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the small Lombardy town of 15,000 inhabitants and nine neighboring municipalities
suddenly became Europe's first region to go into lockdown during the Covid-19 pandemic
People didn't pay much attention to the first signs
The old lady who came coughing to the emergency room
but who was reassured by the staff before being sent home with an encouraging smile
The ever-increasing number of people with some kind of flu who flocked to the pharmacy
A small article in the local newspaper about a lung disease spreading in the region and about which little was known
The ambulance sirens people began to hear more often than usual at the bar
and the increased comings and goings near the town's funeral parlor
Parents rushing to school to get their children
then running to supermarkets to stock up on supplies
occasionally shattered by the sirens of ambulances
invisible to those confined inside their homes but made all the more painful now that they knew why they echoed in the deserted city
This is how Codogno's residents remember those crazy days in the winter of 2020 when the unthinkable broke the ordinariness of this provincial town
residents often use "war" to describe what happened: "a war."
the 50,000 or so residents of this small Lombardy town and nine neighboring communes were the first Europeans to slip into an unheard-of condition that would soon become the norm for the rest of the continent
and which in Italy was called by the English word "lockdown." Codogno is where the country's first case of Covid-19 infection was recorded
What remains is a lot of grief (at least 200 dead)
memories that bring back tears and three pieces of steel erected in front of the local Red Cross headquarters
the monument erected in memory of the victims of the pandemic and those who survived them
On its base are inscribed three principles that sound like a motto: "resilience
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which had its official launch recently in Grosseto
continues its journey with a productive day of training beginning at 2:30 pm followed by an exhibition game against Serie A Codogno at 5 pm on Wednesday
National Baseball Hall of Famer and Team Italy Elite manager Mike Piazza will be assisted by coaches Gianguido Poma
and delegation manager Riccardo Soglia will also be on hand to lend their assistance
The following players have been selected to participate:
(Photo of Team Italy pitcher Luca Capellano in action during a 2023 exhibition game in Bologna by PhotoBass)
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Two years have passed since the night in February when Europe’s first coronavirus case was confirmed at a hospital in the small Italian town of Codogno.
dozens of positive cases were detected in the area
located 50 kilometers (31 miles) south of Milan
along with those of 10 neighboring towns were the first to be locked down
Nearly 50,000 people were prohibited from venturing outside the so-called “zona rossa” (red zone) and were only allowed outdoors to go to the pharmacy to purchase medicine or to food shops
it is still difficult to recall those moments
I received a call from the prefect of Lodi announcing the first case of the coronavirus in the city hospital,” said Codogno mayor Francesco Passerini
Then I spent all night talking on the phone with top regional and national health authorities
It was the most nefarious time from all points of view our community experienced
Swab tests were reserved for those who were hospitalized
The positive rate was 100%,” said Passerini
“In the nearly three months from Feb
the date on which the holding of funerals started again
156 people died -- the highest number of deaths ever registered
We had to use churches as a morgue to store coffins.”
at that time the head of the emergency department and intensive care units (ICUs) at the hospitals in Lodi and Codogno recalled these moments
“When a 38-year-old patient -- Mattia Maestri -- showed up at the hospital with severe bilateral pneumonitis
we started to identify the cause of that illness
So we immediately got the point that we were facing a very delicate and unusual situation,” said Storti
“There was a huge gap between the number of patients with severe clinical conditions and the number of physicians working at the hospital in Codogno
five more patients showed up presenting huge pneumonitis
The three main hospitals in the area -- Lodi
We hospitalized patients with critical care dependency in waves.”
After a pick-up in cases was registered in January this year
the number of people testing positive for COVID-19 in the whole area is going down
The strength of the fourth wave is weakening
32,000 cases have been detected and 110 people have died
but the number of daily cases is falling day by day
only 115 people tested positive for the virus
“The vaccination campaign was very successful in Codogno since 87% of the population of our community has been double jabbed
it would have come to have such a reduced impact from the contagion this year?” said Passerini
“80% of the patients who recovered in our ICU are not vaccinated
“The circulation of the virus is now lower than a few weeks ago
But the fact that a very consistent part of the population is vaccinated will be important to contain the virus’s consequences in the near future.”
Italy’s government has recently relaxed health measures and the people of Codogno have finally returned to the streets
shops are open to all customers displaying their Green Pass at the door
and the weekly outdoor market is full of people purchasing all sorts of goods
Passerini is convinced that his community can celebrate the end of COVID
“I can’t wait to organize a town party at which all members of our community can gather and celebrate together the liberation from COVID
hugging each other as much as they can without wearing masks
The municipal council has already allocated the budget.”
small Italian town recalls moments when first case of COVID-19 in Europe was discovered
Italy (AP) — The number of people in Italy infected with the new virus from China more than quadrupled Friday due to an emerging cluster of cases in the country’s north that prompted officials to order schools
Many of the 14 new cases represented the first infections in Italy acquired through secondary contagion and brought the country’s total to 17
The cluster was located in a handful of tiny towns southeast of Milan in the Lombardy region
said Lombardy regional health chief Giulio Gallera
“This was foreseeable even if we hoped it wouldn’t have happened,” Gallera said
The first to fall ill was a 38-year-old Italian who met with someone who had returned from China on Jan
21 without presenting any symptoms of the new virus
That person was being kept in isolation and appears to present antibodies to the virus
The 38-year-old is now hospitalized in critical condition
Three patients at the hospital in Codogno where he went with flu-like symptoms on Feb
who frequented the same cafe as the runner’s father
as well as on 120 people he worked with in the research and development branch of Unilever in Casalpusterlengo
Word of the contagion sparked fears throughout the region
particularly given the closure of the emergency room at the Codogno hospital
“We are old and we are very concerned,” said 76-year-old Codogno resident Carmelo Falcone
Italian Health Minister Roberto Speranza said Italy is now seeing the same sort of “cluster” of cases that Germany and France have seen
He signed an ordinance with Lombardy’s regional president outlining measures to contain the cluster to the 10 towns so far affected: Codogno
which have between 1,000-15,000 residents each
are located around 60 kilometers (37 miles) southeast of Milan
Lombardy’s capital and Italy’s business center
and other recreational activities throughout the region
He defended the precautionary measures Italy took previously
noting that Italy remains the lone European country to have barred flights to and from China
“We had the highest measures in Europe,” he said
The health ministry ordered anyone who came into direct contact with the victims to be quarantined for 14 days
And it recommended others in the region stay home
was working to identify military buildings
hotels or other structures that could serve as isolation wards if necessary
it has been demonstrated that this system (of self-isolation) helps in a substantial way to block the spread,” Lombardy regional president Attilio Fontana said
“But we must not let ourselves be overcome by panic.”
The Codogno hospital closed its emergency room
and staff were seen wearing masks as movers brought in new beds and furniture as the quarantine got under way
Rome’s infectious disease hospital is currently caring for three other people who were infected weeks ago
including a Chinese couple from hard-hit Wuhan and an Italian who is now testing “persistently negative” for the virus after two weeks of anti-viral treatment
Italians were having a hard time finding protective face masks
A sampling of Milan pharmacies reported selling out out weeks ago
as did a pharmacist in Codogno who said Italy had been sending masks to China for weeks
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Subscribe to Here's the Deal with Lisa Desjardins
Intensivist and anaesthesiologist in Codogno
I diagnosed the first COVID-19 patient in Italy
He was a 38-year-old healthy athlete with no comorbidities
He arrived at the emergency room in Codogno on Saturday 18 February with fever
He was given antibiotics but refused to stay at the hospital
He returned that evening because he couldn’t breathe and had a very high fever
He was admitted to internal medicine and given antibiotics and an oxygen mask
they called me because he couldn’t breathe
He was having a CT scan: his lungs looked terrible and he had an atypical pneumonia
I decided to take him to my intensive care ward and intubate him
There I talked with his wife – it was about 11:30 am – who said that two weeks ago he had attended a dinner with a colleague who
I suspected a coronavirus infection and immediately called my chief to request a nasopharyngeal swab
The patient did not meet the national criteria for coronavirus testing but because of his severe situation
my decision was to quarantine the patient because the risk of not doing so was too high
and we used PPE straight away; this quick reaction is why we were not infected
I called the chief of the hospital who declared it a crisis situation
The chief in Lombardy was contacted as were the politicians
Codogno hospital was put in lockdown and emergencies were sent to Lodi Hospital
I worked in quarantine for 36 hours because I did not want other doctors to be exposed
self-isolated and waited for my test results
I had no symptoms and the results came back negative
I returned to the hospital and have been working every day since then
I have never experienced anything like this before
The work is relentless and long: up to 14 hours per day with no time to eat or drink
There is no time to lose so we don’t want to stop
But maybe once or twice a day we go for a drink of water
then reversing the process when you get back
We also work with the danger of being infected
When you go home you continue to think about what you saw in the hospital
You are afraid that this situation will never end
You worry about everyone’s safety: your patients
There is no break from it; you can’t relax
we started with the patient’s family and everyone who had been in contact with him
we tested patients who had been near him in the emergency room and the ward
Now we only test people with symptoms because the numbers are too high to check everyone
Mass testing slows down results for people who really need them
and the swab gives a lot of false negatives – possibly around 20%
A serum test with immunoglobulin is more sensitive overall but it does not detect the infection in the first few days
Another possibility is lower respiratory tract aspiration but it’s invasive and cannot be performed in patients who are not intubated
We reorganised our hospital and tripled our intensive care beds
The striking thing about this disease is the huge numbers of patients
We have too many patients to hospitalise them all
so we treat the milder cases at home using telemedicine
A lot of people are very sick and some of them do not overcome their serious respiratory crisis
Families can’t come to the hospital to be with loved ones
Access more COVID-19 resources and stories from the front lines
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a small town in the northwestern region of Lodi
people have been confined to their houses for more than six weeks
But many aren’t anxious to see life go back to normal — at least
Codogno was a town just like any other in the region
pastel-colored houses and surrounding fields
when the community of 16,000 people suddenly appeared on every front page in Europe as ground zero of Italy’s rapidly exploding outbreak — and one of the first towns on the Continent to be fully locked down
The transition from normal to coronavirus lockdown happened almost overnight
a 38-year-old local man showed up at the hospital in a severe condition and tested positive for the virus
there were 40 new infections and two people had died
Codogno and 10 nearby municipalities were shut down and formed part of a so-called red zone
“The citizens were in shock,” Sara Boschiroli
a local psychologist who started a hotline to support residents
The rapid lockdown seems to have had a positive effect: The number of new cases is close to zero and pressure on hospitals has eased
Italy soon became a case study for researchers in the rest of Europe and the United States trying to predict how the virus would affect their communities
authorities are studying Codogno’s trajectory for clues on how to adapt their response in other regions
which are some 15 days behind: How have lockdown measures affected the virus’s spread
and how are people reacting to the strict restrictions
The first question is a little easier to answer than the second
The rapid lockdown seems to have had a positive effect: The number of new cases is close to zero and pressure on hospitals has eased — unlike in some municipalities in the province of Bergamo
which also saw serious outbreaks but in an attempt to protect the economy were not turned into red zones during the initial stages of the epidemic
we are no longer in full emergency,” Stefano Paglia
the head of emergency services for Lodi and Codogno
said in an interview with the newspaper Il Giorno
only about 30 people have come to the emergency room for symptoms attributable to COVID-19
Just three weeks ago there were between 100 and 120 a day.”
