Italy is preparing a new spending package worth 15-20 billion euros to help its battered economy through the coronavirus crisis, which will push its budget deficit beyond 11% of national output, a government source told Reuters.
FILE PHOTO: Italian Prime Minister Giuseppe Conte talks to Economy Minister Roberto Gualtieri ahead of a confidence vote at the Parliament in Rome, Italy, September 9, 2019. REUTERS/Remo Casilli/File Photo
“We need to boost funds to supplement the income of workers temporarily laid off and support local authorities whose tax revenues were hit by the lockdown,” said the source, citing some of the uses the new borrowing would be put to.The COVID-19 outbreak first confirmed on Feb. 21 has killed more than 34,600 Italians, putting it among countries hardest hit by the pandemic. The Treasury estimates the economy will contract by at least 8% this year due to lockdown measures.
The government also plans to provide additional resources for a state-backed fund that shields banks from losses on loans to small- and medium-sized companies, Economy Minister Roberto Gualtieri said last week.
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