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The Globalist
The EU decides on Russia’s assets, France’s social security vote and bartenders wanted in Saudi Arabia
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- [00:04]
Georgina Godwin
Craft matters in small ways, like how a coffee is brewed, and in not so small ways, like how your money is cared for. Which is why for 160 years, UBS has elevated banking to a craft, tailoring unique strategies that combine human expertise with the latest technologies, all happening across 24 time zones and 12 key financial hubs. With you at the heart of it all, UBS advice is our craft. You're listening to the Globalist, first broadcast on 18 December 2025 on Monaco Radio. The Globalist in association with U.
- [01:08]
Fernando Augusto Pacheco
Hello.
- [01:08]
Georgina Godwin
This is the Globalist broadcasting to you live from Midori House in London. I'm Georgina Godwin. On the show ahead, the reality of.
- [01:16]
Teres d' Astiny
This world means we Europeans must defend.
- [01:19]
Florence Biederman
Ourselves and we must depend on ourselves.
- [01:23]
Georgina Godwin
But for Europe to defend itself, itself, must it let down Ukraine? EU leaders meet today to decide what to do about frozen Russian assets. But Belgium warns us of the consequence for Europe and Brussels in particular, should the assets be used to support Kyiv? France has had a turbulent political time, but after the prime minister won a key vote in Parliament, could the government finally be turning a corner? We'll have a flick through the front pages and a roundup of news from Asia.
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Guy Delaunay
And then the curse of the Balkan flag carrier strikes again as Air Albania is grounded for good. I'm Monocle's man in the region, Guy Delaunay, and I'll have the details on how the carrier fell to earth.
- [02:03]
Georgina Godwin
We'll meet the French Brazilian bossa nova musician Thiago Caetano. And finally, are you a dab hand at making cocktails? Fancy a job in Saudi Arabia? Riyadh is hiring and appears to have the blessings of the powers that be. That's all ahead here on the Globalist. Live from London. First, a look at what else is happening in the news. Humanitarian agencies warn aid operations in Gaza and across the Palestinian territories could collapse unless Israel lifts restrictions that threaten to shut down dozens of organizations. Brazil's Senate has approved a bill that could sharply reduce former President Jair Bolsonaro's prison sentence, setting up a political and legal showdown in Brasilia. And the Academy Awards will move exclusively to YouTube from 2029, ending a half century run on US broadcast television and underscoring Hollywood's accelerating shift to streaming. Do stay tuned to Monocle Radio throughout the day for more on those stories. Now EU leaders meet in Brussels today to decide whether frozen Russian assets can be used to fund Ukraine. Belgium, where most of the assets are held by Euroclear, remains the main sceptic, citing legal and financial Risks. New legal opinions argue those risks are limited and that Russia's litigation threats are largely symbolic. Well, I'm joined now by Erin Burnett, a senior fellow at the Democratic Strategy Initiative, Berlin. Aaron, many thanks for coming on the show. Why is Belg so key to this decision?
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Erin Burnett
Well, I mean, as you mentioned just now, simply because it hosts Euroclear, which holds about two thirds of all of the assets that were frozen originally in February 2022. You know, it's holding and really Belgium banks that Euroclear is dealing with is holding or holding, you know, well over 100 billion of the frozen assets, even though Euro Clear is managing, you know, assets and other currencies other the euro and other correspondent accounts. So it is hosting a lot of these assets and also therefore exposed to, as it sees it, you know, a disproportionate amount of the risk involved with any decision on these assets, particularly given the size of Belgium as a country.
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Georgina Godwin
I mean, it's talking about reputational damage. Is that concern justified?
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Erin Burnett
Reputational damage in what way? In terms of its ability to know be a financial hub, for example. I mean, a lot of the economists that we work with in our working group have said that a lot of the, you know, damage that could have been done, at least with respect to any kind of economic or financial risk concern would have been incurred certainly when during last week's decision to immobilize the assets indefinitely. And really any sort of effects on the financial system would have been priced priced in at the time that the assets were originally frozen, simply because that's when the 300 billion was taken off the table. So there, there really is in terms of actually using the assets to fund Ukraine, which is the decision that is before European leaders. Now, I really don't see where, you know, these charges of reputational risk are actually coming from because it's really the immobilization that's key to all of that, which has already been decided and already been voted through, not using those assets to actually help assist Ukraine. So this is a very, very strange claim coming from Belgium, in my view.
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Georgina Godwin
I mean, there is a legal distinction between freezing and seizing the assets. I understand this is something to do with the doctrine of countermeasures in the law of state responsibility.
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Erin Burnett
Yes, absolutely. So, I mean, I think it's important to note here that when it comes to legal versus financial risks, a lot of the economists and financial experts that we speak to, and some of whom that are my colleagues, will say that in terms of practically, there is no difference between freezing and Seizing, they are basically the same thing. The effect on the. On the financial system is the same in terms of a legal difference. That's sort of noted. There is a clear legal difference between freezing and seizing, but both use countermeasures, which is simply the legal principle that a state that is so flagrantly violating international law cannot then say or claim the protection of international law for its property. So countermeasures simply says something that is ordinarily illegal under international law. In the case, seizing sovereign assets is legal if the country concerned is, you know, breaking international law so flagrantly. But that said, you know, it is certainly our view, it is certainly my view and those of many of the legal experts that we work with, that actually seizing these assets would still be legal under international law. But that's not what's happening here. That's not actually what European leaders are voting on. The plan, that is before European leaders, uses a complex web of guarantees and sort of trade between the governments concerned and Euroclear. Euroclear would then get bonds that are equivalent to basically equivalent to cash. And ultimately, the assets that are on Russia's balance sheet would actually remain the same, technically speaking. So we're not actually talking about confiscation here. And in fact, European governments under this plan would say that Russia can't even have these assets back if it pays reparations to Ukraine at the end of this war, as the UN General assembly has already said Russia is required to do at the end of this conflict as a part of any peace agreement.
