This takes the ban on large gatherings to the 11th of September, as I quote from the bottom of the last article above.
As the state of emergency should be extended until 2 May and the indication is to postpone situations that bring together masses of people up to 90 working days after that state, the beaches should open in September: “In the case of Funchal, it ends on 11 September [ because of the city holiday] ”, said the Mayor of Funchal.
So that means that the postponed Flower Festival, which has been rearranged for September with the main parade taking place on the 6th September, will be cancelled.
Too many different stories from the mouths of the same people.
I very much doubt beaches will be closed and they will have to backtrack on this. If there are no cases of Covid-19 coming to the island, and in a few more weeks most of those in quarantine will be recovered, then there is no reason for the people on the island to get back to a normalish life, without tourists for the time being.