Economically, the chronically sick: Why Italy makes the epidemic so hard

Italy is to a spirit land. The Italian Prime Minister Giuseppe Conte has extended the restrictions due to the Coronavirus, which is related to date, only the No

Economically, the chronically sick: Why Italy makes the epidemic so hard

Italy is to a spirit land. The Italian Prime Minister Giuseppe Conte has extended the restrictions due to the Coronavirus, which is related to date, only the North of Italy, on the country as a whole, and advises strongly to remain at home. "Italy is the Hotspot in Europe, and relative to the population of the Hotspot of the world," says Jörg Krämer, chief economist of Commerzbank, and more: "the Chronically Ill to hit the Coronavirus, hardest of all, and Italy is economically considered to be chronically ill."

All of the ski resorts are closed, Large - and sport be exposed to events. The footballer in the Serie A – Italy Bundesliga – play in front of empty stands, but not at all. The citizens are to remain, if possible, at home. Trips within Italy are prohibited. Pupils and students have free. First, this exception applies to state up to 3. April. The whole of Italy, according to the Robert-Koch-Institute a "risk area", and a lock zone with serious consequences for the economy.

the Land where the lemons bloom

affected The Land where the lemon trees bloom, is currently 9.172 Infected and 463 deaths in Europe, most from the Coronavirus. The number of new infections was in China at the height of 4,000 per day. In Italy there are now 1.800. It was just under half, although China is many times larger, is chief economist Krämer concerns. Although Italy's economy in 2019, is still increased by 0.2 percent, a recession this year, but "very safe".

Krämer believes: only the overnight Stays and restaurant visits in Italy accounts for around four percent of the total gross domestic product (GDP). Fall in this area – be careful, only 30 percent off calculated for a quarter, then this would mean a decline in GDP of 1.2 percent in the quarter.

Rome awaits aid is available

The research Department of UniCredit, that the Barrier "is in the short term have greater economic impact, but it should allow the spread of the Virus faster curb." However, the foreclosure of Northern Italy, which stands for about half of GDP and for about two-thirds of the exports of the whole country, hit the Italians hard.

The country has 137,3 percent of GDP already behind Greece, the second highest state debt in the European Union. (Germany, for comparison: 61.2% of GDP). Are allowed according to the Maastricht Treaty, only 60 per cent – a limit, the rip, however, many EU member States. Small Caps Champion: your 3 pillars for a successful wealth accumulation. Successfully and safely in addition to values invest. (Partner quote) Here is an exclusive free trial!

The Italian government has, however, responded fix, first of 900 million euros made available and, last Friday, a further 7.5 billion euros, for example, for short-time working schemes. "Such measures are absolutely useful and have proven their worth in the crisis. A General business program helps hardly at all,“ says Krämer.

Also, the Italian banking Association, ABI is willing to help and wants to suspend loan payments up to a year or run-times to lengthen. The Bank Intesa Sanpaolo, from the EuroStoxx50, to grant to the company, Liquidity support of up to five billion euros. Because the crisis is not permanent.

"Italy is going to be a huge problem for the EU"

Nevertheless, five percent of Germany's exports went to Italy, Economist Krämer, to the extent that the Barrier is expected to meet, possibly also by German companies that the was not a little. In particular, the automotive industry could be carrying a sufferer. "BMW is 60 percent Italian," warns then also, for example, Eckart Petzold, President of the German-Italian business Association in relation to the NZZ. Stock Selection Europe - The trading system for the DAX, Euro Stoxx 50 & co. are Now testing exclusive 30 days free of charge!

support for the "Hotspot" is also by the EU Commission, the Italian aid package at the weekend, the back cover gave. The estimated expenditure would not be used in Brussels budget rules by Italy check the compliance with the EU, wrote to Commission Vice-President Valdis Dombrovskis and Commissioner for economic Affairs, Paolo Gentiloni, in a letter to the Italian Minister of Finance, Roberto Gualtieri.

The Ex-BDI-Chef and Euro-critic Hans-Olaf Henkel warns, however, already in front of a new Euro crisis. "Italy will be a huge problem for the EU," he said of the dpa. The economy of the country is not more waxes, and leave it to reforms against the high level of public debt is lacking. Now the corona is added to this crisis.

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Date Of Update: 11 March 2020, 08:00