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Merkel Seeks Tighter Curbs as Europe Battles to Contain Pandemic

Merkel, Macron Seek Solutions in Europe’s Coronavirus Battle

Chancellor Angela Merkel will push for sharper coronavirus restrictions in talks with regional German officials, as Europe’s leaders labor to contain the alarming increase in cases.

Like her counterparts across the continent, Merkel is striving to avoid reimposing the broad curbs that brought economic activity to a near-standstill in the second quarter, pushing instead for localized constraints targeted at virus hotspots.

The German leader will host state premiers at the chancellery Wednesday afternoon in Berlin to discuss how best to coordinate measures for Europe’s biggest economy.

Her government is pushing for compulsory mask-wearing to be expanded to all spaces where people gather in groups, as well as a possible curfew for restaurants and the closing of bars and clubs in areas with relatively high infection rates, according to a briefing paper for the talks seen by Bloomberg.

Merkel Seeks Tighter Curbs as Europe Battles to Contain Pandemic

“We must do without things in certain areas today to win back more freedom in our daily lives tomorrow,” Health Minister Jens Spahn said Wednesday. “The closer we stick to hygiene and distancing rules the harder we make it for the virus.”

European infections began a resurgence in the late summer, fueled by social gatherings and vacation travelers. New cases in Germany jumped to 6,541 on Tuesday, close to the levels seen during the peak in the spring, though they fell back again to 4,464 in the 24 hours through Wednesday morning, according to data from Johns Hopkins University.

Merkel Seeks Tighter Curbs as Europe Battles to Contain Pandemic

France’s seven-day rolling average of new infections rose Tuesday for an 11th day to 17,387, the highest it’s been since the start of the outbreak. After putting six cities including Paris on maximum alert, French President Emmanuel Macron is due to appear on national television later on Wednesday and may announce additional restrictions.

Europe as a whole recorded almost 700,000 new cases last week, the most since the pandemic began, and taking the total to just below 7 million, the World Health Organization said Tuesday in its latest situation report. Britain, France, Russia and Spain accounted for over half of all new cases, the report said.

While relatively low hospitalization and death rates have fueled resistance to harsher restrictions, governments in many nations with surging virus numbers have been left with no choice but to tighten localized curbs.

There’s little evidence so far that the piecemeal approach is working. Germany’s BDI industry lobby on Wednesday warned that the lack of coordination between federal states is causing uncertainty among businesses and consumers.

“A swiftly initiated and coordinated procedure is the basis for both social acceptance and economic activity,” the group said.

Elsewhere in Europe, the regional government of Catalonia, Spain’s most-populous region, is weighing a complete shutdown of bars and restaurants, among other options, according to Barcelona-based newspaper La Vanguardia.

U.K. Prime Minister Boris Johnson is facing growing pressure to order a national “circuit breaker” lockdown, after the opposition Labour Party and government scientists more is needed to get Covid-19 under control. Northern Ireland will introduce some of the harshest measures in Europe, including the closing of schools, bars and restaurants, the U.K. region’s power-sharing executive agreed Wednesday.

And Dutch Prime Minister Mark Rutte announced Tuesday what he called a “partial lockdown,” with sales of alcohol to be banned after 8 p.m. and bars, restaurants and coffee shops shuttered.

Merkel Seeks Tighter Curbs as Europe Battles to Contain Pandemic

In Germany, a survey suggested Tuesday that investors are concerned that resurgent infections could hurt the recovery, while the Bundesbank warned that the nation’s financial system should prepare for increasing strains as a result of company failures and rising indebtedness.

Germany’s revival is losing steam as fears grow over rising infections, the country’s five leading economic research institutes said Wednesday. Gross domestic product will contract by 5.4% in 2020 and expand by 4.7% next year, the experts predicted in their latest bi-annual outlook.

What Bloomberg’s Economists Say...

“After the recovery gained traction in the latter half of September, economic activity has again weakened in the second week of October, particularly in European countries and Canada. Following concerns about renewed outbreaks amid strong rises in Covid-19 cases, activity in Germany, France, Spain and Italy has leveled off.”

--Björn van Roye and Tom Orlik. Read the full INSIGHT

Greece on Tuesday joined other governments in sharpening restrictions, making masks compulsory in all offices and at outdoor spaces where groups gather such as bus stations and shops across the whole country rather than just in some regions.

Eastern Europe has also been hit hard by the new wave of infections and the Czech Republic reported the second-highest daily count of new Covid-19 cases on Wednesday, at 8,325.

Health Minister Roman Prymula said the next three weeks will be “complicated and grim,” and urged citizens to respect hygiene and distancing regulations.

Romania will ban all private events such as weddings and christenings from Oct. 15 after a spike in new cases to record numbers of more than 3,000 over the past week.

©2020 Bloomberg L.P.