Italy is set to approve changes in how the government oversees the spending of billions of euros in European Union recovery funds, a move that risks triggering a clash between Prime Minister Giorgia Meloni’s administration and Brussels.
(Bloomberg) — Italy is set to approve changes in how the government oversees the spending of billions of euros in European Union recovery funds, a move that risks triggering a clash between Prime Minister Giorgia Meloni’s administration and Brussels.
A decree due to be approved Thursday plans to give the government more leeway over how the funds will be allocated and spent, and also streamlines the authorization process for new projects, according to a draft seen by Bloomberg News.
In particular, the decree would allow the economy ministry to water down requirements for general contractors before funds are disbursed for new projects, raising the risk of challenges from the EU over allegedly lax oversight. The draft could be changed or delayed.
Another potentially problematic issue is shifting oversight of the plan’s implementation from the economy ministry to the prime minister’s office. This would change the framework which had been agreed to earlier, under which the EU has already disbursed money, and could set up a legal fight with Brussels, according to one person familiar with the draft.
A Rome government spokesperson declined to comment. The European Commission had no immediate comment.
Paolo Gentiloni, the EU economy commissioner, said earlier this week that the bloc will allow tweaks to specific national recovery fund projects but won’t permit big overarching revamps.
Italy will receive €192 billion ($205 billion) as part of the EU’s post-pandemic plan, but it has so far struggled to allocate and spend the money as quickly as planned, with authorization processes delayed by red tape. It has already received €67 billion.
The decree is expected to be approved Thursday evening. It will take effect immediately but will still require parliamentary approval and lawmakers could modify it.
–With assistance from Jorge Valero.
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