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The false promise of regime change in Iran

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Could the end be approaching for the Islamic Republic of Iran? Unpopular at home, under attack by Israel and led by an 85-year-old supreme leader, the Iranian regime looks potentially vulnerable.

Anti-government demonstrations that began in 2022 were savagely repressed, with hundreds shot in the streets and thousands imprisoned. Benjamin Netanyahu, Israel’s premier, is trying to reach out to the Iranian opposition. Even as he threatens to take military action against the country, he has predicted that freedom will come to Iran, “sooner than most people think”.

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Netanyahu argues that regime change in Iran would benefit the whole world. The Iranian regime is clearly a malign force in global affairs. It has supported violent militia groups such as Hamas, Hizbollah and the Houthis. It also provided crucial military support to Bashar al-Assad, Syria’s dictator, and has supplied missiles to Russia, for use in its war with Ukraine.

Given Netanyahu’s influence in the US, his arguments are inevitably being picked up on the Republican right. But not just there. Le Monde quotes a French diplomat as saying: “Perhaps the Israelis are leading us towards a historic moment . . . the beginning of the end for the Iranian regime.”

In the abstract, the fall of the Islamic republic sounds like a welcome development for the democratic west, which is increasingly concerned by the co-operation of an “axis of adversaries” made up of Iran, Russia, China and North Korea. The return of political freedom to Iran would also mean the country’s reintegration into the world economy.

In the real world, however, there is every reason to be very wary of those calling for “regime change” in Iran.

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First, there is the question of how it would happen. Iranian protesters have risen up against the regime several times in the past and been killed and imprisoned in large numbers.

Bombing Iran and its critical infrastructure, in the vague hope that this will cause the regime to collapse, is also a deeply unconvincing strategy. Rather than helping the internal opposition, Israeli or American strikes could actually aid the regime by causing a rally-round-the-flag effect as patriotic Iranians bury their differences to unite against a foreign aggressor.

American intervention could be particularly counter-productive, given that every educated Iranian remembers the role of the US and the UK in backing a coup in Iran in 1953.

Even if the Iranian regime did somehow fall, there is absolutely no guarantee that something better would replace it. Many dictatorial regimes have been forced from power across the Middle East in recent decades. Often the successor regimes have proved even more oppressive than those they displaced, as happened when the Iranian revolution forced out the Shah of Iran in 1979.

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A recent book, surveying the sorry record of US intervention in the Middle East, is entitled Losing the Long Game: The False Promise of Regime Change in the Middle East. Its author, Philip Gordon, is national security adviser to Kamala Harris and deeply involved in the White House deliberations over how to handle the current crisis. It might be helpful if Gordon handed out copies of his book to anyone foolish enough to speculate that now might be the time to topple the ayatollahs.

Gordon illustrates the US repeatedly falling into the same trap, decade after decade, as it got behind the idea of regime change in Iraq, Iran, Afghanistan, Egypt and Libya. In every case, the US embraced the optimistic assumptions of exiled leaders (and of Netanyahu over Iraq in 2002), but “failed to anticipate the chaos that would inevitably ensue after the collapse”.

As Gordon notes, “whenever an existing regime is destroyed . . . a political and security vacuum emerges and a power struggle begins”. The winners of that power struggle are usually the most ruthless and well-armed groups, not the most liberal and tolerant.

Conditions of insecurity also persuade people to fall back on kinship groups or sects, making it more likely that a civil war will break out. Iran, like Iraq, is a patchwork of different ethnic and religious groups. The power vacuum when an autocratic regime is toppled often sucks in neighbouring countries and groups, spreading violence across the region. All these warnings apply just as forcibly to hopes for a new political order in Lebanon, following the destruction of the Hizbollah leadership.

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Cautioning against making regime change a goal of western policy could lead to an unacceptably bleak conclusion — that Iranians must live under an oppressive theocracy forever.

That is too pessimistic. The question is not whether change should come to Iran, but how.

