Just over a month ago, as North America was beginning its lockdown, the Europeans were the ones showing us how to stay sane in quarantine through balcony orchestras and viral internet videos. Now we're looking to them for how best to reopen the economy and minimize the number of fits and starts.
This morning Spain recorded its lowest daily death rate from the coronavirus. It is beginning to prepare for a phased relaxation of its lockdown rules. Things will not return to normal overnight. [Financial Times]
Spain allowed construction activity and manufacturing to resume this past week. As a reminder, Spain's strict lockdown started on March 14. [New York Times]
Bookstores are open in Venice, but that's about it. Customers have to enter one at a time, or schedule an appointment. Hotels, restaurants, and cafes remain shuttered. It is believed that at least 1/6th of all Italian restaurants and bars will not survive. Reopening is not happening uniformly across Italy's 20 regions. [Wall Street Journal]
Last week, Denmark became the first country in the Western world to reopen elementary schools. The desks are far apart and teaching outside is being maximized, but some/many are concerned that this is too soon. Are we prioritizing the economy (i.e. free up the parents) over the health of our children? [New York Times]
The Czech Republic currently has one of the lowest number of cases on the continent. But hardware stores and bike shops are some of the only nonessential businesses that are allowed to be open. The Easter weekend saw an over 60% increase in year-over-year sales. Biking is something to do right now. [Wall Street Journal]
On Monday, the lockdown will be further relaxed by the Czech government. Weddings of up to 10 people will start to be allowed. Gyms are expected to open on May 11, but their change rooms will remain closed. (I'm surprised by this one.) Malls, hotels, and indoor restaurants aren't expected to reopen until June 8 at the earliest. Should the number of new daily cases exceed 400 going forward, the government has said it will reimpose a lockdown. [Wall Street Journal]
The UK is not yet considering a relaxation of its lockdown. As of Sunday, the situation remains "deeply worrying." The UK currently has the 5th highest national death toll. [Globe and Mail]
On April 13, Emmanuel Macron announced that France would begin a phased reopening of its economy -- schools and some businesses -- starting on May 11. This is a unique approach. He gave a firm date, well into the future. What if this doesn't make sense when the time comes? Clearly the government felt that the psychological benefits of a firm date outweighed the potential risks. Minimize uncertainty during an uncertain time. [Le Monde]
Lots of discussion around the porosity of borders. Logically, there's a view that unless there's a common strategy, it's better to keep borders closed. But what are the economic implications of doing that? [New York Times]
Photo by Grant Lemons on Unsplash
The E39 highway in Norway runs along the west coast of the country and connects Kristiansand in the south to Trondheim in the north. There's also a ferry connection to Denmark that forms part of the route. The entire highway (excluding the ferry south to Denmark) is about 1,100 km. But it takes about 21 hours to drive it because Norway's dramatic fjords (see above photo) mean that there are seven ferry crossings along E39. The Norwegian government wants to transform the route into a ferry-free highway, which would dramatically reduce travel times. But this presents a number of extremely difficult engineering challenges -- some of which haven't been solved yet. You can learn about a number of them in the below video from The B1M. If you can't see it below, click here. It's a fascinating video.
https://www.youtube.com/watch?v=HCT-FurFVLQ
Photo by Christiann Koepke on Unsplash
Last week the Government of Canada filed a 2,100-page submission with the United Nation's Commission on the Limits of the Continental Shelf. Under UN Convention on the Law of the Sea (UNCOLS), states with coastal territory have the exclusive rights to about 370 kilometers beyond their shores in order to conduct economic activity. This includes the exclusive rights to any resources. However, states may also make claims to further extensions underneath the water if they can substantiate them through scientific research. Last week's submission attempts to do exactly that for an additional 1.2 million square kilometers of sea bed.
Here is a map from High North News:
The challenge with all of this is that Norway, Denmark, and Russia all have their own continental shelf claims, and there's geographic overlap. (The US has not yet ratified their UNCOLS agreement.) So it is unlikely for this to be resolved anytime soon, though all states seem willing to work with the UN. This is a relatively new debate because the North Pole and Arctic Ocean were previously considered neutral territory. But climate change is opening up new economic opportunities (i.e. there's a lot less ice). That's worrisome in its own right.
Click here for the full press release from the Government of Canada.
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