How does the pandemic-stricken economy come to life? The answer is: very, very carefully.
As coronavirus continues to spread around the world, European governments are considering reopening factories, offices and schools, minimizing the chances of further spread. On Monday, Austria said it would reopen stores after Easter, becoming the first country in Europe to make the decision.
Governments are increasingly under pressure to explain their plans because the measures taken by the pandemic are causing great economic damage. Food supply and health care may be jeopardized by the excessive duration of restrictive measures.
The movement will continue to be limited for weeks - in some states - months - but detailed and premature planning can protect the affected strata and help the economy recover more easily. One mistake results in another epidemic, other restrictions, and more economic damage.
In Germany, where 100,000 people have been affected by coronavirus and died about 1,600, a group of economists, lawyers and medical experts recommend a gradual revival of the most powerful European economy that allows specific industries and workers to return to work and prevent one. another epidemic.
Dozens of academics write in a report published by the Ifo Institute for Economic Research that "we do not expect an effective vaccine or treatment before 2021. As a result, Germany must fight the disease" as a marathon and not as a sprint. "
"Future measures need to be designed and prepared to ensure well-being and on the other hand can be implemented for the period needed," experts write. "Planning for this transition should start immediately in politics, administration, companies and other organizations.
Germany has ordered the closure of schools, restaurants, parks, stadiums and most shops by April 20, exacerbating the economy that was on the verge of a recession.
How to revive an economy
The German government is distributing a 750m-euro economic aid package that includes business loans, corporate acquisitions and financial support for licensed employees. The financial package is among the largest in the world.
The Ifo report advises the state to create a national task force of experts and public representatives to compile recommendations on easing restrictions on public and professional life as well as on the right time to reopen production plants. Returning to work for employees should be voluntary.
Industries such as telecommunications and the production of automobiles, which add value to the economy, should be a priority, the report says, while the work that can be done by the home should continue. Nurseries and schools should be opened as soon as possible, because young people do not have severe symptoms and parents cannot work if these institutions are closed.
What about night events and clubs?
Companies that produce health care products need to be open as soon as possible, while hotels and restaurants need to be opened "carefully and in a controlled manner." Discos and clubs should remain closed for now and major events and gatherings of people should continue to be banned.
Source: CNN
