MNI: Italy Looks At Special Vehicle To Spend NGEU Cash-Sources
MNI (ROME) - The Italian government is considering the creation of a special vehicle to allocate funds from NextGenerationEU, allowing them to be spent beyond the 2026 deadline, as part of its latest revision of the recovery plan which determines how its EUR191 billion allocation under the programme is to be spent, sources close to the governing coalition told MNI.
The initiative takes inspiration from Spain’s approach, which received approval under NGEU rules permitting funds to be used after 2026—provided they have already been allocated to a state-owned entity or a similar vehicle insulated from political interference.
Italy is struggling to meet the spending deadlines and is exploring creative solutions to extend the programme’s lifespan, as formal negotiations to push back the 2026 cut-off—an option advocated by some member states—have yet to yield results, sources said. (See MNI: Italy Aims At NGEU Wriggle Room Over 2026 Deadline)
While NGEU regulations allow for such a partial extension, European Commission approval is required. Brussels scrutinises the nature of the projects, the state-owned entities involved, and the adjudication process to ensure they are shielded from political or budgetary influence, sources noted.
“It is important to check and guarantee that this money can’t be reallocated to another part if politics asks for it,” a source involved in the Italian plan told MNI.
Rome is confident that Brussels will sign off on the proposal, which falls under the remit of Raffaele Fitto, European Commission Executive Vice-President for Cohesion and Reforms. Fitto, who previously oversaw Italy’s recovery plan as a government minister, had previously sought alternative ways to accelerate or extend the programme but opposed adopting Spain’s approach for Italy.
CREATION IN 2026
Italy’s new European Affairs Minister Tommaso Foti is still refining the details of the proposal, but unlike Spain’s plan—which used existing state-owned entities—Italy would establish new structures to start receiving funds in 2026.
Most of the projects that could be included in this framework are infrastructure-related, which makes delays more difficult to manage. However, the exact amount of funds that could be allocated remains unclear, as it will depend on how much administrations are able to spend within the existing timeframe.