Italy: new measures to support jobs and the economy

On 7 August Italy’s council of ministers approved the so-called 'Decreto Agosto' (August decree), which will see a further €25 billion freed up to support employment and the economy, notably by extending the Cassa Integrazione (wage guarantee fund) short time working allowance, relaxing the regulations on fixed-term contracts and reducing social security contributions. The most delicate point was that of redundancies, which were prohibited since the start of the health crisis and until 17 August. Faced with threats of a general strike by the unions, the government partially renewed the suspension, but employers are dissatisfied with the compromise.