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ECONOMY

What will be in Italy’s August emergency decree?

With the Italian government set to announce its latest set of measures under another emergency decree, here's what we know so far.

What will be in Italy's August emergency decree?
August typically marks the start of Italy's peak holiday season - and this year, a new emergency decree. Photo: Marco Bertorello/AFP

After the current set of rules expired on July 31st, Italy is due to launch a new emergency decree, or DPCM (Decreto del presidente del consiglio, or prime minister's decree).

The Italian government has already extended the current state of emergency until October 15th, which means it can now get on with drafting the decreto agosto, or August decree.

READ ALSO: What is Italy's 'state of emergency' and why has it been extended?

While many people hope some of the current rules may be revised – including travel restrictions – so far it looks likely that many of the existing measures will remain in place, with the government urging people to remain cautious.

The August decree is widely expected to be focused on supporting businesses as well as funding labour protection and social security measures, with Italy now facing its “worst recession since World War Two”.

Italy's Prime Minister Giuseppe Conte (L) and Finance and Economy Minister Roberto Gualtieri. Photo: Filippo Monteforte/AFP

At a hearing at the joint budget committees of the Chamber and the Senate, Italy's Finance Minister, Roberto Gualtieri, said the money will be allocated to schools, local authorities, employees and businesses: in particular the automotive and tourism sectors.

Measures for businesses include consumer spending bonuses, social distancing incentives for hiring new employees, financial support for those returning to work, and support for employees to continue “smart working”, or working from home. The package of measures will cost an estimated €25 billion, ministers said.

The decree is also expected to lay out which safety precautions – notably mandatory face masks, social distancing on transport and limits on public gatherings – will continue.

The full contents of the new decree were expected to be announced in a speech by the prime minister in the first week of August, though Italian media now reports that it won't come into force until August 10th.

As yet nothing has been officially confirmed. But for now, here's what we know about the main policies likely to be included.

Face masks to remain compulsory

Wearing a face mask in enclosed public spaces, including shops and public transport, is expected to remain mandatory throughout Italy until at least the end of August, reports say.

Social distancing on public transport
 
Trains and buses don't look set to travel full anytime soon, after the government ordered rail operators to keep at least half their seats empty.
 
Some companies had been planning to relax social distancing requirements after the last decree expired at the end of July, but the Health Ministry insisted that passengers should continue to sit at least a metre apart and never face to face.
 
 
The government is expected to keep the requirement in place for trains, buses and metros in its new decree, despite opposition from some regional governors.
 

Photo: Andreas Solaro/AFP
 
Cruises to resume
 
The government wants to restart the cruise industry later in August, Health Minister Roberto Speranza told the senate. 
 
It's not clear when ships will be allowed to sail again, or how many people they'll be permitted to carry.
 
Football without fans and no nightclubs
 
While some were hoping Italy might allow spectators to return to stadiums again, the government's medical advisors are opposed to the idea. That means that Serie A matches will probably continue to be played without the crowds for the foreseeable future.
 
The experts have also advised the government to keep its limits on other public gatherings in place, according to reports, namely no more than 200 people allowed in any concert halls or other indoor venues, and maximum 1,000 outdoors.
 
Nightclubs are expected to remain closed, but trade fairs could be allowed to resume with safety measures in place.
 
 
Discounts for paying by card
 
Italy has been trying to encourage the use of cards instead of cash for a while, hoping it will make payments more traceable and help crack down on tax evasion. And since the lockdown it's also hoping to boost consumer spending, especially in restaurants and other city centre businesses emptied out by a lack of tourists and locals working from home. 
 
The government is rumoured to be considering killing two birds with one stone by offering incentives to people who make consumer purchases by card. The scheme could take the form of money back, either refunded directly to your bank account or in the form of a tax credit. 
 
At least €2 million has reportedly been allocated to the scheme.
 

Photo: Marco Bertorello/AFP
 
Overtime for doctors
 
Doctors and nurses in the national health service will be offered overtime to catch up on check-ups, screenings, surgeries and other appointments that were cancelled at the height of the pandemic. 
 
The new decree allocates an extra €480 million to pay for the extra hours and allows regions to up their health spending, according to a draft seen by news agency Ansa.
 
Employee furlough scheme to continue
 
One of the most-discussed policies set to be included in the new decree is the extension of the cassa integrazione (CIG), a policy preventing businesses from laying off employees by covering part of the salary – similar to the furlough schemes implemented in the UK and elsewhere.
 
