EU, US reindustrialization accelerates: study

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A steelworker is seen at the blast furnace (Hochofen) Schwelgern at the steel works of Thyssenkrupp Steel Europe AG in Duisburg, Germany, on July 26, 2023. (AFP)
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Aircraft component fabrication machines are pictured in the Boeing Sheffield factory, the aerospace company's first manufacturing facility in Europe, in northern England on October 25, 2018. (AFP)
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A steelworker is seen at the blast furnace (Hochofen) Schwelgern at the steel works of Thyssenkrupp Steel Europe AG in Duisburg, Germany, on July 26, 2023. (AFP)
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Updated 18 April 2024
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EU, US reindustrialization accelerates: study

  • Report: ‘The rapidity with which reindustrialization has taken hold is remarkable’
  • COVID-19 pandemic and Russia's brought to the fore the national security aspect of having control over essential supplies and the necessary manufacturing capacity

PARIS: Companies in Europe and the United States are set to plow more money into bringing manufacturing home after the Covid-19 pandemic and Russian invasion of Ukraine disrupted the global economy, a study published Thursday found.
The report by consulting firm Capgemini found that companies in 13 industrial sectors in 11 countries in Europe and the United States plan to invest $3.4 trillion over the next three years on bringing manufacturing home or to a nearby country.
That is up from $2.4 trillion in the past three years.
“The rapidity with which reindustrialization has taken hold is remarkable,” said the report.
“Driving this is the imperative to promote supply chain resilience and flexibility; increase both the availability and appeal of skilled manufacturing jobs; meet climate targets; re-establish national security in strategic sectors, and regain the manufacturing might that the industrial powerhouses of Europe and North America once enjoyed,” it added.
The COVID-19 pandemic severely disrupted global supply chains, making many companies want to regain greater control over raw materials and components.
The Russian invasion of Ukraine brought to the fore the national security aspect of having control over essential supplies and the necessary manufacturing capacity.
“We were surprised by the magnitude of the phenomenon” of relocalization of manufacturing, one of the report’s authors, Etienne Grass, said.
He noted that the investment represents an average allocation of around 8.7 percent of revenue of the companies it surveyed.
“That’s really a considerable” amount, Grass said.
Some 1,300 senior executives of industrial firms with more than a $1 billion in annual revenue were interviewed for the survey in February.
The companies were located in Britain, Denmark, Finland, France, Germany, Italy, the Netherlands, Norway, Spain, Sweden and the United States.
The top reason cited by companies for reindustrialization was to strengthen their supply chains, followed by the importance of establishing a domestic manufacturing infrastructure to ensure national security.
In third place was reducing greenhouse gas emissions, followed by taking advantage of financial incentives to reindustrialize offered by their governments.
While US companies have the largest reinvestment plans in absolute terms at $1.4 trillion, it trails companies in other nations in terms of percentage of gross domestic product, said Grass.
The German reindustrialization effort is equivalent to 20 percent of GDP and the French effort is 13 percent, compared to five percent for the United States despite the generous subsidies offered under the Inflation Reduction Act.
In addition to bringing production back or near home, companies are also reducing their dependence on China by investing in other emerging market nations, the report found.
“To this end, businesses are distributing their critical assets (such as production facilities, warehouses, and logistics centers) across geographies such as India, Southeast Asia, Africa, and Mexico,” it said.


Mauritanian president calls on West African states to ally against jihadism

Updated 6 sec ago
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Mauritanian president calls on West African states to ally against jihadism

