Stocks in Europe are slumping after the government in Austria announced that it is re-imposing COVID-19 lockdown measures and making vaccines mandatory for all citizens.
Austria will enter a fourth national lockdown on Monday (November 22) as COVID-19 cases continue to surge, becoming the first country in Western Europe to impose stringent measures this fall.
The country’s unvaccinated are already barred from leaving their homes for non-essential purposes.
Austrian Chancellor Alexander Schallenberg announced at a press conference that those lockdown measures would be extended to the entire country from Monday. The lockdown would last for a maximum of 20 days but would initially be put in place for 10 days.
The Chancellor also announced that COVID-19 vaccinations would become mandatory in Austria beginning on February 1, 2022.
On November 18, Austria recorded 15,145 new cases of COVID-19, setting a record high for daily positive tests. Hospitalizations, deaths and the number of patients in intensive care are also rising fast in Austria.
Around 65% of Austria’s population has been fully vaccinated against the virus, which Schallenberg has described as "shamefully low." The country has the second-lowest vaccination rate in Western Europe after Liechtenstein.
Austrian police officers have been conducting random checks this week on people over the age of 12 to confirm individuals’ vaccine status.
While Schallenberg had previously rejected the notion of placing all Austrians under lockdown, some members of the country’s coalition government had been calling for tougher restrictions for the vaccinated as hospitals come under increasing pressure.
Germany and the Netherlands’ new daily case numbers smashed records on November 18 as well, while France reported COVID-19 numbers not seen since August of this year.
The Euro currency slumped to a 16-month low on news of the actions being taken in Austria. The Euro was trading lower against the U.S. dollar in London trading at around $1.1290.
European stocks edged lower on the news as well. The DAX in Germany traded 0.3% lower, the CAC 40 in France fell 0.5% and Britain’s FTSE 100 traded 0.3% lower. The worst-hit markets are oil-sensitive Russia, which fell 1.8%, and tourism dependent Spain, which fell 1.7%.
