The Italian government adopted on Sunday in the Council of Ministers a draft finance law amendment amounting to 39 billion euros in response to the impact of the Covid-19 crisis on the third economy in the euro area.
This finance law will be financed by the additional deficit and by 18 billion euros of the European recovery plan adopted in July in Brussels.
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The Minister of the Economy Roberto Gualtieri estimated that there had
never been such an expansionist finance law in the history of the country
, recalling that investments will go from 2.3% of GDP in 2019 to 4 % in 2021. The Council of Ministers also adopted the “
summary of the finance law
” which will be sent to the European Commission.
Tensions arose between members of the majority, made up of the Democratic Party (center-left) and the 5-Star Movement (anti-system), over the new taxes imposed on sugar and plastic, which were ultimately postponed to July. 2021.
Among the main measures adopted include 1.4 billion euros for the extension of fixed-term contracts for 30,000 doctors and nurses, 400 million for the purchase of vaccines, and 1.2 billion to hire 25,000 teachers.
In total 4 billion euros are intended for the health sector.
This is the direction to follow.
We are definitely turning the page on budget cuts and we are starting to invest again in the most precious thing we have
”, greeted the Minister of Health Roberto Speranza.
Suspension of certain taxes
The suspension of the payment of certain taxes and duties has also been decided.
The blocking of layoffs will not be extended beyond January 1, but the ban on layoffs will remain in effect for companies benefiting from layoffs, which runs until March.
Italy, the first country affected by the coronavirus epidemic in Europe in February, is counting on an increase in its public deficit to 10.8% of GDP in 2020 reduced to 7% in 2021. The peninsula, where the pandemic has made nearly 36,000 deaths, thanks to a vast European stimulus program, forecasts a gross domestic product (GDP) growth of 6% in 2021.
With 208.6 billion euros in grants and loans, the peninsula is the main beneficiary of a European recovery plan of 750 billion euros adopted in July by EU leaders to deal with the pandemic.