But while residents are relieved to be on the other side of the curve
“We have been in lockdown for 44 days
we are tired and above all we do not know when it will end,” said Monica Moretti
a mother of two who was laid off from her job in a lawyer’s office at the start of the crisis
but this is a conscious effort that I make to save others’ lives and my own
My biggest fear is that another outbreak will explode and that our sacrifice will have been in vain.”
many in Codogno are worried that lifting restrictions will spark another outbreak
The road sign of the small Italian town of Codogno | Miguel Medina/AFP via Getty Images
The town’s official Facebook page is full of posts from people calling for even stricter measures
People frequently call out their neighbors on social media for going on a run or taking their children to the park
activities that are not allowed under the lockdown measures
Some even report these types of infringements to the police
The prevailing feeling in the town is of restlessness and anxiety
fear that the curve has only flattened temporarily outweighs the desire for freedom
“My patients are anxious and they feel that their lives are on hold,” said Boschiroli
but “they fear that the others will infect them.”
“You get used to being separated,” she added
Some fear it won’t be possible to return to “normal” life at all
we thought that in a month it would all be over
the more I realize that it will be a long road,” said Stefano Oltolini
a Codogno resident who works for NGO Soleterre
“I feel we won’t get life back as we knew it.”
Oltolini used to travel with his family all over Europe on low-cost flights
but the idea of not being able to do it makes me sad — not to travel means not to widen your mental boundaries.” The lockdown
Other parts of Italy are showing similarly encouraging signs that the peak of the epidemic is either nearing or already behind them
are anxious about how and when restrictions will ease up
are bearing the brunt of the emergency measures and fear for the future of their ventures
like some local supermarkets that have organized home deliveries,” said Laura Gozzini
a journalist who has been following COVID-19 up close for Il Cittadino
and some have stopped production for a month and a half.”
“the €600 a month the government has allocated is ridiculous
there is a great sense of responsibility.”
The national government left Codogno in the lurch
but they did not listen to us,” said Passerini
which is in opposition to Italy’s ruling coalition
distribute meals to the elderly and shop for those who cannot afford it.”
Residents of Codogno at a local supermarket | Miguel Medina/AFP via Getty Images
“They demonstrated a respect for the rules that is moving.”
Passerini — who said he still wanders the deserted streets of his town with a megaphone reminding people to stay home — has fielded calls from officials hoping to draw lessons from his administration’s handling of the situation
The number of intensive care and emergency room admissions is falling
even those who have been under lockdown the longest are reluctant to move forward too quickly
Codogno’s residents are taking stock of the toll the virus has taken on their community
“Right now we are a wounded city that mourns its dead,” said Gozzini
“We have lost a generation of elderly people who made our history — like Giuseppe Vecchietti
the founder of the local civil protection agency
Codogno recorded 124 deaths in the month after its first confirmed case
Confinement measures meant he couldn’t be with them when they died
or hold funerals with those they left behind
The only option is still to pray alone or in small groups at the cemetery
The deserted railway station in Codogno | Miguel Medina/AFP via Getty Images
He recalled visiting a church in Codogno where 15 to 20 coffins were awaiting cremation
he said has noticed that his community seems more peaceful and serene than at the start of the outbreak
In his daily radio broadcasts and weekly live stream on Sundays
he relays the same message: “To all the faithful I say: Have trust
Many of the first victims of coronavirus were those charged with responding to it.
Getting ill made the gaps in Italy’s health care system painfully clear.
The Italian town of Codogno, and Lombardy region, has become synonymous with tragedy.
Case to fatality ratio is worrying experts, who say political infighting and underfunded hospitals are keeping death rates high.
Additional reporting by Emily Roe and Philip Pullella in Rome
Writing by Philip Pullella; Editing by Janet Lawrence
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Codogno will mark one year since it recorded the first locally acquired case of COVID-19 in Italy
in what became the first major outbreak in Europe
The virus tore through the wider Lombardy region
marking Italy as the new epicentre of the global pandemic that has now claimed more than two million lives -- including almost 100,000 in Italy
The surge in cases took everyone by surprise
we saw what we usually had in a year," he told AFP
Codazzi saw the intensity of the virus on display after Friday
February 21 -- when a 38-year-old man known as "Patient 1" was identified at the city's hospital after a doctor broke protocol to test him for coronavirus
there were already bodies lined up outside the cemetery for burial
talk of COVID-19 centres on shuttered businesses
rent to pay and the umpteenth restriction on normal life
Yet few can hear the sound of a siren without a pang
the third-generation owner of the Central Bar on the main plaza
early days of the lockdown imposed on Codogno and 10 other northern communities after the first case was identified
immediately followed by the first two confirmed coronavirus deaths in Italy
one of them a 77-year-old woman outside Codogno
"I remember how silent it was," said Cavalli
"Every three minutes you heard the sound of an ambulance
with 154 deaths in March versus 49 in the same period a year earlier
"They couldn't keep up," Passerini said of the cemetery workers
who were eventually reinforced by the civil protection unit
Caskets awaiting burial were stored in a shuttered church
the cemetery was shut to the public and funeral notices were printed without dates to discourage potential mourners from breaking the quarantine to pay their respects
The daily coffins awaiting custodian Codazzi frequently brought an unwelcome shock: "I said
Codogno's Red Cross unit - with experience in Iraq and beyond - was zigzagging the district
with almost 500 ambulance trips in March alone
we don't know what we're going to find," said the head of emergency services
family doctor Andrea Lozzi was working day and night to keep his patients out of the hospital
Lozzi - whose name locals evoke with reverence for his tireless work - declines all interviews
explaining to AFP: "You have to put your hands into your work
But the doctor's Facebook page paints a picture of how Codogno slowly managed to emerge from the worst
Today I could finally say to four of my patients
Lozzi said he believed the virus had begun to wane in Codogno
where locals wearing masks whizz around on bicycles
making the most of the lifting of the lockdown
cafes and hairdressers across Italy were allowed to open from Monday
as the country slowly emerges from an economically-crippling national shutdown and a pandemic that has killed over 32,000 people there
red and pink buildings that face onto Codogno's main square
young Italians could be seen enjoying iced coffees while bells summoned people to mass at the large red-brick church
"Discovering that the virus we'd heard so much about in China was here had a huge psychological impact," lawyer Maria Luisa Brizzolari
told AFP as she looked back at the moment their lives changed
The small in northern Italy was home to a 38-year-old man
who came to be dubbed Italy's "patient one"
The otherwise-healthy athlete turned up in Codogno hospital's emergency room on February 18 suffering a fever
His pregnant wife also had it and his father would later die of it
A flurry of other cases emerged in people who had frequented the hospital or local cafes
Maestri had not travelled and still doesn't know where he picked up the virus
On February 21 the government designated Codogno a so-called red zone and ordered it shuttered
followed by nine other towns across Lombardy and the Veneto
"It was a more ferocious war than the ones you fight
where you can see your enemy," said pensioner Giancarlo Barcelesi
"This time the enemy was invisible," he said
Religious celebrations were allowed to begin again this week
said his parishioners were finally beginning to breathe more easily
because it would be forever linked in people's minds to the virus
"I hear people want to come and see where it happened
but Codogno is just a normal town like any other," she added
disagreed and pointed out that the town had suffered a longer lockdown than the rest of Italy
"Codogno will always be linked to the coronavirus
but that could also be a way to remember the strength of the local population," she said
Others were worried that the easing of strict anti-infection measures would allow the virus to begin to spread again
"Everyone's afraid of having to go back into lockdown
of it all happening again," said bartender Laura Sbardi
Shopkeeper Cesare Gambazza was one of many who said people seemed "too relaxed"
a 54-year-old nurse who worked with coronavirus patients earlier in the pandemic
It was better during the lockdown," she said
Residents of Lombardy describe deserted streets and panic after seven virus deaths
People living in Italian towns under lockdown described a “surreal” and “fearful” atmosphere as a seventh person died of coronavirus on Monday and the number of confirmed cases rose to 229
Eleven towns across Lombardy, where the outbreak emerged suddenly on Friday, and Veneto have been quarantined for at least the next 15 days as Italian authorities scramble to contain the worst outbreak of the virus in Europe and the third worst in the world
the overwhelming majority were elderly people who had also been suffering from other health issues
The latest victim was an 80-year-old man in Milan
About 50,000 residents in the towns under lockdown have been told to stay at home and avoid social contact
shops and businesses – apart from chemists and some supermarkets – have been closed
Residents are allowed to manoeuvre within the “red zone”
for example going from one quarantined town to another to reach a supermarket that is permitted to stay open
but they are not allowed to leave the quarantined territory
People are also banned from entering the area
unless they are health workers or those delivering essential supplies
The centre of the outbreak is Codogno, the Lombardy town of almost 16,000 people where the first locally transmitted case in Italy
View image in fullscreenTwo reporters stand in front of the San Biagio church in Codogno
Photograph: Luca Bruno/AP“It’s a surreal situation,” Enrico Bianchi
“People are locked in their houses for fear of going out
It is really strange to go around the town
said: “We’re experiencing a bit of a panic
Supermarkets have been stormed since last Friday
My daughter was in contact with some friends of the first person to be infected in Codogno
The first victim of coronavirus was Adriano Trevisan
a 77-year-old from the Veneto town of Vo’ Euganeo
who died in hospital while being treated for pneumonia
One resident of the town of about 3,000 people
all we can do is stay at home and wait and wait
The 38-year-year old who was first identified as being infected is in intensive care at a hospital in Codogno
He lives in nearby Castiglione d’Adda and plays in an amateur football team in Somaglia
Both towns are under lockdown and his teammates all underwent tests
“We are three days into the quarantine and there is a rigid system in place,” said Angelo Caperdoni
“It was difficult to contain the panic at first
especially as a lot of false news was circulating on social media that people believed to be true
There is still panic regarding food provisions
Many people went to Codogno yesterday to try and stock up.”
said the town’s two mini-markets had been “besieged”
“The important thing is to maintain calm,” he said
“People have been racing to the supermarket to buy 20kg of pasta or 30kg of bread
But if the shop is restocked and open for the next few days
The virus has affected seven of Italy’s wealthiest regions: Lombardy
Milan’s stock exchange plunged 4.5% on Monday as the country’s economic engine almost ground to a halt after cases of the illness were confirmed in the city
Schools and universities have been closed across the regions and people have been advised to work from home
More than 3,000 tests for coronavirus have been carried out over the last few days
although authorities are still trying to identity “patient zero” – the person who brought the virus to the region
came down with symptoms after attending a dinner at which there was a colleague who had recently returned from China
“The peak in Italy is partly due to all the tests being done,” said Roberta Siliquini
a former president of Italy’s higher health council
“We have found positive cases in people who probably had few or no symptoms and who may have overcome the virus without even knowing it.”
