The effects of Covid-19 in Italy

Covid-19, more commonly known as Coronavirus has taken the world by storm, and has caused several countries to be quarantined from the rest of the world. One example of this is Italy, which has 6,387 confirmed infections and 366 deaths, on the 8th of March 2020.

As a result of this, Italy’s economy is under severe stress, which will only get worse as the disease keeps spreading, so Italy have unveiled their plan to inject a €3.6bn stimulus into the economy, in a bid to mitigate the impact of the largest outbreak of coronavirus in Europe.

On Sunday, Italy’s economy minister said the government would introduce tax credit for companies that reported a 25% drop in revenues, as well as tax cuts and extra cash for the health system. This is because if firms have such a significant drop in revenue they are more than likely going to less incentivised to keep producing at the current rate so the government can alleviate their loss by reducing the amount f tax they have to pay. The injection will also be used to make up for loss of government revenue from their tax cuts.