Saturday, Jan 28, 2012
Gulf News
The sun came out for the first time on the fourth day of the World Economic Forum. The looming clouds lifted, and the past few days’ monochrome white and black of the mist-covered woods on the slopes above Davos cleared to reveal miles of sparkling white snow and dark green pine trees. The tops of the mountains are now visible as the helicopters buzz to and fro carrying the world’s leaders to the Forum.
On the ground, trudging along paths between snow drifts almost a meter high, the pedestrians have a new problem as the sun has started to warm the thick snow hanging on the branches of trees and the roofs of the houses, causing vast lumps to fall at any minute. Some shops and businesses have spotted this serious hazard for the unsuspecting passer-by, and have sent workers up to clear the waist high snow deposits on the tops of the roofs.
Of course, the brilliant sun will bring its own problems if the sharp cold returns and freezes the melting snow, making it very treacherous underfoot as we scurry from the Congress Centre to meetings in nearby buildings. Boots or spiked galoshes will become all the more essential.
Euro
There is an emerging consensus at Davos that the crisis over the euro will find a solution, which is reassuring the assembled business community even if they are furious about the chaotic lack of clear leadership. They are anxious to see some kind of resolution even if that includes the expulsion of Greece from the inner core, since they will then be able to make their plans and get on with business.
It was a curious sight yesterday to see the UK Prime Minister David Cameron offering German Chancellor Angela Merkel all his support in building a strong European Central Bank, while at the same time being very clear that he would never take the UK into the euro.
But this willingness to work together may be what will bring the euro confusion to an end. Cameron’s Conservative government is not against the existence of the euro, but does not want to be part of it. However, if anything is going to work, a lot more money will be needed, and Angela Merkel’s speech on the first day seemed to rule Germany out as the source. Almost certainly they will need to offer more, probably as part of a new deal with the IMF.
The hints that Gulf sovereign wealth funds might come directly to the rescue seem unlikely: it is all too easy to imagine the headlines as Germany forces new austerity on the fringe members of the euro, but to do that at the bidding of the Gulf Arabs would add another layer of popular distress.
Palestine
Salam Fayyad, Palestinian Prime Minister and Shimon Peres, President of Israel, gave a stiff and fairly well-choreographed re-statement of their governments’ entrenched views. But in the face of Peres’ arrogant assumption that direct talks should start straight away, Fayyad spoke out against Israeli lack of interest in the peace process. He did not even mention the Palestinian insistence that Israel stop building in the colonies on the West Bank, but instead pointed to much easier matters which are not happening.
“There are many things the Netanyahu government could do. It could stop military incursions in Area A of Palestine. It could allow Palestinian development in Area C in the Jordan Valley. These are only two measures out of many others that would allow the Palestinians to see Israeli interest in the talks,” said Fayyad.
Peres insisted that progress had been made, pointing to what he saw as a historic shift when the Israeli government agreed that the two state solution was the way forward, and he then patronisingly complimented Fayyad on the progress he has made in building Palestinian institutions and new economic zones. Fayyad did not look as though he needed such compliments, and the chilly session ended with little warmth being shown on the stage.
By Francis Matthew/ Editor at Large
Gulf News 2012. All rights reserved.
