Italy Stumbles in EU COVID-19 Recovery Fund Utilization

Italy faces challenges in spending European Union COVID-19 recovery funds, with only half of the allocated money invested. Administrative delays hinder progress on projects such as broadband networks and high-speed trains. The government aims to revamp and accelerate efforts to meet EU requirements by 2026.

Italy is struggling to efficiently use its European Union COVID-19 recovery funds, investing only half of the allocated resources so far. Government data highlights that of the 122 billion euros received to date, only 63.9 billion has been spent. Administrative hurdles and red tape are cited as major obstacles.

Despite Rome's ambition to receive a total of 194.4 billion euros by 2026, Prime Minister Giorgia Meloni's target for end-2024 investments remains unmet. The spending rate stood at a stagnant 45% since mid-2023. Opposition parties demand a thorough parliamentary review of the implementation processes.

The government hopes to rejuvenate its lagging economy with the funds, eyeing improvements in ultra-fast broadband, high-speed rail, and childcare. However, as Italy negotiates its final recovery plan modifications with Brussels, economist projections for economic growth remain modest at 0.7% for the coming years.

(With inputs from agencies.)