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On Wednesday, Italy imposed sweeping nationwide restrictions on travel and public life, in a desperate attempt to contain the coronavirus outbreak that looks set to plunge the world's eighth largest economy into a steep recession. The measures announced include travel restrictions on 60 million residents, a ban on public events, the closure of schools, cinemas, museums and gyms, restaurants, bars and shops. The Italian government took action as the number of deaths caused by coronavirus had then reached 827 (now 1,266) and infections topped 14,000 (now 17,660).

The restrictions are in place until at least April 3. Jack Allen-Reynolds, senior Europe economist at Capital Economics, told CNN that Italy's economy will contract sharply in the first half of the year – even if the restrictions are lifted at the end of April, with GDP declining about 2 percent for all of 2020. The hit to GDP will be "much bigger" if the restrictions are extended until the end of June, he added. He said: "This does not take into account the impact on the banking sector.

EU coronavirus snub: Brussels fines Italy £7MILLION despite outbreak

Italy is in lockdown due to the coronavirus outbreak

"The spillovers from the impact of the virus on other parts of the eurozone, or the potential supply-chain disruption if the virus really takes off in Germany and other key trade partners." Responding to criticism that the EU has been slow to help, president of the European Commission Ursula von der Leyen made a speech on Wednesday, claiming Brussels will stand with Italy. However, in the midst of what has been dubbed the worst health and economic crisis of our generation, the European Court of Justice – the body that has the task of ensuring compliance with European law – fined the boot-shaped country £6.8million for not having fully recovered the state aid granted to the Sardinian hotel sector in 2008. Aid deemed illegitimate because it "causes distortions of the principle of competition within EU law". JUST IN: Budget 2020 secures first step to Cummings' post-Brexit vision of UK

EU chief Ursula von der Leyen

The European Court of Justice

Italian President Sergio Mattarella

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