The government requested the seventh instalment

Pnrr, 67 second-half targets closed in extremis. Foti: now working on revision

Contracts, buses, railways in port. Application to collect the new instalment of 18.3 billion sent to Brussels. Publication in the Official Gazette of the decree approved on 23 December is awaited

5' min read

5' min read

Italy has sent the European Commission the request for payment of the seventh instalment of the EUR 18.25 billion Pnrr. In the early afternoon, the government declared that it had achieved all 67 targets for the second half of 2024, subject, however, to the publication in the Official Gazette, expected this evening, of the latest decree-law approved on 23 December by the Council of Ministers, which contains two urgent provisions necessary precisely to be able to declare as many targets met. This is the first goal officially cut at the photo finish by Minister Tommaso Foti after the handover with Raffaele Fitto, who 'migrated' to Brussels in the role of executive vice-president of the EU executive.

PPA contracts from renewables, first regulatory correction

The objectives covered by the measure are the responsibility of the Ministry of the Environment and the Ministry of Education. The first relates to the fourth reform 'Mitigation of the financial risk associated with Ppa contracts from renewable sources' of the RepowerEu chapter, i.e. those that allow companies to purchase clean energy produced by plants located off-site: the provision states that the Gse will take on the role of guarantor of last resort for the management of counterparty default risks in long-term contracts from renewable sources. It will be a decree by the Minister for the Environment, Gilberto Pichetto Fratin, to set the terms and conditions. And it will be ARERA that will define the fee to be paid by contractors for access to the guarantee. The charges will be met by drawing on the proceeds from the auctioning of CO2 emission quotas from 2025.

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The reworking of the technical education reform

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The second change in extremis concerns the reform of technical education: for the 2025-2026 school year, when it is first implemented, a decree by the minister Giuseppe Valditara is entrusted with the task of identifying the measures to relaunch institutes, from updating the profiles of the curricula in force to enhancing skills-based teaching, instead of a DPR that would have taken much longer, in fact exceeding the 31 December deadline set for the launch of secondary legislation.

Targets in place as early as the end of October

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The remaining 65 targets, divided into 32 targets and 35 milestones, passed the last tests. The Court of Auditors, in its last semi-annual report on the progress of the NRP, had reported that eleven of the 67 targets had already been met by the end of October. Some relate to the digitisation of public administration, such as the migration to the cloud with at least one service by 206 entities. Also reached were the justice milestones relating to the 95% reduction in the backlog pending as of 2019 in the second-degree civil courts, as well as the awarding of contracts for the implementation of the investments of Terna Tyrrenhian Link between Sicily and Campania and SA.CO.I.3 in Sardinia and Tuscany, and the reconnaissance of all the measures for the restoration of watercourses and the restoration of public buildings relating to the post-flood reconstruction in Emilia-Romagna (where the government is still awaiting the appointment of the extraordinary commissioner who will succeed General Francesco Paolo Figliuolo, who has moved to the role of deputy director of Aise).

The case of scholarships for innovative doctorates

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Even the only objective that caused concern for the accounting magistrates - the allocation of 6,000 scholarships for 'innovative doctorates that respond to the innovation needs of companies' - has overcome the difficulties. As of 30 October, 3,416, or 57 per cent, had been activated. However, Ministerial Decree 630/2024 had indicated the reallocation procedures that were to be used to ensure that the target was reached, together with the counting of the scholarships renounced in previous cycles, "whose imputability to the target," reads the accounting magistrates' report, "will be established by the European Commission's evaluation.

The last knots solved, from procurement to Caput Mundi

Also on the list are the new regulatory framework on tenders and concessions, with the entry into force of the provisions on project financing, incentives for the qualification and professionalisation of contracting stations, measures to improve the speed of decision-making in the awarding of contracts, and the share of public personnel trained through the Professionalisation Strategy for Public Purchasers. Decisive for achieving the objectives the legislative decree also launched by the pre-Christmas Council of Ministers. Also on the list are the adoption of the implementing decrees of the annual competition law for 2023; the purchase of at least 800 buses to upgrade the regional bus fleet for public transport (by the end of October, half of them had been bought); and the improvement of 700 kilometres of railway line sections in metropolitan hubs and key national connections. Finally, the little mystery of the Caput Mundi investment in Roma Capitale, incorporated in the programme of the Jubilee 2025 that has just begun, has been clarified. By the end of the year, one hundred cultural sites in the capital are to be assured that the redevelopment has reached an average of 50 per cent of the state of progress. The Ministry of Tourism considered the achievement of the target already in the autumn to be guaranteed, but the Court of Auditors noted that 'this implementation information is not currently available on the ReGiS platform. Therefore, the Ministry's Mission Unit has reported the criticality and urged the implementing entities to update it promptly'.

With the seventh instalment, payments to Italy exceed 140 billion

The submission of the payment request will, in any case, only be the beginning of a long process of verification of the declared targets achieved: the so-called 'assessment', given the large package of targets, is destined to last for months. Proof of this is that the collection of the sixth instalment of 8.7 billion linked to the (only) 39 targets of the first half of the year only arrived on 23 December, the same day as the CDM that passed the decree-law with the corrective measures for the seventh. Italy has so far received EUR 122 billion, 63% of the total allocation of its EUR 194.4 billion NRP. With the new tranche it will reach the figure of EUR 140.3 billion in 2025, over 72% of the total endowment.

Foti: 'Pnrr admits no pauses, work on revision now'

On the path of our Plan, however, looms the new revision announced by Foti, which should take shape in February: that will be the real novelty of the new year, which in the government's intentions should help to cancel the unattainable objectives in 2026 or to reshape those that are in trouble. Work will begin in this direction with the ministers as early as the next steering committee meeting in January. "The NRP does not allow for stoppages," Foti comments. "Starting from the first days of 2025 we will work hard to achieve the targets included in the last three instalments and for the reinforced monitoring of the Plan's implementation status, in order to identify all the necessary adjustments to complete the planned reforms and investments."

The unknowns and the extension hypothesis

A method already tried by Fitto for the maxi rewrite of the NRP approved by the European Commission exactly one year ago. With a few extra worries. Because that operation had involved a laborious negotiation with the European Commission, almost ten months long. Time that cannot be afforded today. Unless Brussels officially starts putting on the table the hypothesis of an extension of the Recovery and Resilience Plans beyond the 2026 deadline. The Minister of the Economy, Giancarlo Giorgetti, has been calling for this since last spring.

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