The Source - 2020 Lockdown

READING ROOM
More than 3.9 billion people, or half
of the world’s population, have now
been asked or ordered to stay at home
by their governments to prevent the
spread of the deadly COVID-19 virus.
Data from an AFP database collated
compulsory or recommended
confinements, curfews and quarantines
in more than 90 countries or
territories. Due to the introduction
of a curfew in Thailand (effective
from Friday), the threshold of 50%
of humanity will be reached. Meanwhile,
the number of dead in Spain
from coronavirus has now risen
above 10,000, according to the latest
health authority figures published on
Thursday last week. It’s a new record
for the country, with 950 deaths
in the last 24 hours. The total number
of deaths stands at 10,003, with
a total of 110,238 confirmed cases in
Europe’s worst affected nation after
Italy.
However, the infection rate appeared
to ease. Health authorities say contagion
in Spain has dropped from a
daily average of 20% until March
25 to less than 12% after that date,
more than 10 days after Spaniards
were ordered to stay home. But the
government has acknowledged that
the real number of infections could
be much higher due to limited testing.
The figures also show that more
people are recovering. The total now
stands at 26,743 in Spain - up from
22,647 the previous day. That number
represents more than 20% of the
overall number of cases. There were
reasons for optimism from Italy,
too, late on Thursday afternoon. The
number of new infections continues
to fall, down to 4668, a slight fall on
Wednesday’s figures, and a drop of
1,500 compared with a week ago.
Italy’s daily death toll was 760, a
slight increase against yesterday, but
down from the more than 9,000 fatalities
announced last Friday.
ECONOMIC CRISIS
The hit on the second European country
by Gerrit J. Scheper
evidence of the devastating effect the
pandemic is having on the economy.
Jobless numbers rose by over 300,000
in March, the highest increase on record.
The number of people out of
work has risen far more sharply than
happened during the financial crisis
of 2008, Spanish media say. The
European Union has designed a new
program to raise up to €100 billion
to tackle surging unemployment
brought on by the pandemic. The aim
is to provide financial assistance to
the 27 member states via loans from
the European Union.
In the US new Labor Department
figures showed that more than 6.6
million Americans applied for unemployment
benefits last week - doubling
a record high set just a week
earlier.
The economic fallout of the coronavirus
pandemic has been unprecedented.
For the first time in history,
the European Union suspended its
fiscal rules on public deficits and the
European Central Bank launched a
750 billion euro’s stimulus package.
Since the outbreak of Covid-19 in
Europe, and especially in the countries
that are most affected, such as
Italy and Spain, many companies had
to shut down completely.
The loss of tourism
In Barcelona, one of the most visited
cities in Europe, the impact of this
sanitary crisis is visible. Concern is
growing over the economic consequences
and the measures that
will be taken at national and European
level to protect businesses
and jobs. Tourism represents almost
13% of the economic activities value
within Spain [GDP] and is one of
the sectors which contributes most
to the economy of the country. This
sector has been hit hard by this crisis.
Hotels and restaurants that were
ordered to close down do not know
how customers will come back. They
do not know if international tourism
will continue to be there in the major
tourism cities in Spain, as Barcelona.
What they really want is to re-open
as soon as possible, and real concrete
financial support for their businesses.
A cash fund that allows them to relaunch
their tourism activities on a
day by day basis. Thanks to the creation
of a European fund and more
flexible budgetary rules in Europe,
the Spanish government will mobilize
200 billion euro’s, that’s about
20% of its GDP, to support the country’s
economy. So, if the tourism industry
in Spain do not have efforts
from the banks, from the government,
from suppliers and customers,
within Spain itself, it will not be able
to get out of this situation. The impact
of this pandemic on the Spanish
economy, hospitality in particular, is
significant as up to almost 1.5 million
jobs could be lost.
Uncertainties remain
Even if the European Central Bank
announces that it will create liquidity
thanks to an emergency plan of 750
billion euro’s, uncertainties remain.
Unemployment soars
Spain also reported catastrophic unemployment
figures on Thursday,
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