Italy will increase spending to help the economy deal with the impact of the coronavirus, allocating 25 billion euros ($28.3 billion) to tackle the rising crisis, PM Giuseppe Conte mentioned on Wednesday.
Last week the cabinet stated it could need 7.5 billion euros; however, since then, the emergency has scaled dramatically and the whole nation is under lockdown, freezing much financial activity in a country that was already due to tip into recession.
Conte told reporters that already strict limitations on movement could be contracted additional after the northern area of Lombardy, focused on Italy’s financial hub Milan, asked for all shops to close and public transport to close.
Italy is the worst-hit country on the planet after China, with around 631 deaths and 10,149 confirmed cases since the infection came to light in Lombardy on February 21.
The extra spending means Italy’s 2020 budget deficit seems to be certain to rise above 3% of national production, the ceiling set by the European Union’s guidelines.
Economy Minister Roberto Gualtieri, who last week estimated a deficit of 2.5%, declined on Wednesday to present a new target.
He stated that Rome would possibly need help from European Union funds to take the pressure off Italy.