The announcement came after Conte decreed a nationwide lockdown and ordered the closure of all stores apart from pharmacies and food shops to counter the spread of the virus.
Economy Minister Roberto Gualtieri said “half of these resources” would be used immediately and the other half reserved and drawn on should the health crisis spiral out of control.
Part of the money will help restaurants and hotels now suffering the brunt of an implosion in the number of tourists, as streets and major landmarks across the nation have become completely deserted.
“We are preparing rules to protect companies, workers and families,” Labour Minister Nunzia Catalfo said.
The new plan must still be approved by the leaders of European Union under the bloc’s strict budget deficit rules for its 27 member states.
Officials in Brussels had been ready to let Italy spend more than it was technically allowed when its request stood at €7.5 billion last week.
The government also further discussed a proposal to let families temporarily suspend some mortgage and social tax payments.
Gualtieri said “partial state guarantees” were being discussed to help Italy’s creaking banks survive a resulting cash crunch.
The coronavirus has killed 827 people and infected more than 12,000 in Italy.
