Italy Doubles COVID-19 Supplementary Budget... 7.5 Billion Euro Emergency Injection

[Image source=EPA Yonhap News]

[Asia Economy Reporter Hyunwoo Lee] The Italian government has decided to urgently inject an additional budget of 7.5 billion euros (approximately 10.0159 trillion won) to respond to the economic recession caused by the novel coronavirus infection (COVID-19). This amount is more than double the initially planned 3.6 billion euros. The measure is interpreted as a response to concerns over massive economic damage, as the number of confirmed COVID-19 cases and deaths in Italy is rapidly increasing, and the main affected areas are concentrated in the northern region, which accounts for more than half of the country's gross domestic product (GDP).

According to foreign media such as The Wall Street Journal (WSJ), Roberto Gualtieri, Italy's Minister of Economy, announced at a press conference on the 5th (local time) that an emergency supplementary budget of 7.5 billion euros will be injected to prepare for COVID-19 damages. Previously, the Italian government planned to allocate an additional supplementary budget of 3.6 billion euros to support small and medium-sized enterprises, small business owners, and households, but the scale was criticized as too small compared to the damage, leading to the budget being expanded to more than double.

As of this day, the cumulative confirmed COVID-19 cases in Italy surged to 3,858, with 148 deaths. Moreover, the northern regions such as Lombardy, which are the main affected areas, account for more than half of the GDP, raising expectations that the economic damage will be even greater. According to WSJ, Lombardy, Veneto, and Emilia-Romagna, which account for about 90% of confirmed COVID-19 cases in Italy, represent about 40% of the entire Italian economy.

Additionally, concerns are growing that the tourism industry, which accounts for 13% of Italy's GDP, will suffer significant damage. If the COVID-19 situation continues until next month and tourists sharply decrease, a sales decline of approximately 4 billion euros is expected across Italy.

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