Italy approves long-awaited €55 billion bailout package

A handout photo made available by the Chigi Palace Press Office shows Italian Prime Minister, Giuseppe Conte, attending a press conference during a break of the Cabinet for the "Relaunch" Law Decree (dl Rilancio) at the Chigi Palace in Rome, Italy, 13 May 2020. EPA-EFE/FILIPPO ATTILI / HANDOUT

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The Italian government has approved a long-delayed, 55 billion-euro ($59.6 billion) stimulus package aimed at helping Italy’s battered businesses and struggling families survive the coronavirus crisis.

The new measures also include a norm to let irregular migrants obtain temporary work papers to enable them to be hired as farm labourers or carers. The ruling 5-Star Movement initially fought the initiative, but eventually gave way rather than risk seeing the government fall apart over the issue.

The bill provides for payments of between 400 and 800 euros a month for a maximum of two months to help those with no income who are excluded from the current welfare safety net.

Prime Minister Giuseppe Conte had promised to introduce the measures last month, but repeated rows within his increasingly shaky coalition over various aspects of the decree, which runs to almost 500 pages, led to repeated holdups.

“We have worked on this decree aware that the country is in great difficulty,” Conte said on Wednesday following a Cabinet meeting. The decree takes immediate effect.

Rome has forecast that the economy will contract by at least 8% this year as a result of the COVID-19 epidemic, which has so far killed 31,106 people in Italy – the third-highest death toll in the world after the United States and Britain.

After a two-month lockdown, tight restrictions on businesses and movement are being gradually rolled back.

The stimulus package, which follows an initial 25 billion-euro package introduced in March, includes a mix of grants and tax breaks to help firms ride out the downturn. It also offers help to families, including subsidies for childcare and incentives to boost the ravaged tourism sector.

The Treasury has predicted that the extra spending, coupled with a collapse in tax revenues, will push the budget deficit to 10.4% of gross domestic product this year, while public debt was seen surging some 20 percentage points to 155.7% of GDP.

Read more via ANSA

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