Snapshots

The Next Wave of COVID-19 Lockdowns Emerges in Europe

Jan 5, 2021 | 19:34 GMT

The United Kingdom’s decision to tighten its COVID-19 lockdown measures and introduce a new relief package for businesses is a preview of similar decisions that governments in continental Europe will introduce in the coming days. The lockdown measures will result in low, or even negative, economic growth in Europe in the first quarter of 2021, which will worsen governments’ fiscal deficit and sovereign debt levels. On Jan. 4, U.K. Prime Minister Boris Johnson and Scotland’s First Minister Nicola Sturgeon announced stricter social distancing measures for England and Scotland, respectively, to cope with the rising number of COVID-19 infections. Then, on Jan. 5, the U.K. government announced a 4.6 billion pound ($6.2 billion) aid package for companies hardest hit by the tighter lockdown measures across the country. ...

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