Financial stability must also be put at the heart of

Financial stability must also be put at the heart of people. This includes revision of
budgetary policies where health is to go hand and hand, social welfare and the possibility of
breaking the Covid-19 protocol in the hunt for food if the population cannot be guaranteed
their financial security during this pandemic. It would suggest zero expenditure on existing
prevention programs. As a consequence, diverted discretionary funds to health and social
protection would mean that the war against the epidemic's expansion is carried out in a
manner that maintains residents' financial well-being at the forefront. Wage subsidies are still
required, particularly for those employed directly affected by the pandemic and consequently
losing their employment as a result of the epidemic.
The effect of Covid 19 on trade and travel demonstrated the need for Italy and
Europeans to invest and maintain local factories (to generate the country not only
employment but also essential products to better cope with the shocks associated with closing
foreign borders).

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6.4. Policy Implications
Firstly, before the COVID-19 crisis does not affect the scale of the financial shock
faced by the EU countries as a result of the pandemic, the level of public debt suggests the
active ECB pandemic emergency acquisition scheme, which opened in March 2020. The
willingness of policymakers to take budgetary steps to curb the COVID-19 crisis did not
seem to have been affected, except in the eurozone, where, after the financial crash a decade
ago, many nations were cut off from exchanges. While PEPP is a transitional strategy, the
ECB's governing council stated before concluding that the crisis was over. At all events, not
before the end of June 2021, that net asset sales under the PEPP will be terminated. Six
hundred billion euros expanded the PEPP envelope in June 2020 to a total of 1350 billion
euros. This should be enough to guarantee that policymakers can support their economies
during the recession. Still, a rise will and should not be avoided if the crisis takes a worsening
turn.
Second, the COVID19 crisis has severely hit all EU nations, not just euro area
participants. According to our estimates, the EU countries' overall GDP loss in 2020 would be
equivalent to 10%, with no loss of less than 6%. As a consequence, EU leaders were right in
agreeing to establish a fund for the rehabilitation of all EU countries. Third, although
financial shock affects all EU countries, some were affected more than others. Any countries
in the south will experience over 12 percent GDP loss in 2020, while those in the north will
see 'just' about 7 percent of GDP losses. Therefore, it was true that EU leaders accepted that
certain countries could aid rather than others with the Recovery and Resilience Fund (RRF)
and that some southerners would prosper the most.