Replan EU
REPLAN EU 2023 Conference "Due anni di PNRR: tempo di un primo bilancio"
Conference sponsored by the Jean Monnet REPLAN-EU Module where we will reflect, two years after the presentation of the Italian recovery plan to the Commission and six months after the new government took office, on the state of implementation of the plan. Locandina
The conference took place at the University of Florence on April 21, 2023, from 10 a.m. to 5:30 p.m.
VIDEOS OF THE EVENT:
Morning panel - First part
Morning panel - Second part
Afternoon panel
PRESENTATIONS OF KEYNOTE SPEAKERS:
Lupo "Il PNRR, la sua attuazione e la sua modifica: verso un nuovo «metodo di governo»"
Gottardo "Attuazione del PNRR e divari territoriali"
REPORT OF THE CONFERENCE:
Written by Paola Maria Ladisa and Giulia Biagianti (RISE Master's students)
Introduction
On January 9, 2023 Ursula Von der Layen tweeted “Un piacere incontrare Giorgia Meloni a Roma oggi”. The headline topic on the agenda of the meeting was the rollout of the Italian National Recovery and Resilience Plan (NRRP). Two years after the submission of the Plan, European and Italian polity, as well as media and citizens, grew expectations of the implementation of the NRRP. At present, pivotal questions emerge: what is the current implementation status at the European, national, and regional levels? Are there any remaining adjustments? Does the PNRR (from now on we'll use the Italian acronym PNRR, Piano Nazionale di Ripresa e Resilienza) address crucial matters such as digital transition and regional disparities? These inquiries were examined during the conference “Due anni di PNRR Tempo di un primo bilancio” hosted by the University of Florence Department of Political and Social Sciences. The conference, organized by Professor Enrico Borghetto and supported by the Jean Monnet REPLAN-EU module, was held at the University of Florence on April 21, 2023. The day featured two-panel discussions where esteemed guests tackled significant issues to conduct a first review of the PNRR developments in Italy. This article will provide a comprehensive summary of the key issues discussed, the conclusions drawn, and the aspirations for the future. Posing relevant inquiries and engaging in discussions regarding the PNRR holds immense significance, as the Plan offers a remarkable opportunity for the country's continued advancement and Europe as a whole.
Source: Twitter
When we refer to PNRR, what precisely do we mean?
Il “Piano Nazionale di Ripresa e Resilienza” (PNRR) is a reform and investment plan drawn up in compliance with EU Regulation 2021/241. The regulation established the NextgenerationEU policy framework and the financial instrument of the Recovery and Resilience Facility as a response to the economic crisis caused by the Coronavirus pandemic. However, the PNRR is not only the response to the emergency but the outcome of a series of debates on how best to coordinate fiscal policies within the European Union, where the coordination model based on the European Semester had not produced the desired results. The Plan, which partly incorporates the reforms suggested in the “country-specific recommendation”, consists of 132 investments and 58 reforms, supported by €68.9 billion in grants and €122.6 billion in loans. As the EU Regulation foresees, all reforms and investments must be completed by August 2026.
Considering the contingent planning of heterogeneous structural reforms in several key sectors for our country's economic and social development, the Plan differs from most past and present national reform measures in quantitative and qualitative terms. Unlike conventional structural funds, the PNRR operates on a performance-based framework. Indeed, it provides access to resources in the logic of investments rather than transfers, and the EU requests that the effective achievement of targets and milestones within a tight time frame accompany these resources.
For our country, it is crucial to take up this new European challenge. Moreover, the success of Italy would convey an important signal at a supranational level: considering Italy is one of the main beneficiaries of the Recovery and Resilience Facility, it could lead to a change of direction in the European approach to the economic policy.
Source: Professor Nicola Lupo’s presentation at the seminar “Due anni di PNRR Tempo di un primo bilancio”
Implementation and amendment of PNRR: toward a new method of governance
The most effective way to start talking about PNRR is with those who worked on the Plan first-hand, such as Professor Nicola Lupo, who In September 2021 was appointed by the Italian Prime Minister, Mario Draghi, as coordinator of the PNRR Unit for Rationalization and Improvement of Regulation. He highlighted some interesting research perspectives of PNRR, presenting it as a Euro-national process capable of influencing the current method of governance, owing to its predetermined nature at the supranational level.
EU Regulation 2021/241 determines, in fact, milestones and targets of each national Plan. For instance, according to Art. 16 of Regulation 2021/241, 37% of the resources must be allocated to contributions to the ecological transition and 20% to the digital one. The room for free determination of Member States is thus limited. In this regard, identifying the country’s policy priorities is independent of the configuration of the government majority. Consequently, as Professor Lupo emphasized, the definition and the subsequent implementation of the PNRR prioritizes the technical component over the political one, which is inherent in every government.
