Derided by many economists for insisting on a balanced budget and criticised for a health care system seen as bloated and overly expensive, Germany has found itself well equipped now to weather the coronavirus pandemic.
Already applauded for early actions such as social-distancing regulations and aggressive testing seen as helping keep the death toll comparatively low.
Europe’s largest economy has had the financial flexibility to launch a massive rescue plan to help businesses and keep workers paid.
As the country moves to relax some restrictions this week, Chancellor Angela Merkel is pointing to the example of South Korea, which relied on its experience fighting a different coronavirus five years ago to combat Covid-19, as the way forward.
Meantime in the US, some protesters have taken to the streets — supported by President Donald Trump's tweets — to demand an end to virus-related shutdowns to help the faltering economy.
It's caused tens of millions to lose their jobs, even if it could lead to an increase in deaths as the health care system struggles.
“This is a crisis which, on the one hand, has probably hit the US where it is most vulnerable, namely health care,” said Carsten Brzeski, ING bank’s chief Eurozone economist. “While at the same time it has hit the German economy where it’s the strongest.”
Ms Brzeski was among those who argued for Germany to spend more to stimulate the economy as growth ground toward stagnation, but concedes now the country is in a fortunate position.
For years, balanced budget proponents argued it was prudent during good economic times to bring Germany’s house in order to be prepared for a crisis.
So in announcing a $1,8 trillion NZD rescue plan for the country’s 83 million people last month, Finance Minister Olaf Scholz was able to assure there was more money available, if needed.
While Italy and Spain were faced at the height of the crisis who to allocate ICU beds to to ensure a better chance of usrvival, Germany has never had a shortage and has even taken in patients from other European countries.
“They had the means, but then they also had the political will, and also the very good analytical insights to use the means,” Ms Brzeski, said, noting Merkel was a scientist before entering politics.
“I can’t imagine any government better than Angela Merkel’s to deal with this.”
Germany is now taking baby steps to ease restrictions, allowing smaller shops to reopen this week while sticking to strict social-distancing guidelines and requiring face masks on public transport and in stores.
The effect will be analysed after two weeks to see whether infections have again started to significantly climb.
“We must not overwhelm our health care system,” Merkel said, warning restrictions could be snapped back. “The best path is one that is careful, and not taken light-heartedly.”
The far-right, Alternative for Germany party, has criticised Merkel’s go-slow approach as “ruining our country,” but the chancellor’s popularity has been steadily rising and Germans overwhelmingly see her government’s crisis management positively.
Besides help for small businesses, Germany's aid package is designed to keep the unemployment rate down and allow workers to return quickly when possible.
While the US is sending out one-time stimulus checks to Americans, Germany's government plan pays at least 60 percent of the salary of employees who are on reduced or no hours.
As restrictions are eased, Merkel has pointed to South Korea as an example of how Germany will have to improve measures to “get ahead” of the pandemic with more testing and tracking of cases to slow the infection rate.
Experts say one reason South Korea has managed to avoid lockdowns or business bans was because of its aggressive testing and contact-tracing program that draws from its experience of fighting a different coronavirus — MERS or Middle East Respiratory Syndrome in 2015.
Following that outbreak, which killed 36 people and sickened around 200, South Korea rewrote its infectious disease law to allow health authorities quick access to a broad range of personal information to fight infectious diseases.
Amid criticism from privacy advocates, authorities have fully exercised such powers during the Covid-19 pandemic, aggressively tracing virus carriers' contacts with tools such as smartphone GPS tracking, credit card records and surveillance video.
People's movements before they were diagnosed are published on websites and relayed via smartphone alerts to inform others whether they have crossed paths with a carrier.
The government is also using smartphone tracking apps to monitor the tens of thousands of people placed under self-quarantine at home and plans to use electronic wristbands on people who defy quarantine orders.
South Korea yesterday reported 11 new cases of the coronavirus, the 21st day in a row that the daily jump in infections came below 100.
The approach has meant South Korea has managed to slow the spread of the virus without imposing massive lockdowns or banning nonessential businesses, so there has never been any debate over “reopening” its economy.
“We’re not going to accept a premise that human life is disposable,” Cuomo said. “And we’re not going to put a dollar figure on human life.”
Germany has registered some 150,000 infections, not far behind the worst-hit European countries of Italy, with more than 180,000 cases, and Spain with about 205,000. But where around 5,000 people have died in Germany, Spain’s toll is nearly 22,000 and Italy’s has passed 25,000.
At the height of the crisis in Spain and Italy the sheer numbers overwhelmed their health care systems, and painful decisions had to be made on who to treat.
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