LCCC ENGLISH DAILY NEWS BULLETIN
July 24/2019
Compiled & Prepared by: Elias Bejjani

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Bible Quotations For today
If I had not come and spoken to them, they would not have sin; but now they have no excuse for their sin.
Holy Gospel of Jesus Christ according to Saint John 15/22-27:”If I had not come and spoken to them, they would not have sin; but now they have no excuse for their sin. Whoever hates me hates my Father also. If I had not done among them the works that no one else did, they would not have sin. But now they have seen and hated both me and my Father. It was to fulfil the word that is written in their law, “They hated me without a cause.” ‘When the Advocate comes, whom I will send to you from the Father, the Spirit of truth who comes from the Father, he will testify on my behalf. You also are to testify because you have been with me from the beginning.”

Titles For The Latest English LCCC Lebanese & Lebanese Related News published on July 23-24/2019
The Free Lebanon will win and prevail
Lebanon: Fears of Arbitrary Rise In Prices After Increase In Import Duties
Syrian Opposition: Israel Killed Senior Hezbololah Officer,Mashur Zidan By Damascus
Hezbollah Commander Killed in Damascus Countryside
Suspected Hezbollah Agent, Hussein Mahmoud Yassine Arrested in Uganda With Mossad's Help
UK Fears Iran-Backed Terror Cells Could Attack Europe In Case Of Escalation
Report: Accumulating Files Press for Resumption of Cabinet Meetings
Report: PSP Says Campaign Targeting their Leader is Ongoing
Mustaqbal Slams 'Attempt to Target Hariri' in Qabrshmoun Row
Bassil Backs LF in Controversy over Regulating Palestinian Labor
Industry Ministry to Shut Down Factories Polluting Litani
Kataeb Calls for ‘Radical Reform’ and ‘Reinstating’ the Political Authority
Soaid Defends Mashrou' Leila Gig as Organizers Say Working on Solution

Titles For The Latest English LCCC Miscellaneous Reports And News published on July 23-24/2019
Johnson Confirmed as Next Conservative Party Leader and British Prime Minister
US Sanctions Squeeze Iran Middle Class, Upend Housing Sector
Polls Predict Former PM Barak’s Loss in Elections
Arab League, African Union Agree to Enhance Cooperation
Syria’s HNC to Unveil Plan to Counter Turkey’s Decision to Expel Refugees
Israel Condemns Attacks on Saudi Visitor
UAE Not Leaving War-Torn Yemen despite Drawdown
S. Korea Says Fired Warning Shots at Russian Military Jet
'Hamas' Consolidates Relations With Tehran, Pending Normalization With Damascus
Palestinians Hold General Strike at Refugee Camps against Lebanese Labor Regulations
Egypt Sentences 14 to Life in Jail for Forming ‘ISIS Students Cell’
Egypt, EU Agree on Future Projects for 2020

Titles For The Latest LCCC English analysis & editorials from miscellaneous sources published on July 23-24/2019
The Free Lebanon will win and prevail/Elias Bejjani/July 23/2019
Syrian Opposition: Israel Killed Senior Hezbololah Officer,Mashur Zidan By Damascus/Jerusalem Post/23 July/2019
Suspected Hezbollah Agent, Hussein Mahmoud Yassine Arrested in Uganda With Mossad's Help/Jerusalem Post/23 july/2019
UK Fears Iran-Backed Terror Cells Could Attack Europe In Case Of Escalation/Jerusalem Post/23 july/2019
European Union: A Massive Expansion of Top-down Powers/Soeren Kern/Gatestone Institute/23 July/2019
Eat Iran's Lunch Before They Have Us for Dinner/Tawfik Hamid/Gatestone Institute/July 23/2019
Analysis/Erdogan Faces Growing Threat From Within His Own Party
Zvi Bar'el/Haaretz/July 23/2019
Gulf Confrontation a Battle of Nerves/Abdulrahman Al-Rashed/Asharq Al Awsat/July 23/2019
Smartphone Banking Is for Me. Regulators, Please Help/Leonid Bershidsky/Bloomberg/July 23/2019

The Latest English LCCC Lebanese & Lebanese Related News published on July 23-24/2019
The Free Lebanon will win and prevail
Elias Bejjani/July 23/2019
It so sad and so pathetic that the Lebanese leaders and officials are not doing any thing to stop the Iranian Terrorist Hezbollah is devouring our country piece by piece. In spite of all the hard time that the Lebanese people are encountering, we strongly believe that by the end no matter what Hezbollah will be defeated and his irony grip will come to disastrous fate like all occupiers and tyrants.

Lebanon: Fears of Arbitrary Rise In Prices After Increase In Import Duties
Beirut - Caroline Akoum/Asharq Al Awsat/July 23/2019
Lebanon’s decision to increase customs duties on imported goods in the budget of 2019 increased citizens’ fears of a random rise in prices without control and accountability. The political and economic opinions were divided over this matter. Some deputies expressed their rejection during the discussion of the budget last week, while Economist Jassim Ajaka said that this measure was good and might reflect positively on the economy. The increase of customs duties includes imported goods subject to VAT, excluding gasoline and raw materials for industry and agriculture. Around 55 percent of the goods imported by Lebanon are expected to be affected by the new measure. The Ministry of Economy is about to issue a list of the concerned products, the most important of which are electronics, cars, clothing and some consumables, which are estimated at $12 billion out of total imports amounting to $20 billion annually. Amid fears of the arbitrary rise of prices as a result of the new measures, Economy Minister Mansour Bteish said that the 3 percent fee would only affect 50 percent of the imports. Emphasizing that his ministry would protect the citizens’ interests, the minister noted that the rise of duties would increase the treasury revenues by $350-360 million annually. In remarks to Asharq Al-Awsat, Ajaka said he agreed with the government measures in light of the current economic situation and the exploitation of the Lebanese market for illegal smuggling and tax evasion. But he questioned the success of the implementation of this plan, saying: “Our experience in Lebanon is not encouraging and we expect the failure of this step because the problem always remains in the non-application of the laws or the policy of selectivity in their application.”In this regard, he underlined the need to impose tight control on the markets to ensure the traders’ compliance and to prevent them from randomly increase prices of all goods.

Syrian Opposition: Israel Killed Senior Hezbololah Officer,Mashur Zidan By Damascus
إسرائيل تغتال القيادي في حزب الله مشهور زيدان بالقرب من دمشق
وكالات/23 تموز/2019
Jerusalem Post/23 July/2019
http://eliasbejjaninews.com/archives/76937/%d8%a5%d8%b3%d8%b1%d8%a7%d8%a6%d9%8a%d9%84-%d8%aa%d8%ba%d8%aa%d8%a7%d9%84-%d8%a7%d9%84%d9%82%d9%8a%d8%a7%d8%af%d9%8a-%d9%81%d9%8a-%d8%ad%d8%b2%d8%a8-%d8%a7%d9%84%d9%84%d9%87-%d9%85%d8%b4%d9%87%d9%88/
Senior Hezbollah official and a supporter of Bashar Assad's regime in Syria, Mashur Zidan, was killed on Sunday in a car explosion on the outskirts of the al-Kaliya bridge in the southwest of the Damascus suburbs, according to Syrian sources. Zidan was among those close to Samir Kuntar, who was assassinated by Israel and the blame in Syria is placed on the Mossad, who they claim was responsible for the assassination of Zidan. Zidan was travelling with another person when an Israeli drone fired a missile at him, according to a Syrian opposition website. Hezbollah began to deploy forces in Lebanon and Syria close to the Israeli border, according to reports on Saturday. The Daily Beast posted an interview with a number of commanders in the terror organization that claimed the organization was harmed directly by the financial sanctions the US imposed on Iran and that therefore, it intends to take hostile action against Israel if Iran decides it is time to do so. One of the commanders noted that there is a chance that a war will break out between Hezbollah and Israel, the kind "that would not be like its predecessors," stressing that "this time, we will be the first to shoot."The commander emphasized that the sanctions have a negative effect on the Iranian economy in a way that affects its support for the terrorist organization. "If a missile hits Iran, it will be treated as though Israel fired it," he threatened. The commander also said that "even before the civil war in Syria, we wanted to open a front against Israel in the Golan Heights, but the Syrian government drew a red line. Now there are no more red lines."*This article was translated from Maariv by Tamar Beeri.

Hezbollah Commander Killed in Damascus Countryside
Tuesday July 23rd, 2019 by SOWT AL-ASIMA (Voice of the Capital) - (Opposition website)
http://eliasbejjaninews.com/archives/76937/%d8%a5%d8%b3%d8%b1%d8%a7%d8%a6%d9%8a%d9%84-%d8%aa%d8%ba%d8%aa%d8%a7%d9%84-%d8%a7%d9%84%d9%82%d9%8a%d8%a7%d8%af%d9%8a-%d9%81%d9%8a-%d8%ad%d8%b2%d8%a8-%d8%a7%d9%84%d9%84%d9%87-%d9%85%d8%b4%d9%87%d9%88/
Mashour Zidan was killed on the Saasaa-al-Qaleea road, when a rocket hit his vehicle, although who is responsible for the attack is unknown reports Sowt al-Asima.
On Sunday, the city of Saasaa in the western Damascus countryside witnessed an incident in which a car was struck on the Saasaa-al-Qaleea road, killing Mashour Zidan, a commander in the Lebanese group Hezbollah,.
Official regime media said that a rocket struck a civilian car in the Saasaa area in Quneitra, which killed the driver and a child who had been near the car. The blast wounded three women in the area. The source of the strike was not identified nor were “terrorist groups” blamed as usual. Pro-regime and Hezbollah media networks mourned the commander, who was from the town of Hader in southern Syria.
Activist Omar al-Hariri, who is from Daraa province, published details of the incident on his Facebook page, saying that the operation may have been carried out by a drone which struck Zidan’s car.
Hariri said that Zidan had a number of identities and different names and that he had worked with Hezbollah for years. He was previously a commander of groups in southern Syria and eastern Ghouta.
According to Hariri, Zidan had mysteriously disappeared about four months ago, with news at the time circulating that he had been killed in eastern Ghouta, before it became clear that he had been summoned by Hezbollah to Lebanon and then returned to Syria after changing his identity and the nature of his work.
A Hezbollah group arrived at the area of the strike and identified the body, which had been unidentified for hours because he held an identity card with a different name. Pro-regime media reported that the man killed in the car had official papers under the name “Mohamed Naji” while removing Zidan’s corpse.
*This article was translated and edited by The Syrian Observer. The Syrian Observer has not verified the content of this story. Responsibility for the information and views set out in this article lies entirely with the author.

