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The contrast between the French and German economies has rarely appeared so stark. While France continues to enjoy surprisingly strong growth and is increasingly attractive to both foreign and domestic investors, Germany is struggling – even if it is far from being the sick man of Europe – owing to a severe political crisis that has cast a shadow over its economic outlook and is weighing heavily on economic sentiment.But this interpretation overlooks a fundamental fact: Germany and France are more interdependent than ever. To maintain economic growth and assert their influence globally, they must work together to strengthen the European Union.The French economy demonstrated remarkable resilience during the Covid-19 pandemic and the 2022 energy crisis. Over the past two years, France has boosted its competitiveness, improved its business environment, and attracted more than twice as much foreign direct investment as Germany.By contrast, Germany’s declining competitiveness has forced it to rely on substantial subsidies to lure international investors and support its own industry. Consequently, while France is expected to grow by 1% in 2023, German GDP is expected to contract, followed by minimal growth in 2024.These diverging trajectories can be attributed to three main factors. First, the French presidential system allows President Emmanuel Macron to set clear priorities and implement new measures quickly. This has enabled Macron to pursue major reforms of France’s pension system and labour market, streamline existing regulations, and establish bold industrial-policy goals that are now beginning to yield significant returns, including steady declines in unemployment.Meanwhile, Germany is grappling with political gridlock. The so-called traffic-light coalition – comprising Chancellor Olaf Scholz’s Social Democratic Party, the Greens, and the Free Democrats – is failing. Deep ideological divisions have led to a political impasse that is threatening to paralyse the country, reflected in the government’s ongoing struggle to finalise its 2024 budget.Germany’s complex federal system, known for its robust checks and balances, was designed to cement its democratic principles and prevent a return to authoritarianism. As such, it prioritises stability over speed and flexibility. This preference is now taking a toll on the economy, as Germany urgently needs to implement major regulatory, fiscal, industrial, and trade reforms.Another critical difference between France and Germany lies in their different approaches to economic openness. Germany’s postwar economic model has relied heavily on exports, which now account for nearly half of the country’s total economic output. This model has been shaped by political forces, foreign-policy preferences, and – before the euro – by monetary policies centred around a strong Deutsche Mark.Moreover, Germany’s economic and fiscal policies have historically favoured the industrial sector, from automobiles to chemicals and mechanical engineering. This fixation has led German politicians to focus on boosting the industrial sector’s share of economic output, which is currently nearly double that of France.Despite these differences, the economies of France and Germany have far more in common than is generally acknowledged. While France has outperformed Germany over the past four years, it is still catching up to the remarkable economic boom Germany experienced in the 2010s. Notably, Germany has one of the lowest unemployment rates in Europe, and its companies have maintained their strong global market shares.Moreover, in response to the pandemic, the war in Ukraine, and heightened geopolitical tensions, both Germany and France have pursued increasingly protectionist economic agendas. Both have adopted national industrial policies that involve subsidising domestic companies through reduced electricity prices, direct financial assistance, and various tax benefits, and have effectively launched a subsidy race to attract foreign investors and multinational companies such as Tesla and Intel. These measures are unfair to companies in weaker European economies, reduce competition, and risk undermining the single market, the EU’s most significant economic achievement.Both countries also have robust social-welfare systems in need of immediate reform. As inflation fuels social polarisation and political discord, far-right movements are gaining ground. The wave of populism and right-wing extremism engulfing many Western democracies is now heading for Germany. With the far-right Alternative für Deutschland (AfD) on course to win three key state elections in 2024, Germany could be facing an even deeper political crisis.Lastly, both Germany and France are threatened by the escalating geopolitical rivalry between the United States and China. To maintain economic growth, both countries must move away from nationally oriented economic and fiscal policies and work together to reform and strengthen the EU. The latest reform of the Stability and Growth Pact is insufficient to foster investment and the transformation of the European economy.On their own, the French and German economies lack the necessary scale to compete effectively against the world’s two largest economies, especially in critical emerging sectors like artificial intelligence and digital services. Both governments would be wise, therefore, to focus on their similarities rather than their differences. Instead of competing against each other, they should unite around a common cause. After all, the prosperity France and Germany enjoy today can be largely attributed to their close partnership over the past 70 years, which has been instrumental in advancing Europe’s economic interests.Faced with strong opposition from Germany, Macron seems to have abandoned his ambitions to reform Europe. This is a mistake. Both governments should change course and bolster the EU’s single market, complete the banking union, pursue capital-market union, develop a joint industrial policy, and streamline regulation and bureaucracy. And, not least, a common fiscal capacity is vital for crafting economic and industrial policies that embody European values and objectives. — Project SyndicateMarcel Fratzscher, a former senior manager at the European Central Bank, is President of the think-tank DIW Berlin and Professor of Macroeconomics and Finance at Humboldt University of Berlin.

