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AID

Somali pirates kidnap aid workers: Swedish NGO

Sweden's International Aid Services (IAS) confirmed Friday that three of its employees kidnapped in Somalia this week were in the hands of pirates and called for their release.

Somali pirates kidnap aid workers: Swedish NGO
Soldiers of the Somali National Army (SNA) patrol near the town of Afgoye.

The two Kenyan aid workers and a Somali doctor were kidnapped in northern Somalia’s semi-autonomous Puntland region on Wednesday.

“It has now been confirmed that a certain pirate group was involved. The hostages are reported well and have been taken to a known location under the control of pirates,” IAS said in a statement Friday.

“No demands have so far been presented by the group.”

IAS said it was in talks with several groups in Kenya and Somalia but refused to name either the kidnappers or where its employees were being held.

The agency “condemns this serious act of aggression against humanitarian staff in the strongest terms,” it said.

“We urge the attackers to immediately and unconditionally release our staff,” it said.

Somali police said the kidnapping happened near the village of Baadweyn, about 50 kilometres north of Galkayo, at the border between Puntland and the self-proclaimed separate region of Galmudug to the south.

The abductees’ driver and two of their police escorts were wounded in the snatch.

Somalia has been crippled by unrest and has been without an effective government for nearly 20 years, with Islamists, warlords, criminal gangs and pirates controlling portions of the vast east African country.

Last week four foreigners working for the Norwegian Refugee Council were released in southern Somalia following a joint operation by Somali and Kenyan forces three days after their abduction.

In October 2011, gunmen seized two Spaniards working for Medecins sans Frontières in the Dadaab refugee camp. They are still being held hostage in

Somalia.

Also that month, a Dane and an American were kidnapped in Galkayo and held hostage for three months before being freed by US special forces.

In June, two South African sailors abducted in the Indian Ocean in 2010 were freed by Somali special forces after they had apparently passed from pirates to Islamist insurgents.

In July 2009, a French agent for the DGSE foreign intelligence service, identified by the pseudonym Denis Allex, was seized from his Mogadishu hotel by Islamist militants.

He remains in captivity.

IAS, founded in Sweden in 1989, conducts projects mainly in east Africa, focusing on education, water supplies, health and food security, and employs some 350 people.

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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