Italy clears stimulus package to help pandemic-hit economy

20
Oct '20
Pic: Shutterstock
Italy has approved a new stimulus package in its 2021 budget to foster an economic rebound from the recession resulting from the COVID-19 pandemic, the government said in a recent statement. Expansionary measures next year will total more than €39 billion ($45.70 billion), including some €15 billion of grants from the European Union’s Recovery Fund, economy minister Roberto Gualtieri wrote on Facebook.

Among the measures, a €4-billion fund has been set up to compensate companies worst hit by lockdowns and a moratorium on repayments for loans to small and medium businesses has been extended until January, a global newswire reported.

The budget also extends temporary lay-off schemes for companies with workers on furlough at a cost of €5 billion. Almost €6 billion are marked for offering tax breaks to support employment in the poor south of the country, Gualtieri said.

Italy has forecast a 9 per cent economic contraction for 2020 and a budget deficit equating to 10.8 per cent of the gross domestic product.

Fibre2Fashion News Desk (DS)


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