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Georgina Godwin
Right, but Russia is fighting back. It's suing Euroclear in Moscow. I mean, that's unlikely to travel beyond Moscow's court. So, I mean, is this to do with sovereign immunity?
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Erin Burnett
Well, that is certainly what Russia claims that this has to do with sovereign immunity. But, you know, ultimately, because this is not. Because these assets are not actually being confiscated, that claim is, Is. Is very questionable, and it's very, very telling what Russia has decided to do here. Russia decided to, say, sue Euroclear in its own kangaroo court, or what I've also heard described as Putin's puppet court. It didn't decide to go into a Belgian court or a European court or even the International Court of Justice or any other legal avenue that would actually be available to it, theoretically. In this particular case, it went to the only court it knew would find in favor of its interest, a court that it could control. Now, it did decide to do that, obviously, because there's obviously threats and intimidation is obviously an instrument that Russia uses. Unfortunately, in many cases, extremely well. But its decision to do that, to sue in that Moscow court and not in any other court, also reveals how weak its legal case is. And a legal memo released by my colleagues this week also simply details all of the various reasons why that's basically the only option available to it. Any other core is not even going to hear Russia's case simply because jurisdiction doesn't apply or the Russia doesn't, you know, accept the ultimate authority of the, the icj or Russia hasn't ratified key agreements on sovereign immunity, all of these various reasons legally. So Russia's options are actually extremely limited, although it will certainly do its very best to make it seem like that's not the case. And that's some of that's really where these threats are coming from. And this intimidation is coming from.
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Georgina Godwin
Talking of threats and intimidation, I wonder if that's happening in other ways. There appears to be anecdotal evidence that Belgium is suffering cyber attacks and other threats. Do we have evidence of that?
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Erin Burnett
Well, I mean, we just saw a Guardian story come out yesterday which details the various ways that Russian operatives have been threatening Belgian politicians, senior leaders and executives at Euroclear, all to prevent this decision from happening. So far that has, at least if we look at the rhetoric coming from the Belgian prime Minister in the media in recent days, that seems to be having its desired effect. Let's see what actually happens during the European Council vote. But ultimately, what I find interesting here is that if Belgium does not agree to the reparations loan scheme that's being proposed at the European Council, it essentially will have been intimidated into giving up its own protections. I mean, a lot of the legal risks that Belgium says that come with this plan are already there with indefinite immobilization, with basically saying that, oh no, we are not going to have to renew the freeze on these assets every six months. We are going to make this indefinite until we decide to live lift it. There is already litigation risk against Euroclear and Belgium already as a result of that decision. The reparations loan proposal that's being voted on by European leaders has a lot of built in protections and guarantees for Belgium, and Belgium is only going to get those if this reparation loan actually passes. If Belgium actually helps to prevent this from being passed, they essentially will have been intimidated into giving up the very protections that really would help to safeguard it. Now that really would be a huge victory for Russian propaganda and intimidation if that happens. So that's something that we really need to be watching over the Next day or so.
- [12:35]
Georgina Godwin
Erin, thank you very much indeed. That's Erin Burnett of the Democratic Strategy Initiative in Berlin. This is the global. It is 8:12 in Paris, 7:12 here in London. France's Prime Minister Sebastien Leconnoux has secured a narrow but symbolic victory after MPs approved the 2026 Social Security budget by a slim margin. It's the first time a budget has passed the national assembly through a vote since the government lost its majority in 2022. But with the country's main state budget still unresolved, it raises a bigger question over whether this marks a positive shift in how is governed. Well, I'm joined now by Florence Biederman, who's a journalist and a political analyst in Paris. Florence, it's always lovely to have you on the show. Why was this Social Security budget such a critical test for Le Cornou?
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Florence Biederman
Well, I mean, Le Cornu has been prime Minister after a series of other prime ministers in France who couldn't reach and have a majority to have their budget adopted. So the fact that he succeeded when two, three others have failed is remark already in the tense situation in which France is politically since Macron called snap election a few years ago and lost his majority. So what he succeeded in doing is having people making compromise, which in France is not in the political culture, and to have the union of the moderate left, moderate right and the center to adopt this budget. So this is something that the previous prime ministers couldn't do. So, yes, it's an achievement per se. The other very remarkable thing is the fact that in this budget and why it was also very controversial, there is the suspension of the pension reform. So that's what he had to do to get the votes of the Socialist, of the moderate left. And that's how he got his budget adopted. And this was a big concession for someone who is an ally of Emmanuel Macron, because this reform was the big reform of his second five year term.
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Georgina Godwin
I mean, it was very close, the result. Can you tell us what that means about the. What that tells us about the balance of power in Parliament?
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Florence Biederman
Well, I mean, that means it's still unresolved. You know, the situation in which France is now, which is kind of three blocks situation, which is, which was not the case for four decades. That was the left and the right and that's it. And they had to manage with that. So now there is the center plus the far left, the far right. I mean, this kind of three block situation makes it really difficult to have any compromise. And as you said, yes, if There is a vote, there will always be a very, very narrow margin. Because if you add the voice of the far left and the far right, like against this budget, for example, which was the case then, yes, the margin of maneuvering is like some dozens of seats. And you know, in the other parties that join, let's say the, and vote for the, for the, the budget, you never know whether someone decide, you know, to not to vote like their party asked them to vote. So it's, it's a very tricky situation.
