Italy government promises €400 billion to assist businesses damaged by Covid-19 emergency

ON Monday, Italian Premier Giuseppe Conte announced that new measures would see €400 billion injected into businesses suffering due to the coronavirus pandemic. 

The emergency plan will provide €400 billion of bank loans and liquidity in a move described as “firepower” by the PM. 

In a television address on Monday evening, Conte declared, “With the decree just approved, we are giving immediate liquidity of €400 billion to our companies: €200 billion for the internal market, another €200 billion to boost the export market.”

The new programme comes after a €340 billion stimulus package was announced in March. “I cannot remember such powerful measures being introduced in the history of our republic to help with the financing of our businesses,” said Conte during the address.

All non-essential businesses in Italy will remain closed until 13 April, the new extension date for the current lockdown measures. There are concerns that many of these businesses will not be able to reopen after lockdown regulations have lifted.  

The new decree means bank loans up to a total of €750 billion for businesses of all sizes will be protected by the state, which will also shield banks from losses of 100 per cent on loans of up to €25,000, and 90 per cent on loans exceeding that. 

The interventions have been possible due to a relaxing of European Union regulations on state aid meaning credit can continue to flow into the economy while banks remain protected from losses. 

Conte has also announced an extension of the so-called “golden power” rule, meaning key industries will be protected from takeovers by foreign companies. 

The prime minister told reporters, “We will be able to control corporate operations and hostile takeovers not only in traditional sectors but also in the financial, credit, insurance, energy, transport, water, health, food safety, robotics, semiconductors and cybersecurity.”

Conte went on to assure the nation that when the lockdown measures lift, “there will be a new spring for Italy.”

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Rebecca Ann Hughes

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