Financial Times Europe - 09.11.2019 - 10.11.2019

(Tuis.) #1

2 ★ FT Weekend 9 November/10 November 2019


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WORLD|


WEEK IN REVIEW|


Lula da Silva lawyers demand his
immediate release after court ruling

Lawyers for Luiz Inácio Lula da Silva said they were
determined to free the jailed former president
“immediately”after Brazil’s Supreme Court ruled
that defendants can only be jailed after exhausting
all of their appeals.
The decision paves the way for the release of thou-
sands of inmates, including leftist Lula da Silva and
others convicted in cases stemming from the sprawl-
ing “car wash” corruption investigation that h as
ensnared scores of business people and politicians.
Lula da Silva was sentenced last year to 12 years in
prison for corruption, a term that was subsequently
reduced to nine years.
“I will pick you up tomorrow! Wait for me!,”
tweeted Rosângela da Silva, Lula da Silva’s girlfriend.

Germany’s finance minister raised hopes of a break-
through for those seeking to create a eurozone bank-
ing union by ending Berlin’s opposition.
Olaf Scholz warned that failure to integrate the
eurozone’s financial sector would put Europe’s global
position at risk. The plan to centralise oversight of
eurozone banks was conceived seven years ago in
response to the region’s deep sovereign debt crisis.
“The need to deepen and complete European
banking union is undeniable. After years of discus-
sion, the deadlock has to end,” Mr Scholz wrote in an
opinion article for the Financial Times.
The European Central Bank and EU chiefs in Brus-
sels have long urged governments to end political
divisions over further banking union.

Poll finds most Americans feel no
better off financially under Trump

Cyprus ‘golden passport’ failures
lead to 26 losing citizenship

Cyprus said it would strip citizenship from 26 people
after an outcry over alleged abuses of the island’s
“golden passport” scheme for rich foreign investors.
Authorities in Nicosia admitted to past failures in
risk assessments and insisted the system had already
been toughened as they battled to contain a scandal
that has exposed fears about “residence for sale”
schemes across the EU.
In 2015, Cyprus gave a passport to Jho Low, one of
the 26, who is under criminal indictment in the US
over an alleged plot to misappropriate more than
$2.7bn from Malaysia’s 1MDB state investment fund.
Mr Low denies any wrongdoing. About 4,000 people
have gained nationality under the scheme.

Which of the following is the most important reason
for the change in how you are doing financially?


Source: FT-Peterson US Economic Monitor poll of  adults, Oct 

Wages or income level
Amount of personal savings
& investments
Employment status
Size of personal
or family debts
Something else

Value of primary residence
    













Better o Worse o











FT Graphic Billy Ehrenberg-Shannon

Nearly two-thirds of Americans say they are not better
off financially than they were when Donald Trump was
elected, according to a poll conducted by the Financial
Times and the Peter G Peterson Foundation.

Scholz signals end to German doubt
over eurozone banking union

I N T E R N AT I O N A L


DA N I E L D O M B E Y— MADRID

Three years ago Pedro Sánchez signed
on as unemployed after he was ejected
as Spain’s Socialist leader and quit as a
memberofparliament.

What followed was a remarkable politi-
cal comeback, returning to the leader-
ship of his party and subsequently
manoeuvring his way to national power.
“Things moved so fast that a book that
was originally supposed to be about how
he was thrown out of the party ended up
as a book about how he became prime
minister,” said Irene Lozano, who
started collaborating with Mr Sánchez
on memoirs intended to deal with his
first short stint as party leader and is
now one of his ministers.
Mr Sánchez is counting on his charac-
teristics of persistence, appetite for risk
and capacity for reinvention to see him
through Spain’s fourth general election
in four years tomorrow.
But his critics say his decision to trig-
ger the poll is a gamble too far, with the
far-right poised to make big gains and
little prospect that he can pull together a
stable government even if his party
comes first. According to most polls, the

Socialists will win a lower proportion of
the vote than the 29 per cent they
obtained six months ago.
As the campaign has progressed, Mr
Sánchez has appeared under growing
strain, admitting an error in having
made comments that appeared to assert
political authority over Spain’s judici-
ary. And while the far-right Vox party is
poised to make big gains, Mr Sánchez
barely challenged Vox leader Santiago
Abascal in the only leaders’ debate this
week. But having triumphed over his
adversaries in the leadership primaries,
taken power and seen off the radical left

