Italy approves post-Covid economic recovery plan

Italy's parliament overwhelmingly approved the government's huge European Union-funded pandemic recovery plan Tuesday, just days before the deadline to submit it to Brussels.

Italy approves post-Covid economic recovery plan
Italian Prime Minister Mario Draghi arranges his papers at the end of his speeches in the Italian Parliament on April 26th. Photo: Alberto Pizzoli/AFP

Prime Minister Mario Draghi unveiled the 222.1-billion-euro ($268.3-billion) programme on Monday, saying it would address both the damage wrought by Covid-19 and Italy’s long-standing structural issues.

READ ALSO: Fast trains and extended building bonus: How Italy’s EU recovery plan could affect you

Lawmakers in the Chamber of Deputies voted by 442 to 19 to support the plan, with 51 abstentions.

The upper house Senate followed suit, giving approval late on Tuesday the evening, with 224 members voting for the plan and 16 against, with 21 abstaining.

Some opposition lawmakers complained about the lack of time to study the details in the programme’s more than 300 pages, which Draghi said would decide Italy’s destiny and its credibility on the world stage.

“We will be responsible for the success or failure” of this decision, he told the Senate.

“A failure would be serious for us and for the future of Europe. There will not be another opportunity for a common fiscal policy,” he said, adding that such a policy was “in our interest as one of the most fragile countries in the EU”.

Draghi, who has been prime minister since February, emphasised the importance of meeting the EU’s deadline to submit the plan.

“We felt it was very important to approve the plan by April 30th, because this allows us to have access to European funds as soon as possible,” he said.

The Italian Parliament at Montecitorio Palace in Rome as Draghi presented his plans on April 26th. Photo by Alberto PIZZOLI/AFP

Italy was the first European country to be hit by the pandemic in early 2020 and remains one of the worst affected, with the EU’s highest reported death toll and one of the deepest recessions.

The country is pinning its hopes on a 222-billion-euro investment and reform plan funded largely by the European Union.

Italy, with the eurozone’s third-largest economy, is set to be the biggest recipient of the bloc’s 750-billion-euro post-pandemic recovery fund.

Draghi told lawmakers on Monday that his plan would help “repair the economic and social damage” caused by the pandemic.

More than 119,000 people with coronavirus have died in Italy, while the economy contracted by 8.9 percent last year and a million jobs have been lost.

But Draghi said the plan also “addresses some weaknesses that have plagued our economy and our society for decades”.

The government said the plan represents a significant investment in both young people and women, particularly hard hit by unemployment. Businesses will have financial incentives to recruit people from both categories.

The five-year plan has six main elements, said a government spokesman.

Nearly 50 billion euros will go towards a push to get Italy’s internet network up to speed. 

Italy ranked fourth from the bottom in the European Commission’s latest index of digital competitiveness (DESI).

The building superbonus, which provides state aid to renovate old and energy-inefficient housing in Italy, is also pegged to get a wedge of the recovery fund.

Nearly 68 billion euros will go towards a “green revolution and ecological transition”.

Projects include plans to increase recycling and to relaunch local public road and rail transport using less polluting vehicles. 


The government also wants to invest in renewable energy and explore hydrogen power.

Italy will put 31.4 billion euros towards modernising the country’s transport infrastructure, prioritising regional rail services and high-speed trains.

It will spend 31.9 billion euros on education on research, and more places for young children in creches and nursery schools.

Small businesses across Italy have been hit hard by shudowns due to Covid-19 since March 2020. Photo by Alberto Pizzoli/AFP

And as part of its social inclusion initiative it will invest 22.4 billion euros in helping people get into the workplace, investing in women’s businesses for example.

There will be 18.5 billion euros set aside for work to reinforce preventive health work and the computerisation of the healthcare system.

At the same time, the government has vowed to modernise the country’s public administration system, getting younger people in and improving training.

READ ALSO: Beat the queues: 19 bits of Italian bureaucracy you can do online

Reforms will also try to speed up the court system and cut red tape in the country’s administrative procedures.

The plan will go before both chambers of parliament this week for approval, starting Monday.

The European Commission set a deadline of April 30th for receiving each government’s final plan for using their share of the recovery pot.

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Covid-19: Are Italian live events at risk of being postponed?

As the infection rate rises sharply across the country, Italian virologists are calling for concerts and festivals to be rescheduled.

Covid-19: Are Italian live events at risk of being postponed?

Italy has seen a large increase in the number of Covid-19 cases in recent days, so much so that a number of virologists across the country are now urging the government to postpone major live events in a bid to curb infections. 

According to a new report by Italy’s independent health watchdog, the Gimbe Foundation, 595,349 new cases were recorded in the week from June 29th to July 5th; a worrying 55 percent increase on the previous week. 

In the same time span, the country also registered a 32.8 percent rise in the number of hospitalised patients, which went from 6,035 to 8,003.  

The latest Covid wave, which is being driven by the highly contagious Omicron 5 variant, is a “real cause for concern”, especially in terms of a “potential patient overload”, said Nino Cartabellotta, president of the Gimbe Foundation. 

As Italian cities prepare to host a packed calendar of concerts and festivals this summer, health experts are questioning whether such events should actually take place given the high risk of transmission associated with mass gatherings.

READ ALSO: What tourists in Italy need to know if they get Covid-19

“Rescheduling these types of events would be the best thing to do right now,” said Massimo Ciccozzi, Director of Epidemiology at Campus Bio-Medico University of Rome. 

The summer wave is expected to peak in mid-July but, Ciccozzi warns, the upcoming live events might “delay [the peak] until the end of July or even beyond” and extend the infection curve.

Antonello Maruotti, Professor of Statistics at LUMSA University of Rome, recently shared Ciccozzi’s concerns, saying that live events as big as Maneskin’s scheduled Rome concert are “definitely not a good idea”. 

The Italian rock band are slated to perform at the Circus Maximus on Saturday, July 9th but the expected turnout – over 70,000 fans are set to attend the event – has raised objections from an array of Italian doctors, with some warning that the concert might cause as many as 20,000 new cases.

If it were to materialise, the prospected scenario would significantly aggravate Lazio’s present medical predicament as there are currently over 186,000 Covid cases in the region (nearly 800 patients are receiving treatment in local hospitals). 

Italian rock band Maneskin performing in Turin

Italian rock band Maneskin are expected to perform at the Circus Maximus in Rome on Saturday, July 9th. Photo by Marco BERTORELLO / AFP

But, despite pleas to postpone the event, it is likely that Maneskin’s concert will take place as scheduled.

Alessandro Onorato, Rome’s Tourism Councillor, said that rescheduling is “out of question” and that “all recommendations from the local medical authorities will be adopted” with the help of the event’s organisers and staff on the ground.

At the time of writing, there is also no indication that the Italian government will consider postponing other major live events scheduled to take place in the coming weeks, though the situation is evolving rapidly and a U-turn on previous dispositions can’t be ruled out.

READ ALSO: At a glance: What are the Covid-19 rules in Italy now?

On this note, it is worth mentioning that Italy has now scrapped all of its former Covid measures except the requirement to wear FFP2 face masks on public transport (though not on planes) and in healthcare settings.

The use of face coverings is, however, still recommended in all crowded areas, including outdoors – exactly the point that leading Italian doctors are stressing in the hope that live events will not lead to large-scale infection.

Antonio Magi, President of Rome’s OMCEO (College of Doctors, Surgeons and Dentists), said: “Our advice is to wear FFP2 masks […] in high-risk situations.”

“I hope that young people will heed our recommendations and think about the health risks that their parents or grandparents might be exposed to after the event [they attend].”