Financial Times Europe - 20.08.2019

(Ron) #1
2 ★ FINANCIAL TIMES Tuesday20 August 2019

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VICTOR MALLET— PARIS
HENRY FOY— MOSCOW

Emmanuel Macron and Vladimir Putin
have raised the possibility of a new
round of negotiations to try to end the
conflict in eastern Ukraine following
five years of war.
Mr Macron, hosting Mr Putin at the
French presidential retreat of the Fort
de Brégançon on the Mediterranean
coast, said yesterdaythe election of
former comedian Volodymyr Zelensky
as Ukrainian president had given a
chance for resolving the conflict there.
Mr Putin also said he saw cause for

optimism. “In close co-operation with
President Zelensky and Chancellor
[Angela] Merkel we will be considering
the opportunity — it’s what we want — of
a new summit in the Normandy format
in the coming weeks if we can prepare
the way,” Mr Macron said after welcom-
ing Mr Putin.
The four nations involved in the so-
called Normandy format talks are
Ukraine, Russia, Germany and France,
which made progress on Ukraine cease-
fire talks during the 70th anniversary
D-Day celebrations in Normandy in
2014.
The French president also called for a
reshaping of the international order to
deal with numerous crises from the Gulf
to global warming.
Before the meeting, Mr Macron’s
advisers said he wanted to elicit a posi-

tive response from Mr Putin to the call
this month from Mr Zelensky for fresh
peace talks to end the fighting in eastern
Ukraine, where Russian-backed separa-
tists have fought government forces.
Mr Putin said: “Of course, we will talk

about the south-east of Ukraine, the
Donbas. I will inform Mr President
[Macron] about my recent contacts
with the newly elected president of
Ukraine. There are some things that can
be discussed, that provide some cause
for optimism.”

He added: “I really thought, and I still
do, that any meeting, including a Nor-
mandy-format one, should lead to con-
crete results. And in my view, we need to
ensure that what we previously agreed
on, we must certainly ensure and move
towards this goal.”
The French president is risking criti-
cism from human rights activists that he
is welcoming Mr Putinwhen the Rus-
sian government is persecuting political
opponents at home.
But Mr Macron’s advisers say the aim
is to make progress on Ukraine and
other dangerous international conflicts
in the run-up to the G7 summitin Biar-
ritz at the weekend.
French officials accept it will not be
easy to persuade Mr Putin to compro-
mise. It was his annexation of Crimea
from Ukraine five years ago that trig-

gered Russia’s expulsion from what was
then the G8.
Mr Macron also said he wanted to see
the whole international order reshaped,
hinting at an effort to bring Russia in
from the cold in terms of its increasingly
frosty relations with the West.
“Our international order lives
through an absolutely historic moment.
Our multilateralism is under attack,”
Mr Macron said.
“We have to think of constructing a
recomposition of this international
order.That’s my profound conviction,
that’s to say reinventing new forms of
useful relations and actions.That will be
at the heart of the discussions at the G7,
at the heart of our discussions today.
And in this framework the relations
between France and Russia and
between Russia and the EU are crucial.”

Diplomacy


Macron and Putin raise Ukraine hopes


French president calls for


new peace summit and to
bring Russia in from cold

ARTHUR BEESLEY— DUBLIN
When the Catholic Church was in its
prime in Ireland, thousands of priests
trained at Holy CrossCollege in central
Dublin, the city’s major seminary for
more than a century.
Now, the historic building and its
extensive adjoining lands are being sold
in a €95m property deal, as the weak-
ened Church cashes in on a rising real
estate market.
The sale reflects the declining prop-
erty needs of the once-mighty Church,
whoseinfluence has wanedafter
decades of scandal over child abuse by
priests, and a property market that is
still seeing prices increase, albeit at a
slower pace.
The Holy Cross deal is but one among
many. Current sales by Catholic orders
include severalproperties in south Dub-
lin, where values are highest and rising.
The Jesuit order has sought more than
€55m for one prime residential site; the
Carmelite order is in line to receive
€35m for another; the Spiritan congre-
gation has sought more than €20m for a
property; and the Order of St Augustine
is seeking more than €18m for a site.
“Over the past 12 months we have
noticed an increase in the volume of
land being traded by religious orders in
the Irish market,” said Marie Hunt,
executive director at estate agents CBRE
Ireland. “The depth of demand for these
holdingsand pricing being achieved is
likely to encourage other religious
orders to bring additional land parcels
to the market over the course of the next
six months.”
Church bodies havelong ranked
among Ireland’s largestreal estate
owners. But an institution that once
dominated Irish life is today greatly
diminished, with priests, nuns and
brothers ageing and few new entrants to
religious life.Referendums in 2015 to
allowsame-sex marriageand 2018
toallow abortionwere seen as signs that
the Church no longer had the power to
sway political debate.
Property market figures say a further

