Today’s European Council ended without any substantial change in the theme of the Recovery fund: states say they are willing to work on the issue but no major decisions have been taken, postponing everything for the next summit scheduled for mid-July in Brussels. “There is an emerging consensus on the recovery fund and on the financial statements, but at the same time we must not underestimate the different views“said President of the EU Council Charles Michel today at the press conference.
There Merkel stationery, together with Macron, underlined the urgency of finding an agreement, while the nicknamed “frugal four»(Austria, Holland, Denmark and Sweden) – again – said they were against any form of non-repayable loan and common debt issue.
But the rip off it is not in delay with which the Recovery fund can be made available, but in its related functioning, which could lead Italy to finance the recovery of others but to be able to do very little for itself.
Because the recovery fund could be a big rip-off for Italy
The Recovery fund, as it is thought of today (needs to be approved unanimously by the European Council, a goal far at the moment), has a “firepower” (which is now so fashionable to say) 750 billion euros in total – 500 billion in grants and 250 billion in the form of low interest rate loans.
According to what reported by EU Commission within one table emerged a few days ago, would arrive in Italy 153 billion19 billion less than previously thought could have come. In the same document it turns out that the contribution that Italy is called to make is equal to 12.8% of the total, that is 96.3 billion euros as a contribution to the European budget.
The recovery fund at a glance: Italy gives 96.3 billion euros to receive 56.7 billion.
It is not necessary to be “sovereign” to notice how inadequate the aid promised by Europe is in the current Italian situation, albeit present (it is natural, 56.7 billion euro is much more than 0 euro). But it is about 0.8% of the value of our GDP for four years, just to give a comparison metric.
What if the problem were not the recovery fund itself?
Here too, part of these 56.7 billion euros will be non-refundable – for which Italy will not be called upon to repay them – and part will be disbursed in the form of financing. However, it should be noted that the entire sum, as it is today, would be tied to gods target constraints. Italy, in a nutshell, will not be free to spend this money as it sees fit, but Brussels will determine the areas of competence. And it is already known that the EU wants investments with the money from the Recovery fund to be made in green sector, in the digitalization of the country, in social inclusion and in the field of sustainability.
Strategic fields for the recovery of a country in recession? debatable. How questionable remains the effectiveness with which the government will be able to manage the funding deriving from the Recovery fund (which if they arrived in 2021 would already be a miracle). In fact, the tragicomic history of the last few years has seen a long history that sees Italy repaying the funding deriving from the EU as it is unable to spend it.