RECOVERY PLAN - Hopes or certainties? - The Bel Paese is still trying to find its way out of the heavy economic crisis caused by the Covid-19 pandemic. In this regard, the Recovery Plan comes into play, which in this article is explained by the economic expert Marco Ginanneschi.
So far the only certainty we have on the Recovery Plan is the sum of the available resources of 248 billion euros for Italy, but it is necessary to clarify first of all the terms of the various plans and programs that would otherwise be synonymous, without highlighting the differences of species that are not only technicalities but that help to understand the wide range of resources available.
The Recovery Plan regards the complex of the plans, inclusive of those previewed from the Next Generation EU that has the greater slice with 235 billions and a temporal horizon of use until 2026 and is composed for 191 billions from the Recovery and Resilience Facility (RFF)31 billion from the Complementary Fund and 13 billion from the React-EU programme.
The most important part of these funds is the almost 70 billion in subsidies, without of course disregarding the importance of all the rest of the amount of subsidized loans.
The PNRR (National Recovery and Resilience Plan) is divided into 6 main missions:
digitisation, innovation, competitiveness and culture
For the rest, for those who want to deepen the structure of the plan, on all government sites we have an excellent, but perhaps not as convincing, description of the needs and objectives to be achieved, in a meticulous but understandable way.
Who would disagree with the context analysis in the front pages? We provide in detail the percentages, statistics and trends on the state of health (or perhaps on the state of illness) of the economy of our country, the impoverishment of the population, the contraction of GDP, the increase of the public debt, the rise in unemployment and all the other elements that make us even more greedy about the unique opportunity we have to rise again.
The danger is that it becomes a rescue doughnut where clinging with all the strength we have, we risk to fall to the bottom because we are broken in movements and actions. Here, then, even more, is the need not only to understand where to intervene, but above all the methods that must be used for a systemic coordination of the entire administrative system that must start again with the simplification of procedures, that obviously do not loosen the verification regulations, but that optimize the authorization processes for faster and slimmer investigations.
The hope of all is to be able to start again building solid foundations on which to land the projects described in the PNRR presented by Italy and not risk that it can remain only the "dream book" not realized.
In the last few days we are witnessing a political clash in the dilemma: reforms now or reforms to a future political government?
Once again the short-sightedness of the political class is leading us to self-destruction, as demonstrated by the trend of Italian GDP in the last twenty years pre-covid compared to other European countries. That’s exactly what’s not working! We are a divided country that can not be united even in emergencies, when you risk wasting time on the color of the bib to wear when the race has already started and everyone else is running.
Just one point: is it possible that when we talk about reforms we need to talk about doing everything together? Tax, justice, health, school, social policies, we know that we are behind on everything but if we start to want to do everything together we risk, as usual, doing nothing.
At the moment, all we need to do is get a grip on the administrative simplification and the code of public contracts (which many people like to call, in non-technical jargon, the procurement code) if we want to make effective but above all efficient use of the funds that have been allocated.
The hope of all is to be able to start again building solid foundations on which to land the projects described in the PNRR presented by Italy and not risk that it can remain only the "dream book" not realized.For more information about the world of work, click here
To learn more about Marco Ginanneschi, click here
Marco Ginanneschi is Professor of Economics at Link Campus University, Chartered Accountant and Statutory Auditor, founder of Sercam. He also is an economy journalist and innovation manager with corporate governance assignments with delegation of CFO.