Anti-cyclical economic measures
will be needed to mitigate the effects of the coronavirus
emergency, European Economic Affairs Commissioner Paolo
Gentiloni said Wednesday.
"Faced with the economic impact of the coronavirus it will be
necessary to coordinate among various EU countries to adopt
anti-cyclical measures, which can favour expansion and avert the
risks of recession," he said on the margins of the presentation
of country reports.
He said the virus would hit the Italian economy hard.
"The Italian economy, which has had a bad fourth quarter of
2019, will have its progress very affected by the evolution of
the coronavirus affair.
"The impact of the virus on the economy is one more reason to
combine, with the absolute priority of protecting our citizens'
health, also the commitment to limit the spread of panic, which
leads to halting economic activities even when it is not deemed
necessary by health authorities".
Moody's said Wednesday that Italy is more likely to go into
recession after the outbreak of the coronavirus in the north.
But the agency added that it is unlikely to affect sovereign
and sub-sovereign credit profiles.
"The outbreak of the virus in the northern regions of Italy -
which account for around 41% of the country's GDP - adds further
downside to the Italian economy's already weak growth outlook,
and increases the risk of Italy sliding into recession," it
said.
"Although the scale and duration of the impact is highly
uncertain at this stage, temporary disruption to consumption and
production is highly likely".
Foreign Minister Luigi Di Maio on Wednesday said the cabinet
has approved a specific plan to "correctly inform all States
abroad about what is really going on in Italy" in connection
with the coronavirus emergency.
Di Maio said in a Facebook post after a cabinet meeting the
previous night that it is the foreign ministry's task to
"contain the spread abroad of incorrect or even fake news"
published over the last few days.
"The more fake news are broadcast and the more Italy endures
damages, also on an economic level". "Over the past few hours we
have obtained the guarantee from many States that there will be
no blocks or restrictions against us", Di Maio also said.
The foreign minister said he was also working on "campaigns"
to promote "correct information" aimed at taking off a list of
Italian destinations to be avoided due to the outbreak "a series
of regions and municipalities that have nothing to do with it".
Di Maio also spoke about funding to support Italian exports in
the post.
"I have organized for Tuesday a meeting to discuss Italian
exports and Made in Italy" products, the minister said,
highlighting that "300 million euros are ready with the
Institute for Foreign Trade in favor of our companies and we
will discuss together how to react in the best way to deal with
this moment".
"An additional 350 million will be allocated for the fund on
exports of Sace-Simest", the foreign minister also wrote on
Facebook.
The first 300 million euros for exports had been announced on
February 11.
Italian public administration offices must promote
'telework', or telecommuting, and flexibility as part of
measures to contain the spread of coronavirus, according to a
directive signed by Civil Service Minister Fabiana Dadone
published on Wednesday.
More flexibility in the workplace, where possible, was urged
for those with health conditions, commuters and parents,
according to the directive, which also called for video
conferences for meetings.
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