Europe Freezes Its Economy in Order to Fight the Coronavirus

Like the eye of a hurricane, the epicenter of coronavirus disease Covid-19 has shifted from Asia to Europe, bringing with it a rising toll of infections, deaths and economic damage. After a messy few weeks in which the region’s leaders seemed incapable of hitting on a common response to the crisis — which has hit healthcare, consumer confidence and financial markets all at once — this weekend marked a turning point.

France and Spain announced draconian steps, similar to those seen in virus-stricken neighbor Italy, which has already gone several steps further in imposing a lock-down on citizens. Germany is planning partial border closures, and Austria has banned gatherings of more than five people. The public-health imperative explains the need to strangle the euro-area economy and robbing citizens of basic freedoms, but the very real threat of a knock-on recession means another test looms for governments: The need for fiscal stimulus to cushion the blow.