The International Olympic Committee (IOC) hopes the 2024 Paris Games will be the “light at the end of the tunnel” after two Covid-hit Olympics but organisers face major security challenges before a unique opening ceremony on July 26.The IOC has been looking forward to a return to Olympic normality in Paris after both the Tokyo Games, delayed by a year to 2021, and the 2022 Winter Olympics in Beijing were staged without spectators or visitors due to the virus.That will change in Paris, with organisers planning what they describe as a spectacular and first-ever opening ceremony staged outside an Olympic stadium. Hundreds of thousands of spectators are expected to line the banks of the river Seine to watch the world’s biggest multi-sports event kick-off in style.For the 16 days of competition that follow until the Games close on August 11, however, organisers will be on high alert to ensure the event goes off safely. France raised its security alert to the highest level in October when a Chechen-origin man fatally stabbed a teacher in an attack at a school in northern France.Bomb alerts in tourist attractions such as the Louvre museum and Palace of Versailles have also increased in the wake of the Hamas attack in Israel on Oct 7 and the ensuing war in Gaza.French sports minister Amelie Oudea-Castera said earlier this month there was no “plan B” for the opening ceremony, her comments coming just days after a man armed with a knife and hammer killed a German tourist and left two people wounded near the Eiffel Tower.The attack occurred on the Quai de Grenelle - a spot also included in the plans for the opening ceremony.Keeping athletes and spectators safe is the top priority for organisers and they have put in place an “unprecedented” security plan for the Games that comes with a 320mn euros ($348.74mn) price tag and will see tens of thousands of police officers and private security personnel deployed.Some 30,000 police officers alone will safeguard the opening ceremony.A sharp rise in anti-Semitic acts around the world since the war in Gaza began also brings the security of Israel’s athletes at the Games into sharp focus.Officials from Israel’s Olympic committee have said they were in close collaboration with stakeholders to ensure the safety of their athletes, without providing specific details.Russia’s invasion of Ukraine in 2022 also poses problems for organisers, with the IOC allowing Russian and Belarusian athletes to compete in Paris as neutrals without flags, anthems or emblems.Paris Games officials said they will welcome the neutral athletes and respect the IOC’s decision but the move has left Ukraine frustrated and pondering its own participation.Kyiv government officials said they would decide whether Ukraine’s athletes take part in the Games at a later date.With just over six months to go until the event gets underway, Paris organisers and the IOC still have some heavy lifting to do to make sure the Games are exactly what they were meant to be - the world’s biggest celebration of sports.

Russia has handed out more than $12bn in state subsidies and loans to keep its aviation sector afloat since Western sanctions over Moscow’s invasion of Ukraine cut off supplies of key parts and maintenance services, a Reuters analysis shows.Dependent on foreign-made aircraft, Russia faces the daunting task of developing its aviation industry alone with domestically sourced parts, while buying aircraft from foreign lessors to avoid more of its fleet being seized.Western planemakers Airbus and Boeing halted supplies of services and spare parts in March 2022 and dropped regular maintenance support for flag carrier Aeroflot and other Russian airlines.Since then, Russia has spent 1.09tn ($12.07bn) supporting the civil aviation industry, including aircraft manufacturing and financial assistance for airlines, Reuters calculations show, based on data from the Ministry of Finance and the Accounts Chamber, which oversees budget execution.The spending is almost twice as much as 547bn in payments made in 2020-21, when the Covid-19 pandemic caused a drastic reduction in air travel, and highlights the scale of the Kremlin’s effort to wrest control of a crucial industry.“Our fleet of aircraft is very overloaded...with foreign-made planes,” President Vladimir Putin said last week. “We plan to produce more than 1,000 aircraft by 2030, our own planes. Work is needed.” According to Swiss aviation intelligence provider ch-aviation, Russian airlines currently operate 991 aircraft, including 405 made in Russia.But just 133 are Superjets made by state-owned producer United Aircraft Corporation. Other Russian-produced aircraft — Tupolev, Yakovlev and Ilyushin — are rarely used for commercial flights.Support for aircraft manufacturing, a key industry, will be maintained for years to come, the industry and trade ministry said in response to Reuters’ findings. “The main emphasis is on supporting sales, expanding production capacity and creating a post-sales service system,” the ministry said. The importance of a reliable air industry is particularly crucial for Russia, both for transporting people and goods across its enormous territory and to bolster Moscow’s narrative that sanctions have had but a minimal impact.With voters heading to the polls in three months, the collapse of an airline could apply reputational and electoral pressure on Putin who is running again for president. As a key aviation power since Soviet times, Russia’s technical ability is not in doubt.Western aviation analysts say the investments will at best keep the fleet flying but doubt its aircraft will return to Western markets any time soon, even if the conflict in Ukraine ends. That’s because of the cost and bureaucracy involved in rebuilding a fleet with a clean and traceable safety record and approved parts.Russia has dipped into reserve funds, the data showed, spending 110bn in 2022 on compensating airlines for losses from a sharp rise in jet fuel costs.b This year, the National Wealth Fund has played a bigger funding role with Moscow drawing almost 400bn for aviation spending so far in 2023.The scale of spending in 2022-23 is equivalent to just under 1% of projected gross domestic product (GDP) for 2023. Russia has spent an additional 2.3tn in 2022-23 on developing transport outside the aviation sector. The country’s domestic air passenger traffic began to rebound in late 2022, as airlines found ways to import spare parts through a grey import scheme the government introduced.Russian airlines have kept their fleet of Western jets in the air, partly by importing spare parts via third countries without the manufacturers’ — mainly Airbus and Boeing — consent.Passenger numbers are recovering but still lag pre-Covid levels. Meanwhile, the loss of foreign parts and maintenance expertise has raised concerns about aircraft safety. Some airlines have stripped airplanes for parts, aviation industry sources told Reuters last year.Moscow hurriedly localised the registration of its fleet and has used NWF funds to buy back aircraft from foreign lessors to avoid the risk of their confiscation when flying abroad.— Reuters

