Investments for future growth
After the exit from the health emergency, Italy will finally have to return to growth. The National Recovery and Resilience Plan (PNRR) will be the keystone for the relaunch: Italy has 191.5 billion euros available, of which 69 are non-repayable, 122 are loans, and 30 billion are from the accompanying fund to PNRR.
With this fund, works that have a longer time horizon than the 6-year duration of the Recovery Fund, but which will have to run at the same speed, will be financed if possible.
The plan is a historic opportunity for the revival of the economy and requires an ambitious program of reforms so that resources are grounded and there are no obstacles to the opening of construction sites. The government is already working on this, explained Draghi, adding that it has appointed commissioners for 57 public works, already identified but waiting to be implemented.
The PM said the government has defined a clear and realistic time schedule for each work, and the Ministry of Infrastructure and Sustainable Mobility will carry out a quarterly monitoring on implementing the various phases so as to promptly remove any obstacles.
PM Draghi also addressed high Italian public debt, recalling the importance of “good debt” which can generate growth. With yesterday’s eyes, the markets looked at interest rates on public debt, which today are very low; with today’s eyes, markets look to growth, which must be sustainable.
Draghi also explained that after the pandemic crisis, it is very unlikely that Europe will go back to applying the same budget rules as it was before. All European countries must return to a path of sustained growth, and for this reason, governments will have to continue to allocate public resources to the economy, focusing mainly on investments once the health emergency is over.
Draghi concluded by saying, “The criticisms of Speranza are unfounded. I respect him, and I wanted him in the government. I thank Minister Speranza for the work he has done.”