The Italian government’s decision to extend the lockdown of northern regions to the whole country raises three questions about the economic impact of the coronavirus on European economies.In a nutshell, no. The impact of the lockdown, which bans travel and most large gatherings, is a way for the Italian government to cushion the blow from the outbreak. It has to be compared with the consequences of the government not acting now.
The progression of the disease in these countries seems to be following the pattern it has taken in Italy, as German economist Henrik Enderlein has noted. European leaders are having a conference call today to discuss some coordination of their efforts to fight the crisis, which will unavoidably involve more public spending. But they are still at the build-up stage of preventive measures, which will include further authoritarian measures, interdictions and prohibitions.
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