Podemos, which had previously threat-
ened to overtake the Socialists, Mr
Sánchez has an unquestioned grip over
his party.
He has a more international profile
than previous Spanish prime ministers.
He speaks English and French and
worked in New York, Brussels and Sara-
jevo in the 1990s. He came from almost
nowhere to win the Socialist leadership
in 2014 as the party tried to pull itself
together following a devastating elec-
toral defeat.
Ousted in 2016 after a dispute over
whether to oppose the formation of a
centre-right government at a time of
political deadlock, Mr Sánchez toured
the country in his car and regained the
leadership, channelling activists’ fury at
what many saw as a sellout to the right.
Last year he took power at the head of
a minority government after securing
the backing of far-left and separatist
parties in a vote of confidence that
ejected the then centre-right adminis-
tration. But he has been unable to form
a stable government despite increasing
the Socialists’ ranks in the last election
in April.
Since then, Mr Sánchez has shifted

ground from offering a coalition deal to
Podemos in July — which the far-left
grouping initially rejected — to declar-
ing in September that such a govern-
ment would keep him awake at night.
“I don’t think he is a person of strong
ideological convictions,” said Lucía
Méndez, a leading Spanish journalist
who has known Mr Sánchez since 2012,
when they taught at the same univer-
sity. “But then you cannot have a very
clear political project if you have to
spend all day walking on a tightrope.”
According to most polls, the Socialists
will still come first tomorrow while the
main opposition People’s party will
improve on its dire result in the last elec-
tion and Ciudadanos, the closest Spain
has to a liberal party, will suffer a col-
lapse in its support.
Vox is set to be one of the big victors,
benefiting from a backlash elsewhere in
Spain to pro-independence protests in
Catalonia. According to the polls, it
could win between 12 and 15 per cent of
the vote, making it the third biggest
party in parliament.
Such an outcome could leave a gov-
erning majority beyond the reach of any
coalition of left or right.

Socialist party


Sánchez bets on appetite for risk to foil rivals in Spanish poll


Pedro Sánchez: critics say triggering
the election is a gamble too far

G U Y C H A Z A N A N D VA L E R I E H O P K I N S
BERLIN
M I C H A E L P E E L— BRUSSELS
Ursula von der Leyen, the European
Commission’s incoming president, has
come out in support of accession talks
with West Balkan countries, in a move
defying French president Emmanuel
Macron’s fierce opposition to enlarging
the bloc.
Speaking in Berlin yesterday, Ms von
der Leyen said Europe had “asked a lot
of North Macedonia and Albania [and]
they’ve fulfilled it all”, adding: “Now we

must be true to our word and start
accession talks.”
The former German defence minister,
whose nomination for the commission
was pushed by Mr Macron, said it was in
the EU’s interest to offer the West Bal-
kans a European perspective. If it failed
to do so, “others will fill the gap — China,
or Russia, Turkey or Saudi Arabia”, she
warned. She offered strong words of
support for Nato, which Mr Macron
described as suffering “brain death” in
an interview this week.
“I think that despite all the bumps in
the road, Nato has proven itself to be a
wonderful shield of freedom,” Ms von
der Leyen said. “The history of Europe
can’t be told without Nato.”
Mr Macron was the only EU leader to

block accession talks for North Macedo-
nia last month at an EU summit. He ral-
lied a small group of states including the
Netherlands and Denmark to oppose
Albania negotiating to join the bloc.
In an interview with The Economist
released on Thursday, the French presi-
dent said the bloc needed first to reform
its membership procedures, which he
said were “no longer fit for purpose”.
“I don’t want any further new mem-
bers until we’ve reformed the European
Union itself,” he said in the interview.
“In my opinion that’s an honest, and
indispensable, prerequisite.”
Mr Macron’s public comments about
Nato and the Balkans have caused
dismay in Berlin. Chancellor Angela
Merkel has criticised the French leader’s

“drastic words” against the transatlantic
alliance, adding: “That is not my view of
co-operation inside Nato.”
Speaking after meeting Ms von der
Leyen yesterday, Ms Merkel reiterated
her support for accession talks, saying
she considered it “extremely important,
for strategic European interests, that
these countries don’t lose hope of one
day being able to join the EU”.
Enlargement into the West Balkans
would help the bloc tackle the issue of
migration, one of the key topics facing
Ms von der Leyen’s European Commis-
sion, Ms Merkel added.
In her speech, Ms von der Leyen said
the EU heads of government had held
out the prospect of membership to the
West Balkans as long ago as in 2003.

