Italy's public investments: The NRRP and Beyond

This chapter provides the country report on Italy with an analysis of the role the Italian National Recovery and Resilience Plan in boosting public investment up to and beyond 2026. Italy's NRRP has 235 billion euros available for investments and reforms, making it one of the most remarkable modernization initiatives in the last seventy years. The impact of the NRRP is assessed and specific implementation challenges are highlighted, some of which have been caused by factors such as fragmented governance, a lack of effective monitoring, and compliance issues. Overcoming these difficulties is crucial for continuing to receive disbursements from the European Commission. The effectiveness of its governance is examined. An open question is how to ensure a positive capital-spending trajectory in Italy (especially after 2026) in compliance with the new rules set out in the Stability and Growth Pact.