Italy approves new stimulus package to aid pandemic-hurt economy

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Italy approves new stimulus package to aid pandemic-hurt economy

On Sunday, Italy, the 28-member bloc’s third-largest economy after Germany and France, had passed a €39 billion in new pandemic stimulus package under its fiscal 2021 budget aimed at fostering an economic rebound of the pandemic-hit economy which had entered into a recession due to the pandemic-led forced business closure measures earlier this year, the Italy’s coalition Government of Centre-left PD and the anti-establishment 5-Star Movement had said in a statement following a late-night cabinet meeting.

In point of fact, latest series of a pandemic relief bill worth of €39 billion under the 2021 budget came forth days after the Italian Treasury had forecasted an economic contraction of 9 per cent in fiscal 2020, while the world’s eighth-largest economy’s budget deficit would likely to hit a double-digit percentage point of the nation’s entire GDP (Gross Domestic Product).

Italy unveils new pandemic stimulus bill as pandemic resurgence eyed

Aside from that, amid a likely second wave of the pandemic outbreak which had already forced a number of European countries to impose another round of pandemic restrictions, Italy’s Economy Minister wrote in a Facebook post on Sunday night that the expansionary aids under the 2021 fiscal budget would be totalling to an upsum of €39 billion including a €15 billion in grants from EU’s Recovery Fund.

In tandem, among other pandemic stimulus measures agreed on Sunday’s late-night cabinet meeting, the Italian Government of PM Conte would set up a €4 billion fund in order to recompense the companies which had borne the heaviest brunt of the pandemic driven lockdowns, while the Italy’s Coalition Government had also reached an accord to extend a suspension on repayments of debts for small- and medium-scale companies at least until January-2021.

Apart from that, Italy’s Economy Minister, Roberto Gualtieri, had also added on his Facebook post that a stark sum of €6 billion was offered in tax breaks in order to support employments in a relatively poor southern part of the country.