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AID

Sweden to assist Haiti quake victims

Swedish disaster assistance groups were mobilizing on Wednesday to participate in international relief efforts in Haiti after the country was hit by a devastating earthquake.

Sweden to assist Haiti quake victims

The Swedish Civil Contingencies Agency (Myndigheten för samhällsskydd och beredskap – MSB) said on Wednesday it will be sending two people “as early as tonight” to support United Nations Disaster Assessment & Coordination (UNDAC) teams on their way to Haiti.

“It’s not uncommon for us to receive requests from the UN to help with IT and communications support when there is natural disaster,” MSB spokesperson Karin Wiklund told The Local.

“It’s one of the areas where we’ve proven ourselves rather capable.”

According to foreign media reports, the quake, which measured 7.0 on the Richter-scale, brought widespread damage to the Haitian capital of Port-au-Prince, leveling dozens of buildings, including the National Palace.

So far, there have been no official estimates of the number of casualties, although early indications are that the loss of life will be profound.

The headquarters of the UN mission in Port-au-Prince also collapsed, according to a statement by the international body.

According to the Swedish foreign ministry, ten Swedes working for the UN in Haiti were believed to be in Port-au-Prince at the time of the quake.

A foreign ministry spokesperson told Sveriges Television (SVT) that seven of the Haiti-based Swedes had contacted the ministry to say that they were fine.

Three other Swedes, however, remain unaccounted for, along with a number of other UN staff stationed in Port-au-Prince.

“We know there will be casualties but we cannot give figures for the time being,” Alain Le Roy, the chief of UN peacekeeping forces, told The Associated Press news agency in New York.

The foreign ministry has also been unable to contact Sweden’s honourary consul in Port-au-Prince, as both fixed-line and mobile telephone networks remained out of service following the quake, the Dagens Nyheter (DN) newspaper reports.

In addition to preparations by Sweden’s Civil Contingencies Agency, the Swedish branch of the Red Cross has teamed up with the Expressen newspaper in a drive for donations to assist victims of the earthquake.

According to the head of operations in Haiti for the Swedish chapter of the Star of Hope aid group, around half the buildings in and around Port-au-Prince have been destroyed.

The organization, which operates several projects near the Haitian capital, has also launched an appeal for aid for Haitian earthquake victims, as have a number of other Swedish charities.

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FINANCE

‘We’ll be struggling well into next year’: German borrowing to soar amid pandemic

Germany on Friday passed a 2021 budget that once again smashes its "debt brake" rule, promising to shield businesses and workers from the economic hit of the pandemic as cases continue to rise.

'We'll be struggling well into next year': German borrowing to soar amid pandemic
The seating area of a restaurant closed off in Boltenhagen on the Baltic Sea coast. Photo: DPA

Chancellor Angela Merkel's government plans to borrow €300 billion ($364 billion) across 2020 and 2021 combined after the government pledged more than a trillion euros in aid, including through short-time work schemes (Kurzarbeit) and business support.

“The budget is the basis for everyone to be confident that we can provide the necessary economic and social support to get us through this crisis together,” Finance Minister Olaf Scholz told lawmakers.

The budget for 2021, which passed with 361 votes in favour to 258 against, provides for a total of €179.8 billion in new loans and nearly €500 billion in public spending.

It means for both 2020 and 2021, Germany will abandon its cherished “debt brake”, a constitutionally enshrined rule that forbids the government from borrowing more than 0.35 percent of gross domestic product (GDP), before planning to return to no new debt in 2022.

Restrictions to curb the second wave of Covid-19 – including shutting the food-and-drink, leisure and cultural sectors – continue to burden the economy, which previously pushed Berlin to amplify its aid to businesses.

Yet case rates continue to climb. On Friday, Germany reported a record nearly 30,000 new infections and almost 600 deaths in a 24-hour period.

Now, Merkel is facing calls to tighten restrictions again.

READ ALSO: Germany mulls three-week lockdown from December 20th

Aid can't be 'endless'

Despite the “ray of hope” of a vaccine rollout, Scholz said, “we know that… we're going to be struggling well into next year with the health, economic and social challenges that are going to follow from this pandemic.”

Businesses hit by the current closures are entitled to claim aid amounting to up to 75 percent of their revenues for November and December 2019, expected to cost the government some 30 billion euros.

However Economy Minister Peter Altmaier said last week that support for pandemic-hit firms implemented through November and December could not go on “endlessly”.

Nevertheless Altmaier on Friday said he aimed to increase the ceiling for aid from January in the case of a harder lockdown.

Germany's debt-to-GDP ratio will climb to 70 percent this year, Germany's central bank said in a report published Friday.

But public finances will likely improve as coronavirus measures come to an end, it said.

The government expects the economy to shrink by 5.5 percent this year, before rebounding by 4.4 percent next year.
 

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