German embassy celebrates Day of German Unity
Ambassador of the Federal Republic of Germany Dr. Thomas Prinz and Mrs Anuza Prinz organized a program to celebrate the Day of German Unity and the 35th anniversary of the Kathmandu Branch Office of the South Asia Institute, Heidelberg University, at their residence on Tuesday. Over 400 people took part in the program. This year Heidelberg University’s South Asia Institute (SAI) is celebrating its 60th anniversary and its Kathmandu Branch Office is celebrating its 35th anniversary. SAI has played an important part in promoting and organizing research in Nepal in this period and will continue the academic cooperation in future as well. Vice-President Nanda Bahadur Pun was invited as the chief guest for the event. Ministers and secretaries from various ministries of the Government of Nepal, leaders of political parties, heads of Kathmandu-based diplomatic missions, civil society members, Human Rights advocates, businessperson, media person and people from various walks of life were invited in the program, read a statement issued by the Embassy of the Federal Republic of Germany in Kathmandu. In his welcome speech, ambassador Prinz said, “Our bilateral relations with Nepal this year were marked by the German Government’s decision to continue the development cooperation with Nepal recognizing the good progress Nepal has made in the last years in political and socio-economic development sector” In 1989, the so called “Berlin wall” came down – the wall which had been dividing the Eastern and Western part of Germany since 1963. The “Berliner Mauer” was designed to physically prevent disaffected East Germans from fleeing to the West. The Peaceful Revolution of 1989 led to the opening of the border on November 9, 1989, which for the first time after 28 years allowed Germans to freely move in the whole of the country. It led to a new form of encounters between the East and the West, and it re-united the whole of Europe.
NC spokesperson Mahat defends PR closed list
Nepali Congress spokesperson Prakash Sharan Mahat has said that the closed list of Proportional Representation category was prepared by holding discussions with all the leaders. He said so by organizing a press conference at the party office on Tuesday. Some leaders of the establishment faction have expressed their dissatisfaction with the list submitted to the Election Commission. “Desires of all the leaders may not have been fulfilled,” he said, “But, I hope that they will make the candidates of Nepali Congress and ruling coalition victorious. The new government will be formed under the leadership of Nepali Congress if that happens. This is the democratic process.” The Congress leaders said that the list was prepared by holding discussion with the office bearers, former office bearers, Parliamentary Board and leaders of all the seven provinces among others. He said that the party had not discriminated any one while preparing the list. Talking to journalists at the party office on Tuesday, Guru Raj Ghimire of the establishment faction said that the party had done injustice while preparing the list of Proportional Representation category. “This means, we do not need our names to be included in the list but justice. We will wait till the correction of the closed list. We are ready to face action but will not remain silent,” he said.
Ruling coalition meeting begins in Baluwatar
A meeting of the ruling coalition has begun to finalize seats sharing in the elections to the members of the House of Representatives and Province Assembly scheduled for November 20. Vice-Chairperson of Rastriya Janamorcha Durga Poudel said that the meeting of the ruling coalition has commenced at Prime Minister’s residence in Baluwatar to discuss the agenda of seats sharing among the coalition partners. Top leaders from the CPN (Maoist Centre), CPN (Unified Socialist), Janata Samajbadi Party Nepal and Janamorcha are also attending the meeting. Prime Minister and Nepali Congress President Sher Bahadur Deuba initiated the meeting. Likewise, a separate meeting of the NC office-bearers is also taking place at the PM residence in Baluwatar for internal discussion of the party. The political parties have stepped up their discussions with the scheduled day for finalizing the closed list of Proportional Representation (PR) and filing candidacy for first-past-the-post electoral system coming near.
IMF sounds alarm on UK tax cut plans
The International Monetary Fund has openly criticised the UK government over its plan for tax cuts, warning that the measures are likely to fuel the cost-of-living crisis, BBC reported.
In an unusually outspoken statement, the IMF said the proposal would be likely to increase inequality and add to pressures pushing up prices.
Markets have already raised alarm over the plans, sending the pound plunging.
The government says the measures will kickstart economic growth.
Chancellor Kwasi Kwarteng unveiled the country's biggest tax package in 50 years on Friday. The £45bn cut will be funded by government borrowing.
The IMF works to stabilise the global economy, and one of its roles is to act as an early economic warning system.
"Furthermore, the nature of the UK measures will likely increase inequality," it said.
The IMF said that the government publishing a fiscal plan on 23 November gave it an opportunity to "re-evaluate" tax measures, "especially those that benefit high income earners".
The UK government proposals would scrap the top rate of income tax, and end a cap on bankers' bonuses, among other measures.
The announcement on Friday sparked days of financial turmoil, as investors dumped the pound and UK debt. On Monday the pound fell to record lows against the dollar.
Some of the country's biggest lenders suspended mortgage deals amid the uncertainty.
It added that Mr Kwarteng was due to publish his medium-term plan for the economy on 23 November, which would include ensuring that UK debt falls as a share of economic output in the medium term, according to BBC.
Meanwhile, Lord Frost, the former Brexit minister and close ally of Prime Minister Liz Truss, criticised the IMF's statement.
He told the Daily Telegraph: "The IMF has consistently advocated highly conventional economic policies. It is following this approach that has produced years of slow growth and weak productivity.
"The only way forward for Britain is lower taxes, spending restraint, and significant economic reform."
BBC economics editor Faisal Islam says the IMF's "stinging rebuke... reflected similar concerns from the world's major finance ministries that a crisis brewing in the UK could spill over into a global slowdown".
Its chief economist Huw Pill said the Bank "cannot be indifferent" to the developments of the past days.
He said the Bank would have to deliver a "significant monetary policy response" to protect sterling.
Speaking to BBC Two's Newsnight, former US Treasury Secretary Larry Summers described the situation facing the UK as "very ominous".
"I can't in all honesty remember a time when a set of policy announcements from a G7 country elicited so negative a response both from markets and from economic experts," he said.
"When a country sees its interest rates rise by [as much as they have] in two days at the same time that its currency is falling in a major way, that is a sign that there has been a major loss of market credibility and market confidence.
"The kind of warning that Britain received from the IMF today is a kind of warning that comes much more frequently to emerging markets with new governments than to a country like Britain."
Asked about the UK's plans at an event in Washington, White House economic adviser Brian Deese said he had not been surprised by the negative reaction of the markets and that it was important to focus on "fiscal prudence, fiscal discipline", the Reuters news agency reported, BBC reported.
Moody's credit rating agency said on Wednesday that the UK's plan for "large unfunded tax cuts" was "credit negative" and would lead to higher, persistent deficits "amid rising borrowing costs [and] a weaker growth outlook". Moody's did not change the UK's credit rating.
