Italy's government has announced that it will further hike the spending in “massive shock therapy” to overcome the widening economic turmoil due to the novel coronavirus. Prime Minister of Italy Giuseppe Conte said in an interview with an Italian daily that he will use all human and economic resources available to recover out of the emergency. He spoke about using flexibility envisaged by the European budget rules “in full”.
Giuseppe said in the Italian daily report that he wouldn’t stop. He said that Europe cannot think of confronting an extraordinary crisis by implementing ordinary measures. He further added saying that his coalition government was exploring various initiatives, and he would hold a meeting with the representatives of the opposition parties to discuss the new economic measures. He, however, did not give further details about the measures.
As Italy braces for the health crisis, having been hit the hardest in the impact of the disease than any other country in Europe, it approved unprecedented quarantine of over 16 million in a lockdown. The death toll in the region spiked to at least 366 and total cases have surged by 75 percent climbing to 7,375, as per the reports.
Economy Minister Roberto Gualtieri has reportedly pledged over 7.5 billion euros increasing the annual budget deficit threshold to 2.5 percent from its current 2.2 percent to help the economy withstand the aftermath of the epidemic. The Milan stock exchange plunged by 17 percent in its all-share index due to an ongoing health crisis, according to an international financial report. Traders expected “violent sell-off”.
The European Commission said in an Italian agency report that the extra spending in response to coronavirus will be non-compliant with European Union budget rules. In a separate statement to the media, the economy minister said that the response measures in the work will be vigorous, but temporary to repair the economy. It said that the ministry would “spare no efforts”.