The Italian government has been criticised for hastily cancelling flights to and from China as
people have been able to fly to other European cities and enter Italy from there
Mattia Maestri waits for the start of a 180-kilometer relay race
whose case confirmed one of the world’s deadliest outbreaks was underway
is taking part in a 180-kilometer relay race as a sign of hope for COVID victims after he himself recovered from weeks in intensive care
was suited up Saturday for the start of the two-day race between Italy’s first two virus hotspots
where Italy’s first official COVID death was recorded the same day
Mattia Maestri adjusts his face mask prior to the start of a 180-kilometer relay race
Mattia Maestri answers reporters’ questions prior to the start of a 180-kilometer relay race
poses for a group photo prior to the start of a 180-kilometer relay race
Runners pose prior to the start of a 180-kilometer relay race
Italy (AP) — Italy’s coronavirus “Patient No
1,” whose case confirmed one of the world’s deadliest outbreaks was underway
is taking part in a 180-kilometer (112-mile) relay race as a sign of hope after he himself recovered from weeks in intensive care
was suited up Saturday for the start of the two-day race between Italy’s first two virus hot spots
where Italy’s first official COVID-19 death was recorded the same day
Maestri said the race was a “beautiful initiative” uniting the two virus-ravaged towns and the hard-hit swath of territory between them
He said he was thrilled to even be alive to participate
“I feel very lucky,” he said at the starting line
Maestri had first gone to the hospital in his hometown of Codogno with flu-like symptoms Feb
He returned the next day after deteriorating and the doctor on duty
decided to test him for the new coronavirus even though doing so went beyond the protocol for testing set by the Health Ministry at the time: Maestri hadn’t traveled to China or been in contact with a known positive case
21 was the first confirmed case of domestic transmission in Italy
evidence that the virus was circulating silently among the local population
Italy would become the epicenter of the outbreak in Europe
where it still has the second-highest number of COVID-19 deaths after Britain
The Italian government immediately quarantined Codogno and 10 nearby towns and imposed a lockdown in Vo’Euganeo
where on the same day as Maestri’s positive result authorities confirmed the first death of someone who tested positive post-mortem
are united today in hope,” said Patrizia Baffi
a Lombardy region councilor who was on hand for the start of Saturday’s race
Maestri spent nearly three weeks in intensive care and weeks more hospitalized during which time his own father died
his wife — who had tested positive but without serious complications — gave birth to their first child
Maestri has since recovered and said Saturday
that he felt well enough to participate in the race
A marathoner and avid soccer player before he got sick
Maestri is taking the final 10-kilometer leg of the relay and is scheduled to cross the finish line in Vo’ on Sunday
Maestri expressed concern about continued surge of infections in Europe — on Saturday Italy added another 1,869 infections and 17 deaths to its official COVID death toll
He urged Italians to observe the three rules of social distancing
face masks and frequent handwashing to keep the virus under control
“I think if we observe those two to three simple rules they have given us
we will continue to see results in Italy,” he said
Maestri still marveled about his recovery — he said the experience was “like a movie” — and how his case became the wake-up call for Europe
and I didn’t even know at the time,” he said of his infection
“I found out only a month later when I got out.”
He said one day he’ll tell his daughter how her father became known as Patient No
But he added: “I still have time to think about it.”
We argued in our previous column (Codogno and Van den Noord 2020a) that a euro area safe asset – swapped against national sovereigns on banks’ and the ECB’s balance sheets – and a centralised fiscal capacity render macroeconomic stabilisation policies much more effective in the face of the outbreak of COVID-19 hitting the economy
This would be the first-best solution in our view
not only for the periphery but also the core
we acknowledge that it may not be politically and technically feasible to adopt it with the urgency required by the current situation
It looks more likely that the member states of the euro area would agree on a package revolving around conditional support of the European Stability Mechanism (ESM) to hard-hit countries
This opens the way for the ECB to launch unlimited purchases of the national debt of countries in distress under the Outright Monetary Transactions (OMT) programme
the current ECB programmes are mostly limited to year-end and a total ticket of €1.1 trillion
we compare three scenarios which we have tried to quantify with our empirically calibrated model for the euro area (Codogno and Van den Noord 2020b)
we assume that all measures that have been announced by the member states and the ECB are implemented
we compare these scenarios with a third scenario in which a safe asset and fiscal capacity at the centre are created
The numerical results reported in Table 1 are surrounded with wide margins of uncertainty
for at least three reasons: (i) we have entered uncharted territory which our model (or any model) may able to capture only to an extent
(ii) the quantification of the policy measures is necessarily crude due to scant information on the fine detail
and (iii) the size and persistence of the corona shock is still ambiguous
that the results give an impression of the direction and orders of magnitude of the effects
Table 1 Absorbing the COVID-19 shock: three scenarios
Note: Per cent or percentage point changes relative to a steady-state without shocks
It comprises a symmetric supply shock of -5% of GDP
and a flight-to-safety shock to core sovereign bonds yields of -300 basis points (bps)
We assume the demand shock to outweigh the supply shock because the latter is expected to be more short-lived (as eventually lockdowns will be lifted
although disruptions may continue for a while)
the demand shock will be more persistent due to the need to restore the unsettled balance sheets in the private sector
In the first scenario (labelled ‘actual policy’ in the table) we assume: (i) fiscal stimulus of 10% of GDP in both the core and the periphery
(ii) guarantees on bank loans entailing a +5% symmetric shock to bank lending broadly in line with the size of the aggregate supply shock
(iii) an effective rate cut of -25 bps by the ECB (the rate on refinancing operations was cut from -0.5% to -0.75%)
(iv) asset purchases by the ECB of 10% of GDP
output collapses -10% in the core and -20% in the periphery
Core yields rise 100 bps as the primary deficit is up 15 percentage points (ppts) of GDP and periphery yields go through the roof by 1,300 bps with the primary deficit soaring 20 ppts
Periphery bank credit is slashed by three-quarters (the number should not be taken literally and should be interpreted to imply default) and drops slightly in the core
we have run the same set of shocks and policies as in the first scenario
but now including OMT purchases by the ECB worth 30% of periphery GDP
That boils down to a shock onto periphery yields of -300 bps
equivalent to the flight-to-safety shock on core yields of -300 bps so that the increase in the spread is eliminated on impact
output now shrinks by ‘only’ about -3½% in the core and -4½% in the periphery
The primary deficits and debt ratios in both economies rise by the order 10-15 ppts
Bank credit remains broadly in check in both economies
This scenario clearly shows how crucial OMT is to keep the spreads in check and prevent financial turmoil that would otherwise reignite the banks-sovereign doom loop in the periphery
we introduce (i) a safe asset which is swapped for national bonds on banks’ and the ECB’s balance sheets (for more details
see Codogno and Van den Noord 2020a); and (ii) a fiscal expansion at the centre of 5% of GDP financed by the issuance of the single safe asset
over and above the national fiscal expansions of 10% of GDP; while (iii) the -25 bps rate cut by the ECB is left in place
The asset purchases (including under OMT) are abandoned
as are the guarantees on bank credit (since the safe asset would take over that role)
the public debt ratios would rise by ‘only’10 ppts
and bank credit would remain at its pre-crisis level
The yield on the safe asset would fall in line with the relevant policy rate change of -25 bps
though it would help to discipline fiscal behaviour in the periphery
A concern expressed by some (Bini Smaghi 2020) is that the creation of a euro area fiscal capacity would involve a massive transfer of sovereignty from the member states to the centre
always be accountable to the Council and would
obtain ‘instrument independence’; for instance
with regard to the maturity structure of bonds to be issued
the purpose of fiscal policy at the center in our proposal – and what makes it distinct from ‘Coronabonds’ proposals – is primarily to rebalalance the policy mix away from monetary policy
without automatically resorting to fiscal tranfers across member states
This does not rule out ‘solidarity’ in exceptional circumstances
but it would be left to the discretion of the Council and would not involve a transfer of sovereignty
Our simulations suggest that launching OMT over and above the policy measures that have already been decided would play a crucial role in the face of the outbreak of COVID-19 hitting the euro area economy
with a safe asset and centralised fiscal capacity
macroeconomic stabilisation would become even more effective
the ‘core’ and ‘periphery’ of the euro area would gain
the gains would be larger in our preferred scenario in which the crisis is met by the creation of a euro area safe asset and fiscal capacity
Bini Smaghi, L (2020), “Corona bonds – great idea but complicated in reality”
Codogno, L and P J van den Noord (2020a), “Covid-19: Eurozone safe asset and fiscal capacity are needed now”
A stylised model with fiscal capacity and a Eurobond in the Eurozone”
Amsterdam Centre for European Studies Research Paper (forthcoming)
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Eleanor Biles and Philip Pullella in Rome; Writing by Philip Pullella; Editing by Janet Lawrence
Italy (AP) — The morning bell Monday marked the first entrance to the classroom for the children of Codogno since Feb
when panicked parents were sent to pick up their children after the northern Italian town gained notoriety as the first in the West to record local transmission of the coronavirus
While all of Italy’s 8 million school students endured Italy’s strict 2½-month lockdown
few suffered the trauma of the children of Codogno
whose days were punctuated by the sirens of passing ambulances
“Many lost grandparents,” said Cecilia Cugini
So while the reopening of Italian schools marks an important step in a return to pre-lockdown routine
the step bears more symbolic weight in the 11 towns in Lombardy and Veneto that were the first to be sealed off as coronavirus red zones
Codogno Mayor Francesco Passerini said the town of 17,000 has had virtually no new cases for months now
He said they have spared no effort in working with school administrators to provide maximum protection to the city’s 3,500 students
MORE: Can Italian tourism industry survive the pandemic?