  • Former army chief and defense minister is tipped for a second term as head of the country of 4.5 million
ATAR, Mauritania: Mauritanian President Mohamed Ould Cheikh El Ghazouani called on West African countries to come together in the face of jihadism, in an interview with AFP ahead of the country’s presidential vote.
“The region must generate a common political will to be able to fight against insecurity,” Ghazouani said on Friday, on the campaign trail ahead of an election on June 29.
“I am not one of those who think today that countries can face a threat like terrorism individually.”
The 67-year-old former army chief and defense minister is tipped for a second term as head of the country of 4.5 million that lies strategically between north and sub-Saharan Africa.
He said that the “security situation in the sub-region is not at all good” and has become “worse.”
The military has seized power by force in Mali, Burkina Faso and Niger in recent years, heightening uncertainty in the region. Ghazouni’s huge desert nation has a frontier of more than 2,000 kilometers (1,250 miles) with Mali.
While jihadism has spread in the Sahel, particularly in Mali, Mauritania has not seen an attack since 2011.
“We need to form a coalition,” Ghazouani said, urging the countries of the region to “come together.”
He spoke to AFP in Atar, some 450 kilometers northeast of the capital Nouakchott, where he launched his re-election campaign last week.
Ghazouani called for a possible replacement to the G5 Sahel alliance, which was created in 2014 by Mauritania, Burkina Faso, Mali, Niger and Chad, with the support of Western countries, to confront jihadism.
The military leaders in Mali, Burkina and Niger have all withdrawn from the G5 alliance in recent years.
“If the G5 Sahel is not the right one, we must find another G-something,” he said.
The three countries, which have broken militarily and politically with the former French colonial power, have pivoted closer to Russia under their new military rulers.
They have also pulled out of the Economic Community of West African States (ECOWAS) and created their own alliance of Sahel states. Ghazouni said he Mauritania did not seek any role in the internal affairs of the other Sahel countries.
“We respect their sovereignty in their decisions. We want these countries to move as fast as possible toward elections,” he said.
Mauritania, which is rich in natural resources but still has a low gross domestic product, was hit by a series of coups from 1978 to 2008, before the 2019 election marked the first transition between two elected presidents.
The president said that stability has been maintained by being aware of the militant threat as well as “enormous efforts” made in education and health provision.
Ghazouani has pledged to “step up” his social welfare policy for the poor if re-elected, claiming more than 1.5 million people had benefited already from housing and financial help during his first term.

Nigel Farage, leader of Reform UK, criticized for saying West provoked Putin to invade Ukraine

Updated 57 sec ago
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Nigel Farage, leader of Reform UK, criticized for saying West provoked Putin to invade Ukraine

  • Claiming that he warned of a potential war in Ukraine in 2014, when he was a member of the European Parliament, Farage said “we provoked this war”
  • “It was obvious to me that the ever-eastward expansion of NATO and the European Union was giving this man a reason to his Russian people to say”

LONDON: Nigel Farage, leader of the far-right Reform U.K party, is facing wide-ranging criticism across the political spectrum over his claim that the West provoked Russian President Vladimir Putin to invade Ukraine, including of being an appeaser.
In a BBC television interview broadcast Friday evening, Farage, who is seeking to woo voters away from Britain’s governing Conservatives at the July 4 general election, drew a link between the expansion of NATO and the European Union eastwards over the past few decades and the invasion.
Claiming that he warned of a potential war in Ukraine in 2014, when he was a member of the European Parliament, Farage said “we provoked this war.” It’s unclear whether his warning came before or after Russia had annexed the Crimea peninsula from Ukraine in February 2014.
“It was obvious to me that the ever-eastward expansion of NATO and the European Union was giving this man a reason to his Russian people to say, ‘They’re coming for us again’ and to go to war,” Farage said. “It’s, you know, of course it’s his fault — he’s used what we’ve done as an excuse.”
Farage’s critics from across the political spectrum slammed his statement, with many describing him as a Putin apologist.
In perhaps his sharpest criticism of Farage, Conservative Prime Minister Rishi Sunak said it was “completely wrong” to say the West provoked Putin into launching a full invasion of Ukraine in February 2022.
“This is a man who deployed nerve agents on the streets of Britain, who’s doing deals with countries like North Korea,” Sunak said. “And this kind of appeasement is dangerous for Britain’s security, the security of our allies that rely on us and only emboldens Putin further.”
Many Conservatives, including Sunak, have largely held back from overly criticizing Farage, who though not a lawmaker in the UK Parliament, was hugely influential in Britain’s vote to leave the EU in 2016.
The worry among many Conservatives is that attacking him too much will further alienate many Conservative voters, who sympathize with his tough rhetoric on issues like immigration and Brexit. In many constituencies around the country, Conservatives have argued that a vote for Reform would see the main opposition Labour Party come through the middle and win.
“I think Nigel Farage is a bit like that pub bore we have all met at the end of the bar who often says if ‘I was running the country’ and presents very simplistic answers to actually, I am afraid in the 21st century, complex problems,” Ben Wallace, the former Conservative defense secretary who has stood down as a lawmaker, told BBC radio.
This is the first general election that Reform UK is contesting and it has enjoyed a lift in the polls after Farage said in early June he would lead the party and contest the seat in Clacton in southeast England. Though the party is not expected to secure many seats, Farage is currently favorite to win his contest and finally enter Parliament after seven attempts.
Keir Starmer, leader of the left-of-center Labour Party who is widely expected to become prime minister after the election, labelled Farage’s comments as “disgraceful.”
“Anyone who is standing for Parliament ought to be really clear that Russia is the aggressor,” he said.