person familiar with the deal. With
Dublin in the grip of a homelessness cri-
sis, the diocese said thehomes built on
site would include “social, affordable
and private housing”.
Surging prices for houses and apart-
ments have promptedfears of overvalu-
ation, with many young workers priced
out as rents also rise. But some heat has
come out of the market. Official data
show residential property prices rose
nationally by 2 per cent in the year to
June, down from 11.9 per cent in the
same month in 2018.
All of this heralds profound change at
Holy Cross, whose time as a seminary
ended about 20 years ago as the Church
confronted a collapse in the number of
young menjoining the priesthood.
The Dublin diocese has said the pro-
ceeds will be used to reinvest in a “peo-
ple-led pastoral programme” as it
“looks to different forms of ministry in
the coming years”.

HELEN WARRELL AND BETHAN STATON
LONDON

UK business groups have accused
Downing Street of causing disruption
and uncertainty after the government
warned it would immediately halt free-
dom of movement for EU citizens in the
event of a no-deal Brexit.

The prime minister’s spokeswoman
said yesterday that “free movement, as
it currently stands will end on October
31”, if the UK leaves the EU without a
withdrawal agreement, and added that
tougher criminal checks would be
imposed at the border straight away.
The statement signals a distinct
change from Theresa May’s govern-
ment, which had proposed a gradual
transition away from free movement.
This was borne partly of necessity, since
ports and border services would strug-
gle logistically.
However, it is unclear exactly what
the new policy will mean: hours after
the statement, the Home Officereleased
a statementreassuring EU nationals
that they and their families were “wel-
come to stay” in the UK and the dead-
line for applying to the EU settlement
scheme remained December 2020.
Business leaders expressed frustra-
tion at the confused messaging at a time
when companies were already strug-
gling to plan for the impact of no-deal.
“With only weeks to go until October
31, announcing a unilateral end to free-
dom of movement in the event of no-
deal piles further pressure on busi-
nesses,” said Jasmine Whitbread, head
of business lobby London First. “Plan-
ning ahead is impossible when rules of
the game continually change.”
Josh Hardie, deputy director-general
of the CBI industry lobby group, warned
that announcing that existing arrange-
ments might end before a replacement
had been designed, delivered or tested
“will only cause confusion”.
“Now is the time government should
be reducing uncertainty, not adding to it
unnecessarily and hindering no-deal
preparations,” he said, adding that
employers would need at least two years
to adapt to any new system.
Adam Marshall, director-general of
the British Chambers of Commerce
warned that “at a time of critical labour
shortages, UK firms need continued
access to skills at all levels to fill local
shortages when they arise”.
Tej Parikh, chief economist at the
Institute of Directors, expressed dismay
that having been promised a “consulta-
tive approach on future changes to the
immigration system”, sudden altera-
tions were being made so close to the
Brexit deadline.
The Home Office has promised to
publish full details “shortly” of changes
to the previous government’s plans for a
new immigration system. The depart-
ment also confirmed there was no need
for EU nationals to rush to apply for set-
tled status before October 31 since all
those eligible for this would be able to
travel in and out of the UK after free
movement ends.
Axel Antoni, for the3million, which
represents European citizens in the UK,
said the move would “turn legal resi-
dents into unlawful residents over-
night”, as it would be impossible to dis-
tinguish between people who had
arrived after October 31 and those who
had been in the UK beforehand.

