The price of re-opening

Today, 3rd June, Italy is officially reopening all its activities and the free circulation between regions. Despite the optimism of workers and employers this time is the most challenging for the Country since 1945. After three months of lockdown activities recorded a major loss in their earnings, as a direct consequence it is foreseen that in the next months around the 28% of public places will close, forever (source: Confcommercio-Swg).

The costs of running a public place in Italy are among the highest in Europe due to taxation, labour cost and all the duties one has to face when opening an activity. Furthermore bureaucracy plays a major role.

Who decided to open two weeks ago recored a shy come back to “routine” but with two severe consequences: on one hand the high price paid as to sanitize all the areas, in order to follow the directions given by the Government. On the other hand during the second week new challenges came to light linked to logistic and managing issues.
What is even more concerning are the recorded losses looking at the revenue.

Figures are clear: only the 44% of businesses had the chance to obtain the 600€ fund (the majority are business run individually), 21% is still waiting and 35% is not engaged. The worse figure is the unemployment insurance: only the 17% of assignee received the bonus.

Looking only at figures it is crystal clear that the situation is by far the worse we can face since decades. The major challenge will be in the next three months when the timid optimism will disappear as in September schools will re-open, taxes deadlines have to be fulfilled and in the short term will see if the free circulation will lead to an increasing of infection or we will learn how to deal with the virus.

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