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MNI: EU Nears Paying Italy Delayed EUR19Bln - Officials

The Italian government and the European Commission are nearing the end of a process of clarifying Italy’s progress on promised objectives which has held back payment of a third EUR19 billion tranche from the NextGenEU programme initially set to be confirmed in March, sources in both Brussels and Rome told MNI.

While the Commission’s assessment of Italy’s request for payment “is still ongoing”, it is now focussed on just a couple of targets for investments, an EU source told MNI.

These remaining issues are relatively minor, now that the two sides have agreed to remove more controversial investment projects, such as the construction of football stadiums to regenerate deprived urban areas, from the list of milestones required for the third payment, the EU source said.

ITALIAN CONFIDENCE

Italian government officials have expressed confidence in soon receiving the payment since the end of April, after what had been an initial one-month delay to allow Brussels to seek clarifications. In early May, Finance Minister Giancarlo Giorgetti said the money would arrive in days.

But the wait has started to raise concerns in Rome, where deliberations over unlocking the third tranche have overlapped with a debate over major changes to the National Recovery Plan which has been used as a basis for the NextGenEU targets and which are set to be ready before the end of August, an Italian official source told MNI. (See MNI: Italy Tells Brussels Will Miss June NGEU Deadlines-Source)

A biannual visit by Commission officials to evaluate progress in implementation of the existing plan and a long-expected declaration to parliament about the new plan by European Affairs Minister Raffaele Fitto could be key for the next steps, the Italian source said.

“It all will end well,” said the Italian source, referring to payment of the third tranche.

Other Italian officials insisted payment is close but did not want to give an estimated date. Commission officials also avoided giving any timeline for approval.

MNI Brussels Bureau | david.thomas.ext@marketnews.com
MNI Brussels Bureau | david.thomas.ext@marketnews.com

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