Italy says lockdown aimed at saving economy from virus

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Italy says lockdown aimed at saving economy from virus
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“A temporary downturn in some sectors or areas of the country is preferable to a longer crisis that could spread to the whole economy via demand and supply effects.”

But the Italian Stock Exchange — propelled by broader declines linked to the oil market’s collapse — took little comfort from the government’s move, falling almost 10 percent by the early afternoon.

Italian Prime Minister Giuseppe Conte gloomily cited the wartime firesides chats of Britain’s Winston Churchill as evidence that great nations persevere when the going gets tough. “Support measures will be adequate to the difficult circumstances and aimed at preventing lasting damage to the supply side of the Italian economy and permanent employment losses,” the Italian economy and finance ministry said.

Schmieding also questioned whether the Italian lockdown — seemingly less restrictive and less punitively enforced than the one-China imposed on Wuhan — would actually work.

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