Italy’s New Measures to Mitigate the Economic Effects of COVID-19

Last night, the Italian Government published a new decree-law (the “Decree”), introducing urgent measures to mitigate the effects of the ongoing Coronavirus Disease 2019 (“COVID-19”) outbreak on national economy.

The Decree is primarily aimed at meeting the liquidity needs of Italian businesses, including larger companies and ensuring that the COVID-19 outbreak does not hinder their ability to continue operating as a going concern. Among other measures, the Decree facilitates access to bank financing through state guarantees, amends (and/or suspends the application of) certain corporate, bankruptcy and tax law provisions, postpones the entry into force of the new insolvency code, and extends certain judicial terms in civil and criminal proceedings.

The Decree also significantly broadens the Italian Government’s powers to review acquisitions of companies and assets in certain strategic sectors.

This memorandum follows up on our prior alert memoranda outlining certain legal considerations on the key legal issues arising from the virus outbreak, including with reference to Decree-Law No. 18/2020.