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AID

Denmark gives extra 60m kroner to South Sudan

The development minister was in South Sudan over the weekend and announced an immediate increase in Danish support to the famine-threatened country.

Denmark gives extra 60m kroner to South Sudan
Mogens Jensen meets with locals in Sambura. Photo: Claus Bech/Scanpix
During a trip to Juba in South Sudan over the weekend, Development Minister Mogens Jensen announced 60 million kroner ($10.8 million) in additional aid to the war-torn country. 
 
“I spoke with people in a UN tent that had fled their homes. I met with UN and Danish emergency help organisations and the message was the same: the situation is serious. We need action now. Therefore, we are increasing our support to South Sudan’s suffering people by 60 million kroner,” Jensen said in a press release. 
 
International NGOs have been warning of the dangers of widespread famine in South Sudan, which has been struggling with ethnic fighting, for months. The UN Security Council in August called the food insecurity situation in South Sudan “the worst in the world”, warning that up to 50,000 children could die from hunger. The situation has been worsened by a cholera epidemic.
 
 
According to the Development Ministry, Jensen met with South Sudan’s foreign minister, Barnaba Marial Benjamin, and “strongly urged” the South Sudanese government to put an end to the violence in the country. The same message was delivered to rebel leader Riek Machar in a telephone conversation.
 
“I stressed to both of them that there is a need for political action that can stop the violence and thus prevent their own people from dying of hunger,” Jensen said. 
 
Ten of the 60 million kroner from the Danish government will go to UNICEF, while the remaining 50 million will go to Danish NGOs working in South Sudan and assisting the roughly 500,000 South Sudanese who have fled to neighbouring Kenya, Uganda and Sudan.  

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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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