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Italy approves aid for 2,000 million to compensate companies closed by the pandemic

Italy has given the green light during this morning of Friday to a new package worth 1.95 billion euros with the aim of supporting the companies affected by the recent containment measures of the coronavirus pandemic.

The Rome plan adds to the stimuli of up to 100,000 million euros that were already promoted by the Executive since March to curb the economic impact derived from covid 19.

Economic activities

The Italian legal text contemplates resources worth 1,450 million euros that will serve to support the economic activities that operate in the regions of the country with more risk and therefore with greater restrictions in their commercial hours.

The Government has asked the parliament to grant a deviation of 8,000 million in the budget

Another 400 million euros will go to municipalities, so that they can adopt urgent measures of food solidarity, and the remaining 100 million, to the Fund for national emergencies, in order to facilitate the purchase and distribution of medicines for the treatment of patients affected by the virus.

These new measures require a deviation of budget spending that Parliament will vote on next week. The Government has asked that the chambers grant it a deviation worth 8,000 million, which will be used to finance another aid plan.

The Minister of Economy, Roberto Gualtieri, has ensured that this new spending will not modify the deficit forecast for 2020, which will remain at 10.8% according to Rome’s calculations, since in recent months the State has obtained higher tax revenues than expected and the economy The country has experienced a recovery in the third quarter that has exceeded expectations.

Alarm status all year

Already in July, the Prime Minister of Italy, Giuseppe Conte, took for granted an extension of the state of emergency in force until July 31, in such a way that it will be in force until the end of the year to guarantee the adoption of possible measures against the coronavirus.

The Italian authorities decreed a state of emergency at the end of January, shortly after the first cases of Covid-19 were detected. During this time, Italy became the country in the world with the most infections, but in the second wave it has worked much better than Spain

Budget issues

The Italian Minister of Economy, Roberto Gualtieri, described this Friday as “inappropriate” the veto that Hungary and Poland have imposed on the budget of the European Union (EU) for 2021-2027 and the Recovery Fund, and hoped that it will be exceeded in December.

Italy plans to receive 209,000 million euros from this fund, of which almost 82,000 will be in the form of transactions and about 127,000 as credits

Gualtieri said in statements to the media that the European Union needs the aid of this recovery plan endowed with up to 750,000 million euros to recover from the crisis derived from the pandemic.

Italy will receive 209,000 million euros from this fund, of which almost 82,000 will be in the form of transactions and about 127,000 as credits.

Hungary and Poland have blocked the approval of the community budget for the years 2021-2027 and the post-covid recovery package, with a total volume of 1.8 trillion euros, after linking the collection of funds to respect for the rule of law.

Italy is developing its general budgets for next 2021 and its reform plan with which it aspires to obtain part of the European aid already in the first half of 2021, an essential amount for the country that, according to the Italian minister, will arrive “within the established deadline.”

“We are working hard and we are talking with the European Commission and also with other countries,” he said.

Stimulus packages

Since March, the Italian Government has approved several stimulus packages for a total value of 100,000 million that have served to mitigate the consequences of the coronavirus crisis and to help the companies, freelancers and families most affected.

He is currently working on a new plan of about 1,400 million euros that will serve to support the owners of restaurants and other businesses that have been penalized by recent closures or restrictions on their hours, measures with which Rome tries to stop the advance of the coronavirus in this second wave.

These aid will be added to the 5.4 billion euros approved on October 27 also for these entrepreneurs.

Among the actions that the Executive is studying is a suspension of tax obligations from which companies with a turnover of up to 50 million euros that have suffered losses of at least 33 percent can benefit.

The Government will have to approve a new spending deviation of between 7,000 and 10,000 million but, according to Gualtieri, it will not alter the deficit forecast by Rome for 2020 of 10.8%.