At a time when a truly global effort is required to tackle the coronavirus pandemic, the unseemly spat between the EU and the leading pharmaceutical companies responsible for making the vaccines designed to beat the virus threatens to undermine the global response.
At the heart of the dispute is a growing awareness within the higher echelons of the EU that it has badly mishandled its approach to acquiring a vaccine that would help to inoculate its 448 million citizens from the effects of Covid-19. This is the strategy that highly-respected bodies like the World Health Organisation contend is the best means of ultimately defeating the pandemic.
But when countries like the US and Britain were actively working with key international pharmaceutical manufacturers such as the Pfizer-BioNTech partnership and AstraZeneca, the EU, reportedly responding to pressure from powerful lobby groups, decided to go its own way and back a number of alternative providers. It ordered 300 million doses of the GSK-Sanofi vaccine, and that bet backfired – a major trial setback means what has been billed as a “French” vaccine (GSK is British) won’t be ready until at least the end of 2021.
Accordingly, because of the EU’s clumsy bureaucratic response to the crisis, the bloc now finds itself lagging behind in embarking upon on a mass vaccination project. It now finds itself in the invidious position of not having sufficient quantities of vaccine for its citizens.
The figures speak for themselves. In Britain, for example, the fact that Boris Johnson’s government was able to authorise use of the vaccines developed by Pfizer-BionTech and AstraZeneca means that the UK has, to date, administered 11 doses for every 100 people, including four fifths of those over the age of 80.
By comparison, no EU nation comes close to that. Malta has managed less than half that number, and Denmark around a third. Germany has given just 2.4 doses per 100, the EU average is 2.1 and it’s 1.8 in France. Other member states, such as the Netherlands and Sweden, are lagging further behind.
Now, in an attempt to divert attention away from its own bureaucratic incompetence, the EU has launched what have been dubbed "vaccine wars". On Monday, Bild and Handelsblatt, two leading German newspapers, cited anonymous German officials in reporting that the efficacy of the AstraZeneca vaccine, developed in conjunction with scientists at the University of Oxford, is much lower for the elderly than the company claims. AstraZeneca vehemently denies that to be the case, suspecting that the officials must have misinterpreted the data.
Although the German government has sought to distance itself from the claims, it is suspicious that they came as the EU is locked in a row with the company over the news that it will not be able to supply the bloc with the number of vaccines it originally anticipated. The EU is now threatening to withhold supplies of the Pfizer/BioNtech jab, which is made in Belgium, from Britain on the grounds that AstraZeneca is failing to meet its contractual obligations.
It is curious why officials from a powerful EU member state are so determined to discredit a vaccine that the EU itself seems equally determined to acquire. What is more clear is that, in its public-messaging campaign against AstraZeneca, the EU is now desperately trying to seek a scapegoat for its own missteps as it sought to forge a collective vaccine procurement approach among its member states. That approach, in which Brussels spent weeks haggling over price, resulted in uncertain contracts and production delays.
Moreover, the EU’s fury is clearly linked to an ongoing sense of grievance over Brexit and the UK’s decision to go it alone on vaccination strategy, rather than join the collective European effort. Certainly the EU’s allegation that AstraZeneca is deliberately prioritising the UK and US, which approved the vaccine and signed contracts long before the EU, amounts to little more than sour grapes.
The UK has, to date, administered 11 doses per 100 people; no EU nation comes close
For a start, AstraZeneca is not beholden commercially to either the British or American governments. It is as much a Swedish company as it is a British one, and it is run by a French national, Pascal Soriot. Moreover, it is selling its vaccine at no profit to itself, and has committed to establishing local sources of production around the world as fast as is logistically possible to ensure that the entire globe will benefit from the vaccine breakthrough, and not just a few select western nations.
This is reflected in the fact that 1 billion of the 3bn doses the company plans to supply globally this year are to be produced by the Serum Institute in Pune, near Mumbai, which will help to guarantee supplies to India and other developing markets. That is hardly the conduct of a company that, as some within the EU are claiming, is seeking to prioritise the UK and other favoured western markets over the EU and the developing world.
Moreover, rather than threatening AstraZeneca, the EU should have the decency to accept that the company’s collaboration with academics at Oxford University to produce an effective vaccine in such a short space of time is an outstanding achievement for which Europe as a whole can feel proud.
But while the EU is trying to deflect blame for its own woeful performance, there is increasing disquiet within Europe about its unimpressive response to the vaccine challenge. There have been riots in some member states, such as the Netherlands, where protesters see no realistic hope of an exit from lockdown. The concern now is that this Brussels-made vaccine fiasco will ultimately result in more deaths, a longer lockdown and a deeper recession. And the longer the pandemic continues, the more likely it is that government debt ratios across the bloc will spiral upwards, heightening the risk of a repeat of the 2011 European debt crisis.
Certainly, in terms of assisting the global effort to end the pandemic, the EU’s response can hardly be deemed to have been helpful. In its latest move, the EU is demanding the AstraZeneca prioritise delivery of the vaccine to Europe ahead of Britain, even though the EU has still not officially given the vaccine its approval (a final decision is expected next week) while the British government authorised its use last month, thereby paving the way for its highly successful vaccination programme.
The EU, by its response, therefore threatens to undermine about the only positive development that has so far emerged in Europe from this terrible global pandemic.
Con Coughlin is a defence and foreign affairs columnist for The National
I Care A Lot
Directed by: J Blakeson
Starring: Rosamund Pike, Peter Dinklage
3/5 stars
Countdown to Zero exhibition will show how disease can be beaten
Countdown to Zero: Defeating Disease, an international multimedia exhibition created by the American Museum of National History in collaboration with The Carter Center, will open in Abu Dhabi a month before Reaching the Last Mile.
Opening on October 15 and running until November 15, the free exhibition opens at The Galleria mall on Al Maryah Island, and has already been seen at the Jimmy Carter Presidential Library and Museum in Atlanta, the American Museum of Natural History in New York, and the London School of Hygiene and Tropical Medicine.
KLOPP%20AT%20LIVERPOOL
%3Cp%3EYears%3A%20October%202015%20-%20June%202024%3Cbr%3ETotal%20games%3A%20491%3Cbr%3EWin%20percentage%3A%2060.9%25%3Cbr%3EMajor%20trophies%3A%206%20(Premier%20League%20x%201%2C%20Champions%20League%20x%201%2C%20FA%20Cup%20x%201%2C%20League%20Cup%20x%202%2C%20Fifa%20Club%20World%20Cup%20x1)%3C%2Fp%3E%0A
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
Five personal finance podcasts from The National
To help you get started, tune into these Pocketful of Dirham episodes
·
Balance is essential to happiness, health and wealth
·
What is a portfolio stress test?
·
What are NFTs and why are auction houses interested?
·
How gamers are getting rich by earning cryptocurrencies
·
Should you buy or rent a home in the UAE?
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”