Economists believe that inflation around the globe will slow down faster than expected, bringing inflation back to normal levels for the first time in three years, according to the Wall Street Journal.The newspaper said in an article that the "core inflation, which excludes food and energy, in the group of economies that experienced the post-Covid inflation surge the US, Europe and several emerging markets ran at a 2.2% annualized pace over the three months ended November."The average inflation among that group by the end of 2024, should be at or near the inflation targets of most major central banks, the newspaper expected.In this context, senior adviser at Oxford Economics Michael Saunders expects inflation to reach 1.3% in the fourth quarter of next year in the euro area, and 2.7% in the U.K., while the newspaper noted that the US inflation will fall to 2.2% as measured by the Federal Reserves preferred personal-consumption-expenditures price index. "The common factors pulling inflation down are food, energy, global goods prices and monetary policy," said Saunders. "But the differences, and why inflation will be quicker to return to target in the eurozone, is the U.S. and U.K. also have greater pressures from labor market tightness, which are fading only gradually."The labor market is tight when the number of jobs is greater than the number of applicants for them, which leads to negotiating higher salaries, and thus continuing labor cost pressures for companies, which negatively affects inflation rates.The newspaper explained the factors that led to global inflation, saying that in 2021, goods prices soared because of disrupted global production and shipping in addition to strong demand due to fiscal and monetary stimulus, adding that the Russian war in Ukraine in 2022 led to an increase in commodity prices, causing inflation to hit multidecade peaks. "Inflation in the eurozone, which suffered from a cutoff of Russian gas, peaked at 10.6% in October 2022," the newspaper added.Housing costs have also influenced services inflation. In the US, consumer prices rose 3.1% in November from a year earlier, but just 1.4% excluding shelter. The impact has been far smaller in Europe where owner-occupied housing is omitted from key inflation measures. Unclogged supply chains drove down inflation toward the end of 2022 and throughout this year, and that will likely continue into next year, the newspaper noted.Head of economic research at Renaissance Macro Research Neil Dutta said that energy and commodity markets adjusted to the Ukraine disruption as well, helping bring down energy prices and stabilize food costs, adding that these forces should continue to weigh on inflation in 2024.The Wall Street Journal quoted chief global strategist at BCA Research Peter Berezin who said that the timing and impact will differ by country, and it is arguably already happened in the US, adding that wage pressures have abated due largely to an influx of workers into the labor force. (QNA)

The 2024 US presidential election promises to be like no other in modern times. Leading the field of Republican presidential candidates is former president Donald Trump, who faces a battery of federal and state criminal charges related to his efforts to overturn his 2020 election loss to Democrat Joe Biden.Biden, the incumbent president, is the presumptive Democratic nominee. At 81, he would be the oldest American to win a presidential election should he clinch a second four-year term in November 2024.Who are the Republican candidates running for US president?Trump, 77, is dominating the Republican field, which has largely avoided criticising him for his actions related to the 2020 election for fear of alienating his base of diehard supporters. Many of those supporters believe Trump’s false claims that the election was stolen from him. His Republican rivals, such as Florida Governor Ron DeSantis and former US ambassador to the United Nations Nikki Haley, instead have argued that Trump’s legal woes will hamstring him in a general-election fight against Biden. One exception has been former New Jersey Governor Chris Christie, who has condemned Trump’s attempts to subvert the 2020 election outcome. Former Arkansas Governor Asa Hutchinson, a long-shot candidate, has said Trump is unfit for office.Entrepreneur Vivek Ramaswamy, a newcomer to politics, is running as an inheritor of Trump’s populist, America First agenda, one that is wary of an expansive federal government, corporate power and international alliances. DeSantis was once viewed as the most likely candidate to deny Trump the nomination, but his campaign has sputtered since launching in May despite having a big war chest. Haley has gained some momentum following strong debate performances, and they are essentially tied nationally, according to opinion polls. National polls also show that Trump holds a slight edge on Biden in a head-to-head matchup, with voters concerned about Biden’s age and his handling of the economy despite job growth, infrastructure investment and a slow easing of inflation after last year’s peak.Trump faces indictments in four cases in federal and state courts for his efforts to undermine the 2020 election, his mishandling of classified documents and his involvement in a “hush money” scheme involving a porn star. He has maintained his innocence and argued that he is the victim of politically motivated prosecutions, an assertion the Biden administration and other prosecutors deny. The legal calendars for those cases pose obstacles for Trump’s ability to campaign. The Colorado Supreme Court ruled on December 19 that Trump is barred from appearing on the state Republican primary ballot because he engaged in insurrection in violation of the 14th Amendment to the US Constitution.The decision only applies to Colorado but could embolden other state courts to rule similarly. Trump is expected to appeal to the US Supreme Court.Who are the Democrats running for president?While voters may not be enthusiastic, Democratic leaders and major donors are backing Biden and his Vice-President, Kamala Harris. Dean Phillips, a little-known US congressman from Minnesota, announced in October he would mount a long-shot challenge to Biden because he does not believe the president can win another term. Self-help author and speaker Marianne Williamson is also running against Biden. The president’s pitch for a second term rests on his stewardship of the economy as it has emerged from the Covid-19 pandemic, and what he calls the “battle for the soul of America,” a fight against Trump-aligned Republicans. Under Biden, unemployment dropped to generational lows, gross domestic product (GDP) grew faster than expected and wages have risen. However, inflation spiked last year, and, while it has eased in recent months, voters remain concerned about the high price of staples such as food, fuel, cars and housing. Should Trump be the Republican nominee, much of Biden’s campaign is likely to focus on warning voters that Trump poses a mortal threat to American democracy.Who else is running?Robert F Kennedy Jr, scion of the famed American political family and an anti-vaccine activist, has launched an independent bid rather than challenge Biden for the Democratic nomination. Kennedy has shown some appeal among both Republicans and Democrats unenthused about another Biden-Trump matchup.Progressive activist Cornel West has also said he will run as an independent, and former presidential candidate Jill Stein has said she will seek the Green Party’s nomination. The challenge for these candidates will be amassing enough support to land on the ballot in all 50 states next year.When do 2024 primaries start?Republicans will hold their first nominating contest on January 15 with the Iowa caucuses. New Hampshire will hold a presidential primary election a week later, followed by Nevada, South Carolina and