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Georgina Godwin
Of course, the main budget we're still waiting for, that's later this month. Does this result change the prospects for that main budget?
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Florence Biederman
Well, it certainly does, you know, because if everybody managed to put aside the differences or the reluctance, for example, it was not easy, of course, for Macron's party, Renaissance, it was not easy for the traditional conservatives to vote. The suspension of the pension reforms, many of them abstain, by the way. So yes, if they still manage to maintain this balance, it can bode well for the budget. If they manage to do it for this Social Security budget, why not for the bigger budget? Because if they don't vote, the situation of France will be very tricky.
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Georgina Godwin
So Farhan, do you think that this result points to a more workable political model or does it just delay the next crisis? Has France turned a corner here politically? Is it on the up?
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Florence Biederman
I don't think it's a corner. I don't think it's the sign of something bigger. I think it's just, just the sign that the parties, and let's say the moderate parties realized they cannot play with fire and they cannot just have the prospect of the next election that guides them when they make decision. I would say it's a very still uncertain and fragile situation. It's not a new culture that emerged. I really don't think so.
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Georgina Godwin
Florence, thank you very much indeed. That's Florence Biederman, who's a political analyst in Paris. Now, still to come on the program, We meet the French Brazilian bossa nova musician Thiago Caetano. This is the globalist. Craft is a matter of perspective, a unique outlook, an obsessive attention to detail. With UBS chief investment office House you, we're focused on identifying the latest investment opportunities and market risks to help you achieve your financial goals. So you get the big picture broken down into thought provoking insights delivered daily and curated by over 200 globally connected, locally active analysts. UBS banking is our craft. Well, let's continue now with today's newspapers and joining me in the studio is Teres d', Astiny, a political journalist and the author of Believable the Misfits who Fought Churchill's Secret Propaganda War. Welcome. Speaking of propaganda, let's start with the White House, because Trump has given an address. He took over 20 minutes of national broadcast time to give his basically the sort of State of the nation before the holidays address. What were the key points? What do we actually learn from him? Or at least what did we learn that he wanted, wanted us to know that might not necessarily have been the truth?
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Teres d' Astiny
He wanted us to learn that everything in the United States is absolutely splendid. That 11 months ago he said he inherited a mess and he was fixing it. He was sort of saying that the country had been dead until he came into power. And then he kind of rattled off a list of statistics, many of which, you know, aren't backed up by the facts, to say the least. I mean, so I think what he was trying to do, really, and certainly according to these reports here in the papers, in the, the Financial Times, Times in the UK and he was heard apparently afterwards at the end to, to have a sort of quick word with, with Susie Wiles, his chief of staff, who, who's been in the news lately, and say, I, Susie had told me to get, to give an address to the nation, but he wanted to try and persuade people that the economy was going really well, that tariffs were great, that he had, of course, solved wars, sorted out the border. But to me, and to, you know, a lot of people, I haven't watched the whole thing, but a lot of people watching, it seemed this did seem to be a Donald Trump who was quite rattled, who was telling everybody that, you know, everything was fine. This was an address which was done off an autocue. So not quite as random as some of his speeches or his press conferences tend to be, but he was sort of rattling through this thing and really trying to convince everybody that, you know, the country was in an absolutely brilliant state and really trying to gloss over all of the, you know, the more recent problems that he's been having.
- [20:48]
Georgina Godwin
I mean, just having a look at some of these headlines. The gu. Trump's Bah Humbug speech. Where is it? So it's just jumped off here. Trump's Bah Humbug address suggests he's feeling the chill of opinion. The Telegraph, Trump's uncharacteristically wooden address to the nation reveals a panicked president. Sky News. Some reckon Trump's losing his marbles and this speech might help their case. CNN fact check on President Trump and.
- [21:17]
Teres d' Astiny
He doesn't come out well, no, he, he really doesn't. And I think, yeah, there is this gen. General sense that, you know, this was something people had thought, you know, is he going to make some big announcement? What's the big reason for doing a, in an address to the nation like this? And it just really seemed to be quite angry, quite trying to convince people that, you know, that everything was going absolutely fine and, you know, that he was going to help soldiers. And as you say, the Guardian describing it, saying it's smacked of desperation from one who can feel the December wind chill of opinion polls. So I think, you know, this seem like a Donald Trump who, who is quite rattled, of course, that you think of all the things that have been going on, you know, just in, in the last week alone from, you know, the big Vanity Fair interview with his inner circle, his, his really bizarre rant about, about the death of Rob Reiner, the way he has been attacking European leaders as coming from decaying countries. It does sound like someone who, you know, is, is certainly feeling the pressure. And, you know, I think, you know, he is often, you know, we know that Donald Trump sounds, sounds quite random sound sort of goes off on strange tangents. But, you know, I think he was trying to stick to a script here, but just not didn't seem to convince many people.
- [22:28]
Georgina Godwin
You mentioned the Vanity Fair interviews and of course that involves Susie Wiles, who is his chief of staff. And as you say at the end of his speech, he was heard to say, Susie Wiles says I must do it. And she is at the center of the storm because she made some really quite indiscreet remarks to Vanity Fair. But it seems that the wagons have circled and she is very much being protected by White House inside.
