Economics

Italy’s Fragile Finances Have a $2.4 Trillion Virus Problem

Italy Clamps Down On Public Events And Travel To Halt Spread Of Coronavirus — Photographer: Tullio Puglia/Getty Images

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By Alessandra Migliaccio and Giovanni Salzano

March 16, 2020 at 4:00 AM UTC

Updated on

March 17, 2020 at 12:00 PM UTC

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Investors are turning their attention to one of Europe’s biggest time-bombs: Italy’s stressed financial system.

The coronavirus outbreak and the resulting lockdown will have a significant impact on gross domestic product, and Italy plans to spend as much as 25 billion euros ($30 billion) to blunt the damage of a nationwide lockdown to businesses and individuals.