Background information

In order to support businesses and professionals from the economic consequences of the COVID-19 epidemiological emergency and to rationalise previous supports, Law Decree No. 41 of 22 March 2021 introduced a non-repayable contribution based on the reduction of registered revenues, eliminating all references to sectors of economic activity which characterised previous support instruments.

Content of measure

The non-repayable economic support is granted to those businesses and individuals that have suffered a reduction in their average monthly turnover for the year 2020 of at least 30 percent in comparison to their average monthly turnover for the year 2019. The amount of the contribution is determined as a percentage of the experienced difference in turnover:

• 60% for individuals and businesses with turnover not exceeding €100,000;
• 50% for individuals and businesses with turnover from €100,000 to €400,000;
• 40% for individuals and businesses with turnover from €400,000 to €1 million;
• 30% for individuals and businesses with turnover from €1 million to €5 million;
• 20% for individuals and businesses with turnover from €5 million to €10 million.

In any case, this amount cannot be less than €1,000 for individuals and €2,000 for other subjects and cannot exceed €150,000.

The contribution can be paid by bank transfer directly to the current account in the name of the beneficiary or as a tax credit, to be used exclusively in compensation.

For this measure, Decree Law No. 41 of 22 March 2021 allocated €11 billion.

Use of measure

Not yet available.

Target groups

Workers	Businesses	Citizens
Self-employed	Applies to all businesses	Does not apply to 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	No involvement
Form	Not applicable	Not applicable

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

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

Involvement

No involvement in drafting the measure

Views and reactions

According to the employer association Confindustria, in the new system of supports there are "positive news" compared to the previous Law Decrees (such as the overcoming of the determination of economic sectors which could accede benefits - Ateco codes - and the raising of the access threshold from 5 to 10 million in turnover), but the system is still not "targeted" to support the companies that have suffered the greatest losses.

Sources

• 22 March 2021: DECRETO-LEGGE 22 marzo 2021, n. 41 Misure urgenti in materia di sostegno alle imprese e agli operatori economici, di lavoro, salute e servizi territoriali, connesse all'emergenza da COVID-19 (www.gazzettaufficiale.it)