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The Council of Ministers approved the so-called “provisioning decree” to compensate for the measures decided by the government with the last DPCM to try to contain the new increase in coronavirus cases. The approval was announced by Prime Minister Giuseppe Conte and the content of the decree was explained during a press conference organized at Palazzo Chigi: in addition to Conte, the Minister of Economy and Finance, Roberto Gualtieri, and the Minister of Economic Development were present. . Stefano Patuanelli.
The decree, Conte said, “provides for the allocation of more than 5,000 million euros to provide immediate resources for the benefit of the categories of economic operators and workers affected by the restrictive measures of the last Decree of the Prime Minister.” Minister Gualtieri specified that the decree “mobilizes a substantial mass of resources: 5,400 million in terms of net debt, 6,200 million in terms of the net balance to be financed.” Then he spoke of a decree “marked by speed, simplicity and efficiency: we are aware that restrictive measures have forced many traders, many economic categories to change plans and perspectives, that is why we have chosen the simplest and fastest ways to have dinner and we have decided to strengthen them over the past. “
One of the most striking items of the decree, worth 2,400 million euros, is the allocation of non-reimbursable aid for activities that are closed or with reduced hours after the last DPCM decided by the Government. The procedure was already foreseen in the “relaunch decree” of last May. On this occasion, however, companies with a turnover of more than 5 million euros will also be included and the compensation will be higher than those previously paid, reaching even four times more.
The compensation will be diversified according to the type of activity identified according to the Ateco codes and will be calculated based on the decrease in billing and the amount collected in the last months after the first closing.
The non-refundable subsidy will be paid automatically “in mid-November”, Conte said, to the more than 300,000 companies in the sectors affected by the Prime Minister’s Decree and who had already had it in recent months. For those who have already received the contribution, the new one will be paid by the Tax Agency by direct payment to the bank or postal current account in which the previous one was paid. Activities that have not yet applied for the non-reimbursable grant can also apply: in this case, the deadline for disbursement is mid-December.
“For completely closed sectors such as gyms, swimming pools, theaters, cinemas, the amount doubles”, said Stefano Patuanelli: “Many restaurants open only at night, they lose much more than half of their income, even for these after Compared to categories, we have decided to apply the coefficient of 200 percent. 150 percent will go to pastry shops, ice cream parlors. “Conte also gave some examples:” A small bar that had obtained 2,000 euros of soft drinks with the “relaunch decree” Now you will be able to obtain 3,000 euros, a large restaurant that would have received 13,000 euros may have up to 26,000 euros, a small gym that would have received 2,000 euros with the relaunch decree will be able to obtain 4,000 euros. “Hotels, taxis and NCC are included in the grant,” Gualtieri said.
In addition to the non-refundable fund, the decree also contains other measures. The deadline in which it is possible to request layoffs, the main social safety net used to continue paying the salaries of workers who stay at home or work part-time due to the crisis, has been extended by another six weeks. The six weeks can be used until January 31, 2021. In support of the affected activities, the exemption of the second installment of the IMU is foreseen, which expires on December 16. The rental tax credit will be extended to the months of October, November and December and will be extended to companies with revenues of more than 5 million euros that have suffered a 50 percent drop in turnover. The related credit can be transferred to the property owner.
The decree, Conte explained, “also provides for the suspension of contribution payments related to workers for the month of November”: in the government statement it is specified that the agricultural sector is excluded from the measure and that those who have suspended or reduced due to emergency for a maximum period of 4 months. The exemption is determined on the basis of turnover loss and is equal to 50 percent of social security contributions for employers who have suffered a turnover reduction of less than 20 percent; 100 percent of social security contributions for employers who have suffered a reduction in turnover equal to or greater than 20 percent.
The decree contains specific measures for workers in entertainment and tourism. An allowance of € 1,000 is provided for all freelancers and intermittent entertainment workers; the expansion of the redundancy fund and special allocations for the tourism sector. A total of one billion was also allocated to support certain affected sectors: 400 million for travel agencies and tour operators; 100 million for publications, fairs and conferences; 100 million euros for aid to the hotel and spa sector; 400 million euros for export aid and international fairs.
The decree recognizes compensation to all workers in the sports sector who have already received the compensation provided for by the “Cura Italia” and “Relaunch” decrees: the amount was increased from 600 to 800 euros. To cope with the difficulties of amateur sports clubs and associations, a special fund has been created for the Sports Department. The fund is financed with € 50 million for 2020. A € 100 million fund was then created to support companies in the agricultural sector.
Summarizing the content of the decree, Conte, Gualtieri and Patuanelli also referred to two new monthly payments of emergency income, destined to help those families not covered by the current subsidies, such as income from citizenship.
Finally, the Minister of Economy explained that “there are resources to allow the administration of 2 million tampons in November and December, to strengthen contact tracing” and to support distance learning in schools.
Patuanelli, in his speech, thanked “those who took to the streets to oppose the decree of the Prime Minister by pointing out the desire of Italians to continue producing, to provide work, to do their business.” Conte, responding to a journalist’s question, said that “the drift in terms of violence we certainly cannot share, but all decent Italians cannot share it. (…) Violence generates violence and does not lead to anything good. Conte also said that the government elections “can be legitimately criticized, we are in a democracy. But I want to say that we have not made indiscriminate decisions. To prevent the curve from escaping us, it is essential to reduce the main social opportunities. Only in this way can we decongest public transport, avoid crowds, lighten the monitoring system (…) We have not closed activities that we consider less important than others, there are no Series A and Series B activities ». Answering a question about the possibility of introducing capital, he finally explained: “Our effort is not to introduce new taxes, we are making an incredible effort not to introduce new taxes, this is already a great result.”
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