ROME (Reuters) – Italy published late on Tuesday the details of its latest spending package to help families and firms hit by the new coronavirus.
Following are some of the key measures in the emergency decree, which will raise Italy’s budget deficit by 55 billion euros ($60.20 billion):
FOR COMPANIES
– The government promises to accelerated payment of 12 billion euros of outstanding bills to public sector suppliers.
– Scraps the payment of a regional tax on businesses (IRAP) scheduled for June, costing the state 4 billion euros. Applies only to firms with annual revenues of up to 250 million euros.
– Offers 6 billion euros of grants to small companies.
– Creates an equity fund to enable state lender Cassa Depositi e Prestiti (CDP) to help strategic companies.
– Offers state guarantees for up to 19 billion euros of new bonds issued by Italian banks.
– Offers state aid aimed at encouraging healthy lenders to take over small failing banks.
– Presents various measures for struggling carrier Alitalia, including a 3-billion-euro state-backed cash injection.
FOR WORKERS/FAMILIES
– More than 15 billion euros for temporary lay-off schemes, to help firms furlough staff rather than sack them. All firing procedures suspended until mid-August.
– Grants for families to pay for childcare. Tax credit to encourage people to go on holiday in Italy.
– A compensation scheme offering 600 euros to self-employed people whose turnover was hit by the coronavirus lockdown.
– Support of 400-840 euros per month for a maximum of two months for people with no work or pension income.
– Up to 500 euros encourage people to buy bicycles and electric scooters.
OTHER MEASURES
– Tax breaks for home improvements to reduce energy consumption and comply with anti-seismic rules. For every 100 euros spent from July 2020 to end-2021, Rome will refund 110 euros over five years.
– Temporary work permits for migrants enabling them to seek jobs on farms and as carers.
– The decree cancels automatic increases in sales taxes due in 2021 and following years.
– It also postpones until 2021 the introduction of a planned tax on plastic and sugary drinks.
– More than 3 billion euros set aside for the health sector, including money for hiring doctors and nurses.
($1 = 0.9171 euros)
(Reporting by Giuseppe Fonte, editing by Gavin Jones)
