NextGenerationEU: Italy submits request to revise its recovery and resilience plan and add a REPowerEU chapter

Italy’s proposed REPowerEU chapter includes various reforms, includingin the development of renewable energy, the boosting of green skills in both the public and private sector, the tackling of environmentally harmful subsidies, and the improvement of biomethane production. The chapter also includes three main areas comprising several investments, notably related to the enhancement of energy grids, energy efficiency and strategic supply chains.

Italy has proposed to revise 144 investments and reforms related to the six thematic areas of the plan (the so-called ‘missions’). They concern digitalisation and competitiveness, the ecological transition, sustainable mobility, education and research, inclusion and cohesion, and health.

Italy’s request to modify its plan is primarily based on the need to factor in recent global headwinds such as high inflation and supply chain constraints.

Italy’s allocation under the REPowerEU chapter in terms of new grants is €2.76 billion. Italy has not proposed to transfer funds from the Brexit Adjustment Reserve (BAR) to its recovery and resilience plan.

The Commission will now assess whether the modified plan still fulfils the assessment criteria outlined in the RRF Regulation. If the Commission’s assessment is positive, it will make a proposal for an amended Council Implementing Decision to reflect the changes to the Italian plan. The Council will then have up to four weeks to endorse the Commission’s assessment.

More information on the process concerning REPowerEU chapters and the revision of recovery and resilience plans can be found in this Q&A.

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