Suspected Hezbollah Agent, Hussein Mahmoud Yassine Arrested in Uganda With Mossad's Help
أوغندا بمساعدة جهاز الموساد تعتقل لبنانيًا عميلاً لحزب الله يدعى حسين محمد ياسين
Jerusalem Post/23 july/2019
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Yassine, who has lived and worked in Uganda since 2010, was reportedly tracked for months before his arrest at the beginning of the month. A Lebanese citizen suspected of being an undercover Hezbollah agent was recently arrested at Entebbe International Airport by Ugandan intelligence agencies with the cooperation of the Mossad. A report published by The Kampala Post on Tuesday said that Lebanese national Hussein Mahmoud Yassine was arrested on July 7 while boarding a flight to Lebanon via Addis Ababa. He had arrived at Entebbe International Airport from Tanzania earlier that day.
According to the report, the Mossad informed its Ugandan counterparts about Yassine due to the close intelligence relationship between the two countries. An anonymous intelligence source told The Kampala Post that Yassine was recruited to the terrorist group by a senior Hezbollah official called Ali Wahib Hussein, known as Abu Jihad. Yassine, who is suspected of working for the Hezbollah foreign liaison unit and has lived and worked in Uganda since 2010, was reportedly tracked for months before his arrest. According to the intelligence source, Hezbollah instructed Yassine to identify potential US and Israeli targets for terrorist attacks in Uganda; to recruit other Lebanese nationals for Hezbollah; and to attempt to recruit Muslim Ugandans to act as Hezbollah intelligence agents. The source also revealed that Yassine had already identified at least 100 Lebanese citizens living in the country for potential recruitment, including some working with telecommunications provider Africell. The US and Israeli governments, which alerted the Uganda government to potential terrorist suspects, were notified of Yassine’s arrest and demanded his immediate prosecution, the source said. The Lebanese consulate in Uganda sent a protest letter on July 10 to the Ugandan Foreign Ministry, claiming that the arrest will deter Lebanese citizens from doing future business in the country.

UK Fears Iran-Backed Terror Cells Could Attack Europe In Case Of Escalation
Jerusalem Post/23 july/2019
Intelligence agencies believe that Iran has organized and funded sleeper terrorist cells throughout Europe, including the UK.
ritish intelligence fears that Iranian-supported terrorist cells in Europe could launch attacks on the UK and the rest of the continent if the situation in the Persian Gulf escalates, according to The Telegraph.
Iran ranks behind Russia and China as the nation posing the greatest threat to British national security, according to senior intelligence officers, and the seizure of the British flagged Sten Impero only deepened concerns about Iranian aggression in MI5 and MI6. Intelligence agencies believe that Iran has organized and funded sleeper terrorist cells throughout Europe, including the UK, and could order them to carry out attacks in response to an escalation in the Gulf conflict. The cells are linked to the Lebanese Hezbollah terrorist group, according to The Telegraph. One such cell was uncovered by counter-terrorism police in 2015, with tons of explosive materials at businesses on the outskirts of London. “Iran uses proxies and they have control of a network of individuals linked to Hezbollah," said one source to The Telegraph. “Iran has Hezbollah operatives in position to carry out a terrorist attack in the event of a conflict. That is the nature of the domestic threat Iran poses to the UK.”
Although MI5 and the Metropolitan Police are sure that raids in 2015 severely disrupted Iranian terrorist activities in the UK, there are still widespread cells throughout Europe. The 2015 terror plot, which was only disclosed last month by The Telegraph, was described as "proper organized terrorism," with another source saying that enough explosive materials were stored to cause "a lot of damage." The London-based cell was part of an international Hezbollah plan to lay the groundwork for future attacks, not an isolated cell, said sources to The Telegraph. A group linked to the Iranian Revolutionary Guard carried out cyber attacks targeting British MPs and peers in 2017 and the UK Post Office, local government networks, private sector companies in 2018. In 2018, Iran delivered half a ton of TATP explosives in diplomatic packages to a civilian plane that was supposed to be transferred to Paris to carry out an attack in the city, according to the British newspaper "Independent in Arabic."
According to the report, the plane arrived from Tehran to Geneva in June 2018, following an Iranian plan to carry out a terrorist attack during a meeting of the Iranian opposition. The attack was supposed to be carried out by an Iranian intelligence official who worked at the Iranian embassy in Austria since 2014, but French intelligence thwarted the attack after the authorities arrested a Belgian couple of Iranian origin who had the explosives in their car on their way to Paris. British Prime Minister Theresa May was criticized by government officials for failing to agree to a US offer to join "Operation Sentinel," an international effort to monitor and protect naval traffic in the Arabian Gulf region.
While military officials saw the offer as an "excellent opportunity," the Prime Minister's Office "wasn't backing them up," out of concern that the UK could be seen as supporting America's hard approach to Iran, according to a government source, The Telegraph reported. A government source told The Telegraph that British officials were "embarrassed" they had been "unable to look after our own," and criticized May for delaying a decision about joining Operation Sentinel. Iain Duncan Smith, chairman of Boris Johnson's leadership campaign and the former Tory leader blamed Theresa May for making a "major miscalculation" after refusing an offer by the United States for "whatever assistance is necessary to protect British ships" in order to avoid being seen as aligned with the Trump administration.In a letter to the United Nations Security Council on Saturday, Britain said that a British-flagged tanker seized by Iran was approached by Iranian forces when it was in Omani territorial waters.
"The ship was exercising the lawful right of transit passage in an international strait as provided for under international law," Britain's UN mission wrote to the Security Council. "International law requires that the right of transit passage shall not be impeded, and therefore the Iranian action constitutes illegal interference." The letter, seen by Reuters, was also sent to UN Secretary-General Antonio Guterres. "Current tensions are extremely concerning, and our priority is to de-escalate. We do not seek confrontation with Iran," the letter read. "But it is unacceptable and highly escalatory to threaten shipping going about its legitimate business through internationally recognized transit corridors."Britain called on Iran to release the Stena Impero tanker and told the council it was working to resolve the issue through diplomatic means.
Iran Foreign Minister Mohammad Javad Zarif stressed on Monday that Iran is not looking for conflict. "It is very important for Boris Johnson as he enters 10 Downing Street to understand that Iran does not seek confrontation, that Iran wants normal relations based on mutual respect," said Zarif, referring to the new leader Britain's Tory Party who will become prime minister after Theresa May resigns, according to Radio Farda.
*Yasser Okbi/Maariv contributed to this report.

Report: Accumulating Files Press for Resumption of Cabinet Meetings
Naharnet/July 23/2019
In light of the suspension of Cabinet meetings, several pressing and important files have accumulated in the register submitted to the Cabinet’s office that require listing on the agenda in order to be addressed, the Saudi Asharq al-Awsat reported on Tuesday.
One of the most important files is the military assistance from foreign countries, and the appointment of first category employees to fill vacant positions. For example, the Head of the Supreme Council of Privatization position has a role in the Steering Committee to decide on the proposed projects according to the CEDRE Conference. The June 30 Qabrshmoun deadly incident forced the suspension of Cabinet sessions since July 2. An unnamed source following on the underway contacts to resolve the crisis, said the Cabinet must resume its meetings in light of “the paralysis of the executive power. This paralysis can not carry on because of mutual accusations between the Progressive Socialist Party and the Lebanese Democratic Party," he said.The source warned that “obstruction of Cabinet meetings must not prolong in light of the failed efforts exerted by General Security chief Abbas Ibrahim to thwart the hurdles, and the very delicate economic and monetary situation."“How long will the country remain without Cabinet meetings in this delicate economic and financial circumstances?” asked the source.

Report: PSP Says Campaign Targeting their Leader is Ongoing
Naharnet/July 23/2019
The Progressive Socialist Party said it has “become confident today” that the Qabrshmoun incident is aimed at “undermining” its leader ex-MP Walid Jumblat, al-Joumhhouria daily reported on Tuesday.
PSP sources said the efforts have failed so far to resolve the crisis sparked by the Qabrshmoun incident, “things are going in circles, suggesting that attempts targeting Walid Jumblat are ongoing,” said the sources who declined to be named. “Everyday we become more confident the issue has other dimensions, it aims to send Jumblat a message,” they added. They were referring to the insistence of the Lebanese Democratic Party of MP Talal Arslan, a rival of Jumblat, to refer the case to the Judicial Council and that it be listed on the Cabinet agenda which PM Saad Hariri refuses.
On June 30, clashes between PSP supporters and the convoy of State Minister for Refugee Affairs Saleh al-Gharib (of the LDP) in the Aley town of Qabrshmoun, left two of the latter’s guards dead and a third wounded. The minister escaped unharmed as a PSP supporter was wounded. Gharib and his party described the incident as an ambush and an assassination attempt while the PSP accused the minister’s bodyguards of forcing their way and firing on protesters. Gharib’s party has insisted that the case should be referred to the Judicial Council, a demand opposed by the PSP and its allies.The case has forced the suspension of cabinet sessions since July 2.

