Italy announces aid of 5.4 billion to quell protests from companies affected by closures

Protests in Milan held on Wednesday to demand more aid for the sectors affected by the closure decreed by the Italian Government.ANDREA FASANI / EFE

The Italian Government repeats over and over again that its objective in this health emergency, in addition to protecting the health of citizens, is to safeguard the economic fabric of the country, which has been severely punished in recent years.

Therefore, his intention is to avoid a second confinement at all costs.

To contain the exponential increase in cases, the Executive of Giuseppe Conte has decreed partial restrictions, such as the closure of cinemas, theaters and gyms and the closure of bars and restaurants at six in the afternoon, among the protests of the affected sectors.

Now it has approved a package of aid worth 5,400 million euros for the affected companies.

The government announced the restrictions on Sunday, which mainly affect restaurants and culture.

And on Tuesday night he unlocked the aid package.

In that time interval, protests were unleashed in several cities across the country by restaurant owners, taxi drivers, gym workers, and cinemas and theaters.

The Minister of Economic Development, Stefano Patuanelli, thanked those who "took to the streets to oppose the government decree, signaling the desire of Italians to continue producing, creating jobs and doing business."

The Prime Minister, Giuseppe Conte, insisted that "the closures have not been indiscriminate" and explained that "to prevent the curve from getting out of hand it is necessary to reduce the main occasions for socialization."

He also announced that the aid will automatically go to companies that have already applied for financing in recent months and said that by "mid-November" they will have received the money.

In the past, the Government has received numerous complaints about the extensive bureaucracy and the long time to receive the subsidies.

The Minister of Economy, Roberto Gualtieri pointed out that this decree is marked by "speed, simplicity and efficiency."

And he explained: "We are aware that the restrictions have forced many entrepreneurs to change their plans and perspectives, that is why we have opted for simpler and faster support measures and we have decided to reinforce them."

The highlight of the new decree is the departure of 2,400 million euros for non-refundable aid for activities closed for at least one month due to the new restrictions approved by the Government or that must reduce their hours.

On this occasion, unlike the previous ones, it will also include those companies with a turnover of more than five million euros.

According to Gualtieri, more than 300,000 companies will benefit from these contributions and will obtain "higher amounts" than those received in aid in the past months, up to a maximum of 150,000 euros.

The activities that have not requested these subsidies in the previous phases of the emergency and need them now will be able to start collecting them in mid-December, according to the minister.

As an example, he spoke of a restaurant with a turnover of up to 400,000 euros, and that may receive 5,173 euros from the State, while those that bill more than five million will have up to 25,000 euros.

Completely closed gyms, swimming pools, cinemas and theaters will be able to receive up to 200% more than in previous months with the previous stimulus packages;

and the bars and restaurants that must reduce their hours will receive up to 150% more.

In addition, the new decree will also allow the temporary suspension of the payment of the tax obligations of the companies and the system of temporary unemployment that is used in Italy is extended until January 31, similar to the Temporary Records of Employment Regulation (ERTE).

The Government's plan will also allow the purchase of two million coronavirus detection tests for the months of November and December and strengthen the tracking systems.

There will also be aid for sports workers, who will receive up to 800 euros, and for culture.

In this sense, the Minister of Culture and Tourism, Dario Franceschini, announced in a statement that more than 1,000 million will go to culture and tourism.

A fund of 100 million euros has also been created to support companies in the agricultural sector.

And the emergency fund for families that are not covered by any type of subsidy will be extended for two more months.