Italy wants to renegotiate with Brussels on the goals of its recovery plan

The Italian government announced on Tuesday its intention to renegotiate ten of the twenty-seven targets set for the disbursement of the fourth installment of funds allocated under the European recovery plan. This may delay the disbursement and impact Italy's public finances.

Minister for European Affairs, Vincenzo Amendola, stated that the modification of the targets should allow Italy to "submit a request in the coming days for the disbursement of the fourth installment" of funds.

Taking the initiative, Rome seeks to avoid the significant delay that occurred in the disbursement of the third installment, amounting to 19 billion euros, which Brussels froze pending clarification regarding fund allocation and goal achievement.

Brussels has suspended the disbursement of the fourth installment, amounting to 16 billion euros, until all the targets are met in the first half of the year.

The proposed changes relate to the establishment of nurseries, electric charging stations, and the expansion project of the legendary Cinecittà Studios in Rome.

When asked about the chances of receiving the fourth installment before the end of the year, Amendola admitted that "these guarantees cannot be provided by anyone. It is evident that there will be a verification phase."

Italy, the largest beneficiary of the European post-COVID plan, is expected to receive 191.5 billion euros by 2026. However, it lags behind in implementing the necessary reforms in exchange for this assistance.

The delay in the disbursement of European funds could hinder economic growth and worsen the country's financial situation.

Italy's public debt exceeds 144% of its gross domestic product, the highest in the Eurozone after Greece.

The general government deficit in Italy rose to 12.1% of GDP in the first quarter, compared to 11.3% during the same period in 2022.

Economy Minister Giancarlo Giorgetti stated on Tuesday, "I hope these funds will arrive because if they don't, there will be a problem, and that is evident. Currently, we can address the situation."



AFP