“DL supports” at a snail's pace

The money will arrive three and a half months late

If there are no new hitches, the resources made available by the “Sostegni decree” will reach businesses and self-employed workers immediately after Easter. Basically, they will be credited to the current account of the activities concerned at least 3 and a half months after the closures imposed last December by the then Conte government. Therefore, this money, made available by the budget gap of last January, will reach its "destination" certainly not with the timeliness that the situation would require, but at a snail's pace.

It is evident that the lack of immediacy in the allocation of compensation is a problem that has not yet been resolved, the CGIA Studies Office said. If one year after the start of the pandemic it is still necessary to wait so long, it is clear that the "machine" needs to be fine-tuned.

With the roles reversed, what would have happened?

Undoubtedly, the innovations that have occurred in recent months have been many and all have contributed to lengthening the time for disbursement of aid. In summary:

Parliament voted on the € 32 billion budget deviation¹ last January 20;
the government crisis ended in the second half of last February with a new majority and the replacement of the Premier;
Compared to the "Refreshments decrees" approved in the second half of 2020, with this first economic measure taken by the Draghi government, the method of calculating compensation was changed, finally abandoning the logic of the ATECO codes.

If, paradoxically, we reversed the roles, it would have been possible for a company to pay taxes to the Treasury with at least 3,5 months of delay due to a quarrel between shareholders such as to lead to the replacement of the CEO and without paying any penalty for late payment? We have very good reasons in believing that, objectively, this could not have happened.

Why was the 32 billion difference not included in the Finance Act?

We recall that the € 32 billion budget gap in support of households and businesses was approved by Parliament on 20 January last; practically three weeks after the approval of the Budget Law which, published in the Official Gazette on 31 December last, is worth 40 billion euros. A measure, that of the deviation, which was voted unanimously by all the parliamentary groups present both in the Chamber and in the Senate. Well, the question that many small operators in difficulty ask themselves is: by the end of 2020, none of the majority of the time was aware that following the closures imposed previously there was the need to include these support measures within the budget , instead of doing an intervention and following the best practices after only 20 days? We recall that in mid-January the number of infections was decreasing throughout the country and in those weeks all the regions were reopening school activities in the presence. In short, we were in a phase in which Covid had loosened its grip. Therefore, it is indisputable that the resources made available with the vote of 20 January are intended to compensate for the damage caused by the pre-Christmas closures. And again: we are not talking about a marginal measure, but an intervention of 32 billion which amounts to 80 percent of the economic dimension of the 2021 Budget Law. An "oversight" that has culpably lengthened the time with which we will support companies affected by Covid.

Completely insufficient support: another 20 billion is coming which will not be enough

As we have reported above, the delay in the timing of the disbursement of these resources appears completely unjustifiable. Companies, especially small and micro companies, cannot wait that long. The collapse of turnover and the consequent lack of liquidity suffered in recent months are in fact pushing towards the abyss many economic operators who risk receiving their money after the deadline, that is, after many of these have definitively ceased their activity. And that these 32 billion were also completely insufficient it was understood from the beginning. Proof of this is that, for some weeks now, simulations of a possible new budget deficit of at least 20 billion euros have been circulating in the offices of the Ministry of Economy and Finance, which could be approved by the two Chambers in the coming weeks. It is evident that even this amount appears small if we compare it to the size of the losses suffered by companies and by the whole world of self-employment. For this it is necessary to make a further effort, approving compensation measures that reach at least 50 billion euros.

The sectors most in trouble

Excluding restaurants, bars, hotels and the activities that revolve around the tourism sector, mostly closed due to the confinement measures in progress, the CGIA lists the sectors that more than the others are in trouble and ask for particular economic support. . They are:

“Trade fair” / street vendors, especially those with parking spaces in the areas affected by events and stadiums;

cultural and entertainment activities (cinemas, museums and theaters);

retail trade (especially clothing and footwear);

personal care (barbers, hairdressers and beauty centers);

events (concerts, congresses, weddings, ceremonies, etc.);

sports, leisure and entertainment: such as gyms, swimming pools, discos, village parties, amusement and theme parks (including traveling show activities);

people transport (taxi, car rental with driver and bus operator).

With closed hairdressers, squatters are rampant in the "red areas"

Unsurprisingly, in the 11 regions that are currently in the "red zone", illegal work and illegal activities proliferate. One of the most affected sectors is certainly the wellness sector. The closure by decree of beauty centers, barbers and hairdressers has given a big boost to those who - armed with creams, razor blades, scissors and with a hairdryer in a briefcase - go around private homes practicing these activities illegally, violating any limitation to mobility and all safety regulations. In addition to denouncing the lack of controls by the police, the CGIA reports that the paradoxical thing about this whole affair is that the stop imposed on regular activities - where everything was tracked, we worked only by appointment, there were no gatherings and each operation was subjected to rigorous hygiene protocols introduced well before the advent of Covid - now leaves huge spaces for squatters who quietly roam the homes of customers. A scourge, that of illegal work, which approaching the Easter holidays is destined to further increase and represents not only unfair competition against professionals in this sector, but also a major risk for the protection of public health.