Banks have been invited not to distribute dividends, not to repurchase their own shares, and to be particularly prudent in paying the variable parts of remuneration to executives. Thanks to these measures, Italy’s banks can count on further capital for continuing to finance the economy and dealing with any losses that might arise on loans.
Europe’s institutions have made the use of structural and investment funds and the rules on State aid more flexible and have activated the general escape clause of the Stability and Growth Pact, which permits temporary deviations from public finance objectives. Large-scale expansionary budget measures have been launched at national level.