so that all we lived can be relegated to memory,” Passerini said
nursery school children must have their temperatures taken at drop-off but are not required to wear masks
parents are asked to monitor temperatures at home and masks are required
In schools where distance cannot be maintained
older students will have to keep masks on all day
Schools throughout the country struggled to identify new classroom spaces
In a country where years of spending cuts have left many school buildings run down
administrators have jumped at the chance to take care of long-overdue repairs
in some places delaying school openings while work is finished
School and local officials in Codogno worked tirelessly to ensure the smoothest return possible for students
masked elementary students waited in spaces designated by red tape to be called to class
Two classes were shifted from the more crowded of Codogno’s two elementary schools to ensure proper distancing
“Parents were not happy but we have dedicated a shuttle bus to bring the children back and forth
to address some of the discomfort,” Cugini said
MORE: After Italy’s pandemic nightmare, economy falters — and poverty spreads
receive 230 new desks commissioned by the government
oversized desks to allow students to maintain enough distance to remove masks
Art and technology classes requiring more working room will rotate through the middle school’s auditorium
The city also repaired the middle school roof and upgraded the bathrooms as part of preparations — both projects welcome and overdue
“It is an emblematic moment for us,” Cugini said
“It is important to create an atmosphere so the students can experience the emotions of finding themselves back in school
without being distracted by other things.”
there was no back-to-school shopping for new backpacks: the old ones were fine as they had lain unused for the four months of distance learning last winter and spring
But there was the usual sense of anticipation to be reunited with classmates
the renewal that comes with every school year — tinged now by a not-so-distant concern that the COVID-19 back-to-school project will bring an uptick in contagion even here
While there are many rules governing classroom behavior
“We have doubts about how to react to a cold or a coughing attack — that is an unknown for everyone,” Baggi said
Blanchard (2019) argued that higher debt-to-GDP levels might have become more sustainable than in the past: “When the safe interest rate is less than the growth rate […] both the fiscal and welfare costs of debt may then be small
smaller than is generally taken as given in current policy discussions” (Blanchard 2020)
the possibility of persistently and structurally higher inflation and interest rates undermine residual hopes for a ‘different paradigm.’ In today’s uncertain environment
central banks have little choice but to frontload interest rate rises in an attempt to maintain credibility and avoid de-anchoring expectations and a price-wage spiral
The critical consequence is a sudden and sharp rise in the expected long-term cost of sovereign borrowing
Our new paper (Corsetti and Codogno 2022) argues that we are back to the old debt-sustainability fundamentals
the ECB implemented quantitative easing by buying bonds in excess of the government’s financing needs
ECB actions were de facto helping troubled high-debt countries by keeping low government bond yield spreads vis-a-vis perceived risk-free German benchmarks
these interventions remained aligned with the ECB’s mandate to maintain price stability
A widespread argument was that the ECB could even err on the side of caution and aim for an inflation overshooting
With the central bank heavily buying government paper
financial markets could no longer price the risk of default by relying on traditional indicators since their metric was heavily distorted
We argue that financial markets were under ‘anaesthetic’: national debt was sustainable by definition as the central bank committed to purchase it in large amounts
The need to counteract the spike in inflation forces the ECB
To the extent that it may also require ‘quantitative tightening,’ yields and spreads may grow higher over time
Along with its renewed commitment to price stability
the ECB aims to avoid fragmentation in the transmission of monetary policy
to maintain government bond spreads within certain undisclosed thresholds
the ECB stated: “Redemptions coming due in the PEPP portfolio are being reinvested flexibly
with a view to countering risks to the monetary policy transmission mechanism related to the pandemic” (8 September 2022)
it set up a new Transmission Protection Instrument “to counter unwarranted
disorderly market dynamics that pose a serious threat to the transmission of monetary policy across all euro area countries
thus allowing the Governing Council to more effectively deliver on its price stability mandate”
These policies may well be able to maintain the component of government bond spreads related to credit risk under control
We carry out our comparison graphically in Figure 1
The lines in the figure show how the debt-to-GDP evolves (on the y axis) as a function of the existing level of debt
The slope of the lines is given by the difference between the real interest rate and the growth rate
The starting position of the debt ratio is point A
Consider the world before the recent inflation spike
According to the academic and policy views arising before the COVID-19 pandemic and after the EU COVID-19 recovery package (NextGenerationEU
growth was supposed to be supported for several years by policy measures
while inflation was due to return to target gradually
Monetary policy could have reverted to neutral rates over time
even erring on the cautious side as the inflation risk was perceived to be low
With the real interest rate below real GDP growth
the slope of the debt growth line in the graph was expected to remain negative
the scenario underlying Blanchard’s argument
To the extent that a prolonged increase in energy prices makes expected inflation persistently high and potential growth lower
the real interest rate would move above the real rate of GDP growth
With the slope of the debt growth line turning positive
unless the government runs a primary surplus (a negative that is large enough to offset the interest rate/growth dynamics
In a scenario in which the government has little control over the sign of
it would be up to fiscal policy to stabilise the debt ratio by reducing the primary deficit or moving into a surplus position
This would shift the line in the graph downward without altering the underlying debt dynamics (i.e
the economy will stay on a path of an ever-increasing debt ratio
Figure 1 The government debt ratio in the old and new world
stabilising the debt ratio would become much more challenging if financial markets were to change their expectations about long-term equilibrium real interest rates and potential GDP growth
A change in the long-term view would have immediate repercussions
with a call for a much higher risk premium on government bonds of vulnerable countries
forcing some policy reaction in the form of tighter fiscal policy
This would be in a context where some fiscal support for cyclical and structural reasons would instead be highly needed
As higher sovereign spreads drive up the borrowing costs of firms and households and deteriorate domestic financial conditions and the resilience of financial intermediaries
the country would enter a ‘bad equilibrium’
where adverse expectations are ex post validated by a persistent downturn plagued by continuing financial turmoil
To be clear: a stable path forward would still be possible
stability would crucially rest on (a) achieving higher potential GDP growth by the end of the NG-EU programme
and (b) maintaining yield spreads under control by credible budgetary policies in a cooperative euro-area-wide policy setting
the Italian government projections foresaw a sizeable rebound in GDP in 2021 (6.0%)
with growth remaining well above par for the whole projection horizon (4.7% in 2022
This growth was partly due to the NG-EU programme
expected to produce a sizeable demand stimulus for several years
investments and structural reforms were expected to boost potential growth to 1.5% over the medium term (i.e
and the ECB had not yet considered increasing rates
the nominal interest rate was expected at 2.2% in 2021; deflated using the projected GDP deflator of 1.7%
The debt ratio was expected to decrease from 155.6% of GDP in 2020 to 146.1% in 2024
driven by a decline in the primary deficit from 6.0% of GDP in 2021 to 0.8% in 2024
The same exercise using data from Italy’s official planning document
unveiled in September 2022 introduces a key change
While the debt ratio in 2024 is still projected to decline (to 140.9%)
and real GDP growth remains at 1.5% in 2025
the nominal interest rate rises to 2.8% and the GDP deflator to 1.9%
implying a real interest rate on public debt of 0.9%
but the debt ratio keeps (more slowly) improving
expected to swing from a deficit to a surplus of 0.7% at the end of the forecast period
Is it reasonable to expect real interest rates to remain so low over the long run
especially considering the sizeable 2.5% credit spreads already recorded at the time of our writing
Suppose that inflation (measured by the GDP deflator) remains at the ECB’s target of 2.0% over the long run
real GDP at 1.3% (a revised estimate of potential growth by the government assuming 0.6% potential before COVID-19
plus a 0.5 percentage point effect of extra investments
and a 0.3 percentage point effect of reforms) and real interest rates at 1.0% plus a 2.0% risk premium
so that real borrowing costs would rise to 3.0%
Stabilising the debt ratio at its 2024 projected level of 140.9% would require a sustained primary surplus
Italy is at risk of entering a ‘bad equilibrium,’ whereas a higher risk premium driving up the real rate would require potentially self-defeating tightening policies that may end up worsening near-term economic activity and the fiscal outlook of the country
A downturn with fiscal and financial stress
given the evidence of a strong correlation between private and public borrowing costs
A bad equilibrium could easily turn into an unsustainable trend for the debt ratio (e.g
The macroeconomic environment and mood prevailing in 2020 and the beginning of 2021 were somewhat unique and are over
the global macroeconomic outlook has changed completely
No major central banks can tolerate higher inflation and so all need to raise their policy rates
Not only is this required by their inflation-fighting mandate
would allow inflation and inflation expectations to drift higher
It would end up raising long-term borrowing costs via an inflation premium (requiring painful disinflationary policies in the future)
the adverse effects of the current terms-of-trade shock magnify debt sustainability risks for both public and private debt
Historical evidence suggests that these premia tend to increase exponentially rather than linearly
exacerbating the rise in the cost of borrowing
the ECB deliberately compressed risk premia with quantitative easing
risk premia are no longer anchored by the early QE policies pursued by the ECB
The potential consequences may be mitigated by the NGEU’s money cheaply financing the most vulnerable countries and the ECB’s Transmission Protection Instrument
the success of these policies is most likely predicated on the ability of member states to enhance their policy credibility and adjust their primary balances
A sustainable fiscal outlook will rest on two pre-conditions over the next few years
reforms and investments should be accelerated to benefit from returns within a reasonably short time horizon
Resources should be devoted to increasing productive capacity
and pursue efficiency in their utilisation
Raising potential growth sooner than previously projected will be crucial to sustainability
a prudent fiscal policy and a smart macro prudential policy are of the essence to reduce
the risks of sudden shifts in financial market sentiment that would push government debt into a ‘bad equilibrium.’
