Merkel Backs Easing With Regions Eager for Return to Normality

(Bloomberg) -- With the main tourist season fast approaching on the Baltic island of Usedom, Rolf Seelige-Steinhoff is itching to reopen his hotels after almost seven weeks of lockdown wiped out more than a quarter of the sales he was expecting this year.

“It almost feels like wartime for us, because our work collapsed under our feet from one day to the next,” said Seelige-Steinhoff, the head of Seetel, a 40-million-euro ($43 million) a year hotel group which is the largest on Usedom.

Like many other business leaders across Germany, Seelige-Steinhoff is eagerly awaiting a meeting between Chancellor Angela Merkel and the 16 state premiers later on Wednesday in which the government wants to hash out a road map for a further, gradual reopening of Europe’s largest economy.

Remaining restrictions are likely to be lifted at different speeds depending on the region, with states given freedom to pursue their own strategies, news agency DPA reported. Bavaria set the tone on Tuesday, announcing that larger shops and malls can reopen from May 11, with restaurants following on May 25 and hotels from May 30.

“We have regional differences when it comes to the spread of the virus,” Health Minister Jens Spahn said Wednesday on ARD TV. “What’s important to me is that we all have the same goal, that we have as much normality as possible and as much protection as possible.”

At a caucus session on Tuesday, Merkel said further easing makes sense as there has been a lot of progress in fighting the virus in the past few days, according to a participant in the meeting.

But she also warned that if there is a renewed outbreak with more than 50 acutely infected per 100,000 inhabitants in a given region, then local curbs will have to be reinstated to prevent the disease from spreading. The number of new coronavirus cases in Germany rose Wednesday for the first time in six days, according to data from Johns Hopkins University.

Merkel has been under pressure to speed up the country’s exit from the curbs that brought business activity in some sectors to a virtual standstill. The economy is forecast to shrink by 6.3% in 2020, more than even during the financial crisis a decade ago, according to government projections.

The German leader has taken a cautious, step-by-step approach to relaxing the curbs, highlighting the delicate balance governments across Europe are trying to strike between getting the economy going and preventing a second wave of infections.

Late last month, some small shops, hardware stores and car dealerships were allowed to resume trading, while this week hairdressers reopened and schools have restarted for some students.

Urgent Appeal

Merkel and her ministers have tried to encourage the 16 states to adopt a unified stance on lifting restrictions. However, some regional leaders, eager to grab the public spotlight, have jumped the gun in recent days and announced their own easing plans, creating the potential for a patchwork of contradicting rules.

Merkel’s Christian Democratic caucus leader on Tuesday criticized state premiers for announcing their own plans ahead of the consultations with the chancellor. “I urgently appeal to the state leaders to follow a coordinated course here,” Ralph Brinkhaus said Tuesday in Berlin.

Merkel, a trained physicist known for her methodological approach to crisis-management, blasted early attempts at easing restrictions as “discussion orgies,” warning that a renewed outbreak could make the crisis longer and deeper.

‘Necessary Minimum’

After being forced to close since mid-March, economic hardship is eroding the patience of many businesses. From family-owned firms to the nation’s flagship airline Deutsche Lufthansa AG, many companies are struggling even though the government has fast-tracked more than 1 trillion euros in emergency loans and other forms of aid.

“We need clear and nationwide rules now on store opening hours,” said Stefan Genth, managing director of the country’s retail federation HDE, adding that the crisis will continue long after all retailers are allowed to sell their goods again. “Even with stores open people are only buying the minimum necessary,” he said.

Back in Usedom, Seelige-Steinhoff is hoping that the political leaders will come out with a clear timetable that will allow him to once again host guests from all over the country. In the meantime, he is going out of his way to adopt a comprehensive hygiene plan to help draw customers.

Measures include distancing between waiters and dinner guests, laminating TV remote controls, and installing acrylic glass walls in front of the reception.

“We’re doing everything we can to keep guests safe,” he said. “The sooner we can reopen, the better.”

©2020 Bloomberg L.P.