Normalization of Ties with Damascus and Caesar Act

A truck crosses the Syria-Jordan border after it was reopened on Wednesday (Reuters)
A truck crosses the Syria-Jordan border after it was reopened on Wednesday (Reuters)
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Normalization of Ties with Damascus and Caesar Act

A truck crosses the Syria-Jordan border after it was reopened on Wednesday (Reuters)
A truck crosses the Syria-Jordan border after it was reopened on Wednesday (Reuters)

The train of normalization of ties bound for Damascus has departed. Still, the dispute remains over how fast it should go, the stops it should make, and the challenges and reforms needed for its railway to reach the Syrian capital.

A few have boarded the train openly, others secretly, while some have booked a ticket and set conditions for them to make the trip. However, many are waiting for the test results, monitoring the regime’s behavior while betting on sanctions and isolation taking effect.

In late 2018, Damascus received the first dose of Arab normalization of ties with the UAE, Bahrain, and other Arab countries, reopening their embassies. They joined a host of other nations like Egypt, Jordan, Oman, Iraq, and Algeria. These countries did not shut down their embassies in Syria, even after the Arab League had suspended Damascus’ membership in 2011.

The Czech Republic was the only European country that kept its ambassador in Damascus to represent both itself and US interests.

Since the spring of 2012, Western countries have either altogether boycotted Damascus and shut down their embassies or resorted to transferring their ambassadors to Beirut for “security reasons” and allowing them to make periodic visits to Syria.

The same applies to Syria’s embassies abroad, most of which have been closed, except for some capitals, which either maintain a good political relationship with Damascus (such as Bucharest) or have international institutions that require the presence of a representative for the Syrian government, such as Vienna, Geneva, Paris, and New York.

The second dose of normalization took place this year, as European countries expanded their contacts with Damascus.

Some countries, such as Cyprus, Greece, and Spain, have extended the stay of their diplomats in Syria or have begun to dust off diplomatic headquarters in Damascus.

More so, Athens agreed to the presence of Syrian diplomats for the first time in years, and Ankara decided to replace diplomats at the Syrian consulate in Istanbul.

Security-wise, most of these countries were establishing or resuming intelligence contacts with Damascus.

Ali Mamlouk, the head of the National Security Bureau, had visited European capitals, including Rome, and stopped by Arab countries either overtly or covertly.

Mamlouk received several western intelligence officials from major European countries and envoys from the previous US administration to investigate the file of the missing US journalist, Austin Tice.

What’s New in Terms of Normalization of Ties?

Today, Damascus is taking its booster shot regarding the normalization of ties with officials taking the relationship beyond its security and diplomatic scope to the open political level. This can be witnessed at ministerial meetings with government delegates in New York when dealing with the Syrian opposition’s delegation is waning.

It can also be noticed through direct contact with President Bashar al-Assad in Damascus.

Previously, several countries avoided political contacts or direct communication with Assad in public.

Some countries even avoided changing their ambassador or appointing a charge d’affaires in Damascus in order not to give the Syrian president any credibility.

Nevertheless, matters appear to have changed now.

Without surprise, Iran and Russia, key regime backers in Syria, sent officials to Damascus to meet with Assad.

Chinese Foreign Minister Wang Yi’s public visit to Damascus, the first in a decade, took place on July 17, the same day Assad was sworn in as president once again. The top Chinese diplomat’s visit symbolically acknowledged the validity of Syrian presidential elections that were otherwise slammed by the West and the local opposition.

As far as communication with Assad goes, Abu Dhabi Crown Prince Sheikh Mohamed bin Zayed phoned the Syrian president concerning “humanitarian” support in the face of the “coronavirus pandemic” in early 2020.

Later, Iraqi President Barham Salih called Assad to explain why he was not invited to a recent summit in Baghdad.

However, what attracted attention was Jordanian King Abdullah II’s phone conversation with Assad a few days ago. The call had different dimensions.

Firstly, it came after the Jordanian monarch had met with US President Joe Biden and Russian President Vladimir Putin in July and August.

Amman revealed that the monarch reaffirmed “Jordan’s support for efforts to preserve Syria’s sovereignty, stability, territorial integrity, and people.”

Secondly, the call comes after King Abdullah telling CNN that the “Syrian regime was there to stay.”

Thirdly, Jordan has hosted the operations room led by the US Central Intelligence Agency (CIA) to train thousands of Syrian opposition fighters against Damascus since 2013.

Fourthly, the call comes after Russia and Jordan succeeded in pushing Syrian opposition fighters in Daraa to surrender and hand over their arms, helping Assad’s government to fully return to the war-torn country’s south.

Fifth, it follows Amman hosting several Syrian ministers, including Defense Minister Ali Ayoub, to review the situation at borders between Jordan and Syria.

Sixth, the call ensues Amman getting the green light from the US to run natural gas pipelines and electricity networks from Egypt to Syria without facing sanctions.

What’s the Difference Between Normalization and Sanctions?

Washington had sanctioned more than 600 Syrian individuals and entities as of mid-2020, when the Caesar Syria Civilian Protection Act went into effect. Meanwhile, European countries sanctioned 350 individuals and entities.

The UK, after exiting the EU, issued its own sanctions list.

According to the Caesar Act, there are seven official stipulations to lift sanctions off Damascus and six political conditions to normalize ties with the Syrian capital. Four of the conditions for normalization date back to before the events of 2011.

Legally, any change to the Caesar Act requires Congress voting. But the US president has the right to suspend all or part of the sanctions for renewable periods not exceeding 180 days, if specific criteria are met:

i. The Syrian and Russian governments cease using Syrian airspace to target civilian populations
ii. Areas of Syria not under government control are no longer cut off from international aid and have regular access to humanitarian assistance, freedom of travel, and medical care
iii. The Syrian government release all political prisoners and allow access to detention facilities
iv. The Syrian government and its allies cease the deliberate targeting of medical facilities, schools, residential areas, and other civilian targets
v. The Syrian government take steps to fulfill its obligations under the Chemical Weapons Convention and the Treaty on the Nonproliferation of Nuclear Weapons, and make “tangible progress” toward becoming a signatory to the Convention Prohibiting Biological and Toxin Weapons
vi. The Syrian government permit the safe, voluntary, and dignified return of Syrians displaced by the conflict
vii. The Syrian government takes “verifiable steps” to establish meaningful accountability for perpetrators of war crimes in Syria and justice for victims of war crimes committed by the Assad government.

What is clear is that “normalization doses” are clashing with the “Ceasar Act virus,” which first demands a strategic change in Syria and a vote in Congress. This explains the cautious steps the Biden administration is taking towards Assad and his government, as well as the public criticism leveled by US officials and legislators against the actions taken by Amman towards Damascus.



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.