"Italy Hit Hard by COVID-19, Emergency 4.7 Trillion Won Economic Stimulus Package Allocated"

[Image source=AP Yonhap News]

[Asia Economy Reporter Cho Hyun-ui] Italy has decided to allocate an emergency budget of 3.6 billion euros (approximately 4.7642 trillion KRW) to stimulate the economy, which has been hit hard by the spread of the novel coronavirus infection (COVID-19).

According to ANSA news agency, Roberto Gualtieri, the Minister of Economy, announced on the 2nd (local time) that they plan to secure 3.6 billion euros in emergency funds to support small and medium-sized enterprises and small business owners directly affected by COVID-19. This amount corresponds to 0.2% of Italy's gross domestic product (GDP).

Of this, 25%, or 900 million euros (approximately 1.1913 trillion KRW), will be used to support 11 northern regions under a "movement restriction order." These regions were the initial virus transmission sites in Italy, where the number of confirmed cases surged rapidly in mid-last month, effectively restricting the movement of about 53,000 residents.

Some of the funds will also be allocated to support workers who have lost jobs or are working reduced hours due to COVID-19, small and medium-sized enterprises, and the promotion of the tourism industry. The Italian government plans to finalize support measures at a cabinet meeting on the 6th after consultations with economic activity groups such as businesses and labor unions.

This emergency funding is based on authorities' assessment that the negative impact of COVID-19 on the real economy is much greater than expected. Italy has the highest number of confirmed COVID-19 cases and deaths in Europe. Since the northern region, which accounts for more than half of the country's GDP, has become the epicenter of virus spread, it is expected that the economic damage will be enormous.

However, this emergency budget allocation requires approval from the European Union (EU) and the parliament, and the key issue will be the EU's stance, which is concerned about Italy's already serious fiscal deficit and expanding public debt.

This content was produced with the assistance of AI translation services.