Alstom and Siemens, which make France's high-speed TGV and Germany's ICE trains, announced a tie-up to create a new European rail champion. Jacques Demarthon / AFP
Alstom and Siemens, which make France's high-speed TGV and Germany's ICE trains, announced a tie-up to create a new European rail champion. Jacques Demarthon / AFP

In Europe, big visions are out, big corporations are in



For months, the German elections have been seen as a bump in the road which, once passed, would drive out Europe's listless mood, allowing the youthful president of France, Emmanuel Macron, to revive the lost spirit of integration.

The election has, in fact, turned out to be more of an Alp than a bump. On Sunday, Angela Merkel was re-elected as chancellor for a fourth term, but with a reduced majority and more than 80 members of the Eurosceptic, anti-immigrant Alternative for Germany party in parliament.

She will be busy coalition-building for at least two months and no doubt inward-looking rather than engaged in grand plans.

Mr Macron is fully aware of the hike that Mrs Merkel has to undertake to re-establish herself. But he appears undaunted.

On Tuesday, he gave a 100-minute speech at the Sorbonne University in Paris to set out his vision for a rejuvenated Europe.

Reporters counted no fewer than 23 items on his wish list. The speech was so long that some TV news channels gave up on the live broadcast before the end.

At a time when speakers are told that an audience can remember no more than two things from a speech, this was certainly an act of defiance. Cynics saw the breadth of his vision as a way to hide the fact that what he really wants to achieve – a radically deeper integration of economies that use the euro – has become all but impossible under the likely coalition that Mrs Merkel will have to put together.

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He did say one very resonant phrase, however, and that is that "the sea walls behind which Europe has thrived have gone".

The only way forward, he said, was through a “sovereign” Europe, which sounds like a super-state. But what did he mean?

An answer came the next day with the announcement that the two leading European makers of high-speed trains, Siemens of Germany and Alstom of France, were to merge to create a “new European champion” in the rail industry.

This is no minor development. The two companies have been in fierce competition but now accept that the continent is not big enough for the two rival firms. They have to join forces against what Siemens boss Joe Kaeser called a "dominant player in Asia", a reference to the Chinese giant of high-speed rail, CRRC Corporation.

Officially, the merged company will have equal partnership between Siemens and Alstom and will be based in the Paris region.

In France, however, it is seen as the likely demise of a great industrial champion, a pioneer of the original high-speed TGV train, which has been nurtured and defended by the French state for decades.

Alstom was rescued from bankruptcy by the state in 2004. Last year, the government spent €500 million (Dh2.2 billion) ordering high-speed trains that the railways did not need to prevent a historic factory closing down.

Mr Macron, a former investment banker, has had enough of wasteful national champions and sees the logic of consolidation. By having the French state step aside and allowing the merger, he had ditched decades of industrial policy – or centuries, if you go back to the time of Louis XIV.

For him, this is a down payment on his vision of a sovereign Europe. Unsurprisingly, others see a more parochial issue. Eric Woerth, a former French labour minister, asked: "will the TGV now be German?", a sentiment echoed in newspapers and social media.

In commercial terms, the logic for creating one European champion is clear. China’s CRRC is said to be able to outspend the Europeans by a factor of seven on research and development. A country where you could still see working steam trains in the 1980s now has the world’s largest network of high-speed rail, capable of producing rolling stock faster and more cheaply than Germany and Japan.

Its experience in building railways through China's different climates and landscapes makes it well-prepared to carry out the government's Belt and Road initiative to turn the byways of Central Asia, where Bactrian camels used to tread, into high-speed corridors.

If it comes to fruition, the project will link up Central and South Asia to the Middle East and then all the way to Europe. With much of the high-speed network in China already built, CRRC needs export markets to soak up its spare capacity.

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This is not the first European champion. In the 1960s, European aerospace companies banded together to create Airbus to challenge the dominant US corporations. But at its origin, Airbus was a government-led project with France at its heart.

Today’s national champions are commercial and the logic of the market may slowly throttle the Alstom component.

This is what Mr Macron means when he says “the sea walls behind which Europe has thrived have gone”. At some cost to his domestic popularity, he is showing how he sees the future of Europe.

And what about Germany? Mrs Merkel will first need to settle anxieties in her own party over its poor showing. German taxpayers are not keen on Mr Macron's vision of eurozone integration if it means they are on the hook to bail out less successful countries. Her presumed coalition partners, the Free Democrats, are adamant that any eurozone budget will be symbolic rather than a game-changer.

The chancellor will need to keep the increasingly Eurosceptic governments in Poland and Hungary aligned with the European project, while managing Italy and Spain, the first weakened by rising populism and the second by Catalan separatism.

The problem with European politics is that everywhere, mainstream parties have been weakened by insurgents – now in Germany, which was previously thought immune to the contagion, and, of course, in France, where Mr Macron is, himself, an insurgent. This is a difficult time for politicians to have visions. Maybe it is only the big corporations who can – and indeed must – scan the horizon.