Bénassy-Quéré, A and B Weder di Mauro (2020), “Europe in the time of COVID-19: A new eBook”
American Economic Review 109(4): 1197-1229
“Europe should throw out its fiscal rulebook”
“Capitale e investimenti pubblici in Italia: effetti macroeconomici”
Questioni di Economia e Finanza (Occasional Papers) 520
“The sustainability of the Italian public debt
a safe asset and a fiscal capacity for the Eurozone”
in Rivista di Politica Economica dedicated to “Public debt in Italy: why it is a problem and how to get out of it”
Codogno, L and G Corsetti (2020), “Post-pandemic debt sustainability in the EU/euro area: This time may (and should) be different”
Sudden shifts underlying factors may push high-debt countries into a bad equilibrium”
“Debt Sustainability Analysis: State of the Art”
requested by the ECON Committee of the European Parliament
Economic Governance Support Unit Directorate-General for Internal Policies of the Union
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Journal of European Economic Association 14(6): 1329-1371
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The Local Europe ABVästmannagatan 43113 25 StockholmSweden
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the outcome of a nasal swab in a tiny hospital in Codogno
foretold the disaster that was about to engulf Europe
was the first confirmed COVID-19 patient in Italy who had not traveled to China
he was infected locally — a sign the coronavirus was spreading rapidly in the country
he is the symbol of the beginning of everything — but he does not feel like that,” said Giulio Costa
a psychologist who lives near Codogno and knows Maestri well
“He was sorry to read that some newspapers described him as reckless because he had a fever and he had gone around infecting half of the world.”
No one knew then what we know now: that the coronavirus was already circulating in Europe and would soon devastate the Continent
killing hundreds of thousands of people and shutting down the economy
Maestri might not have received a test at all: At the time
medical protocol didn’t require a test for people with COVID-19 symptoms who had not recently traveled to China or come into contact with a known positive case
Within days of the result, however, part of northern Italy would become Europe’s first so-called red zone. Strict lockdown measures confined people to their homes
preventing them from traveling between towns
and medical staff went to battle against a virus that would soon overwhelm hospitals across the Continent
Codogno, and the surrounding region of Lombardy
life in Codogno has mostly gone back to the way it was
hairdressers and shops are open until 6 p.m.
But the trauma of the past year has left scars on the community
On the wall of an out-of-use petrol station near the town’s entrance someone has drawn a mural depicting Wonder Woman in a lab coat
She is wearing a stethoscope around her neck and a face mask with the Italian flag — an homage to the health care staff who were thrust into the front lines in the chaotic early days of the pandemic
Some 326 Italian doctors and health staff have died of COVID-19 since last year
“This year weighed on us,” said Francesco Passerini
Although no businesses have been forced to close
family funds to pay employees and avoid disaster,” said Passerini
people smile from behind their masks and shrug their shoulders when asked how they are doing
“We would never have thought we would be the first to experience such a thing,” said Franca
“We were at home watching the world from our windows
and for the first time the world had noticed us
All of the televisions stations were filming us
Those first 18 days of strict confinement felt like something akin to the aftermath of the nuclear disaster at Chernobyl
The memory of those first few weeks is perhaps most vivid for the doctors who treated the first coronavirus patients
all patients in the area were transferred to a polyclinic in the neighboring town of Pavia
“Mattia arrived at night,” Francesco Mojoli
the head of intensive care at the San Matteo polyclinic in Pavia
It was the end of February and “for a few days we were the only hospital that treated COVID-19 cases.”
staff set aside only five intensive care beds for COVID-19 patients
Mojoli became visibly overcome with emotion when he considered what had taken place over the past year
What he thought was just a small outbreak would very quickly turn into something much harder to handle
especially for the younger anesthesiologists,” he said
to see so many people die one after the other
“We learned how to do it,” said Raffaele Bruno
the director of infectious diseases at San Matteo
But he and others remain on high alert, he said, given new variants of the virus are circulating on the Continent, and Italy still counts around 300 daily deaths.
It is impossible to forget the devastating impact of the virus, and the many lives it has ruined, Bruno added. He often thinks of a family that he met in March last year. “It was a mother, father and daughter, all three positive for COVID-19. They were hospitalized with us. The two parents died and the poor girl went home alone.”
For most people in Codogno, the biggest challenge — as it is elsewhere — is so-called pandemic fatigue.
Costa describes it as similar to the exhaustion felt by people “who care for an elderly parent, or a cancer patient who has relapsed, or a relative with a chronic disease.” The future feels dark and hopeless.
If there was a sense of solidarity and closeness during the first wave of the lockdown, when people clapped for health care workers every night and looked out for one another, “today a sense of tiredness and fear prevails, especially in people who have lost a family member and in those economically affected by COVID.”
But the past year also gave people reasons for optimism, said Fausto Baldanti, who is head of virology at San Matteo. “We have seen a solidarity between colleagues that we could not imagine, and we have seen that science works miracles,” he said, adding that getting a vaccine ready for use in 10 months is an unprecedented accomplishment that gives him hope for the future.
In Codogno, many wonder if the heroine drawn on the wall at the town’s entrance is not in fact Malara, the anesthesiologist at San Matteo who tested Maestri for COVID-19 when his condition rapidly deteriorated, saving his life.
She brushes off the idea, saying: “I don’t feel like a hero. I just did my job, the same as my colleagues.” She still keeps in touch with Maestri, she said. “He is a person with whom I shared a dramatic phase of our history.”
In the first few weeks in which Maestri was intubated, the country looked on in anguish, hoping for his recovery and anxious about what this disease could do to a healthy young person.
His recovery several weeks later would be an important symbol — a first sign of hope, despite the many more months of darkness to come.
When he opened his eyes, Maestri found out that his father had died of COVID and felt an enormous sense of guilt about having potentially infected him, said Costa. Only the birth of his little girl, his first child, restored his trust in the future.
Before Maestri was intubated, he told Malara: “I will fight for my daughter who I have to see. Help me with this too.”
Amid fear and anger, pandemic-skeptics are accusing doctors of lying about the virus.
had a hunch that something was different about a patient in the intensive care ward.Their decision to take matters into their own hands wound up triggering a national emergency - they had identified the first case of COVID-19 in the area that would become Europe's first lockdown zone.A previously healthy 38-year-old man
had gone to the hospital with a high fever
He refused to be admitted so was given antibiotics and went home.He returned that evening in worse shape and was put on oxygen
Mattia's wife told doctors that a few weeks earlier he had gone to dinner with a colleague who had been in China.But Mattia did not fit national criteria for mandatory coronavirus testing because he had not been in China personally."I had to explain many times why I wanted to perform it (a COVID swab) anyway," said Malara
39."Doctor Malara and myself decided to break protocol," Ricevuti recalled
They performed the nasal swab and sent it to a lab in Milan.At 9:30 p.m
The test was positive."We couldn't believe it
We thought this was a far away problem that had to do with China
and not just from that February 20th but probably from much earlier," Ricevuti
became the "capital" of the first "red zone" in Europe to be locked down
"In the beginning I hoped - we all hoped - that the virus would be limited to a few people," said Malara
"But after a few hours a lot of people came to the emergency room with the same symptoms and after a few days it was clear that it had spread into the population."Since then 95,000 people have died of COVID-19 in Italy
the second-highest toll in Europe after Britain and the seventh-highest in the world.Both women are still treating COVID-19 patients."This is our mission
We cannot really retreat," Ricevuti said
facing the difficulties and the changes that life presents us ..
you need a lot of physical and mental strength."Additional reporting by Emily Roe
children's play has not echoed in the main piazza of the town of Codogno
overlooked by a statue of the town's patron St
the silence has been pierced increasingly less often by ambulance sirens
which in the early days roared through every couple of hours
The northern town that recorded Italy's first coronavirus infection has offered a virtuous example to fellow Italians now facing an unprecedented nationwide lockdown — that by staying home
Infections of the new virus have not stopped in Codogno
which still has registered the most of any of the 10 Lombardy towns in Italy's original red zone
In the town of 16,000 located near the Po River about 60 kilometers (40 miles) southwest of Milan
most everyone knows someone among the nearly 200 infected with the virus
When news went out this week that there had been zero new infections in the previous 24 hours
media hopes of eradication were exaggerated
But the trend appears to be real — and one of the reasons that led Premier Giuseppe Conte to impose a series of draconian new measures across the countries this week
Five new infections were registered Wednesday
compared with 35 a day at the start of the outbreak
who like most people in the town wears a mask and who has mourned at a distance with friends who lost their fathers
but we have every possibility of winning," Passerini said
who went physically into battle for our freedom
we are being required to show responsibility — responsibility and calm."
Those whose lives the virus has claimed include Umberto Falchetti
who helped turn the MTA car components business founded by his father into one of the city's major industrial concerns
He died within a week of coming down with a fever
residents have grown accustomed to their isolation from the world
They mostly wear masks when they do go out — not as a requirement but "as an act of attention above all to avoid contagion to others," Passerini said
Handshake greetings are replaced with new forms of acknowledgment — a steady gaze
"We need to make it our own," the mayor said of the still-awkward passage of customs
residents steadfastly abide by the 1-meter distance rule
a pharmacy to have their prescriptions filled
While the rest of Italy has had to adjust to rapidly changing measures
the pace within Codogno has never really changed since the first diagnosis was confirmed on Feb
21 — not even when police and army barricades came down earlier this week when Lombardy became one big containment zone
there was some concern over the risk that all of the sacrifices were in vain," Passerini said of the opening
"We are continuing with our virtuous behaviors
with the hope that this emergency ends as soon as possible
not only in Codogno but in the rest of the country and Europe."
So while people can no longer attend Mass or swap news at a café
a local parish radio station has stepped in to partially fill that gap
along with bulletins from the civil protection agency and messages from the mayor
Trains no longer stop at the station -- no one is going anywhere anyway
And shops for non-essentials like apparel and bicycles that opened long enough to post signs instructing customers that they must wear a mask to enter
"Codogno has been in the spotlight since the very first day," said Rosy Ronisvalle
who stopped at a newsstand her way home from the pharmacy this week to pick up a magazine for her 4-year-old daughter
But it has been with great personal sacrifice
Ronisvalle improvised meals after shops — including supermarkets — were ordered closed Feb
and arranged play for her 2-year-old son and 4-year-old daughter
who has recently finished chemotherapy and who had been scheduled for urgent surgery until the lockdown made travel outside the red zone impossible
we don't have time to lose,'" Ronisvalle said
there is a lot of time to lose because of the demands on hospitals
There are not enough beds in intensive care for her
obviously she would have to go into intensive care."
