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Impact of epidemic on CCI - ITALY

In Italy various measures were implemented as financial support for CCI, such as individual financial support for self-employed creative workers and artists; financial support for SME to help them maintain financial stability and continue with their actions …

 

NATIONAL LEVEL: The relaunch law decree allocating a 5 billion EUR package: 4 for tourism and 1 for culture

The culture fund is divided as follows:

- Emergency fund for cultural enterprises

A 210 million EUR fund is set up in 2020 to support the activities of publishing industry, shows, major events, fairs, congresses, and exhibitions cancelled due to the COVID-19 emergency and as well for the activities of non-state museums.

- Fund for state museums

100 million EUR for the support to MiBACT museums affected by the lost ticket revenue because of the closure due to the coronavirus infection.

- Culture fund for the promotion of investments in assets

The Culture Fund was established with an initial budget of 100 million EUR for the period 2020-2021, aimed at promoting investments in favour of the tangible and intangible cultural heritage and open to the participation of private subjects. The preliminary investigation and management of the operations will involve Cassa Depositi e Prestiti, while a portion of the fund may be managed by the Sports Credit Institute to guarantee interest rate subsidies and loans for interventions for the protection and enhancement of cultural heritage.

- Emergency fund for shows, cinema and audio-visual sector

The resources of the emergency funds for the show introduced by the Cura Italia are increased from 130 to 245 million EUR. An increase of another 50 million is expected for 2020.

- Cinema and Audio-visual; support for the film industry

Appropriations may also be assigned notwithstanding the percentages provided for tax credits deriving from the tax credit cinema, even within the limits of the resources identified by the law governing cinema and audio-visual matters. In the same way, the resources identified for automatic and selective contributions may also be finalized.

- FUS: extraordinary payment and support for workers

Opera foundations Breakdown for 2020 and 2021 on the basis of the average of the scores assigned for the three-year period 2017-2019, while for 2022 the breakdown criteria will be adjusted taking into account the activity carried out in the face of the COVID-19 emergency, the needs for the protection of employment and the reprogramming of shows. In 2020, the FUS may also be used to integrate the income support tools of its employees.

- Theatre and live entertainment

In 2020, an advance payment of the contribution equal to 80% of what received in 2019 was paid. The remaining 20% will be paid based on the activities carried out due to the COVID-19 emergency, the protection of employment and the reprogramming of shows. The disbursement of contributions in 2021 will take place in derogation of the three-year duration of the programming based on the activities carried out and reported in 2020. In 2020 the FUS can also be used to integrate the income support tools of its employees.

- Tax credit rentals for theatres, cinemas and associations with losses of over 50%

For theatres, cinemas, associations and cultural foundations with a turnover of up to 5 million EUR, a tax credit of 60% of the costs of renting the buildings where the activities are carried out is envisaged. This credit is reserved for subjects who have had a loss of turnover of 50% or more.

- Digital culture platform for online and streaming live shows

10 million EUR allocated to MiBACT to create, also with Cassa Depositi e Prestiti, a digital platform for the use of cultural heritage and live shows online and streaming also for a fee, defined in these days by the press the Netflix of culture .

- Protection for workers: extension of the allowance of 600 EUR in April and May, new allowance for workers with at least 7 working days

The allowance of 600 EUR scheduled for the month of March for show business workers with 30 working days in 2019 is extended for the months of April and May. A new allowance of 600 EUR is introduced for the months of April and May for show business workers with 7 working days in 2019 and with income up to 35,000 EUR. Redundancy fund is extended by 9 weeks for show business workers.

- Fund for artists, performers for 50 million EUR

A fund is set up with an initial endowment equal to the residues resulting from the liquidation procedures of the IMAIE for artists and performers.

- Irap exemption for companies and self-employed workers

Companies with a volume of revenues between 0 and 250 million EUR and self-employed workers with a corresponding volume of remuneration are not required to pay the Irap 2019 balance and the Irap 2020 advance.

- Sanitation, tax credit of 60% of expenses incurred and refreshment to businesses

Tax credit of 60% up to a maximum of 80.000 EUR and contributions from 15.000 to 100.000 EUR in relation to the number of employees for the adaptation of spaces and for the purchase of devices and equipment to reduce the spread of the COVID-19.

