New economic measures to jumpstart the economy and fix previously undetected issues were unveiled today by the Italian government. Prime Minister Giorgia Meloni announced the plan during a press conference in Rome and called for its focus on employment, investing in infrastructures, and sustainable growth of SMEs.
Labelled at 50 billion euros, the package is a set of initiatives aimed at the development of growth points for Italy and the country’s strengthening in the global economy. The Product is remember as one of the key components that consists of €15 billion to be spent for infrastructures such as; transport, broadband internet facilities, and public building and facilities.
Under employment promotion, the government has provided €10 billion for tax credits and subsidies to firms for hiring new employees especially youths and bridging the regional gap. Furthermore, €8 billion alone has been provided for research and development funding for the growth and development of innovative technology in different fields.
The stimulus package also includes measures to support Italy’s struggling SMEs, which form the backbone of the country’s economy. Currently there is a €5 billion fund to offer rebated interest rates for loans and even grants to small business while they can survive the continuous struggle in the economy and expand into viable prospects.
Italy has a social issue and a growing number of aged citizens; thus, €7 billion has been allotted to health care and social services. These include spending on hospital upgrades, increasing home care, and enhancing rural health.
Another of the stimulus packages’ major areas of emphasis is the green economy, where 5 billion euros has been directed to invest in the development of green energy and combating climate change. Promotion of renewable energy, stipulated in the context of financial instruments for providing incentives to the energy sector of the EU, includes, inter alia, improvement of energy efficiency of buildings, construction of renewable energy systems, promotion of renovation of buildings, and extension of charging infrastructure for electric vehicles.
Analysing stimulus packages, it should come as no surprise that this specific stimulus package has been met with paudoux reactions among economists, as well as executives and business owners. While many welcomed the government’s so called proactive stance to tackle the unfolding problems of the economy, some critics have lamented, this package does not address structural problem areas like bureaucratic red tape and high levels of debt.
The measures do not seem to have generated the same level of opposition as other stimulus measures introduced in other countries due to lack of information on their implementation but the opposition parties have raised questions on their effects to the Italian budget deficit. Still, Prime Minister Meloni said that the proposed measures will make it easier to manage the budget without violating EU fiscal rules.
As Italy is still struggling with COVID-19 consequences, both short-term and long-term, as well as structural problems, the effectiveness of this stimulus package will attract a lot of attention domestically and internationally. The government believes that these changes will be enough to bring the much-needed luck and send Italy on a higher economic plane to a more developed and sustainable future.
