Eurofound's EU PolicyWatch collates information on the responses of government and social partners to the COVID-19 crisis, the war in Ukraine, rising inflation, as well as gathering examples of company practices aimed at mitigating the social and economic impacts.
Factsheet for measure IT-2020-21/1001 – Updated – measures in Italy
|Country||Italy , applies nationwide|
|Time period||Open ended, started on 19 May 2020|
|Type||Legislations or other statutory regulations|
Supporting businesses to stay afloat
– Direct subsidies (full or partial)
|Author||Lisa Dorigatti (University of Milan) and Eurofound|
|Measure added||15 July 2020 (updated 03 November 2020)|
Law Decree No. 34 of 19 May 2020 (art. 25) introduced a direct subsidy to those business activities which have experienced a reduction in revenues of at least two thirds due to the COVID-19 pandemic. The amount of the subsidy depends on the total revenues of the business in 2019, and ranges between 10% and 20%.
A direct subsidy for businesses experiencing a reduction in revenues due to the COVID-19 pandemic was introduced by Law Decree No. 34 of 19 May 2020. The subsidy is due provided that revenues in April 2020 are less than two thirds of the amount of revenues in April 2019 or to those businesses which have started their activities after 31 December 2018.
Eligible are individuals carrying out business and self-employment activities, holders of VAT number, including companies carrying out agricultural or commercial activities, even if carried out in the form of a cooperative enterprise, with turnover in the last tax period of less than €5 million.
The amount of the subsidy is determined as a percentage of the difference in revenues for April 2020 compared to April 2019 as follows:
The amount of the subsidy is recognized, however, for an amount of not less than €1,000 for natural persons and €2,000 for subjects other than natural.
During a hearing in the Finance Committee at the Chamber of Deputies on 24 June 2020, the director of the tax administration agency (Agenzia delle Entrate) reported that over 915,000 applications for the subsidy were already presented. Payments of the first 203,000 requests, for a total amount of €730 million have already started.
|Does not apply to workers||Applies to all businesses||Does not apply to citizens|
Social partners' role in designing the measure and form of involvement:
|Trade unions||Employers' organisations|
|Role||No involvement||No involvement|
|Form||Not applicable||Not applicable|
Social partners' role in the implementation, monitoring and assessment phase:
Social partners were not involved in designing, implementing and monitoring the measure
Employer associations, and in particular Confindustria, are criticising the Government for its intervention in support of businesses, considered too slow and fragmented.
Eurofound (2020), Direct subsidy to companies, measure IT-2020-21/1001 (measures in Italy), EU PolicyWatch, Dublin, https://static.eurofound.europa.eu/covid19db/cases/IT-2020-21_1001.html
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Disclaimer: This information has not been subject to the full Eurofound evaluation, editorial and publication process.