Today: Wednesday, 22 May 2024 year

Italy to spend 40 billion more to help virus-hit economy

Italy to spend 40 billion more to help virus-hit economy

Italy’s government to borrow another EUR40 billion this year to help recover the economic impact of the pandemic.

Italy’s prime minister’s office has confirmed Thursday that a decision to borrow money is reasonable due to the current non-stop crisis. The borrowed EUR 40 billion will be spent on new measures to support businesses and the economy, Mario Draghi said.

The last expansion of the budget deficit, by EUR 32 billion, shows that the EU country seeks to recover from its worst recession since the end of WWII.

Commenting on the current move, PM Draghi says the government has been under pressure to offer more relief to businesses struggling with restrictions. The new economic targets approved on Thursday expects gross domestic product (GDP) growth of 4.5 percent in 2021 and of 4.8 percent in 2022, after a record fall of 8.9 percent in last year — the biggest in postwar history.

Italy, one of the most powerful EU economies, is set to receive around EUR190 billion, arriving between 2021 and 2026, The Local Italy has learned.