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Teres d' Astiny
Well, yes, I mean, she certainly still seemed to be there. She was still visible, you know, at this address. You know, Trump was still seemed to be, you know, doing what he, what she had asked him to do, you know, saying that, you know, Susie told me I have to give an address to the nation. And you'd think that if he were turning on her, he would not necessarily be doing what she had asked him to do and she would be one of the people coming under his sort of fire. But I think, you know, certainly suggests that, that she's still someone that he feels he needs.
- [23:17]
Georgina Godwin
Yeah, not a lot about, in fact, nothing about Venezuela and oil, which I thought was slightly surprising, but I guess he's been told to focus on the domestic agenda. That was certainly one of her initial criticisms. Of him. But of course, as we know, he is a huge proponent of oil. He doesn't appear to give a great deal of credence to climate change, which is extremely odd when you look at what's happening in Spain. So let's pick up this story here from the BBC talking about a national network of climate shelters that's going to be set up in public buildings in Spain to offer people a refuge from the intense heat before next summer. I mean, huge evidence of climate change, if any more were needed.
- [24:01]
Teres d' Astiny
Well, yes, that's right. And I think, you know, in certainly many European countries, southern European countries, they are finding that, you know, the summer temperatures have become incredibly high. And this is what Pedro Sanchez has said. He's going to have part of his plan to address, address the impact of climate change. He's saying, you know, in some summers it's not separate heat waves we face, but one long heat wave stretching from June through to August. And so what he has suggested or, you know, said that Spain is going to do is try to have spaces to stay cool. So places funded by the government. And there are already in some areas like in Barcelona, places where you can go inside, go to a library or a museum or a sports center, a shopping mall with seating, with free water so that you can, so you can cool down so that people who might not have air conditioning and can't get away from the heat. And it kind of follows on, on the kind of public health advice that you already get in, in places like southern France, for instance, where they literally, when it is very hot, they will tell, you know, vulnerable people, just go and stand in the supermarket near the, near the cold area so that you can cool down somewhere. But this is trying to put it on a more, on a more systematic basis. But they are also talking about, in Spain about funding flood prevention, fire prevention, because, you know, again, anyone who's spent any time in southern Europe knows the hu that things like forest fires and, and floods can have. And you know, the statistics here which are quoted in this article saying 400, 000 hectares burned through wildfires in Spain in this past year and 3, 800 heat related deaths. So, you know, this is a serious public health problem as much as anything else.
- [25:37]
Georgina Godwin
Now, pandas don't much like the heat, do they?
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Teres d' Astiny
Pandas don't. I, I love that story. I mean, you know, this is a bit of, maybe a bit of a worrying story given the state of relations between, between Japan and China. But the Japan Times is reporting today that Japan will be without a Panda a symbol of friendship between the country and China for the first time since 1972. Because the two twin giant pandas. Giant pandas at Ueno Zoo in Tokyo will have to. Are having to go back to China. So Xiao Zhao and Lele, who are the only two pandas remaining in Japan expected to be sent back to China by the end of January. And the Japanese, the government in Tokyo had been trying to negotiate to have. For them to have a longer stay, but it's been been shortened by a month. There's no new loan. So, you know, this is not a very good sign in terms of panda diplomacy between Japan and China.
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Georgina Godwin
Absolutely. Well, a sort of. To end with another sort of animal related story I guess. Although this animal has not been with us for some time. The oldest ham goes under the knife.
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Teres d' Astiny
Yes. So this is, you know, if you are looking, you will probably not get this for your. For your Christmas famous celebrations, but the 60,000 Euro Iberian vintage ham is. Is going. Is going to be available on sale. Going to be the best that has been open to date. The oldest ham in the world which you might be able to get hold of in Barcelona. Only four legs of it exist. But the amazing thing is that this ham is I think 19 years old. So this is. These were pigs that were last trotting around somewhere in 2006. 6. But apparently it has been so perfectly cured, the Joselisso hams and they were presented at an art gallery because they're such a fine food but apparently because they're processed and preserved completely naturally just just ham and salt and nothing else that they're now saying that vintage ham in Spain could be as fine a sort of a delicacy as. As vintage wine. But basically, yes, it would will be very, very hard to get to get hold of the sort of the 60,000 Euro ham. And you're a very lucky person if.
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Georgina Godwin
You get to try it and where it was opened and I love the terminology here you say open not sliced is important. They talk about how the venue is. It's got to be done somewhere that's significant.
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Teres d' Astiny
Yes. They had to do this in. So last year they had a ceremony in the Prado Museum in Madrid. They also done this in Barcelona now in, in a sort of artistic surroundings. So in. In the Casa Batlo, the Agoudi masterpiece in Barcelona and people were apparently crying because they were so moved by. By the opening of. I mean I do like a ham. I'm not sure it's going to move me to tears.
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Georgina Godwin
Yeah, well, a ham, A ham that still moves and indeed is moving is I would have said What Sir Ian McKellen, one of our most prominent hams. Listen, while we're talking about ham, what goes well with, with ham, ham and cheese?
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Teres d' Astiny
You know, we're heading up to, we're heading up to Christmas. So I think, you know, it's only right that we talk about enjoying, enjoying food. And the Times this morning is reporting some possibly good news for people who love cheese. And I love cheese. So this is people who eat generous amounts of full fat cheese tend to have better brain health. And it says people who consumed high fat cheese and cream were less likely to develop dementia over a 25 year period than people who ate little or none. This was a study that was done in Sweden, followed people from the age of 58 to see who developed dementia. But some annoying killjoy, other scientists. I have to put this bit in just because for, for accuracy's sake. Other people who don't enjoy cheese as much suggest that it's not necessarily a cause, a causal thing. And they're saying this is, you can't necessarily prove the causal link here, but I just think, you know, enjoy the cheese and worry about that later.
