Conte faces new lockdown criticism as Italy reopens

Bloomberg

Prime Minister Giuseppe Conte is facing a growing revolt by Italian business and political rivals against his strategy for ending
a nationwide lockdown that’s being eased for the first time on Monday.
Criticism of Conte’s recovery plans and anger among small businesses left out of the first phase of easing are percolating after almost two months of
restrictions that hammered an already recession-bound economy. Pressure to speed up reopening is likely to increase after new deaths and infections blamed on the virus fell to the lowest since the shutdown began on March 10.
Conte, a law professor who took office in 2018 during a populist rebellion against Italy’s political establishment, insisted that the governing coalition is solid. He pushed back against widespread criticism that he’s been excessively cautious.
“There is disappointment among many economic operators,” Conte told La Stampa newspaper. “I understand them. But to restart the economic cycle of goods and services that are less essential, we need customers to feel safe and protected.”
That’s just one front for Conte. Former Italian premier Matteo Renzi, who leads a junior coalition party, renewed his threat to withdraw support for the government if Conte fails to address the economic fallout, according to an interview with Corriere della Sera. The euro area’s third-largest economy shrank 4.7% in the first quarter, the biggest drop since the series started in 1995, and figures published on Monday by IHS Markit showed manufacturing in Italy shrank at the fastest pace since the series began in 1997. Demand also plunged, and factories cut jobs at the fastest pace since 2009.
With Italy still in the throes of Europe’s deadliest coronavirus outbreak, more than 4 million people are cleared to return to work on Monday. The reopening includes icons of Italian industry such as Ferrari’s supercar factory in the town of Maranello and nearby competitor Lamborghini. Restaurants can’t return to normal until the end of May, though eateries can start offering take-out from Monday.
Retailers and owners of small businesses rallied against the government’s policy in several cities last week. In Milan, several thousand operators of restaurants, barber shops and other small businesses handed their store keys to local officials to protest insufficient government aid and being left out of the initial reopening.
The premier has come under fire from coalition allies and companies for excessive caution, a lack of clarity on reviving the economy and occasionally confusing rules on social distancing. Plans for an additional 55 billion euros ($60 billion) in emergency spending have been held up for weeks in his cabinet.