The best hope for Iranians and the Middle East is that the Islamic republic is eventually consigned to history not by an invasion or a revolution, but by peaceful negotiation. In recent decades, the democratic transitions that have worked best have taken place in countries such as Poland, South Africa and Chile, when autocratic governments — driven by generational change or by shifts in world politics — have sat down with their opponents and negotiated.

Iran has always had reformist politicians operating within the theocratic system. But war with Israel is guaranteed to empower the hardliners. Change must come to Iran. Bombing raids are not the way to bring it about.

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gideon.rachman@ft.com

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Mel Stride to back James Cleverly in Conservative leadership race

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Former Conservative leadership candidate Mel Stride is set to throw his backing behind James Cleverly on Monday evening, in a boost to the ex-home secretary’s bid to replace Rishi Sunak, according to party figures.

The expected endorsement will come hours before Tory MPs vote on Tuesday to eliminate one of the four remaining contenders from the race. They will vote out another candidate on Wednesday, with Conservative members being balloted in a run-off between the final two names later this month. 

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Cleverly came joint third with ex-security minister Tom Tugendhat in the second round of voting last month. That ballot saw former immigration minister Robert Jenrick in pole position with ex-business secretary Kemi Badenoch in second place. 

However, Cleverly picked up momentum during the party’s annual conference in Birmingham last week, after swerving any gaffes and giving a strong performance in his keynote speech. Jenrick and Badenoch saw their conference appearances overshadowed by controversial comments, which may have dented their appeal with colleagues and party members.

Stride, who was knocked out in the second-round ballot, was a staunch supporter of Sunak and is seen as a senior centrist Tory. The backing will be another welcome boost for Cleverly, but may cement in the minds of MPs and members the sense that he is a moderate Tory in a party that is feeling threatened by Nigel Farage’s Reform UK.

Former home secretary Priti Patel, the leadership candidate who was knocked out of the race first, has so far declined to offer her public support to any of the remaining candidates. 

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These have sought to project upward momentum for their campaigns with a series of high-profile endorsements in recent days. 

Badenoch won the backing of Ron DeSantis, the Republican governor of Florida at the weekend. The ex-US presidential hopeful said she would be an inspiration for conservatives “across the world”.

Earlier on Monday Andy Street, the former Tory mayor of the West Midlands, said Tugendhat best embodied “a moderate, inclusive brand of Conservatism” that “focuses on real societal issues, not ideology”.

Jenrick’s campaign is so confident of reaching the final two that it is saving significant endorsements until the back end of this week, according to one person familiar with his thinking, after MPs have knocked out two of the current contenders. Jenrick is planning a big speech in central London on Thursday in expectation of making the run-off.

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At the weekend a survey of members by the ConservativeHome grassroots website suggested that Cleverly had leapfrogged Jenrick among the party faithful. However, it found that Kemi Badenoch remained in first position.

On Monday, the candidates used a debate in the House of Commons on the government’s decision to cede sovereignty of the Chagos Islands in the Indian Ocean to Mauritius to flaunt their patriotic credentials. 

Jenrick accused foreign secretary David Lammy of having “handed sovereign British territory to a small island nation which is an ally of China” in order to “feel good about himself at his next north London dinner party”. 

Tugendhat accused the government of “undermining the rights of the Chagossian people” with the deal. He has previously criticised Cleverly, who began negotiations with Mauritius when he was foreign secretary under Liz Truss in 2022. 

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On Monday, Lammy insisted the deal was “strongly supported by partners” and secured the future of a UK-US military base situated on Diego Garcia, a strategically important asset.

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SEGRO appoints former government official Corbridge as CIO

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SEGRO appoints former government official Corbridge as CIO

Corbridge will oversee the group’s digital and technology strategy, reporting to chief financial officer Soumen Das.

The post SEGRO appoints former government official Corbridge as CIO appeared first on Property Week.

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Partial win for Man City in challenge to Premier League sponsorship rules

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The Premier League’s rules on commercial agreements between football club owners and related companies are unlawful, a tribunal has found, following a legal challenge from Manchester City that will force some of the regulations to be rewritten. 

