General national economic measures

 

*small business relief or other financial support

*income support for freelance workers

*income support for employees

*tax returns and or VAT returns suspended/delayed

*unemployment relief

*company tax relief

*unemployment relief

*unemployment relief for freelance workers

*loan repayment holiday

*mortgage payment holiday

*interest free crisis loans

 

More information:

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See official Ministry of Economy and Finance website:

https://www.mef.gov.it/focus/COVID-19.-Tutte-le-misure-a-sostegno-della-sanita-e-delleconomia/

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On 17 March 2020, the Italian government presented the “Cura Italia” decree, €25bn to stem the economic impact of the coronavirus crisis.

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Decree: https://www.gazzettaufficiale.it/eli/id/2020/03/17/20G00034/sg

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Stimulus package (€16 billion including health sector): 

• reduced taxes and contributions for all companies in severely affected sectors (tourism and leisure, transport, restaurants and bars, culture, sports, education, events) and all firms below €2 million: 

  • suspended VAT payments and contributions in March 2020

  • 60% tax break on business rents

  • 50% tax break for sanitization costs

  • donations for Covid19 tax deductible

  • tax payments demands and tax declarations put on hold

• €10.4 billion to keep jobs and support unemployed: 

  • layoffs for all workers delayed for two months

  • unemployment insurance extended to all sectors, regions, and employees (9 weeks)

  • €600 bonus for self-employed and freelance workers

  • employees not-working-from-home got €100 bonus in March 2020

  • working parents got €600 bonus

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Tax delays

• all firms below €2 million and others in severely affected sector could defer tax payments

• micro, small, and medium sized firms could delay loans and mortgages payable in installments until 30 September 2020.

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Other measures (€130 billion): 

• €100 billion new loans guarantee fund for SMEs 

• €10 billion state guarantees for banks financing big and medium enterprises 

• €10 billion to boost liquidity for banks and enterprises

• €10 billion for other measures

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On 7th April 2020, a second decree was released. It provided 400 billion euros for companies as loans, of which 200 for exports:

• For SMEs a €7bn fund was made available until the end of 2020 through high street banks as 100% state guaranteed loan, with interest close to 0%, returnable in a max of 6 years. Any firm or sole trader can apply up to a maximum of €25k for single person enterprises, double the amount the firms pays out in yearly salaries for firms with up to 499 employees and without limits but with a 90% guarantee to larger firms.The loans are cost free for all, assigned quickly and without bureaucracy for the first tier, while the second and third tiers need to provide adequate credit ratings.  

• Tax, contributions and VAT holiday for April and May 2020: applied to companies and sole traders whose gross earnings dropped by 25% or more in March that year.

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In May, as the first wave lockdown measures receded, the government launched its “Decreto Rilancio”, extending and strengthening existing measures to support the restart of the economy, for a total value of €55bn. More info.

 

The “Decreto Agosto”, brought another €25bn worth of support measures. More info.

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The 4 “Decreti Ristori” brought support to most impacted sectors, with measures worth up to €18bn, including non-refundable grants, suspension of tax payments and social security contributions and new weeks of the ‘Cassa integrazione’ wage supplement scheme. More info.

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The “DL Sostegno” launched brought around €32billion to support economic operators, workers, health, safety, local services and various specific sectors. More info.

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National measures specific to the music sector or to culture in general

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The music sector can benefit from the above-mentioned general measures.

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In addition, there is other support for the cultural sector:

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See the list of the main government measures to support culture and music

https://www.beniculturali.it/covid19

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Among which:

- 10% of private copy income going  to artists, songwriters and freelance workers, estimated to be worth €13m (not for music publishers or record companies). 

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- €130m fund for live sector (excludes producers, publishers, promoters, touring agents, artists, musicians). 

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- Cultural workers and non-profit organisations access to unemployment benefits. 

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- Eligible freelancers getting EUR 600 allowance (for March 2020) (fund of EUR 48,6 million available for 2020).

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- Certain operators like museums, theatres, concert venues and other cultural organisations could suspend social security and welfare payments, plus taxes and VAT. 

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- Tickets already sold for cinema, museums, theatres etc could be exchanged for vouchers valid for 1 year.

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-On 20th April 2020, several music organisations sent a letter to the Italian Prime Minister, as well as the Culture and Finance Ministers, to ask for sector specific intervention, set out in 10 action points designed to save our sector. Read the statement here and the action plan here (English translation here).

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Measures taken by local collecting society organisations

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- Deduction from private copy levy (see above)

 

- Authors society SIAE opened an Emergency Solidarity Fund amounting to €500k and bought 2,500 food packages to be delivered directly to members in financial difficulty or experiencing health problems. 

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- An Extraordinary Support Fund was also launched and made available to all members. The fund amounted to €60 million.

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- See other financial measures here (for a total of €110 million).

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- NUOVO IMAIE, New Mutualistic Institute of Performing Artists launched a Special Fund for Artists created for the Coronavirus emergency: https://www.nuovoimaie.it/fondo-speciale-nuovoimaie-fai-domanda-online-dal-23-marzo-al-23-aprile-2020

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- Producers' society SCF agreed at its AGM in April 2020 to give a 50% deduction in its commission for members who earned 10k euros or less as a yearly average between 2017 and 2019. This was not repayable and effective for all distributions in 2020. 

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- ITRIGHT (the competing PRO) announced an advance payment of €300 and a €5m guaranteed loan facility for a maximum of €3k for any label, when they opened an account with a specific bank. This was on top of the measures announced back in April 2020, a one time ex gratia payment to labels, for a total of €3,5m.

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Other music funds available

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Puglia Creativa - Salva la cultura / Save arts workers in Puglia: crowdfunding to support art workers.

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Others:

• Puglia Region 

• Liguria Region

• Emilia Romagna Region distributed a survey to cultural enterprises to find out all about them and then intervene

• Some regions made smart working initiatives for businesses including ours

• AFI made available 100 thousand euros for members in difficulty

• Emilia Romagna Music Law which finances the specific sector

• Laziosound intervention by the Lazio Region 

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Support from national radio and other media

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Radio Rai broadcasted more concerts by Italian artists live.

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Social media and other campaign to promote music during the crisis

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Ripartiamo con la Cultura: appeal on TV (LA7) about the importance of concerts, cinemas and theatres for the economy of countries like Italy. More here.

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General States of Emerging Music - Appeal to the Government with 8 recommendations from the music sector for the “Cura Italia” Decree.   

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Rockol launched a campaign to enhance home music and conferences.

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Business and other expected losses

 

Estimates made in 2020:

• Music sector: € 1 billion in turnover losses in total

• Clubs and small musical stages for live events: about €250 million, equal to 30% of the concert market approximately

• Concert and tour organizers * and artist agents: €800 million

• Small and medium-sized festivals: approximately €100 million

• Major festivals: €200 million

• Music publishers / author / collecting society: €200 million overall, about €80 million for independents

• Record Producer / Artist / Collecting Company: €100 million overall, €40 million for independents

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Also:

• Musical instrument  €250 million

• Discos and DJ events:  €800 million

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Producers' society SCF foresaw a decrease in income ranging between 27% and 48%, depending on how and when different sectors would be allowed to reopen (i.e., pubs, restaurants, disco pubs, clubs, etc.).

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For more info:​

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AudioCoop - http://meiweb.it/audiocoop/presentazione/ - segreteria@audiocoop.it 

PMI - Produttori Musicali Indipendenti - http://www.pmiitalia.org - segreteria@pmiitalia.org