Europe may plunge into lockdown again
Analysts believe European countries are likely to impose more restrictions on social activism in the coming days as the number of daily coronavirus cases grows rapidly..
France reported 10,569 new cases on Sunday (up from more than 13,000 new cases the previous day), Reuters reported. At the same time, the UK reported nearly 4,000 new cases infection. Italy has identified around 1,000 cases, Germany has 1,345 new cases on Sunday and a further 922 cases on Monday. Spain reports nearly 4,700 new infections on Friday.
COVID-19 UK: Will lockdown in England be longer than in other European countries?
On Monday, the German Minister of Health Jens Spahn said that the increase in the number of cases of coronavirus infection in countries such as France, Austria and the Netherlands is extremely worrisome and that Germany will sooner or later bring the infection from there. He added that the dynamics of infection in countries such as Spain, «probably out of control».
«Expect much more restrictions in the coming days and weeks, especially in Europe», – Deutsche Bank analysts said on Monday. «The fact that the virus is already spreading quite quickly is of great concern.».
Coronavirus cases in Europe are growing so rapidly that the World Health Organization warned last week that the region is developing «very serious situation», naming the resumption of infections «alarm signal». Local restrictions have been introduced in various parts of Europe to suppress outbreaks, for example in parts of northern England, as well as in parts of Madrid, the capital of Spain.
However, as the number of cases grows, national governments are considering taking more drastic measures. Great Britain is among those pondering whether to introduce a second so-called «mini-national» krantin to stop the spread of the virus.
The government is also considering imposing a curfew after 10 pm, which will force cafes, bars and restaurants to close earlier. Monday main Medical Adviser and Chief Scientific Adviser to the UK Chris Whitty warned that if the current upward trend in cases continues, doubling every seven days, and no action is taken, the country could expect nearly 50,000 new cases per day as early as mid-October.
Prime Minister of Great Britain Boris Johnson said on Tuesday that the country is on «dangerous tipping point», and he must act now to stop the spread of the coronavirus epidemic.
Johnson stressed that new restrictive measures will be reinforced with fines, and businesses will face additional liability for violation of these rules.
Fortunately, the number of deaths caused by Covid-19 is still lower, and it is hoped that the second wave of coronavirus will not lead to such a surge in deaths as it did as a result of the first outbreak. in the spring. However, the hope that the European economy can bounce back and a V-shaped recovery looks less likely.
Another outbreak of coronavirus affected European Markets: The Stoxx 600 pan-European index fell 2% in early trading on Monday. Germany’s DAX and French CAC 40 fell 3.3%, while the FTSE 100 in London fell 3.4%. Rabobank strategists agree that hopes for economic recovery are quickly fading.
«With the number of coronavirus cases exceeding 31 million and nearly 1 million deaths globally, it is likely that «second waves» or even the first waves, which were never actually brought under control, will continue to put pressure on economic and political prospects, almost undeniable, while the old optimistic hopes of a letter-shaped recovery «V» (or maybe even «W») will continue to fade», – the company said on Monday.
Economists at Capital Economics have said they do not expect complete national isolation, and government ministers definitely do not want to curtail economic activity as harshly as they used to. But they warned consumer confidence could take another blow as the public in Europe could be forced to cut back on social activism and start working from home again..
«While we do not expect the current second wave of coronavirus infections to lead to new national lockdowns, it will hit business and consumer confidence.», – they said on Monday.
«Output appears to remain below pre-crisis levels at least until the end of 2022, although there will be significant differences between countries, with Germany performing significantly better than Italy or Spain».
You can also read materials on this topic: