Italy’s deputy finance minister, Antonio Misiani, announced that the government will ask the EU to approve €3.6 billion in extra borrowing to tackle the coronavirus outbreak.
According to figures published Sunday, the country is the worst-hit in Europe, with more than 1,800 infections and more than 50 deaths.
The extra €3.6 billion would increase the country’s deficit for this year by 0.2% to 2.4%, which is still lower than the EU’s 3% deficit limit. However, two government officials said it is too early to know if the extra money will be enough to counter the negative effects on the economy caused by the outbreak.
“In the best scenario for Italy, we expect zero growth (in 2020) with a negative first quarter followed by a slow recovery,” OECD chief economist Laurence Boone said.
Many factories in the north of the country are also closed and several are reporting cancellations of international orders due to coronavirus fears. The country’s main banks have suspended monthly payments on mortgages for borrowers in areas most affected by the outbreak. The tourism industry suffered the most with the lockdown that paralyzed the country.
Italy to ask for EU budget help to tackle coronavirus outbreak
EPA-EFE/Igor Petyx
Visitors and health workers wear protective face masks outside the Cervello hospital in Palermo, southern Italy, 25 February 2020. The first coronavirus case in southern Italy has been registered, with a tourist from the northern city of Bergamo testing positive in Palermo. The woman was tested after being admitted to the Sicilian city's Cervello hospital with flu symptoms. So far seven people with the coronavirus have died in Italy - all of them over 60 and several with pre-existing conditions.
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