Financial Times Europe - 17.08.2019 - 18.08.2019

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2 ★ FTWeekend 17 August/18 August 2019

INTERNATIONAL


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WORLD|


WEEK IN REVIEW|


Argentina’s Macri takes steps to woo
public as peso slides after poll defeat

Argentina’s President Mauricio Macri announced a
number of emergency measures to claw back public
support and stem the peso’s slide after its sharp
devaluation, following hisdefeat in primary elec-
tions.
Mr Macri lost by 15 percentage points to Peronist
rival Alberto Fernández in the poll, a prelude to
October’s presidential elections.
The currency lost a third of its value and the
Argentine stock market suffered huge falls amid
fears of a government bankruptcy.
The measures, which will cost $740m, include a
freeze on petrol prices for 90 days, loans for small
and medium-sized businesses and a floor for income
tax.

Pakistan prime minister Imran Khan denounced
India’s decision to revoke the legal autonomy of
Jammu and Kashmir, the Muslim-majority state.
New Delhi sent tens of thousands of extra troops to
what is already one of the world’s most heavily mili-
tarised areas in an effort to prevent a backlash.
There has also been a telecommunications black-
out while most shops, other businesses and all
schools have been closed. But residents of Kashmir
believe local fury over the changes will eventually
lead to widespread unrest.
On a trip to the Himalayan region to support Kash-
miri self-determination, Mr Khan said Narendra
Modi, his Indian counterpart, had “committed a stra-
tegic blunder — he has played his last card”.

Fears grow of German recession as
economy shrinks in second quarter

Activist Thunberg boards yacht
for climate summit in New York

Greta Thunberg, the 16-year-old Swedish climate
activist, set sail for the US to attend next month’s UN
climate summit in New York.
She is travelling on a racing yacht with a crew
including the nephew of Prince Albert of Monaco,
Pierre Casiraghi, having quit flying for environmen-
tal reasons. “I expect it will be challenging, maybe
seasickness,” she said. “There are people in the world
suffering more than that.”
This summer, the UK and France both adopted
targets to cut carbon emissions to net zero by 2050.
The movement Ms Thunberg inspired continues to
grow, with global climate strikes planned for Sep-
tember 20 and 27.

-















   
Source: Federal Statistics Oice

Quarter on quarter change in GDP ()

Germany’s economy contracted by 0.1 per cent in the
second quarter, adding to recession fears. The figures
triggered more calls for Berlin to ramp up spending
and break its commitment to a balanced budget.

Khan vents anger at India after
it ends Kashmir’s special status

GUY CHAZAN— BERLIN
SEBASTIAN PAYNE— LONDON

The German government thinksttthere ishere is
a “high probability” of a no-deal Brexit
on October 31, since it is “inconceiva-
ble” that UK prime minister Boris John-
son will soften his tough position on the
Irish backstop.
The assessment was made in aleaked
internal finance ministry document
which underlines Berlin’s firm opposi-
tion to any renegotiation of the with-
drawal agreement as demanded by the
new British prime minister.
The document said Mr Johnson was
expected to use this month’s G7 summit

in Biarritzas a “big moment” to
announce either a breakthrough or the
breakdown of talks. Downing Street
sources believeMr Johnson’s first
appearance on the world stage will be
critical to his Brexit strategy. “Against
this backdrop it’s important from an EU
perspective to stick to the line we have
followed up till now,” the paper said.
Mr Johnson has alarmed European
leaders by insisting that the backstop,
aimed at preventing the return of a hard
border on the island of Ireland, must be
scrapped. Unless the EU backs down, he
has said the UK will leave the bloc by
October 31 with or without a deal. The
prime minister has not indicated he
would be willing to accept any tweaks or
a timelimit to the insurance policy.
The fact that Mr Johnson has not vis-
ited any European capitals since becom-
ing prime minister last month is also