They are now awaiting surgery to be scheduled
"This is just another problem that coronavirus can bring to families," she said
In Italy, the temptation to go back in time, or shut the door to Europe and globalisation is strong, especially after a quarter of a century of poor economic performance, argue Lorenzo Codogno and Giampaolo Galli
which gained an outright majority in Parliament in the country’s recent elections
together with the threats arising from globalisation
instead of arguing for an even bolder reform agenda
It posted the lowest growth rates among the developed countries for about a quarter of a century
This anomaly can help to understand why the anti-establishment forces
which have also reaped successes almost everywhere in the Western world
gained a majority in the latest Italian elections
It also helps to understand the economic policy dilemma facing the country today
Although the link between the economic crisis and the success of anti-establishment parties is not mechanical
it is evident that these same parties have denounced the many aspects of deteriorated social conditions and that this has been the key to their success
The elections produced a good result for the Five Star Movement
a populist anti-establishment party that did not exist ten years ago and is now the first party in the Italian Parliament
with 32.7% of the popular vote and 35.2% of the seats in the Lower House
which is an anti-immigrant anti-euro far-right grouping that used to be in favour of devolution for the North (Northern League) and now has ambitions for the whole country
It got 17.4% of popular votes and 19.8% of the seats in the Lower House
Together with other more moderate centre-right parties
controls only 19.4% of the seats in the Lower House
the President of the Republic will try to broker a deal to form a new government
Italy’s per capita GDP stands at 106 if we put 1995 equal to 100
which means that Italy has barely grown over almost a quarter of a century
All the other OECD countries have done better
including the wretched Greece that stands at 116
which corresponds to average annual growth of 1.4% over 1995-2017
broadly the same growth recorded in the United States
and the policies introduced in recent years
but Italy is one of the very few OECD countries that have not yet managed to recover to pre-crisis levels
GDP per capita has contracted by 8.2% compared to 2007
Almost all other countries have largely exceeded pre-crisis levels
The Eurozone net of Italy stands at 5.0 percentage points above pre-crisis levels
In each of the years between 2015 and 2017
Italy recorded GDP growth about one percentage point below the other Eurozone countries
Italy’s regional divide is huge and has not narrowed in recent years
Most economists trace back such a poor performance to Italy’s difficulty in adapting its productive structure and public administration to the challenges of globalisation
technological innovation and the single currency
the facts do not support the idea that the harsh social conditions of Italy are the consequence of so-called ‘neo-liberal’ reforms that would have increased inequalities and favoured the ‘usual suspects’
Italy is one of the few countries in which the Gini inequality index has remained almost unchanged in the last quarter of a century
Even more noteworthy is the fact that the share of labour on manufacturing value added
and has returned to the record levels of the early seventies
According to the majority of economists and international organisations
Italy suffers because the reforms of recent years have not been enough to restart the broken engine of the economy
This is because they have not managed to address the underlying issues forcefully and partly because of insufficient implementation and the typically delayed impact of structural reforms
the perception of voters ― especially those who voted for anti-establishment parties ― is precisely the opposite
the missing reforms are not at the origin of the troubles
they are proposing to roll back the recent labour market and pension reforms
Probably the lack of feel-good factors and the sense of insecurity and uncertainty deserve more attention and different answers compared to the past
The problem is that Italy is in the middle of a ford: the economic and social costs of the reforms have
employment and the quality of work are still lagging
or shut the door to Europe and globalisation
and the state of the public finances would become even more precarious
There are mainstream recipes to overcome the Italian anomaly and more innovative solutions
Even some new ideas by the populists can be considered
these new political forces should recognise that they cannot address Italy’s broken engine of growth by rolling back reforms or worsening the already fragile state of the public finances
Please read our comments policy before commenting
Note: This article gives the views of the authors
not the position of EUROPP – European Politics and Policy or the London School of Economics
With schools reopening after long months of lockdown and distance learning due to the pandemic
students should avoid isolating themselves in the digital world and rebuild real relationships using the head
hands and the heart. Pope Francis offered the exhortation to a delegation of students and staff from the Ambrosoli Institute of Codogno
a small northern Italian town of some 15,000. On February 21
Italy's first coronavirus cases were detected in Codogno
in what became the first major outbreak in Europe
“Our meeting should have taken place last February
on the anniversary of the beginning of the epidemic in Europe
in the town of Codogno,” Pope Francis told the delegation of some 55 persons
Commending the technical and vocational institute for its excellence and for preparing young people for jobs
the Pope said they are a double sign of hope. He congratulated them for never losing heart.
He pointed out that young people have a strength and desire
which when stimulated and accompanied with wisdom and passion by adults
teachers need to be 'masters' in the noblest sense of the term.
highlights the link between learning and doing
But what is missing is the third element: the heart. He said the head
the heart and hands are needed in ordered to be coherent so that one thinks what one feels and does
and does what one feels and thinks. This
heart and hands: a circle that must always be kept open and dynamic,” he said
Pope Francis also noted that the dimension of relationship among students and with teachers has been penalized during the long months of distance learning during the pandemic
the Pope invited the students to learn from this negative experience
He acknowledged that the digital world has opened up new avenues of knowledge and communication for young people. But he warned of the “danger of closing in on ourselves and always seeing reality through a filter that only apparently increases our freedom”
He wished that the experience of “‘abstinence’ from friendship” stimulate in them a “greater critical sense in the use of these instruments
so that they remain subject to our intelligence and will”
Pope Francis reminded the students that they should be the present of society and need not move to the future. They will be the future of society if they are its present. “Without young people,” he said
“a society is almost dead.” “You are the present because you bring new life,” he reminded them
The Holy Father concluded urging the students of Ambrosoli Institute to be grateful to God for the opportunity of school
and where they can learn to live their relationships in an open
Thank you for reading our article. You can keep up-to-date by subscribing to our daily newsletter. Just click here
In this essay, part of our Navigating Economic Change series
Lorenzo Codogno and Giampaolo Galli provide a short history of Italy’s economic underperformance
before digging into the root of Italy’s growth problems
and exploring how some of Italy’s traps may become future challenges for the UK economy
Italy has faced a series of economic crises in the past 50 years
public debt concerns in the 1980s and currency volatility in the 1990s
There were then four shocks in a row over the past fifteen years
the coronavirus pandemic and finally the inflation shock partly linked to the Russian invasion of Ukraine
These crises were opportunities to reform Italy’s economy
hopes have been repeatedly disappointed by the lack of policy delivery and as reforms were captured by lobbies and interest groups
This chapter first examines some stylised facts
then provides a short history of Italy’s economic underperformance
Many factors are to blame: poor economic incentives
a large share of small and unproductive firms
Some of Italy’s traps may become future challenges for the UK economy
The Navigating Economic Change essays are written by a range of leading economists and national experts and reflect the views of the authors rather than those of the Resolution Foundation
They have been commissioned and edited by Gavin Kelly (Chair of the Resolution Foundation and member of the Economy 2030 steering group) and Richard Davies (Professor at University of Bristol and fellow at the LSE’s Centre for Economic Performance)
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Nearly 52% of UK voters supported Brexit in the 2016 referendum. Nearly 100% of citizens elsewhere in the bloc were shocked by the result, and the first concern was that Brexit could mark the unravelling of the whole European project. That did not happen: indeed, quite the opposite. Even in the most Eurosceptic countries there was an increase in support for the European Union
There was a clear risk that the EU would become disunited in the buildup to Brexit
All countries gave a strong mandate to the European Commission
British politics appears increasingly folded in on itself
and the British economy is arguably less outward-looking than before the referendum
Countless questions remain unresolved with the commission
and mutual trust between London and Brussels has long since collapsed
the drama of the Brexit negotiations was watched with mixed feelings
Initial regret shifted to a desire to limit the damage
Some economic opportunities to fill the gaps left by the UK opened up
Brexit was clearly going to be a loss for everyone
but far greater for the UK than for any continental European economy
The negative impact on trade, so far, is substantial for the UK. The Centre for European Reform recently estimated that there has been an 11.2% negative impact on trade as a result of Brexit
The UK share of world trade has fallen by a further 15% compared to pre-referendum projections
A more precise picture of the geographical and sectoral composition will emerge once EU funds to compensate countries for the impact of Brexit are distributed
Since 2016, the flow of EU workers to the UK has been in decline. That process accelerated last year
The corresponding impact in the EU is a greater pool of labour in some countries and less of a brain drain
which increases unemployment but over time becomes a positive supply-side phenomenon
it is very much diluted in continental Europe
Although the impact of Brexit on the City of London is not yet significant
the possibility of maintaining an undisputed dominant position in increasingly integrated European financial markets has been jeopardised
London financial job openings have moved to continental Europe
That raised fears in the EU of unfair competition through access to the single market
especially given the uncooperative approach to negotiations chosen by the UK government
these risks have by and large not materialised and concerns are dissipating
The illusion of giving a boost to the UK economy with a reduction in taxation has clashed with the new needs for public spending for healthcare
and the various electoral promises to the point of forcing the government to raise taxes
policies in the UK and the EU look increasingly alike
Some in Brussels would say it would have been inconceivable
The economic effects of the pandemic inevitably blur into those of Brexit
and therefore only once the dust settles can the damage be properly assessed
Of the many problems the EU is currently facing
Brexit has happily receded from the foreground
Lorenzo Codogno is visiting professor in practice at the London School of Economics and the former chief economist of the Italian treasury
The unprecedented fiscal package adopted by the European Council this summer – dubbed Next Generation EU – is vital for the recovery of the euro area
write Lorenzo Codogno and Paul van den Noord
they estimate that the creation of a Eurobond and permanent fiscal capacity at the centre would have been a more powerful means to mitigate the impact of the crisis
Although the programme is not yet finalised
it is set to contain the following elements
The bulk of the fiscal expansion is provided in the form of grants and loans to member states by the Recovery and Resiliency Facility (RRF) amounting to €312.5 and €360 billion
While the exact formulas are still under discussion
the intention is to spread out the transfers over the years 2021 to 2025
