The Italian government approved on Monday its budget for next year, with a reduced level of targeted deficit, Reuters reported.<\/p>\n\n\n\n
The 2021 budget has set a target of a 7% fiscal deficit compared to the Italian gross domestic product (GDP), down from 10.8% in 2020.<\/p>\n\n\n\n
However, it is expected that the deficit target could be raised to allow room for extra stimulus to combat the effects of the Coronavirus pandemic.<\/p>\n\n\n\n
More than EUR 100 billion has already been spent this year to combat the impact of the pandemic, however, a further package worth EUR 15-20 billion is being prepared by the Italian cabinet.<\/p>\n\n\n\n
Italy is one of the countries most hit hard by the pandemic.<\/p>\n\n\n\n
It was the leading European countries in terms of the virus outbreak, and concerns about a new wave taking place are renewing fears from the deadly virus.<\/p>\n\n\n\n
The new budget also sets the public debt ratio to decline to reach 155.6% of the GDP in 2021, down from 158% in 2020.<\/p>\n\n\n\n
Italy has the second highest public debt to GDP ratio in the Eurozone following that of Greece.<\/p>\n\n\n\n
Stimulus spending saw loans and grants being provided to a number of Italian companies to ensure the market is able to face the pandemic\u2019s effects.<\/p>\n\n\n\n
More stimulus measures are expecting in the months to come, according to market sources, cited by Reuters.<\/p>\n\n\n\n
The new budget inclused expansionary spending of around EUR 40 billion, including EUR 15 billion of grants from the European Union\u2019s Recovery Fund.<\/p>\n\n\n\n
In addition, around EUR 4 billion have been allocated to grants for companies most hit by the pandemic and the preventive measures.<\/p>\n\n\n\n
Recently, the European Union (EU) and the European Parliament have agreed on the details of the next European budget with a total value of EUR 1.8 trillion.<\/p>\n\n\n\n
The 2021-2027 EU budget will include a new recovery package for curbing the impact of the Coronavirus (COVID-19) crisis.<\/p>\n\n\n\n
Negotiators from the European Council, the EU executive body, and the European Parliament, the EU\u2019s legislative arm, have reached a political agreement on the EU budget and recovery package, the spokesman for the German presidency of the EU Sebastian Fischer said.<\/p>\n\n\n\n
It took around four months to negotiate a deal, which remains subject to the approval of the member states.<\/p>\n\n\n\n
The new budget includes increased spending on health, education, and security by EUR 16 billion, compared to the drafted budget during the EU summit last July.<\/p>\n\n\n\n
The plan also includes new revenues to make sure the EU will be able to repay the EUR 750 billion of planned debt to face the impact of the pandemic.<\/p>\n\n\n\n
Governor of the De Nederlandsche Bank, the Central Bank of the Netherlands, said that the Eurozone may require extra stimulus and support to face the COVID-19 crisis.<\/p>\n\n\n\n
According to Klaas Knot, who also serves as a member of the European Central Bank\u2019s (ECB) board, said that the ECB need to maintain low interest rates to help the economy recover from the Coronavirus crisis.<\/p>\n","protected":false},"excerpt":{"rendered":"
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