Now there is growing fear in the economy for the second lockdown



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northA few days ago, hardly any entrepreneur could imagine a second block. But with the rapidly growing number of new infections, the concern is great again. Federal Economy Minister Peter Altmaier (CDU) assured after the federal-state meeting that a second shutdown should be avoided. Bavarian Prime Minister Markus Söder (CSU) was similarly quoted. But Söder also said: “Actually, we are much closer to the second block than we want to admit.”

The resolutions of the federal and state governments after more than six hours of negotiations, some of which were heated, could not remove the concerns of business representatives. Frustration over unclear decisions is great. The policy announcements are in many places unclear and imprecise, according to the Federation of German Employers’ Associations (BDA).

There they fear that more tensions will soon develop and that economic life will gradually come to a standstill. In particular, the BDA noted that business travel should continue to be possible and that there should be no blanket ban on accommodation. “Unnecessary bans must be avoided,” says the appeal.

Personalized assistance programs are being considered

In the hotel and restaurant industry in particular, it is no longer good to talk politics. “After the regulatory chaos and the frustration of hoteliers and guests, it is completely unacceptable and incomprehensible that the federal states cannot agree to suspend the bans,” said Guido Zöllick, president of the German Hotel and Restaurant Association (Dehoga). The state governments of Saarland and Saxony, as well as the courts of Baden-Württemberg and Lower Saxony, have lifted the ban on accommodation within state borders. In Schleswig-Holstein, however, the Higher Administrative Court rejected a corresponding urgent request.

The industry is also affected by curfew and contact restrictions when certain thresholds are reached. Bavarian Prime Minister Söder, for example, had declared that the curfew would be brought forward from 11 pm to 10 pm if the number of new infections in the regions rose to more than 50 per 100,000 inhabitants in a week. “The measures threaten existence itself,” Zöllick said. In return, he asked for more bridge aid: “It is now even more important that aid for the hospitality industry is extended, expanded and improved in a sustainable way.”

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For Germany, the IMF now expects an economic recession of just six percent this year.

The federal government recently at least offered the prospect that there will be specific aid programs. Federal Finance Minister Olaf Scholz (SPD) said this week: “There is still room in some aid programs, such as bridge aid, because they were not used as much as was feared. This allows for customized programs for the event industry, for example. ”

Discussions between all parties are ongoing. The industry is also looking forward to the next few weeks. “A second lockdown would have fatal consequences for the German economy, which is slowly recovering,” said BDI CEO Joachim Lang. For next year, significant incoming orders were already missing, he told the “Frankfurter Allgemeine Zeitung”. German industry, which is heavily dependent on exports, is particularly affected by this.

Municipalities also fear a new blockade

The chairman of the Volkswagen Supervisory Board, Hans Dieter Pötsch, had already warned of new severe restrictions in September. “From my point of view, all efforts by business, politics and civil society should be aimed at preventing a second shutdown,” said Pötsch. In the spring, the blockade of the auto industry paralyzed both production and demand.

“Such an abrupt and immediate shutdown of systems, logistics chains, employment combined with the treatment of a completely new type of highly infectious viral disease in professional and private life, which was previously difficult to imagine,” said Pötsch.

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The Food Service Fight for Survival

Since then, manufacturers have done their best to prevent infection among their employees and maintain production, which has now reached pre-crisis level at many plants.

However, concern about a second closure has increased again not only in companies, but also among those responsible in the municipalities. So far, the economic crisis has led to large business tax losses there, even if the federal and state governments have agreed to offset them.

“We have to avoid a second blockade. Our entire country would be greatly affected if schools, kindergartens, shops and restaurants had to close again, ”said Burkhard Jung, president of the German Association of Cities, WELT.

The economy should not suffer another setback. “That is why, as cities, we call on the population to take the increase in the number of infections very seriously,” Jung said. Everyone should work to make sure there is no second blockage.

Include local conditions in decisions

The trade showed that it was satisfied with the resolutions. A second lockdown with company closings “would not be appropriate” for the current pandemic situation, according to the German Trade Association (HDE).

The additionally agreed measures, for example regarding the number of people at private parties, left the retail sector out of the picture. In retail, they rely on customers to meet hygiene standards and mask requirement in the coming weeks. Otherwise, there is the fear of the all-important Christmas affair.

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11.06.2019, Saarland, Dillingen: Night traffic passes the Dillinger Hütte.  Dillinger Hütte, the parent company of Dillinger Hüttenwerke, was founded in 1685 and is the largest plate factory in Europe.  Dillingen is the only pig iron production plant in Saarland.  Photo: Andreas Arnold / dpa |  Use all over the world

The ship also welcomed the resolutions. The new regulations indicated the “common will of all political leaders” to find a balance between protecting health and maintaining economic and public life, said Hans Peter Wollseifer of the Central Association of German Crafts (ZDH). To control the pandemic, Wollseifer called for local conditions to continue to be taken into account.

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