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Italy’s government is working on a spending package that won’t require revising the budget to expand the deficit, people familiar with the matter said.

The measures could be announced as early as next week and would bring targeted relief to sectors hit by the surge in Covid-19 infections, such as tourism, the people said, asking not to be named discussing confidential plans. The package will also be used to refinance furlough programs for workers hit by the pandemic.

To fund those plans, Prime Minister Mario Draghi’s government is leaning toward relying on existing resources, currently estimated at around 2 billion euros ($2.3 billion), without asking parliament to authorize fresh borrowing, the people said. 

This would put Draghi at odds with the some of the parties of his fractious majority, which have been pushing for more spending. League leader Matteo Salvini on Wednesday called for a “sizable” expansion of the deficit to shield households from higher energy bills. 

Measures to cushion poorer families from the impact of surging power prices, which can’t simply be covered by shifting existing resources, may be introduced at a later date, potentially after the election of a new Italian president. 

La Stampa reported earlier this month that the extra spending -- including support on energy -- might amount to as much as 20 billion euros. 

Spokespeople for Draghi’s office and the finance ministry declined to comment. 

Italy’s government is entering a delicate phase as lawmakers prepare to elect a new president from Jan. 24. Draghi himself is considered a leading candidate for the post, and this is seen as weakening his position vis-a-vis the parties backing his premiership.

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