Europe widens lockdown, moves to limit economic damage amid virus

Bloomberg

Europeans were faced with increasingly draconian restrictions on public life on Sunday, as governments from Spain to Scandinavia and the Baltic tried to check the spread of the coronavirus and limit the damage to continent’s fragile economies.
With Europe now the epicenter of outbreak, Austria banned gatherings of more than five people, urged citizens to self-isolate and said it will close restaurants from Tuesday. France announced reductions on domestic transport links by air, rail and bus, a day after closing restaurants, cafes and non-essential stores.
That’s after the two worst-affected European nations — Italy and Spain — went into lockdown and many other governments have either already followed suit or are poised to.
“The next weeks will be challenging, difficult and painful,” Austrian Chancellor Sebastian Kurz told an emergency session of parliament on Sunday. “We’re hoping that we, our society and our economy will be resurrected after Easter, and our life can go on as we love and cherish it.”
While one focus is checking the spread of the disease and limiting the strain placed on medical facilities, another is
addressing the impact on economies.
The European Central Bank unveiled a series of monetary measures that failed to pacify investors concerned that the euro-area is heading for recession.
Markets recovered on Friday as Germany pledged to spend whatever it takes to protect its economy and the European Commission said it’s ready to green light widespread fiscal stimulus.
Still, HSBC Holdings Plc economists are among those declaring that a euro-area recession looks unavoidable. Italy and France were already contracting before the health emergency, while Germany had stalled.
For the broader European Union, the European Commission last week said there could be a 1% contraction this year, which would be more severe than the downturn experienced during the sovereign debt crisis a decade ago.