Asharq Al-Awsat Tours Kharkiv amid Constant Battles, Shelling

Destruction in Kharkiv after Russian shelling. (Reuters)
Destruction in Kharkiv after Russian shelling. (Reuters)
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Asharq Al-Awsat Tours Kharkiv amid Constant Battles, Shelling

Destruction in Kharkiv after Russian shelling. (Reuters)
Destruction in Kharkiv after Russian shelling. (Reuters)

It is noon in Kharkiv. Ukrainian artillery near the western parts of the city launches several howitzers, setting off dozens of car alarms. They ring for several minutes before their owners can silence them. This happens every hour or so in the almost deserted city.

In central Kharkiv, a bank was destroyed overnight and no one is longer around to turn off its alarm. Less than a kilometer away, three members of the Ukrainian army inspect the identities of pedestrians. They have set up cement barriers aimed at impeding the advance of tanks. One speaks fluent English and spoke to Asharq Al-Awsat about the developments in the central part of the city.

The central shopping district of Kharkiv was a source of massive pride for the locals due to its beauty. Every day, it gets its daily dose of Russian rockets. Not much glass remains in the city center. Most of it has been blown away by the bombardment. Only the military museum appears intact. It is difficult to discern the shattered glass on the ground from the ice that still covers the pavements.

You can walk for several minutes in Kharkiv without coming across a single soul. The city is almost deserted. A policeman on Poltavskyi Shliakh Street points to a small souvenir stall, saying: "This is all that's left on this street. Everyone is gone."

At a train station, several residents have gathered to leave the city. Waves of people are leaving as battles edge closer to the outskirts of Kharkiv. The attacks have struck neighborhoods indiscriminately.

At the main train station, hundreds are waiting for their ride to take them to Kyiv and from the capital to other cities or European countries.

The villages to the west and south of Kharkiv are still busy with people. Long lines form in front of shops as people wait to buy essentials. In Kharkiv, however, there are no lines, you hardly find a small grocer to buy some food. You barely even find anything to buy.

Stray and abandoned cats and dogs roam the streets after their owners fled the strikes and advancing Russian tanks. The pets have become the daily entertainment for policemen as they await pedestrians to inspect their IDs.

The sound of shelling can be heard throughout the day. "Some parts of the city have been completely destroyed," said Vitaly, 28. He identified himself as a military volunteer. He revealed that he is facing financial difficulties after he lost his job due to the war. He lives with fellow fighters and makes do with whatever food and water that is available.

Many things are now free in Kharkiv. You can get a hotel room for free if you are lucky to find a hotel that is not destroyed or still receiving guests. You can get food, tea or coffee at train or metro stations. Free clothes are available at several volunteer gathering points if you can stand out in line in the biting cold for long enough.

Obtaining essentials for free does not mean that the city is doing well. Several goods are unavailable and prices have varied from city to city. The price of bread has doubled in recent days in Kharkiv.

The remaining residents of Kharkiv are also suffering from a lack of hard cash. The ATMs have stopped working and those that are, are not being replenished.

Local authorities have sought to remove the traces of the shelling as soon as it is safe. They work on reopening streets and removing rubble, but they cannot always keep up with the Russian attacks. In the central part of the city, electricity lines are left dangling on their poles and piles of shattered glass and destroyed cement blocks are scattered around. Several neighborhoods in eastern and northern Kharkiv, even its center, are without electricity after the network malfunctioned, forcing many residents to leave.



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.