The moon is seen beside the Reichstag, the building which houses the Bundestag (lower house of parliament), from the Chancellery in Berlin before a news conference on new coronavirus restrictions following consultations with the premiers of Germany's 16 f
Chancellor Angela Merkel will impose the toughest restrictions on Germany since a national lockdown in the spring, closing bars and restaurants in Europe’s largest economy to regain control of the rapid spread of the coronavirus.
The one-month partial shutdown, which will go into effect on Monday, is designed to keep most businesses operating, Merkel said Wednesday after tense talks with the leaders of the country’s 16 states. Officials will gather again in two weeks to assess the impact of the measures.
"We don’t want to fall into a national health emergency,” Merkel said at a press conference in Berlin, adding that hospitals could be overwhelmed within weeks if trends continue.
The plan calls for closing bars, restaurants and leisure facilities. The government is also urging citizens to keep social contacts to a minimum and avoid all non-essential travel.
The measures are a sign of how European leaders are struggling to balance public-health issues with social and economic stability.
Germany’s benchmark DAX Index fell as much as 4.2% and the Stoxx Europe 600 Index sank 3%, with auto and construction shares seeing the steepest declines. Haven assets, such as Treasuries and the yen, rose.
Germany is catching up with many other European countries in tightening restrictions on movement, as the disease spreads rapidly throughout the region. French President Emmanuel Macron will hold a televised address Wednesday evening to announce new initiatives to tackle the pandemic. Ireland already moved to shutter its economy for six weeks.
Merkel, who had vowed to avoid a repeat of the curbs that hammered the economy in the second quarter, had struggled to forge a consensus in recent weeks, and political tensions were high before the meeting, which was moved forward by two days in a sign of increased urgency.
With the public weary of pandemic measures and protests increasing, the government sought to ease the pressure by making up to 10 billion euros ($11.7 billion) in aid for companies affected by the measures, including reimbursing as much as 75% of lost sales.
The latest steps are less severe than the spring lockdown. Many shops will be able to stay open along with schools and company cafeterias. Germany’s professional soccer league will be able to play games, but fans won’t be allowed in stadiums.
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