The inability of Italian officials to initiate and manage suitable projects presents a more fundamental challenge
Indeed. Italy is by far the biggest beneficiary of a vast facility that, for the first time, is financed with debt jointly underwritten by the member states. It stands to receive €191.5bn in grants and soft loans. If it does not spend the money fully and productively, economists will need to trim, if not eliminate, the annual 1-1.5 percentage points they have tentatively added to forecasts of Italiangrowth over the next ten years.
The inability of Italian officials to initiate and manage suitable projects presents a more fundamental challenge. By March 13th, more than a third of the way through the scheme’s implementation, Italy had managed to spend less than half what was originally intended by then.
Other problems concern the firms whose job it is to build the infrastructure projects that account for a large part of the scheme. As elsewhere in Europe, they face increased prices for raw materials and a workforce depleted by recession, first, and then by the pandemic. But they must also cope with a more specifically Italian difficulty: that of obtaining temporary credit from the banks for projects that have been commissioned, but for which the public financing is not yet available.
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Emmerdale's Mark Charnock leaves UK as he takes break from filmingThe Marlon Dingle star is currently enjoying some time away in Italy
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