MNI BRIEF: EU To Pay Italy EUR18.5 Bln In NextGenEU Compromise

The European Commission and Italy have reached a compromise on a key element of the country’s third disbursement request for EUR19 billion under the NextGenerationEU programme, which should end the months-long delay of its approval and shift part of the payment to the end of the year.

Italy and the Commission have agreed an amendment to student housing measures, which were an intermediate target under NextGenEU. The compromise will introduce a new milestone in the fourth instalment to ensure that the final target of 2026 is achieved, a European Commission official said, adding that contacts with the Italian authorities on this topic had been “constructive”. (See MNI: Italy To Delay ESM Vote Until After Summer – Sources)

Under the compromise, Italy will now receive EUR18.5 billion, with the EUR500 million for student housing added to a fourth tranche later in the year.

“As usual, the Commission will formally assess the proposed amendment in the context of the framework related to revisions to [Recovery and Reconstruction Plans]” she added. (SeeMNI: EU Asks Italy To Speed Up National Recovery Plan Overhaul)

The Commission official said the EC did not foresee changes to the overall amount of payments that Italy is expected to receive in 2023, taking into account both the third and fourth payment requests. The country is due about EUR200 billion over the life of the programme.