Mustaqbal Slams 'Attempt to Target Hariri' in Qabrshmoun Row
Naharnet/July 23/2019
Al-Mustaqbal parliamentary bloc on Tuesday slammed what it called an attempt to take a swipe at Prime Minister Saad Hariri over the ongoing dispute pertaining to the deadly Qabrshmoun incident. In a statement issued after its weekly meeting, the bloc stressed “the importance of finding judicial exits for the regrettable incident in Qabrshmoun” and called for embracing “the initiatives on which President Michel Aoun, Speaker Nabih Berri and PM Saad Hariri have agreed.”It also voiced regret over “some stances that have crossed the limits of reason and pacification to contribute to addressing wrong messages and resorting to unjustified escalation that contradicts with all the facts and the ongoing efforts to heal the rift.”The bloc added: “The attempt to target PM Hariri in this regard and the tweets aimed at entangling him in the ongoing conflict are regrettable and unacceptable and would deviate attention from the real efforts that are seeking a solution.”“The national and constitutional responsibility requires an initiative from the premiership to resolve the issue and take all necessary measures to activate the government’s work,” Mustaqbal said. Two bodyguards of State Minister for Refugee Affairs Saleh al-Gharib were killed and a third was wounded in a clash with Progressive Socialist Party supporters in the Aley town of Qabrshmoun on June 30. The minister escaped unharmed as a PSP supporter was wounded. Gharib and his party have described the incident as an ambush and an assassination attempt while the PSP has accused the minister’s bodyguards of forcing their way and firing on protesters. Gharib’s party has insisted that the case should be referred to the Judicial Council, a demand opposed by the PSP and its allies.
The case has forced the suspension of cabinet sessions since July 2.

Bassil Backs LF in Controversy over Regulating Palestinian Labor
Naharnet/July 23/2019
Free Patriotic Movement chief Jebran Bassil on Tuesday said the FPM supports the Lebanese Forces in the row over regulating Palestinian labor in Lebanon. “The bloc supports the LF in the issue of enforcing the labor law and we hope they will continue with it,” said Bassil in response to a reporter’s question. He was speaking after the weekly meeting of the Strong Lebanon bloc. “The bloc backs a stricter implementation of the labor law, and the main reason is providing job opportunities for the Lebanese amid the unprecedented rise in unemployment levels,” Bassil said. “This issue targets all foreigners and not a certain group,” the FPM chief added, warning that “anything that contributes to normalizing Syrian and Palestinian presence in Lebanon is a form of naturalization.”Last month, the Labor Ministry gave companies a one-month deadline to acquire the necessary work permits. After the grace period expired around two weeks ago, it started inspections, closing down non-compliant establishments and issuing others with warnings.Critics have said the measure essentially targets Syrians who have fled the war next door, but Palestinian refugees living in Lebanon also fear they will be hit. Palestinians in Lebanon are exempt from paying for work permits, the U.N. refugee agency says.But Palestinian business owners must still register and pay a quarter of the standard fee. Labor Minister Camille Abu Suleiman denied the inspections had overwhelmingly affected Palestinians."Of the 550 violations registered… only two concerned large companies owned by Palestinians," he said. "The Palestinian reaction is incomprehensible," the minister said, referring to protests that have engulfed Palestinian camps across the country. The Palestinian ambassador in Beirut, Ashraf Dabbour, has called on the Lebanese government to exempt Palestinians from these measures. Palestinian movement Hamas for its part called for "the immediate end to all closures."Azzam al-Ahmed, from the Palestine Liberation Organization, discussed the measures with Lebanese officials, saying they went against Lebanese-Palestinian efforts "to organize the residency, work and rights of Palestinian refugees in Lebanon."Around 174,000 Palestinian refugees live in 12 camps across the country, a one-off government census said in 2017. In 2010, Lebanon's parliament revoked a ban that had barred them from tens of professions for years, restricting them to jobs in fields such as construction and farming. But Palestinians are still not permitted to work in professions reserved for Lebanese citizens such as medicine, law, the army, and police. Palestinians began taking refuge in Lebanon with the creation of Israel in 1948, setting up camps that have since transformed into bustling, urban districts. Their presence has been controversial, with many blaming them for the start of Lebanon's 1975-1990 civil war. Lebanon says it hosts around 1.5 million Syrians, after they fled the eight-year conflict at home, who have been accused of sparking a series of economic woes in the country.

Industry Ministry to Shut Down Factories Polluting Litani
Naharnet/July 23/2019
Industry Minister Wael Abu Faour declared in a press conference on Tuesday that the ministry is going to shut down 14 factories located around the Litani river and basin for failing to comply with the ministry’s environmental instructions. “Only 49 factories out of 63 have corrected their environmental violations. Those who failed to comply will be shut down temporarily until they correct their violations,” announced the minister. “The violations located around the river are catastrophic and affect the plantings and surrounding areas,” he added, noting that violators will be given the chance to reopen their factories after correcting the violations. “The Ministry has pledged earlier to reduce pollution in the River to zero,” said Abu Faour. The Ministry of Industry had earlier set September as the deadline for factories located around the Litani River and basin to rectify their environmental violations. The level of pollution has reportedly caused an unprecedented rise in cancer cases in the towns and villages surrounding the River.

Kataeb Calls for ‘Radical Reform’ and ‘Reinstating’ the Political Authority
Naharnet/July 23/2019
The Kataeb party criticized the newly endorsed 2019 state budget warning that the country faces the danger of “collapse” if radical reforms were not reinstated. “Kataeb party regrets what the 2019 state budget has reached in the Parliament. Instead of stopping the waste of public funds, it imposed new taxes on citizens. Instead of shutting down the illegal crossings and stopping tax evasion, it swooped on the rights of retired servicemen,” said Kataeb chief Sami Gemayel at the weekly politburo Kataeb meeting. The opposition Kataeb chief added: “The country stands in front of two choices, either a radical reform or collapse. No compromises. The situation is dangerous and intolerable to procrastinate.”Gemayel renewed the party’s demand for “early elections which will give rise to a fair, effective and capable authority to manage the country.” “Kataeb calls for the implementation of the decisions of the table of dialogue in terms of Palestinian disarmament inside and outside the (refugee) camps, and the application of Lebanese laws, especially the labor law, on Lebanese nationals, displaced persons and refugees,” he added.

Soaid Defends Mashrou' Leila Gig as Organizers Say Working on Solution
Agence France Presse/Naharnet/July 23/2019
They sparked controversy in Egypt, and were banned from performing in Jordan. Now alternative rock band Mashrou' Leila might have a concert canceled at home in Lebanon over alleged offense to religion.
But former lawmaker for Byblos, Fares Soaid, has come to the band's defense. "Boycott if you want, it's your right. But let Lebanon retain its taste of freedom," he wrote on Twitter. The band’s supporters and opponents are clashing on social networking websites, amid calls for boycotting and banning the concert. Some users, including Free Patriotic Movement official Naji Hayek, have openly threatened to resort to violence to prevent the gig from taking place. The Maronite Archbishopric of Byblos has meanwhile issued a statement calling for “barring the Mashrou’ Leila performance on the land of holiness, culture and history,” in reference to the city of Byblos. The band had been banned from performing in Jordan in 2016 over similar accusations. The director of the Byblos International Festival has said that there are efforts to solve the issue out of the public eye. With its unique blend of intricate indie rock and enigmatic Arabic poetry, the band has become one of the Middle East's biggest bands. Its lyrics touch on sexuality but have also tackled the curses of Lebanese and Arab politics, materialism and social strife, often with satirical twists.

The Latest English LCCC Miscellaneous Reports And News published on July 23-24/2019
Johnson Confirmed as Next Conservative Party Leader and British Prime Minister
Asharq Al-Awsat/Tuesday, 23 July, 2019
Brexit hardliner Boris Johnson has won the race to lead Britain's governing Conservative Party, and will become the country's next prime minister. He defeated his rival Jeremy Hunt overwhelmingly in a vote of Conservative Party members. His victory catapults the United Kingdom towards a Brexit showdown with the EU and towards a constitutional crisis at home, as British lawmakers have vowed to bring down any government that tries to leave the bloc without a divorce deal. Theresa May will leave office on Wednesday after going to Buckingham Palace to see Queen Elizabeth, who will formally appoint Johnson before he enters Downing Street. The victory is a triumph for the 55-year-old Johnson, an ambitious but erratic politician whose political career has veered between periods in high office and spells on the sidelines. Johnson has vowed that Britain will quit the European Union, "come what may," on the scheduled Brexit departure date of October 31 even if it means leaving without a divorce deal. But he faces a rocky ride from a Parliament determined to prevent him from taking the UK out of the bloc without a withdrawal agreement. Johnson said as prime minister he will "deliver Brexit, unite the country" and defeat the Labor opposition. In a brief speech Tuesday meant to rally the party faithful, Johnson sought to radiate optimism following his victory and promised to deliver Brexit. Within half an hour of his victory, US President Donald Trump had tweeted his congratulations, adding: "He will be great!"Michel Barnier, the European Union's chief Brexit negotiator, said he looks forward "to working constructively" with Boris Johnson. He added he is looking to push through the ratification of the withdrawal agreement negotiated by May, but said nothing about Johnson's claim that the deal must be renegotiated. Barnier said the EU would be willing to adapt a political text which goes alongside the withdrawal agreement. EU leaders have long said that they will not reopen the 585-page legal text. "We are ready also to rework the agreed Declaration on a new partnership," said Barnier.
The rise of Alexander Boris de Pfeffel Johnson, often referred to as simply "Boris", to the top of British politics is the grandest twist so far in a career that has taken him from journalism via TV-show fame, comedy and scandal into the political brinkmanship of Britain’s Brexit crisis.
Born in New York, Johnson was educated at Eton, Britain’s most exclusive school, and at Balliol College, Oxford. He began his career at a management consultancy in the City of London but dropped out after a week. He then turned to journalism, but was sacked from the Times newspaper for making up quotes. Hired by the Daily Telegraph, Johnson infuriated European officials and delighted then-prime minister Margaret Thatcher by lampooning the European Economic Community with a host of sometimes misleading reports from Brussels. After entering politics, he was sacked from the Conservative Party’s policy team while in opposition for lying about an extramarital affair. But his sometimes shambolic personal appearance and disarmingly self-deprecating confidence have allowed him to survive both gaffes and scandal. He served two terms as London mayor, from 2008 to 2016.
In 2016, he became one of the most recognizable faces of the Brexit campaign, which won the referendum by 52% to 48%."I know that there will be people around the place who will question the wisdom of your decision, and there may be some people here who still wonder what they have done," Johnson told party members at the Queen Elizabeth conference center opposite parliament. "I will just point out to you that no one party, no party has a monopoly of wisdom." Johnson said. "Do you look daunted? Do you feel daunted?I don't think you look remotely daunted to me."

