German Industry is Urging the Government to Take Action Against the Corona Virus

German industry is urging the German government to take action in view of the spread of the corona virus.

“In addition to health protection, politics must now focus on economic crisis management,” said the managing director of the Federal Association of German Industry, Joachim Lang, on Monday. The extent and duration of the effects of the virus cannot yet be assessed. “The economy is at risk of serious effects,” added Lang. The Federal Government must therefore “as soon as possible” provide economic policy impulses to stimulate growth. Political agreement was still required in the first quarter.

“The effects of the corona virus can be clearly felt for the global economy and export-oriented German industry,” said the BDI expert. The more than 5000 German companies in China are currently severely restricted in procurement, production and sales. “In the coming weeks, several industrial sectors in Germany expect bottlenecks in deliveries from the Far East, including electronics, automotive, pharmaceuticals and paper,” said the BDI general manager.

Even after the spread of the corona virus in northern Italy, the federal government is currently not planning any border closures. “Border closures are not one of our considerations at the moment,” said a ministry spokesman in Berlin on Monday. The Federal Foreign Office also does not issue travel warnings for Italy. A spokeswoman pointed out that the prerequisite for such a warning was the “concrete danger to life”.

However, travelers can observe the updated travel and security information from the Federal Foreign Office, the spokeswoman continued. The measures taken by Italy to deal with the virus are described there.

Italy had recently become the largest source of the new virus in Europe. 165 cases of infection have since been detected there, at least four patients infected with the virus died. The Italian authorities had taken draconian measures to contain the virus over the weekend. Eleven cities in the north were cordoned off, 52,000 people were practically quarantined.

There are currently no such considerations in Germany, the spokesman for the Interior Ministry assured. A spokesman for the health department added that it has so far been possible to isolate and treat individual infected people in this country. Such measures would also be a national matter, it said. So far there are 16 confirmed infections in Germany.

There is currently no evidence of sustained virus circulation in Germany, said the spokesman, citing the Robert Koch Institute. However, the situation assessment could change.

In response, stock prices collapsed and oil prices fell. However, investments such as gold, government bonds or the crisis currency US dollar, which are considered a “safe haven” in times of crisis, were in demand.

According to a spokesman for the Federal Ministry of Economics, the consequences of the epidemic are “manageable from the current perspective”. That is why the ministry currently has no plans for guarantees or similar support measures for companies. The spokesman pointed out that there could also be catch-up effects “later in the year” – the extent of the impact of the epidemic on the economy as a whole cannot yet be quantified. The government has the situation “closely in view”.

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German Industry, Corona Virus - /10

Summary

German industry is urging the German government to take action in view of the spread of the corona virus.

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