Germany, which has entered an economic recession due to the new coronavirus pandemic, will loosen its restrictive measures. The country had Wednesday, April 15, 127,584 cases of Covid-19 and 3,254 deaths, according to the Robert Koch Institute, responsible for epidemiological monitoring.

Some businesses can resume their activity, those whose surface does not exceed 800 square meters and all car dealers. Schools can start reopening on May 4, starting with the older students. The daycares will remain closed.

Large gatherings such as sports competitions or concerts will remain prohibited until at least August 31, announced Chancellor Angela Merkel after a meeting with the leaders of the 16 regional states.

A "fragile" stage success

The "stage success" of Germany against the Covid-19 remains indeed "fragile", warned the leader at a press conference. Gatherings of more than two people will remain prohibited until May 3 and rules of distancing of at least 1.5 meters will remain in force, added the Chancellor. To accompany this relaxation of the rules, the government strongly recommends the wearing of masks in stores and public transport.

Closure of restaurants, non-essential shops, social distancing ... These measures, which "work" against the epidemic, according to the Robert Koch Institute, have weighed on the German economy.

Germany has been in recession "since March", the Minister of Economy said on Wednesday, warning that this situation could last "until the middle of the year" and also counting on a worsening of the situation in April .

Already greatly weakened throughout 2019 by international trade tensions, which have undermined the opportunities of an economic model based on exports, the German economy has now been weighed down for several months by the coronavirus crisis.

The automotive industry is suffering

German GDP is expected to collapse by 10% in the second quarter, unheard of in recent history, according to joint projections of the main economic institutes, published last week. According to these same sources, the unemployment rate should climb to 5.9% of the active population, or 2.5 million unemployed people.

The export industry, pillar of the German economy, is particularly affected by the crisis, which is reaching its outlets and significantly slowing international trade. In the industry, the automotive sector is disaster, experiencing its worst fall in almost 30 years due to the coronavirus crisis, which, according to the boss of BMW, even threatens the existence of large groups.

Faced with the crisis, more and more voices have been raised in Germany in recent weeks to ease these restrictions, in order to quickly put the German productive apparatus back on its feet.

Berlin has already adopted a plan worth several hundred billion euros, including public guarantee schemes for loans and direct aid to businesses, especially for SMEs. Representing a volume of 1.1 trillion euros, this plan is "unprecedented for Germany since the Second World War", according to Berlin. Partial unemployment has been facilitated by the authorities and some 725,000 businesses across the country have applied.

With AFP

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