Rome
The Italian government said Friday it wants to run a higher budget deficit in 2021 to fund new aid for businesses struck by coronavirus restrictions. In a statement issued overnight after a cabinet meeting, it said it would seek to borrow an extra 32 billion euros (39 billion dollars). The money will be used to offer “further help” to businesses and citizens “worst hit by the effects of the Covid-19 pandemic,” the government said. Last year, Italy increased its public debt by more than 100 billion euros to fund furlough schemes and other economic relief measures. Parliament would have to approve the new debt request but this is seen as a formality despite the political crisis threatening the government’s survival.—AFP
