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Europe Insights - November 2020

Adapting to restriction waves
12. Nov 2020
    Vollständige Publikation herunterladenPDF, 740.08KB

    • Although recent news has been dominated by the positive results from a recent vaccine trial, the current environment is being shaped by a rise in the number of Covid-19 infections that has led to renewed restrictions across Europe
    • Services related to hospitality and culture, entertainment and sports are the main focus. Governments have imposed these restrictions for at least one month starting in November, and intend to ease them ahead of Christmas. The imposed closure of these services represents around 3.5 per cent of eurozone gross value added
    • Restrictions vary from one country to the other but are less stringent than those imposed during the first infection wave. Activities under closures and mobility restrictions represent at least five per cent EU output
    • PMI surveys for October showed a sharp improvement in the manufacturing sector, led by Germany
    • Overall cautious household behavior may result in elevated saving rates (at a record high of nearly 25 per cent in the second quarter) instead of renewed consumption

    Could building renovation help Europe reach its CO2 goals and boost jobs?

    • In Europe, the building sector has a huge role to play: it could cut EU CO2 emissions by 25 per cent
    • The European Commission needs to kick start a doubling of renovation rates over the next ten years in order to meet its climate goals and create jobs at a high ratio per million euros invested