US Sanctions Squeeze Iran Middle Class, Upend Housing Sector
Asharq Al-Awsat/Tuesday, 23 July, 2019
Iran analyst Adnan Tabatabai said he believes Iranians are "reluctant to take their grievances to the street" for now, amid fear of further chaos and pushback by the authorities. The economy contracted by 4.9% from March 2018 to March 2019. It is expected to shrink by an additional 5.5% in the year ending March 2020, according to Iranian figures. The official inflation rate has risen to 35%, up from 23.8% in the March 2018 to March 2019 period. The housing and construction sector, which makes up about one-quarter of the economy and is the top destination for savings and investments, has been thrown out of balance. Property owners are reluctant to sell and landlords are sharply raising rents because of the currency collapse, said Ali Dadpay, a finance professor at the University of Dallas. He said an estimated 490,000 homes stand empty in and around the capital, including more than 40,000 units added this year.
At the same time, construction lags far behind the need of 1.2 million new homes a year nationwide, said Hesam Oghabaei, deputy head of the Tehran association of real estate agents. He said about 25% of Tehran's residents live in rented apartments, and the vast majority cannot afford the price increases.
The Peyman family — elderly parents and eight adult children — own a 110 square meter (1,180 square feet) apartment in Tehran's District 12, a poor area plagued by drug addiction and other social problems. More than a decade ago, the Peymans rented the apartment, and used the extra income to move to a nicer area. Now they are back in District 12, renovating the old apartment after being squeezed out of the good neighborhood by a rent hike. "We have to come here because we have no other choice," said the patriarch, Moslem, 65. Four unmarried children will live with him and his wife. Across-the-board price increases put marriage out of reach. One of Tehran's newest areas, District 22, is under construction on the northwestern edge of the city. It consists of apartment high-rises and shopping malls arranged around an artificial lake called Chitgar. Maryam Alidadi and her husband bought an 82-square-meter (880 square feet) apartment here in December, downsizing by a third from their rented home in a more affluent area. "Our standard of living has dropped considerably," she said, adding that she now regrets having quit her government job four years ago when her son Rami was born. The US sanctions have proven particularly devastating for Iran's large middle class, said Dadpay, the finance professor. "This is the economic class that depends on the global economy, depends on their skillsets, and most of them are earning fixed incomes," he said. The economic freefall could shape Iran's domestic politics, with parliament elections in February posing the first test. Middle class voters have traditionally favored reformist candidates but might sit out voting because of a lack of alternatives, inadvertently boosting hard-liners. Pro-reform politicians who favor a greater opening to the West are closely linked to the nuclear deal. With the deal faltering, the hard-liners, including the Revolutionary Guard, are becoming more entrenched, said Geranmayeh, the analyst.

Polls Predict Former PM Barak’s Loss in Elections
Tel Aviv - Nazir Majali/Asharq Al-Awsat/Tuesday, 23 July, 2019
Former Israeli prime minister and defense minister, Ehud Barak, will not exceed the requirement and his party will not win if parliamentary elections were to be held on Tuesday. Meanwhile, both Likud, chaired by Prime Minister Benjamin Netanyahu, and Kahol Lavan are projected to lose seats to smaller parties in September.Likud, which currently holds 39 seats is projected to win 30 seats in the September election, while the main opposition party Kahol Lavan would garner 29 seats, the poll predicts. The right-wing camp will receive 65 seats, while the center, left and Arab camps have 55 seats. However, the recent development is Avigdor Lieberman's Yisrael Beiteinu would garner from five to nine or 10 seats. Yisrael Beiteinu has been growing since the campaign against the dominance of religious parties over Netanyahu. Earlier, Lieberman said that he will not nominate Netanyahu for the government, and will require those who name him as prime minister to the first pledge to form a government of national unity without religious parties and without political blackmail from the right or left. Lieberman demands that the government include three parties, mainly: Likud, the generals and Yisrael Beiteinu. But the generals’ party refuses to enter into a single government with Netanyahu and conditions its participation with overthrowing of the Likud. This means Israeli parties will face a crisis after the upcoming elections, scheduled for 17 September 2019. Small parties on both sides of the political map are trying to unite but their efforts are failing. Ehud Barak couldn't achieve his goal of leading a large bloc to topple Netanyahu. He cannot form an alliance with the three proposed parties. Although recent polls predicted he’d win 15 seats only, today’s poll said Barak could receive 4 seats only, the minimum for the Knesset. The majority of recent polls indicate he will fail to overcome the required percentage. Several former Israeli officers have answered the call of left-wing party leaders to accept Barak's party. Meanwhile, a group of other activists has been calling on the parties not to unite with Barak because he is a “suspect of corruption like Netanyahu.”

Arab League, African Union Agree to Enhance Cooperation
Cairo - Sawsan Abu Hussein/Asharq Al-Awsat/Tuesday, 23 July, 2019
The Secretary-General of Arab League (AL), Ahmed Aboul Gheit, and the Chairperson of the African Union Commission (AUC), Moussa Faki Mahamat, presided a meeting of the Arab-African Cooperation, the highest mechanism for political coordination between the two organizations. The talks witnessed an agreement between the two sides on a number of steps aimed at enhancing joint coordination and integrated work between the League and the Union in handling crises and security challenges in the Arab and African regions. The officials discussed a political settlement to the Libyan crisis, democratic transition in Sudan, and security and stability in Somalia, as well as supporting efforts to promote stability, development and regional cooperation in the Horn of Africa. They also addressed combating terrorism in Lake Chad and Sahel region and all threats to security and stability of African and Arab states, according to an official source at the League.The source added that the two sides also discussed the latest developments in the Palestinian issue. Aboul Gheit highly appreciated the steadfast positions adopted by the Union in support of Palestine and the Palestinians’ right to establish their independent state with East Jerusalem as its capital. The Sec-Gen also commended the advanced coordination between the League and the Union in defense of the Palestinian, particularly in the United Nations General Assembly and other international arenas. The source noted that the meeting focused on discussing ways to activate and complete the implementation of various programs and frameworks of cooperation between the Arab world and Africa, especially in the development of the joint work plan aimed at improving the Arab-African partnership. Projects of the plan will be prepared for submission to Arab and African foreign ministers, in preparation for presenting it before state leaders and presidents during the upcoming Arab-African summit. The source stated that Aboul Gheit lauded the cooperation between the Arab League and the African Union, and renewed his commitment to develop this partnership in all that would serve the common objectives of the two organizations, and is in favor of Arab and African states. In this context, Aboul Gheit and Mahamat agreed to update the official cooperation agreement between the League and the Union, signed in 2007, to establish further mechanisms for coordination and institutional integration between them. They also agreed to hold the next general meeting of cooperation between the two organizations under their joint presidency in Cairo mid-2020.

Syria’s HNC to Unveil Plan to Counter Turkey’s Decision to Expel Refugees
Riyadh - Fatehelrahman Yousif/Asharq Al-Awsat/Tuesday, 23 July, 2019
The Syrian High Negotiations Committee (HNC) said that it will soon reveal a plan that would address the situation of refugees in Turkey, while condemning the international community and United Nations’ silence on Russian violations in northern Syria. During a press conference in Riyadh, head of the HNC Nasr al-Hariri revealed that the Committee is working with Turkish authorities to reach a solution for the refugee issue and it will be revealed in the coming days. He noted that the refugees did not willingly leave their country, but were forced out by oppression and torture. Hariri asserted that each country has the right to execute its laws, adding that the HNC informed Turkish officials of their willingness to cooperate and reach a mechanism that preserves the rights of the refugees and takes into account Turkish laws.  He suggested granting refugees dedicated cards for either a temporary or tourist stay, rejecting any measures that do not respect the rights and dignity of the refugees. The number of refugees has exceeded 4 millions in Turkey, according to Hariri, who acknowledged that some countries view them as a burden. However, he added that the displaced have made social and economic contributions in countries of asylum. Hariri stated that animosity and rhetoric against refugees is rising in Turkey and elsewhere, which some have exploited for political gain. Turning to Russia’s offensive in the northwestern Idlib province, he said its attempts to launch a political solution to the crisis and its war against terrorism are only a cover for its crimes against the Syrian people. He pointed out that Russia carried out over a thousand raids on a popular market in Maarat al-Numan in Idlib. Hariri attributed the Russian offensive to the military crisis Moscow is facing in Syria’s northern region. He noted that the campaign is approaching its third month without achieving any results, however, the Free Syrian Army (FSA) has taught the Russians and the regime “harsh lessons.”He hoped that the Arab League “would remember an Arab country called Syria and protect its people against the assault by Russia, Iran and their allies.”Moreover, he stated that an international probe proved that the Syrian regime had used chemical weapons in Ghouta in 2017, revealing that the HNC will set up workshops to unveil the truth to the whole world and expose the regime’s lies. On the political level, Hariri admitted he is “ashamed” to discuss the constitutional committee or any other political affair in light of recent developments on the ground and the massive military escalation.The United Nations may finalize the formation of the constitutional committee in the coming days, but it is impossible to hold a meeting and proceed any further given the escalation in Idlib, he noted, adding that reaching a full ceasefire in Syria that respects the de-escalation agreement signed in September was a priority.