- [29:32]
Georgina Godwin
Absolutely. We love cheese. Terry Stiasney, thank you very much indeed. You're with the Globalist on Monocle Radio. Now here's what else we're keeping an eye on today. The United nations And more than 200 aid groups warn that humanitarian operations in Gaza and the wider Palestinian territories are at risk of collapse unless Israel removes bureaucratic barriers. They say a vague and politicized registration process could force dozens of international organisations to close by early next year. Brazil's Senate has backed legislation that would cut Jair Bolsonaro's 27 year prison sentence to just over two years. The bill now goes to President Lula, though it's expected to face resistance from both him and the Supreme Court. And the Academy of Motion Picture Arts and Sciences says the Oscars will stream live and free on YouTube. YouTube from 2029 under a multi year global deal. The move follows years of declining television audiences and comes as Hollywood grapples with consolidation, budget cuts and the dominance of streaming platforms. This is the Globalist. Stay tuned. Now, Albania's been generating plenty of buzz as a tourist destination of late, but it'll have to carry on its rapid growth without airline because the authorities have revoked Air Albania's operating license. It follows the decision of Turkish Airlines to give up its 49% stake in the carrier. Monocle's man in the Balkans guy Delaunay can tell us more. Guy. Hello.
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Guy Delaunay
Good morning, Georgina.
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Georgina Godwin
Now, tell us, what's the current state of affairs with Air Albania?
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Guy Delaunay
Well, it Last flew on the 7th of December, but I just tried this out last night. I went on Air Album Albania's website and if you want to, you can still buy a ticket for a departure next week. So if you want to throw your money down the drain, Georgina, it'll cost €103 for a one way flight to Istanbul, which will almost certainly not be operating. And I can say that because as you mentioned in the introduction there, Albania's Civil Aviation Authority has revoked Air Albania's operating license and that means it simply can't fly.
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Georgina Godwin
So I mean, this has been something of a slow motion disaster, hasn't it?
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Guy Delaunay
Yes. You could see the crash of Air Albania and I mean that figuratively, of course, coming for at least two years because it's really started to struggle against the low cost airlines which were moving into in particular Tirana airport. And Tirana has been one of the busiest airports in the region. It's been rivaling Belgium, Belgrade's Nikola Tesla airport for arrivals in the past couple of years. And when you consider the relative populations of Albania and Serbia, Serbia are a much larger country. That says a lot about just how much traffic is going into and out of Albania. But the thing is, a lot of this traffic hasn't been going to Air Albania. Earlier this year it attempted to revive its network by announcing flights to 11 new destinations. But just to give you an example of how unsuccessful that was, one of those routes to Vienna got 10 passengers on its first flight and they decided to scrap the whole affair after just three flights. So it's not been a happy airline.
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Georgina Godwin
And their suppliers and partners can't have been happy either.
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Guy Delaunay
Indeed not. We've seen numerous cases going through international courts primarily. This is always the big one for an airline that's in trouble. Non payment of aircraft leases, other services, plus catering as well. And the hammer blow really came last month when Turkish Airlines announced that it wanted to withdraw from the venture and it was looking to sell its 49% stake. Now, according to the reports that are out there, by the time the end came and you know, the Civil Aviation Authority took its decision, Air Albania was in debt to the tune of about 100 million euros.
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Georgina Godwin
Wow. I mean, it's only been flying since 2018. What was the original idea behind. Behind it?
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Guy Delaunay
It's the usual thing, Georgina. I mean, the countries in this region might be small, but they're also proud. And it was a Direct initiative of Prime Minister Edi Rama to ensure that Albania had a flag carrier once again. And I say once again because it's not the first time that Albania has had a flag carrier. Turkish Airlines looked like a really good partner for this venture, of course, you know, very strong carrier, 49% stake. It was also providing initially planes to Air Albania as well. And what marks it out as slightly different, and we talked about tourism, but there was a network of destinations that was tailored more to the Albanian diaspora than to tourist traffic. So we're talking about a lot of flights to Italy, to Switzerland, where a lot of ethnic Albanians are living. And that sort of diaspora transport is a very big deal for Albany, Albania, and the airlines that serve its airports, as well as Turkish Airlines. You had a state owned company with a 10% state, but the rest of it was held by a rather mysterious firm called MDN Investment, which was so mysterious that at one point the authorities suspended its license, its business license, because they said that they hadn't been clear about who were the ultimate beneficiaries of the company. And of course, there's been a lot of control controversy over this ownership structure and, you know, the questions of whether state money has been put to poor use.
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Georgina Godwin
Now, as you said, it's not the first time that there's been an Albanian flag carrier, but it's also not the first time that an Albanian flag carrier has failed.
- [35:15]
Guy Delaunay
No. And we've seen six companies fail, including Air Albania, in the last 20 years. I can go through them. Adder Air, Bel Air, Alba Wings, Albatross Air. I wonder what they did wrong there, Georgina. I think the name might have been a bit of a clue. And immediately prior to Air Albania, you had, get this, Albanian Airlines. And when we look at this on a regional basis, it's part of a trend. So I am still mourning the demise of Slovenia's Adria Airways, which went pop just at the end of 2019 and completely scuppered all my travel arrangements. Montenegro Airlines went. Bosnia's BNH Airlines is another airline I have flown on, which is no more. I never managed it onto their predecessor, Air Bosna, or for that matter, Matt Macedonia. Also worth noting that Turkish Airlines has been down this road before. They had a 49% stake in B and H Airlines, but they actually managed to sell that before the carrier went pop.
