As of February 2020, Italy was one of the first countries to experience a major outbreak of COVID-19. Italian politics are now trying to deal with financial problems from the health crisis. The most problematic topic surrounds the European Union (EU), whose job is to help assist countries with similar problems like Italy’s. However, the Italian anti-EU parties are arguing that Italy should not take help from the European Union.
The public debt of Italy is estimated to be 130% of the GDP. To help the economy, Italy reported that 16 billion euros ($17.34 billion) are needed for immediate financial help. Since the government has already fallen short of providing a massive stimulus package as shown with their current public debt, this will further break down Italy’s economic stance. The eurozone, which contains nineteen countries that use the euro as their currency, has offered a 240 billion euro ($260 billion) financial package. This package gives Italy a chance to borrow money from the European Stability Mechanism (ESM) instead of using financial markets to help its economy.
The Prime Minister of Italy, Giuseppe Conte, is faced with a tough decision since the Italian anti-EU parties are opposed to the loans offered by the ESM. They believe that the money will have an effect on Italy’s sovereignty and could cause new severe measures. If the Prime Minister requests the loans, the anti-EU parties will use this against the government and Europe, but if he refuses the money, the anti-EU parties will still use the financial crisis of Italy against him and the government.
The amount of Italians who believe Italy should leave the European Union has risen since the start of the pandemic. A majority of Italians are not satisfied with both the solidarity between European Union member states in fighting Covid and the measures it has taken so far against the pandemic. This crisis is causing a divide between Italy's politics and their government.
“Figure 3: ‘How satisfied or not are you with the solidarity between EU member states in fighting the Coronavirus pandemic?’”(Cubbe)
Source: European Parliament (June 2020)
1 comment:
I can see why that would be a difficult decision for the Prime Minister to make. It seems that both the country's economy and pride are at stake. I may not have a say in this, but if I were the Prime Minister I would take the economic support from the EU to be able support the citizens who are struggling in such difficult times as the pandemic. Once the country gets back on its feet, then it should leave. The public may dislike the support but they will surely like being able to pick themselves up from poverty, so perhaps the backlash of taking the aid will subside.
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