Tripoli Factions on Edge as Libya Stalemate Festers

Vehicles drive along a road at the Souk al-Thalath (Tuesday market) district in the center of Libya's capital Tripoli on June 11, 2022, after clashes between two influential militias had occurred there the previous night. (AFP)
Vehicles drive along a road at the Souk al-Thalath (Tuesday market) district in the center of Libya's capital Tripoli on June 11, 2022, after clashes between two influential militias had occurred there the previous night. (AFP)
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Tripoli Factions on Edge as Libya Stalemate Festers

Vehicles drive along a road at the Souk al-Thalath (Tuesday market) district in the center of Libya's capital Tripoli on June 11, 2022, after clashes between two influential militias had occurred there the previous night. (AFP)
Vehicles drive along a road at the Souk al-Thalath (Tuesday market) district in the center of Libya's capital Tripoli on June 11, 2022, after clashes between two influential militias had occurred there the previous night. (AFP)

A sudden shootout between factions in the Libyan capital this month provided a vivid demonstration of how a political stalemate could trigger fighting between rival groups and end two years of comparative peace.

Much of Libya has for years been dominated by armed forces that control territory and vie for position while formally acting as paid elements of state security, their presence strikingly apparent during a recent Reuters visit.

In Tripoli, tensions over the standoff between the unity government installed last year and a rival one endorsed by the eastern-based parliament have added to earlier friction in the capital over such groups' relative standing.

Though all sides have publicly said they reject any return to major war and do not expect one, efforts to resolve the standoff have faltered and there are new signs of armed escalation.

Footage shared on social media this week showed a faction opposed to the government in Tripoli moving towards the city from its base in the mountain town of Zintan with a large convoy of military vehicles.

Any prolonged clashes among the different factions in Tripoli could spill over into a wider conflict drawing in forces from across Libya in a new phase of war that would hit civilians hardest.

When the shooting began this month at Souk al-Thulatha park near Tripoli's historic center, families were enjoying the cool sea breeze as a weekend night brought relief from a hot summer day.

Nawal Salem, 42, had gone there with her daughters because a power cut meant she could not run air conditioning at home. The girls played on their bikes and she was scrolling through her phone when she heard the shooting.

In the chaos, as she grabbed her children and ran for home, people were screaming and falling over and she saw lost children, separated from their parents.

"All I remember is carrying my daughters in my arms all the time until we got to a relative's house and I was crying a lot and my daughters were very scared," she said.

Standoff

Four people were reported injured, but in a sign of how transitory - and even normal - such flashpoints have become for city residents, the park was busy again the following morning with families strolling and buying ice creams from a van.

However, there are growing signs that wider clashes could happen, putting the 2020 ceasefire between the main sides in the war at risk.

The ceasefire was accompanied by a political process that has mostly broken down. An interim unity government under Abdulhamid al-Dbeibah was supposed to hold elections in December but a dispute over the rules stopped the vote.

The parliament and eastern forces in the last war have instead appointed a new government under Fathi Bashagha, but Dbeibah has refused to step down and Bashagha cannot enter Tripoli.

Dbeibah still appears to have the support of most of the main armed forces in the capital, but some back Bashagha.

"Because there's no political outlet for discussion and no political process, it makes clashes more likely," said Emadeddin Badi of the Atlantic Council.

"The fact there are two governments is exacerbating these tensions."

Armed group leaders have been able to secure state salaries for their fighters and access to government contracts in return for allegiance to political figures over the past decade, a senior Libyan state official said.

When Bashagha tried to enter Tripoli last month, clashes broke out between rival groups, forcing him to quit the city.

Most of the major armed factions have long been integrated into state payrolls with official roles under the interior or defense ministries, though they answer to their original leaders rather than to the government.

Shooting

In a uniform shop in central Tripoli, the walls are hung with an array of colors and camouflage patterns, tactical gear and a board displaying insignia for the numerous military or security forces, showing the big number of armed groups.

During a five-minute drive along a main Tripoli road from Souk al-Thulatha on the day before the shooting, Reuters counted more than 20 security vehicles with 11 different liveries, ostensibly showing them to be forms of police or army.

At night, city roundabouts are lit by the flashing blue and red lights on security vehicles, idling by the access roads while fighters in an array of uniforms and bearing assault rifles, sometimes with masks over their faces, question drivers.

Periodically, a force moves through the city in an armed convoy with tens of vehicles, the uniformed fighters standing in the back of pick-up trucks mounted with heavy machine guns.



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.