European bloc


Von der Leyen backs Balkan accession talks


Incoming commission


chief at odds with Macron
over EU enlargement

G U Y C H A Z A N— BERLIN

Thirty years ago, Annemarie Reffert got
into her car and drove west. Within a
couple of hours, she had crossed into
another world — and made history.
That evening the Berlin Wall came
down and the cold war ended. Ms Ref-
fert became the first East German citi-
zen to take advantage of the new free-
dom of movement and cross the border
from east to west.
It was a night of euphoria, but also
fear and foreboding. Driving to the
frontier on eerily empty roads, Ms Ref-
fert passed the sign reading “Last turn-
ing for citizens of the GDR” and felt a
moment of panic. Her heart, she
said, “was in my trouser pocket”.
Her daughter, Juliane, who was with
her, suddenly said: “Mum, what hap-
pens if they don’t let us back in?” “I
really got shit scared then, and wanted
to just turn round and go back.”
Germany this week marks the 30th
anniversary of one of the most momen-
tous events in its history, the night tens
of thousands of ordinary people brought
down the wall that had divided their
country for 28 years. Images of jubilant
Berliners strolling through the
Brandenburg Gate, embracing border
guards and weeping with joy were
beamed around the world. In less than a
year, Germany was reunified.
The tumultuous events of that
evening were triggered by a slip of the
tongue. Shortly before 7pm on Novem-
ber 9 1989, politburo member Günter
Schabowski unveiled new travel rules
for East German citizens, allowing them
to apply for visas to leave the country.
Asked when they would come into
force, he mistakenly said: “immedi-
ately, without delay”. Minutes later, at
19:05, Associated Press flashed the
headline: “GDR opens its borders”. In
the hours that ensued, massed ranks of
citizens converged on their nearest bor-
der crossing and insisted on free passage
to the west. Border guards had little
choice but to wave them through.
Ms Reffert, a retired consultant
anaesthetist who is now 76, heard the
reports. “I said I’d like to check that out,

ceed.” Ms Reffert said at this point she
felt real fear. The wait at the last control
point “felt like an eternity”. “I thought,
‘what happens now? Will they arrest
you here? Or send you back?’” The bor-
der guards told the pair to drive on.
After arriving in the west they were
besieged by camera crews. Asked by
reporters what they planned to do in the
land of freedom, Ms Reffert said “buy a
can of beer”. Her husband had asked for
one as proof they had made it across.
The camera crews thought she and her
daughter would want to stay, like the
thousands of refugees who had fled the
German Democratic Republic in the pre-
vious months via Hungary and Czecho-
slovakia. But in TV footage from that
evening, she said she would only come
for a flying visit. “You have a completely
different society,” she said. Anyway, she
added, “I have operations to perform
tomorrow; I need to be in theatre at 8am.”
Meanwhile, the only beer she could
find cost about two Deutschmarks a can
—an exorbitant sum for East Germans,
with their near worthless, non-converti-
ble Ostmarks. She left empty-handed.

Fall of Berlin Wall.30th anniversary


Fear and freedom of first crossing to west


Citizen of former German


Democratic Republic recalls


her brief visit over the border


I don’t believe it,” she said. So she and
her daughter took off from their home
in Gommern, a small town south-west
of Berlin that was about 70km away
from the inner-German border and the
parallel universe of West Germany.
At the first of many border check-
points, Ms Reffert told the guard what
Schabowski had announced to the
world. “It was the first he’d heard of it,
but there were more checks to come, so
as far as he was concerned we could pro-

Making history:
Annemarie
Reffert, above,
and, below, with
daughter Juliane
at the border
in 1989
Jan Zappner;
Jochen Lübke/dpa

In the end they spent just 15 minutes
in the west. The border guard on the
east side was puzzled, Ms Reffert
recalled. He said: “You say you’re com-
ing back in. But what were you doing
over there anyway?” In Berlin, a night of
jubilation lay ahead. But the Refferts
were home by 10.30pm.
Unlike tens of thousands of her com-
patriots, Ms Reffert never moved to the
west. But she welcomed reunification
and revelled in the freedoms it bestowed,
particularly the ability to travel. She was
promoted to chief physician, a title she
was denied in the GDR because she
refused to join the Communist party.
However, her husband’s firm was taken
over by a west German company and
later closed. For the next two years he
was unemployed.
Ms Reffert recalled going to work at the
hospital the day after her visit: all talk
was of the dramatic scenes from the night
before. “They were all saying, ‘the bor-
der’s open! We’ve got to apply for a visa!’
and I said — ‘I’ve already been there’,”
she said. “They all said: ‘Trust you!’”
Editorial Commentpage 8

‘[Europe
has] asked a

lot of North
Macedonia

and Albania
and they’ve

fulfilled
it all’

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