Israel Condemns Attacks on Saudi Visitor
Agence France Presse/Naharnet/July 23/2019
Israeli government officials on Tuesday condemned Palestinians who hurled abuse and chairs at a Saudi blogger visiting Jerusalem as a guest of Israel. The Saudi visitor, named by Israeli public radio as Mohammed Saud, was one of six invitees from Arab states brought to Israel by its foreign ministry to give them fresh viewpoints on the situation.Hassan Kabia, an Israeli foreign ministry spokesman, called it "barbaric" behavior. But he would not identify the visitors, describing them only as "social activists, bloggers and media people."Such visits have been held before, but Iraq and Saudi Arabia were taking part for the first time, the foreign ministry said. Video posted online showed mainly young Palestinians spitting, cursing and throwing plastic chairs at Saud as he walked on Monday through the Old City of Israeli-annexed east Jerusalem.The spitting and abuse continued as he toured the al-Aqsa mosque complex.
"Go and pray with the Jews," one man shouted. "What are you doing here?"The al-Aqsa mosque compound is the third-holiest site in Islam. Jews refer to it as the Temple Mount, revered as the location of the two biblical-era temples, and consider it their holiest place. It is located in east Jerusalem, occupied by Israel in the 1967 Six-Day War and later annexed in a move never recognized by the international community. Israeli Prime Minister Benjamin Netanyahu said he met with the visitors on Tuesday and "they expressed their wish that the Arab public would come to Israel and strengthen ties."Ofir Gendelman, a spokesman for Netanyahu, described Saud as a "peace activist.""When he came to pray at the #AlAqsaMosque, Palestinian thugs attacked him & spat on him, thus defiling this holy place," Gendelman wrote on Twitter Tuesday. But the Islamist group Hamas, which rules the Gaza Strip, said all Arabs and Muslims should boycott the Israelis in solidarity with the Palestinians. "Hamas considers the visit of an Arab media delegation to the Israeli occupation a stab in the back of the Palestinian people and a dangerous sign of accelerating normalization with the Israeli occupation," it said in a statement. The visit comes as Israel seeks to improve ties with Gulf Arab countries, with which it has no formal diplomatic relations.Those states have held off offering Israel formal recognition due to its continuing occupation of Palestinian territory, but relations have warmed of late, largely due to common concerns over Iran. The journalists were to visit Jerusalem's Yad Vashem Holocaust memorial, parliament and holy sites, among others, the foreign ministry said in a statement. The aim was to expose journalists "some of whom come from countries that do not have diplomatic relations with Israel -– to Israeli positions on diplomatic and geopolitical issues," it added. Jordan, one of only two Arab countries along with Egypt that have diplomatic relations with Israel, was also participating.

UAE Not Leaving War-Torn Yemen despite Drawdown
Agence France Presse/Naharnet/July 23/2019
The United Arab Emirates, part of a Saudi-led military coalition, is not leaving war-torn Yemen despite an ongoing drawdown and redeployment of Emirati forces, a UAE minister has said. "Just to be clear, the UAE and the rest of the coalition are not leaving Yemen," minister of state for foreign affairs Anwar Gargash said in an opinion piece published Monday in The Washington Post. "While we will operate differently, our military presence will remain. In accordance with international law, we will continue to advise and assist local Yemen forces." The UAE announced earlier this month it was drawing down and redeploying troops in Yemen, where a years-long conflict between government forces -- backed by the Saudi-led coalition -- and Iran-aligned Huthi rebels has pushed the country to the brink of famine. The UAE is a key partner in the military coalition which intervened in Yemen in 2015 to back the internationally-recognised government of President Abedrabbo Mansour Hadi against the rebels. Gargash said Huthis should see the UAE move as a "confidence-building measure to create new momentum to end the conflict"."As the United Arab Emirates draws down and redeploys its forces in Yemen, we do so in the same way we began -- with eyes wide open," he said. "There was no easy victory and there will be no easy peace. "But now is the time to double down on the political process." The warring sides have fought to a stalemate, and several rounds of UN-sponsored talks, the last held in Sweden in December, have failed to implement any deal to end the war. Since 2015, tens of thousands of people -- mostly civilians -- have been killed in the conflict described by the United Nations as the world's worst humanitarian crisis.

S. Korea Says Fired Warning Shots at Russian Military Jet
Agence France Presse/Naharnet/July 23/2019
South Korea said it fired warning shots at a Russian military aircraft on Tuesday after it violated the country's airspace off its east coast. The Russian jet breached South Korean airspace twice prompting the Air Force to scramble fighter jets and fire warning shots, an official at the Joint Chiefs of Staff told AFP. The first violation occurred just after 9:00 am (midnight GMT Monday) and lasted three minutes. The plane returned half an hour later, breaching the airspace for four minutes this time, the South's military said. In response, the Air Force deployed multiple F-15k and F-16k jets to intercept the plane and fired flares after sending a message to the aircraft. The official said it was the first time a Russian plane has violated South Korean airspace, adding that the military was investigating the matter. The encounter occurred near the easternmost islets of Dokdo, disputed islands controlled by the South but claimed by Japan, the military said. Seoul's defence ministry plans to lodge a protest to Russian officials later in the day. There was no immediate comment from Moscow on the incident.

'Hamas' Consolidates Relations With Tehran, Pending Normalization With Damascus
Ramallah - Kifah Ziboun/Asharq Al-Awsat/Tuesday, 23 July, 2019
A visit by a senior Hamas delegation to Iran has strengthened ties between the two sides for the first time in eight years, since the deterioration of relations due to a dispute over the Syrian crisis. Sources from the movement told Asharq Al-Awsat that the relationship with Iran was restored few years ago, but remained tense and went through unstable stages before being strongly boosted in the recent period. The sources revealed that the Hamas delegation has secretly met with the leadership of the Iranian Revolutionary Guards to discuss the movement’s military and financial capabilities. “The meeting discussed a joint coordination mechanism and the appointment of a leader from the movement who will be responsible for the direct and immediate communication,” the sources said. The IRGC officials expressed their readiness to return to host members of Al-Qassam brigade – Hamas’ military wing - to gain new military expertise, stressing at the same time that the financial support for Hamas and its factions would increase and that economic pressure on Iran would not prevent it from supporting the “Palestinian, Lebanese and Yemeni resistance.”According to the source, the movement was open to the normalization of relations with Syria, but despite an Iranian mediation, there seems to be reservations from the Damascus side. Relations with Syria deteriorated after the Syrian revolution in 2011 and the departure of Hamas leaders from Damascus. Iran’s spiritual leader’s adviser Kamal Kharazi met on Monday with the Hamas delegation, presided by the deputy head of the movement’s political bureau, Saleh al-Arouri. He stressed following the meeting that Iran’s relations with Hamas were “important and growing”.

Palestinians Hold General Strike at Refugee Camps against Lebanese Labor Regulations
Beirut - Paula Astih/Asharq Al-Awsat/Tuesday, 23 July, 2019
The week-long general strike at the majority of Palestinian refugee camps in Lebanon continued in protest against the Labor Ministry’s crackdown on foreign workers who do not hold a work permit. Prime Minister Saad Hariri, Speaker Nabih Berri and the Hezbollah party urged Labor Minister Camille Abu Suleiman to exempt Palestinian workers from the crackdown, but to no avail. The Labor Ministry and deputies and leading figures from the Lebanese Forces asserted that the law should be implemented on all foreign workers, without exception. Palestinian leaderships are meanwhile, counting on cabinet to issue a decision that would end the crisis, which has been fueling tensions at refugee camps. The government meetings have, however, been put on hold since early June, pending a solution to a crisis over demands to refer to the Judicial Council the killing of two aides to State Minister for Refugee Affairs Saleh al-Gharib in the Druze area of Aley. Sources from the Palestinian Fatah movement told Asharq Al-Awsat: “The strike will continue with the blessing of all factions, without exception, and the people, given the Ministry’s insistence to forge ahead with the measures against Palestinian workers and businesses.”
Several businesses owned by Palestinians were shut down because the owners do not have a work permit, although their establishments are registered under the Lebanese law, they revealed. “The Labor Ministry insists on the work permit, although Palestinians are in Lebanon as refugees and therefore should not be treated as foreign workers,” the sources said. They said the Palestinians are awaiting a cabinet decision in this regard after realizing that the Labor Minister would not back down from his decision. Sources on the ground told Asharq Al-Awsat that the strike was observed at most Palestinian camps. Meanwhile, LF sources told Asahrq Al-Awsat that the Labor Minister insists on implementing the law despite the political and popular pressure. “The prime minister never asked Abu Suleiman to withdraw his decision, as some try to claim,” the sources added.

Egypt Sentences 14 to Life in Jail for Forming ‘ISIS Students Cell’
Cairo - Walid Abul Rahman/Asharq Al-Awsat/Tuesday, 23 July, 2019
An Egyptian court sentenced on Monday 14 people to prison, in terms ranging from three to 25 years for joining the ISIS group in Syria and Iraq. The Giza Criminal Court sentenced 11 people to life sentence, which is 25 years in jail in Egypt, and another three received three to 15 years in jail. The defendants were accused of receiving training to carry out hostile operations in Egypt, in the case known as “ISIS Students Cell.” Between 2016 and 2018, one of the suspects established and led a terrorist group, calling for violating the constitution and laws, preventing state institutions and public authorities from carrying out their work, attacking people’s personal freedom and public rights and freedoms and harming national unity and social peace. Another defendant was accused of inciting another to commit terrorist crimes. Other defendants were accused of receiving physical and military training while one was accused of training them to commit terrorist crimes in the country. They “used Facebook in their correspondence about their whereabouts and movements inside the country and abroad,” said investigators. Meanwhile, the Eastern Military Court sentenced nine defendants to death, 19 to life in prison, four to 10 years and four to five to seven years on charges of carrying out attacks against 155 targets, including officers, police personnel and detectives and bombing diplomatic and security installations using booby-trapped vehicles.

