Germany approves one-month partial Covid-19 lockdown, SMEs to get more aid
Berlin imposed a one-month lockdown overnight in a bid to stem the resurgence in Covid-19 infections evident since early October.
In just the last week, the number of new infections had roughly doubled from about 50 per 100,000 inhabitants to 99.1, with the former being the threshold for new measures to be put in place.
It also followed a reported new record of 15,000 fresh cases over the preceding 24 hours.
Chancellor Angela Merkel said the restrictions on mobility, including the closure of bars, night clubs and restaurants, were needed to avoid a national health emergency.
Unlike in the Spring however, shops and hairdressers could remain open.
The speed of the recent increase in cases meant that tracking and isolating new cases could not be relied upon as the chief instrument for supressing the infection curve as the origin of most was unclear.
The new restrictions would kick into effect on 2 November and last until the end of the same month.
Public gatherings would also be limited, to no more than 10 persons from a maximum of two households.
A new package of stimulus measures would be announced to offset the impact on small and medium-sized firms.
Even so, commenting on the potential economic implications of the lockdown, economists at ING said: "The sharp fall in economic activity in the second quarter was not only driven by the lockdowns but also by supply chain disruptions and fading external demand.
"While the former doesn’t seem to be the case, the risk that at least the rest of Europe will follow Germany, France and Ireland is high. Even if the German government announced to pay companies hit by the second lockdown a grant of 75% of their November 2019 turnover (around 10bn euro in total), renewed uncertainty, lockdown-fatigue, job losses and bankruptcy fears will dent confidence, spending and investment."