Italy’s roadmap supported by the EU’s COVID-19 recovery package

Within the framework of the Next Generation EU (NGEU) COVID-19 recovery package, Italy is the first EU Member State to benefit from financial support from the European Recovery and Resilience Facility (RRF).

COVID-19 exceedingly hit the Italian economy leading to further increasing social and environmental imbalances. Hence, for Italy the NGEU represents an unmissable opportunity for innovative investments and reforms supporting:

► Productivity and economic growth,

► The modernisation of its public administration,

► The strengthening of its production system,

► Education, training and employment particularly for young people,

► The combat against poverty, social exclusion and inequality.

As one of the first EU Member States, Italy intends to make full use of the financing capacity through RRF loans, which for Italy is estimated at 191,5 billion € – of which 68.9 billion € are non-repayable grants – for the period 2021-2026. About 40% of the budget are foreseen for the South of Italy, in order to facilitate the territorial rebalancing.

The government intends to implement the following four major reforms:

4. The promotion and protection of competition to strengthen economic productivity as well and social justice by means of sanctioning cartels and mergers or acquisitions of control that hinder competitiveness.

The Italian Government has prepared a governance scheme providing a central coordination structure at the Italian Ministry of Economy. The Government also aims at setting up local task forces that support local administrations improve their investment capacity and simplify procedures.

The RRF mechanism requires EU Member States to present a National Recovery and Resilience Plan (NRRPs) which is to be divided into six Missions and 16 Components. The estimated details of the Italian NRRP are presented as follows:

Mission 1 – Digitization, innovation, competitiveness and culture for a total amount of 40,73 billion € out of which:

• 9,75 billion € for digitalization, innovation in public administration;
• 24,30 billion € for digitalization, innovation and competitiveness in the production system;
• 6,68 billion € for tourism and culture.

Mission 2 – Green revolution and ecological transition for 59,33 billion € out of which:

• 5,27 billion € for circular economy and sustainable agriculture;
• 23,78 billion € for renewable energy, hydrogen, sustainable mobility;
• 15,22 billion € energy efficiency and redevelopment of wbuildings;
• 15,06 billion € protection of the territory and of the water resource.

Mission 3 – Infrastructure for a sustainable mobility for 25,13 billion € out of which:

• 24,77 billion € for investments in the railway network;
• 0,36 billion € for intramodality and integrated logistics.

Mission 4 – Education and research for 30,88 billion € out of which:

• 19,44 billion € for strengthening of the offer of training services: from nursery schools to universities;
• 11,44 billion € for from research to industry.

Mission 5 – Cohesion and inclusion for 19,81 billion € out of which:

• • 6,66 billion € for employment policies;
• 11,17 billion € for social infrastructures, community and the third sector;
• 1,98 billion € for special intervention for cohesion policy.

Mission 6 – Health for 15,63 billion € out of which:

• 7,00 billion € for telemedicine for territorial medical assistance
• 8,63 billion € for innovation, research, digitalization of national health service