Italy can smile. 21 billion euros are on the way to relaunch the economy and the country, and for the announcement of the European Commission there was no better time: there is the green light for the disbursement of the Recovery fund. The request for funding from the Draghi government is accepted, according to Brussels, on the basis of a convincing national strategy. A lot of sustainability, a lot of digital, reforms. Just what you need and will need. “Italy is on the right path,” acknowledges the Commissioner for the Economy, Paolo Gentiloni. Go ahead with the Italian and European recovery plan then.
The money won’t come right away, though. The process envisages the involvement of the EU Council and Parliament, which have a say in the common budget, and not a marginal one. In Brussels they have no doubts that everything will go smoothly, but the procedures have time and the 10 billion in guarantees and the 11 billion in loans will arrive “at the beginning of April”, not before. There is plenty of time to register a new European appreciation for Draghi, and avoid nasty surprises.
The Brussels green light for the Recovery Fund money refers to the national recovery plan in its program version. The money will have to be used to implement it, or you risk having to pay it back. The scrutiny of the European Commission does not end here, on the contrary. It is time that perhaps the hardest part begins.
For sustainable construction alone, the community executive expects the redevelopment of about 32 million square meters of buildings, for a 40% cut in waste compared to the current situation. Then interventions to support the digitization of at least 4 thousand small and medium-sized enterprises, and the task force of 2,800 temporary agents, who will be employed mainly in the south. Expectations are high and you can’t fail. Resources must be used well. Only in this way, underlines the executive vice president Valdis Dombrovskis, will Italy “be able to regain its status as an economic power”.
The boot remains one of the main economies of the Eurozone, but before the pandemic it was in trouble. It was growing at the rate of “zero point”. In 2021, Italy’s Gross Domestic Product, on the other hand, rebounded by 6.5%. Thanks to the anti-pandemic measures, the green light for public support linked to the suspension of the Stability Pact, and also in 2022 the recovery was expected at 4.1%, but the high energy costs and the war in Ukraine risk jamming an engine that is restarted. This is also why the green light for funds is good news. “We will help support Italy’s strong economic recovery in these uncertain times,” assures Gentiloni. But everything will depend on Italy’s ability to keep its commitments.
The 21 billion to come are used to support investments and reforms, and this is what we look at. The reform of civil and criminal justice and that of the bankruptcy framework, together with that of the public administration and the simplification of the public procurement system, are things that Brussels has been asking for for years, including periodically in the country-specific recommendations, the set of structural reforms that are asked of the Member States in the cycle of economic coordination.
Faster justice, with fewer pending proceedings, and a leaner and less complex bureaucracy are fundamental elements to give certainty to companies and investors, especially in times of new crises. In the Commission, they are aware that everything has changed since Mario Draghi applied for funding, and that Italy, but not only, could be forced to have to revise the plan in progress. But for this we will see. Meanwhile, the tricolor merits are recognized, and precious resources are offered in times marked by new unknowns.
Treasuring this treasure is the only alternative. Work must begin for “stronger, more inclusive and sustainable growth in the years to come”. The suggestion that comes from Brussels may seem obvious, but it is not. Not anymore, at least.