© Reuters. Day two of Italy’s nationwide coronavirus lockdown, in MilanROME (Reuters) – Italy will ramp up spending to help the economy cope with the impact of the coronavirus, earmarking 25 billion euros ($28.3 billion) to tackle the growing crisis, Prime Minister Giuseppe Conte said on Wednesday.
Last week the cabinet said it would need just 7.5 billion euros, but since then the emergency has escalated dramatically and the entire nation is under lockdown, freezing much economic activity in a nation that was already flirting with recession.
Conte told reporters that already tough restrictions on movement might be tightened further after the northern region of Lombardy, centered on Italy’s financial capital Milan, asked for all shops to shut and public transport to close.
“We are ready to listen to requests from Lombardy and other regions,” Conte told a news conference, adding that caution would be needed before deciding to introduce fresh measures.
“The main objective is to protect citizens’ health, but we must take into account that there are other interests at stake. We must be aware that there are civil liberties that are being violated, we must always proceed carefully.”
Italy is the worst-affected country in the world after China, with some 631 deaths and 10,149 confirmed cases since the contagion came to light in Lombardy on Feb. 21.
The extra spending means Italy’s 2020 budget deficit looks certain to climb above 3% of national output, the ceiling set by the European Union’s rules.
Economy Minister Roberto Gualtieri, who last week forecast a deficit of 2.5%, declined on Wednesday to give a new target.
He said that Rome might need help from European Union funds to take some of the burden off Italy.
Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