City, which is owned by a member of the Abu Dhabi ruling family, challenged the league’s so-called Associated Party Transaction rules earlier this year, claiming that they had unfairly blocked sponsorship deals, including one with Abu Dhabi-based airline Etihad. 

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The Premier League’s APT rules were brought in after Newcastle United was acquired by Saudi Arabia’s Public Investment Fund in late 2021, and updated again earlier this year.

The regulations were designed to prevent companies related to club owners from using inflated sponsorship deals to boost revenue and so give teams greater leeway to spend on players. 

Although an independent panel rejected several of City’s claims, and recognised the Premier League’s need for an assessment mechanism for related party deals, it deemed the current rules “unlawful” under UK competition law.

This was principally because the rules excluded shareholder loans from their assessment. Several Premier League clubs rely on interest-free loans from their owners but — unlike sponsorship deals — loans are not required to meet “fair market value” criteria. 

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The tribunal also found that the way APTs are assessed was unlawful on a procedural basis, with clubs denied important information before decisions were made.

The ruling means the Premier League’s original assessment of two City sponsorship deals, including the Etihad deal in question, no longer stand. Etihad is already the club’s front of shirt sponsor and has naming rights over its stadium.

The Premier League said that a “small number of discrete elements” in its rule book would now need updating, but that the changes could be done “quickly and effectively”.

City’s partial victory on the APT rules comes as a separate independent committee hears the case brought by the Premier League against the club related to 115 alleged financial rule breaches stretching over many years. A verdict in that case is expected in the new year.

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After being acquired by Sheikh Mansour bin Zayed Al Nahyan in 2008, City has become the dominant force in English football. The club has won the Premier League six times in the past seven years, and last year won the Uefa Champions League for the first time.

Monday’s ruling is the latest in a string of legal challenges against football’s rulemakers.

On Friday, the European Court of Justice said the current rules set by global governing body Fifa regarding football transfers were unlawful, while the same court ruled late last year that Fifa and its European counterpart Uefa had breached competition law during their response to the aborted European Super League.  

City’s battle against the league is another example of how football clubs are increasingly taking the legal route to determine the rules that underpin the competition. It is a recognition of how the rules off the pitch — not just star players — can influence winners and losers on the pitch.

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The Premier League said the verdict “endorsed the overall objectives, framework and decision-making of the APT system”. The league said it would now add shareholder loans to its assessments and remove some of the amendments brought in earlier this year. 

“The tribunal upheld the need for the APT system as a whole and rejected the majority of Manchester City’s challenges. Moreover, the tribunal found that the rules are necessary in order for the League’s financial controls to be effective,” it added. 

City said it welcomed the findings of the tribunal. “The club has succeeded with its claim: the Associated Party Transaction rules have been found to be unlawful and the Premier League’s decisions on two specific MCFC sponsorship transactions have been set aside,” it said.

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Transact teams up with Moneyinfo to enhance client document delivery

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Transact teams up with Moneyinfo to enhance client document delivery

Adviser investment platform Transact has announced a new integration with fintech provider Moneyinfo to help streamline adviser-client communication.

The collaboration is part of Transact’s plan to integrate with technology providers to enhance efficiency and client engagement for the 2,000 adviser firms using the platform.

The integration with Moneyinfo simplifies document delivery, which is often a time-consuming process.

Through the integrated Moneyinfo portal and app, advisers can automatically deliver key client communication, including valuation reports and statements.

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Removing this previously manual process will improve the operational efficiency of advisers, providing more time to focus on providing advice.

Plannr and Transact team up to ‘supercharge’ efficiency of advisers

Transact chief development officer Tom Dunbar said the platform’s overall strategy is to “make financial planning easier”.

“A key priority in doing this is to improve the technology ecosystem available to our adviser firms,” he added.

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“By integrating with client portals like Moneyinfo we help advisers operate more efficiently and improve the client experience.”

Moneyinfo managing director Tessa Lee said the firm is “passionate about pushing the boundaries of technology” to benefit the wealth-management industry.

“Our collaboration with Transact is a direct response to what advisers have been asking for – greater efficiency and peace of mind,” she added.