Michigan.Democrats plan to hold their first primary in South Carolina in February. “Super Tuesday” — when more than a dozen states will award delegates to the party conventions, including California and Texas — will be on March 5.Each party will nominate the candidate who receives the most delegates at their nominating conventions in the summer of 2024. Republicans will hold their convention in Milwaukee, Wisconsin, while Democrats will stage theirs in Chicago.The general election will be held on November 5, 2024.What are the key issues?The economy: Biden’s White House is trying to reassure Americans that the economy is in solid shape, with inflation slowing and unemployment at its lowest levels in a half-century.Republicans say they will cut federal spending, which they blame for stoking inflation and triggering consumer-price spikes, trim back federal regulations, and lower taxes.Democrats argue the economy is healthy, wages are up and investments in infrastructure are producing long-term job gains. Voters remain unconvinced. A Reuters/Ipsos poll in September found that 27% percent of Biden’s 2020 voters said their finances were “weaker” than they were before the pandemic, compared with 28% who said they were “better” and 42% who said they were “about the same.”Immigration: Since taking office in 2021, Biden has grappled with record numbers of migrants caught illegally crossing the US-Mexico border, straining resources there and in cities they have gone to, such as New York and Chicago. Republican candidates, including Trump, have blamed Biden for reversing more restrictive Trump-era policies, and have pledged to step up border security.Some Democrats have criticised Biden for turning to Trump-style enforcement measures to reduce illegal crossings, while the White House maintains it is moving to a more humane and orderly system by offering new ways for migrants to enter legally.Crime: Violent crime remains at higher levels across the nation than in 2019, the year before the Covid pandemic and unrest over racial justice. Americans of both parties are concerned, with 88% of respondents in a December Reuters/Ipsos poll saying crime would be an important issue for determining who gets their vote.Foreign policy: China has emerged as the foreign policy issue in the campaign, with Republicans arguing the Asian power is a growing threat to national security, US corporate interests and Taiwan’s independence.The Biden administration has said it wants to “de-risk” and not “de-couple” its relationship with China and work to keep the competition between the world’s No 1 and No 2 economic powers from escalating into conflict.Ukraine is another major issue, and has split the Republican field. Trump and DeSantis argue Biden’s support of Ukraine in its war with Russia is distracting the US from preparing for a possible confrontation with China. Other Republican candidates such as Haley say the United States must continue to back Ukraine. A sudden eruption of Israeli-Hamas violence has thrown a polarising new issue into the election campaign. Biden, who is staunchly backing Israel, faces dissent among many Democrats concerned about a growing humanitarian crisis in the Hamas-controlled Gaza Strip. Republicans also back Israel and are using the conflict to press for a stronger US-Mexico border.What are the key states in the 2024 general election?That both parties are holding their conventions in the Midwest says much about the value they are placing on Michigan, Pennsylvania and Wisconsin, all of which went for Trump in 2016 and flipped to Biden in 2020.Arizona, Georgia and Nevada have also proven to be closely divided and contain growing populations that could determine the next election. Another key battleground next year could be North Carolina, a Southern state with an increasingly diverse electorate. — Reuters

Italy reacted grudgingly to a European Union deal on more lenient budget rules for the 20-nation eurozone, but details of the new-look pact show Rome has good reasons for relief and faces only modest pressure to reduce its mammoth public debt.Prime Minister Giorgia Meloni said the new rules — to be effective from 2025 — were better than the old ones but she was disappointed they had not excluded strategic investments from countries’ deficit and debt calculations.“This is a battle we will in any case continue in the future,” she said in a statement issued late on Wednesday, hours after the deal was struck.Economy Minister Giancarlo Giorgetti said the new Stability Pact had “some positive things and some less so”, adding that only time would tell if it would work effectively.The market reaction suggests Italy may be putting a grumpy face on a good deal.The closely-watched gap between Italian and German 10-year bond yields tightened on Thursday to its narrowest since June. Rome’s 10-year BTP yield is set for its biggest one-month drop since 2013, fuelled by hopes of European Central Bank interest rate cuts.Christopher Dembik, senior investment advisor at Pictet AM, said the new pact was “more realistic” on debt reduction and allowed more scope for investments.“This is especially positive for Italy which may face higher scrutiny from investors in the coming months as the debt level keeps increasing and growth is slowing. We believe this pact will help reduce potential pressure on Italian bonds,” he added.Since the previous Stability Pact was suspended in 2020 due to the Covid-19 health crisis, pandemic recovery programmes and an EU drive for spending to keep its climate, industrial policy and security goals on track have inflated national debt levels.The pact’s benchmark requirements of a budget deficit within 3% of gross domestic product and debt no higher than 60% look almost unattainable for many countries, and especially Italy.The euro zone’s third largest economy posted a deficit-to-GDP ratio of 8% last year, bloated by costly tax breaks on energy saving home improvements, and a debt of 141.6%.The deficit is targeted at 5.3% this year and the debt at 140.2%.Rome’s latest economic plan aims to reduce the debt-to-GDP ratio by a negligible 0.6 percentage points between 2023-2026, while the new EU rules prescribe a minimum average annual amount of at least 1 percentage point per year.On the face of it, this should spell trouble for Italy — but the details suggest another story.The 1 point reduction does not apply when a country has a deficit above 3% and is under an EU disciplinary procedure to cut it.Paradoxically, this would allow Rome to benefit from having an excessive deficit, as the European Commission is likely to place it under an infringement procedure next year, according to a Rome government source.Moreover, under the new rules the maximum period granted to countries to cut their deficits is extended to seven years, which is expected to apply to Italy provided it implements its post-Covid recovery plan in a timely fashion.Given the frequency of economic and financial crises, this raises a risk that the consolidation path may constantly be interrupted and never reach the intended finish line.Another boon for Italy is the fact that until 2027, interest payments will be excluded from the deficit cuts required to bring deficits down to 3% of GDP, leaving more money in national governments’ coffers for investment.“The deal gives more breathing space to Italy, at least for the 2025-2027 period,” said Antonio Cesarano, chief global strategist at Intermonte.“For this reason it will be positive for BTPs in a medium term perspective.”

