EU’s Commissioner for Economy Paolo Gentiloni warned that each month of lockdown in Italy would cause a -3% annualized GDP decline. But for now, there is no discussion on an Italian bailout. Confirmed coronavirus cases in Italy surged pass 110k this week while death tolls broke 13k. There is tentative signs of slowing after rigorous measures but no end in sight yet.
Earlier in the week Gentiloni a mentioned the absolute need to have coordinated European actions, which is growing already in the healthcare side and border management. EU members have taken measures of around EUR 270B and the efforts should be strongly coordinated in the new weeks and months. The suspension of fiscal rules is sufficient for a first immediate reaction. But there is a need to finance a general European recovery plan for the months ahead.