BusinessToday Previous Editions

T his week in the Netherlands there had been a rush to do last-min- ute Christmas shopping in many cities as people became aware of the im- pending lockdown deadline. It has be- come clear in the past week that the Omi- cron variant is spreading very rapidly in the Netherlands. is is happening faster than previously expected. is flood of infections means the number of COVID-19 patients in hospitals will rise further before the end of the year. It is therefore looking increas- ingly likely that the healthcare system will become overburdened next month. e spread of the Omicron variant must be slowed as soon as possible. e head of the Dutch outbreak man- agement team, Jaap van Dissel, said the new measures would "buy time", allow- ing more people to get booster shots and for the healthcare system to prepare for a possible rise in infections. It stands to reason, that retailers warned that "soon everyone in Netherlands will be going shopping in Belgium and Ger- many, where everything is open as usual". Unlike the Malta government, the Dutch authorities provide financial support in the form of compensation for fixed costs to firms where there is 30% loss in turno- ver in a quarter compared to the previous year and wage support where there is a 20% loss. Boris van der Ham, from the Associa- tion of Free eatre Producers (VVTP), said his sector had already resigned itself to a miserable Christmas period follow- ing a decision on 27 November to force hospitality to shut at 5pm. A major fac- tor causing augmented fatalities is the low vaccination rates in some countries in East Europe. It is interesting to observe how a num- ber of countries in Europe with low vacci- nation rates are facing renewed lockouts and a drop in commerce. Starting with Ukraine, this has only inoculated seven million of its population of 41 million. Other factors contributing to a mutation of the virus is the recent lifting of lock- downs and other travel restrictions, by many European countries. Naturally, acceding to a strong temp- tation to revive tourism over the festive period, some Governments have eased restrictions. is is contributing to the surge in cases and deaths in the continent. Only a few countries (this includes Malta and Singapore) boasts of high vaccination rates which raised the herd immunity such as to break Covid's usual two-month cycle. Locally, we are also witnessing an acceleration of new cases, albeit no Omi- cron cases as yet. On balance, there is a risk of experienc- ing a significant surge in new cases this festive season due to approved private parties. Sadly, on a European scale, we notice that only 61% of the total popula- tion have been fully vaccinated, and only three countries (Malta, Portugal and Ice- land) have vaccinated more than 85% of their total population. ere is considerable variation in vac- cine uptake across countries and within regions, resulting in large proportions of the EU/EEA population remaining sus- ceptible to infection. Another skeleton in the cupboard is the need for effective vaccination against sea- sonal influenza. A cocktail of two potent viruses may cause havoc on individuals and healthcare systems. Facing a high probability of this occurring in eastern EU member countries, particularly the Baltic states, which are placing health systems under increasing pressure, prompting governments to reimpose restrictions. Will Malta next year face lockdowns and curfews that in the past plagued countries such as Australia and now Netherlands? Let us take a look on research which I gathered on eastern European countries. Starting with Romania, it is reporting higher deaths and new cases of daily in- fections. is is overwhelming the coun- try's ailing health care system. Let us stop and think why Romania is so vulnerable to infections. Statistics show that only 37% of adults in Romania, with around 19 million peo- ple, have been fully vaccinated against COVID-19 compared to an EU average of 75%. Next comes Bulgaria with the low- est share of its population being vaccinat- ed. Slovakia is also facing a new wave of infections, which recently prompted the government to re-impose restrictions on its five northern counties. Moving westward to Poland, the gov- ernment's health minister has warned that the country is facing an explosion of coronavirus cases that may need drastic action after recording more than 5,000 daily new infections for the first time since May. It comes as no surprise, that some countries are occasionally facing re- sistance from citizens against vaccination. is has complicated matters and add- ed more pressure on the authorities to impose tougher enforcement towards the wearing of face masks and keeping social distancing. Typically, the Czech government is one of several European countries that is tightening anti-COVID measures as case numbers rise. In Lithuania, they are fac- ing challenges of overcrowding in hospi- tals. is exacerbated the tension as there is less space to accommodate patients with other health problems. People are also being advised to work from home for at least half the week and avoid rush-hour travel. Moving on and we note that China nick- named - the mother of the Covid virus is facing a new wave of the Omicron vari- ant. According to Chinese state media, the Sinovac and Sinopharm vaccines - two of the most commonly used jabs in China - have been proven to be 50% to 79% effective in preventing symptomatic Covid infection in clinical trials. A number of large cities such as Nanjing, East China's Jiangsu Province are seeing such a strong penetration that authorities fear that if not contained it may contin- ue to spread to more regions in the short term. e health authority in Southwest China's Guizhou Province asked resi- dents not to travel outside the province, especially to cities that have reported new COVID-19 cases. In conclusion, the cautious mood taken by a number of countries makes us fear that Christmas this year will never reach the same level of joy and fulfilment unless the nasty Grinch is tamed. But it is not all doom and gloom - a sigh of relief can be heard from local pot us- ers as the law allows private parties (up to 300) to legally puff their sorrows away in a flaxen hue of THC smoke. A Merry Christmas to all. Covid Grinch plans to steal Christmas George Mangion George Mangion is a senior partner of an audit and consultancy firm, and has over 25 years experience in accounting, taxation, financial and consultancy services. His efforts have seen PKF being instrumental in establishing many companies in Malta and ensured PKF become one of the foremost professional financial service providers on the Island 8 OPINION 23.12.2021

• Cover