Germany plans to let smaller shops reopen next week after the coronavirus shutdown, and to start reopening schools in early May – but Europe’s biggest economy is keeping strict social distancing rules in place.

After much-anticipated talks with the country’s 16 state governors, Angela Merkel set out a plan for the first steps of a cautious restart of public life – following neighbouring Austria and Denmark and other countries in launching a slow loosening of restrictions.

New infections in Germany have slowed in recent weeks, but Ms Merkel cautioned that the country has achieved only “a fragile intermediate success” so far and does not have “much room for manoeuvre”.

She said a ban on gatherings of more than two people in public and an obligation to keep at a 1.5-metre distance from others, which has been in place since 23 March, will remain in place beyond Sunday when it was previously set to expire.

Nonessential shops, which have also have been closed for nearly four weeks, will be allowed to start reopening, with hygiene precautions, if they are up to 800 square metres in area. So will car showrooms, bike shops and bookshops, irrespective of their size.

Ms Merkel said the decisions apply to the period from Monday until 3 May, and officials will review the situation again on 30 April.

She said authorities also will recommend that people wear face masks on public transport and when shopping, but are stopping short of making their use obligatory for now.

Schools have been closed since mid-March. Ms Merkel said preparations will be made for them to reopen step by step from 4 May, with the oldest students returning first.

Hairdressing salons also should prepare to reopen starting 4 May, officials said.

State governors and Germany’s interior minister will hold talks this week with religious communities on what to do about religious gatherings, which have not been allowed in recent weeks, Ms Merkel said.

It remains unclear when bars, cafes and restaurants – which also are closed, apart from for takeouts – will be allowed to reopen.

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“We are moving forward in small steps and must see what effect they have,” Ms Merkel said.

Germany has confirmed more than 130,000 coronavirus infections, according to a tally by Johns Hopkins University.

It has recorded over 3,500 deaths, but that is a lower number than in countries with comparable case figures and Germany’s health system has not been overwhelmed.