Italy soon pays the EU’s first check, approving on Tuesday its stimulus plan, funded by unprecedented public debt, which is said to be floating an economy devastated by the corona virus epidemic.
“This is a day to add pride to our country,” underlined President Mario Draghi from the famous Cincinnati movie studios in Rome, who addressed the press with Commission Chairman Ursula van der Leyen.
The recovery plan is “an opportunity for a generation to invest in Italy’s strength and turn Italy into a development engine in Europe. You have the full support of the European Commission, “she told the Associated Press.
As the first beneficiary of the மீ 191.5 billion European recovery program in loans and grants, Italy has no right to make mistakes, especially the so-called “cheap” countries that have expressed skepticism about the use of funds.
“We all have a responsibility to European citizens who pay taxes to fund our national program. We have a responsibility to do better, before implementing the reforms” at maximum speed, “he said.
To satisfy the revolt of the states led by the Netherlands and Austria without hesitation, Brussels provided 7 750 billion provided by the broader European common loan program in the implementation of the reforms.
– Pressure on Rome –
The pressure on Rome is enormous: “If the Italian plan fails, it will call into question the entire European policy of general European policy,” said Carlo Aldomont, a professor of economics at the University of Pocono who was interviewed by AFP.
“Cheap countries will say + we said, you can’t spend European manna well +”.
The first installment of the mega-stimulus project is expected to arrive in Italy in July or around 25 25 billion.
If Rome has shown incompetence in managing European finances in the past, Mario Draghi’s leadership of the country has changed the situation.
He appointed thirty commissioners with special powers to revive 57 infrastructure projects, immersed in the twists and turns of the glorious Italian bureaucracy and issued a series of orders to facilitate and expedite procedures.
Mario Draghi is banking on an ambitious investment plan of 2 222.1 billion over six years, focusing on digitalisation, climate change and infrastructure.
“It will be a very difficult task, but all stages of the reforms will be taken before the end of Mario Draghi’s order, which will remain in the saddle until the end of his decree in 2023,” he said. Altomont.
The former president of the European Central Bank, who is credited with saving the eurozone in the midst of the debt crisis, has entered the political arena and redistributed cards in Europe.
– “Excellent reliability” –
“Mario Draghi has indeed become Europe’s new leader,” an Angela Merkel on the trip and Emmanuel Macron, who faces an election deadline, promise Carlo Aldomonte.
Lucia Tajoli, professor of economic policy at Milan’s Polytechnic, believes that “Mario Draghi enjoys even more credibility with” hawks “across Europe, so he has more room for negotiation than others.”
But he told the AFP that “this money will have to be spent in full to recover quickly across Italy and the European Union.”
The Italian economy is showing signs of improvement and is expected to grow by almost 5% this year thanks to stimulus measures and investments.
However, Brussels usually exemplifies Italy’s “extreme economic imbalances”, especially “high debt” and “continued recession of productivity”.
Rome can not keep its economy afloat forever, warns Ignacio Visco, governor of the Bank of Italy. According to him, “the future built on public aid and grants is unimaginable.”