Egypt, EU Agree on Future Projects for 2020
Cairo - Asharq Al-Awsat/Tuesday, 23 July, 2019
Egyptian officials held a meeting with European Union Ambassador to Egypt Ivan Surkos to discuss future projects between Egypt and the European Union for 2020. The meeting was attended by representatives for 11 ministries and tackled future projects in the water, energy, trade and local development sectors. The 110 million euros-worth projects come as part of the EU 500 million euros Single Support Framework (SSF) to Egypt during the period between 2017 and 2020. Surkos explained that the meeting was held to agree on projects between Egypt and the EU for the year 2020, which aim at boosting the capacity of government bodies to effectively achieve reforms in the overall framework. He also pointed out that the SSF is in line with Egypt’s vision for sustainable development. “My neighbor's strength is my strength. We believe this in the EU, and we apply it in our external relations,” said Surkos.
“Egypt is our most important neighbor in the Southern Neighborhood, and we have strategic relations that have developed considerably over the years,” he noted during the celebration of Europe Day. He stressed that the EU is working to increase this partnership with Egypt, pointing to its keenness to support the private sector in Egypt. The EU coordinates on yearly basis with the Ministry of Investment and International Cooperation, future projects, Surkos said, stressing that the EU is a reliable partner of Egypt. Minister of Electricity and Renewable Energy Mohamed Shaker, for his part, said that the main objective of cooperation with the EU is to increase reliance on renewable energy, increase its share of the total energy produced in Egypt and improve the efficiency of production and distribution. While Minister of Investment and International Cooperation Sahar Nasr said the EU is one of the most important international development partners and provides funding worth half a billion dollars during the current funding strategy until 2020. She said the SSF funds water and sanitation projects, civil society, vocational training, administrative reform, internal trade, cultural heritage and public finance. Nasr added that an international conference will be held in the Suez Canal in cooperation with the EU, explaining that it will focus on the renewable energy sector, facilitating measures to inject more investments into Egypt and supporting the local development program.

The Latest LCCC English analysis & editorials from miscellaneous sources published on July 23-24/2019
European Union: A Massive Expansion of Top-down Powers
Soeren Kern/Gatestone Institute/23 July/2019
https://www.gatestoneinstitute.org/14584/eu-top-down-powers
An examination of von der Leyen's main policy proposals reveals that she is calling for a massive expansion of top-down powers of the European Commission. Her proposals would substantially increase the role of Brussels in virtually all aspects of economic and social life in Europe — all at the expense of national sovereignty.
Von der Leyen warned that Brussels would overrule EU member states opposed to her tax overhaul... She called for a comprehensive "European Rule of Law Mechanism" to ensure the primacy of EU law over the national laws of EU member states. She warned that there would be financial consequences for member states that refuse to comply.... She called for a change in rules so that the EU could act even without the unanimous consent of EU member states.
"What you've seen from Ursula von der Leyen today is an attempt by the EU to take control of every single aspect of our lives. She wants to build a centralized, undemocratic, updated form of Communism that will render [obsolete] nation state parliaments, where the state controls everything, where nation state parliaments will cease to have any relevance at all." — Nigel Farage, European Parliament, July 16, 2019.
Former German Defense Minister Ursula von der Leyen, who has been narrowly confirmed as the next President of the European Commission, promises an ambitious left-leaning policy program on climate change, taxes, migration and the rule of law.
Former German Defense Minister Ursula von der Leyen has been narrowly confirmed as the next President of the European Commission, the powerful administrative arm of the European Union.
In a secret ballot in the European Parliament on July 16, von der Leyen, a close ally of German Chancellor Angela Merkel, received 383 votes, only nine more than the 374 required — the lowest margin since the position of President was established in 1958. She will take over from Jean-Claude Junker in November 2019 for a five-year term.
Before the vote, von der Leyen promised an ambitious left-leaning policy program on climate change, taxes, migration and the rule of law. Many of her pledges — which would require transferring yet more national sovereignty to unelected bureaucrats in Brussels — appeared aimed at enticing support for her candidacy from Greens and Socialists in the European Parliament.
In the final vote, however, the Socialists were divided in their support for von der Leyen and the Greens formally opposed her. Interestingly, von der Leyen won with the support of eurosceptics in Central and Eastern Europe after she publicly criticized the way the EU has treated them due to their opposition to mass migration.
In the past, von der Leyen has called for the creation of a European superstate: "My aim is the United States of Europe, on the model of federal states such as Switzerland, Germany or the United States," she said in an August 2011 interview with the German newsmagazine Der Spiegel. More recently, however, she appeared to scale back her ambitions: she said that her dream of a federalized EU had become "more mature and more realistic." In comments apparently aimed at appeasing Central and Eastern Europe, she added: "In the European Union, there is unity in diversity. That is different from federalism. I think that is the right way."
An examination of von der Leyen's policy proposals, however, reveals that she is calling for a massive expansion of top-down powers of the European Commission. Her proposals would substantially increase the role of Brussels in virtually all aspects of economic and social life in Europe — all at the expense of national sovereignty.
Following is a brief summary of von der Leyen's main proposals for the next five years, as outlined in a 24-page document titled, "My Agenda for Europe":
Climate Change
Von der Leyen called for the European Union to be "carbon neutral" by 2050. She pledged to propose a "European Green Deal" during her first 100 days in office. The deal would include the first "European Climate Law" to enshrine the 2050 climate neutrality target into law: "Carbon emissions must have a price. Every person and every sector will have to contribute."
She also pledged to introduce a "Carbon Border Tax" that would apply to non-European companies, to ensure that European companies "can compete on a level playing field." In addition, a "European Climate Pact" would "commit to a set of pledges to bring about a change in behavior, from the individual to the largest multinational."
Von der Leyen's social reengineering scheme would be paid for by European taxpayers: A "Sustainable Europe Investment Plan" would "support €1 trillion of climate investment over the next decade in every corner of the EU." She also vowed that the EU "will lead international negotiations to increase the level of ambition of other major emitters by 2021."
Economy, Society and Taxation
Von der Leyen vowed to prioritize the further deepening of the Economic and Monetary Union. She pledged to introduce a "Budgetary Instrument for Convergence and Competitiveness," a "European Deposit Insurance Scheme" and complete a "Banking Union." She also vowed to strengthen the international role of the euro.
She pledged to integrate European economic governance with the United Nations Sustainable Development Goals. Von der Leyen proposed a legal instrument to ensure a minimum wage for workers in all 28 EU member states. She also proposed a "European Unemployment Benefit Reinsurance Scheme," a "European Child Guarantee," and a "Work-Life Balance Directive," to "encourage better sharing of responsibilities between women and men."
Von der Leyen also proposed a "European Gender Strategy" to ensure "equal pay for equal work," and pledged to introduce "binding pay-transparency measures." She vowed to set quotas for gender balance on company boards. She also promised a fully gender-equal European Commission: "By the end of my mandate, I will ensure we have full equality at all levels of Commission management. I will accept nothing less."
Von der Leyen vowed to overhaul the European taxation system: "One of the key foundations of our social market economy is that everybody pays their fair share. There can be no exceptions." She promised to prioritize taxation of big tech companies: "If by the end of 2020 there is still no global solution for a fair digital tax, the EU should act alone." She pledged to impose a common consolidated corporate tax base: "Differences in tax rules can be an obstacle to the deeper integration of the single market. It can hamper growth, particularly in the euro area where the economic ties are stronger. We need to be able to act." She warned that Brussels would overrule EU member states opposed to her tax overhaul: "I will make use of the clauses in the Treaties that allow proposals on taxation to be adopted by co-decision and decided by qualified majority voting in the Council. This will make us more efficient and better able to act fast when needed."
Technology
Von der Leyen pledged to develop joint EU standards for 5G networks, and to achieve "technological sovereignty" in critical technology areas: "We will jointly define standards for this new generation of technologies that will become the global norm." She added: "In my first 100 days in office, I will put forward legislation for a coordinated European approach on the human and ethical implications of Artificial Intelligence."
Meanwhile, a new EU "Digital Services Act" would "upgrade our liability and safety rules for digital platforms, services and products, and complete our 'Digital Single Market.'" A joint "Cyber Unit" would "speed up information sharing and better protect ourselves."
Von der Leyen also called for a "European Education Area" to "change the culture of education" and a "Digital Education Action Plan" to "rethink education."
Rule of Law, Migration and Internal Security
Von der Leyen called for a comprehensive "European Rule of Law Mechanism" to ensure the primacy of EU law over the national laws of EU member states. She warned that there would be financial consequences for member states that refuse to comply: "I intend to focus on tighter enforcement, using recent judgements of the Court of Justice showing the impact of rule-of-law breaches on EU law as a basis. I stand by the proposal to make the rule of law an integral part of the next Multiannual Financial Framework." She added: "The Commission will always be an independent guardian of the Treaties. Lady Justice is blind – she will defend the rule of law wherever and by whomever it is attacked."
Von der Leyen also called for a "New Pact on Migration and Asylum" in which a reinforced European Border and Coast Guard Agency would take over border control responsibilities from EU member states: "I want to see these [EU] border guards with the ability to act at the EU's external borders in place by 2024."
Meanwhile, a new "Common European Asylum System" would require all EU member states to offer asylum to migrants who request it: "We all need to help each other and contribute." In addition, the European Public Prosecutor's Office "should have more muscle and authority" and "be able to investigate and prosecute cross-border terrorism."
European Defense and Trade
Von der Leyen, who previously called for the creation of a European Army, pledged to take "further bold steps in the next five years towards a genuine European Defense Union." She added: "We need an integrated and comprehensive approach to our security."
She also said: "I believe Europe should have a stronger and more united voice in the world." She called for a change in rules so that the EU could act even without the unanimous consent of EU member states: "To be a global leader, the EU needs to be able to act fast: I will push for qualified majority voting to become the rule in this area. I will work closely with the High Representative/Vice-President to ensure a coordinated approach to all of our external action, from development aid to our Common Foreign and Security Policy."
In the area of trade, von der Leyen said that she would appoint a "Chief Trade Enforcement Officer" to improve compliance and enforcement of EU trade agreements. She also said that she would lead efforts to update and reform the World Trade Organization: "We must ensure that we can enforce our rights, including through the use of sanctions, if others block the resolution of a trade conflict."
Reactions
Von der Leyen's paper-thin endorsement by the European Parliament showed that she has as many detractors as supporters. Brexit Party leader Nigel Farage may be her biggest critic. Addressing the European Parliament, he said:
"What you've seen from Ursula von der Leyen today is an attempt by the EU to take control of every single aspect of our lives. She wants to build a centralized, undemocratic, updated form of Communism that will render [obsolete] nation state parliaments, where the state controls everything, where nation state parliaments will cease to have any relevance at all.
"I have to say from our perspective, in some ways, I'm really rather pleased, because you've just made Brexit a lot more popular in the United Kingdom. Thank God we're leaving!
"But it is in the aspect of defense that I think people's minds should be focused. She's a fanatic for building a European Army, but she's not alone. When it's completed, NATO will cease to exist or will not have any relevance in Europe at all."
Brexit Party MEP Matthew Patten, in an opinion article — "Fanatical Von der Leyen is the Final Nail in the Coffin for Shambolic EU 'Democracy'" — published by The Telegraph, wrote:
"Ursula von der Leyen, the controversial Defense Minister of the Bundeswehr, got the approval of the EU Parliament to become President of the EU Commission by just nine votes.... Here in the EU Parliament, where most deals are stitched up way before any vote, that's as close as it gets....
"It comes after days of intense wheeler-dealing, with Mrs. von der Leyen walking the corridors of Strasbourg and Brussels to lobby for the Presidency....
"Starting with 'we have to do it the European way' and 'the world needs more Europe' her proposals included an EU minimum wage, a capital markets union, a European unemployment insurance scheme, and most controversially, the abandonment of the national veto on foreign policy, another step towards a European Army and handing over the decision to go to war to the EU.
"She also promised the deepening of Europe's economic and monetary union, a common consolidated corporate tax base, to be sympathetic towards an approach from Britain for further delay of Brexit.
"Von der Leyen concluded saying, 'We need to move towards full co-decision power for the European Parliament and away from unanimity for climate, energy, social and taxation policies. She finished with a rallying cry 'Long Live Europe!' — underlining her support for a United States of Europe."
In Italy, von der Leyen's confirmation led to a crisis in the coalition government. Prime Minister Giuseppe Conte backed von der Leyen, as did Deputy Prime Minister Luigi Di Maio of the anti-establishment Five Star Movement. Deputy Prime Minister and Interior Minister Matteo Salvini from the League party opposed her. He tweeted that support for von der Leyen "betrayed" the vote of Italians who wanted change in the European Union.
US Ambassador to the EU Gordon Sondland called on von der Leyen to revive transatlantic trade talks — but warned that the United States was ready to impose tariffs with "immediate financial consequences for the EU" if there is no progress in negotiations. "I'm very optimistic about her leadership and about her willingness to engage constructively with the United States," Sondland said in an interview with Politico.
*Soeren Kern is a Senior Fellow at the New York-based Gatestone Institute.
© 2019 Gatestone Institute. All rights reserved. The articles printed here do not necessarily reflect the views of the Editors or of Gatestone Institute. No part of the Gatestone website or any of its contents may be reproduced, copied or modified, without the prior written consent of Gatestone Institute.