This could continue for another 18 weeks under the new decree, according to Italian media reports.
 
However, under the new decree it may only be extended for companies which have recorded a year-on-year drop in turnover of more than 20 percent.
 
 
Delayed tax collections
 
Under measures provided in previous decrees Italian taxpayers have been able to defer tax payments due this year. This is expected to continue, and tax collections could be delayed until mid-October under the new decree. 
 
There are currently some six million “suspended” tax bills in Italy, according to Italian financial website Money.it.
 
Hotels, B&Bs, campsites and beach bars are also expected to get extra time to pay the second instalment of their IMU property tax. 
 
Extension of unemployment benefits
 
Unemployment support payments for those who have lost jobs during the crisis were set to end in August, but this policy now looks likely to remain in place for another two months. This has not been confirmed, however.
 
 
600-euro payments for (some) self-employed workers
 
The 600-euro emergency payments introduced to help the self-employed  hit by the crisis is expected to stay in place – but only for those working in the two worst-hit sectors; tourism and unemployment, according to Labour Minister Nunzia Catalfo, Italian media reports.
 
 

Mortgage moratorium 
 
The government is reportedly assessing an extension to the policy of allowing homeowners to defer mortgage payments.
 
“Many families are still in economic difficulties due to the employment crisis and drop in turnover for businesses, so the extension – although not yet confirmed – would seem plausible,” writes Money.it
 
There are no reported discussions of any policy allowing  tenants to defer their rent payments, however.

Member comments

  1. We made it to Italy from the U.S. last week, and we are just finishing our first week of isolation. We booked a nonstop on Alitalia from Boston to Rome. We really had very few problems, but the fact that we own a home in Italy, plus we have Italian passports, may have “greased the wheels” for us. We did run into the situation that the declaration forms had changed a few days before our flight, so they gave us new ones to fill out. In Boston, we were told to put both of our names on the form, but the police in Rome didn’t like that. We walked back to the line entrance and filled out new forms at a table with a bunch of other people. They had stacks of forms in both Italian and English. I made sure we had proof of home ownership and photos of the water-damaged walls, which is the reason I gave for traveling, but no one ever asked questions or to see our supporting documents–just the declaration form. Now, we take our temperatures twice a day and email the numbers to the local health department. Next week, they will send someone out to give us a Covid test. We have friends who are hoping to travel to Italy next week. They are also homeowners and they have the permesso di soggiorno, so we’ll see what happens to them. Our other friends and homeowners are trying to come in September, but they have only American passports. The rules are very confusing, and it’s true, the airlines seem to be the gatekeepers. We’ve received confirmation from both a consulate and the Office of Foreign Affairs that every homeowner is allowed to “return home”, but the airlines seem to have their own rules. Our story may not be helpful to others, but I’ll let you know what happens to our friends.

  2. We flew from JFK last week to Rome, then on to Sardinia on Alitalia. We registered with the Sardegna Sicura app as residents of Sardinia and received permission by email and on the app to enter Sardinia. We had to confirm our trip within 48 hours of our return. The app includes the Covid declaration.
    To board in New York, we had our temperature taken, “new Covid forms” committing to 14 days quarantine, and presentation of our Italian /EU residency documents.(my understanding of the rules is that freedom to travel is based on Italian/EU residency, rather than citizenship and / or property ownership).Boarding passes were issued based upon our US passports.
    Entry in Rome required new “Covid 19” forms. Boarding to Sardinia was a temperature check and another check upon arrival. We had to present out US Passports and Italian residency documents in Rome to enter.
    While in quarantine, there have been no official checks. However we are in a small town and we know the police and they know us well. There is also contact tracing with the Sardegna Sicura app.
    I hope this is helpful

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MONEY

The verdict: What are the best banks for foreigners in Italy?

Picking the right banking option in Italy can be hard, but The Local's readers have shared their experiences and advice to give you a head start.

The verdict: What are the best banks for foreigners in Italy?

If you’re planning on moving to Italy, opening a bank account will be one of the very first things you’ll have to do in the country.

Overseas accounts (especially those from outside the eurozone) are unlikely to cut it for everyday tasks like paying bills and taxes, receiving an Italian salary and taking out insurance as many Italian authorities require an account with an Italian IBAN number for these purposes.

