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AID

Liberals slam Left Party for dictatorship aid

Liberal Party MP and foreign affairs spokesperson Fredrik Malm has accused the Left Party of funneling millions of kronor in development aid to leftist authoritarian and totalitarian regimes and causes around the world from 2005 to 2009.

In an editorial in the Dagens Nyheter daily on Monday, Malm cited the Partido Comunista Colombiano, a non-reformed Marxist-Leninist party in Colombia, as well as Laban ng Masa, an alliance of revolutionary groups on the far left in the Philippines, as recipients of financing through the Left’s international forum (Vänsterns internationella forum – VIF) and called on Lars Ohly to explain why the party supports dictatorships.

“Voters have the right to be informed about what happens to Swedish aid if the Left Party sits in a red-green government after the election,” wrote Malm. “What a party does in opposition is of course what it is also prepared to do in a majority with much greater resources and political influence.”

Each party has a parliamentary aid organisation that receives annual support from the Swedish International Development Cooperation Agency (Styrelsen för Internationellt Utvecklingssamarbete, SIDA) for development cooperation. The total annual budget is 75 million kronor.

According to Malm, the Left Party is sponsoring a new political party formed by Laban ng Masa that supports an armed communist rebellion, PLM, with 640,000 kronor in 2009-2010.

Furthermore, at a conference in Manila in 2007 funded by VIF with Swedish tax revenue, seven leading Left Party members were on the guest list, as well as Cuba’s ambassador to the Philippines and representatives from Hugo Chávez’s regime in Venezuela.

Malm also accused the Left Party of “plowing” 150,000 kronor of Swedish tax money into the current dictatorship in Vietnam for nine months in 2007. In addition, the Left Party’s international collaborations have a common thread: the Chávez regime in Venezuela.

VIF has planned Venezuelan lecture tours, sponsored think tank that have published writings on Chávez’s revolution and paid for trips for Chávez supporters. In 2005, the party organised a conference in Caracas in which Ohly participated.

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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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