This morning the general discussion of the Cura Italia decree began at the Assembly of Chamber. The decree was not changed by the Budget Commission, in yesterday's night session. In the absence of a majority-opposition agreement initially hypothesized and then not finalized, the Rapporteur and the Government rejected all the amendments presented. As per our sources, this afternoon the majority and the opposition were finding again an agreement which would have sent the Cura Italia decree back to the Budget Committee for the approval of some shared amendments. However, also due to the lack of a legal number in the Chamber, the deal hasn’t been brokered. Tonight the Government has asked for a vote of confidence. Meanwhile, the Council of Ministers, initially expected tonight, has been postponed for tomorrow. The meeting would deal with the Economic and Financial Planning Document and the

report on the Budget Deviation. As per the April Decree, Minister Patuanelli anticipated that there will be immediate liquidity for SMEs and businesses with fewer than 10 employees. Moreover, the Guarantee Fund for SMEs will reach a capacity of over 4 billion.

 

Regarding the so called phase 2, after the today meeting between the Government and the social partners, it’s learnt that manufacturing, construction, personal services and some commercial activities could resume from May 4 in compliance with the safety protocol signed at the time. The plan is expected in next days. Meanwhile Matteo Salvini, together with the other center-right allies, announces a national reconstruction plan. In crafting the plan, the center-right parties will hear business associations, from agriculture to tourism, and entrepreneurs.

 

At the European level, Christine Lagarde , in a letter sent to a MEP, stated that, unlike other central banks, the ECB will not purchase bonds directly from national or local governments, remaining a buyer only on the secondary market while spending up to 1,100 billion euros this year. Lagarde remarked also that, according to the interpretation of the treaties, the purchase on the primary market of government debt is as direct financing to governments, which would compromise the objective of encouraging a disciplined budgetary policy. Fabio Panetta, an Italian member of the ECB Executive Board, advocated for a strong and symmetric fiscal response that offsets the economic damage from the pandemic. Panetta added that, if responses are asymmetric, there’s the risk of political spillovers. According to Panetta, any perception that common action is absent in times of desperate crisis would dilute public support for the European Union. Moreover, during the European Council scheduled for tomorrow, the EU institutions and governments expect a proposal from the European Commission on the relationship between the Recovery Fund , i.e. the recovery plan for the coronavirus crisis, and the Multiannual Financial Framework (MFF). Among the possible solutions, as per our sources, there is the simple inclusion of the recovery fund within the MFF. However, the Commission's opinion on this idea is still uncertain. On the topic, today PM Conte meets with President of Republic Mattarella, who stress the relevance of EU solidarity, a hope shared also by Pope Francis this morning.