There's a weirdly upbeat mood in the city

Are we in denial?

No one seems quite certain whether these are the best of times or the worst of times for the City. Well, OK, few think these are the best of times (that accolade still belongs somewhere back in the pre-2008 boom). But while there are still major problems in the banking sector, including what to what to do on executive pay and bonuses and how to deal with the fallout from scandals such as Libor-rigging and the sale of dodgy loan insurance products to SMEs and individual, there is nevertheless an upbeat mood in the air. This is most obviously epitomised by the FTSE 100 share index, which crashed confidently through the significant 6,300 mark last month and with only a few minor blips since has continued to regain heights not previously seen since before the crash.

But there has also been a noticeable upswing in corporate finance activity, with a rash of major M&A deals either done or on the cards.

In the last week there have been announcements about the leveraged buyout of a majority stake in computer giant Dell, the acquisition of Virgin Media by Liberty Global and even rumours of a private equity backed leveraged buyout of a significant chunk of the UK’s largest mobile telecom provider EE (formerly Everything Everywhere, itself formed from a merger between Orange and T-Mobile). All these deals point to a more buoyant start to 2013.

There have been several theories hatched to explain this sudden upswing. It started with a growing belief towards the end of last year (misguided according to the more bearish commentators) that the actions of the European Central Bank (ECB) and others have done enough to make the euro crisis recede, if not go away all together.

Then the US managed to avoid dropping off the fiscal cliff (again the bears would suggest that we’re not out of the woods here either, with a no real budget agreement struck and the pain merely deferred). But all these attempts to rationalize this upswing (which has so far not been matched by any sort of similar recovery in the real economy) don’t really explain it enough. Now, there will be plenty of people keen not to ask too many questions.

So desperate have we become for good news (any good news) that it seems like heresy to even question the source of any optimism.

The rest of this article can be read here, on economia

Photograph: Getty Images

Richard Cree is the Editor of Economia.

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Why Theresa May is a smuggler's best friend when it comes to child refugees

Children prefer to disappear than trust the authorities.

On Monday, Theresa May abolished the post of minister for Syrian Refugees. On Tuesday, a House of Lords select committee report found there were 10,000 migrant and refugee children missing in the EU, of which Britain is still technically a part. And smugglers across the continent raised a glass.

Children do not stay still. In 2013, Missing Children Europe reported that half of unaccompanied children placed in reception centres vanished within the next 48 hours. One explanation is that they fall prey to the usual villains – pimps and gangs. 

But there is another explanation. Refugee and migrant children have so little trust in the authorities that they would rather disappear and put their faith in the underworld. 

One reason for this is that under EU law, asylum seekers are returned to their first point of entry, which is likely to be an overcrowded Greek port rather than a city with education facilities and job prospects. 

Children will go to extreme measures to disappear. The report noted:

“We were particularly troubled to hear of children in Italy and Greece burning or otherwise damaging their fingertips in order to avoid registration, in many cases because they were afraid of being detained or forcibly returned to transit countries having reached their final destination.”

Children are also desperate to find their families. The EU’s Family Reunification Directive should in theory reunite families who have successfully sought asylum, but the UK has opted out of it (and now the EU altogether). Other EU member states have moved to restrict it. The UK has opted into the Dublin Regulation, which allows for family reunification. 

This is partly due to a suspicion that family reunification acts as an incentive for families to send children first, alone. But the report found no evidence of that. Rather, it is usually a case of parents trying to protect their children by sending them out of a dangerous situation. 

The process can be achingly uncertain and slow. Smugglers understand how impatient children are. Two MEPs told the select committee about the port in Malmö, Sweden:

"Traffickers await the arrival of minors, telling them that: 'Well, we can get you to your family much quicker than if you go through the system here' and that 'Getting a guardian will take ages, and then they do the age assessment, which is intrusive. Don’t do that. Just go there, call this guy, take this mobile and they’ll take care of you.'”

In his brief time as Syrian Refugees minister, Richard Harrington brought the topic of unaccompanied minors to MPs again and again. He promised to improve the speed at which applications under the Dublin Regulation were processed. On 13 June he told MPs: “We are doing our absolute best to speed it up as much as we can.”

His role has now been absorbed into the Home Office. No. 10 described it as a temporary position, one no longer needed now the resettlement programme was underway. When the UK finally triggers Article 50 and begins Brexit, it can also leave its EU obligations behind as well. May, the former Home secretary, voted against allowing in 3,000 child refugees.

This does not bode well for asylum policy in Brexit Britain. Meanwhile, with no fast legal route to family unification, smugglers can look forward to the kind of bumper profits they enjoyed in 2015

The consequences can be fatal. Masud, a 15-year-old unaccompanied Afghan, travelled to Calais in the hope of reaching his sister in the UK under the family reunification rules. 

As the report put it: “Masud died in the back of a lorry while trying to reach the UK just before the New Year, having lost hope that his claim to join his sister would ever be heard.”