Coronavirus and the related spending budget will drive Italy — akreditovanniy the Euro zone in new debt, according to Bloomberg. The government sent to Parliament amendments to the budget involving increases in the deficit.
it is Expected that by the end of 2020, the Italian budget deficit will amount to 10.4 percent of GDP, while in EU rules prescribed the maximum allowable three percent.
In 2018, too much deficit leads to conflict, when the EU threatened sanctions to the Italian government populists, headed by Giuseppe Conte. Were at that time in the parliamentary coalition of the party “League” to attract voters with promises of increased social spending, many of which were impossible while maintaining an acceptable level of deficit.
If the current budget increase is approved, this will entail the need to increase the national debt, which is also much higher than the established norms — more 134,8 percent of GDP instead of 60 percent.
According to the latest projections, the decline in Italy’s GDP for the year could reach eight percent. The country has become the largest source of infection with coronavirus in Europe. At the moment the number of cases exceeds 187 thousand. 25 thousand people died, 54,5 thousand fully recovered.