This new equilibrium between national and supranational levels of government requires, on the one hand, an evolutionary interpretation of the legal bases of the European Union - in particular Articles 122 and 175 of TFEU - to strengthen the principle of solidarity, on the other hand, a constant dialogue at all institutional levels.
At this point, it is, therefore, natural to ask to what extent this instrument influences the activities of the political and administrative bodies. Indeed, the presentation outlined the constraining nature arising out of the PNRR by analyzing the procedural dimension of the Plan. This constraint does not derive exclusively from the Italian legislation implementing the Plan but also from EU law. It is to be found in the potential failure to comply with milestones and targets and in the procedures to modify the Plan. Although there are no legal obstacles to future amendments of the PNRR, as stated by Art. 21 of Regulation 2021/241, such changes are likely to be challenging. Indeed, they must be determined by objective circumstances and submitted for further vote by the Commission and approval by the Council.
At the national level, the governance of the Plan and its influence on the relations between the Government and the Parliament introduce another element of novelty. The cabinet, the President of the Council of Ministers, and the Interdepartmental Committee on EU Policy (CIAE) played a central role in the national process of designing the contents of the PNRR. The emergency, in fact, necessitated swift drafting, which contributed to marginalizing the regulatory role of the Parliament. Given the potential to profoundly alter our country's economic and social structure stably, the Plan would have required longer maturing times and more effective involvement of Parliament. Nevertheless, new avenues have opened to Parliament, which has exercised a dual role of direction and control.
Finally, Professor Lupo highlighted how the governance structure defined for the PNRR has strengthened national coordination structures, bringing the method of national governance closer to that of Europe, which traditionally and in practice are more inclined to prefer the technical component to the political one.
Source: Professor Nicola Lupo’s presentation at the seminar “Due anni di PNRR Tempo di un primo bilancio”
Round table discussions: PNRR implementation, where are we?
Source: Euractive on Facebook
Prominent speakers took part in the second panel of discussions. Adelaide Mozzi, the Head of the Economic Affairs Team at the European Commission Representation in Italy, provided valuable insights on the implementation of PNRR from an EU standpoint. Giorgio Centurelli, the Director General at the PNRR mission unit of the Ministry of the Environment and Energy Security, addressed the challenges faced at the national level during this implementation phase. Lastly, Simone Gheri, the Director of the National Association of Italian Municipalities (ANCI) Tuscany, dealt with the challenges facing Italian local powers.
The PNRR demands a composite governance effort wherein all actors involved are interdependent. The central governance serves as the intermediary between private and local authorities, while the European Commission establishes the overarching rules. The intermediate bodies, representing individual investors, are responsible for managing resources and coordinating with the territory. Both actors are equally significant and cannot be overlooked. The Ministry and Support Units cooperate effectively by constructing specialized teams, establishing direct communication channels, and fostering an investment community.
Two years after the presentation of the Plan, several challenges arose for the government, regions, and local administrations. The experts have identified four challenges for Italian governance and a broader European governance challenge.
The first challenge concerns the concrete implementation of the reform. In this phase, implementing decrees and a set of secondary legislation had to be implemented. The precise definition, transfer, adaptation, and control of this set of legislation pose a critical challenge in the current implementation stage. The tight timeframe poses an additional challenge as the deadline (2026) approaches and is closer than one can imagine.
The second challenge pertains to the administrative capacity. At this stage, the implementing bodies have submitted their projects and calls for proposals. Now it is necessary to ensure that these bodies possess the expertise to execute these projects and address the issue of reduced staffing. Municipalities must expedite and innovate, particularly by attracting highly skilled young professionals who may currently see little incentive to work in public and municipal administration. The PNRR is an instrument designed to reduce social and territorial disparities, and it is crucial to ensure that administrative incapacity does not hinder the achievement of these objectives. Assistance and incentives are provided in this regard, such as implementing a 40% quota for the southern regions and reopening calls to support and encourage progress. The experts have also drawn attention to the challenges faced by individuals, and private companies, particularly in small municipalities, which are burdened by rising costs and labor shortages.
The third long-term challenge is maintaining a healthy spirit of cooperation and enthusiasm at the European and national levels.
This is closely tied to the fourth challenge: improve communication. National, regional, and local institutions need to communicate the achievements made through this instrument to citizens.
Furthermore, the speakers also discussed the challenges faced by European governance. The Next Generation EU tool and the PNRR may have specific features. Still, this experience has the potential to transform the mentality and logic of collaboration between the European Commission and national administrations toward achieving tangible objectives. The PNRR provides an opportunity to catalyze transformational change processes at the European and public administration levels, oriented towards performance-based programs. Should the PNRR and Next Generation EU prove successful, this could lay the groundwork for creating the European Union's first federal fiscal capacity and managing the New Cohesion Policy 2021-2027.