The National Recovery and Resilience Plan (PNRR) represents the Italian government’s strategic plan to promote economic recovery after the Covid-19 pandemic, using funds allocated by the European Union through the Next Generation EU program. This plan, which will last until 2026, is essential for the country’s green and digital development
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Table of Contents:
What is the National Recovery and Resilience Plan (PNRR)
The PNRR, acronym for “National Recovery and Resilience Plan”, was approved in 2021 to relaunch the Italian economy after the Covid-19 pandemic.
This is a unique opportunity to revive the economy, create jobs and support families and businesses. The plan received the final green light from the Council of the European Union in 2021.
How much do PNRR funds amount to
Italy’s PNRR was initially financed with 191.5 billion euros. Subsequently, at the end of November 2023, the plan was remodeled with a total allocation of 194.4 billion euros, of
which:
- 122.6 billion euros in the form of loans
- 71.8 billion euros in the form of grants
How is the PNRR structured
The PNRR is part of the European Next Generation EU (NGEU) program, a 750 billion euro package agreed by the European Union in response to the pandemic crisis. The plan is structured as follows:
- The main component of the NGEU is the Recovery and Resilience Device (RFF), with a duration of 6 years, from 2021 to 2026.
- The PNRR “Italy Tomorrow” is financed with 194.4 billion euros.
- Added to these are 30.6 billion euros from the Complementary Fund, financed through the multi-year budget variance approved in Italy since 2021.
The Next Generation EU funds represent the largest package of stimulus measures ever financed in Europe, destined to make Italy greener, more digital and more resilient.
How does the PNRR work
The PNRR is created following the guidelines issued by the European Commission and is divided into 7 missions and 16 components (initially there were 6). The main missions of the PNRR are
:
- Digitalization, innovation, competitiveness, culture and tourism
- Green Revolution and Ecological Transition
- Infrastructure for sustainable mobility
- Education and research
- Cohesion and Inclusion
- Salute
- RepowerEU
Among the most important changes in the new plan in force since 2023 is the introduction of the chapter dedicated to the “RepowerEU” plan, which includes 22 new measures, aimed at promoting the green transition, boosting energy efficiency and increasing the production of energy from renewable sources.
The PNRR also includes extensive initiatives for the digitalization of public administration, the extension of high-speed connectivity coverage, and significant support for the cultural and tourism sector. It includes interventions to improve environmental sustainability, promote the use of renewable energy sources and modernize transport infrastructure
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An important part of the PNRR is dedicated to strengthening the education system, research and education, with particular attention to youth and women’s employment, as well as targeted interventions to support disabled and vulnerable people. Public health is another fundamental pillar, with actions aimed at strengthening home care and local health facilities
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The installments for PNRR funds
The European Commission authorizes, on a biannual basis, the disbursement of funds to member States only if the goals (milestones) and objectives (targets) set out in the national plan are reached. To date, Italy has received:
- 24.9 billion euros as pre-financing in 2021
- 21 billion euros as first installment
- 21 billion euros as a second installment
- 18.5 billion euros as a third installment
- 16.5 billion euros as the fourth installment
- 11 billion euros as the fifth installment
On July 5, 2024, Italy sent the European Commission a request for payment of the sixth installment of the PNRR, equal to 9.8 billion euros.
How many PNRR funds have been disbursed
With the payment of the fifth installment on August 5, 2024, Italy exceeded 58.4% of the total amount of the PNRR, which amounts to 194.4 billion euros.
The 2024 changes to the PNRR
The Italian government made several changes to the PNRR during implementation, including changes on university housing and organizational changes introduced with the PNRR Decree converted into law in 2024. Among the main changes:
- The installation of more than one hundred PNRR coordination booths in all prefectures.
- The remodeling of the target on university housing with the expansion of investments in essential services dedicated to students.
- Meetings of the Control Room at Palazzo Chigi on the southern question.
PNRR and Recovery Plan
The PNRR is often confused with the Recovery Plan, but in reality the PNRR is only a part of the larger Recovery Plan, which also includes other European resources such as the 47.5 billion euros of the REACT-EU and the 30.6 billion of the National Complementary Fund.
Conclusion
The National Recovery and Resilience Plan (PNRR) is a key tool for Italy’s economic and social recovery, with a focus on sustainability, digitalization and inclusion. Thanks to funds from the European Union, the PNRR represents a unique opportunity to transform and modernize the country by 2026
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