Italy’s Conte Says Taking Calculated Risk in Easing Lockdown

(Bloomberg) -- Italy’s Prime Minister Giuseppe Conte acknowledged he is taking a “calculated risk” with an accelerated easing of a national lockdown from Monday, as the country braces for the fallout of a crippling recession.

Conte, under pressure to relax containment measures from his coalition allies as well as local poliltical and business leaders, forged an agreement with regional governors across the country to pave the way for relaxing rules that have crippled the euro area’s third-biggest economy.

“We are taking a calculated risk, aware that the contagion curve could rise again,” Conte told reporters Saturday in the courtyard of his official Rome residence. “We are taking this risk and we have to accept it, otherwise we could not restart. We cannot wait for a vaccine.”

Businesses including shops, bars, restaurants and barbers will be allowed to reopen on a regional basis, and Italians will be able to move within their own region starting Monday.

Social distancing and other health and safety rules will accompany the easing, with customers having to wear protectives masks in shops, restaurants ensuring a distance of at least one meter between clients, and group sports banned on beaches. Schools and universities remain closed.

The relaxation comes as the country, the original European epicenter of the coronavirus, registered the lowest number of deaths from the disease since the lockdown began in early March, officials said earlier Saturday. Total deaths now stand at 31,763.

Conte gave more details on planned re-openings, which include:

• May 18: Most shops, as well as bars, restaurants, barbers, museums and beauty centers; citizens are free to travel within their region and to meet friends; beaches reopen
• May 25: Swimming pools, gyms, sports centers
• June 3: Nationwide travel, arrivals from European Union resume
• June 15: Cinemas, theaters reopen; day camps for children start

Conte said he had agreed with regions on national monitoring of the spread of the virus. The government can reimpose restrictions on regional authorities, including local lockdowns, to control any new outbreaks.

“All interactions must respect the one-meter distance,” Conte said. “We recommend that people always have a protective mask with them, which will have to be worn in certain areas including indoors,” Conte said.

The European Commission forecasts that Italy’s economy will shrink 9.5% this year while Bloomberg Economics sees a 13% contraction.

Conte, who shut down most of the economy in early March to combat the spread of the coronavirus, allowed manufacturers and construction companies to return to full operations early this month, while also giving Italians slightly more liberty, allowing activities like walking, jogging and visits with family and loved ones.

The administration approved a second stimulus package worth 55 billion euros on Wednesday in a bid to reduce the economic impact of the pandemic. The plan focuses on liquidity for businesses and aid to families hurt by the lockdown. A 25 billion-euro package was passed in March.

©2020 Bloomberg L.P.