Italian Prime Minister Guiseppe Conte has apologized to tens of thousands of furloughed Italian employees that are yet to obtain state aid over two months because the nation’s lockdown began.
In an article posted on Facebook,” Conte explained: “I apologize on behalf of these authorities and that I guarantee will continue to operate to make sure that payments have been made as swiftly as possible.”
The authorities promised to cover more than two million employees their salary after imposing a federal lockdown on March 9.
However, the payment strategy has overloaded Italy’s bureaucratic machines, Filippo Taddei, Professor of International Economics at Johns Hopkins School of Advanced International Studies, states.
“Italian employees may gain from unemployment insurance or short-time working. These strategies cover employees in massive businesses and manufacturing,” he explained.
“It will not cover modest firms within the service industry that are heavily hit by the catastrophe.”
Taddei reported that the authorities had made a decision to enlarge the goal of the program to all those employees in tiny businesses, but it might take between 30 and 45 days to achieve claimants.
“Right now with all the surge in software, it may take more.”
Taddei added that Italian banks have proved reluctant to step into the breach.
“What the government has attempted would be to say why not move the bank and request just a small bit of a loan and that loan is going to be backed with the treasury and you’ll find the money earlier,” he explained.
“But banks are somewhat resistant to this because they’re currently over-exposed.”
Surprisingly enough unemployment in Italy fell in March since the short-time work strategies are conditional on individuals maintaining their employment relationship set up.
Regardless of the flaws, Taddei states that confidence in the government strategy stays powerful.
“People are concerned about their potential but they’re not concerned about not receiving the cash,” he explained.
“And for once this money is, in reality, working for the greater. Surprisingly yesterday it had been declared unemployment in Italy fell in March. And why is this? Since the short-time work strategies are conditional on individuals maintaining their employment relationship set up.”