A measure of foreign investment into China fell to the lowest in nearly four years in November, underlining how geopolitical tensions and a slowing economy have combined to convince foreign companies to slow their expansion.New actually utilised foreign capital received by the country was 53.3bn yuan ($7.5bn) last month, down 19.5% from a year earlier, according to Bloomberg calculations based on data published by the Ministry of Commerce on Thursday. That’s the worst number since February 2020, when the Covid-19 pandemic first hit.For the first 11 months of the year, investment fell 10% on year to 1.04tn yuan, the ministry said in a statement.The data adds to signs that foreign investors’ sentiment has weakened this year despite the nation reopening its borders after three years of harsh measures to curb Covid-19 outbreaks. Although some foreign business leaders have returned to the country, few firms are rushing to spend substantially more.“The global macro backdrop — higher dollar interest rates, slowing growth momentum and elevated geopolitical uncertainty — is anything but conducive to cross-border investment, especially into emerging markets,” Bank of America economists led by Ouyang Miao wrote in a report before the data was released.The numbers released on Thursday show a rosier picture than other data, which have pointed to foreign firms actually pulling money out. The difference is at least partly due to how the different data sets account for what companies do with the profits they make in China.Data from the foreign exchange regulator showed foreign investment in the third quarter turned negative for the first time since 1998, likely reflecting less willingness by firms to re-invest profits in China, partly given the higher return abroad due to the yield gap with the US.That data showed that net investment into China has been falling since the third quarter of last year, due to the drop in money coming into the nation and an increase in funds going out.There are some small signs that foreign interest in the Chinese market is recovering. Global funds boosted holdings of yuan-denominated bonds by the most in four months in October as a stabilizing currency helped sentiment.

There was a time when, in the eyes of many, Germany could do no wrong: the economy was strong, unemployment was low, and its strategy of fiscal consolidation was successful. A broad political consensus provided stability, and German society was not beset by deep divisions. As former Chancellor Angela Merkel’s 2017 campaign slogan put it, Germany was “a country in which we live well and happily.”As the year draws to a close, Merkel’s slogan, forgotten even by her own party, comes across as wishful thinking. The prevailing view now is that Germany can no longer get anything – or at least the important things – right. The public’s mood is weary and pessimistic: 46% of Germans believe that they will be worse off in ten years. At the end of 2022, only 28% were hopeful about 2023, the most negative response since 1951.They were right: 2023 turned out to be a dismal year for Germany. The economy has been experiencing a mild but persistent recession, and the prospects for 2024 are equally gloomy. A severe and long-unresolved budget crisis paralysed the federal and state governments, infighting among the three coalition partners is rampant, and many reform efforts are currently stalled or have been abandoned. No wonder Krisenmodus (crisis mode) was the German word of the year.The influential newspaper Frankfurter Allgemeine Zeitung recently devoted a full page to Germany’s biggest problems – 13 in total, many of them self-inflicted. Globalization is both slowing and changing, and few new markets for German goods are emerging, putting pressure on the country’s export-oriented economy. Moreover, investments are too low, capital markets are too weak, and a virulent strain of technophobia has slowed the digitalisation drive.That is just the tip of the iceberg. Germany also suffers from underinvestment in public infrastructure, over-regulation, excessive bureaucracy, and labour shortages. German society must contend with several challenges, including a broken immigration system, expensive housing, some of Europe’s highest energy prices, and underperforming schools.By contrast, the newspaper could identify only three encouraging signs: Germany’s industrial core is likely to benefit from artificial intelligence; the pharmaceutical sector is regaining its former strength; and the Mittelstand – the country’s vital small and medium-size manufacturers – remains relatively resilient and innovative.What went wrong? To be sure, the Covid-19 pandemic, Russian President Vladimir Putin’s war in Ukraine (and the resulting energy crisis), a surge in migration, and conflicts in the Middle East have all contributed to the current situation. But, more importantly, they have revealed how unprepared Germany was for unexpected shocks and shifting geopolitics.Many of these problems have been festering for some time: from economic and energy dependencies to outdated administrative systems and innovation-stifling regulations. But the country’s leadership decided to ignore them, and voters went along, believing that things would work out.While the German downturn has many causes, chief among them is the often-overlooked “liability of success.” What is true for companies is true for countries: good financial performance can lead to complacency. During periods of strong economic growth, governments become overconfident and disregard changing conditions.This liability was exacerbated by the premium German voters place on stable political leadership and maintaining the status quo. Merkel, far from a political visionary, fit Germany like a glove, taking incremental steps rather than pushing for badly needed reforms.The ruling coalition (the Ampelkoalition, or