ABSTRACT
This chapter analyzes the policy response of the German government to the COVID-19 crises from its onset to summer 2021. It describes the development of the pandemic in Germany and evaluates the measures to contain the virus – non-pharmaceutical interventions such as face masks and lockdowns and the vaccination efforts. It then assesses the main components of the economic assistance packages by the German government and by the European Union and the monetary policy response by the ECB. It is argued that while the German government’s reaction has been rational and the measures have been appropriate in principle, the policy approach has largely been reactive and has lacked foresight, determination and the courage to make unpopular decisions at the time. While Germany has weathered the pandemic relatively well in comparison, it could have done significantly better. The European approach of shifting the burden to the more prosperous countries may ultimately risk undermining stability and solidity of the union.