Eat Iran's Lunch Before They Have Us for Dinner
توفيق حميد/معهد كايستون/تناول غداء إيران قبل تتعشى هي علينا
by Tawfik Hamid/Gatestone Institute/July 23, 2019
https://www.gatestoneinstitute.org/14572/eat-irans-lunch
Diplomatic efforts notwithstanding, the free world must realize that the threat posed by a nuclear Iran would be different from any other nation obtaining such weapons.
At the very least, Iran, once it had both nuclear weapons and the means of delivering them, would not even have to use them: the threat to do so would be sufficient to blackmail other countries into doing whatever it asked. If it wanted to control the oilfields of Saudi Arabia or its holy cities, Mecca and Medina, how could Saudi Arabia resist?... What about the tempting oil fields of Abu Dhabi or Kuwait?
Since its revolution in 1979, Iran, often through its proxies such as Hezbollah, has dedicated its resources to expansion and terrorism -- not only in Yemen, but also in Iraq, Syria, Lebanon, and by funding Hamas in the Gaza Strip -- to create a geographical arc from Iran to the Mediterranean. Iran has also for years been expanding into South America, particularly Venezuela.
Iran's emergence as a nuclear weapons state, however, if it occurs, will not be merely an addition to the roster of nuclear powers -- it will be a terrifying game-changer. Pictured: A cruise missile is paraded in front of senior military officers in Iran, on April 15, 2015.
Iran has crossed a new threshold in nuclear enrichment. This means that the nine nations in the world's nuclear weapons club soon might be forced to acknowledge a new member. Iran's emergence as a nuclear weapons state, however, if it occurs, will not be merely an addition to the roster of nuclear powers -- it will be a terrifying game-changer.
Iran has already reached uranium enrichment levels of around 4.5 percent, Behrouz Kamalvandi, spokesman for the Atomic Energy Organization of Iran, told the semi-official Fars news agency. Mr. Kamalvandi warned that enrichment could reach 20 percent in the future. Inspectors from the International Atomic Energy Agency have confirmed Kamalvandi's assertions.
Iran's deputy foreign minister, Abbas Araghchi, in an apparent attempt to increase pressure on ongoing diplomatic negotiations, said that Iran would exceed some other unspecified limit in 60 days.
Diplomatic efforts notwithstanding, the free world must realize that the threat posed by a nuclear Iran would be different from any other nation obtaining such weapons.
Take, for example, North Korea. Mutually Assured Destruction (MAD) could deter its government from attacking the United States because neither its leader, Kim Jung-Un, nor its military personnel, are presumably ready to die in a guaranteed counterstrike by the US or other world powers.
Similarly, Pakistan's military leaders, despite continuing tensions with their nuclear-armed neighbor, India, have expressed no willingness to die as an outcome of initiating a nuclear strike.
The same reluctance seems true for the other seven nuclear powers -- even America. All are governed by people who do not follow suicidal ideologies. For nearly 75 years, the time-tested threat of MAD has effectively prevented the use of nuclear weapons.
Not so in the Islamic regime in Tehran. While many mullahs would doubtless prefer to stay alive to continue ruling the country, there may well be others, true believers, who might not hesitate to use such weapons against others, even if it meant their own trip to oblivion. Embedded in Iran's religious ideology is the wish for an apocalyptic "end of days," to usher back the messianic Twelfth Imam, or Mahdi, after which there will supposedly be justice on Earth. Of course, some of the current leading mullahs may not necessarily choose this suicidal direction. We cannot, however, guarantee what generation of mullahs might become infatuated with the ideology of jihad and martyrdom. In such a case, Mutually Assured Destruction will not deter them, but be, instead, an inducement; and we will then face a very frightening reality.
It is hard to forget that, during the Iran-Iraq War in the 1980s, the Iranian mullahs embarked on a variety of indoctrination campaigns to energize the faithful and encourage them to join the front lines. To entice Iranians to volunteer -- and in some instances, to volunteer their children -- the mullahs promised eternal peace and pleasure in the afterlife. "Plastic keys, ostensibly good for opening the door to heaven, and to erotic and culinary delights, were ... given to these young men, who walked to their deaths," wrote Stanford University's Abbas Milani in a 2007 essay for Boston Review.
In addition, most of the existing nuclear powers operate under systems of government and military control designed to prevent a single dangerous or demented individual from starting a nuclear holocaust. If a military dictator, for example decided to use a nuclear weapon against the US, his leaders might reject this notion: such an act would mean their annihilation. The Shia theocracy in Iran, however, harbors no such restraints. Not a single person in the Iranian power structure can legitimately reject or refuse, or even question, an order from the supreme religious leader, Ayatollah Ali Khamenei.
At the very least, Iran, once it had both nuclear weapons and the means of delivering them, would not even have to use them: the threat to do so would be sufficient to blackmail other countries into doing whatever it asked. If it wanted to control the oilfields of Saudi Arabia or its holy cities, Mecca and Medina, how could Saudi Arabia resist? What is Iran now doing in Yemen, at the bottom of the Arabian Peninsula, if not that? What about the tempting oil fields of Abu Dhabi or Kuwait?
Since its revolution in 1979, Iran, often through its proxies such as Hezbollah, has dedicated its resources to expansion and terrorism -- not only in Yemen, but also in Iraq, Syria, Lebanon, and by funding Hamas in the Gaza Strip -- to create a geographical arc from Iran to the Mediterranean. Iran has also for years been expanding into South America, particularly Venezuela.
In addition, if the Iranian theocracy develops nuclear weapons, their affiliates -- Hezbollah in Lebanon and Ansar Allah (the Houthi rebels) in Yemen -- almost certainly will as well. Such a proliferation would doubtless trigger a nuclear weapons race among the Arab and Muslim states, and international terrorist organizations.
Wiping Israel from the face of the earth has also long been a stated Iranian goal and passion.
In developing nuclear weapons, time can only work for the benefit of Iran. Therefore, we must place even more pressure on the mullahs to end their threat sooner than later. US President Donald Trump has shown refreshing foresight: Iran, with this regime, must never be allowed to possess a nuclear weapon.
*Dr. Tawfik Hamid, the author of Inside Jihad: How Radical Islam Works, Why It Should Terrify Us, How to Defeat It, is a Distinguished Senior Fellow at the Gatestone Institute.
© 2019 Gatestone Institute. All rights reserved. The articles printed here do not necessarily reflect the views of the Editors or of Gatestone Institute. No part of the Gatestone website or any of its contents may be reproduced, copied or modified, without the prior written consent of Gatestone Institute.

