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TERRORISM

Two men held in Germany over Swedish parliament terror plot

German police have arrested two people suspected of planning a terror attack on the Swedish parliament, reports Der Spiegel.

Two men held in Germany over Swedish parliament terror plot
The Swedish parliament building in Stockholm. Photo: Arild Vågen/Wikimedia Commons

The men, aged 30 and 23, were arrested in Gera south of Leipzig on Tuesday morning.

Identified as Ibrahim M G and Ramin N, Der Spiegel reports that they are Afghan citizens with links to IS Khorasan, the splinter group of the Islamic State terror group in Afghanistan.

They are suspected of planning to open fire on police officers and other people in or at the Swedish parliament building in Stockholm, in retaliation of a series of Quran burnings in Sweden in recent years. 

According to the prosecutor’s arrest order, the men, acting in close consultation with officials of IS Khorasan, researched the area and tried to obtain weapons, albeit unsuccessfully.

Swedish police and security police declined to comment on the reports when approached by Swedish media.

The men were expected to appear at a remand hearing in Karlsruhe on Tuesday.

It’s the second suspected terror plot uncovered in Germany against Sweden over Quran burnings. In December, two brothers from Syria were convicted of planning a bomb attack on a church in Sweden.

Last year, at least four militant Islamic terror groups called for revenge attacks against Sweden in response to the series of Quran-burning protests carried out by the Iraqi activist Salwan Momika and by the Danish activist Rasmus Paludan. 

As a result, Sweden’s National Centre for Terrorist Threat Assessment in August raised the terror threat level to “High”, or four on a scale of five. In a interview with The Local at the time, terror researcher Magnus Ranstorp called the threat against Sweden “unprecedented”. 

According to the Germany’s prosecutor’s office, the two suspects are said to have made concrete preparations for the planned attack in close consultation with ISPK officials.

Germany’s security authorities have long been warning against the ISPK, an offshoot of the Islamic State in Afghanistan and Central Asia. The terrorist group has already tried in several cases to incite young people in Germany to carry out attacks on “infidels”, or police officers via the internet.

A cell of Islamists from Tajikistan, Kyrgyzstan and Turkmenistan arrested in Germany in July 2023 is also said to have been in contact with ISPK cadres. According to Spiegel, citing judicial files, they were possibly planning attacks on Jews in Germany, and a liberal mosque in Berlin could also have been a terrorist target.

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MONEY

Swedish central bank lowers interest rate for first time in eight years

Sweden's Riksbank central bank has lowered the country's main interest rate by 0.25 percentage points to 3.75 percent, down from 4 percent. This is the first time the bank has lowered the rate since 2016.

Swedish central bank lowers interest rate for first time in eight years

The decision to lower the so-called policy rate was widely expected, as the central bank itself indicated in a policy rate prognosis from March that it could lower rates between five and six times before the end of 2025, starting in either May or June this year.

“Monetary policy and diminishing supply shocks have contributed to inflation falling, and now it’s nearing the target,” the bank wrote in a press statement.

The bank’s inflation target is 2 percent. In March, inflation was just 2.2 percent.

“If the inflation outlook remains the same, the policy rate could be lowered at least two more times in the second half of the year,” the bank wrote, adding that new information since its most recent monetary policy report was published in March “strengthens the picture of inflation also being closer to the target in the slightly longer term”.

This effectively rules out the possibility of a further rate cut in June.

It also warned that the outlooks for inflation are “uncertain”, highlighting the strong American economy, geopolitical unrest and the krona’s exchange rate as risk factors which could cause inflation to rise again.

“Changes to monetary policy should therefore be taken carefully, with gradual cuts to the policy rate.”

Thursday’s announcement is crucial, as the policy rate is the bank’s main monetary policy tool. It decides which rates Swedish banks can deposit in and borrow money from the Riksbank, which in turn affects the banks’ own interest rates on savings, loans and mortgages.

If bank interest rates are high, it’s expensive to borrow money, which means people spend less and as a result inflation drops.

This cut to the policy rate won’t immediately lower the cost of your mortgage, but it’s likely to have a knock-on effect.

At its last meeting before the cut, the bank chose to keep rates the same at 4 percent, where they stood since September last year – the highest policy rate seen in Sweden since 2008, and the end of almost a year and a half of interest rate hikes.

The bank predicted in March that the policy rate could drop to as low as 2.75 percent, a drop of 1.25 percentage points, by the end of 2025. If mortgage rates also drop by the same amount, it would reduce the cost of a 3 million kronor mortgage by around 3,000 kronor a month.

The new rate will come into effect on May 15th.

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