- ArtBonus and 5 per mille culture

The 65% tax relief for donations in favour of culture is extended to circuses, instrumental ensembles, concert and choral societies, traveling shows. The disbursement of the 5 per thousand Culture share of 2019 is brought forward to 2020 and will be paid to beneficiaries by 31 October 2020.

REGIONAL LEVEL: NEW TOOL TO SUPPORT CCI

The Region has introduced, for the first time in Veneto, a new tool to support cultural, creative and entertainment businesses in the Veneto region through the POR FESR 2014-2020 Funds. With the Regional ERDF Operational Program of Veneto, financed through community, national and regional resources, more than 16 million EUR have been made available to the sector with the aim of strengthening the system already present through the creation of new businesses and the development and the consolidation of the subjects that already operate in the local market.

 

These are funds which until yesterday were intended to support manufacturing, artisan businesses or trade to which specific actions have therefore been added for creative cultural and entertainment businesses.

 

The Region supports cultural, creative and entertainment companies, as entrepreneurial assets capable of producing goods and services in the field of the performing arts, visual arts, cultural heritage, audio-visual, new media, music and publishing.

 

The POR FESR 2014-2020 of Veneto has foreseen specific actions in support of the ICC, in particular in the context of Axis 3 (competitiveness of SMEs) two Actions have been funded:

- Call for the payment of contributions to consolidated cultural, creative and entertainment companies;

- Support interventions for the creation of new cultural, creative and entertainment enterprises.

 

HOW WERE THE CCI AFFECTED BY THE PANDEMIC

These are some data available nationwide. (Locally there is no data available.)

 

THEATERS: According to Siae data, the first week of theatres’ lockdown caused a loss of around 10 million EUR, due to the cancellation of 7.400 shows. Around 142.000 workers are engaged or employed in performing arts (amongst them 46% of employees are 35 to 49 years old).

 

MUSIC / CONCERTS: 4.000 concerts and 16 festivals have been postponed or cancelled since the lockdown. Over 100 artists were expected to perform in the big summer live events. According to Assomusica estimations, at the end of the summer season the losses for the live sector alone will amount to around 650 million EUR and the losses linked to the related sector will be 1.5 billion. Siae, on the other hand, estimated that 200 million EUR in copyright collections would be lost by 2020. Between March and April 2020, CD and vinyl sales plummeted by 70%. For this year, estimated revenues of 100 million EUR are lost.

 

PUBLISHING: Eight million copies sold less in the miscellaneous sector (non-fiction and fiction) with approximately 134 million EUR in turnover already lost in the first four months of the year, all concentrated between March and April. These are the numbers of the crisis that has swept the Italian publishing industry, according to research by the Italian Publishers Association (IEA). From March 9 to April 12 (i.e. the closing weeks) bookstores have lost 85% of sales. But this 85%, as evidenced by the editorial information survey, also has glimmers of light: it is in fact the result of the average between those who, completely closed, lost 100% of their turnover and who (organizing themselves with home deliveries and thanks also to a good social presence and customer loyalty) it reduced its drop to 71%. Paralysis in the launches of the new titles: from March 16 to May 3, the publishers distributed by the major national groups froze 91,1% of the releases.

 

MUSEUMS: It is estimated that the health emergency and the related lockdown that closed museums throughout Italy caused, between March and May 2020, a lack of turnout of almost 19 million visitors and a failure to collect approximately 78 million EUR. Last year's monthly data on the flow of visitors from state museum institutions show that the peak in admissions occurred in the months of March, April and May. In this quarter alone (with 17 million 486 thousand accesses, equal to approximately 6 million users per month) state structures welcomed almost a third (31,9%) of the total public in 2019. For the Egyptian museum in Turin one day closing is equivalent to missed collections of 34 thousand EUR. The Opera del Duomo in Florence estimated the impact of the lockdown at 20 million EUR (which is equivalent to 4 years of restoration). For Agis, however, the closure of exhibitions and museums in Milan caused the loss of 3 million and 800 thousand EUR.

 

In the Municipality Vittorio Veneto, theatres and performing arts, book presentations, concerts and cinema were resumed on June 15, 2020.