The corona pandemic has serious economic consequences worldwide. Many corporations and companies are hit hard. Renault plans massive job cuts.
- The global economy is groaning under the consequences of the corona pandemic .
- Both the UN and the EU Commission see dramatic consequences, as senior officials explain.
- The French carmaker Renault has now announced a massive job cut (see update from May 29, 1:37 p.m.).
- Here you will find the basic facts about the corona virus * and the corona news from Germany. We also offer you the current number of cases in Germany on a map. The following recommendations for corona protection measures are currently available.
Update May 29, 1:39 p.m .: As part of its savings program, the automaker Renault plans to cut around 15,000 jobs worldwide and close a smaller plant for mechanical parts in the Paris area by 2022 . Renault President Jean-Dominique Senard, however, stressed at an online press conference on Friday that no further plant closures are planned.
However, Senard made it clear that there must be changes in domestic plants. In this context, he named the factory in Dieppe in northern France, where the Alpine sports car was previously built. "This is not a plan for factory closures, this is a savings plan, " clarified Senard.
Update May 27, 9.30 p.m .: The ailing aircraft manufacturer Boeing is serious about its large job cuts in the corona crisis. Around 6,770 employees in the US receive their dismissal letters this week, as the Airbus rival has now announced. The layoffs therefore come in addition to around 5520 employees who have accepted severance offers and will leave the company in the next few weeks. Boeing chief Dave Calhoun said in a memo to employees that there would be thousands more departures in the coming months .
Boeing: Corona crisis dramatically exacerbates economic situation
The wave of layoffs at the rival of the European Airbus group comes as no surprise: Boeing had already announced at the end of April that it would cut its workforce by around ten percent from around 160,000. This plan has now only been substantiated. The group has been deeply in crisis for a long time because of the problem flyer 737 Max , which has been banned worldwide for more than a year after two devastating crashes. The corona pandemic, which has almost brought air traffic to a standstill, has put the company under even greater pressure.
Update May 26, 10:47 p.m .: Measures against the Corona pandemic, which were loosened worldwide, also pushed the courses on Wall Street strongly on Tuesday. The Dow Jones Industrial surpassed the 25,000 point mark for the first time since March 10, but could not hold its own at the closing bell. It closed 2.17 percent higher at 24,995.11 points. The Dow has now caught up with just under two thirds of the Corona crash .
However, US stocks also had some catching up to do: due to a public holiday, the stock markets in the United States were closed on Monday, when things were already up in Asia and Europe.
Goblet purchase prohibited because of Corona: Vatican confirms financial worries - soon no more money from the Pope
Update of May 25, 7:10 p.m .: Not only the profane economy , even the Vatican is suffering financially from the Corona crisis : Almost two weeks ago, the economic officer of the Holy See confirmed a huge budget imbalance. In an interview , Father Juan Antonio Guerrero Alves told the website Vatican News that the Corona crisis would reduce revenues by 25 to 45 percent .
The reasons are apparently also loss of revenue through the closed museums of the Vatican . To make matters worse: According to Guerrero, the Holy See was already making around 50 million euros lousy between 2016 and 2020 . The problem is likely to worsen in the corona pandemic.
The picture (article behind the payment barrier) now wants to have learned about clear savings measures. Citing Italian newspapers, the paper writes that conferences, congresses and business trips must be canceled, and new purchases of office furniture, goblets and robes are prohibited . The cathedral capitulars of the Peterskirche had already been informed of a salary cut. There is even concern that "the Pope can no longer pay the salaries of 3,000 Vatican employees on time".
According to the report, there is also criticism from the Catholic Church in Germany: the bishops are surprised that the Vatican has "not created a business plan" - despite the promise of greater transparency in the Vatican economy under Pope Francis, which was already promised in 2014 .
Corona crisis: innkeepers hope for easing - but figures from abroad suggest bad things
Update from May 24, 5:10 p.m .: Gastronomy is one of the big losers in the Corona crisis - not only in Germany, but all over the world. There are high hopes for the easing that is now starting in many countries. But current figures from Switzerland are likely to be sobering to host colleagues in other countries.
Bad news from Switzerland: Despite the corona loosening, many bars are empty - here the "Le Lyrique Cafe Brasserie" in Geneva.
