Answer to Written Question: Next Generation EU resources for southern Italy

(Source: European Parliament)

EN

E-007035/2020

Answer given by Mr Gentiloni

on behalf of the European Commission

(1.6.2021)

NextGenerationEU (NGEU), established by Council Regulation (EU) 2020/2094, allows the Commission to borrow up to EUR 750 billion (2018 prices) on the financial markets.

Of this, up to EUR 312.5 billion (2018 prices) in non-repayable support under the Recovery and Resilience Facility (RRF), the biggest but not sole instrument funded via NGEU resources. The RRF support is allocated between Member States according to population, gross domestic product (GDP) per capita and unemployment (calculation of 70% of the amount) and population, GDP and change of GDP (30%) at national level. For the non-repayable financial support, the maximum financial contribution for Italy is ca. EUR 68.9 billion in current prices, as indicated in Annex IV of the Regulation, without prejudice to the updated calculation by 30 June 2022. In addition, the RRF can provide up to EUR 360 billion (2018 prices) in loans, with a per-country cap of 6.8% of the 2019 Gross National Income.

The RRF regulation does not prescribe an allocation key as regards how the amount should be used at national level.

While the Commission is in regular exchanges with Italy to discuss its plan, it is up to each Member State to identify suitable reforms and investments, including the appropriate territorial balance and distribution. The Commission will assess each Recovery and Resilience Plan (RRP) along the criteria, including on whether the RRP is expected to contribute to “strengthen the growth potential, […] thereby enhancing the economic, social and territorial cohesion and convergence”.

With the REACT-EU initiative, additional resources for 2021 and 2022 are added to the ongoing 2014-20 cohesion policy programmes in Italy. EUR 10.6 billion (in 2018 prices) is allocated to Italy from the 2021 tranche, while the amount from the 2022 tranche will be determined in October 2021.

REACT-EU is based on national allocations, which are exceptionally not divided by categories of regions. It is up to the Member States to propose how this additional funding should be distributed between regions.

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