Germany’s soft lockdown turns into hard lockdown in December  


Armstrong Economics Blog/Germany Re-Posted Dec 29, 2020 by Martin Armstrong

In November, all restaurants and cultural institutions such as museums, opera houses, cinemas, and events had to close. Every day demonstrations take place against these restrictions. Just 10 days before Christmas, on December 16th, Germany added more restrictions with a second strong lockdown where all schools and the retail industry had to shut down again. Food deliveries and take away are permitted. Each of Germany’s 16 provinces manages further restrictions individually. In Berlin you are allowed to only meet with people of one further household, not exceeding a total number of 5 people. Children below 12 years are excluded. You are not allowed to leave your home without necessity.

Even though these restrictions apply until January 10th, German media already states that they will be extended until February. Many Germans are put again on short-work arrangements with an estimated cost of 20 billion euros for 2020 which is covered by the federal ministry of labor and social affairs.

Deutsche Bahn records a 9-billion-euro sales loss due to Covid-19 in 2020 

Germany’s 100% state-owned train company Deutsche Bahn AG is having its worst year since its foundation in 1994. DB AG owns about 600 subsidiary transportation companies. Due to travel restrictions, Deutsche Bahn AG recorded a 9-billion-euro loss this year. Starting in March, train bookings decreased to only 20%. Even during the winter holiday season, where normally all trains are packed, bookings only rose to 35%. Germany plans a financial aid of 5 billion euros, however, private competitors of DB AG feel a disadvantage as DB AG supplies its services to nearly 75 % of the market.

(reporting from Germany; Nadjeschda who took the photo on Christmas Day on the train)

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