Investigation of Russian hack on London hospitals may take weeks amid worries over online data dump

Updated 50 min 1 sec ago
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Investigation of Russian hack on London hospitals may take weeks amid worries over online data dump

  • Hundreds of operations and appointments are still being canceled more than two weeks after the June 3 attack on NHS provider Synnovis, which provides pathology services primarily in southeast London

LONDON: An investigation into a ransomware attack earlier this month on London hospitals by the Russian group Qilin could take weeks to complete, the country’s state-run National Health Service said Friday, as concerns grow over a reported data dump of patient records.
Hundreds of operations and appointments are still being canceled more than two weeks after the June 3 attack on NHS provider Synnovis, which provides pathology services primarily in southeast London.
The attack affected King’s College and Guy’s and St. Thomas’ hospital trusts, which run several south London hospitals, as well as clinics and doctors’ practices across a swath of the city. A memo to staff called it a “critical incident” and said it had a “major impact” on services, particularly blood transfusions.
NHS England said Friday that it has been “made aware” that data connected to the attack have been published online. According to the BBC, Qilin shared almost 400GB of data, including patient names, dates of birth and descriptions of blood tests, on their darknet site and Telegram channel.
“The National Crime Agency and National Cyber Security Center are working to verify the data included in the published files as quickly as possible,” NHS England said in a statement. “These files are not simple uploads and so investigations of this nature are highly complex and can take weeks if not longer to complete.”
According to Saturday’s edition of the Guardian newspaper, records covering 300 million patient interactions, including the results of blood tests for HIV and cancer, were stolen during the attack.
A website and helpline has been set up for patients affected.
“We understand the distress this will cause patients who have to re-test,” NHS England said.
The National Crime Agency has confirmed that it is leading the criminal investigation but said it is unable to comment further.
Ransomware involves criminals paralyzing computer systems with malware, then demanding money to release them. Ransomware is the costliest and most disruptive form of cybercrime, affecting local governments, court systems, hospitals and schools as well as businesses. It is difficult to combat as most gangs are based in former Soviet states and out of reach of Western justice.
Britain’s state-funded health system has been hit before, including during a 2017 ransomware attack that froze computers at hospitals across the country, closing down wards, shutting emergency rooms and bringing treatment to a halt.
Qilin, also known as Agenda, advertises on dark web cybercrime forums and leases malware to affiliates who use it to conduct attacks for a percentage of ransom payments, said Louise Ferrett of Searchlight Cyber, a threat intelligence company. The group has listed more than 100 victims.


BRICS countries launch joint tourism roadmap at Moscow forum

Updated 28 min 18 sec ago
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BRICS countries launch joint tourism roadmap at Moscow forum

  • BRICS accounts for 45 percent of world’s population, 25 percent of global economy
  • New strategy includes increased mobility between the nine countries

MOSCOW: The BRICS group of emerging-market nations has launched a roadmap to boost travel between member nations during the organization’s first tourism forum, which was held in Moscow over the weekend.

The BRICS group — an acronym for Brazil, Russia, India, China and South Africa — was formed in 2009 as an investment forum. It has since evolved into a geopolitical bloc and in January expanded to include Iran, the UAE, Ethiopia and Egypt.

The group’s leaders meet for annual summits hosted by the member holding its rotating presidency. This year’s chairmanship was taken by Russia.

Over 300 representatives of the industry gathered in Moscow for the BRICS Tourism Forum on Friday as delegates of the nine member countries announced a roadmap for joint policy and investment initiatives, which covers the development of digital tourism solutions, the BRICS green initiative for tourism, and the development of business relations in the sector, which Russian Economy Minister Maxim Reshetnikov said makes up around five percent of the group members’ economies.

“We can say that the BRICS tourism track has been formally launched as of this moment,” Reshetnikov told reporters. “The document will bolster cooperation in the tourism industry’s digitalization and in promoting and increasing tourist exchanges.”

The roadmap was welcomed by the Indian Ministry of Tourism.

“This is a great achievement, the first of its kind, and now the countries will work together in a certain manner through the roadmap,” Niraj Sharan, assistant director general at the ministry, told Arab News.

“In the future, more and more tourists will move within BRICS nations. It will be easy to go around, easing travel formalities, each country will facilitate member countries’ citizens, there will be cooperation between the hospitality sectors, and the countries will invest in each other’s firms.”

India is already offering e-visas to most of the BRICS nations.