traffic-light coalition, named for the colours of the three governing parties) was formed under the banner of “daring more progress.” But Chancellor Olaf Scholz is neither a visionary nor an effective manager of his conflict-ridden and gaffe-prone government.It has been virtually impossible for the Ampelkoalition to find common ground. The Social Democrats cater to their old and shrinking base with taxpayers’ money; the Greens have a reform vision that is increasingly out of step with public opinion; and the Liberal Democrats repeat their mantras of “no new taxes” and “restraints on public spending” while insisting on the debt brake, the constitutional limit on new borrowing. If the coalition’s policy record during its first two years in power is any indication of what is to come, more Germans should be concerned about their country’s future.Germany seems certain to pay a price for its complacency. Sitting on its laurels for too long left it ill-prepared for today’s world, and the failure of the ruling coalition to take decisive action has only intensified the problem. From a social perspective, the broad consensus that united most Germans has weakened, as strikes and demonstrations become more common.Moreover, the country faces an uncertain political future. The right-wing Alternative für Deutschland (AfD) is polling above 20% nationwide, up from 10% less than two years ago, and will likely become the largest party in several state parliaments next year. In fact, the Ampelkoalition may not survive until the next federal election, scheduled for late 2025. If calls for an early election grow louder, Scholz may seek a grand coalition with the Christian Democrats under Friedrich Merz, the shadow chancellor.If the Ampelkoalition wants to remain in power and improve on its dismal record, Scholz must get better at communicating with the electorate and explaining his government’s policies more clearly and more often. And all three parties must realise that they are damaging their re-election chances by riding their hobby horses while the country flounders.Scholz’s government should try to reach consensus on three critical issues: not introducing any new social programs and limiting spending increases on current programs to the rate of inflation; modernising public administration; and advocating a more flexible approach to public investment, which requires reforming the debt brake. While these changes may not be daring, there can be little progress without them.— Project SyndicateHelmut K Anheier, Professor of Sociology at the Hertie School in Berlin, is Adjunct Professor of Public Policy and Social Welfare at UCLA’s Luskin School of Public Affairs.

The controversial building of a tower to judge the surfing event at the Paris Olympics will go ahead despite the sport’s federation saying it is not required, chief organiser Tony Estanguet said on Wednesday.A proposal made by the International Surf Association (ISA) to Paris 2024 organisers and the Polynesian government suggested the use of “live images shot from land, water and drones” to judge events at Teahupo’o on the French Pacific island of Tahiti.However, Estanguet – president of the Paris 2024 Olympics and Paralympics Organising Committee (Cojo) – dismissed their offer as had Polynesian leader Moetai Brotherson.“We respect the almost unanimous decision taken locally to continue with the launch of the construction work,” he said at his end-of-year press conference at Cojo headquarters. Estanguet, 45, explained the option offered by the ISA had been studied and found wanting.“It was judged to be not feasible on several fronts,” said the three-time canoeing Olympic champion.“On the technical front in terms of filming the images but also surrounding security it poses a lot of questions.”Etienne Thobois, director general of Paris 2024, said it was a matter of urgency to get the work underway.Brotherson has programmed that the work should be finished on the new aluminium tower by May 13, in time for a World Surf League (WSL) event seen as a dress rehearsal for the Olympics.“Five months before the test events, eight months out from the Games themselves it is imperative we take a step forward,” he said.Questions over the tower have been posed since a construction barge used to install a new judges’ tower in the sea broke through part of a colourful coral reef during technical testing in December.Work was subsequently suspended by the Polynesian government with French Sports Minister Amelie Oudea-Castera claiming the test had been “badly prepared”.The issue has had environmentalists up in arms and an online petition against the project has attracted more than 228,000 signatures.Estanguet also took issue with World Athletics president and chief organiser of the 2012 London Games Sebastian Coe’s claim on Monday the tickets for the Games – which run from July 26 to August 11 – are expensive.Coe’s concerns echoed that of many, not just the general public but also those involved in the sporting world, who have criticised the pricing.“We have to accept for all sorts of reasons that Paris will be the most expensive Games both for the international federations but also for the fans,” said Coe.Estanguet, though, hit back claiming they were within the same price range as London and Tokyo in 2021, though, barely any spectators were able to watch events due to Covid-19 restrictions.“Whether it was London or Tokyo more recently, tickets were £20 ($25), which taking into consideration inflation is 27 euros ($30), and the highest price they were £725 so a bit more than 1000 euros in today’s prices,” said Estanguet.More than 7.6 million tickets have already gone on sale for the Paris Games. The cheapest are 24 euros, but others, notably for athletics can cost as much as 990 euros.The largest amount still available are for the football, which takes place in stadiums throughout France.