“Through simplifying document delivery, this integration allows advisers to focus on their core business, knowing the technology is working behind the scenes to support them.”

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In a statement, the companies said that, for adviser firms, the benefits of this integration go beyond time savings as the automation of documentation also provides a “seamless client experience”.

Advisers now have a choice in how they manage document distribution, with an option for Moneyinfo’s platform to handle everything from encrypted delivery to audit trails.

Chris Riley, MD at Seventy Financial Planning – a firm participating in the pilot – said: “It has transformed our processes and vastly improved the client experience. We no longer worry about chasing documents – it’s taken care of.”

Dunbar added: “We’re committed to empowering our clients with the tools they need to succeed in a competitive, fast-changing industry and working with like-minded firms like Moneyinfo helps us stay ahead of the curve, ensuring our adviser firms benefit from the latest innovations.”

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New £84billion city being built in winter sun holiday hotspot with beaches and resorts – so big it has its own airport

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A new mega-development is being built in Egypt

A HUGE new waterfront development is set to transform a Brit-loved winter sun hotspot.

Ras El Hekma is a new waterfront megaproject being built in Egypt, which will be twice the size of Barcelona.

A new mega-development is being built in Egypt

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A new mega-development is being built in EgyptCredit: DSC/Elbayt real estate
Ras El Hekma is a new waterfront city

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Ras El Hekma is a new waterfront cityCredit: YouTube/ Elbayt real estate
It will have 11 different districts

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It will have 11 different districtsCredit: DSC/Elbayt real estate

Ras El Hekma will be on the North Coast of Egypt between Alexandria and Marsa Matrouh.

It will also be just a few hours from Cairo, with plans to have both flights and cruise ships from Europe.

This means a new international airport will be built, along with a cruise terminal and high speed rail links.

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Brits can currently fly to Cairo in just under five hours, with flights to the the development expected to be slightly shorter.

Resorts expected to be built there include Accor – who own Ibis and Novotel – and Ennismore.

The luxury golf courses will be created by Valderrama, one of the most famous golf resorts in the world.

The main waterfront area will be the tourist resort with a main downtown that has beach resorts, public beaches and “coastal communities”.

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Another district will promote “local culture”.

Images also show a cable car network as well as restaurants right on the beach.

Some of the first stages will be complete by next year, such as some of the beach apartments, amusement facilities and the seafront with construction starting next month.

El Gouna is a resort town in Egypt that’s known for its beaches, lagoons, and water sports

The project is being developed by Abu Dhabi based Modon Holding as well as other UAE and Egyptian developers including ADQ subsidiary Ras El Hekma Urban Development Project Company.

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As much as $110billion (£84billion) investment is expected by 2045.

His Excellency Jassem Mohamed Bu Ataba Al Zaabi, Chairman of Modon Holding, said, “Ras El Hekma is destined to become a regional crown jewel in a country already famed for its rich and diverse attractions.

“Modon Holding is proud to bring this 170-million-square-metre
visionary megaproject to life, leveraging our expertise and innovative approach.

Both tourists and locals will visit, according to developers

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Both tourists and locals will visit, according to developersCredit: DSC/Elbayt real estate
The project will attract billions of investment

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The project will attract billions of investmentCredit: DSC/Elbayt real estate

“With our partners, we are poised to transform Ras El Hekma into a dynamic economic powerhouse and a global model for urban development.”

Another £16.3billion beachfront attraction is set to open in Egypt as well.

The new SouthMED project is to become a “global destination on the southern Mediterranean”.

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As well as 2,000 hotel rooms, there will also be an international marina and 8km beach.

Five new water attractions opening in the UK

  1. Therme Manchester will have 25 swimming pools, 25 water slides and an indoor beach.
  2. Modern Surf Manchester will be a surfing lagoon offering lessons to both beginners and experts.
  3. Chessington World of Adventures Waterpark is set to have wave, infinity and spa pools as well as waterslides and cabanas.
  4. The Cove Resort, Southport is likely to have a water lagoon and a thermal spa with steam rooms and saunas.
  5. The Seahive, Deal plans to be the “surfing wellness resort” in the UK.

