Economics

Italy Likely to Seek Extra Stimulus as Virus Outlook Worsens

  • Wider budget deficit needed as restrictions are tightened
  • More than 130 billion euros spent so far on economic support

Italy was forced to tighten coronavirus restrictions starting Monday in five regions, including the Milan and Turin areas.

Photographer: Francesca Volpi/Bloomberg
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Italy’s new government may soon seek parliamentary approval for more stimulus spending as a sluggish vaccination campaign and new coronavirus strains extend the nation’s reliance on fiscal support.

Prime Minister Mario Draghi’s administration is planning to distribute about 32 billion euros ($38 billion) that was approved by the parliament in January through a new decree called “sostegno” or “support,” according to people familiar with the matter.