A maze of regulations

Tiffany Dinges,

German economy sounds the alarm over travel restrictions

Travel warnings and quarantine regulations during the coronavirus pandemic are making life difficult for the economy. This also applies to trade fairs.

© WEKA Trade Media

Fitters are unable to travel to customers abroad, trade fairs are canceled: Travel restrictions and the confusion of regulations within the European Union are not only a burden on the tourism industry. Leading German business associations have called on the German government to change course on the coronavirus-related restrictions on travel abroad and urged better coordination between EU member states.

The extended and expanded restrictions and their lack of coordination between EU member states would have a variety of negative economic effects that go far beyond tourism, according to a joint paper by the associations. Specifically, it comes from the Association of German Chambers of Industry and Commerce, the Confederation of German Employers' Associations, the Federation of German Industries, the German Hotel and Restaurant Association Dehoga, the German Travel Association, the German Retail Association HDE and the German Confederation of Skilled Crafts ZDH.

The paper is available to the German Press Agency. "Too frequent and short-term changes to the rules on testing strategies, quarantine requirements and travel warnings create uncertainty and increase economic risks."

Global trade and the exchange of goods as well as investment activity have been severely affected, warn the associations from industry, trade, crafts, the hospitality and travel sectors. For example, technical specialists could not travel to install or repair machines - with consequences for the supply chain. International trade fairs were also canceled. This resulted in a lack of new orders.

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Travel warning for more than 160 countries outside the European Union extended until September 14.

© WEKA Trade Media

The German government recently extended the travel warning for tourists due to the coronavirus pandemic for more than 160 countries outside the European Union until September 14. On Wednesday, the cabinet could discuss how to proceed after that.

The statement from the associations states that the business community is aware that travel restrictions are a political instrument to contain the pandemic. "However, travel restrictions carry the risk of having a major impact on economic activities such as trade and investment."

The associations are calling for an economic impact assessment to be included in future considerations when classifying countries and deciding on travel warnings by the Federal Foreign Office. In future, the Ministry of Economic Affairs should be involved throughout the preparation of travel restrictions. The very different situations in different countries must be taken into account when travel restrictions are imposed worldwide.

It also states that negative consequences are hitting many companies in a very fragile economic phase. "In contrast to the beginning of the pandemic, liquidity and capital reserves have now been depleted in many cases." Many companies are at risk of insolvency.

It is important to find solutions that promote health protection and economic activity at the same time. "Many companies are pinning their hopes on rapid tests that could at least reduce travel restrictions and quarantine periods." In order to minimize the risk for holidaymakers and business travelers as well as for the general public, sufficient testing capacities should be made available for travelers returning from risk areas.

At the same time, the confusion surrounding corona-related travel restrictions within the European Union is causing companies problems. The EU Commission recently presented proposals to combat this. The Brussels authority's concept envisages agreeing on common criteria and threshold values for the introduction of travel restrictions as quickly as possible. It also proposes the creation of an EU risk area map and uniform rules for travel to risk areas. So far, for example, there have been very different testing and quarantine obligations for returning travelers.

Whether - and if so - when the proposals are implemented is now up to the member states. So far, each country has decided for itself which other EU countries or regions it classifies as a risk area according to its own criteria. For example, the German government warns against traveling to Spain or certain areas of France. The Finns recently reintroduced travel restrictions for Germany, Denmark and several other European countries.

The EU is the most important sales region for goods "Made in Germany". France, for example, was the second most important buyer country for German exports last year, ahead of China.

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