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COMPANY PROFILE
Name: ARDH Collective
Based: Dubai
Founders: Alhaan Ahmed, Alyina Ahmed and Maximo Tettamanzi
Sector: Sustainability
Total funding: Self funded
Number of employees: 4
City's slump

L - Juventus, 2-0
D - C Palace, 2-2
W - N Forest, 3-0
L - Liverpool, 2-0
D - Feyenoord, 3-3
L - Tottenham, 4-0
L - Brighton, 2-1
L - Sporting, 4-1
L - Bournemouth, 2-1
L - Tottenham, 2-1

Jewel of the Expo 2020

252 projectors installed on Al Wasl dome

13.6km of steel used in the structure that makes it equal in length to 16 Burj Khalifas

550 tonnes of moulded steel were raised last year to cap the dome

724,000 cubic metres is the space it encloses

Stands taller than the leaning tower of Pisa

Steel trellis dome is one of the largest single structures on site

The size of 16 tennis courts and weighs as much as 500 elephants

Al Wasl means connection in Arabic

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Expert advice

“Join in with a group like Cycle Safe Dubai or TrainYAS, where you’ll meet like-minded people and always have support on hand.”

Stewart Howison, co-founder of Cycle Safe Dubai and owner of Revolution Cycles

“When you sweat a lot, you lose a lot of salt and other electrolytes from your body. If your electrolytes drop enough, you will be at risk of cramping. To prevent salt deficiency, simply add an electrolyte mix to your water.”

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“Don’t make the mistake of thinking you can ride as fast or as far during the summer as you do in cooler weather. The heat will make you expend more energy to maintain a speed that might normally be comfortable, so pace yourself when riding during the hotter parts of the day.”

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THE BIO

Favourite place to go to in the UAE: The desert sand dunes, just after some rain

Who inspires you: Anybody with new and smart ideas, challenging questions, an open mind and a positive attitude

Where would you like to retire: Most probably in my home country, Hungary, but with frequent returns to the UAE

Favorite book: A book by Transilvanian author, Albert Wass, entitled ‘Sword and Reap’ (Kard es Kasza) - not really known internationally

Favourite subjects in school: Mathematics and science

What is double taxation?
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Stars: Nadine Labaki, Ziad Bakri, Zain Al Rafeea, Riman Al Rafeea

Rating: 2.5/5

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UAE currency: the story behind the money in your pockets
Company%20Profile
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The Bio

Hometown: Bogota, Colombia
Favourite place to relax in UAE: the desert around Al Mleiha in Sharjah or the eastern mangroves in Abu Dhabi
The one book everyone should read: 100 Years of Solitude by Gabriel Garcia Marquez. It will make your mind fly
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COMPANY PROFILE
Name: Almnssa
Started: August 2020
Founder: Areej Selmi
Based: Gaza
Sectors: Internet, e-commerce
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How to protect yourself when air quality drops

Install an air filter in your home.

Close your windows and turn on the AC.

Shower or bath after being outside.

Wear a face mask.

Stay indoors when conditions are particularly poor.

If driving, turn your engine off when stationary.

If you go
Where to stay: Courtyard by Marriott Titusville Kennedy Space Centre has unparalleled views of the Indian River. Alligators can be spotted from hotel room balconies, as can several rocket launch sites. The hotel also boasts cool space-themed decor.

When to go: Florida is best experienced during the winter months, from November to May, before the humidity kicks in.

How to get there: Emirates currently flies from Dubai to Orlando five times a week.
UAE currency: the story behind the money in your pockets
The specs
Engine: 77.4kW all-wheel-drive dual motor
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Director: Sanjay Leela Bhansali

Starring: Ranveer Singh, Deepika Padukone, Shahid Kapoor, Jim Sarbh

3.5/5

A timeline of the Historical Dictionary of the Arabic Language
  • 2018: Formal work begins
  • November 2021: First 17 volumes launched 
  • November 2022: Additional 19 volumes released
  • October 2023: Another 31 volumes released
  • November 2024: All 127 volumes completed
Ticket prices
  • Golden circle - Dh995
  • Floor Standing - Dh495
  • Lower Bowl Platinum - Dh95
  • Lower Bowl premium - Dh795
  • Lower Bowl Plus - Dh695
  • Lower Bowl Standard- Dh595
  • Upper Bowl Premium - Dh395
  • Upper Bowl standard - Dh295
Another way to earn air miles

In addition to the Emirates and Etihad programmes, there is the Air Miles Middle East card, which offers members the ability to choose any airline, has no black-out dates and no restrictions on seat availability. Air Miles is linked up to HSBC credit cards and can also be earned through retail partners such as Spinneys, Sharaf DG and The Toy Store.

An Emirates Dubai-London round-trip ticket costs 180,000 miles on the Air Miles website. But customers earn these ‘miles’ at a much faster rate than airline miles. Adidas offers two air miles per Dh1 spent. Air Miles has partnerships with websites as well, so booking.com and agoda.com offer three miles per Dh1 spent.

“If you use your HSBC credit card when shopping at our partners, you are able to earn Air Miles twice which will mean you can get that flight reward faster and for less spend,” says Paul Lacey, the managing director for Europe, Middle East and India for Aimia, which owns and operates Air Miles Middle East.