«Pnrr, you can change. But we need clarity on revisions and times»- Corriere.it

Dear Director,
in the editorial of 9 April (The rigidity at the origin of the PNRR), Maurizio Ferrera underlined the traditional problems associated with respecting the deadlines of large infrastructure works, in Italy but not only. Hence – the reasoning continues – the even greater difficulties that would be encountered today in meeting the deadlines of an extraordinary plan such as the PNRR, the implementation of which would be further complicated by the excessive rigidity of Next Generation EU and in particular of the Recovery and Resilience Device (RRF, the program that finances national plans). This rigidity would be accentuated by the inflexibility of the European Commission in its interpretation.

A challenge for all countries

There is no doubt that the implementation of the various NRRPs represents a challenge for all EU countries, and even more so for Italy, which is the first recipient of these common resources in terms of volume of resources. There are fruitful, intensive and continuous exchanges between the Commission services and national authorities. However, I would like to clarify that Next Generation EU is not – as reported in the text – a rigid instrument. On the contrary, flexibility is defined in the perimeter of the Regulation, approved unanimously, not on the basis of the arbitrariness of the Commission. As Commissioner Gentiloni has reiterated in recent months, revisions of the plans are possible, provided that these are targeted revisions motivated by objective circumstances; not of modifications, so to speak, wholesale. Indeed, a number of countries have already made use of this possibility, including recently Germany, Finland and Luxembourg. We also expect to receive further amendments to the plans by the end of April with new chapters dedicated to the issue of energy security. That will be the occasion for changes to the PNRR that are deemed necessary. The Commission has also demonstrated flexibility with regard to compliance with the roadmaps linked to the implementation of the plans. An example is the recent announcement of an extension of the time frame for the evaluation of some of the measures included in Italy’s latest payment request.

Greater accountability

The RRF also has the advantage of being a “performance-based” tool, based on results, following an approach which, unlike other Community policies and programmes, is linked to the results themselves and not to the simple amount of expenditure. And these results are the result of a path defined by each individual country in its national plan agreed with the European Commission and the other Member States. This is an approach that encourages a greater assumption of responsibility (“ownership”) at the national level and can stimulate investments and virtuous reforms, but which in order to be successful requires a change of pace of the whole country-system. Instead, the editorial reveals a sort of resignation regarding the country’s ability to complete the great challenge of the PNRR. Ferrera writes about the dysfunctions of our political-administrative system: it is difficult to expect qualitative leaps in the short term. The PNRR, on the other hand, represents an opportunity to initiate precisely those qualitative leaps that are necessary.

The Pnrr also means reforms

In fact, the PNRR not only infrastructure investments but also reforms, including that – fundamental – of the public administration, whose benefits will unfold well beyond the duration of the plan. Finally, let’s not forget that we are still in the early stages of implementing the plan. Between now and the expiry of the programme, in 2026, there are still well over three years to carry forward the investments and the planned reforms.

The freezing of public investments

Ferrera rightly recalled the freezing of public investments observed in almost all EU countries in the 1910s. I would add that in just over a year and a half, Next Generation EU has made more than €150 billion available to Member States (of which 67 billion to Italy) and contributed to bringing the public investment-GDP ratio back to the highest levels in recent years, reversing the declining trend in public investment which has penalized the European economy over the last decade. It has been said several times that the PNRR remains an extraordinary opportunity, for Italy and for Europe. Stay true. Together with the swift approval of the economic governance reform, the effective implementation of the national plans is the basis for rebuilding trust between member states and can pave the way for the supply of those ‘European public goods’ which will be a key step in integration Europe after COVID and after Russia’s war of aggression. The Commission will continue to work together with national governments with the utmost willingness to overcome the critical issues. The success of Next Generation EU is a common goal in Rome and Brussels.