Europe's struggles to contain the pandemic are reflected in a lack of consensus between its member states on issues ranging from research to economic rescue package
In France, President Emmanuel Macron has announced that the strict lockdown imposed to tackle Covid-19 is to remain in place for another four weeks. Meanwhile, across the border in Spain – one of the European countries worst-hit by the pandemic – the government has taken the first tentative steps towards easing the lockdown by allowing certain industries, such as construction, to resume work.
It is a similar picture in Italy, another of France's near neighbours, where the authorities have allowed a modest number of shops, such as those selling baby clothes, to reopen as part of measures to ease the strictest lockdown regime seen in Europe.
The European Union seems divided with Emmanuel Macron's France and Angela Merkel's Germany failing to find common strategies. Getty Images
Other countries are taking even bolder steps to revive economic activity, with Denmark leading the way by announcing that schools are to reopen, a move that is seen as an important development in beginning the long process of getting the country back to normal. Germany, the country whose measures to counter the Covid-19 outbreak have proved to be most effective in Europe, plans to ease its lockdown measures next week after Chancellor Angela Merkel ruled that most shops will be allowed to reopen their doors on Monday and millions of pupils will be allowed to go back to school at the beginning of May.
The stark contrast between those countries – such as France – that argue it is premature to ease the lockdown while the daily mortality rate from Covid-19 remains high throughout Europe, and those that believe the economic imperative for easing the restrictions cannot be ignored, indicates a sharp divergence of views among leaders over how best to deal with the biggest crisis the continent has faced since the Second World War.
Denmark is all set to reopen its schools in its bid to return to normalcy. AFP
It also shows that European governments are acting unilaterally, rather than co-ordinating their efforts, in accordance with the wishes of the European Union.
From the outset of the pandemic, the EU has struggled to cope with the enormity of the crisis. For example, the European Commission – the EU's executive branch – has attracted criticism for its failure to provide badly needed medical assistance to the worst-hit countries.
The 27-nation bloc's confused response has already resulted in one high-profile resignation. Professor Mauro Ferrari quit his position as President of the European Research Council last week after becoming frustrated with the bloc's refusal to set up a dedicated research programme into Covid-19.
The European Commission, headed by Ursula von der Leyen, has come under criticism for its handling of the crisis. AFP
In a blistering resignation letter, Prof Ferrari claimed there was “a complete absence of co-ordination of healthcare politics among member states".
Another area where the EU has been found wanting in its response to the crisis has been its attempts to put together a financial support package for member states such as Italy and Spain, which have seen their economies ravaged.
A meeting of EU finance ministers held to discuss setting up a coronavirus rescue package failed to reach agreement when wealthier northern states, led by the Netherlands, refused to back measures to help their less wealthy southern partners unless they agreed to punitive loan terms.
That failure has prompted Italian Prime Minister Giuseppe Conte to warn that the EU is in danger of collapse. "If we do not seize the opportunity to put new life into the European project, the risk of failure is real," Mr Conte warned.
The commission's President Ursula von der Leyen offered a "heartfelt apology" to Italy for not helping at the start of the crisis. But the EU’s shortcomings mean that the organisation now finds itself in the unhappy position of facing a crisis of credibility as the pandemic reaches a critical stage in the continent. For, instead of heeding the EU’s pleas for co-ordination, all the evidence suggests leaders are giving their own domestic concerns priority.
Italian police officers carry out document permit checks and self-certifications against citizens walking down in Torino street, Milan. EPA
A man wearing a protective mask walks in the deserted Piazza Duomo (Cathedral Square), the symbol of the city. EPA
Medical workers stretch a patient from an Italian Red Cross ambulance into an intensive care unit set up in a sports center outside the San Raffaele hospital in Milan. AFP
Members of the Logistics Brigade of the Spanish Army work to convert a Fira pavilion into a shelter center for homeless people in Barcelona. Reuters
Relatives react next to a coffin of a person who died of coronavirus disease (COVID-19) at the crematorium of La Almudena cemetery during partial lockdown to combat the coronavirus disease (COVID-19) outbreak in Madrid, Spain, March 23, 2020. REUTERS/Juan Medina
A woman wears a face mask as she carries a pack of toilet paper in Berlin's Kreuzberg district. AFP
Medical personnel demonstrate taking nose and throat mucous samples for coronavirus testing in Munich, Germany. Getty Images
People walk their dogs in London. Reuters
The deserted escalators inside Leicester Square underground station in central London. AFP
Banners showing support for NHS staff are displayed at Stepping Hill Hospital in Manchester. Reuters
French Gendarmes control a man near the Eiffel tower in Paris. Reuters
Tents with intensive care units installed by French Army are seen at a miitary field hospital near Mulhouse hospital. Reuters
French rescue team wearing protective suits carry a patient on a stretcher from Mulhouse hospital. Reuters
The divergent approach being taken by many countries is certainly not ideal, as it raises the distinct possibility that, due to the lack of co-ordination between different governments, their actions could undermine the international effort against Covid-19. As an advisory note that the EU has recently circulated to member states warns, lack of co-ordination could “unavoidably lead to a corresponding increase in new cases".