being interpreted by many in the EU as a
sign of his determination to steer
towards a no-deal Brexit.
Some MPs in Westminster believe he
is preparing for a blame game where he
will pin responsibility for a no-deal out-
come on the EU.
So far, the EU has insisted it will not
remove the backstop and reopen the
withdrawal agreement negotiated
between the European Commission and
the government of Theresa May.
German finance ministry officials
said that even if the backstop were
removed, as Mr Johnson wants, there
was no certainty the UK parliament
would backa deal, which MPs have
already rejected three times.
The document, whose contents were
first reported by German newspaper
Handelsblatt and confirmed by the FT,
said it was “crucial” that all EU member

states remained united in their support
for the withdrawal agreement and not
“lose their nerve”, even if faced with the
looming prospect of a disorderly Brexit.
The insight intoGermany’s position
came yesterday on the same day that
Sajid Javid, UK chancellor of the excheq-
uer, flew to Berlin for talks with his
counterpart Olaf Scholz. Mr Javid is the
first senior member of the Johnson cabi-
net to hold talks on Brexit with a coun-
terpart from an EU member state.
Mr Scholz later tweeted that the two
had discussed Brexit and “future co-op-
eration”. “The EU27 stands united and is
ready for all scenarios,” he said. “The
best and only way for an orderly with-
drawal is the negotiated #Brexitdeal.”
The finance ministry paper said Ger-
many’s preparations for a no-deal sce-
nario were already “largely completed”.
Letterspage 6,See The Long View

Brexit


Germany believes no-deal highly likely


Leaked notes show Berlin


expects talks to fail unless
UK is flexible on backstop

KADHIM SHUBBER— WASHINGTON

For years, Ghislaine Maxwell’s wherea-
bouts could be pinpointed by her regu-
lar appearances athigh-society parties
and her long-running campaign as an
“ocean citizen” to clean up the seas.
Today, the 57-year-old socialite’s
location is something of a mystery. Ms
Maxwell is underscrutiny as US prose-
cutorsvow to pursueco-conspirators of
Jeffrey Epstein after the money man-
ager died in jail from whatauthorities
called an apparent suicide.
Ms Maxwell is at the centre of the
scandal surrounding Epstein, her
former lover who escaped federal prose-
cution after women came forward alleg-
ing sexual abuse in the mid-2000s but
who was arrested last month on charges
of sex trafficking underage girls.
“She [has] gone into complete hiding
since this stuff broke,” said an acquaint-
ance. Aside from a few limited texts
with close friends, “nobody’s seen or
heard from her”, the person added.
Press reportsplaced her at the Massa-
chusetts home of a tech executive, who
flatly denied the stories, and also at a
Los Angeles burger joint, where the
New York Postsaid she was reading a
book about the “secret lives and deaths
of CIA operatives”.
The events have placed a spotlight on
theworldboth Epstein and Ms Maxwell
inhabited, with contactsincluding US
presidents, British royalty and powerful
businessmen.
Though she has never been accused of
wrongdoing by the authorities, lawyers
for Epstein’svictimsand court filings
from years of litigationportrayed Ms
Maxwell as a key figure in Epstein’s
alleged sex trafficking ring, accusing her
of helping to procure girls for him to
abuse sexually.
Fresh allegationsemerged this month
after an appeals court unsealed more
than a thousand pages of records from a
2015 defamation lawsuit brought
against Ms Maxwell by one of her accus-
ers, Virginia Roberts Giuffre,who sued
after Ms Maxwell claimed she had lied.

The lawsuit was settled in 2017. The
records detailed allegations by Ms
Giuffre that Ms Maxwell had directed
her to have sex with a series of promi-
nent figures in business and politics,
including Prince Andrew, the Duke of
York, who has repeatedly denied the
claims over several years.
And earlier this week Jennifer Araoz,
who said Epstein raped her when she
was 15, sued Ms Maxwell in court in New
York, alleging she “conspired with
Epstein in the implementation and
maintenance of his criminal enter-
prise”. The lawsuitclaimed the heiress
“oversaw the process” by which she was
recruited and groomed.
Ms Maxwell has long denied any
wrongdoing. Her attorneys did not
respond to a request for comment. Ina
2016 deposition unsealed this month,
sheapologised for “banging at the
table”. She said: “It’s borne out of years
of feeling the pressure of this entire lie
[Ms Giuffre] has perpetrated.”
The daughter of Robert Maxwell, the
late disgraced media baron, Ms Maxwell
moved to the US in the 1990s after the

