EU nations mull expelling Russian diplomats after spy attack

Britain’s Prime minister Theresa May (L) arrives at the European Council headquarter on the second day of a summit of European Union (EU) leaders on March 23, 2018, in Brussels. (AFP)
Updated 23 March 2018
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EU nations mull expelling Russian diplomats after spy attack

BRUSSELS: The leaders of several EU countries said they are mulling whether to expel Russian diplomats or take other steps to support Britain following a nerve agent attack on a former spy.
European Union leaders returned to summit talks on Friday after uniting behind British Prime Minister Theresa May in blaming Russia for the attack in England, and agreeing to recall the bloc’s ambassador to Moscow for consultations.
Britain expelled 23 Russian diplomats they said were spies, and has been pressing EU allies to follow suit despite Moscow’s warning against confrontational steps.
The leaders of former communist member states the Czech Republic and Lithuania as well as Denmark and Ireland said they were considering further unilateral steps, including expelling diplomats.
“I think national measures will be applied already starting from next week... from a lot of countries,” Lithuania’s outspoken President Dalia Grybauskaite said before joining the second and last day of the summit in Brussels.
Czech Prime Minister Andrej Babis told the CTK news agency that Prague may expel several Russian diplomats over the poisoining of former double agent Sergei Skripal and his daughter Yulia.
“Yes, we will probably move in this direction,” Babis said, adding he will discuss expulsions with his cabinet members on Monday.
Ireland’s Prime Minisster Leo Varadkar said his government would decide early next week whether to expel diplomats following a security assessment.
“We are not going to randomly expel people who are genuine diplomats,” Varadkar told reporters.
Danish Prime Minister Lars Lokke Rasmussen said his government heard the “strong signal” from the bloc’s leaders who agreed with Britain’s assessment that Russia was to blame for the attack.
He said he would hold consultations with members of his government.
“My government will then in the next coming days very seriously consider to take further steps,” Rasmussen said.
A French presidency source said Thursday that Paris was also ready to act.
The poisoning has heightened worries across Europe about Russian meddling — from repeated cyberattacks to what the EU has called an “orchestrated strategy” of disinformation aimed at destabilising the bloc.
During a visit to Hanoi, Russian Foreign Minister Sergei Lavrov warned that British officials “are feverishly trying to force allies to take confrontational steps.”
Lavrov, quoted by Russian state news agency RIA Novosti, said London was trying to make the “crisis as deep as possible.”


Record budget spurs Saudi economy

The budget sets out to lift spending and cut the deficit. (Shutterstock)
Updated 20 min 3 sec ago
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Record budget spurs Saudi economy

  • “It is a growth-supportive budget with both capital and current expenditure set to rise.”
  • Government spending is projected to rise to SR 1.106 trillion

RIYADH: Saudi Arabia on Tuesday announced its biggest-ever budget — with spending set to increase by around 7 percent — in a move aimed at boosting the economy, while also reducing the deficit. 

However, analysts cautioned that the 2019 budget is based on oil prices far higher than today — which could prove an obstacle in hitting targets. 

Government spending is projected to rise to SR 1.106 trillion ($295 billion) next year, up from an actual SR 1.030 trillion this year, Minister of Finance Mohammed Al-Jadaan said at a briefing in Riyadh. 

The budget estimates a 9 percent annual increase in revenues to SR 975 billion. The budget deficit is forecast at SR 131 billion for next year, a 4.2 percent decline on 2018.

“We believe that the 2019 fiscal budget will focus on supporting economic activity — investment and wider,” Monica Malik, chief economist at Abu Dhabi Commercial Bank (ADCB), told Arab News.

“It is a growth-supportive budget with both capital and current expenditure set to rise.”

A royal decree by Saudi Arabia’s King Salman, also announced on Tuesday, ordered the continuation of allowances covering the cost of living for civil sector employees for the new fiscal year.

“The continuation of the handout package will be positive for household consumption by nationals,” said Malik. “We expect to see some overall fiscal loosening in 2019, which should support a further gradual pickup in real non-oil GDP growth.”

World oil prices on Tuesday tumbled to their lowest levels in more than a year amid concerns over demand. Brent crude contracts fell to as low as $57.20 during morning trading.

Malik cautioned that the oil-price assumptions in the Saudi budget looked “optimistic.”

“We see the fiscal deficit widening in 2019, with the higher spending and forecast fall in oil revenue,” she told Arab News.

Jason Tuvey, an economist at London-based Capital Economics, agreed that the oil forecast was optimistic, but said this should not pose problems for government finances.

“The government seems to be expecting oil prices to average $80 (per barrel) next year,” he said. 

“In contrast, we think that oil prices will stay low and possibly fall a little further to $55 … On that basis, the budget deficit is likely to be closer to 10 percent of GDP. That won’t cause too many problems given the government’s strong balance sheet. 

“Overall, then, we think that there will be some fiscal loosening in the first half of next year, but if oil prices stay low as we expect, the authorities will probably shift tack and return to austerity from the mid-2019, which will weigh on growth in the non-oil sector,” Tuvey said.

John Sfakianakis, chief economist at the Gulf Research Center, based in Saudi Arabia, said that the targets of the budget were “achievable” and the forecast oil price reasonable. 

“It is an expansionary budget that should spurt private sector activity and growth,” he said. 

“With Brent crude averaging around $68 per barrel for 2018 and $66 per barrel for 2019, the authorities have applied a conservative revenue scenario.”