The good news is that Europe’s money has finally arrived, and in line with the expectations of the Ministry of Economy. But now we must begin immediately, without delay or mistakes, the reform process that the European Union is starting to support. The EU Commission disbursed € 24.9 billion through the recovery fund for 106 projects. This is the long-awaited pre-financing of 13% of the € 191.5 billion EU aid package that Italy will receive between grants (68.9 billion) and loans (122.6 billion) under the recovery mechanism designed to respond to the economic and financial damage caused by a pandemic (Next Generation EU).
The EU executive identifies three priority lines of intervention to be financed through this first tranche of resources raised on the markets through the issuance of common debt securities: development of high-speed rail with the aim of “integrating more regions” with transport on rails, increase the offer of childcare facilities, promote the promotion of digital technologies by businesses through tax credit.
According to Paolo Gentiloni, the list of things to do is however more extensive. The Commissioner for the Economy sets the agenda for Mario Draghi and his government. “Today’s pre-financing is a first concrete and tangible step to start the investments and reforms that Italy is committed to carrying out”. He rattles them all off, to avoid misunderstandings and remember what Europe expects from Italy. A greener and more sustainable mobility system is expected, an increase in renewable energies, the digitization of businesses, the spread of 5G and ultra-broadband, a “more efficient” public administration and a “more attractive and competitive” business environment.
These are measures provided for in the national recovery plan that Draghi himself has filed in Brussels, and which are requested to be implemented in compliance with the agreements made. Only through their realization will the country become “more modern”, more competitive, and capable of “creating new opportunities”. For this Gentiloni, like the whole Commission, puts pressure.
In Brussels they are aware of the stakes. Italy is the second main beneficiary of the twelve-star recovery mechanism after Spain, it is one of the countries most affected by the pandemic, and a success of the first ever example of the creation of common European debt securities passes through the recovery of tricolor economy. If Italy is able to do its duty, then the Eurobonds can be replicated, otherwise it will be a failure for everyone.
The Minister of Economy, Daniele Franco, expected the disbursement of these 24.9 billion euros between the end of July and the first part of August. He was satisfied, but the Commission would like to point out that it was not easy. Budget Commissioner Johannes Hahn says it elegantly. “We were able to disburse the funds in record time”. One way to make it official once and for all that Italy now has no excuse is to start working hard, convincingly and efficiently.
“A strong Italy is needed for a strong Europe”, Ursula von der Leyen is keen to underline. Words, those of the president of the community executive, which make it clear how much is expected from the country and how much Italy will be under observation. So far the figure of Mario Draghi has represented the credible and winning business card of an Italy that must put aside the enthusiasm for the fresh money that arrives and start translating it into what it has agreed with Brussels and its partners. The difficulty comes now.