The Recovery and Resilience Plan: Next Generation Italia
Next Generation EU is a great opportunity for Europe and Italy as well. The Italian Recovery and Resilience Plan translates this opportunity into action.
With the RRP and its reforms Italy is going to be a fairer, greener and more inclusive country, with a more competitive, dynamic and innovative economy.
The RRP defines actions and interventions to overcome the economic and social impact of the pandemic, acting on the country’s structural nodes and successfully facing the environmental, technological and social challenges of our time.
The Plan mobilizes over 300 billion euros, the 210 billion coming from EU Next Generation program are complemented by the funds allocated with the 2021-2026 budget planning.
The RRP defines a broad and ambitious package of investments and reforms to unleash Italian growth potential, to generate a strong upturn in employment, to improve the quality of work and services for citizens and territorial cohesion and to promote the ecological transition.
The relaunch action is connected to three strategic axess – digitisation and innovation, ecological transition and social inclusion - to restart growth and radically improve the competitiveness of the economy, the quality of work and people's lives.
At the same time, the Plan's lines of action maximise their impact on three overarching priorities: gender equality, young people and the South of Italy. The NRRP addresses these issues favouring women's empowerment, enhancing young people’s skills, abilities and employment prospects, and increasing the regional rebalancing and the development of Southern Italy.
In addition to the EUR 196.5 billion assigned to Italy by the Recovery and Resilience Facility, the Plan includes EUR 13.5 billion from React EU and EUR 1.2 billion from the Just Transition Fund. Moreover, part of the national funds dedicated to Cohesion and Development will be integrated into the Plan, to increase the share of public investment in the NRRP and to strengthen measures for territorial cohesion, with a strong focus on Southern Italy.
Investment and reforms are the cornerstones of the Plan. The resources allocated for public investment, characterized of their multiplicative effect on production and employment, account for 70% of the total. At the same time Transition 4.0 will provide a very strong stimulus to private investment.
The reforms’ framework of the Plan, in line with the EU Country Specific Recommendations, aim to strengthen competitiveness, reduce bureaucratic burdens and remove constraints that have slowed down investments or reduced their productivity. The Plan includes the reform of Justice and of Public Administration, the reform of some key elements of the tax system, to make itfairer, simpler, and more efficient; moreover, it aims to improve the labour market in terms of greater equity and to promote competition and sector reforms, to increase the effectiveness of interventions and projects of the Plan. Green and Digital transition will be the core of this project, which aims to shape Italy’s future.
This vast package of investments and reform projects will result into a concrete and significant increase in growth and employment rates, compared to the base scenario: by 2026, the final year of the Recovery Plan, the positive impact on GDP will be equal to, approximately, 3 percentage points.
These positive results will be further accentuated by the leverage effect that will characterize many of the Plan's projects, as well as by structural reforms. In fact, the NRRP will employ, in some areas, the use of financial instruments to facilitate the mobilisation of private capital, other public funds or Public-Private-Partnership a combination of both, to support investment initiatives.
Of the overall 210 billion of resources allocated to the six missions of the RRP, 144.2 billion will finance "New projects", while the remaining 65.7 billion are allocated to "existing projects" consistent with the RRF regulation, which will receive a significant acceleration.
The mix of existing and new investment projects and incentives will allow to pursue several crucial objectives: on one hand sustainability of the public finance framework, on the other hand the acceleration of positive impacts of the Plan since the first year of implementation.
The RRP is made up of 6 missions, which in turn group 16 components and 48 lines of intervention, selecting the projects with the greatest impact on the economy and employment.
(c) = (a)+(b)
(e) = (c) + (d)
|DIGITISATION, INNOVATION, COMPETITIVENESS AND CULTURE||10.11||35.39||45.50||0.80||46.30|
|GREEN REVOLUTION AND ECOLOGICAL TRANSITION||30.16||37.33||67.49||2.31||69.80|
|INFRASTRUCTURES FOR SUSTAINABLE MOBILITY||11.68||20.30||31.98||-||31.98|
|EDUCATION AND RESEARCH||4.37||22.29||26.66||1.83||28.49|
|INCLUSION AND COHESION||4.10||17.18||21.28||6.35||27.62|
Digitisation, innovation, competitiveness and culture Digitisation, innovation, competitiveness and culture
The € 46.3 billion earmarked for the Digitisation, Innovation, Competitiveness and Culture mission – which total € 59 billion if budget planning funds are also factored in – are the second largest item of expenditure, accounting for more than 20% of total resources, and are aimed at achieving the country's modernisation objectives through a digital revolution in Public Administration and the production system, systemic reforms (Justice system and Public Administration) and investments in tourism and culture.
