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Italy cannot afford to return to normality after the coronavirus emergency but should turn the crisis into an opportunity to reform the country, Prime Minister Giuseppe Conte said on Saturday.
"This is the time to work on a clear project to come out of the crisis," Conte said in the opening speech of a nine-day policy consultation in Rome.
"We must take advantage (of the situation) to turn the crisis into an opportunity, and remove all the obstacles that have slowed (Italy) down," he added.
Conte said his coalition government was preparing a slew of reforms to simplify bureaucracy, push digital investments and green energy, improve education, support the poorest and bring more women into the workforce.
Italy's government expects the national economy to contract by at least eight percent this year. The country is among the worst-hit by the coronavirus in Europe, having reported more than 236,000 cases and more than 34,000 deaths.
Addressing Italian policymakers at the congress via video-link, European Commission president Ursula von der Leyen said Italy must deliver planned reforms to access money from EU funds to help pull the country out of its coronavirus-induced slump.
Conte has repeatedly urged the European Union to launch the bonds to help fund the response to the coronavirus outbreak, saying failure to tackle the emergency would be a "tragic mistake" for the bloc.
"As we invest to shape the economy of the future, we must also work on ambitious reforms... Reforms will lead to recovery. And reforms need your leadership and ownership," von der Leyen said.
Italy has been replete with widespread dismay over EU'sslowresponse tothe country's appeals for help. The issuance of the "recovery bonds" was the main bone of contention. Nine countries, including Italy, France and Spain, have called for common debt, but conservative leaders in wealthy states such as Germany, the Netherlands and Austria have so far recoiled at the idea of issuing bonds to highly indebted nations such as Italy.
But Von der Leyen seems determined to help these countries recover after being ravaged by the coronavirus, recognizing the faults that the EU as a whole may have made, by not being united in facing the pandemic.
The Commission has proposed a 750-billion euro recovery fund to help kickstart growth on the continent, which will be debated by EU leaders next week.
Italy is set to be the largest beneficiary, based on the Commission's proposed criteria for distributing the cash, expecting some 170 billion euros from the new fund.
Von der Leyen said that "with the right reforms," Italy can make the most of the EU funds, pointing to promises made by Conte to cut red tape, reform the country's tax system and deliver a more effective judicial system.
The EU also wants guarantees that countries will spend EU money in line with the bloc's priorities to shift to a greener economy and improve digital infrastructure.
(With input from Reuters)
(Cover image: Italian Prime Minister Giuseppe Conte speaks during a conference. /Reuters)