“India is aiming at a better partnership, coordination and cohesion among all the BRICS nations — better facilities, easy movement of tourists, better exchanges for tourism sectors, tourism stakeholders, enhancing investment in each other’s countries,” Sharan said.

Amr El-Kadi, chairman of the Egyptian Tourism Promotion Authority at the Ministry of Tourism and Antiquities, said: “The BRICS Tourism Forum is significant, it’s opening up new territories. It’s a golden opportunity, where we can all work (together) within BRICS to increase intra-tourism.

“We have another major program to promote Egypt in India. We are working hard with the Indian embassy in Cairo to do a lot,” he continued. “We have a joint working team between both countries to know exactly how and where to promote tourism both ways. So, we have very ambitious plans.”

BRICS nations have a combined population of about 45 percent of the world’s inhabitants and account for some 25 percent of the global economy.

Since last year, 40 countries, including Malaysia, Thailand and Pakistan, have reportedly expressed interest in becoming members of the BRICS bloc, which aims to represent the Global South and provide an alternative model to the Western-dominated G7 — the most advanced economies comprising Germany, France, the UK, Italy, Japan, Canada, and the US.


BRICS countries launch tourism cooperation roadmap at Moscow forum

Updated 22 June 2024
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BRICS countries launch tourism cooperation roadmap at Moscow forum

  • BRICS accounts for 45 percent of the world’s population, 25 percent of the global economy
  • New roadmap includes increased mobility between the nine countries and mutual investments

MOSCOW: BRICS countries on Friday launched a tourism cooperation roadmap during the intergovernmental organization’s first tourism forum held in Moscow, with top officials calling it a “great achievement” toward easing travel formalities and boosting cooperation among the hospitality sectors of the grouping of emerging-market nations. 

The BRICS group — the acronym stands for Brazil, Russia, India, China and South Africa — was formed in 2009 as an investment forum and has since evolved into a geopolitical bloc. In January, the group expanded its membership to include Iran, the United Arab Emirates, Ethiopia and Egypt.

The group’s leaders meet for annual summits hosted by the members holding its rotating presidency. This year’s chairmanship was taken by Russia, which for the first time in the bloc’s history held a forum dedicated to tourism.

Over 300 representatives of the industry gathered in Moscow on Friday for the BRICS Tourism Forum, where delegates of the nine member countries announced a roadmap on joint policy and investment initiatives.

“We can say that the BRICS tourism track has been formally launched as of this moment,” Russian Economy Minister Maxim Reshetnikov told reporters.

“The document will bolster cooperation in the tourism industry’s digitalization and in promoting and increasing tourist exchanges.”

It included developing digital tourism solutions, a BRICS green initiative for tourism, and business relations in the sector, which Reshetnikov said contributes about five percent to the group’s member economies.

The roadmap was welcomed by the Indian Ministry of Tourism.

“This is a great achievement, first of its kind, and now the countries will work together in a certain manner or through the roadmap,” Niraj Sharan, assistant director general at the ministry, told Arab News on the sidelines of the forum.

“In the future, more and more tourists will move within BRICS nations. It will be easy to go around, easing travel formalities, each country will facilitate member countries’ citizens, there will be cooperation among the hospitality sectors, and the countries will be investing in each other’s firms.”

India is already offering e-visas to most of the BRICS nations.

“India is aiming at a better partnership, coordination and cohesion among all the BRICS nations, better facilities, easy movement of tourists, better exchanges for tourism sectors, tourism stakeholders, enhancing investment in each other’s countries,” Sharan said.

BRICS nations have a combined population of about 45 percent of the world’s inhabitants and account for some 25 percent of the global economy.

Since last year, 40 countries, including Malaysia, Thailand and Pakistan, have expressed interest in becoming members of the bloc, which tries to represent the Global South and provide an alternative model to the Western-dominated G7 — the most advanced economies comprising Germany, France, the UK, Italy, Japan, Canada and the US.

Egypt, a new member of the bloc, said the roadmap was an opportunity to benefit from linkages with some of the world’s most populous countries.

“The BRICS Tourism Forum is significant, it’s opening up to new territories ... It’s a golden opportunity, where you all have to work on the development and improvement, and work between the nations within the BRICS to increase intra-tourism,” said Amr El-Kadi, chairman of the Egyptian Tourism Promotion Authority at the Ministry of Tourism and Antiquities.

“We are having another big-scale program to promote Egypt in India. We are working hard with the Indian embassy in Cairo to do a lot. We have a joint working team between both countries to know exactly how and where and where to promote tourism both ways. So, we have very ambitious plans for us.”