The government of Prime Minister Giuseppe Conte had increased its spending by five percent to cushion the effects of the severe recession. In addition, income fell by 7.7 percent because, for example, tax revenue fell due to the crisis. The government is aiming for a deficit of 10.8 percent for this year, compared to 1.6 percent in 2019.

The eurozone’s third-largest economy after Germany and France collapsed in the spring at a record rate of 12.8 percent. The EU Commission expects the gross domestic product to shrink by 11.2 percent for the year as a whole, while the government in Rome only expects a minus of around eight percent.