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Conte pulls the emergency brake – now Italy is completely shut down

All industrial companies must close, too, except the strategic ones. The number of coronavirus infections continues to increase.

The supply of medication is maintained.

Emanuele Cremaschi / Getty Images Europe

Italy’s Prime Minister Giuseppe Conte has ordered that because of the coronavirus epidemic, all companies, including all industrial plants in Italy, must close by April 3rd. Only strategic sectors are excluded. The government always wanted to avoid such a complete shutdown of the economy, but in view of the ever increasing number of new infections, Conte had to force himself to take this step. On Saturday evening, 6557 infections were officially reported, more than ever before. The greater Milan area, Italy’s industrial focus, continues to be affected.

The number of new cases in Italy continues to increase

New, confirmed coronavirus cases per day

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The move must have been difficult for Conte for two reasons. On the one hand, the loss of production in the factories means a further step towards a severe recession. The current effect is that goods are now not manufactured and delivered for two weeks. However, entrepreneurs also fear a long-term effect: they could lose customers who are now looking for other suppliers. That would mean a long-term decline in orders.

On the other hand, Conte has now had to agree with right-wing populist Matteo Salvini, who – together with the regional president of Lombardy, Attilio Fontana – has been demanding for weeks: “Close everything and then start again.” The fight against the virus is also carried out in Italy as a violent ideological and party struggle left against right. That doesn’t make decision-making easier, and correcting wrong decisions may be difficult or delayed – without the constant fire from the right, Conte might have pulled the emergency brake earlier.

The closure of the factories became inevitable because the maintenance of the operations apparently promotes the spread of the corona virus. In the workshops, the minimum distance of one meter between workers should be maintained, but it is doubtful whether it is really always and everywhere observed. And above all, there is still a considerable risk of infection in public transport when people drive to work and home, even if there are only a few passengers left.

From the almost complete cessation of economic life in Italy, only those sectors are excluded that are essential for the limited emergency operation of the country: healthcare and pharmacy, energy, logistics and transport, agriculture and food industry, banking and postal services. The economy can continue to work wherever the work can be done in the home office, albeit with a number of restrictions.

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