Coronavirus: Europe plans to ease lockdown measures as fatality rate slows

BERLIN • Coronavirus deaths slowed in Spain and Germany, offering an encouraging sign to leaders in Europe as they plan to relax lockdown measures that have crushed the region's economies.

Spain recorded fewer than 400 fatalities for the second day in row, a sign that the situation may be stabilising in the country as it grapples with Europe's worst outbreak. In Germany, deaths dropped to the lowest in five days. The number of patients in intensive care declined in Belgium, which has the world's highest per capita death rate.

With Europe's economies battered by lockdowns imposed to bring the pandemic under control, Chancellor Angela Merkel said yesterday that Germany will pour more money into European Union coffers than previously expected as the bloc tries to manage the fallout of the outbreak.

Some countries in the EU are preparing to ease restrictions. An initial reopening of businesses is planned for May 4 in hard-hit Italy, and France is working on plans to gradually open its economy starting from May 11.

The EU needs an economic stimulus programme because "the economic damage will be great", Dr Merkel said in her weekly podcast. The bloc's common budget will play a key role in financing reconstruction efforts, and "Germany, too, will have to commit itself to much more" than previously planned, she said.

Europe's economic woes are mounting, with Germany expecting output to shrink by 6.3 per cent this year, the worst contraction since at least 1950, Handelsblatt reported, citing draft government projections.

The largest economy in Europe has been crippled by a lockdown that has shuttered factories, halted travel and closed schools. Almost every third company in Germany has requested state wage support.

Dr Merkel's pledge to back a huge stimulus package for the EU was not enough to force through a deal as leaders inched ahead with their reconstruction plans during a videoconference on Thursday.

Her commitment to expanding the EU budget came after European Central Bank president Christine Lagarde told heads of government that the euro-zone economy could shrink by as much as 15 per cent this year as a result of the pandemic, and they risk doing too little, too late, according to three people familiar with the remarks.

In Spain, fatalities increased by 378 to 22,902, according to Health Ministry data published yesterday. The government has partially relaxed one of the world's strictest lockdowns, with the confinement measures currently due to end on May 9.

Children under 14 years old will, from today, be allowed up to one hour of supervised outdoor activity a day between 9am and 9pm, staying within 1km of their home.

Adults can accompany up to three children, who will not be allowed to use play parks and must adhere to social distancing guidelines, remaining at least 2m from other people.

Deaths in Germany rose by 148 to 5,723 in the 24 hours through yesterday morning, a smaller increase than Friday's daily rise of 260, according to data from Johns Hopkins University.

In the United Kingdom, where the death toll is nearing 20,000, Prime Minister Boris Johnson is easing back into work after battling Covid-19, but there is no time set for his full-time return.

The Treasury is making plans that would allow non-essential businesses to reopen while ensuring they are free from the coronavirus, The Times reported, citing a Treasury blueprint.

BLOOMBERG, REUTERS