Mario Draghi next week will announce a recovery package worth 221 billion euros to completely restructure the Italian economy as the country seeks to recover from the deepest recession since world war II.
The plan, which includes large investments in high-speed rail and green energy, as well as the digitalization of the entire public administration of the country, will rely on the EU’s pandemic recovery fund.
Italy and Spain are expected to be the two countries receiving the most funding from the program. The Draghi recovery planThe plan, which will be approved by the Italian cabinet later this week, involves 30 billion euros of Italian budget resources and 191.5 billion euros of loans and grants from the EU’s Next Generation program, who said about the plan said.
The plan is crucial not only for Italy’s hopes of raising significant growth records and accelerating the transition to a lower-carbon, high-tech economy, but also for credibility of the EU’s post-Covid 19 recovery effort.
Draghi, the former president of the European Central Bank, who has been appointed prime minister of the Italian national unity government this year, will present the plan to the Italian parliament early next week.
They will then be submitted to the European Commission – one of the national ‘recovery and recovery plans’ to be presented by 27 EU member states after they set up a 750 billion euro recovery fund. at one landmark summit last year.
The Draghi plan will focus on improving the efficiency of the Italian grid, investing in hydrogen power projects and other renewable energy sources, and improving the energy efficiency of public buildings, said those in the package.
Investment of EU funds will focus on six areas including the digital transformation of the Italian economy, climate and environmental investments, infrastructure, education, health, and promotion. gender inclusion and social inclusion.
Draghi also wants to push for structural reform to address long-standing bottlenecks in the country’s legal system and local governments that have hampered growth, people knowledgeable about the Prime Minister’s plans said.
These include digitizing public administrative procedures as well as overhauling the Italian legal system to speed legal cases, reorganize courts and modernize the judiciary.
Italy’s sluggish legal system has long been ranked as one of the slowest in the EU, and has been blamed by economists as a factor driving foreign investors away. According to the World Bank, the average time to execute a commercial contract in Italy is more than 1,100 days – almost double the average time in Germany, France and Spain.
Daniele Franco, Italy’s Economy Minister, will oversee how reforms and investments are made by government ministries and regional governments.
The EU Next Generation project requires member states to submit their plans by the target date of late April, with the goal of gaining approval from the European Commission and member states. .
The commission will then stipulate a loan of up to 750 billion euros in the capital market, which will then be distributed in the form of grants and loans to EU countries.