A few days ago, in these pages, I predicted that the ongoing debt ceiling crisis would reveal US President Joe Biden to be finally out of his depths or have unexpected depths of sophistication. Or, I added, a jerryrigged agreement could simply postpone a day of reckoning.
The first scenario has been avoided as Mr Biden has neatly escaped a dangerous trap. The emerging solution appears to be a combination of scenarios two and three: a familiar deal that vindicates several of the President’s defining strategies.
On Saturday night, Mr Biden and Kevin McCarthy, the Republican Speaker of the House of Representatives, announced an agreement to extend the debt ceiling for two years in exchange for strikingly narrow spending cuts and caps.
Many significant details are not yet known, but the broad outlines are clear. The White House and the House of Representatives have done a fairly standard deal, at least when Democrats hold the presidency. Republican presidents ask for, and receive, unconditional debt ceiling expansions, which allow the Treasury Department to borrow money to pay for debts already incurred by Congress.
Biden had no white rabbit to pull out of his hat, no brilliant and unanticipated gimmick
However, a pattern has emerged whereby Republicans do not extend this courtesy to Democratic presidents. Republicans suddenly remember that they are supposed to be alarmed at national budget deficits and debts, no matter whether they are becoming a greater or lesser percentage of GDP.
Many Democrats were petrified that Mr Biden, negotiating almost entirely in secret and apparently on Republican terms, was poised to cheerfully give up far too much to avoid a massive crisis. Yet this does not appear to have happened.
The actual cuts in spending are extremely limited, and even the caps to spending increases seem to hew reasonably well to major White House goals developed under the last Congress. Republicans gained a symbolic sop – at least in terms of national expenditure, although undoubtedly with alarming significance for many individuals and families – with some potential restrictions on nutritional and other support for poor people and, more importantly, new work requirements on “able-bodied” individuals without dependents.
Savings will be decidedly modest. For Republicans, it's a matter of principle. And while few Democrats are going to be happy about these changes, even fewer will be kept up at night. It was a big win for one side, in their own eyes, and not much of a loss for most people on the other side.
The numbers are not going to be huge. For Republicans, it's a matter of principle. And while few Democrats are going to be happy about these changes, even fewer are going to be kept up at night. It was a big win for one side, in their own eyes, and not that much of a loss for most people on the other side.
On the other hand, Mr Biden appears to have protected much of the most important spending he was able to secure in the first two years after his election. Total spending cutbacks over 10 years under these terms may be limited to a mere $650 billion.
Mr Biden had no white rabbit to pull out of his hat, no brilliant and unanticipated gimmick, or unexpected genius solution. As is so often the case with the wily old fox, the President's superpower is his normality, transparency and predictability. While he disingenuously insisted he would never negotiate over budget issues with the debt ceiling being effectively held hostage – though of course that's exactly what he did – from the onset he stressed the two biggest themes of his presidency: bipartisan compromise and political patience.
This approach and rhetoric have consistently infuriated many progressive Democrats. But it has just as consistently worked. It is exactly what secured the huge pandemic bailout which began his term. And the hard infrastructure act. And the high-tech investment act. And the social spending and climate change bill. And more besides. Very little of that appears meaningfully threatened, indeed it would be more accurate to say it largely has been protected, by the terms of this agreement.
In effect, Mr Biden has again delivered what he said he would, in exactly the way he said he would do it, despite numerous doubts, including my own, particularly as the witching hour approached. The Treasury Department, by the way, has cited next Wednesday as the first day a potential default might begin. Presumably, it's ready to come up with a few last-ditch workarounds to buy extra time to test the legislative viability of the agreement.
And here's where Mr Biden truly got the better of Mr McCarthy.
Both leaders now must sell a compromise agreement that no one is going to be happy with to members of Congress on both sides, including the Democratic progressive-left and Republican hard-right. While their tasks may be roughly similar, the obstacles and consequences for failure each will face are radically different.
The murmurs of unease among progressives is extremely muted compared to categorical opposition already emanating from right-wing conservatives. It may not be simple or comfortable for the President to get his House ducklings in a row, but it just may not be possible for the House Speaker.
And now the political calculation has completely flipped. Before this agreement, there was every reason to suspect the sitting president would face most of the blame for any financial calamity. But if the Republican House Speaker makes a solemn agreement with the President to save the economy, and that is sabotaged by his own extremist faction, they, and he, will be left holding the bag essentially alone.
Unless Democrats make the unimaginable blunder of opposing the agreement in sufficient numbers to create a real obstacle to passage, which seems highly unlikely, this has now become an internal Republican problem and probably a crisis. There will be members of the extreme right who will tell Mr McCarthy they didn't support him for Speaker so that he could release the only real "bargaining chip" hostage they have for such limited restrictions. It will be very surprising not to start hearing hyperbolic fulminating about betrayal, treason and a war against the country’s fiscal sanity and financial future.