Analysis/Erdogan Faces Growing Threat From Within His Own Party
Zvi Bar'el/Haaretz/July 23/2019
Dozens of senior members of the president's AKP party may join disgruntled politicians and set up a new party. And he is already on the attack
Unless Turkish President Recep Tayyip Erdoğan restores the public’s faith in him, disgruntled politicians from his ruling party may join former Justice and Development Party (AKP) heavyweights to challenge his authority, wrote Zvi Bar'el in Israeli newspaper Haaretz.
The growing discontent with Turkish President Recep Tayyip Erdoğan within the AKP, which has ruled Turkey for 17 years, is evidenced by the recent departure of the party’s bigwigs.
Former allies of Turkey’s strongman such as the former prime minister, Ahmet Davutoğlu, have been increasingly vocal in their criticism of Erdoğan, who gained sweeping executive powers with a presidential system that began last year.
Former deputy prime minister in charge of the economy, Ali Babacan, resigned from the AKP, citing differences over key policies and announcing the need for a new political formation. Former President Abdullah Gül, a founding member of the AKP, has also increasingly come out in criticism of Erdoğan.
With the clock ticking on the formation of a new centrist party led by former Erdoğan allies and AKP heavyweights, "Erdogan is already going on the attack,’’ Bar’el wrote.
The Turkish president has said that Babacan does not "have the right to break up the ummah [the Muslim community],” the article recalled, pointing to the economic and diplomatic problems facing Erdoğan’s Turkey.
Davutoğlu, in a tell-all interview with Voice of Russia, a subsidiary of the Russian media network Sputnik, last week spoke of his time as prime minister under the tight grip of Erdoğan. Turkish journalists were told not to broadcast it, Bar’el said.
As former AKP officials continue to step forward to voice their concerns with Turkey’s strongman, it is becoming increasingly evident that cracks within the Islamist political formation are too large to be mended.
"A war is eating up between the three former senior officials who have broken off from Erdogan. Babacan and Gul haven’t rushed to embrace Davutoglu, whom they and many others still see as Erdogan’s minion despite his criticism of his former boss,’’ the Haaretz article said.
Gül and his allies maintain that Davutoğlu, during his time as prime minister, handed Erdoğan the reins of absolute power and destroyed any chance of protecting democratic values from his assault, a charge that was confirmed by Davutoğlu’s remarks in the Voice of Russia interview.
With the next presidential and parliamentary elections slated to take place in 2023, Erdoğan will have to tackle the task of proving that Babacan, who supports raising interest rates to curb inflation, is wrong, and that lowering interest rates will actually spur growth, Bar’el wrote.
The resignation of Babacan, widely lauded for successfully steering Turkey’s economy during the first decade of AKP rule, and his plans for a new party arrive as the country battles an economic crisis.
Turkey’s economy had plunged into a recession after a currency crisis sent the lira to record lows in August. The government has since sought to stimulate an economic revival with tax cuts and cheap loans from state-run banks.

Gulf Confrontation a Battle of Nerves
Abdulrahman Al-Rashed/Asharq Al Awsat/July 23/2019
With assaults, tanker hijackings, threats to navigation and drone attacks, it is not easy to keep your cool in such a tense atmosphere, but this is the game and its rules of play. What is happening in the Gulf is a battle of nerves.
Confronting Iran is like playing a Rubik’s Cube — solving it requires many attempts before getting the correct final form. Wrong steps are easier and more numerous than the right ones. A military confrontation with Iran seems easier too; however, it may destroy the military power of the regime but not necessarily eliminate it, creating a bigger problem for the region. The coalition may also win the war, but the war could destroy the economic capabilities of the Gulf states.
Furthermore, the crisis could start small with a step like rescuing a hijacked oil tanker, but it may then get out of control and develop into a wider war. There are also other possibilities to take into account, such as the positions of the other major powers. China and Russia have their own different calculations. Russia has several differences with the West in its former sphere of influence, which it lost with the collapse of the Soviet Union, and it dearly wants to restore its old capitals, from Kiev to Prague. China also has its own differences with the US in the East China and South China Seas, as well as their trade disputes. Thus, in the event of a complicated and prolonged Iranian crisis, which is not resolved swiftly militarily or politically, these countries will intervene for their own aims, as Russia has done in Syria.
Indeed, this is not limited only to the two big players; there are the Iranian militias too, which are trained to fight the street battles of Tehran. They cannot win the war, but they are capable of spreading chaos throughout the region. Then there is the counter-front, where different countries may have different aims. Israel’s main issue is to eliminate or prevent Iran’s nuclear weapons. Saudi Arabia’s top priority, on the other hand, is to stop Iran’s threatening project, which includes taking over its neighbors Yemen and Iraq. This difference in purpose will surely be reflected in the nature of the confrontation.
Well, some may say that “as long as the picture seems full of risks and differences, why not go back to what the situation was a year ago,” i.e., before the economic sanctions were applied or even before Washington announced its withdrawal from the nuclear agreement, and thus avoid another war? This is an idealistic approach, but it will not end the problem. The fact is that “for free” peace only postpones the war until it becomes harsher and more dangerous later.
Iran continues its drive to dominate Iraq, Syria and Yemen, which is a public policy proudly declared by senior leaders in Tehran. It will continue in its drive until the delayed war occurs.
Moreover, many reports confirm that Iran is, indeed, close to building its nuclear weapons. The British believe it is only a year away from achieving that aim. Washington says Iran has never stopped working on its nuclear program, despite its claims and signed pledges. This means that, once Iran becomes a nuclear power, no one would ever confront it militarily due to its danger to the world; thus, the big powers would have to accept the status quo that Tehran would impose.
Therefore, the timing of decisive action is a fundamental factor, whereas postponing it is not in favor of Iran’s opponents, whatever today’s calculations and the risks of confrontation are. This, again, does not mean that anyone wants war. In fact, no one wants it. US President Donald Trump’s plan is blockading Iran and forcing it to agree to stop its aggressive policy. Trump’s goals may take one to four years to achieve. Until then, the difficulty lies in maintaining nerves and not getting dragged into a major war, and convincing Tehran that the war will destroy it, without the need to prove it on the ground.

Smartphone Banking Is for Me. Regulators, Please Help.
Leonid Bershidsky/Bloomberg/July 23/2019
As a client of the German smartphone bank N26, I wasn’t surprised to read Thursday morning that it’s valued at $3.5 billion despite not yet being profitable. There is, however, a risk built into its business model — one that’s hard to separate from its appeal to customers like me.
Berlin-based N26 has no bricks-and-mortar presence, but enjoys important advantages over most traditional banks. Most ATMs charge no commission on N26’s debit cards. One can also instantly change withdrawal and spending limits through a smartphone app, or disable the card’s online and foreign use and then immediately allow it again. The N26 app also functions as a basic home-finance one, sorting expenses into categories. No wonder the bank has attracted 3.5 million customers and $470 million in venture funding from the likes of the Silicon Valley entrepreneur Peter Thiel and the Hong Kong business tycoon Li Ka-shing. But I didn’t become a client just because N26 makes it easy to manage my account from a phone. I’m a Russian living in Berlin, and German banks can be slow to take on foreigners and many other new clients. They demand unnecessary paperwork, and one bank told me to come back in two weeks if I wanted an account. N26, by contrast, is welcoming. In Germany, it verifies new clients’ identities by way of a video chat. That beats traditional know-your-client procedures both for clients and for bankers. It’s quick, convenient and cheap. That’s how N26, founded in 2013 as a mobile interface and issued a banking license in 2016, has been able to expand so quickly.
The problem, of course, is that its bankers don’t really get to meet new clients. That creates a lively market in so-called bankdrops — bank accounts attached to stolen or fake identities. These are useful to people setting up fake online stores and to those selling illegal stuff. It’s not hard to find bankdrops for sale online for anything between 500 and 1,200 euros ($560-$1,350). In Germany, identities for bankdrops are sometimes stolen through websites offering cheap loans or other goodies that require identification. N26 is often mentioned in connection with this type of fraud by the German police. In June, some traditional banks in the Volksbank network even temporarily stopped transfers to accounts at a number of smartphone banks, including N26 and its competitors Fidor, Revolut, bunq and Solarisbank, because of fraud complaints. In May, Bafin, Germany’s financial supervisory authority, told N26 to improve customer due diligence and, among other things, to re-identify a number of existing customers.
The bank itself has insisted that its identification and verification procedures are sound and that they don’t cut any corners. And in fact, video verification can be as reliable as the in-person kind. It’s usually done by specialized companies that know the fraudsters’ tricks (for example, they’ll ask a client to bend a driver’s license to check that it’s really made of plastic, and they’ll want to see it at a certain angle to make sure the watermarks are there). These experts, who avail themselves of artificial intelligence to compare a document photo with a selfie, are probably better at verifying identities than bankers peering at dated ID pictures. And yet as digital verification technology improves, so do techniques meant to cheat it. Besides, cops and regulators are often pretty conservative people who trust traditional methods more than newfangled technology. Intuitively, it makes sense that meeting a person provides more information about them than any kind of remote, digital interaction.
That creates a built-in risk for new lenders such as N26: What if regulators, worried about the flourishing fraudulent account market, ban remote identification? Such fears, after all, have already caused a number of countries to switch from vote-counting by machines back to hand-counting processes.
N26 uses a company called Safened to handle customer verification. Until recently, that firm operated under a U.K. payment-provider’s license, and since the U.K. is still a European Union member, the German authorities had to accept its identification of customers as sufficient. Safened obtained a Dutch license earlier this year in case the U.K. manages to leave the EU, but a regulatory hiccup easily could have sent N26 (and its competitors) scrambling for a new solution. Banks such as N26 are the future. They aren't saddled with enormous legacy operations, they use the latest technology, they’re agile and they’re potentially more profitable than traditional retail banks. But their business models rely on the assumption that regulators won’t be tempted to lash out at some of their innovative methods. There’s a way to remove that risk when it comes to remote identification. ID requirements need to be written into international money-laundering standards. Then innovative banks will get a better idea of the maximum costs they face to be compliant, and traditional banks will be able to cut costs without fear of violating standards. In the end, though, the task of issuing citizens reliable digital ID that can be used for access to services — as in Estonia — falls to governments, not private institutions.