- [36:09]
Georgina Godwin
Why do national carriers struggle in the region then?
- [36:13]
Guy Delaunay
I think part of the issue is the strength of the low cost carriers.
- [36:16]
Georgina Godwin
So.
- [36:17]
Guy Delaunay
So Ryanair, Wizz Air, Easyjet are all very efficient and that's something which isn't efficiency isn't really what flag carriers are known for. They're often prestige projects and they might not be the correct people in charge of those prestige projects, shall we put it? And the low cost carriers are simply able to do better at lower cost. And passengers, at the end of the day, they're not looking for, okay, am I supporting my country? Am I standing up for national pride when I'm doing this? It's just a question of who's flying where I want to go to at the correct time and at the correct price. So that's been one issue that's been really very obvious here. But the other thing is you look around ex Yugoslavia plus Albania, the largest of these countries is Serbia, which has a population of six and a half million. Its carrier, Air Serbia is doing fairly well, although it has to be said it gets a lot of sweethearts deals from the government. But when you look at everywhere else, you're talking about populations. Montenegro, half a million people. Slovenia, 2 million people. These are countries really which are going to struggle to support a national carrier. And when you've got the low cost carriers with their big networks coming in, it's just very difficult for them to compete.
- [37:29]
Georgina Godwin
Guy, thank you very much indeed. That's Guy Delaunay, Monocle's man in the Balkans. This is Monocle Radio. And now we head to Paris via Rio de Janeiro. Monaco Radio senior correspondent Fernando Augusta Pacheco met the French Brazilian musician Thiago Caetano. He's already a staple here at Monaco Radio and spoke with Fernando about his latest album and his music projects for next year.
- [38:23]
Fernando Augusto Pacheco
What a pleasure to welcome you. I've discovered your music this year and I absolutely love it. So thank you for agreeing to come here. Thank you very much. My pleasure. I was very interested in where you're from. I know you sing mainly perhaps in Portuguese as well. Right. So tell us a bit about your background. What's your Brazilian connection here? So my name is Thiago, I'm from France, I'm French and my mother is from Brazil, she's from Rio Janeiro. And my father is from Portugal and I grew up in France in a city called Rennes. Now I live in Paris. So yeah, that's amazing. My story and music, what has been your influences? Because when I hear your music, I feel strong connection to Brazil in that sense. But tell us a bit more. What about perhaps a little bit of Portugal, a little bit of France as well. Got into this mix since my childhood. I hear a lot of Brazilian music. Like Caetano Veloz, Gilbert Trujillo. Because my mother is crazy about Brazilian music, and my father too. So I love Brazilian music music. And when I was a teenager, I started to listen to more indie music, like Mike DeMarco and Tamimpala and that kind of band. It was the kind of music I loved when I was 16, 17, and I started to play electric guitar. But I've been to Brazil like a couple of times. And every time I went to Brazil, I was crazy. I was partying, playing in samba places. So I really love Brazilian music since my childhood. And I decided to do an album of Brazilian music. I love it and. And the album is beautiful, I have to say. It's echo the Bahia, right? How can you translate that? The echo from the bay. From the bay, of course. Because sometimes I keep thinking about Bahia, the state as well. Which you also love, right? Yeah, I love Bahia. It's a state I really love. But Bahia, in this case, it's Bahia Daguanabara, it's the bay in Rio Janeiro. I want to talk, you know, a little bit more about this cultural influences, because one thing about France, correct me if I'm wrong, I think they have an appreciation towards Brazilian music. You know, every time I'm here in Paris, I listen, you know, I listen to actually in shops and I know a lot of Brazilian artists, they come and play. There is an appreciation here, right? Including for yourself, you know, because you are French. It's a good place to play that kind of music. And I think in general there is a big connection between France and Brazil, which is good, because many friends of mine have been to Brazil and I go very often there and sometimes are friend of mine who come with me and yeah, it's good. I think it's an even more impressive Paris. It's an interesting place for a musician. Well, and that's why, you know, when I saw it was like, oh, Chiago is in Paris. Maybe I should invite him for an interview. And we play one of your songs in our playlist, which is, you know, Socero Vive. I think it's a beautiful song. Thank you. I wonder what can you tell us about the song? Tell us about what was the inspiration behind it. It's the last song I composed before the recording of the album. So it was very, very new for me, this song, when I recorded the album, and I know there are many inspirations, which is a legend, like a legend for me, which is an album from Milton, on the Le Barges, which are my age, through the. From the Brazilian music and Georgi Benjor, which is also one of the most famous artists in Brazil. So yeah, those artists, you're like me. I like the way you say Brazil. It's a nice way of saying. And Thiago, I saw you have already quite a busy year ahead. You're going to perform in a lot of places, right? So if people are fans of your music, where are you performing next year? I perform in Paris, like in December. This December. This December, yeah. When In a theater, chapel very close to here and also in Groningen in January and many places in. In Paris in March. So yeah, many, many shows. Switzerland. So yeah, I don't have the. The dates well, but they can find out on you, on your Instagram, you know, and everything. If you're going to Zurich, we do have another office there. So, you know, we also have some more Swiss listeners. So you're excited for next year? Will there perhaps be new music next year? What do you think? I am going to record another album in June. I'm composing now, so it's very interesting because I played a lot this year and now I'm not as busy as I was, so I have time to enjoy. And I did a tour in Brazil in September and October, so. So now it's more chill and I have more time to compose next year. Will you sing in French as well? This is a good question. I don't know yet. Maybe because I love French. I think it's. But the musicality is very different from the musicality of Portuguese, from Brazil. Because the musicality of the language. You're so right. Because even. Maybe not with French, but even Spanish and Portuguese, they're very similar languages. But the way it sounds, you know, I don't know. I think. In my opinion, I think in Spanish everything sounds a bit more dramatic and in Portuguese a bit more suave. Even though it's the same thing that you're trying to say. But I don't know, I might be wrong. No, no, maybe because I think French is very straight, like direct Portuguese is more. Oh, okay. It's got a narcissist wavy. Yeah. Wave. So it's more rhythmical. They are more rhythm mix. So yeah, yeah, I think it's very interesting those difference. Because you compose differently. Very interesting. Listen, Thiago, I'm a big fan and we are big fans of you in Monaco, so thank you so much.
