Distancing until vaccine says Conte (2)

(ANSA) - Rome, April 21 - Social distancing and facemasks will be needed in phase two of the coronavirus emergency until a vaccine is ready for use, Premier Giuseppe Conte said Tuesday, while the possible activation of the European Stability Mechanism bailout fund to help economic recovery would be up to the Italian parliament.
    Conte said Thursday's European Union summit on the economic response to the emergency "won't give the last word but will have to issue a clear direction" on the instruments to combat the shock generated by the virus.
    A contact tracing app will be voluntary and without penalization, Conte added in briefing the Senate on phase two.
    The premier said "we will reactivate the country's economic engine with a structured programme" and said that social distancing norms would be "modified" in phase two.
    Conte stressed that reopening activities must be achieved according to a "homogeneous" programme, implemented on a national basis despite differences in regional governors' requests.
    "Phase two will be complex and haste would wreak damaged," he added.
    Conte said a new decree to help businesses and the unemployed would be worth no less than 50 billion euros, bringing the total under two decrees to "no less than 75 billion euros".
    The premier said "the IMF estimates negative growth of 9.1% (this year) so we must boost our economic response".
    He said "there is the risk of new poverty, so we must have more incisive help" for those who have little or no income because of the virus lockdown.
    Conte said he was "fully aware" that parliament must be involved in decision-making, after being criticized for announcing policy on social media.
    He said "a responsible opposition will find me open to their proposals".
    On the European Union, Conte said that "if it repeats the mistakes of 2008, the EU project is at risk".
    Conte has called for a unified European response to the emergency by issuing euro bonds, or 'coronabonds'.
    This has been rejected by northern European countries like Germany and the Netherlands, who argue that the European Stability Mechanism (ESM) bailout fund is enough.
    The topic will top the agenda at an EU summit on Thursday.
    Spain has proposed perpetual bonds but northern deficit hawks says southern European countries must be content with drawing on the ESM with fewer strings attached than in the 2011 sovereign debt crisis.
    Conte told the Senate: "on the now over-famous ESM a debate has been fueled in the last few weeks that risks dividing Italy into opposing fan bases," referring to divisions within government and with the centre-right opposition.
    He said the intention was to proceed "with the utmost caution".
    Parliament would have the last word on activating the ESM, he said.
    Conte has previously said he would not activate the bailout fund.
    The premier told the Senate Tuesday that countries like Spain have shown interest in using the ESM with fewer strings attached, and "refusing this new line of credit would mean hurting these countries that are flanking us in the battle" in the EU.
    Conte called for an EU 'Recovery Fund' in line with EU treaties, even if it is linked to the EU budget.
    He said Italy supported France and Spain's proposals on this.
    Conte said a recovery fund with common debt was essential.
    He said that Italy would have to wait for the details of the new credit line to be released in order to understand whether the Pandemic Crisis Support will "effectively be without conditions".
    In the negotiations with the EU, Conte said, "I won't accept a shabby compromise. We're not faced with a zero-sum negotiation. Here, either we all win or we all lose".