Virus-hit Italy may get EU reprieve over debt

Italy could get "flexibility" from the EU over its heavy debt load because of the coronavirus crisis it is facing, the bloc's economic affairs commissioner suggested Wednesday.

Under the EU's stability and growth pact, "There are flexibility clauses that apply in circumstances deemed exceptional," the commissioner, Paolo Gentiloni, told a media conference.

He was responding to statements from Rome asking the European Commission to ease up on Italy over its worrisome public debt mountain – which in 2018 totaled 135 percent of gross domestic output – because of its coronavirus outbreak.

Italy is the EU country that has been hit hardest by the virus, registering 12 deaths and more than 300 cases of infection.

It has quarantined several villages near its business hub of Milan and concerns are mounting that the crisis could damage the country's already fragile economy.

Before the outbreak in Italy, the European Commission had been pressing Rome to reduce its debt.

But the comment from Gentiloni – a former Italian prime minister – hinted at a reprieve for Italy, and possibly other EU countries confronted with the spreading virus.

Gentiloni noted that Rome had already received such flexibility several years ago when it coped with an earthquake.

(AFP)