XLR8, Qatar Science and Technology Park (QSTP)’s 10-week training and mentorship programme, has supported the development of a unique breathing protection apparatus.Five years ago, Dr Geoffrey Hicks, director of Health, Safety, Security and Environment at Qatar Environment and Energy Research Institute (Qeeri), Hamad Bin Khalifa University (HBKU), had an innovative idea to improve breathing protection for cyclists in Qatar. As he pursued the idea and worked on potential solutions, the world was hit by the Covid-19 pandemic.“This is when I realised that personal breathing protection was essential in a much broader sense, and I began digging deeper into the issue of microparticulate air pollution,” Dr Hicks recalled.Research insights and his personal experience with breathing sensitivities causing occasional hospitalisations, prompted Dr Hicks to create the first prototype: a simple, wearable cap with a visor and an air filtration system to protect people from micro particulates, including airborne allergens and pathogens.“The first version we built was similar to a baseball cap, but the trouble was that it was a bit weighted at the front,” he said. While the device utilised a compact air filtration system, understanding ways to improve its design and learning how to reach potential customers was key at this stage of Dr Hicks and his teams’ innovation journey.With this ambition in mind, Dr Hicks and his business partner, engineer Majdi Albaghdadi, who also works at Qeeri, joined Cycle 13 of the XLR8 programme in 2022 where they received mentorship and training to improve the product – ‘RESPO2.’ The training allowed them to refine the business model, build customer traction, and launch the go-to-market strategy.“We essentially went back to the drawing board with XLR8 and received some great feedback and learned a lot. We had the chance to practice our pitch, listen and learn from other participants, self-reflect and also critique constructively,” said Dr Hicks, adding that he appreciated the mentorship from industry leaders, many of whom were successful entrepreneurs.According to Dr Hicks, the insights from the programme led to further enhancements to RESPO2. In comparison to its previous variations, the current version is much lighter so it can be easily worn over cycling helmets. The visor features Z87 polycarbonate, which is 200 times stronger than glass, making it virtually shatterproof, and it now has a hinge system allowing the user to pull up the visor easily. RESPO2 employs High Efficiency Particulate Air (HEPA) filtration to ensure that each breath the user takes is filtered and ultraclean.Mohamed Zebian, program manager – Acceleration at QSTP, said: “In arid regions such as the Middle East, the health challenges around airborne pathogens and dust allergies are persistent. Innovation can play an important role in helping tackle the issue and so we need innovators like Dr Hicks and his team to develop solutions, such as RESPO2 that have potential for real-world impact. However, innovators often lack the experience to make progress as an entrepreneur and this is where our XLR8 programme offers essential guidance.”Cycle 14 of the XLR8 programme will start from December 27, 2023.

Hospital doctors in England begin their longest strike action yet on Wednesday in a move that health bosses fear will pile pressure on services at the busiest time of year.Junior doctors -- those below consultant level -- join picket lines from 0700 GMT to the same time on Saturday in a major escalation of their long-running pay dispute.Six more days of industrial action are planned from January 3.The strike comes at one of the busiest times of the year for the state-funded National Health Service (NHS), as it faces increased pressure from seasonal respiratory illnesses.The strike has drawn criticsm from UK Prime Minister Rishi Sunak and hospital leaders who have described the lengthy walkout as their "worst fears realised"."We would encourage junior doctors to consider carefully the extremely significant impact striking at such a challenging time will have both on the NHS and for individual patients and to return to talks," Sunak said on Tuesday.The British Medical Association (BMA) announced the strike earlier this month after a breakdown in talks with the government.The union said junior doctors have been offered a 3.0-percent rise on top of the average 8.8-percent increase they were given earlier this year.It rejected the offer because the cash would be split unevenly across different doctor grades and would "still amount to pay cuts for many doctors".Health policy is a devolved matter for the administrations in Scotland, Wales and Northern Ireland, with the UK government overseeing England.Junior doctors in Wales are due to walk out for 72 hours from January 15. Those in Northern Ireland are being balloted for potential strike action.Their Scottish counterparts have struck a deal with the government in Edinburgh.The NHS typically sees a rise in the number of people in hospital in the two weeks after Christmas due to people delaying seeking treatment in order to spend the festive season with loved ones.NHS England's national medical director Stephen Powis warned that the strike would cause "huge disruption" and "put the NHS on the back foot" as it enters its most pressurised time of year.The service is already facing huge backlogs in waiting times for appointments and surgery, blamed on treatment postponement during Covid but also years of under-funding.

Managing Director of the Primary Health Care Corporation (PHCC) Dr. Mariam Ali Abdulmalik said that Qatar National Day is an occasion to renew the pledge of allegiance to HH the Amir Sheikh Tamim bin Hamad Al-Thani, and to highlight the efforts of the wise government and its outstanding work to constantly maintain Qatars position at the forefront of nations, advancing confidently towards the future, with the countrys loyal, steadfast, creative and self-confidence people rallying united around Qatars wise leadership.She added that the National Day commemorates the glories of Qatars past, its present achievements, and its promising future prospects of development and prosperity, in light of its peoples accomplishments in various fields locally and internationally.The PHCC Managing Director said that the PHCC, operating under the Ministry of Public Healths umbrella, is an active partner in implementing the National Health Strategies of 2011-2016 and 2018-2022, as well as the Qatar National Vision 2030. Moreover, PHCC is also leading the healthcare systems shift from curative care to preventive care.The PHCC Managing Director explained that following PHCCs celebration of its 10th anniversary last year, 2023 represents the best beginning to a new era of progress and achievement, in a testimony to the Corporations tireless endeavor to advance the healthcare sector in Qatar over the past decade, achieving its vision of being one of the pioneers in transforming the healthcare and well-being of the population of Qatar, and always remaining true to its mission.Commenting on the main features of the Third National Development Strategy within the framework of Qatar National Vision 2030, the PHCC Managing Director Dr. Mariam Ali Abdulmalik said that the PHCCs new institutional strategy plan 2024-2030 will focus on