Recovery Fund, government green light for the 210 billion euro PNRR

13/01/2021 – The Council of Ministers approved late yesterday evening National Recovery and Resilience Plan (PNRR) which will have to implement the program in our country Next Generation EU, launched by the European Union to deal with the pandemic.

The action to relaunch the country outlined in the Plan – explains the Government – is guided by policy objectives and interventions connected to the three strategic axes shared at European level: digitization and innovation, ecological transition, social inclusion. The Plan makes it possible to face, in a radical way, the profound transformations imposed by the dual transition, ecological and digital, a challenge that requires strong collaboration between public and private.

Furthermore, through an integrated and horizontal approach, it aims at strengthening the role of women and the fight against gender discrimination, the increase of skills, the capacity and employment prospects of Young people, al territorial rebalancing and at development of the South. These priorities are pursued across the board.

The Plan is divided into six missions, which represent structural “thematic areas” of intervention:
1. digitization, innovation, competitiveness and culture;
2. green revolution and ecological transition;
3. infrastructure for sustainable mobility;

4. education and research;
5. inclusion and cohesion;
6. salute.

Taken together, the missions group sixteen components, functional to achieving the economic and social objectives defined in the Government’s strategy, which in turn are divided into 47 lines of action for homogeneous and coherent projects.

Efficiency of public buildings and super-bonuses 110%

As part of the mission ‘Green revolution and ecological transition’ we find the component ‘Energy efficiency and redevelopment of buildings’, consisting of two project lines:
– the realization of a program of efficiency and safety of the public building heritage, with particular reference to schools, public housing, municipalities and judicial towns:
– the introduction of a temporary incentive for energy requalification and anti-seismic adaptation of private real estate assets, through a tax deduction equal to 110% of the costs incurred for the interventions.

This is the superbonus 110% recently extended until June 2022. In the PNRR it is expected to extend the application of the measure to 30 June 2023 for the IACP and to 31 December 2022 for condominiums, regardless of the completion of at least 60% of the works.

Infrastructure: will the PNRR bridge the gap in the South?

The mission ‘Infrastructures for sustainable mobility’ aims to complete by 2026, a first and significant step in a longer-term path towards the realization of a modern, digitized and sustainable infrastructure system from an environmental point of view, taking into account the specific features of the orography of the Italian territory.

By adding resources to existing projects and accelerating them, as well as introducing new ones, the aim will be to build and complete works that are part of European infrastructure projects or that go to fill gaps that have hitherto penalized the economic development of the country and, in particular, of the twelve o’clock and of Islands. Investments are planned on the railway network, for securing road arteries and to develop a port system competitive.

The resources of the PNRR: 210 billion euros

The total resources allocated in the six missions of the PNRR amount to approximately 210 billion euros. Of these, 144.2 billion finance “new projects” while the rest 65.7 billion are allocated to “existing projects” which will receive, thanks to their placement within the PNRR, a significant acceleration of the time profiles of realization and therefore of expenditure. With the Plan, the Government intends to maximize the resources allocated to public investments, the share of which exceeds 70%. The incentives for private investments are around 21%.

Using the national resources of the Development and Cohesion Fund 2021-2027 not yet planned, it was possible to increase investments by around 20 billion for new projects in important sectors, including fast rail network, the integrated port facilities, the local transport sustainable, broadband and 5G, the integral cycle of waste, social and health infrastructure in the South.

The one approved last night is the government proposal of PNRR that it will be sent to the Chamber of Deputies and the Senate of the Republic in order to acquire the evaluations.