Economy

This year, faced by the challenges of the pandemic and its social and economic consequences, European leaders meeting at an informal summit in Porto, hosted by the current Portuguese Presidency of the EU, focused on social issues, including on how to ensure an inclusive recovery, with education and skills at the heart of the EU's political action.

The European Commission will stop efforts to approve the Comprehensive Agreement on Investment (CAI) between China and the European Union (EU). European Commissioner for Trade, Valdis Dombrovskis, said that approval for the CAI is complicated due to recent EU-China relations. 

According to the Portuguese minister of foreign affairs, Augusto Santos Silva, the 27-nation bloc wants to restart talks on three agreements: protection of geographical indication, reciprocal investments, and a pact to foster Indo-European trade. Portugal will host the summit on Saturday in Porto.

In a recent wide-ranging interview Saudi Arabia's Crown Prince, Mohammed bin Salman, appeared to be reinterpreting – if not exactly redefining – the relationship between state and religion in the Kingdom. This is highly dangerous and uncharted territory for a Saudi leader, but something that is absolutely necessary if the Kingdom is to reinvent itself as a modern progressive state, whilst respecting the religious foundations which are part of its legacy and legitimacy.

Tunisian politics are in stalemate following the president's continued refusal to formalise a ministerial reshuffle in the cabinet of the prime minister, Hichem Mechichi. According to the Ennahda movement, Tunisia’s President Kais Saied refused a proposal for a roundtable talk with Ennahda leader and the speaker of the parliament, Rashid Ghannouchi, and Prime Minister Hichem Mechichi. 

As part of the various reforms currently being implemented in Saudi Arabia, the sponsorship system for foreign labour, also known as the "Kafala" system, has been scrapped as of Sunday 14 March. The change was introduced as part of the Labour Reform Initiative (LRI) announced last November.

Sovereign wealth funds in the Gulf countries are facing unprecedented challenges due to the rise of deficit and pressure to increase financial obligations to their public budgets. The drop in crude oil prices, caused by the pandemic last year, forced Gulf countries to increase their borrowing and thereby withdraw from their sovereign wealth funds.