In Greece, a £6.8billion Dubai-like attraction is set to open with the seaside resort home to five-star hotels and marina.

And a £4.3billion beachfront attraction in Qatar is to “rival Disney” in size.

Parts of the first phase will open next year

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Parts of the first phase will open next yearCredit: Modon Holding

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Spain proposes mini-coalitions to break EU capital markets stalemate

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Spain has proposed a faster path to closer EU financial integration among like-minded nations in an effort to end a decade-long stalemate over harmonising the bloc’s capital and credit markets.

Madrid made a formal proposal on Monday for a new mechanism to allow a vanguard of three or more countries to proceed on joint initiatives even when other EU members are wary — starting with the creation of a pan-European credit rating system.

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For more than a decade, the EU has sought to tear down national barriers in capital markets to help European companies raise funds, but the efforts to forge a “capital markets union” have been scuppered by resistance from several capitals.

Spain’s move comes after policy recommendations from former Italian prime ministers Mario Draghi and Enrico Letta, who warned that the bloc risked economic decline if it could not turn its private savings into productive investments.

Carlos Cuerpo, the Spanish economy minister who will present the country’s proposal to fellow EU ministers in Luxembourg, told the Financial Times that implementing the Italian recommendations was “a huge job ahead for all of us”.

Setting out Spain’s proposal for a “competitiveness lab”, where three or more EU countries could test ideas for co-operation, he said it would help avoid the “potential danger of frustration” with the EU’s slow decision making. “We can’t wait that length of time,” he said, noting that on average the bloc’s legislation took 19 months to pass.

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Carlos Cuerpo speaks while seated in an office setting.
Carlos Cuerpo: ‘What we are trying to do is put on the table a fully fledged framework that can accommodate different initiatives’ © Kiko Huesca/EPA-EFE/Shutterstock

Spain wants to start with a harmonised credit rating system for small and medium-sized businesses, which he said found it much harder to raise finance than large companies.

Describing the idea as “an additional step towards a capital markets union”, he said it would lower financing costs in both capital and credit markets and enable a Spanish company, for example, to raise funds at competitive rates in any other participating country.

It is not the first time EU countries that are frustrated by inertia in the EU regulatory process have tried to push ahead with fewer partners.

EU law already allows for “enhanced co-operation” among at least nine member states on specific initiatives if efforts to secure support for the reforms at EU level have failed.

But the mechanism has only been used successfully four times, and failed to break a stalemate on a financial transaction tax, even after it was explored by more than a dozen countries. Spanish officials described it as outdated and insufficiently flexible to enable real change in key areas.

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Paschal Donohoe, president of the Eurogroup, said on Monday that the Spanish initiative should encourage all countries to participate, but would avoid fragmenting the bloc’s already disjointed capital markets. 

“At a time when we’re all reaffirming the value of a single market and the value of a level playing field . . . I hope that ideas like this act as a catalyst to deepening our commitment for us all to take a step forward together, so we don’t have any risks of fragmentation,” he said, adding: “One person’s enhanced co-operation could be another country’s risk of fragmentation.”

A recent French proposal backed by Italy, Spain, Poland and the Netherlands to forge ahead with a capital markets union ran aground.

France said its proposal, which included centralising the supervision of banks and asset managers in the Paris-based EU agency European Securities and Markets Authority, would enable greater capital integration.

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But the idea was opposed by a majority of smaller member states, which were wary of losing the right to set their own rules and sceptical of French attempts at centralising power.

Cuerpo said Spain’s proposal was an effort to move beyond “ad hoc” efforts and would enable other countries to test their own ideas for closer integration in areas ranging from securitisation to tax harmonisation. He said feedback from other member states on the idea so far was “rather positive”, but did not name any guaranteed allies.

“What we are trying to do is put on the table a fully fledged framework that can accommodate different initiatives,” he said. “It’s not just us pushing for one specific initiative or concept, it’s us proposing a catalyst for broader co-operation, which is open at any time for anyone to be brought in.”

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