Bavaria Maps Out Economic Reopening Before Key Merkel Talks

(Bloomberg) --

The German state of Bavaria announced a timeline for reopening all stores, hotels and restaurants this month in what may serve as a blueprint for the rest of the nation.

The announcement of a gradual reopening of the southern region's economy came a day before the country's 16 state leaders hold talks with Chancellor Angela Merkel.

Larger shops and malls in Bavaria, which has some of the strictest lockdown measures, can reopen for business from May 11, with restaurants following on May 25 and hotels from May 30, Premier Markus Soeder said at a news conference Tuesday.

“The coronavirus is under control,” Soeder said, citing the most-recent data that appears to show the spread of the disease is slowing. The number of people infected in Germany rose by 0.3% from the previous day, the figures showed.

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Soeder, who is touted as a potential candidate to succeed Merkel, has repeatedly sought to take center stage during the corona crisis, timing the announcement of measures to precede those being decided in Berlin. Yet several other states have announced their own plans to ease restrictions in retail, leisure and other businesses, raising the prospect of a patchwork of contradicting rules. In an effort to get everyone on the same page by Wednesday, Merkel's chief of staff, Helge Braun, is negotiating with his counterparts from the states.

The chancellor will insist that restrictions be reimposed if the spread of the virus accelerates beyond an agreed rate, Bild newspaper reported. Soeder too said that Bavaria would constantly monitor the development of the pandemic and that hospital capacity would continue to be built out.

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States including Lower Saxony, Saxony-Anhalt and Mecklenburg-Western Pomerania this week have also said they would ease restrictions and allow for the gradual opening of hotels and restaurants. In other states, courts have struck down restrictions and paved the way for a resumption of economic activities.

Pressure has been mounting on Merkel to speed up the country's exit from lockdown and coordinate a clear timetable so businesses can make plans. Europe's largest economy is forecast to shrink by 6.3% in 2020, more than even during the financial crisis a decade ago, according to government projections. The low point of the recession is expected in the second quarter, before a gradual recovery and growth of 5.2% next year.

Restaurants, hotels and retailers have been particularly hard hit.