Italy Eyes $29 Billion in Extra Spending to Rescue Economy

Italys government approved a proposal for 25 billion euros ($29 billion) in extra spending as it battles to rescue an economy devastated by the coronavirus pandemic, the cabinet said in a statement.

A cabinet meeting Wednesday evening hosted by Prime Minister Giuseppe Conte backed the demand to widen the budget deficit this year, which will go to parliament for approval. The extra money will be used to help businesses with temporary layoffs and liquidity and provide subsidies to local and regional authorities, the government said.

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The government had already approved two stimulus packages worth a total of 75 billion euros. Italy expects to receive the biggest share of a 750 billion-euro recovery fund approved by European Union leaders this week.

Conte told the Senate in Rome on Wednesday that the country will benefit from total funding of 209 billion euros in grants and loans under the package.

— With assistance by Julia Fioretti

(Updates with government statement)