Brexit


End of free


movement if


no-deal irks


UK business


Ireland.Scandal-hit institution


Land sales mark Catholic Church’s loss of clout


Some of the proceeds will fund


a state redress scheme for the


victims of clerical child abuse


large-scale multimillion-euro transac-
tions, Sister Liz Murphy, secretary-gen-
eral of the Association of Leaders of Mis-
sionaries& Religious of Ireland — an
umbrella group of 180 congregations —
said many congregations have also qui-
etly gifted property for social housing.
“[The] religious are more than playing
their part in that area,” she said
The sale of Holy Cross to the Gaelic
Athletic Association, Ireland’s biggest
sports organisation, fetched a price of
about €95m for the Catholic archdio-
cese of Dublin, according to two people
familiar with the deal.
“The transaction has been approved
by the Vatican and the charities regula-
tor,” said the archdiocese.
The GAA has entered talks with
Hines, a US commercial property group,
to build up to 1,200 apartments, sports
facilities, a hotel and commercial units
on the site. The sporting body would
receive€105m from Hines, said one

reason why Church bodies are selling
property is to fund donations to a state
redress scheme for former residents of
religious-run institutions who suffered
abuse. The costs of the child abuse
inquiry and redress were estimated at
€1.5bn in 2017 by Ireland’s comptroller
and auditor general, the public spend-
ing watchdog.
Catholic institutions entered a bind-
ing agreement in 2002 to pay €128m to
the state for redress. So far €124.9m has
been received in cash, property and
counselling services, according to the
education ministry. A further
€106.44m has been received under a
2009 voluntary agreement to provide
€353m, a target that was later revised
down to €226m. “A number of proper-
ties that have transferred to the state
have yet to be valued — thus the true
value of completed transfers is higher,”
said a ministry spokesman.
Although attention has centred on the

Holy Cross
College and its
adjoining lands
in Dublin are
being sold in a
€95m deal
Irish Times

‘Thepricing
being

achieved is
likely to

encourage
other

orders to
bring land

parcels to
the market’

‘There are some things


... that provide some
cause for optimism’


Vladimir Putin

AYLA JEAN YACKLEY— ISTANBUL

Turkey has dismissed the elected may-
ors of three predominantly Kurdish cit-
ies, accusing them of supporting ter-
rorism, in what the oppositionbranded
a further blow to the country’s elec-
toral democracy.

The mayors of Diyarbakir, Van and Mar-
din, who together represent about 1.5m
people, were removed from office over
their links to an effort to deliver munici-
pal funds and equipment to the Kurdis-
tan Workers’ party (PKK), Turkey’s
interior ministry saidyesterday.
The ministry accused the three
elected officials, all from the pro-Kurd-
ish People’s Democratic party (HDP), of
crimes including commanding and
belonging to a terror group and propa-
gandising on its behalf. State-appointed
governors willassumethe responsibili-
ties of the mayors, who are: Adnan
Selcuk Mizrakli of Diyarbakir, the
region’s biggest city; Mardin’s Ahmet
Turk; and Bedia Ozgokce Ertan of Van.
Policeyesterday detained more than

400 suspects in separate operations, the
ministry said in a tweet.The HDPsaid
those arrested included city council
members. “This is an affront to democ-
racy, a policy to intimidate and silence
us,” Mr Turk said in a telephone inter-
view. He denied the accusations.
The crackdown comes less than five
months after Mr Turk and the others
were elected. It suggests that President
Recep Tayyip Erdogan will continue to
curtail the opposition after his party lost
seats in the March 31 municipal poll.
Even before March’s election, Mr
Erdogan had threatened to replace may-
ors if voters elected HDP candidates. In
Istanbul, Turkey’s largest city, his party
forced an election rerun after narrowly
losing the mayor’s office to Ekrem Ima-
moglu of the main opposition Republi-
can People’s party (CHP). Mr Imamoglu
won the second votewith a record-set-
ting margin of victory.
In a tweet, Mr Imamoglu said the dis-
missalscontravened democratic princi-
ples. “It is unacceptable to disregard the
will of the people.”