Italy has a large number of banks to choose from, ranging from traditional Italian institutions to international banks to a host of online-only operators that have grown in popularity in recent years.

But Italian-only online information, confusing paperwork and a swarm of different offers can make it hard to find the right option, which is why we asked readers of The Local to share some of their best insider tips in a recent survey.

Traditional v online banking

If you’re looking to open an account in Italy, one of the very first decisions you’ll be faced with will be whether to opt for a traditional institution or a digital banking platform. 

Overall, around four in ten respondents indicated an online banking platform as the best option for foreigners in the country, with many pointing to low account fees, advantageous currency exchange rates and a far greater degree of flexibility compared to traditional institutions. 

READ ALSO: Which documents do I need to open an Italian bank account?

The majority of respondents however selected a traditional Italian bank as the best option, citing greater levels of trust in traditional institutions, the advantage of dealing with people face to face and, in some cases, the availability of specific services and information for foreign nationals. 

Traditional banks

Italy’s biggest private bank, Intesa Sanpaolo, was recommended by multiple readers as the best option for foreign nationals in the country.

Intesa San Carlo, Italy

People walk past the headquarters of Italy’s Intesa Sanpaolo in Turin’s Piazza San Carlo in January 2017. Photo by Marco BERTORELLO / AFP

Iain Gosling, a UK national living in Pisa, Tuscany, highlighted the quality of their online services, saying: “The app is easy to use and it translates into English automatically. Online banking is easy. We maintain bank accounts in the UK and send funds to ISP, no problem.”

Another British national living in Pisa focused on the advantages of dealing with Italy’s largest bank, saying that “a lot of operations are done through ISP so the transaction fee is low” and the large number of branches across Italy makes it easy to “open an account quickly in person.”

Laura, a US-Italian citizen living in Ascoli Piceno, Marche, praised Intesa Sanpaolo for their customer service, saying staff were “patient and understanding” following a bad experience with another bank.

READ ALSO: What you need to know about opening a bank account in Italy

Besides Intesa Sanpaolo, UniCredit was also mentioned on multiple occasions within the survey, though opinions on Italy’s second-largest bank were mixed.

Stewart, an Australian national living in Umbria, said they “never had any problem paying bills or making transfers” even when out of the country, and the bank has “a pretty good website, including an English-language (sort of) option”.

But other readers had rather different experiences. Laura, from Ascoli Piceno, said her experience with UniCredit was “a nightmare” as “they couldn’t open the account correctly” and trying to solve the issue was “humiliating and impossible”. 

Cindy in Orte, Lazio, mentioned that UniCredit “arbitrarily raised checking account rates for foreigners who are not residents from 20€ annual to 120€ annual”, whilst another reader reported that “it took someone I know three months to open an account”.

Finally, two readers recommended BancoPosta – a branch of Italy’s Post Office offering basic financial services – based on low fees, presence in all major Italian towns, and easy sign-up procedures.

Online banking and transfer platforms

Wise (formerly TransferWise) was by far the most highly recommended digital platform within our survey.

A British reader in Tuscany hailed it for its “speedy transfers, good exchange rates, and prompt problem resolution”, highlighting the contrast with “slow, expensive and paper intensive” traditional banks.

Revolut

A close-up detail of a card from digital bank Revolut. Photo by JUSTIN TALLIS / AFP

Jenny Lantschner, a British-Italian national in Lucca, also pointed out Wise services’ speed, saying that it’s “very easy to use on a smartphone and will send funds within minutes”.

Besides Wise, several readers recommended Italian online bank Fineco, which they praised for easy account-opening procedures, efficient online operations and low fees. 

Lithuania-based Revolut was also recommended by some readers on the basis of “low cost, convenience, and near spot-market rates for currency exchange”, though others mentioned having problems with money transfers. 

For instance, Bob, an American national in Siracusa, Sicily said that “English, American, and Italian banks all refused to fund” his account.

Finally, Steve in Lombardy advised against opening accounts with Germany-based N26 as they “have been closing accounts in Italy and not giving back the money to customers”.

Though N26 is an active digital bank in Italy, it has been operating in a limited capacity for nearly two years following on-site inspections in late 2021 that revealed shortcomings in terms of security legislation and weaknesses in anti-laundering measures. 

Readers of The Local have recently reported having their accounts shut and being locked out of their funds for no apparent reason.

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