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Italy is preparing to formally ask the European Commission for the sixth installment of funds from the National Recovery and Resilience Plan (NRRP) for a total of 8.5 billion euros.
This happens while we await the approval by Brussels of the fifth tranche, which amounts to 10.6 billion euros, of which 3.1 billion are non-repayable and 7.5 billion in the form of a loan. The announcement was made yesterday at the end of the control room held at Palazzo Chigi, chaired by Prime Minister Giorgia Meloni and convened by the Minister of European Affairs, Raffaele Fitto.
With the collection of the fifth instalment, the funds received by Italy linked to the Nrrp will rise to 113 billion euros, out of a total of 194.4 billion allocated by the European Union. Meloni proudly underlined Italy’s “double record”: our country is the first in Europe to have requested both the fifth and sixth instalments. “We have fully entered phase 2 of the Nrrp, that of the concrete implementation of investments to shape the Italy of tomorrow,” declared the Premier during her speech at the control room meeting.
Growing investments and objectives achieved
Minister Fitto highlighted that the data show a significant increase in investments in public works, with the South recording a growth rate of more than 50% during 2023. This represents an important stimulus to fill the territorial gaps in competitiveness and productivity of the nation. Among the 37 objectives achieved to obtain the sixth instalment, some of the most significant concern investments for the construction of infrastructures for the strengthening of the transport of methane gas from the South to the North, in particular the Adriatic Line, which provides for the expansion of the methane pipeline that passes through Puglia, from Sulmona to Sestino-Minerbio. In addition to these, there have been numerous other investments, including the strengthening of school sports facilities, the awarding of scholarships for specific training in general medicine and investments in rail connections on the Orte-Falconara and Taranto-Metaponto-Potenza lines -Battipaglia.
Economic and financial impact
According to data from the National Anti-Corruption Authority (Anac), the value of the tenders announced by the Municipalities and metropolitan cities amounts to over 34 billion euros, while those awarded reach approximately 21 billion, also considering the 10 billion coming from national funds other than Nrrp. The president of the National Association of Italian Municipalities (Anci), Antonio Decaro, explained that payments for municipal investments for 2023 amount to 16.3 billion euros, with an increase of 96% compared to 2017. In the first quarter alone of 2024, municipalities paid 5.8 billion euros for investments, with an increase of 1.4 billion compared to 2023 (+36%).
After the request for the 8.5 billion of the sixth tranche (of which 1.7 billion as a non-repayable grant and 6.8 billion as a loan), the verification and reporting actions of the 69 goals and objectives of the seventh instalment will be activated in the next few days, which is equal to 18.2 billion euros. More information on the state of expenditure of funds and the opening of construction sites will come from the half-yearly report on the Nrrp, which will be presented to Parliament in July.
Fitto said he was optimistic about Italy’s spending capacity, so much so that he rejected any form of “creative finance” to extend the timeframe of the Nrrp. The debate over the use of financial instruments to push spending beyond 2026 “is likely to be a sign of relaxation,” he said firmly.
Italy continues to prove itself as a leader in Europe in the management and implementation of the Nrrp, focusing on strategic investments that aim to improve infrastructure, education and essential services, while reducing territorial inequalities. The sixth instalment of funds will be a further step forward in this path of transformation and modernization of the country, which aims to create a more sustainable and competitive future for all citizens.
Italy’s commitment to pursuing the Nrrp with determination represents a positive example for other European countries, demonstrating how effective management and a clear vision of the objectives can lead to concrete and significant results. With the sixth instalment arriving and further funds already planned, Italy is well positioned to continue to grow and prosper in the European and global context.
Alessandro Fiorentino