The government has shifted around 16 billion euros worth of EU grants and low-interest loans from some projects that risked not being completed by the deadline of 2026 and diverted them to others, to avoid the danger of Italy losing out on the money completely.
European Affairs Minister Raffaelle Fitto has said the projects that have had PNNR cash taken away will be funded via other mechanisms, such as European cohesion funds.
But there is uncertainty about how this will happen.
“Without funding, project worksites risk being halted,” Italy’s governors said in a document after a meeting of the conference of regions on Wednesday.
They said projects like those for urban regeneration risked being put on ice.
Bari Mayor Antonio Decaro, the head of the Italian association of local authorities (ANCI), sounded the alarm too.
“We ask the government for certainty that we will have substitute funding following the reshaping of the NRRP funds,” Decaro said.
“Otherwise, we risk having to halt the procedures for public works and new services, regeneration and redevelopment projects, interventions to protect the territory (from landslides and flooding) and combat climate change.”
The NRRP seeks to make the Italian economy greener and more modern via projects funded with the help of around 191 billion euros in EU grants and low-interest loans.
The changes the government made to it enabled the European Commission last week to approve the long-delayed third tranche of the NRRP funding worth 18.5 billion euros.
ANSA
