CNA Ravenna’s proposals to support the production system

Italy is facing a very critical situation due to the spread of the coronavirus. The impact on the economy has been devastating, so much so that the CNA together with the other employers associations and workers unions have drawn up a joint document calling on the social partners, the government, the regions, the authorities and representatives of civil society to put aside all divisions and to work actively and in a coordinated manner to close this phase as soon as possible. The document is an act of responsibility on the part of employers and workers towards the country so that the health emergency does not turn into an economic emergency.

The CNA appreciated the promptness shown by the President of the Emilia Romagna Region Stefano Bonaccini and the President of the Province and Mayor of Ravenna Michele De Pascale in dealing with the emergency. In this context, the involvement of business organizations in the definition of the first package of measures to counteract the heavy impact on the productive fabric is a crucial choice.

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Forecasts for 2020 already indicated a sharp decline in GDP

The economic forecasts for 2020 already indicated a sharp decline in GDP, following the fall in Chinese production and domestic demand and the effects on international trade and tourism. With the emergence of outbreaks in Lombardy and Veneto, the picture is set to change dramatically, so much so that the first quarter may see a contraction of around 0.3%. Considering also the last quarter of 2019, the revision is down by 0.4% and, therefore, the technical recession phase can be defined as open, the fourth one since 2009.

“Faced with this state of emergency, the CNA asks the national government for a decisive change of pace,” said Pierpaolo Burioli, President of the CNA Ravenna. “Unconventional responses are needed, starting from an extraordinary action plan to monitor the trend of economic activities and prepare instruments able to cope with the negative effects triggered by the spread of the Coronavirus.”

“In the last few days, the CNA has launched a questionnaire to detect the situation of the companies and collect their requests and needs,” said the Director of the CNA Ravenna, Massimo Mazzavillani. “From the survey and the direct comparison, specific needs have emerged, from which CNA has drawn up a list of requests to safeguard the continuity of the productive activity, and allow the companies to better manage the impact with this emergency.”

CNA’s proposals to support the economy

Among CNA’s proposals to support the economy is to extend the suspensive measures against businesses, in particular, those operating in tourism, fashion, food supply, personal welfare, and transport. Also, to ensure the movement of goods transport vehicles in order to secure continuity of supplies and to combat border blockades.

In order to combat stagnation, CNA proposed to proceed with the deforestation of the bureaucratic jungle starting from the cancellation of Article 4 of the tax decree on joint and responsibility of clients in terms of withholding tax of employees of contractors and subcontractors. Also, it is necessary to transform the tax deductions for restructuring, energy efficiency, and earthquake-proofing works into debt securities transferable to banks, thus overcoming the mechanism of invoice discount (art. 10 of the Growth Decree).

Moreover, it is necessary to guarantee the supply of credit to businesses by restoring letter r) of the Bassanini reform, i.e. the possibility for the Regions to limit access to the guarantee fund to Confidi only, instruments capable of supporting small businesses, especially those in distress, in their relations with banks.

Another proposal is to allow public contracts for services and sub-threshold supply for works up to €200,000 to be awarded directly on the basis of at least three estimates.

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(Featured image by Markus Spiske via Unsplash)

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First published in Ravennanotizie.it, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.

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