© AFP / FABRICE COFFRINI
The dining establishments in Switzerland generate according to a survey since the restart after the corona break only about 40 percent of sales compared to last year. As the industry association Gastrosuisse announced on Sunday, 40 percent of the more than 3,000 companies surveyed do not know whether they can or will remain open in June.
According to the online survey, nine out of ten companies assume that they are currently making a loss. "Without further easing, many restaurants will have to close again in June because the opening is very unprofitable," said Gastrosuisse President Casimir Platzer according to the message. The Swiss restaurateurs were allowed to reopen their establishments after the corona-related break on May 11, if seats are available.
Economy in the Corona crisis: One of the largest VW plants remains closed
Update from May 23, 5.43 p.m .: The German car brands Volkswagen and Audi may not start production again in Mexico as planned after the corona-related stop. The governor of the state of Puebla Miguel Barbosa issued a decree to prevent the increase in corona infections *. It says that there are no conditions in Puebla for resuming activities in the automotive industry. The Mexican government had included this division in a list of economically essential activities . Volkswagen Mexico announced on March 20 that it would temporarily cease production until April 12 due to the global pandemic. Later it was said that it would start again in May. Then the two VW plants should go back into operation on June 1st.
The VW plant in Puebla (Mexico) is one of the world's largest production sites.
© dpa / Denis Düttmann
The resumption of Volkswagen and Audi activities in Puebla would mean the return of more than 30,000 employees , according to a report by the La Razón newspaper . In Mexico, 62,572 people have now been tested positive for the novel corona virus, 6989 of them died. The VW plant in Puebla, around 120 kilometers southeast of Mexico City, is one of the largest in the group worldwide. Last year, more than 440,000 Tiguan, Jetta and Golf vehicles were manufactured there. The factory in Guanajuato, around 350 kilometers northwest of Mexico City, produced over 330,000 engines. The group, which is confronted with racism allegations in its home country, employs around 13,000 people in Mexico.
And it’s not just car production in Mexico that is suffering, the Brazilian rainforest is also more at risk than ever: apart from the pandemic, one obviously wants to undermine forest protection laws. Brazilian head of state Jair Bolsonaro is also faced with outrageous allegations.
Coronavirus: US car rental company Hertz files for bankruptcy
Update of May 23, 8:46 a.m .: The car rental company Hertz has filed for bankruptcy in the US corona crisis . The decrease in travel has led to a "sudden and dramatic" drop in sales and bookings, the company, based in Estero, Florida, announced on Friday evening (local time). Business would continue during the restructuring needed because of the crisis. The company has more than $ 1 billion in cash to keep operations running. International operations of the car rental company in Europe, Australia or New Zealand are not affected by the bankruptcy application.
The announcement said Hertz had already taken action when the crisis emerged in March. At the time, the decision was taken to leave or lay off 20,000 employees worldwide - around half of all employees. The number of vehicles and locations will be reduced. Nevertheless, the intention is to continue to offer customers the same quality and to pay suppliers and employees. Loyalty programs should also continue.
Update from May 22, 4:50 pm: The corona virus could change the economy all over the world. Experts are now even expecting a “revolution” for working life. Possibly with visible changes in the cities.
Corona: Renault before the end? France sets conditions - Lauda closes largest base
Update from May 22, 11:20 am: Not only in Germany, but also in other European countries, car manufacturers are suffering severely from the consequences of the Corona crisis. " Renault is struggling to survive," France's economy minister Bruno Le Maire told Le Figaro on Friday. The group has applied for a state-guaranteed loan of five billion euros .
According to Le Maire, this has not yet been approved. The French state is tying conditions to the aid : "Renault should make commitments to electric vehicles, respect for their suppliers and localization of their most technologically advanced activities in France". For example, the large Flins factory near Paris should not be closed. "This is the position of the government and the state as shareholders," the minister also said on the Europe 1 channel .
The Ryanair subsidiary Lauda includes meanwhile, after a dispute with the union Vida their base at Vienna International Airport - but the corona crisis is obviously a Mitgrund. As the company announced on Friday, 300 jobs will be affected by the move. The airline had last given the union an ultimatum. However, the union refused to sign a new collective agreement due to the Corona crisis, with significant wage cuts for employees. The base will be closed on May 29th, according to the announcement.
The Vienna base is by far the largest base for the Ryanair subsidiary, which currently has a fleet of 26 aircraft. The machines are on the ground because of the corona pandemic .
