Italy plans to introduce more than € 3 billion in measures in the coming days to help the coronavirus in Europe’s most affected economy cope. This was stated by the Italian Minister of Economy Roberto Gualtieri. However, further support will mean an increase in the projected budget deficit for this year.
As Gualtieri said on Sunday for the Italian daily La Repubblica, the government
announce measures totaling € 3.6 billion. This represents 0.2%
gross domestic product (GDP) and is another package to the aid package
worth 900 million euros, which the government published on Friday (February 28) for
most affected areas. Tax aid will be part of the new aid package
cuts or additional funding in the field of health care, the minister added.
Italy already registers more than 1,100 infected, at least
29 people died. The minister also said that he had no doubt that
The European Commission agrees on the necessary increase in this year’s target
budget deficit, with euro area finance ministers talking about it
discuss by phone in the middle of the week.
Italy has the highest debt among the eurozone countries after Greece, according to
However, Gualtieri’s public finances are doing well and the budget deficit is behind
2019 should reach 1.6% to 1.7% of GDP. The original goal was
set at 2.2% of GDP. Official figures for 2019 should be
published on Monday, March 2.
For this year, the budget deficit estimate is currently set at
2.2% of GDP. At the same time, the government assumes that the economy will grow
by 0.6%. The Italian government’s estimate of growth will be revised further, according to several
analysts, however, the country will not avoid a recession.