The government had already made some changes to the plan for the fourth instalment, worth €16 billion, that is due later in the year.

Under the changes around half a billion of the €19 billion envisioned for the third tranche would be shifted to the fourth instalment.

This cash is in relation to the goal set out in the NRRP for new student accommodation for 7500 people.

Payments are made by the EU on the condition that the agreed targets have been met.

The post-COVID NRRP seeks to make the Italian economy greener and more modern, via projects funded with the help of around €191 billion in EU grants and low-interest loans.

To date Italy has received nearly €67 billion in funding.

The plan has been at the centre of political tension linked to fears it will not be possible to complete all the projects and meet all the targets by the final deadline of 2026.

ANSA