The European economy was already weakening during the last coupe of months, following the short-lived rebound in may and June after the lock-downs. But, the coronavirus restrictions are coming back, with full and partial lock-downs, which will deter the economy further. The service sector is already in contraction and it will likely fall deeper into the abyss, although manufacturing is keeping up the pace.

UK Minister Sunak Speaking on Covid Restrictions

• Lockdown is the last thing we wanted to do
• The virus is spreading faster than the reasonable worst case scenario
• Unless we acted, deaths would have been worse than in spring
• Lockdown regulations are time-limited
• We will seek to exit to tiered approach at the end of the 4-week period

As confirmed by Italian prime minister, Giuseppe Conte

• This will divide the country into three areas based on degree of risk
• There is a high possibility that 15 of 20 regions will exceed critical level of intensive care within a month, so we must intervene
• To limit urban public transport capacity limit to 50% (from 80% presently)
• Will limit movement between high risk regions
• Will set nighttime curfew nationwide