On Friday 19 March, the Council of Ministers, the Italian government’s executive organ, adopted the support decree (Decreto Sostegni), which features measures including an extension to the layoff freeze and the use of wage guarantee schemes due to the pandemic, as well as new funding for the so-called “citizens’ income” and “emergency income” for those in need, and non-repayable support for small and medium-sized companies, very small entities and entrepreneurs. Overall, Mario Draghi’s government is to fork out some €32 billion, of which €8 billion will go towards supporting jobs and fighting poverty.
Layoff freeze. The ban on economic redundancies, that has been in place since 2020, was one of the flagship measures of the previous Italian government. With companies calling for the ban to be lifted and trade unions demanding it be extended, the Draghi government has adopted for a staggered timetable. For companies using the regular cassa integrazione (wage guarantee fund), a technical unemployment scheme funded by social contributions, notably firms in the industry and agriculture sectors, the layoff freeze has been extended to 30 June.
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