Coronavirus emergency: "A 750 billion euro firepower"

Firepower of 750 billion: 200 billion loan guarantees and 200 billion for exports add to the 350 already foreseen, with the arrival of up to 100% coverage for loans up to 800 thousand euros. The postponement of tax deadlines for companies damaged by the crisis. The strengthening of the golden power, the shield to protect Italian companies from hostile takeovers. The postponement of regional and municipal elections to autumn. The closure of the courts until 11 May. The main measures of the "liquidity decree" passed yesterday by the government.

So the Prime Minister, Giuseppe Conte live to unified networks: “With the decree just approved, we are giving immediate liquidity of € 400 billion to our companies, € 200 for the internal market, another € 200 to strengthen the export market. It's a firepower". When everything is over there will be a new spring and soon we will reap the fruits of these sacrifices".

Italian Prime Minister Conte together with the Minister of Economy Roberto Gualtieri and the holder of the Mise, Stefano Patuanelli they detailed the measures deriving from the measure just signed.

It is a shock measure,  followed by another decree to save the school year in the non-remote event that schools remain closed even after May 18. No middle school exam, only oral telematic maturity, in the other classes all promoted.

The launch of the decretone "shock" brought out knots within the government majority. They concern the issue of liquidity for businesses. On guarantees Italy alive, without going to veto, it keeps its pressure constant so that they are 100% for everyone - but EU legislation allows it up to 800 thousand euros - in order to speed up bank practices.

The tension is palpable when discussing the role that Sace will have in giving those guarantees. Gualtieri would like to give the Ministry of Economy the power to direct on Sace, although the company will continue to report to Cassa Depositi e Prestiti.

The M5s opposes it and Luigi Di Maio claims that the Ministry of Foreign Affairs there remains competence over the role that Sace will play in supporting export and internationalization of companies.

Il school decreeinstead, it passes the examination of the Council of Ministers easily. Recruitment of 4500 professors to replace those who retired after 100.

The Council of Ministers started at 12.00 but was suspended suddenly due to the tensions on the liquidity decree and then resumed at 19.00. The afternoon served to bring all the actors to milder reactions and converge on a solution, as far as possible, shared by all.

In the late afternoon the turning point, after yet another summit, the agreement: the foreign ministry continues to play a role and by 2020 50 billion export guarantees should arrive, plus 200 billion in 2021 for new investments.

As for the 200 billion guarantees to allow companies to obtain bank loans, they will be bound by the obligations not to lay off or transfer production abroad. The guarantees will be 90% for large companies, 100% for self-employed and small businesses asking for up to 25 thousand euros, 100% (but with 90% state guarantee and 10% Confidi) up to 800.000 euros , 90% up to 5 million.

Funds also arrive for the Commissioner Dominic Arcuri, to find masks and other sanitary tools.

Postponement of tax deadlines

From postponing tax deadlines for companies damaged by the crisis, to 50% relief for the purchase of masks. After Easter, another decree of over 35 billion will come to support workers and families. But in the meantime, starting from the injection of liquidity, we are thinking of how to restart the country's economic engine.

The 2 Phase

This afternoon Prime Minister Conte will see the technical-scientific committee to start thinking about phase 2, after April 13 with gradual and partial reopening of activities.

The control room

The establishment of a control room with local authorities and social partners, wanted by the Democratic Party, but unwelcome to the M5s. In that control room, while the tensions between Tale and the Lombard Attilio Fontana, the governor of Veneto could enter Luca Zaia.

The reaction of the oppositions

Lega, Forza Italia and Fratelli d'Italia confirm the lack of listening to the government and promise to go ahead with their amendments to the Cura Italia decree.

Coronavirus emergency: "A 750 billion euro firepower"