Italy mulls new economic package amid COVID-19 fallout

ROME

Italy's government approved a new stimulus package on Wednesday aimed at shielding the country's fragile economy from the negative impact of the worst coronavirus outbreak in Europe.

Italian Economy Minister Roberto Gualtieri said at a press conference that the package would include measures for up to €25 billion ($28 billion), which will translate to an additional budget deficit of about €20 billion.

Gualtieri indicated that the new economic package would need to raise the country's current deficit targets, suggesting that the European Commission was open to considering further flexibility due to the exceptional health emergency.

On Monday, Italian premier Giuseppe Conte had already asked the EU for more financial leeway over the bloc's spending rules. It remains to be seen whether those measures will be enough to counterbalance the economic impact of the virus.

Some 631 victims have died amid the novel coronavirus outbreak in Italy, with over 8,500 people currently infected nationwide.

Italy's Gualtieri said that an initial €12-billion tranche would be used to face the country's immediate economic needs, with a special decree to be issued by the end of the week.

Rome has not provided specific details on the economic measures set to be approved, though some options under discussion include support for workers hit by temporary layoffs, additional funds for small and medium-sized companies affected by the closures and a possible moratorium for business and personal mortgage repayments.

Conte, who has ordered a nationwide lockdown to counter the spread of the virus, has recently been under pressure from governors in Lombardy and Veneto -- the worst affected areas -- to introduce more drastic measures.

Responding to those calls, Conte said on Wednesday he would be open to considering those requests for even more stringent measures, including shutting down non-essential businesses and public transport. He also warned, however, that civil liberties and social rights were at stake.

The novel coronavirus emerged in Wuhan, China, last December and has now spread to more than 100 countries.

The global death toll is now almost 4,300, with around 118,000 confirmed cases, according to the World Health Organization (WHO).

On Monday, the head of the WHO said with the number of countries affected by the virus, the "threat of a pandemic has become very real".