Recovery, EU green light for Italy plan: ok at 191.5 billion

Green light from the European Commission to Italy’s national recovery and resilience plan, necessary to access Next Generation Eu funds. The Italian one is the EU’s largest plan for the total expected amount of transfers and loans, in all 191.5 billion euros. The EU executive adopted a positive assessment of the plan, which is “of high quality” according to senior EU officials, and which will support investments and reforms in line with country-specific recommendations. The NRP provides for 68.9 billion euros in transfers, i.e. EU funds that will not be repaid, and 122.6 billion euros in loans at a favorable rate, which the European Commission will make to Italy after raising capital on the markets and which will be returned over time. Read also Now the Council has one month to definitively approve the Italian NRP, which is expected to take place in the Ecofin of 13 July, after which the Commission will be able to disburse pre-financing, 24.9 billion euros, of which 9 billion transfers 15.9 billion loans, before the summer break.Technically this is a pre-allocation, explained senior EU officials: the sums will be advanced in July but then will be deducted, in installments, from the subsequent payments provided. After pre-financing, ten “possible” disbursements are scheduled, two per year, starting from December 2021 and ending in June 2026, which will be disbursed as long as the objectives and milestones set in the plan are respected, which are 525. Unlike what happens with traditional EU funds, explains a senior official, the funds for Next Generation EU are not paid upon presentation of “invoices”, but after compliance with the objectives and planned milestones has been verified. the Commission, 37% of the expenditure foreseen in Italy’s national recovery plan supports the climate objective, i.e. contributes to the target of reducing emissions by 55%, by 2030, compared to 1990 levels, with the aim of reaching neutrality in terms of climate-changing emissions at EU level by 2050.Some measures initially included were excluded from the plan precisely because they did not respect the ‘do no significant harm principle’, that is, they risked going against the goal of reducing greenhouse gas emissions. For example, senior EU officials explained, the super bonus for building renovations does not necessarily contribute to the climate target, because the improvement must lead to a reduction in energy consumption of at least 30%. In short, “it is not enough for a private individual to replace single-glazed windows with double glazing”. The Italian plan, on the other hand, exceeds the minimum targets for digitization: as much as 25% of spending is allocated to measures that favor the digital transition, including the expansion of ultrafast networks and the development of the 5G network. The minimum target set by the EU regulation for spending aimed at promoting the digital transition is 20%.