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Top 3 Reasons Why Economy in Italy Will Be Better After Corona Virus

  • Importance of common loan.
  • Italy recovering from WW2.
  • How will Italians overcome difficulties this time.

The country’s background notes that measures to quarantine the coronavirus and restrict people’s movement necessitate to be early and strictly enforced.

Italy has exceeded China as the nation with the biggest death casualties, shifting the epicenter of the pandemic.

1-EU Agreed to the Common Loan

The EU's COSME Loan Guarantee Facility, which is controlled by the EIF, has been applied by Italy's national promotional institution CDP, to strengthen access to finance by domestic SMEs.

The alliance among CDP and the EIF is assumed to provide €3.75 billion in counter-guarantees for Italy's Guarantee Fund for SMEs, considerably expanding its current guarantee capacity.

The agreement is supported by the European Fund for Strategic Investments (EFSI). Thanks to EU support, delivered to Italy by CDP, up to €5.8 billion of loans are assumed to be given to small and medium businesses.

All EU nations will run up large budget shortages this year battling the pandemic and its outcomes, and nations such as Italy and Spain — with lower government finances than Germany — will require to be capable to borrow at fair prices of interest.

Merkel, and other leaders, say the bloc should draw the €410 billion ($454 billion) left in the European Stability Mechanism, a bailout fund placed to support nations during the EU debt crisis eight years ago.

2-Italy Was the First Economy to Recover from WW2

Starting in the 1960s, Italy achieved its postwar change from a widely agrarian, almost poor nation into one of the most financial and socially advanced countries of the world. 

One result of these changes was that immigration from the south decreased after 1970 and, by the 1980s, even shifted, as jobs became more infrequent in northern Italy and northern Europe. 

Additional demographic, economic, technological, and cultural changes changed Italian daily life and fed social unrest. After the Cold War ceased in 1989, pressures for political and economic improvement, opened Italy a new range of opportunities.

3- Well, You Should Know Italians, Just Waiting on the Start Line to Invest

Italy is the 3rd biggest economy in the Eurozone and the 8th largest in the world with a population of more than 60 million. Its GDP is about 2 trillion dollars. Italy's domestic market offers several business opportunities and the net wealth of Italian families is bigger than their available income. 

What will Italy’s financial and business capital help the nation recover?

Tourists know it as a global fashion hub. But let us not forget that Milan is a manufacturing powerhouse, surrounded by rich agricultural land. It remains a destination for millions of tourists every year. 

Is the fate of Italy related strongly with Milan and its people?

The last time Italy was damaged, after World War II, it was Milan and nearby areas that raised the nation back to life.

The manufacturers in the Milan-Turin-Genoa triangle fed the “economic miracle” of the 1950s and ‘60s. Italy's economy increased more than 5% a year and its factories presented the world symbols such as the Fiat 500, the Piaggio Vespa scooter, and the Pirelli tires.

Many Italians say the crisis, as severe as it is, offers a chance to establish reforms after a decade of not moving. Business leaders say the time is available for modifying the way Italians surround their lives and jobs.

Will again big companies be the spine of the recovery for Italy as it drags out from the lockdown? Let's hope for the best!