MNI: Italy Looks For Ways To Spend NGEU Money -Officials
Italy’s sixth revision of its plan for spending EUR194.4 billion in NextGenerationEU funding will axe some projects which are running behind schedule, while adding others already financed with national funds, but it looks as if about 4% to 6% of the funds will be lost, sources close to the matter told MNI
Including projects already funded with Italian money would unlock other funds which it would be at risk of losing if not spent before the NGEU deadline, the sources said, adding that while the sums involved have not been determined it will also allow more to be allocated to areas such as defence.
“We need to prioritise and the main goal is to not lose money,” a source involved in the plan said, noting that while the government has done a good job in spending the EUR72 billion of NGEU funds which were provided as grants it has been slower to allocate the remainder which has come as loans. Only about 40% of the total NGEU funds have been spent so far, with an August 2026 deadline for last requests for disbursements.
The government will be unable to find ways to spend more than about 95% of the NGEU funds allocated to it, one source said.
LIMITED EXTENSIONS
The revised plan is likely to be made public by the end of this week, before sending to parliament. It has to be sent for approval to the European Commission before the end of 2025.
Italy, along with countries like Spain, has argued for an extension of the NGEU deadline, but Brussels has only agreed to push this back for some projects run by state-owned companies. However, the Commission’s decision to allow more of the investments to be spent in areas such as defence has been well received by Rome. (See MNI: Italy Looks At Special Vehicle To Spend NGEU Cash-Sources)
Italy has made eight NGEU payment requests, of which seven have been approved, though some have provided only partial disbursements of the funds originally available and have been made subject to requirements for projects to be modified.