with the onus of the support on those countries that have been hit the most by the crisis
member states would receive €77.5 billion under a range of other programmes
such as ‘ReactEU’ and the Just Transition Fund
Using conservative assumptions on the multiplier effects, we estimate the impact on Eurozone economic growth to be a cumulative 1.5% by 2023 and 3.0% by 2027 (Figure 1). Most of this will benefit the Eurozone periphery, where the cumulative effect could be as large as 4% by 2023 and well over 8% in 2027.1 While impressive enough
this is excluding the impact of a range of other – national and supranational – policy initiatives that need to be taken into consideration as well
This will tell us whether or not Next Generation EU is indeed the game-changer it is intended to be
We use a stylised macroeconomic model developed in a recent paper that is aimed at capturing the cumulative impact of policy change over the medium run
broadly reflecting the chronology of events
we look at both the national and pan-European fiscal responses (e.g
SURE) which were primarily shaped during the initial stages of the outbreak and the associated lockdowns in the spring
as well as the ECB’s monetary policy response
we add in the impact of Next Generation EU
Figure 1: Next Generation EU – estimated cumulative impact on real GDP
Finally, we compare these policy responses to a hypothetical case in which an alternative macroeconomic policy and governance framework is assumed along the lines of our paper
we assume (i) a single Eurobond to replace national bonds on banks’ balance sheets so as to break the link between banking and sovereign distress
including automatic stabilisers and discretionary (but rules-based) policy
and (iii) a new quantitative easing (QE) scheme that mandates the ECB to purchase Eurobonds (while national sovereigns lose QE eligibility and those still on the ECB’s balance sheet are swapped for Eurobonds as well)
All simulations assume that the core and the periphery are hit by an adverse demand shock of respectively -10% and -15% of GDP and an adverse supply shock of respectively -5% and -7.5% of GDP
This is obviously a very crude gauge of the Covid-19 shock
and views are bound to evolve as information flows in
we assume a favourable risk premium shock of -200 bps in the core – and hence an equivalent shock to the spread – due to a flight to safety (this is aside from the endogenous change in the spread in response to the changes in debt positions)
Table 1 reports the computed changes in main aggregates and policy variables in the core
1. Monetary policy stimulus consisting of a sustained 25bp cut in the policy rate2 and asset purchases amounting to 12.3% of GDP per annum sustained for two years.3 We also assume an exogenous cut in the periphery yield by 200 bps over and above the impact of the ECB’s asset purchases to reflect the availability of a new ESM credit line (though this may never be used for various reasons)
2. Fiscal stimulus amounting to 5.2% of GDP in the core and 3.2% of GDP in the periphery.4 Besides
we factor in a range of pan-EU measures adopted in the spring
that involve fiscal stimulus of the order 0.4% of GDP in the core and 0.8% in the periphery
Column II of the table reports the computed outcomes of the actual policy
including the impact of Next Generation EU
while leaving all other assumptions unchanged
Grants are allocated under the Recovery and Resilience Facility to the tune of 1.0% of local GDP in the core and 4.5% of local GDP in the periphery
the increase in the primary deficit at the centre would average around 3.5% of euro area GDP
Loans are allocated to the tune of 0.4% of local GDP in the core and 6.7% of local GDP in the periphery
This leaves the primary deficit at the centre unaffected (loans are below the line)
it does have an impact on EU-debt (and a corresponding issuance of common bonds) of an additional 3.5% of Eurozone GDP
About 20% of the above Next Generation EU package is assumed to be used for funding of existing national measures
which therefore would reduce the national fiscal stimulus accordingly
The main results of the simulation can be summarised as follows:
The contraction of output is considerably smaller (-1.5%) with much less divergence between the core and periphery
The widening yield spread would be neutralised as well
the package would be quite effective according to our stylised model
we see the primary deficits at the national level still increasing substantially by 6% of GDP in the core and 3.5% of GDP in the periphery
this is a much smaller increase than in scenario I
helped by the more favourable macroeconomic environment
the less prevalent automatic fiscal stabilisers and the use of transfers from the centre to fund national programmes
The same holds for the public debt position
Policy response with a safe asset and fiscal capacity
Scenario III reported in Table 1 is based on the following assumptions:
We maintain all national policy measures as well as the creation of the ESM credit line as assumed in scenarios I and II
We also assume the supranational fiscal stimulus (both loans and grants) on aggregate to be the same as in scenario II
but instead with the fiscal stimulus used to fund pan-European (as opposed to national) programmes and projects
The rationale for this choice is to avoid the crowding out of national spending programmes
We also slash the asset purchases by the ECB by half
2. Alongside discretionary fiscal expansion at the centre, we assume supranational automatic fiscal stabilisers to cater for some horizontal redistribution. This could be the result of a centralised unemployment insurance or re-insurance scheme or the creation of a rules-based European buffer fund
we assume that for every 1 percentage point contraction in national GDP
an automatic transfer of 0.2 percentage points of national GDP would occur
This transfer replaces equivalent national automatic stabilisers to provide genuine fiscal relief
We assume that a safe asset (the same common bond that is issued to raise money for fiscal stimulus at the centre) is created before the pandemic and swapped for national sovereigns on banks’ balance sheets to remove the bank-sovereign doom loop
We also assume that only the safe asset has been made eligible for purchases by the ECB
Hence all asset purchases carried out by the ECB in this scenario refer to purchases of the safe asset (in the secondary market)
The main results can be summarised as follows:
The aggregate stabilisation is more potent than in scenario II
though this is entirely attributable to the stabilisation of output in the core
This is not surprising given the absence of (discretionary) fiscal transfers
Yet the periphery is not (much) worse off relative to scenario II
the yield spread widens somewhat relative to scenario II
reflecting the absence of sovereign debt purchases by the ECB
but without affecting bank lending as the doom loop is broken
The fiscal-monetary policy mix has shifted towards the former
with the aggregate fiscal deficit at the centre widening more than in scenario II – as the supranational automatic stabilisers kick in – and the asset purchases halved
Since the ECB would purchase the common bond only
its yield is now disconnected from the national yields and falls relative to them
This article gives the views of the authors, not the position of EUROPP – European Politics and Policy or the London School of Economics. Featured image credit: European Council
Lorenzo Codogno is Visiting Professor in Practice at the LSE’s European Institute and founder and chief economist of his own consulting vehicle
Lorenzo is also a Visiting Professor at the College of Europe
he was chief economist and director-general at the Treasury Department of the Italian Ministry of Economy and Finance (May 2006-February 2015)
he was head of the Italian delegation at the Economic Policy Committee of the European Union
which he chaired from Jan 2010 to Dec 2011
He joined the Ministry from Bank of America
where he had worked over the previous 11 years
senior economist and co-head of European Economics based in London
Paul van den Noord is an affiliate member at the Amsterdam School of Economics (University of Amsterdam)
He spent most of his career at the OECD in Paris (1989-2013)
from 2010 to 2013 as a Counsellor to the Chief Economist
he was seconded as an Economic Adviser to the European Commission in Brussels
In 2013 he joined a financial institution in London and Geneva
He has published widely in the fields of monetary union and the political economy of reform
including numerous articles in academic journals
Metrics details
Atg5 has been previously characterized as a protein specifically required for autophagy
a lysosomal catabolic pathway for proteins and organelles
in addition to its role in the formation of autophagosomes
an Atg5 fragment produced by calpain cleavage has pro-apoptotic properties
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The expected tariff cost is significantly lower than the $4 billion to $5 billion crosstown rival General Motors estimates
which Ford attributes to its higher mix of U.S.-built vehicles
Metrics details
self-digesting mechanism responsible for the removal of long-lived proteins and damaged organelles by the lysosome
The discovery of the ATG genes has provided key information about the formation of the autophagosome
and about the role of macroautophagy in allowing cells to survive during nutrient depletion and/or in the absence of growth factors
Two connected signaling pathways encompassing class-I phosphatidylinositol 3-kinase and (mammalian) target of rapamycin play a central role in controlling macroautophagy in response to starvation
a considerable body of literature reports that macroautophagy is also a cell death mechanism that can occur either in the absence of detectable signs of apoptosis (via autophagic cell death) or concomitantly with apoptosis
Macroautophagy is activated by signaling pathways that also control apoptosis
The aim of this review is to discuss the signaling pathways that control macroautophagy during cell survival and cell death
The aim of this review is to discuss the molecular control of autophagy
focusing particularly on signaling during protective autophagy
and during autophagy when the process is involved in the execution of a cell death program
recent evidence suggests that the elimination of damaged mitochondria by autophagy may act as a rescue mechanism that the cell uses to escape from cell death
rather than as a mechanism producing cell death in its own right
and one that has not been discussed in the literature so far
after prolonged starvation (lasting for more than 3 days in man
autophagy slows down again because ketone bodies then begin to replace glucose at least to some extent
Although it is obvious that this must occur to prevent excessive degradation of proteins that are essential for cell function
nothing is really known about the mechanism underlying the inhibition of autophagy under these extreme conditions (see also section ‘What are the consequences for autophagy of downregulating amino-acid signaling?’)
it is tempting to speculate that the ketone bodies themselves may be involved in regulating autophagy
was not equivalent to flux through the autophagic system
This situation is entirely analogous to that of the metabolic pathways
in which changes in the steady-state concentrations of the pathway intermediates do not give any information about the flux through the pathway
It may very well be that the relatively low level of autophagosomes in the starved liver in vivo is attributable to a relatively high rate of elimination of autophagosomes rather than to a low rate of autophagosome formation
see the section ‘Autophagy and cell death’
this closely parallels the effect of insulin and glucagon and of amino acids on signal transduction
Plain and dotted arrows represent activating and inhibiting signaling pathways
The outcomes of the various autophagy signaling pathways on cell survival and cell death are discussed in the main text
The thick arrow represents the recycling of amino acids produced by autophagic degradation
This recycling is highly active during starvation-induced autophagy
Amino-acid-dependent activation of mTOR plays a crucial role in repressing autophagy
mTOR-independent inhibition of autophagy by amino acids has also been reported
amino acids repress autophagy by interfering with Erk1/2 signaling
and with the activity of the class-III PI3K/beclin 1 complex involved in the formation of the autophagosome in intestinal and muscle cells
The inhibitory effect of the class-I PI3K signaling pathway on autophagy involves mTOR
it has been suggested in the literature that there is another signaling pathway that is independent of TOR
No role of the LKB1/AMPK signaling in controlling autophagy has yet been reported (*)
Given the inhibitory effect of LKB1/AMPK signaling on mTOR signaling
we would have expected it to produce stimulation of autophagy
If a kinase is acting upstream of AMPK in this signaling process
It has been suggested that AMPK-dependent S6K tail phosphorylation may have a structural role in inhibiting autophagy independently of its kinase activity (?)
