MNI: Italy Seeks To Avoid More NextGenEU Payment Delays

Italy will increasingly negotiate with the European Commission to change targets in advance under its EUR192 billion NextGenerationEU programme as it seeks to avoid further delays to payments as objectives linked to disbursements become progressively more challenging, Italian government and EU officials told MNI.

The difficulty in securing the EUR19 billion third NextGenEU tranche, not paid until last week after Italy missed a June 30 deadline to formally request the funds, has convinced Rome to become more proactive, sources said, pointing to a request already submitted on July 12 to modify 10 targets linked to the fourth tranche.

“This method will allow a faster disbursement of the plan,” a source close to Italy’s Recovery Plan which is the basis for the targets told MNI, adding that Rome’s priority will be obtaining the scheduled two disbursements a year rather than meeting deadlines for objectives.

The European Commission has given a positive assessment of the July request, sources from Rome and Brussels said.

PREVENTATIVE APPROACH

“Member States will … have up to four weeks to endorse the Commission's assessment”, an EU source told MNI, adding that this approval would then allow Italy to submit its fourth payment request.

“We are confident that with this preventive approach we will be able to get the EUR35 billion expected for 2023,” an Italian source said.

Still, despite Italy’s efforts, once the fourth payment request is made, “the usual two month-period for the Commission to assess will start, followed by the four-week endorsement period for the Council”, the EU source said, stressing that the Commission will try to ensure that the funds reach Italy as soon as possible “as always.” (See MNI: EU Asks Italy To Speed Up National Recovery Plan Overhaul)