A few cars and trucks drive on the usually very crowded main highway around Frankfurt, Germany. Photos / AP
A few cars and trucks drive on the usually very crowded main highway around Frankfurt, Germany. Photos / AP
Derided by many economists for years for insisting on a balanced budget and criticised for a healthcare system seen as bloated and overly expensive, Germany has found itself well equipped now to weather the coronavirus pandemic.
Already applauded for early actions such as social-distancing regulations and aggressive testing seen ashelping keep the death toll comparatively low, Europe's largest economy has had the financial flexibility to launch a massive rescue plan to help businesses and keep workers paid.
As the country moves this week to relax some restrictions, Chancellor Angela Merkel is pointing to South Korea, which has used its experience fighting a different coronavirus five years ago to track and stay ahead of Covid-19, as the way ahead.
In the United States, some protesters have taken to the streets — supported by President Donald Trump's tweets — to demand an end to virus-related shutdowns to help the faltering economy, which has caused tens of millions to lose their jobs, even if it could lead to an increase in deaths as the healthcare system struggles.
Peter Tschentscher, behind the speaker's desk, first Mayor of Hamburg, at a meeting of the Hamburg Parliament in Germany.
"This is a crisis which, on the one hand, has probably hit the US where it is most vulnerable, namely healthcare," said Carsten Brzeski, ING bank's chief Eurozone economist. "While at the same time it has hit the German economy where it's the strongest."
Brzeski was among those who argued for Germany to spend more to stimulate the economy as growth ground toward stagnation, but concedes now the country is in a fortunate position.
For years, balanced budget proponents argued it was prudent during good economic times to bring Germany's house in order to be prepared for a crisis. So in announcing a 1 trillion euro rescue plan for the country's 83 million people last month, Finance Minister Olaf Scholz was able to assure there was more money available, if needed.
And while Italy and Spain were faced at the height of the crisis with having to decide whether to allocate precious ICU beds to elderly patients with the most urgent need or to younger patients with the greatest chance of survival, Germany has never had a shortage and has even taken in patients from other European countries.
"Signs of blood thickening and clotting were being detected in different organs by doctors from different specialties. This would turn out to be one of the alarming ways the virus ravages the body" https://t.co/ZRuM7Q7bqy
"They had the means, but then they also had the political will, and also the very good analytical insights to use the means," Brzeski, said, noting Merkel was a scientist before entering politics.
"I can't imagine any government better than Angela Merkel's to deal with this."
Germany is now taking baby steps to ease restrictions, allowing smaller shops to reopen this week while sticking to strict social-distancing guidelines and requiring face masks on public transport and in stores. The effect will be analysed after two weeks to see whether infections have again started to significantly climb.
"We must not overwhelm our healthcare system," Merkel said, warning restrictions could be snapped back. "The best path is one that is careful, and not taken light-heartedly."
The far-right Alternative for Germany party has criticised Merkel's go-slow approach as "ruining our country," but the Chancellor's popularity has been steadily rising and Germans overwhelmingly see her Government's crisis management positively.
Opening her Berlin toy store today for the first time in over a month, Galina Hooge said she had already received government aid and the process was "surprisingly quick and uncomplicated."
She said it only covered the store's rent and bills, but she felt relatively secure thanks to Germany's universal health insurance and strong social safety net.
"The main thing is that everyone stays healthy and the situation doesn't become like America," she said, referring to the large number of cases and deaths in the US.
Besides help for small businesses, Germany's aid package is designed to keep the unemployment rate down and allow workers to return quickly when possible. While Washington is sending out one-time stimulus money to Americans, the German Government plan pays at least 60 per cent of the salary of employees who are on reduced or no hours.
Antibody test cartridges of the ichroma Covid-19 Ab testing kit used in diagnosing the coronavirus move along on a production line of the Boditech Med Inc. in Chuncheon, South Korea.
As restrictions are eased, Merkel has pointed to South Korea as an example of how Germany will have to improve measures to "get ahead" of the pandemic with more testing and tracking of cases to slow the infection rate.
Experts say one reason South Korea has managed to avoid lockdowns or business bans was because of its aggressive testing and contact-tracing programme that draws from its experience of fighting a different coronavirus — MERS or Middle East Respiratory Syndrome - in 2015.
Following that outbreak, which killed 36 people and sickened around 200, South Korea rewrote its infectious disease law to allow health authorities quick access to a broad range of personal information to fight infectious diseases.
Amid criticism from privacy advocates, authorities have fully exercised such powers during the Covid-19 pandemic, aggressively tracing virus carriers' contacts with tools such as smartphone GPS tracking, credit card records and surveillance video.
People's movements before they were diagnosed are published on websites and relayed via smartphone alerts to inform others whether they have crossed paths with a carrier.
2/n The Spanish government has put forward a proposal that shows a way out of the interminable old standoff. The leaders should all unite behind it. https://t.co/sBvBTWiSvC
The Government is also using smartphone tracking apps to monitor the tens of thousands of people placed under self-quarantine at home and plans to use electronic wristbands on people who defy quarantine orders.
South Korea yesterday reported 11 new cases of the coronavirus, the 21st day in a row that the daily jump in infections came below 100.
The approach has meant South Korea has managed to slow the spread of the virus without imposing massive lockdowns or banning nonessential businesses, so there has never been any debate over "reopening" its economy.
