Public finances will be hit hard
If the current measures, such as closed stores and restaurants, are in place for one month, a negative impact on public finances would be €1.9bn, or 2% of GDP. If they are in place for three months, the impact will be €5.2bn (5.9% of GDP), predicts RRZ. Tax and payroll levy revenue will fall and spending on social benefits and healthcare will rise. EU money could compensate for the shortfall―the union has already allocated €2.5bn and promised flexible re-allocation of existing EU funds.