Inhibition of S6K activity is not involved in triggering autophagy
but this activity may repress autophagy by some unknown mechanism
S6K is required for autophagy to occur (not indicated in the figure)
Inhibition of the insulin-signaling pathway by S6K as the result of a negative feedback loop has recently been demonstrated; however
the effect of this negative feedback on autophagy remains to be investigated (**)
The ceramide-mediated expression of beclin 1 in human breast cancer cells in response to the antiestrogen tamoxifen remains to be elucidated
Although autophagy is negatively controlled by mTOR activity
the suggestion that the inhibition of autophagy by amino acids also proceeds via mTOR has been challenged
Rapamycin was found to stimulate autophagic proteolysis
but could not abolish the stimulation of proteolysis by leucine starvation
The authors also concluded that amino acids (leucine in particular) do not inhibit autophagy via mTOR
It was suggested that amino acids could perhaps turn on different signaling pathways in different tissues
characterized by differences in their metabolism
and thus contributes to the inhibition of autophagy
whereas rictor mTOR is required for Ser473 phosphorylation of PKB and controls cell proliferation and survival
It is possible that the relative amount of mTOR sequestered in each of these complexes determines whether or not autophagy can be accelerated by rapamycin
It must be stressed that so far the evidence that AMP kinase inhibits autophagy in hepatocytes rests entirely on data obtained using toxins or AICAR
and so we cannot rule out the possibility that AICAR has other effects: it may inhibit class-III PI3K
In experiments carried out recently in our own laboratory with hepatocytes (unpublished observations)
we observed that the antidiabetic agent metformin markedly activated AMPK
whereas autophagy remained largely unaffected
This would indicate that the activation of AMPK alone is not sufficient to inhibit autophagy
because a decline in inhibitory PI(3,4,5)P3 will accelerate autophagy
not much information is available about protein turnover in type II diabetes
Whether or not autophagy plays a role here is entirely unknown
whereas S6K phosphorylated at Thr389 inhibits autophagy
which helps to boost the ability to remove damaged mitochondria (and presumably other damaged cellular structures)
We will review our understanding of the control of autophagy during cell death
and will point out similarities to and differences from the regulation of autophagy observed during cell survival
How ecdysone and its receptor inhibit the class-I PI3K pathway remains to be investigated
It is interesting to note that programmed autophagy does not depend on the feeding status
and inhibition of TOR signaling can further increase autophagy
This observation led the authors to suggest that dTOR may be only partially inhibited during programmed autophagy or possibly not involved at all
this study demonstrates the physiological significance of class-I PI3K during programmed autophagy
It also reveals the cross-talk between two signaling pathways involved in controlling autophagy
the class-I PI3K and the ecdysone-receptor signaling
This suggests that similar control mechanisms operate during starvation-induced autophagy and autophagic cell death
It remains an open question as to whether autophagic cell death and starvation-induced autophagy are controlled by different domains of DRP-1
and subsequently by different signaling pathways
It could also be expected to yield more insight into complicated processes such as aging
eukaryotic translational initiation factor 4E-binding protein-1
extracellular signal-regulated protein kinase
double-stranded RNA-activated protein kinase
phosphatase and tensin homolog deleted from chromosome 10
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We would like to apologize to any authors whose work could not be cited here because of space limitation
Work in P Codogno's laboratory is supported by institutional funding from The Institut National de la Santé et de la Recherche Médicale (INSERM) and grants from the Association pour la Recherche sur le Cancer (ARC 3503)
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Ahead of the Italian elections on 4 March, opinion polls suggest an increasingly fragmented political scenario, with a hung parliament and likely difficulties in having a parliamentary majority in support of a new government. But what will the vote mean for Italy’s relations with the EU? Lorenzo Codogno discusses the three most important themes in the Italy-EU relationship
The outcome of the Italian elections remains highly uncertain
It will be a fight among three major forces
which individually are unlikely to command an outright majority of seats in parliament
Detailed plans to enhance Italy’s lacklustre growth and reduce the worryingly high debt-to-GDP ratio are shockingly absent from the electoral debate
How will this electoral event affect the relationship between Italy and the EU ahead of important talks about the future of European governance
A hung parliament would lead to a lengthy and challenging discussion on some form of broad or narrow grand coalition that would bring together the mainstream parties
There is also a small but not negligible probability that anti-euro
anti-establishment parties will manage to get a better-than-expected result and then team up together to support a new government
How did Italy get to this point of political fragmentation and growing anti-European sentiment
Italy was among the most pro-euro countries in Europe
with a long history of being one of the staunchest advocates for further integration
only 59 Italians out of 100 were in favour of a European economic and monetary union with one single currency
It was the most Eurosceptic outcome among the countries participating in monetary union
This significant shift in attitude could be attributed to the three most problematic points in Italy’s relationship with Europe: fiscal policy
The prolonged and deep recession led Italy’s real GDP to contract by almost 10% between the pre-crisis peaks of the first quarter of 2008 to the trough of the first quarter of 2013
although it was still 5.7% below pre-crisis levels in the fourth quarter of 2017
the performance gap versus the Eurozone has widened to 13 percentage points
Unemployment moved from 5.7% in April 2007 to 13.0% in November 2014
The popular narrative is that Brussels contributed to deepening the crisis by forcing Italy to implement tight fiscal policies or so-called austerity
Under the pressure of financial markets during the European sovereign debt crisis
Italy increased the structural (cyclically-adjusted and net of one-offs) primary balance
which is the best measure of fiscal stance
with an almost 2.5 percentage point tightening in 2012 alone
since 2013 there has been a moderately expansionary policy
which has brought this metric down to 1.7% in 2017
the Italian government is unlikely to tackle the issue of the high debt-to-GDP ratio forcefully and decidedly
The Partito Democratico (Democratic Party) is mostly pro-European
although with some populist and anti-austerity flourishes (former PM Renzi repeatedly tried to increase the deficit leeway)
although the positive momentum has declined sharply
Berlusconi’s Forza Italia is mostly pro-European as well
The introduction of a parallel currency (Am-lire) was mainly Berlusconi’s idea
Plans to sharply reduce taxation and partly unwind the pension reform are in contradiction with the stated objective of a 4% primary surplus (against an estimated 1.5% in 2017)
Its overall stance towards the EU remains constructive
A Northern League-led government would make the stance towards the EU and the euro more problematic
and the introduction of a parallel currency (mini-bot) has not been dismissed
The Five Star Movement appears to have put aside the idea of a referendum on the euro and the proposal for a parallel currency
The fight against fiscal rules and the so-called European straightjacket would mount
Immigration is another major topic of the electoral campaign
especially following the shooting of Africans by a neo-Nazi in Macerata
Italy does not have a long tradition of welcoming foreign immigrants
despite all humanitarian efforts to save them in the crossing of the Mediterranean Sea
Foreign ‘regular’ residents accounted for only 8.3% of the population in 2016
that percentage goes up to 14.1% when looking at the 18-39 year age group
with a high concentration in Northern Italy and major cities
With a fertility rate of just 1.35% and the natality rate at 0.8%
a number which has steadily increased over the past few years – giving rise to concerns about a brain drain
Italy will desperately need skilled migrants as its population continues to shrink
The massive demographic shift and the socio-political implications that follow
makes the immigration issue all the more delicate
neither Italian nor European authorities have been able to provide adequate policies to tackle these difficult issues
Anti-establishment parties are calling for a massive change in policies
The Five Star Movement and far-right parties would seek to pull Italy out of the European Union if Brussels refuses to re-negotiate fiscal and immigration rules
Any such government would be off to a rocky start in the relationship with Brussels
putting much strain on Italy’s relationship with Brussels
Finding a solution to address the undercapitalised banking system burdened by a mountain of Non-Performing Loans
been exposed to bank bonds in the same way as in Italy
It is thus no surprise that banking issues have become political
Finding a solution to address the undercapitalised banking system
it remains a weak spot in the relationship with the EU
any mainstream government would be strongly supportive of a swift completion of the Banking Union
In the risk reduction-risk mutualisation equation
Italy can now put on the table an already achieved reduction in banks’ risk
It would probably be willing to compromise on a gradual and moderate reduction of the position in government bonds in the portfolio of banks
therefore opening up a possible compromise with Germany on the European Deposit Insurance Scheme
Italy’s long tradition of supporting pro-European policies and economic integration will likely be continued by any mainstream government
albeit with slightly different sensitivities and approaches
anti-establishment parties have pledged to fight for more sovereignty
which would put the country on a collision course with an idea of a more integrated Europe
Note: A shorter version of this article first appeared on the website of Europe’s World
not the position of EUROPP – European Politics and Policy or the London School of Economics
First Covid outside of China diagnosed there
The locality of Codogno in Italy unveiled a memorial in remembrance of victims of coronavirus and the community
the first COvid-19 positive outside of China
The site is close to the Red Cross premises in the area
The monument was blessed by the Bishop of Lodi Maurizio Malvestiti
He said that the pandemic was a test of solidarity amongst citizens
Bishop Malvestiti said that the monument is a symbol of starting a path towards healing
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A serious accident occurred at the Codogno station
where a person was hit by a regional train
The incident shocked the local community and led to an immediate interruption of rail traffic on the Milan-Piacenza line
The railway police intervened to carry out the necessary checks
while passengers were notified of the expected cancellations and delays
Train traffic was interrupted in both directions
creating significant disruption for commuters and travelers
Trains scheduled on the Codogno-Pavia route were cancelled
leaving many passengers waiting for information
Railway authorities have announced that services will resume as soon as the checks and safety operations on the line are completed
Incidents like the one in Codogno raise questions about the safety of railway infrastructure and the need to improve protection measures for passengers
The frequency of such events highlights the importance of constant vigilance and investment in technologies that can prevent similar situations in the future
The local community awaits answers and concrete measures to ensure the safety of all those who use the railway service
Notizie.it is a newspaper registered with the Court of Milan n.68 on 01/03/2018
Impara come descrivere lo scopo dell'immagine (si apre in una nuova scheda)
Lascia vuoto se l'immagine è puramente decorativa