Corona crisis: EU economy hit "as if by asteroid" - UN fears bad novelty
Ursula from the Leyens EU Commission sees the European economy badly affected by the corona pandemic.
© AFP / ARIS OIKONOMOU
First report: New York / Brussels - The global economy is facing an unexpected break in the Corona crisis : According to the UN, the "degree of human development" measured for three decades could drop for the first time. Meanwhile, the EU is still looking for the right economic course. There is unusual praise for German politics - but European companies are still in the focus of China, as a recent example shows.
Corona virus hits global economy: UN fears decline in “degree of human development”
The United Nations' announcement on Wednesday sounded drastic in any case. According to her, the level of human development could drop for the first time this year - due to the corona crisis. The UN development agency UNDP blamed Wednesday for a deep economic recession and the closure of educational institutions.
According to UNDP estimates, 60 percent of elementary school students worldwide are currently not taking any classes - the highest number since the 1980s. The situation in developing countries is significantly worse than in industrialized countries. The agency spoke of an "unprecedented crisis".
# COVID19 is unleashing an unprecedented development crisis. #HumanDevelopment is on course to decline for the first time in 30 years. @ HDRUNDP's new #HDPerspectives report spotlights the # Data4HumanDev we need to #BuildBackBetter. Read it now: https://t.co/F8GuH6COrd pic.twitter.com/EZ11gyuzNZ
- UN Development (@UNDP) May 20, 2020"The world has experienced many crises in the past 30 years, including the global financial crisis 2007 to 2009. Each has hit human development hard, but overall development gains have been recorded worldwide compared to the previous year," said UNDP chief Achim Steiner . However, because of the health, education and income setbacks in the Corona crisis, there could be a decline for the first time.
Corona: EU recommends investment for business - Council also applies to Germany
The EU Commission , meanwhile, recommends that the member states invest heavily. In her economic policy recommendations published on Wednesday, she advises: bring investments forward and only pay attention to sound public finances in the medium term. This recommendation also applies to Germany, despite the sharp drop in tax revenues.
The Commission regularly publishes targeted recommendations to all EU countries to coordinate economic and financial policies. This time they are all about the Corona crisis. They are also said to play a role in the billion-dollar economic recovery program the Commission plans to present next week. The EU is arguing about an aid program presented by Chancellor Angela Merkel and France's President Emmanuel Macron. In recent weeks, so-called corona bonds * have been the subject of heated debate.
Corona virus: "Crater-shaped hole in the economy" - EU Commission warns and praises Germany
"The corona virus hit us like an asteroid and left a crater-shaped hole in the European economy," said Vice President for Economics Valdis Dombrovskis . Individual states and industries are affected differently. However, the economy is so intertwined that the recovery in individual countries has a direct impact on others. A targeted and coordinated response is needed.
EU Commission Vice President Valdis Dombrovskis chose drastic words on Wednesday for the economic situation in Europe.
© AFP / JOHN THYS
Dombrovskis emphasized that the Commission is keeping an eye on the deficits in the state budgets , but does not want to initiate any punitive measures for the time being. Monetary Affairs Commissioner Paolo Gentiloni said the message was clear: "Take all necessary measures to deal effectively with the pandemic, to preserve the economy and to support the subsequent recovery."
Germany is certified in the country recommendations as having a strong response to the crisis and good health care. However, the Commission sees a need to further strengthen the health system . In general, the call is on Berlin to prefer public investment and support private investment, especially in green and digital projects, clean energy, sustainable transport, housing, education, research and better online services by the authorities.
Coronavirus: China targets European company - now stake in Norwegian
This news from Wednesday also shows that the European economy is still in turmoil: A leasing company controlled by the Chinese state becomes a major shareholder of the ailing low-cost airline Norwegian Air Shuttle . Aviation, including German Lufthansa, has been hit hard by the crisis.
BOC Aviation will in future hold a 12.67 percent stake in the airline, as announced on Wednesday. The largest shareholder is the Irish leasing company AerCap Holdings with 15.9 percent, which also acquired a further 7.2 percent through convertible bonds. Norwegian was one of the first low-cost airlines to offer long-haul flights.
Another well-known victim of the economic consequences of corona was recently the US shoe chain "Runners Point" - the consequences can also be felt in Germany. There is also debate in Germany about how companies deal with dividends while receiving government aid.
dpa / AFP / fn
* Merkur.de is part of the nationwide Ippen-Digital editors network.
