Kuzbari, and opposition “negotiations committee” delegation head, Hadi al-Bahra, tackling the steps to kick off the committee’s work in drafting the constitution. Bahra agreed to the document despite his reservations, while Kuzbari had instead proposed discussing the constitution rather than draft it.

President Bashar Assad had made his position clear over the drafting of the constitution during his swearing in ceremony in July. He said: “You have proven once again the unity of the battle of the constitution and nation. You have proven that the constitution is a priority that is not open to debate or compromise.”

He said that efforts to draft the new constitution aim to put the country “at the mercy of foreign forces”, citing “Turkish agents” at the committee talks – a reference to the opposition negotiations committee delegation.

Moscow will be pleased with Damascus’ presentation to Griffiths of its interpretation of the aid resolution extension.

Sights are now set on Moscow to act to persuade Damascus to welcome Pedersen, who had recently met with Foreign Minister Sergei Lavrov in Russia. Perhaps he would meet with Miqdad on the sidelines on the UN General Assembly in New York in September.



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.