EU Says Italy Is on Track to Meet Targets for Recovery Fund
(Bloomberg) -- The government of Prime Minister Giorgia Meloni is fulfilling the obligations needed to unlock aid from the European Unionâs recovery fund as the administration seeks to boost Italyâs anemic economy, according to the blocâs executive arm.
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âItaly is well on track in the implementationâ of the fund, European Commission President Ursula von der Leyen, said at a press conference with Meloni in the city of Forli on Wednesday. âThe commission has disposed the fourth payment at the end of Decemberâ which means half of the funds have been disbursed âand I think this is great news,â von der Leyen added.
The fourth payment worth âŹ16.5 billion ($17.9 billion) brings the amount received in both grants and loans to âŹ102 billion or more than half of the total âŹ194 billion allotted.
Meloni needs the funds to strengthen the economy. EU Commissioner Paolo Gentiloni has said that investments linked to the fund will add 0.5 percentage points to Italyâs growth every year.
With debt stuck at a whopping 140% of output, Meloni is counting on a recovery to finance promises to voters including tax cuts and aid to lower-income families, while attempting to bring down the deficit in line with EU rules.
Speaking from Forli which suffered damage from heavy flooding last year and will receive funds to help with reconstruction, Meloni pointed out that despite some initial difficulties Italy managed to present a revised spending plan for the EU cash and is now fulfilling its goals.
--With assistance from Katharina Rosskopf.
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