changing the way Primary health care services are provided, in accordance with what is called for by the new Qatar National Health Strategy 2024-2030, as well as the new National Development Strategy of the State of Qatar 2023-2030, which is to focus on population health, and ambitious goals have been set to improve health outcomes and improve quality, and access to services, as well as a focus on sustainability and resilience through an emphasis on preventive healthcare.PHCC is proactively identifying common risk factors and working to reduce them, such as: smoking, obesity, high blood pressure, diabetes, and high cholesterol levels, a process that significantly reduces chronic conditions requiring expensive and long-term medical care, which in turn aids the healthcare sector redirect its resources to other healthcare needs, shaping a more comprehensive, sustainable, and efficient healthcare system.By actively promoting healthy lifestyles and providing access to smoking cessation clinics, wellness and mental health services, early detection services of breast, intestinal, and colon cancer, vaccinations, and public health awareness campaigns, PHCC is empowering individuals to be actively evolved in their health and well-being, which will help prevent the development of serious diseases and chronic conditions, in turn enhancing the health and well-being of the general population.Dr. Mariam Ali Abdulmalik added that the corporation will conclude this year implementing the PHCC Corporate Strategic Plan 2019-2023, under the slogan "A Healthier Future for Our Families." adding that PHCC is about to complete setting its Corporate Strategic Plan for the coming four years, to focus on improving access to health care services, and enhancing the general well-being of society.Despite the public health challenges Qatar faced in recent years due to the COVID-19 pandemic and the countrys diligent medical and safety preparations to host the FIFA World Cup Qatar 2022, Qatar was able to turn these challenges into successful case studies, with the COVID-19 pandemic handled efficiently and effectively up to the moment when the World Health Organization declared the end of the COVID-19 global emergency, as well as Qatars great success in delivering an exceptional and unprecedented World Cup edition.PHCC is keen on continuing to provide excellent and innovative healthcare services via its Health Centers and new digital services, with a constant commitment and allocation of resources to develop its services.PHCC currently employs 7,500 staff members who operate 31 healthcare centers across the country, along with seven wellness facility centers, all serving approximately 1.8 million patients. PHCC services include specialized clinics, family medicine, woman and child health, dentistry, school healthcare services, home care, mental healthcare, in addition to wellness and preventive health services, early detection services for breast and intestinal cancer, and annual smart screening.Aside from PHCCs Health Centers, the corporation also has wellness centers that provide comprehensive wellness services, focusing on promoting health lifestyle and quitting unhealthy ones, equipped with facilities including: gyms, swimming pools, antenatal classrooms, and spas, along with general medicine and specialized clinics.The Primary Health Care Corporation (PHCC) is accredited at a Diamond Level by Accreditation Canada for the third cycle, valid until 2024.The number of registrations in PHCC Health Centers increased by 3.4 percent from 2022, reaching 1,769,075 registered as of November 2023.PHCC Health Centers recorded 3,743,691 visits/consultations in 2023 (until November), 8.5 percent of which were virtual and over the phone consultations, with a monthly average of 374,369 visits/consultations, where family medicine clinic visits constituted the largest portion of total visits/ consultations in 2023 (until November) at 63.1 percent.As of November 2023, PHCC conducted a total of 8,153,836 laboratory procedures and 186,709 diagnostic radiology procedures, in addition to dispensing 6,467,375 different types of medicines, while providing 4,288 home deliveries of medicines.Thanks to its commitment to best healthcare standards and practices, PHCC received the Accreditation Canadas Platinum level for the first time in 2014, to then receive the Diamond level twice in a row, in 2017 and 2021.The Corporation has developed plans to meet the requirements for Accreditation Canadas Diamond level for the fourth cycle scheduled for 2024. In April 2023, a survey was conducted to assess PHCCs current readiness and its compliance with the accreditation standards, in addition to identifying areas of improvement.The PHCC Managing Director Dr. Mariam Ali Abdulmalik added that the PHCC takes pride in receiving another national award and in another field of excellence, when it ranked first among all government institutions and agencies with a compliance rate of 94 percent, in the fifth stage for the years 2020-2021, of the requirements of the Government Excellence Award.The PHCC seeks to establish four new health centers in the future, which are: Nuaija, New Umm Ghuwailina, and New Madinat Khalifa Health Centers in Doha Municipality, and Al Thamid Health Center in the Al Rayyan Municipality, she added.Dr. Abdulmalik explained that the PHCC continues its endeavor to be the first choice and the first and continuous focal point for primary health care recipients in the State of Qatar, through a vision that eyes improving primary health care and wellness services, which are comprehensive, integrated, and affordable. Since its establishment, the PHCC has expanded its network of health centers to 31 centers distributed over three regions: the central region, the western region, and the northern region, located in the city of Doha and the rest of the populated areas throughout the country to provide a diverse range of health, preventive and wellness services, she added.The PHCC Managing Director affirmed that the PHCC's person-centered care approach will enable it to better serve the community, by ensuring that the care provided to patients considers and responds to their individual needs and priorities. Such an approach would also support the Corporation's efforts to identify areas of improvement, address patient-related issues, and enhance the overall patient experience, leading to improved levels of patient satisfaction with the provided health services, and promoting better health outcomes for them, she explained.Dr. Mariam Ali Abdulmalik asserted that the PHCC focuses on comprehensive and integrated care to improve patients access to services in a timely manner, across all levels of healthcare providers, through enhancing coordination and cooperation between the Corporation and Hamad Medical Corporation (HMC) to better attend to the health needs of patients.The Family Medicine model applied in all health centers is a key element in providing integrated and comprehensive care to individuals and families, as the services are provided on the basis of medical history of the service recipient, and within the context of the family and community. It also ensures that better coordinated care services are provided through multidisciplinary teams stationed in health centers close to patients places of residence.