NextGenerationEU: European Commission endorses positive preliminary assessment of Italy’s request for €21 billion disbursement under the Recovery and Resilience Facility
The European Commission has today endorsed a positive preliminary assessment of Italy’s second payment request for €21 billion, of which €10 billion of grants and €11 billion of loans (net of pre-financing) under the Recovery and Resilience Facility (RRF), the key instrument at the heart of NextGenerationEU.
On 28 June 2022, Italy submitted to the Commission a payment request based on the achievement of the 45 milestones and targets selected in the Council Implementing Decision for the second instalment. They cover reforms in the areas of public employment (as part of a broader reform of public administration), public procurement, teaching profession, tax administration and territorial healthcare. The payment request includes investments in key policy areas including ultra-broadband and 5G, research and innovation, tourism and culture, hydrogen, urban regeneration and digitalisation of schools. This payment request also includes an investment to support the reform of the justice system and reduce the backlog of cases.
With their request, the Italian authorities provided detailed and comprehensive evidence demonstrating the fulfilment of the 45 milestones and targets. The Commission has thoroughly assessed this information before presenting its positive preliminary assessment of the payment request.
The Italian recovery and resilience plan includes a wide range of investment and reform measures in six thematic areas (the so-called “Missions”). The plan will be supported by €191.6 billion, €69 billion in grants and €122.6 billion in loans, 13% of which (€9 billion in grants and €15.9 billion in loans) was disbursed to Italy in pre-financing on 13 August 2021. Moreover, a first payment worth €21 billion was disbursed to Italy on 13 April 2022.
Payments under the RRF are performance-based and contingent on Member States implementing the investments and reforms outlined in their respective recovery and resilience plans.
Next steps
The Commission has now sent its positive preliminary assessment of Italy’s fulfilment of the milestones and targets required for this payment to the Economic and Financial Committee (EFC), asking for its opinion. The EFC’s opinion, to be delivered within a maximum of four weeks, should be taken into account in the Commission’s assessment. Following the EFC’s opinion, the Commission will adopt the final decision on the disbursement of the financial contribution, in accordance with the examination procedure, through a comitology committee. Following the adoption of the decision by the Commission, the disbursement to Italy can take place.
The Commission will assess further payment requests by Italy based on the fulfilment of the milestones and targets outlined in the Council Implementing Decision, reflecting progress on the implementation of the investments and reforms.
The amounts disbursed to the Member States are published in the Recovery and Resilience Scoreboard, which shows progress of the implementation of the national recovery and resilience plans.
Members of the College said:
President of the European Commission Ursula von der Leyen said: “Once more good news for Italy. The Commission considers that Italy has made sufficient progress in the implementation of its national recovery plan to receive a second payment from NextGenerationEU. Once Member States have given their green light, Italy will receive €21 billion. Italy is showing continued important reform momentum in key policy areas, such as public employment and public procurement. So congratulations, Italia, and keep up the good work! The Commission stands by you on your way to recovery.”
Valdis Dombrovskis, Executive Vice-President for An Economy that Works for People said: “Italy has achieved the next 45 milestones and targets set out in its recovery and resilience plan – congratulations. We welcome Italy’s continued dedication to reforming the business environment, notably its public employment sector, procurement system and tax administration. The plan’s investments are already helping to increase the availability and quality of houses, regenerate deprived urban areas and improve healthcare services. Italy is carrying out further greening measures, improving the efficiency of its water and energy use as well as boosting development of renewable energies and green hydrogen. Italy is reducing its digital divide by investing in the national ultra-fast broadband and 5G networks, and also promoting digital technology in schools and hospitals. Once the Commission’s assessment is reviewed and approved by Member States, Italy should receive €21 billion in grants and loans to help make its economy more inclusive and resilient for years to come.”
Paolo Gentiloni, Commissioner for Economy, said: “Today marks another important step in the implementation of Italy’s RRP. The successful completion of these 45 milestones and targets will open the way, once the relevant procedures are completed, to a further disbursement of €21 billion. NextGenerationEU is the strongest common tool we have at our disposal. For Italy, it represents a unique opportunity to build a more competitive and sustainable economy and a fairer society. I urge the next Italian Government to ensure that this opportunity is seized. Fulfilling the many remaining commitments contained in the RRP is key to delivering the structural change needed to shift the Italian economy onto a path of strong and durable growth.”
For More Information
Question and Answers on Italy’s disbursement request under NextGenerationEU
Press release on €24.9 billion in pre-financing to Italy
Question and Answers on Italy’s recovery and resilience plan
Factsheet on Italy’s recovery and resilience plan
Proposal for a Council Implementing Decision
Annex to the Proposal for a Council Implementing Decision
Recovery and Resilience Facility
Recovery and Resilience Scoreboard
Recovery and Resilience Facility Regulation
Question and Answers on the Recovery and Resilience Facility