In the old Roadrunner cartoons, the hapless predator Wile E Coyote – a self-declared "super-genius" – produces one apparently ingenious trap after another, only, in horror, to find himself holding the bomb just as it is about to explode. In the coming days, the House Speaker may discover he, too, is unexpectedly in possession of a round, black, hissing object that his vanished opponent has surreptitiously managed to hand back to him.
SERIE A FIXTURES
Saturday
AC Milan v Sampdoria (2.30pm kick-off UAE)
Atalanta v Udinese (5pm)
Benevento v Parma (5pm)
Cagliari v Hellas Verona (5pm)
Genoa v Fiorentina (5pm)
Lazio v Spezia (5pm)
Napoli v Crotone (5pm)
Sassuolo v Roma (5pm)
Torino v Juventus (8pm)
Bologna v Inter Milan (10.45pm)
Ten tax points to be aware of in 2026
1. Domestic VAT refund amendments: request your refund within five years
If a business does not apply for the refund on time, they lose their credit.
2. E-invoicing in the UAE
Businesses should continue preparing for the implementation of e-invoicing in the UAE, with 2026 a preparation and transition period ahead of phased mandatory adoption.
3. More tax audits
Tax authorities are increasingly using data already available across multiple filings to identify audit risks.
4. More beneficial VAT and excise tax penalty regime
Tax disputes are expected to become more frequent and more structured, with clearer administrative objection and appeal processes. The UAE has adopted a new penalty regime for VAT and excise disputes, which now mirrors the penalty regime for corporate tax.
5. Greater emphasis on statutory audit
There is a greater need for the accuracy of financial statements. The International Financial Reporting Standards standards need to be strictly adhered to and, as a result, the quality of the audits will need to increase.
6. Further transfer pricing enforcement
Transfer pricing enforcement, which refers to the practice of establishing prices for internal transactions between related entities, is expected to broaden in scope. The UAE will shortly open the possibility to negotiate advance pricing agreements, or essentially rulings for transfer pricing purposes.
7. Limited time periods for audits
Recent amendments also introduce a default five-year limitation period for tax audits and assessments, subject to specific statutory exceptions. While the standard audit and assessment period is five years, this may be extended to up to 15 years in cases involving fraud or tax evasion.
8. Pillar 2 implementation
Many multinational groups will begin to feel the practical effect of the Domestic Minimum Top-Up Tax (DMTT), the UAE's implementation of the OECD’s global minimum tax under Pillar 2. While the rules apply for financial years starting on or after January 1, 2025, it is 2026 that marks the transition to an operational phase.
9. Reduced compliance obligations for imported goods and services
Businesses that apply the reverse-charge mechanism for VAT purposes in the UAE may benefit from reduced compliance obligations.
10. Substance and CbC reporting focus
Tax authorities are expected to continue strengthening the enforcement of economic substance and Country-by-Country (CbC) reporting frameworks. In the UAE, these regimes are increasingly being used as risk-assessment tools, providing tax authorities with a comprehensive view of multinational groups’ global footprints and enabling them to assess whether profits are aligned with real economic activity.
Contributed by Thomas Vanhee and Hend Rashwan, Aurifer
The Old Slave and the Mastiff
Patrick Chamoiseau
Translated from the French and Creole by Linda Coverdale
Benefits of first-time home buyers' scheme
- Priority access to new homes from participating developers
- Discounts on sales price of off-plan units
- Flexible payment plans from developers
- Mortgages with better interest rates, faster approval times and reduced fees
- DLD registration fee can be paid through banks or credit cards at zero interest rates
Terror attacks in Paris, November 13, 2015
- At 9.16pm, three suicide attackers killed one person outside the Atade de France during a foootball match between France and Germany
- At 9.25pm, three attackers opened fire on restaurants and cafes over 20 minutes, killing 39 people
- Shortly after 9.40pm, three other attackers launched a three-hour raid on the Bataclan, in which 1,500 people had gathered to watch a rock concert. In total, 90 people were killed
- Salah Abdeslam, the only survivor of the terrorists, did not directly participate in the attacks, thought to be due to a technical glitch in his suicide vest
- He fled to Belgium and was involved in attacks on Brussels in March 2016. He is serving a life sentence in France
Ticket prices
General admission Dh295 (under-three free)
Buy a four-person Family & Friends ticket and pay for only three tickets, so the fourth family member is free
Buy tickets at: wbworldabudhabi.com/en/tickets
ABU%20DHABI%20CARD
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The specs: 2018 Chevrolet Trailblazer
Price, base / as tested Dh99,000 / Dh132,000
Engine 3.6L V6
Transmission: Six-speed automatic
Power 275hp @ 6,000rpm
Torque 350Nm @ 3,700rpm
Fuel economy combined 12.2L / 100km
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Company%C2%A0profile
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The specs
Engine 60kwh FWD
Battery Rimac 120kwh Lithium Nickel Manganese Cobalt Oxide (LiNiMnCoO2) chemistry
Power 204hp Torque 360Nm
Price, base / as tested Dh174,500
US%20federal%20gun%20reform%20since%20Sandy%20Hook
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Global institutions: BlackRock and KKR
US-based BlackRock is the world's largest asset manager, with $5.98 trillion of assets under management as of the end of last year. The New York firm run by Larry Fink provides investment management services to institutional clients and retail investors including governments, sovereign wealth funds, corporations, banks and charitable foundations around the world, through a variety of investment vehicles.
