Italy's 2021 budget attempts to cushion COVID-19 financial impact

Italy's 2021 budget attempts to cushion COVID-19 financial impact. The pandemic has taken its toll on all of Europe's markets with the closure of businesses, rising lay-off and spiralling debts. One of the worst-affected nations in Italy.

In an attempt to cushion the financial result of nearly 50 thousand fatalities and more than a million contagions, the cabinet has passed a fiscal stimulus plan for next year. It’s a “maxi budget”, one that Italy’s government will have to approve by the end of the year.

It is going to cost more than 38 billion euros, although the figure might rise as the plan will be reviewed in the next weeks. Healthcare is where the extra expenditure is going. Four hundred million euros have been allocated to buy vaccines and medicines to treat patients with COVID-19, and seventy million euros will be used to get rapid tests. Steps to support the struggling businesses and to save many of jobs are at the centre of Italy’s financial plan.

5.3 billion euros are to be allocated to fund furlough plans as well as a two-month delay to a ban on removals which was scheduled to expire in January. In line with the new way to public spending, the resources plan also involves tax breaks aimed at getting more females back to work and also to support youth jobs.

Italy is the country which will receive the largest share of the European Union’s recovery fund, a part of these devices will be used to tackle some of the long-standing issues generally seen as staying back Italy and its market. Fifteen billion euros of grants from the European Union will be spent mainly in green policy zones and to allow country more digital and innovative.

Prime Minister Conte called the funding as a way to build a better Italy, although the allocation of support will very much depend on how capable national governments are at outlining how they actually intend to pay the funds.