Within this mission, € 26.55 billion have been allocated to the Digitisation, Innovation and Competitiveness component of the productive system, with the aim of encouraging the digital transition of businesses, especially SMEs. This includes the strengthening of the Transition 4.0 programme with multi-year measures to promote investments in capital goods and the updating of machinery for which businesses can claim a tax benefit. Other interventions include the completion of the broadband project, the construction of ultra-fast fibre optic networks, 5G and investments in satellite monitoring. In addition, action will be taken to encourage the internationalisation of our economy and to promote innovation in fields such as publishing and the press. Taken together, the projects within this component will play a key role in the development of the South and youth employment.
A very important amount of nearly € 12 billion has been earmarked for the Digitisation, Innovation and Security component of the Public Administration. These resources will be used in various ways, starting with a national cloud and the interoperability of public administration databases. In addition, a ‘PA Strategic Innovation Programme’ based on organisational innovation will be developed, including by means of telecommuting, the enhancement and strengthening of human capital, the streamlining of procedures, and the dissemination of platforms, digital services and electronic transactions with a view to achieving a more reliable, user-friendly, interconnected PA that is at the service of citizens and able to evolve towards new organisational models of work (telecommuting and co-working).
The third component is dedicated to Tourism and Culture 4.0, namely two of the sectors most affected by the pandemic. The aim is to make use of the available € 8 billion to increase the level of attractiveness of the country's tourist and cultural system through the modernisation of tangible and intangible infrastructure. Among other things, projects for work on Rome's artistic and cultural heritage for the Jubilee and a Tourism and Culture 4.0 plan for greater integration among schools, universities, businesses and cultural venues are envisaged.
Green revolution and ecological transition Green revolution and ecological transition
The mission with the largest allocation of resources is the one related to the Green Revolution and Ecological Transition, to which more than 31% of the total amount of the Plan will be allocated, namely € 69.8 billion (to be added to the funds of the budget planning, for a total of more than € 79 billion). Its goal is to intensify Italy's commitment to the ambitious objectives of the European Green Deal and to create new opportunities for growth and development for our country.
Within this mission, a large set of resources involves the component dedicated to the Energy Efficiency and Requalification of Buildings, which is fundamental for reducing emissions. Almost € 30 billion will be allocated to interventions on public buildings (which include the renovation of new buildings, with a focus on schools, hospitals and social housing, and other requalification, energy efficiency and digitisation interventions) and the enhancement of private buildings, in particular with the extension of the 110% super bonus.
In addition, more than € 18 billion will be dedicated to the Energy Transition and Sustainable Local Mobility component, with a view to increasing the share of energy produced from renewables, in line with European objectives, enhancing the industrial supply chain, including that of hydrogen, and upgrading and digitising network infrastructure. Investments are envisaged for the decarbonisation of the former ILVA plant in Taranto. The aim is to develop sustainable mobility, thereby strengthening infrastructure and cycle tracks and substantially renewing the LPT fleet. A 50% share of investments in this component has been earmarked for southern Italy.
Within the same mission, € 15 billion will be allocated to the Protection and Enhancement of Land and Water Resources component, which includes significant interventions with respect to hydrogeological instability, forestation and the protection of forests, reservoirs, and the sustainable management of water resources.
Moreover, € 7 billion will be allocated to the Green Business and Circular Economy component, the objectives of which are, on the one hand, the promotion of environmental sustainability in the agricultural supply chain and the strengthening of the competitiveness of farms, and, on the other hand, the construction of new waste-to-energy plants to complete the cycle and the modernisation of existing ones. Investments will be made to improve separate waste collection and the conversion of biogas.
Infrastructure for sustainable mobility Infrastructure for sustainable mobility
The mission consists of two components, with resources amounting to a total of € 32 billion (which exceed € 33 billion when factoring in budgetary planning funds), namely more than 14% of the Plan's resources.
The first component of the mission, which is worth € 28.3 billion, involves High-Speed Rail and Road Maintenance 4.0 and envisages the implementation of works on the railway network, with the aim of improving the circulation of citizens and goods and rendering it more sustainable. In addition to said works, interventions for the securing and digital monitoring of viaducts and road bridges in the areas with the greatest criticalities are envisaged.
