Spread of Corona Virus: fear of economic consequences

the Hannover Messe is moved. The Corona-crisis leads to more and more damage. The Federal government wants to help ailing companies. Container from China: Bec

Spread of Corona Virus: fear of economic consequences

the Hannover Messe is moved. The Corona-crisis leads to more and more damage. The Federal government wants to help ailing companies.

Container from China: Because there are fewer deliveries arrive, could the production still photo: China Daily/reuters

BERLIN taz | Now it is also true that the largest industry show in the world: According to the book fair in Leipzig and several other exhibitions have been cancelled on Wednesday also planned for April, "Hannover Messe" because of the Corona-crisis. More and more large events to be moved, the damage is in the billions and they are not insured. According to the professional Association for fair and exhibition construction (Famab) the cost of Cancellations so far, more than 4.2 billion euros.

What are the consequences of the crisis for the German economy as a whole, is not yet foreseeable. In the manufacturing industry, many companies are dependent on supplies from China. In February, not at the production in Germany, the Virus is still noticeable, according to the German Association materials management, purchasing and logistics. "Still, there are no acute shortages," says spokesman Frank Rösch. In the course of the month, is expected to change, with the expected Gertrud Traud, chief economist of Helaba Landesbank Hessen-Thüringen. Perhaps the consequences will be but lightly. "It is possible to get the Coronavirus will soon be under control, the setbacks only in the short term," she says.

The car industry and many other sectors have formed task forces, which are intended to mitigate the consequences of supply shortages. Farms are not usually insured against production losses due to the Corona-crisis. "We assume that it is the absolute exception to this is that companies are insured against a pandemic," says a spokesman for the General Association of the German insurance industry (GDV) of the taz. The same is true for trade show organizers.

policies against business interruption for industrial plants in General, payments made after damage such as fire or Flood. Although can insure the company against the consequences of a pandemic – what businesses use, according to the GDV, but very rarely.

In the Federal government is the willingness of large, to support companies in difficulty. Federal Finance Minister Olaf Scholz (SPD) confirmed on Wednesday before the Finance Committee of the Bundestag, the readiness, in the event of a crisis with a stimulus programme. Economy Minister Peter Altmaier (CDU) has announced support for companies, the pressure due to the corona of a crisis in trouble. "We do everything so that this Virus hits the economy in Germany", said the CDU-man. This includes ensuring the Liquidity of the company. How exactly should look, is still unknown. It is clear, however, that the Federal government is shut due to the budget surplus in the billions, which has the necessary resources to do so.

That is, in countries of the Global South differently. The world Bank is therefore developing countries $ 12 billion (10,77 billion euros) due to the corona crisis. The money is intended for countries which have approached the organization for help.

The world Bank and the International monetary Fund have canceled due to the corona crisis their spring meeting in April, where else, thousands of representatives from governments, industry and non-governmental organisations. The conference is intended to be replaced by virtual meetings in the Internet. Already on Tuesday, the US Central Bank, the Fed was pressed to a surprise key interest rate by a half point, to 1.0 to 1.25 percent. Also, the Australian Central Bank lowered the key interest rate.

Date Of Update: 04 March 2020, 18:00

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