mysterious death of her father on a
yachting trip near the Canary Islands.
Soon afterwards she began an associa-
tion with Epstein that would define her.
The pair were lovers and Ms Maxwell
eventually worked for him, recruiting
staff to work in his mansions and girls to
give him massages, but she has insisted
she did not recruit anyone underage.
The first public allegations against Ms
Maxwell came in the litigation that fol-
lowed the controversial 2007 plea deal
Epstein secured. It allowed him to avoid
federal prosecution and instead serve 13
months injail, much of which he spent
on work release in his private office.
In 2009, Ms Giuffre alleged in a law-
suit against Epstein that Ms Maxwell
had procured underage girls for him and
claimed she had been sexually abused
by both Epstein and Ms Maxwell.
The claims,denied by Ms Maxwell,
did little to impede her social life.She
went on tolaunchnon-profit organisa-
tionTheTerraMar Projectand cam-
paigned to clean up the oceans. By 2016
Ms Maxwell hadlargely disappeared
from the public eye. But a series of

Miami Heraldarticles last year, and
Epstein’s arrest in July, refocused public
attention onher. TerraMar was abruptly
closed last month. And the day before
Epstein was found dead, a judge
released sealed records from Ms Max-
well’s and Ms Giuffre’s lawsuit that
included more claims.
In one deposition, a butler for friends
of Epstein and Ms Maxwell claimed that
in 2005 he had spoken to a 15-year-old
girl who was crying uncontrollably as
she recounted being asked for sex while
on Epstein’s island. “I was threatened by
Ghislaine not to discuss this,” he
recalled her saying.
An affidavit by a woman filed in a sep-
arate case in February claimed she had
visited Epstein’s island in 2006 and seen
many girls, some “young teenagers”,
who had been recruited by Ms Maxwell.
“Once they were there, she appeared
to be in charge of their activities, includ-
ing what they did, who they did it with
and how they were supposed to stay in
line”, the affidavit said.
Additional reporting by Sami Vukelj
Editorial Commentpage 6

US litigation.Sex abuse allegations


Role of Epstein’s former lover under scrutiny


Ghislaine Maxwell is facing


fresh claims surrounding ties


with disgraced late financier


Jeffrey Epstein,
with his arm
around
Ghislaine
Maxwell, with
Donald Trump
and Melania
Knauss, whom
the US president
later married, at
Mar-a-Lago
Club, Palm
Beach, Florida,
in February
2000 — Davidoff
Studios/Getty Images

RICHARD MILNE— OSLO
HENRY FOY— MOSCOW
JAMES POLITI— WASHINGTON

A proposal floated by US president
Donald Trump to purchase Greenland
has been met with a mixture of incre-
dulity and derision, with the self-
governing Danish territory declaring it
was “not for sale”.

“It must be an April Fool’s Day joke,”
Lars Lokke Rasmussen, who was Den-
mark’s prime minister until June,wrote
in a tweetyesterday in response to
reports that Mr Trump had reportedly
raised with his key advisers the prospect
of buying the world’s biggest island.
“Greenland is not for sale, and can’t be
sold,” the island’s government said in a
statement. “But Greenland is ready for
negotiations to enter collaborations
with other countries, including the US.”
Greenland, home to 5 6,000 residents,
depends on Copenhagen for foreign
affairs and national security, while
being geographically part of North
America. It has geopolitical significance
due to its location between North Amer-
ica and Europe, abutting the North Pole.
Ithas significant natural resources

potential, including rare earth metals,
oil and gas.
Mr Trump’s apparent interest in pur-
chasing Greenland was first reported by
TheWall Street Journal newspaper,
which reported that he had floated the
idea at dinner and in other conversa-
tions withaides, including the White
House counsel. The White House
declined to comment.
Arctic experts said the Trump admin-
istration had grown increasingly inter-
ested in the region. “There has been this

