EC Warns Delays in Italy’s NRRP Implementation Threaten Economic Growth

Brussels: Delays in implementing Italy’s extensive post-COVID EU-funded National Recovery and Resilience Plan (NRRP) are putting the country’s economic growth at risk, the European Commission warned on Tuesday.

According to Ansa News Agency, the Commission emphasized that while NRRP funding has the potential to address gaps in Italy’s budget policies, delays in its rollout could exacerbate risks to economic growth. This warning was included in a factsheet dedicated to Italy, attached to a broader study evaluating the performance of the zero-emission manufacturing industry across EU member countries.

The Commission further noted that Italy’s economic growth relies significantly on public funding. However, with the rising public debt, Italy’s fiscal space is becoming increasingly constrained, which could hinder its ability to support sustained growth.