Europe’s economy was holding its breath as the worst recession in modern history took place. The resurgence in coronavirus cases this month is a bitter blow that will likely turn the treatment period for the job economy into a weak winter of job losses and bankruptcy.
Bars, restaurants, airlines and numerous other businesses are being hit by the new sanctions as politicians seek to increase the number of cases of infections that are rapidly filling hospitals.
Get Fox Business on the go by clicking here
The economies of 19 countries using the euro in the April-June quarter sank in 11 countries compared to the previous three-month period due to the epidemic last spring. About 1.5 million people are reported as unemployed during the epidemic. The damage was done by a quick decision to spend hundreds of billions of euros (dollars) to keep સરકાર 45 million on government payroll and companies alone.
While the new sanctions are not as harsh as the shutdown of public life imposed in the spring, they are kicking the economy down. For many Europeans, Dage Woo is a prerequisite.
“It’s a disaster,” said Thomas Metzmacher, who owns a restaurant in Germany’s financial hub, Frankfurt, about the government’s decision to impose a curfew at 11 p.m.
He noted that even before the new sanctions, many in his industry would simply survive. Curfew means that those who come for a meal do not extend beyond a few extra beers or snacks, which the restaurant makes most of its profit. “Now that’s it: go eat, finish a drink, give money, go home,” he says.
Coronavirus Stimulus Deal Near Election: ‘Big’ Risk for Trump: Maltese
Experts say the path of the global economy depends on the health crisis: it will return only when the epidemic is under control.
Countries like China, which have avoided major revolutions like Europe, are doing better economically. The USA never took control of its first wave and its economy is surrounded by it.
Europe Reduced the number of infections faster than and managed to keep an eye on unemployment. But the paradoxical statement of Europe’s success against the Trump administration’s failure to contain the epidemic is rapidly improving.
With a new rise in coronavirus cases in Europe, economists are lowering their forecasts.
Ludovic Subran, chief economist at financial services company Allianz, says the economies of France, Spain and the Netherlands are at high risk of re-contracting in the last three months of the year. Italy and Portugal are also at risk. While infection is also on the rise in Germany, it is not bad and the economy seems more resilient.
Rising Expectations Leave Extensive Workforce Skills Covid-19 Jobs Self During Gap
“We have seen an elevated risk of a double-dip recession in countries that once again resort to targeted and regional lockdowns,” he said.
The epidemic is getting worse as governments try to ease the huge financial support being given to home and business owners.
Many governments have programs where they pay the salaries of most workers in vain in the hope that they will be able to return to work quickly after an epidemic. In France and Britain, which at one stage covered one-third of wages, and in Germany 20%. They also provided cash handouts in homes and grants to business owners.
Governments are now in some of those supportive phases and aim to provide more targeted assistance to those directly affected by the new sanctions. Will not help people whose jobs are indirectly affected. A pub facing curfew will be eligible for wage support for its staff, but the brewery that provides it may not offer it.
Its impact will vary between countries – while Britain is shifting to a less comprehensive wage assistance scheme, Germany has expanded its program.
By late November PFIZER may apply for immediate use of the Covid-19 vaccine.
Like the initial outbreak of an epidemic in the spring, areas of Europe most affected by the limitations on public life are services, including travel and hospitality – based on face-to-face contact between people.
Countries like Spain, Portugal and Greece rely heavily on tourism. That’s about 12% of Spain’s economy, compared to the U.S. For less than 3% and about 7% for France.
Europe’s largest airlines expect to operate at about 40% normal levels this winter and are again reducing the number of flights. Lufthansa, British Airways and others are cutting thousands of jobs because they expect to get back to how things were before – even with government assistance.
The health crisis scares consumers even though there are no strict restrictions, so there is less chance of business in the shops.
The European Union is providing 750 billion euros (80,880 billion) in economic aid to member countries to meet this result. Spanish governments were planning to invest in long-term projects such as renewable energy and technology. Now it seems they will have to spend more to keep the economy afloat. The European Central Bank is injecting 1.35 trillion euros (6 1.6 trillion) into the economy, borrowing cheaply even with weaker financial countries such as Spain and Italy.
But as long as the epidemic lasts, economist Subran says, more decisions on how to spend financial aid will become political. Political parties are fighting over how to deploy resources, and unions are on strike to influence the debate. That U.S. Reflects the upheaval in, where the badly needed stimulus package is delayed.
Click here to read more on Fox Business
Ludovic Nicholas-Etienne, shopping for food in the stalls of Parisian Central Bastille Square, is a predictable tragedy. He blamed people who ignored the party’s safety recommendations during the summer and socialized after months of lockdown.
“I was expecting this,” he says, wearing a mask outside just days after France declared a state of emergency. “Some people aren’t responsible enough, so good people pay for bad people.”