Will Arab Disputes Postpone Algeria Summit?

Tensions between Arab Maghreb countries and debater over Syria’s reinstatement are main hurdles

Leaders at the Arab League summit in Tunisia in 2019. (Egyptian presidency)
Leaders at the Arab League summit in Tunisia in 2019. (Egyptian presidency)
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Will Arab Disputes Postpone Algeria Summit?

Leaders at the Arab League summit in Tunisia in 2019. (Egyptian presidency)
Leaders at the Arab League summit in Tunisia in 2019. (Egyptian presidency)

Disputes between Arab countries and differences over the reinstatement of Syria are threatening to postpone the upcoming Arab League summit, scheduled for Algeria in November.

Algeria has been preparing to host the 31st summit since 2019. It will be the first in-person summit for Arab leaders since the coronavirus pandemic.

President Abdelmadjid Tebboune stressed earlier this month that the summit will be a success “because it seeks Arab reconciliation after years of division and fragmentation.”

Syria’s return?

Algeria politician and lawyer Mohammed Adam Mokrani noted, however, that Syria’s return to the Arab fold will be among the main hurdles at the summit.

In remarks to Asharq Al-Awsat, he said that Algeria has for months been supporting Syria’s return seeing as it is founding member of the Arab League.

Syria was suspended in wake of its regime’s brutal crackdown on peaceful protests that broke out in 2011.

Syria’s return has not been advocated by all Arab countries. Mokrani suggested the issue could be put up to a vote during the summit so that it would not remain as a sticking point or a reason to postpone the meeting.

Moroccan former MP Adil Benhamza described the situation in the Arab world as “extremely divided”.

He told Asharq Al-Awsat that the pandemic was used as an excuse to postpone summits in the past, but it can no longer be used to justify repeated delays.

Several other issues could prompt the delay, among them the dispute over Syria’s return, he added.

Dr. Hassan Abou Taleb, of the Al-Ahram Center for Political and Strategic Studies, said it would be “very difficult” to hold the summit given the “major disputes over how to handle Syria and Algeria’s efforts to end the boycott against it.”

There is no Arab consensus over this issue and leaders appear unwilling to even discuss it at the summit, he noted.

Hussein Haridy, Egyptian former Assistant Foreign Minister for Asia, Australia, New Zealand and Pacific Affairs, said it was “difficult to predict” whether the summit will be held on time.

He told Asharq Al-Awsat that numerous developments have taken place in the Middle East since the last regular summit was held, so the Algeria meeting must be held to allow Arab leaders to agree on how to address them.

“Failure to hold the summit on schedule will send an unwanted message to regional and international powers that Arab leaders lack the joint will to address regional and international developments and pressing financial and political affairs,” he warned.

However, he said that Algiers’ insistence on reinstating Syria’s membership “in spite of the opposition of influential Arab powers” may ultimately lead to the postponement of the summit.

On the official level, Arab League Assistant Secretary General Hossam Zaki had last month stated that no specific time can be set regarding Syria’s return to the organization.

Its return is not imminent, but it is not far either, he said.

An Arab diplomatic source said this position has not changed.

Speaking on condition of anonymity to Asharq Al-Awsat, the source confirmed that preparations are still underway to hold the summit on schedule in spite of Arab disagreements.

Maghreb tensions

Another sticking point at the summit is the tensions between Morocco, Algeria and recently Tunisia.

Rabat and Algiers had severed relations in wake of the dispute over the Western Sahara.

Over the weekend, Morocco summoned its ambassador to Tunis after Tunisian President Kaies Saied received Polisario Front movement chief Brahim Ghali.

Morocco said Tunisia's decision to invite Brahim Ghali to a Japanese development summit for Africa that Tunis is hosting this weekend was “a grave and unprecedented act that deeply hurts the feelings of the Moroccan people”.

Tunisia, in response to Morocco's decision, announced it was recalling its ambassador to Rabat for consultation.

Tunisia's ministry of foreign affairs said in a statement early on Saturday that the country maintains its complete “neutrality over Western Sahara issue in compliance with international legitimacy”.

In a terse foreign ministry statement, Morocco said it would no longer take part in the Africa summit. It also accused Tunisia of having recently “multiplied negative positions” against Morocco, and said its decision to host Ghali “confirms its hostility in a blatant way”.

Abou Taleb said relations between the Maghreb countries are “very strained”, posing a challenge for plans to hold any Arab summit.

The tensions may lead to countries even lowering their level of representation or calling for the delay of the meeting altogether, he added.

“The Arab region is boiling with tensions and crises, casting doubts that the summit will be held as scheduled,” he stated.

Mokrani and Benhamza speculated that Morocco may even skip the summit given its dispute with Algeria.

The diplomatic source stressed that Algeria was determined to hold the summit and would not allow disputes to hinder it even if it had to make concessions over Syria’s reinstatement.

Algeria wants to use the summit to demonstrate its “strong return to the international and regional scene. It may therefore abandon its demand over Syria to avoid being held responsible for the failure of the summit,” he explained.



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.