Background information

The prolonged COVID-19 emergency and the related closures have deeply affected the economic activities operating in the textile and fashion industry. More specifically, the prevention and containment measures adopted had negative effects on final inventories in the sectors characterised by seasonality and obsolescence of the products, as the textile products. Accordingly, specific measures have been adopted to contain such negative effects by the Law Decree no. 34, issued on 19 May 2020 (article 48bis), and modified by the Law Decree no. 73, issued on 25 May 2021 (article 8).

Content of measure

The Law Decree no. 34, issued on 19 May 2020 (article 48bis), recognised a contribution in the form of a tax credit, amounting to the 30% of the value of the final inventories in the sectors characterised by seasonality and obsolescence of the products as the textile and the fashion industries. Specifically, subjects carrying out business activities operating in the textile and fashion industry, footwear and leather goods production (textile, fashion and accessories sector) are eligible. The tax credit is recognised up to the usage of the maximum amount of €45 million for the year 2021. The Law Decree no. 73, issued on 25 May 2021 (article 8), extended the maximum threshold to be spent for this measure, amounting to €95 million for the year 2021 and €150 million for the year 2022.

Use of measure

Data or estimation on the use of the measures are not available yet.

Target groups

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

The social partners have not been involved.

Views and reactions

The social partners have not been involved. They are expected to be fully supportive.

Sectors and occupations

This case is not occupation-specific.

Sources

• 19 May 2020: Law Decree No. 34 of 2020 (www.gazzettaufficiale.it)
• 25 May 2021: Law Decree no. 73/2021 (www.gazzettaufficiale.it)