PNRR: MEF decree approved for financial implementation of the plan

The Ministry of Economy and Finance, Mef, on 6 August last, issued a decree concerning the allocation of PNRR resources in favor of each Administration responsible for the interventions. With the National Recovery and Resilience Plan, we remind you, Italy has prepared an ambitious reform project divided into six missions.

The provision, published on 24 September in the Official Journal, triggers the process of financial implementation of the Recovery Plan and divides the 191.5 billion of the PNRR into 256 total expenditure items between investments and sub-investments divided between 23 central administrations and 526 objectives to be achieved , from now to 30 June 2026 .

Specifically, the resources will be used for:

  • new projects (124.5 billion);
  • existing projects (51.4 billion);
  • projects financed by the development and cohesion fund (15.6 billion).

The Mef decree consists of two attachments that we will now analyze.

The first annex is Table A called " PNRR - Financial framework for the administrations responsible ". This is the actual subdivision of the financial resources foreseen for the implementation of the interventions of the National Recovery and Resilience Plan (PNRR) and their assignment to the individual Administrations in charge of the interventions.

As emerges from the analysis of the table, most of the resources allocated by the instrument will be absorbed by the Ministry of Sustainable Infrastructure and Mobility (MIMS), with a total of 39.7 billion , closely followed by that of the ecological transition with 34.7 billion . 18 billion have been assigned to the Minister of Development , while that of Technological Innovation will be worth 12.8 billion . There are also huge investments available to the Ministry of Health , which will have 15.6 billion available and to Education with17.6 billion , plus almost 12 billion for universities and research . On the other hand, only 340 million are allocated to the MEF .

The second annex of the decree is Table B "Financial contributions and six-monthly art breakdown" which explains the operation of the release of the repayment installments and also the amounts of the individual six-monthly installments.

Obviously, the resources mentioned are not immediately available to the ministries, in fact, at the end of each semester, a request is made to Brussels for a repayment installment which will be conditional on the achievement of "objectives" (targets in the EU regulations) or "goals" set. for each stage. For this reason, the decree also establishes that the individual ministries will be responsible for monitoring the progress of the projects and for sending all data to the monitoring platform of the State Accounting Office.

Last August, the European Commission disbursed pre-financing to Italy for an amount of 24.9 billion euros , equal to 13% of the 191.5 billion allocated to the country. The 24.9 billion euros consisted of 8.957 billion in non-repayable aid and 15.937 billion in loans. Payments of the remaining 87% will be paid based on the completion of the targets set.

The Italian government is clear on how it intends to use the pre-financing funds obtained last August. For the most part, these are reforms or interventions already in progress. There are 105 projects for 2021 among which we recall two of particular interest for companies and both belonging to Mission 1 :

  • 1.7 billion for the tax incentives of the Transition 4.0 plan . These 1.7 billion are actually a share of a total package of 13.4 billion (to which the FC resources are added) (IN PROGRESS)
  • 1.2 billion: refinancing of the Simest fund for aid to Italian companies on foreign markets (IN PROGRESS because the mechanism is already active with law 394/1981)

Italy therefore aims to request the first installment of 24 billion euros , which should arrive by the end of the year, but in order to obtain it, the targets indicated for 31 December will have to be reached by the individual administrations.

However, good news arrives from the report presented to the Council of Ministers on 23 September by the Undersecretary to the Prime Minister, Roberto Garofoli, and by the Minister of Economy, Daniele Franco. The document highlights that of the 51 objectives and targets of the NRP to be achieved by the end of the year , 13 have already been achieved : five investments (equal to 21% of the total) and eight reforms (equal to 30% of the total).

The implementation work was therefore started but it is necessary, as also confirmed by President Draghi, that the ministries respect the commitments and develop: "a precise plan for the adoption of the reforms and for the completion of the interventions to be implemented by 31 December 2021 , in order to allow constant monitoring of the specific steps to be respected ".

We remind you that to implement the National Recovery and Resilience Plan, which contains the commitments undertaken by Italy in exchange for the funds allocated, our country should launch something like  528 measures by 2026 so… full speed ahead !!