Italy Clears 25 Billion-Euro Spending Plan to Fight Virus
Italy Set to Pass New Tax, Unemployment Measures in Virus Crisis
(Bloomberg) --
Italy’s government approved a 25 billion-euro ($28 billion) package to support its strained health system while helping businesses and families counter the economic impact of Europe’s worst coronavirus outbreak.
The decree, approved at a cabinet meeting chaired by Prime Minister Giuseppe Conte, laid out new measures ranging from suspending tax payments to helping cover layoffs to mortgage relief, as a nationwide lockdown weighs on the already sluggish economy.
The plan will “leverage” about 340 billion euros in financing, Finance Minister Roberto Gualtieri told reporters at an appearance alongside Conte on Monday in Rome.
“We’re trying to build a dam to protect workers and families,” Conte said. “This is a European challenge which has to involve collaboration,” the premier said in an appeal for more coordination between European Union leaders. He said other measures would follow.
Italy has the world’s second-highest number of diagnosed cases, with about 28,000 known infections and more than 2,100 deaths.
“We will put forward more measures with a plan for significant investments, which we will push through at a speed our country has never seen,” Conte pledged.
The measures outlined Monday include 3.5 billion euros in spending for the health sector, state underwriting for a portion of companies’ property rental costs, subsidies for the self-employed and a nine-month mortgage relief plan for self-employed and other non-salaried workers who’ve seen their earnings fall by more than a third during the virus crisis.
Provisions also include a state guarantee of up to 5 million euros for small and medium-sized businesses, liquidity assistance by state lender Cassa Depositi e Prestiti SpA for companies and 15 days of parental leave for private-sector employees with children under the age of 12.
Conte’s government is confident it has support from the European Commission for its stimulus package. Gualtieri said fellow finance ministers from the euro area will follow Italy’s approach on income and liquidity support, delaying tax payments and providing support for investments.
--With assistance from Karl Maier, Tommaso Ebhardt, Sonia Sirletti, Alessandra Migliaccio and Flavia Rotondi.
To contact the reporters on this story: John Follain in Rome at jfollain2@bloomberg.net;Alberto Brambilla in Rome at abrambilla8@bloomberg.net;Alessandro Speciale in Rome at aspeciale@bloomberg.net
To contact the editors responsible for this story: Chad Thomas at cthomas16@bloomberg.net, Jerrold Colten, Karl Maier
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