Italy Confirms 73 Trillion Won COVID-19 Support Package... "Still Insufficient"

[Image source=EPA Yonhap News]

[Asia Economy Reporter Eunbyeol Kim] The Italian government has finalized and begun implementing a support package worth 55 billion euros (approximately 73 trillion won) to revive the economy hit by the novel coronavirus disease (COVID-19).

According to Bloomberg News and others on the 14th (local time), the Italian government announced an administrative order containing a comprehensive economic stimulus plan after a cabinet meeting on the night of the 13th.

2.56 billion euros will be allocated to support the livelihoods of workers who lost their jobs due to COVID-19, and 15 to 16 billion euros will be invested to support industries such as small and medium-sized enterprises facing liquidity crises. Additionally, 3.25 billion euros and 1.4 billion euros have been assigned respectively for improving the medical system and investing in education and research, and 2 billion euros will be used to support the tourism industry, which has been devastated by COVID-19.

The package also includes tax reduction benefits worth 40 billion euros to help companies reduce costs. Prime Minister Giuseppe Conte emphasized that this economic stimulus plan will lay the foundation for Italy's economic recovery. This administrative order takes effect immediately upon announcement.

However, Bloomberg pointed out that the scale of Italy's economic support package may not be sufficient to revive the economy. The European Commission (EC), the executive branch of the European Union (EU), forecasted that Italy's economy will shrink by 9.5% this year, while Bloomberg predicted a 13% contraction.

Italy, the initial epicenter of COVID-19 spread in Europe, attempted to activate economic measures, but the implementation was delayed due to disagreements among interest groups and conflicts within the government.

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