The disinclination to act in concert also raises troubling questions about the survival of some of the EU’s fundamental principles, such as the single market, which requires all member states to conduct business on an equal footing.
The fact that some countries are allowing industries such as construction to resume working – as is the case in Spain – whereas other nations – such as France – have banned them during the lockdown, has created disparities that are likely to increase tensions between leaders in the months to come.
Brussels is belatedly trying to assert its authority in terms of co-ordinating the measures to end the lockdown, and is planning to present an EU-wide blueprint for lifting restrictions next week, which will call for national capitals to co-ordinate their exit strategies.
“At a minimum, member states should notify each other and the [European] Commission in due time before they lift measures and take into account their views,” the document is expected to recommend. “It is essential that there is a common approach and operating framework.”
The problem is that this intervention may have come too late as European leaders, dissatisfied with Brussels’ handling of the crisis, opt to take matters into their own hands.
Con Coughlin is the Telegraph’s defence and foreign affairs editor
Our legal consultant
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants
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
Expo 2020 Dubai will be the first World Expo to be held in the Middle East, Africa and South Asia
The world fair will run for six months from October 20, 2020 to April 10, 2021.
It is expected to attract 25 million visits
Some 70 per cent visitors are projected to come from outside the UAE, the largest proportion of international visitors in the 167-year history of World Expos.
More than 30,000 volunteers are required for Expo 2020
The site covers a total of 4.38 sqkm, including a 2 sqkm gated area
It is located adjacent to Al Maktoum International Airport in Dubai South
You can donate to several registered charities through a “donation catalogue”. The use of the donation is quite specific, such as buying a fan for a poor family in Niger for Dh130.
The site has an e-donation service accepting debit card, credit card or e-Dirham, an electronic payment tool developed by the Ministry of Finance and First Abu Dhabi Bank.
You can donate online or order Smiles n’ Stuff products handcrafted by Al Noor students. The centre publishes a wish list of extras needed, starting at Dh500.
Beit Al Khair Society has the motto “From – and to – the UAE,” with donations going towards the neediest in the country. Its website has a list of physical donation sites, but people can also contribute money by SMS, bank transfer and through the hotline 800-22554.
Dar Al Ber Society, which has charity projects in 39 countries, accept cash payments, money transfers or SMS donations. Its donation hotline is 800-79.
Dubai Cares provides several options for individuals and companies to donate, including online, through banks, at retail outlets, via phone and by purchasing Dubai Cares branded merchandise. It is currently running a campaign called Bookings 2030, which allows people to help change the future of six underprivileged children and young people.
Those who travel on Emirates have undoubtedly seen the little donation envelopes in the seat pockets. But the foundation also accepts donations online and in the form of Skywards Miles. Donated miles are used to sponsor travel for doctors, surgeons, engineers and other professionals volunteering on humanitarian missions around the world.
On the Emirates Red Crescent website you can choose between 35 different purposes for your donation, such as providing food for fasters, supporting debtors and contributing to a refugee women fund. It also has a list of bank accounts for each donation type.
Gulf for Good raises funds for partner charity projects through challenges, like climbing Kilimanjaro and cycling through Thailand. This year’s projects are in partnership with Street Child Nepal, Larchfield Kids, the Foundation for African Empowerment and SOS Children's Villages. Since 2001, the organisation has raised more than $3.5 million (Dh12.8m) in support of over 50 children’s charities.
Sheikh Mohammed bin Rashid Al Maktoum launched the Noor Dubai Foundation a decade ago with the aim of eliminating all forms of preventable blindness globally. You can donate Dh50 to support mobile eye camps by texting the word “Noor” to 4565 (Etisalat) or 4849 (du).
Our family matters legal consultant
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
Cultural fiesta
What: The Al Burda Festival
When: November 14 (from 10am)
Where: Warehouse421, Abu Dhabi
The Al Burda Festival is a celebration of Islamic art and culture, featuring talks, performances and exhibitions. Organised by the Ministry of Culture and Knowledge Development, this one-day event opens with a session on the future of Islamic art. With this in mind, it is followed by a number of workshops and “masterclass” sessions in everything from calligraphy and typography to geometry and the origins of Islamic design. There will also be discussions on subjects including ‘Who is the Audience for Islamic Art?’ and ‘New Markets for Islamic Design.’ A live performance from Kuwaiti guitarist Yousif Yaseen should be one of the highlights of the day.