awakening about the Arctic — and this
concept of great power competition in
the Arctic — within the administration
over the last six to seven months,” said
Heather Conley of the Center for
Strategic and International Studies, a
think-tank.
News of Mr Trump’s interestcame as
Mette Frederiksen, Denmark’s new,
centre-left premier, prepared to make
herfirst trip to the island this weekend.
There is strong support forindepend-
ence from Denmarkin Greenland itself,

but a sale to the US isseen as a non-
starter.
“Trump buy Greenland?! Hopefully
it’s a joke, but otherwise it is a terrible
thought, with the risk of the militarisa-
tion of Greenland and less independ-
ence for the Greenlandic people —
besides being a great loss to Denmark,”
said Martin Lidegaard, a centre-left
former Danish foreign minister. Aaja
Larsen, one of Greenland’s two MPs in
the Danish parliament, said: “I don’t
think it’s a good idea. I say, ‘No thank
you,’ to Trump.”
For all the gallows humour, Denmark
does have history of selling islands to
the US. In 1916, at the height of the first
world war, the US bought the Danish
West Indies for $25m amid fearsGer-
many might gain control over what
became the US Virgin Islands. The US
has also tried to buy Greenland before,
most recently in 1946 when president
Harry Truman offered $100m.
Mr Trump will travel to Copenhagen
for a state visit next month, when he is
expected to meet Ms Frederiksen and
Kim Kielsen, Greenland’s premier. The
UShas an air base at Thule, inside the
Arctic Circle in the north of Greenland.

Arctic overture


Greenland says it’s ‘not for sale’ as Danes laugh off Trump pitch


Greenland’s natural attractions


GREENLAND

CANADA

ALASKA

UNITED
STATES

RUSSIA


sq km

Oil production
Potential oil
production

Arctic Ocean

Norwegian
Sea

Sources: Wood Mackenzie;
Fugro Robertson; CIA Map: Google Earth

‘It’s
important

from an
EU

perspective
to stick to

the line we
have

followed up
till now’

MAKE A SMART INVESTMENT


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LAJENNIURA NOONAN—FERTHOMPSON —DUBLINLONDON
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Sources: Jane’s Terrorism and Insurgency Centre

Terror attacks in western EuropeHighlighted attackOthers
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ALEX BAGEORGEPSTEFAN WAGSTYLRKERARKER— BRUS—L—SELSONDONBERLIN

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Censors and sensitivityWarning: this article may be upsetting — LIFE & ARTS

HOW TECHNOLOGYD RIVERLESS I S
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153, Monza, 20900, Milan. Tel. +39 039 28288201
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a Stampa S.r.l., Via Michelangelo Buonarroti,
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Barber. Responsible for advertising content, Jon Slade.
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Germany, An der Brucke 20-22, 64546 Morfelden-
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153, Monza, 20900, Milan. Tel. +39 039 28288201
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153, Monza, 20900, Milan. Tel. +39 039 28288201
Owner, The Financial Times Limited; Rappresentante e
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a Stampa S.r.l., Via Michelangelo Buonarroti,

VK.COM/WSNWS

a Stampa S.r.l., Via Michelangelo Buonarroti,
153, Monza, 20900, Milan. Tel. +39 039 28288201

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153, Monza, 20900, Milan. Tel. +39 039 28288201
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Owner, The Financial Times Limited; Rappresentante e
Direttore Responsabile in Italia: I.M.D.Srl-Marco Provasi -

VK.COM/WSNWS

Direttore Responsabile in Italia: I.M.D.Srl-Marco Provasi -
Via G. Puecher, 2 20037 Paderno Dugnano (MI), Italy.

VK.COM/WSNWS

Via G. Puecher, 2 20037 Paderno Dugnano (MI), Italy.
Milano n. 296 del 08/05/08 - Poste Italiane SpA-Sped. in

VK.COM/WSNWS

Milano n. 296 del 08/05/08 - Poste Italiane SpA-Sped. in
Abb.Post.DL. 353/2003 (conv. L. 27/02/2004-n.46) art. 1

VK.COM/WSNWS

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Bermont Impresion, Avenida de Alemania 12, CTC,
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28821, Coslada, Madrid.28821, Coslada, Madrid.VK.COM/WSNWS
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