The second component, which is dedicated to Intermodality and Integrated Logistics, envisages a national investment programme for improving the competitiveness and environmental sustainability of the port system, with a view to developing trade linked to major European lines of communication and enhancing the role of southern Italian ports, with a budget of over € 3.5 billion.
Education and research Education and research
This mission, which has a budget of more than € 28 billion (€ 34.04 billion when factoring in development and budget planning funds), is focused on future generations and has two components in terms of investments, which will be accompanied by a series of corresponding reforms.
The first component, which is dedicated to the Enhancement of Skills and Study Support, allocates resources amounting to more than € 16.7 billion, which have been earmarked primarily for the enhancement of skills and study support, to the fight against educational poverty and geographical disparities in terms of quantity and quality of education, also through a major investment in nurseries and kindergartens. Hence, the focus is the strengthening of teaching, STEM skills and multilingualism by acting on the ongoing professional development of staff, with a specific focus on the training of women.
The second component (From Research to Business), the budget of which is over € 11.5 billion, aims at increasing the growth potential of the economic system by leveraging investments in research and development. A number of lines of action are envisaged which involve the strengthening of the R&S chain in research and the economy and the enhancement of technology transfer mechanisms (by encouraging partnerships in research and development).
Inclusion and cohesion Inclusion and cohesion
The Inclusion and Cohesion Mission envisages a total budget of € 27.6 billion from Next Generation EU, to be added to the € 55-odd billion from the 2021-2026 budget, for a total of almost € 85 billion. It is structured into three components and plays a major role in the pursuit of the cross-cutting objectives of the entire RRP.
The first component is dedicated to Employment Policies, for a total of € 12.6 billion from Next Generation EU and € 24.6 billion from the 2021-2026 planning. It envisages a structural review of active policies, the strengthening of employment centres and their integration with social services and the network of private operators, the modernisation of the labour market, with a view to improving the employment situation especially of young people, women and vulnerable groups, and the promotion of new skills through the reform of the training system. The component will be characterised by a high focus on the gender, generational and geographical dimension, which will be underpinned by complementarities with the contributions reduction measures for young people, women and the South partially financed by ReactEu.
The second component, which involves Social infrastructures, Families, Communities and the Voluntary Sector, will employ more than € 10.8 billion worth of resources from Next Generation EU and € 30.6 billion from the 2021-2026 planning period to address situations of social and economic fragility and support families and parenthood. It envisages a specific line of intervention for people who either live with disabilities or are not self-sufficient and provides for an increase in infrastructures, services and local assistance networks. In addition, projects are envisaged to address conditions of social vulnerability, material poverty and housing hardship through the strengthening of social services, the enhancement of social housing initiatives and urban regeneration interventions. Family Act interventions consistent with the priorities of the RRP have also been planned, thereby enhancing the contribution of the Voluntary Sector.
The third component, namely Special Interventions for Geographical Cohesion, has been allocated € 4.1 billion from Next Generation EU. It envisages the strengthening of the national strategy for inland areas relaunched by the 2030 Plan for Southern Italy, with interventions on social infrastructures and measures to support young people and the ecological transition. In addition, additional funds have been included for private reconstruction and the enhancement of public services in areas affected by earthquakes, as well as interventions targeted at the South with a view to building infrastructures and laboratories for technology transfer in marginalised urban contexts to be regenerated.
€ 20.7 billion, of which € 19.7 billion will come from Next Generation EU, have been allocated for strengthening our healthcare system, with actions on two fronts: the development of a local network that is increasingly close to people and the modernisation of the NHS's technological equipment.
The first component, namely Proximity Assistance and Telemedicine, which has a budget of € 7.9 billion, is aimed at strengthening and reorienting the Healthcare System towards a model centred on local areas and social and healthcare networks, overcoming the fragmentation of the various regional healthcare systems and ensuring uniformity of the Essential Levels of Assistance, and strengthening prevention and local assistance with a view to increasing integration among hospital, local healthcare and social services. In addition, it aims at developing a healthcare model that protects the health of citizens by interacting with areas such as environmental safety, also to mitigate the impact of polluting factors.
The second component, namely Healthcare Innovation, Research and Digitisation, which is worth a total of € 11.82 billion, aims at disseminating telemedicine tools and activities, and at strengthening the healthcare system's information and digital tools, starting with the dissemination of electronic medical records. Moreover, it allocates significant investments to the modernisation of equipment and the creation of safe, sustainable, cutting-edge hospitals.