ROME, Feb. 10 (Xinhua) -- The government of Italy is focusing on meeting the requirements for the country to qualify for the next tranche of the European Union (EU) recovery fund set to be distributed in June, analysts have said.

In recent weeks, Italy has reported positive news on the economic front. Official figures showed that the country's gross domestic product (GDP) grew by 6.5 percent in 2021, recouping a large part of the damage from an 8.9 percent economic retraction in 2020 caused by the COVID-19 pandemic.

The 6.5 percent figure exceeded last December's 6.3 percent growth estimate by the country's National Institute of Statistics (ISTAT).

The Italian Stock Exchange in Milan has gained nearly five percent since its 2022 low on Jan. 24. The ISTAT's retail sales and other indicators were also stronger for the latest reporting period.

Analysts told Xinhua that a big factor determining whether the positive trend will continue will be the country's access to the next tranche of 24.1 billion euros (27.1 billion U.S. dollars) in grants and loans from the National Recovery and Resilience Plan (PNRR).

For that to happen on schedule, Italy will have to meet some 45 goals and standards specified by the plan. These include data showing that the money provided is being spent effectively, efficiently and according to the plans the country published last year, which include an array of government reforms in areas such as the tax system or the government's procurement system.

The money to be made available in June will be the second tranche of a broad plan that will provide Italy with various forms of financial assistance.

These developments came in the wake of a contentious period resulting in President Sergio Mattarella signing on for a second seven-year term. Prime Minister Mario Draghi had been a candidate for that post.

According to Daniele Albertazzi, an Italian national working as a professor of political science at the University of Surrey in Britain, the PNRR will assure a level of stability for the government despite the prickly presidential debates.

"The parties in government will work toward these important goals, and they can probably count on support from the European Commission," Albertazzi told Xinhua.

Draghi used his first major speech since Mattarella's re-election to focus on the the standards required to receive the full PNRR payment, noting he would formally request government ministers to "indicate the state of implementation of the investments and reforms" within their purview, including any "need for regulatory and corrective measures connected with the achievement of the aforementioned goals and standards."

"The good news for Draghi is that if the government manages to achieve the reforms needed to access the fund earmarked in the PNRR, it may strengthen his political position and leave him in better shape than he was before" the debate over the presidency, Albertazzi said.

Lorenzo Castellani, a professor focusing on the history of political institutions at LUISS University in Rome, said the fate of the next PNRR tranche is important enough that the government may delay certain reforms until after the PNRR-related goals and standards are met.

"The PNRR is clearly a major priority, but beyond that there is a certain degree of uncertainty for the government and it will remain that way until the national election in 2023," Castellani told Xinhua, referring to the national general election scheduled for the first half of next year. Enditem

Related

Go to Forum >>0 Comment(s)