'Corona Economic Crisis' Italy Introduces Additional 43 Trillion Won Stimulus Package

[Image source=Yonhap News]

[Asia Economy Reporter Hwang Yoon-joo] The Italian government approved an additional economic stimulus package worth 32 billion euros (approximately 43 trillion won) on the 19th (local time), according to local media including ANSA news agency.

This measure focuses on supporting companies affected by the COVID-19 crisis, maintaining employment, providing livelihood assistance to low-income groups, and promoting the vaccination campaign.

By expenditure category, the largest allocation of 11 billion euros (approximately 14.786 trillion won) was designated as subsidies for affected companies, while about 8 billion euros (approximately 10.7535 trillion won) will be used for employment support, income compensation for low-income groups and self-employed individuals, and various tax exemptions.

For COVID-19 prevention, 4.5 billion euros (approximately 6.0488 trillion won) was allocated. Of this, nearly half, 2.1 billion euros (approximately 2.8228 trillion won), will be spent on vaccine purchases.

Additionally, budgets were set for financial support to local governments (3 billion euros) and support for the tourism and cultural industries (2.1 billion euros).

Prime Minister Mario Draghi, at a press conference following the approval of the stimulus package, emphasized that although it is only a partial solution to the ongoing economic crisis, it is the best possible measure under the current circumstances.

Since the outbreak of COVID-19 in February last year, Italy has introduced several economic stimulus measures. The total amount is estimated to exceed 200 billion euros (approximately 269 trillion won).

This is expected to directly lead to an increase in national debt and fiscal deficits. As of the end of last year, the national debt-to-GDP ratio reached a postwar high of 155.6%. It is the second highest in the Eurozone after Greece. The fiscal deficit is expected to reach around 10% this year, up from 9.5% of GDP last year.

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