Terrorism claim


Turkey sacks elected mayors


in three Kurdish cities


ALICE WOODHOUSE— HONG KONG

Exports from Japan fell at a slower rate
than forecast in July, marking an im-
provement on the previous month as
shipments to Asia dipped amid global
trade tensions.

Outbound shipments slipped for an
eighth consecutive month, down 1.6 per
cent year on year,said the finance min-
istry yesterday, but slowing from June’s
6.7 per cent fall. Economists polled by
Reuters had forecast a 2.2 per cent dip.
Exports to Asia fell 8.3 per cent year
on year, with Singapore posting the big-
gest drop, down 22.3 per cent. Ship-
ments to China, Japan’s biggest market
in the region, decreased by 9.3 per cent.
The decline in imports also eased to
1.2 per cent in the third consecutive
month of falls. Economists had pointed
to a 2.7 per cent drop.
Japan recorded a trade deficit of
¥249.6bn for the month.
Tensions between Japan and South
Koreaflared in July after Tokyothreat-
enedrigid checks on sales of three

chemicals crucial to South Korean chip
and display makers. The curbs were a
response to adispute over compensa-
tion for South Korean victims of enfor-
ced labour during the second world war.
Exports to South Korea fell 6.9 per
cent in July.
The Japanese economyoutperformed
expectations in the second quarter of
this year, according to data earlier this
month. Japan logged annualised growth
of 1.8 per cent in the three months to
June against the previous quarter.
That pace was achieved despite the
continuing atmosphere of alarm sur-
rounding US-China relations and
Japan’s vulnerability to forces affecting
its exports. Capital spending in particu-
lar proved stronger thanexpected, sug-
gesting that Japanese companies’ labour
shortages had offset the impact of the
global trade tensions.
The Bank of Japan has vowed to
launch a fresh stimulus attemptif eco-
nomic weakness emerges due to theglo-
bal slowdown.
BoJ in a bindsee Markets

Asia


Japan exports decline more


slowly than expected in July


INTERNATIONAL


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THE RISE OF ECO-GLAM

RELEASED


Abb.Post.DL. 353/2003 (conv. L. 27/02/2004-n.46) art. 1

RELEASED


Abb.Post.DL. 353/2003 (conv. L. 27/02/2004-n.46) art. 1
.comma 1, DCB Milano.

RELEASED


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Spain:

RELEASED


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BY

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Direttore Responsabile in Italia: I.M.D.Srl-Marco Provasi -
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Walldorf, +49 6105 327100.

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a Stampa S.r.l., Via Michelangelo Buonarroti,
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VK.COM/WSNWS

153, Monza, 20900, Milan. Tel. +39 039 28288201

VK.COM/WSNWS

153, Monza, 20900, Milan. Tel. +39 039 28288201
Owner, The Financial Times Limited; Rappresentante e

VK.COM/WSNWS

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

Abb.Post.DL. 353/2003 (conv. L. 27/02/2004-n.46) art. 1
.comma 1, DCB Milano.

VK.COM/WSNWS

.comma 1, DCB Milano.
Spain:
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TELEGRAM:

ermont Impresion, Avenida de Alemania 12, CTC,

TELEGRAM:

ermont Impresion, Avenida de Alemania 12, CTC,
28821, Coslada, Madrid.

TELEGRAM:

28821, Coslada, Madrid.

t.me/whatsnws

153, Monza, 20900, Milan. Tel. +39 039 28288201

t.me/whatsnws

153, Monza, 20900, Milan. Tel. +39 039 28288201
Owner, The Financial Times Limited; Rappresentante e

t.me/whatsnws

Owner, The Financial Times Limited; Rappresentante e
Direttore Responsabile in Italia: I.M.D.Srl-Marco Provasi -

t.me/whatsnws

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

t.me/whatsnws

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

t.me/whatsnws

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
t.me/whatsnws

Abb.Post.DL. 353/2003 (conv. L. 27/02/2004-n.46) art. 1
.comma 1, DCB Milano..comma 1, DCB Milano.t.me/whatsnws
ermont Impresion, Avenida de Alemania 12, CTC,ermont Impresion, Avenida de Alemania 12, CTC,t.me/whatsnws
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