KKR & Co, or Kohlberg Kravis Roberts, is a global private equity and investment firm with around $195 billion of assets as of the end of last year. The New York-based firm, founded by Henry Kravis and George Roberts, invests in multiple alternative asset classes through direct or fund-to-fund investments with a particular focus on infrastructure, technology, healthcare, real estate and energy.
LA LIGA FIXTURES
Friday Athletic Bilbao v Celta Vigo (Kick-off midnight UAE)
Saturday Levante v Getafe (5pm), Sevilla v Real Madrid (7.15pm), Atletico Madrid v Real Valladolid (9.30pm), Cadiz v Barcelona (midnight)
Sunday Granada v Huesca (5pm), Osasuna v Real Betis (7.15pm), Villarreal v Elche (9.30pm), Alaves v Real Sociedad (midnight)
Monday Eibar v Valencia (midnight)
SPEC%20SHEET
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Wicked: For Good
Director: Jon M Chu
Starring: Ariana Grande, Cynthia Erivo, Jonathan Bailey, Jeff Goldblum, Michelle Yeoh, Ethan Slater
Rating: 4/5
More from Neighbourhood Watch:
Five expert hiking tips
Always check the weather forecast before setting off
Make sure you have plenty of water
Set off early to avoid sudden weather changes in the afternoon
Wear appropriate clothing and footwear
Take your litter home with you
READ MORE ABOUT CORONAVIRUS
How to turn your property into a holiday home
- Ensure decoration and styling – and portal photography – quality is high to achieve maximum rates.
- Research equivalent Airbnb homes in your location to ensure competitiveness.
- Post on all relevant platforms to reach the widest audience; whether you let personally or via an agency know your potential guest profile – aiming for the wrong demographic may leave your property empty.
- Factor in costs when working out if holiday letting is beneficial. The annual DCTM fee runs from Dh370 for a one-bedroom flat to Dh1,200. Tourism tax is Dh10-15 per bedroom, per night.
- Check your management company has a physical office, a valid DTCM licence and is licencing your property and paying tourism taxes. For transparency, regularly view your booking calendar.
SPECS
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The%20specs
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COMPANY%20PROFILE
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Pathaan
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If you go
Flights
Emirates flies from Dubai to Phnom Penh with a stop in Yangon from Dh3,075, and Etihad flies from Abu Dhabi to Phnom Penh with its partner Bangkok Airlines from Dh2,763. These trips take about nine hours each and both include taxes. From there, a road transfer takes at least four hours; airlines including KC Airlines (www.kcairlines.com) offer quick connecting flights from Phnom Penh to Sihanoukville from about $100 (Dh367) return including taxes. Air Asia, Malindo Air and Malaysian Airlines fly direct from Kuala Lumpur to Sihanoukville from $54 each way. Next year, direct flights are due to launch between Bangkok and Sihanoukville, which will cut the journey time by a third.
The stay
Rooms at Alila Villas Koh Russey (www.alilahotels.com/ kohrussey) cost from $385 per night including taxes.
THE LIGHT
Director: Tom Tykwer
Starring: Tala Al Deen, Nicolette Krebitz, Lars Eidinger
Rating: 3/5
Specs
Engine: 2-litre
Transmission: Eight-speed automatic
Power: 255hp
Torque: 273Nm
Price: Dh240,000
Dust and sand storms compared
Sand storm
- Particle size: Larger, heavier sand grains
- Visibility: Often dramatic with thick "walls" of sand
- Duration: Short-lived, typically localised
- Travel distance: Limited
- Source: Open desert areas with strong winds
Dust storm
- Particle size: Much finer, lightweight particles
- Visibility: Hazy skies but less intense
- Duration: Can linger for days
- Travel distance: Long-range, up to thousands of kilometres
- Source: Can be carried from distant regions
Jetour T1 specs
Engine: 2-litre turbocharged
Power: 254hp
Torque: 390Nm
Price: From Dh126,000
Available: Now
SPECS
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