- [44:51]
Georgina Godwin
The sound of Thiago Caetano in conversation with Monocle's Fernando Augusto Pacheco. This is the globalist on Monocle Radio, IQ EQ and AI, three components key to the craft of innovation at ubs. Because to stay ahead in a rapidly evolving age, you need a partner with decades of experience, endless passion for the work, and a finger on the pulse of leading technologies. Bridging human expertise with artificial intelligence, all to elevate you. UBS banking is our craft. It's 1445 in Vientiane, 745 here in London. Well, I'm joined now by Beatrice Silveiro, who is a Laos based journalist and a news editor covering Southeast Asia. Beatrice, welcome to the programme. Lovely to have you with us. Can we start in Myanmar? Because as we know, the elections are coming up there. I think voting starts on December 28th. They are, however, very, very controversial. Talk us through what's going on and the coverage of J. Hi.
- [46:07]
Beatrice Silveiro
Hi everyone. So Myanmar's military authorities said voting for national election will begin on December 28th. And this is going to be the first nationwide elect nationwide election since the military coup in 2021. Like you said, there are a lot of controversies around this election. Especially since the civil war started four years ago. Large part of the country remains affected by armed conflict, especially in ethnic minorities regions, meaning that voting will not take place nationwide at once. This is one of the reasons why voting will be held in three phases. The first one being on December 28, the second one on January 11, and the third one on January 25. However, in recent weeks, the military government has intensified crackdowns on dissent ahead of the vote. And hundreds of people in, including a lot of activists and critics, have been charged under strict election and security laws. Right. So the punishment are quite severe. They go as death penalty for opposing or disrupting the polls under the new election laws.
- [47:26]
Georgina Godwin
I mean, many people are saying there's absolutely no way this is free and fair. We know that the candidates are all backed by the military government. But one thing that's quite puzzling, why is India supporting Myanmar's elections? I mean, this has got to be a real test for New JAP Delhi.
- [47:40]
Beatrice Silveiro
This is a very good question. India was one of the only countries actually speaking up about it and supporting these elections. And however, India is not really the only one supporting it. There are many other countries silently supporting it, justifying this support by saying that even though it is a military government, in the end it's been many years and like many other countries like, like Thailand or Indonesia, they have had military governments in the past and they have been recognized internationally. So I'm not sure why India really spoke out about it, but definitely it's not the only country supporting it.
- [48:24]
Georgina Godwin
Let's move on now to Laos and South Korea because there's been a deepening of cooperation between the two countries, particularly on crime, economy and security.
- [48:33]
Beatrice Silveiro
Security, correct. Yes. Law and South Korea have recently agreed to work more closely on crime prevention and law enforcement. Law enforcement. After major concerns of illegal sex tourism by South Korean men in Laos rose basically in the past years, I would say South Korean authorities have raised alarm over the cases involving Korean citizens in Laos and, and recent reports by the embassy also describe the allegations of long term stays linked to sex tourism, which have contributed to rising rents and social pressures in some areas across Laos. But most seriously, the investigations by South Korean human rights organizations have uncovered widespread online child exploitation and prostitution networks operating in Laos. The interesting thing thing is how these networks work. They usually rely on encrypted messaging apps and online platforms such as Telegram. Right. Telegram. Or WhatsApp. And they often involve foreign nationals and organized crime groups.
- [49:45]
Georgina Godwin
I mean, it's a, it's, it's a very big story. It's been picked up pretty much across the region right now. This is a big investigation indeed.
- [49:54]
Beatrice Silveiro
Yes, it is a big investigation. There is really not much public information about it. Again, because it is a big investigation and involves a lot of minors. So for their safety, the media tends to of course, not publish too much about the issue. However, I am aware that the embassy and local authorities are working together to try to uncover at least as much, as much as they can here in, in the capital as well as across the country. But what is interesting, I think, is why this is happening. Actually. Like everybody asked me, why is this happening in Laos? Why so many South Korean. Right. And economic challenges, of course, in Laos. But also some investigations really found out that tour guides and travel companies, companies from Korea have allegedly helped arrange night tours or introduce visitors to sexual services in Laos, which makes the whole system quite, quite easier to exploit.
- [51:03]
Georgina Godwin
Right, Beer. Just before we go, I'd just like to have a quick look at the Southeast Asian Games because Cambodia has withdrawn because the event's being held in Thailand. Just, just give us the background to that.
- [51:16]
Beatrice Silveiro
Yes. So on the 9th of December, the SEA game launched in Thailand. And immediately Cambodia has withdrawn its entire delegation citing security concerns linked to the rising border tensions with Thailand. As everybody is aware, Thailand and Cambodia have been quite tense recently. Like their relations has been quite tense. They have been launching bombs against each other at the border. To day, Cambodia accused Thailand of bombing one of the casinos in Poipet, which is one of the Border areas with Thailand. That of course affects sea games, it affects sports, it affects every aspect of life.
