Politics complicates disaster relief

Aid for North Africa is being complicated by politics. [View in browser]( [Bloomberg]( Welcome to Balance of Power, bringing you the latest in global politics. If you haven’t yet, sign up [here](. Two natural disasters that killed at least 9,000 people days apart in North Africa have foreign powers racing to offer aid. Whether it arrives [depends largely on politics.]( As Morocco makes last-ditch rescue efforts after its most powerful earthquake in a century and eastern Libya counts the dead from flooding that destroyed entire neighborhoods, their decisions on what assistance to accept is being shaped by domestic affairs and international diplomacy. Morocco, which is fiercely protective of its image as a regional bastion of stability, is mostly trying to manage the quake search itself. Despite fielding aid offers from over a dozen countries, including former colonial ruler France, long-time foe Algeria and recent friend Israel — it has only accepted a handful, notably from the UK, Spain and United Arab Emirates. That’s left [Emmanuel Macron fuming](. In a video, an agitated French president evoked “controversies that shouldn’t exist.” Even before the disaster, relations were rocky. Morocco was unhappy about Macron’s efforts to pursue a closer relationship with energy-rich Algeria and refusal to recognize its plans for the disputed Western Sahara. In Libya, the effects of a civil conflict that raged for much of the past decade have been an obstacle. Rival governments in the east and west mean the OPEC nation, despite its oil wealth, has invested little in infrastructure, with disastrous consequences. In a sign of some convergence, both administrations pledged financial assistance. Tripoli-based Prime Minister Abdul Hamid Dbeibah said the tragedy was an opportunity to unite the country. About 12 nations are providing assistance. They include Egypt and Turkey, which supported rival sides in Libya’s war. Whether help will be accepted from the US, which backed the 2011 revolt that ousted dictator Moammar Qaddafi and plunged Libya into chaos, remains to be seen. — [Michael Gunn]( The aftermath of floods in Derna, eastern Libya, on Monday.  Source: AFP/Getty Images Global Must Reads China hit back at the European Union’s investigation into its electric-vehicle subsidies and chided foreign automakers for failing to keep up with technological innovations. China’s top auto industry body and a leading Communist Party newspaper joined the criticism, signaling a new front may be set to open [in the global trade wars](. While Chinese EV manufacturers’ European sales pale in comparison to market leaders like Volkswagen, Tesla and Stellantis, they are growing quickly. Russian President Vladimir Putin accepted an invitation from Kim Jong Un to visit North Korea after the two held their first summit in four years, which Washington believed centered on [Pyongyang sending arms]( to help Moscow attack Ukraine. The official Korean Central News agency called the talks between Kim and Putin “an epoch-making event.” A US-Iran prisoner exchange could happen as soon as next week under an agreement that’s seen as a [first step toward fresh talks]( on Tehran’s nuclear program. The deal, which also saw the US allow Iran to access $6 billion in frozen funds, has opened President Joe Biden up to criticism that he’s encouraging more hostage taking. Under pressure from Putin to [repatriate their wealth]( and squeezed by international sanctions since the invasion of Ukraine, Russian billionaires have pulled assets worth $50 billion from Europe. The shift breaks with a decades-old practice in which the rich take advantage of investor-friendly legal systems and the chance to earn dividends in foreign currencies. The US and Bahrain upgraded their defense relationship [with a new pact]( that could become a model for Washington’s commitments to other Middle East allies. The agreement comes as the Biden administration works with Crown Prince Mohammed bin Salman on a deal that would see Saudi Arabia recognize Israel in exchange for firm US security pledges. As Turkey and the EU engage in a new effort to revive stalled talks over the country’s membership of the bloc, Ankara criticized the European Parliament’s insistence on [cooperation in enforcing sanctions]( against Russia. Egypt is considering holding presidential elections before the end of the year, sources say, an earlier-than-expected date [as it grapples]( with its worst economic crisis in years. Indian Prime Minister Narendra Modi is poised to open a Hindu temple where a centuries-old mosque once stood, achieving a pledge made by his nationalist party in 1990 that may help [further energize his base]( ahead of elections next year. Washington Dispatch The announcement by Senator Mitt Romney of Utah that [he will not seek reelection]( in 2024 puts new emphasis on the fading from public life of a certain kind of Republican, one willing to work with Democrats — and defy former President Donald Trump. Romney, who is 76 and cited age as a reason for his decision, has always been unflinchingly conservative yet was once elected governor of a liberal state, Massachusetts. In the Senate, he found bipartisan common ground to help pass Biden’s infrastructure act and other legislation. He also voted to convict Trump in both of his impeachment trials. Projecting his usual optimism, Romney told reporters that while “the Republican Party today is in the shadow of Donald Trump,” he is part of what he called “the wise wing of the Republican Party. I don’t believe we’re going away.” One thing to watch today: Biden will deliver an address in Maryland that champions his administration’s “Bidenomics” agenda. [Sign up for the Washington Edition newsletter]( for more from the US capital and watch Balance of Power at 5pm ET weekdays on Bloomberg Television. Chart of the Day ​Household incomes fell in a third of US states last year including Michigan, Pennsylvania and Ohio — widely [considered to be swing states]( in the 2024 presidential election. Just five saw median income levels improve, according to Census Bureau data. And Finally Medellín — the Colombian city once known as the murder capital of the world and the base of drug lord Pablo Escobar — has undergone a revival. An [upsurge of newcomers]( since the Covid-19 pandemic has brought new restaurants, fancy shops and guided tours, with digital nomads and their laptops crowding the cafes and co-working spaces. But it is also driving up rents and sparking resentment among locals, with posters popping up, reading in Spanish: “No Gringos. Don’t let the colonizers inflate prices.” ​​​​​Posters criticizing the influx of foreigners and short-term rental platforms like Airbnb. Photographer: Edinson Arroyo/Bloomberg More from Bloomberg - [Bloomberg Opinion]( for a roundup of our most vital opinions on business, politics, economics, tech and more - [Economics Daily]( for what the changing landscape means for policy makers, investors and you - [Next Africa](, a twice-weekly newsletter on where the continent stands now — and where it’s headed - [Green Daily]( for the latest in climate news, zero-emission tech and green finance Explore more newsletters at [Bloomberg.com](. Follow Us Like getting this newsletter? 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