Background information

The COVID-19 crisis has hit the automotive sector by triggering a decline in sales of automobiles over the last year. In order to sustain and relaunch the industry, the Government has provided economic incentives for the purchase of cars for private and commercial and, specifically, for cars with low CO2 emissions.

Content of measure

The Law no. 145, issued on 30 December 2018, i.e. the State budget law for the financial year 2019 and for the multi-year budget for the three-year period 2019-2021, introduced, for the very first time and on an experimental basis, an economic incentive for the purchase of automobiles with low CO2 emissions (article 1, c. 1031).

In this first formulation, the measure aimed to reduce the emissions and to safeguard the environment, within a broader European green policy. To this purpose, the law established at the Ministry of Economic Development a specific fund with an endowment of €60 million for the year 2019 and €70 million for each of the years 2020 and 2021,which constitute the expense threshold for granting the benefit (article 1, c. 1041).

Given the success of the initiative, when the pandemic crisis hit the automotive sector, the Government substantially increased the endowment of the fund for the year 2021. The Law no. 178, issue on 30 December 2020, i.e. the State budget law for the financial year 2021, provided for a further increase of the fund amounting to €420 million to incentivise the purchase of automobiles.

Use of measure

Not available.

Target groups

Workers	Businesses	Citizens
Does not apply to workers	Sector specific set of companies	Applies to all citizens

Actors and funding

Actors	Funding
National government	National funds

Social partners

Social partners' role in designing the measure and form of involvement:

	Trade unions	Employers' organisations
Role	No involvement as case not in social partner domain	No involvement as case not in social partner domain
Form	Not applicable	Not applicable

Social partners' role in the implementation, monitoring and assessment phase:

• No involvement
• Main level of involvement: N/A

Involvement

The social partners have not been involved.

Views and reactions

The social partners have not been involved.

Sectors and occupations

This case is not occupation-specific.

Sources

• 30 December 2018: Law no. 145 issued on 30 December 2018 (www.gazzettaufficiale.it)
• 30 December 2020: Law no. 178 issued on 30 December 2020 (www.gazzettaufficiale.it)