- [52:01]
Georgina Godwin
Right, Beatrice, thank you so much for joining us. It's been a pleasure to speak to you. That's Beatrice Sevira who was talking to us from Laos. You're listening to the Globalist on Monocle Rent Radio. There's an old joke that goes. A man walks into a bar in Saudi Arabia and asked for a glass of water. Good, says the barman, otherwise we'd both be in trouble. Well, that is now changing as the kingdom has loosened its rules around alcohol. In what's always been viewed as a strictly teetotal country, it's now openly advertising for servers with a knowledge of cocktails, wines and spirits. So I'm joined by our Gulf correspondent, that's Inzaman Rashid Insi. It's lovely to have you on the show. As ever to see vacancies for bar staff in Saudi Arabia would have been, been unthinkable just a few months ago. Tell us how the rules have changed.
- [53:10]
Inzaman Rashid Insi
Yeah, it, it feels a little bit odd. And, and when I saw some of these adverts as well, it was literally people, they want people who can be essentially smelliers in, in restaurants and hotel bars, but people who can mix cocktails, not mocktails and you know, ensure that they, they know their vermouth to their jinns. And so I think it's hugely important step in Saudi Arabia. And this has all come, Georgina, because of Riyadh's loosening of alcohol restrictions that we've seen kind of subtly take place over the last few weeks in particular, it was just last month that they made this, what is a pretty historic shift in the kingdom, long standing prohibition of, of alcohol. And what they have allowed is for foreign non Muslims to now actually access the liquor stores that are around the country and they're opening up more liquor stores as well. So this basically means that if you're a premium residency holder, you get that premium residency by either the nature of work that you do or you can actually purchase, purchase a premium residency. It's currently a pretty small, quite affluent group who pay a significant fee for this long term status. It means that you can go to these liquor stores. There's one in Riyadh, there's one in Jeddah, there's one out opening near the Aramco site in Dahran and you can go and purchase alcohol. Currently only it is foreign non Muslim diplomats who could purchase alcohol. But this residency allows you now to go and access alcohol in pretty strict conditions. I was just in Riyadh over the last few days. Georgina. We actually went to the alcohol store in, in the capital. It's in the diplomatic quarter. It's all blacked out. There's actually gates which you have to bypass security to get into. There's no sign saying that this is the alcohol store. It's kind of a place where you just have to know where it is. You can't even kind of Google Maps it really. You just kind of have to know that that's where the alcohol store is and that's where I'll go and pick it up. But actually what we're finding now is that even if you don't have a premium residency and you've got a Western passport and you're not a Muslim, it's pretty easy actually to get inside. And the restrictions are a lot less than what they once were.
- [55:57]
Georgina Godwin
How do you think this is going to shape the Kingdom?
- [55:59]
Inzaman Rashid Insi
Iny look, this is really interesting, right, Georgina, because it's, it's kind of Saudi's message that they are opening up and, and probably because they're, they're realizing they have to, right? If they want to attract the, the number of international tourists, they've said they want 150 million visitors by 2030. Then I think this is a step that they have to take in order to achieve that. They've got something, some of the, the most beautiful resorts in the world, the Red Sea resort, absolutely stunning. But they're all completely dry. You've got no access to any alcohol. So people will be saying, well, why are we spending a lot of money to stay in very luxury resorts across the kingdom, but we don't have access to alcohol. I think the same is for Riadair as well. Riadaire, the, the new premium and luxury airline which is, which is coming out very shortly recently or have started operating flights already. But can you really have a luxury dry airline? And so I think this, these are all small steps actually to opening up Saudi Arabia as a whole and allow people to come in. Of course, you've got the Football World cup arriving in 2034 as well. And it just seems a bit bizarre to have a Football World cup without any alcohol. I don't know. That just doesn't feel. Feel right.
- [57:26]
Georgina Godwin
It might make it a better Football World Cup. So it's going to be a boozy new year in Riyadh.
- [57:32]
Inzaman Rashid Insi
Well, it might be. I, I was just, as I said, I was just in, in Riyadh over the last few days and, and we spent some time with some expats who live in the diplomatic quarter. And some of those do have this premium residency status. And actually the way that it was working before is that if you had friends in a, in an embassy, in a nearby embassy, then you could access, you know, get a few bottles, bottles from them because the, the embassies have kind of unlimited supply from this liquor store. But now if you do have this premium residency status, it means you can wander in, pick up bottles of alcohol whenever you want.
- [58:09]
Georgina Godwin
Well, cheers. Cheers to that. Insy. Thank you very much indeed. Insam and Rashid there, our golf correspondent. And that's all we have time for today. Thanks to our producers, Carlotta Rubello, Chris Chermack and Ryoma Takahashi. Our researcher, Joanna Moser and our studio manager, Mariella Bevan, with editing assistance by Christy o'. Grady. The headlines are on the way and lots of music. The briefing is live at midday in London and the Globalist returns at the same time tomorrow. I'm Georgina. Thanks for listening. With ubs, you have a true a truly global partner incorporating new technologies, innovative approaches and unexpected opportunities, leading you to insights that help answer the questions that matter. Delivered with passion, care and unmatched expertise. Because it's about rising with the dawn each day, knowing that we can do even better. That's what banking is to us. Not just work, but a craft. UBS advice is our craft.