Italy's Slow Harvest: EU Recovery Fund Challenges

Italy, the fourth-largest economy in the Eurozone, has been grappling with the slow implementation of its National Recovery and Resilience Plan (NRRP), funded by the EU's €750 billion NextGenerationEU package. The plan, designed to bolster Italy's green and digital transitions, has faced numerous hurdles, with only 1.7% of the allocated €200 billion disbursed by 2024.

Bureaucratic hurdles, political instability, and resistance to reforms have hindered Italy's progress in unlocking the potential of these funds. Despite these challenges, Italy has managed to repurpose €8.4 billion towards REPowerEU objectives, focusing on renewable energy and energy efficiency. However, the slow pace of implementation risks delaying Italy's green transition and economic recovery.

One of the key challenges Italy faces is its ageing and low-educated workforce in the agriculture sector. The average age of Italian farmers is 53, and many struggle to access credit and keep up with technological advancements. Moreover, most farmers are engaged in low-scale subsistence farming, further hindering productivity and income growth. The Italian government has adopted policies such as doubling farmer incomes and achieving self-sufficiency in pulses, but reform is needed to address poverty and suicide among farmers.

Italy is taking significant steps to address food security and sustainability in its agriculture sector. The country has allocated €222.1 billion to its NRRP, focusing on digitization, innovation, competitiveness, culture, green transition, and social inclusion. Within this plan, Italy has allocated €49.2 billion to the 'Digitisation, Innovation, Competitiveness, Culture' mission, €68.6 billion to the 'Green Revolution and Ecological Transition' mission, and €31.4 billion to the 'Infrastructure for Sustainable Mobility' mission, all of which contribute to enhancing food security and sustainability.

The Green Revolution and Ecological Transition mission aims to improve the sustainability and resilience of the economic system and ensure a fair and inclusive environmental transition. Key actions include enhancing waste recycling, reducing drinking water leakage, and supporting research on the use of hydrogen in industry and transport. Additionally, the mission allocates resources for an additional 50,000 more efficient private and public buildings, totaling 20 million square meters.

The Infrastructure for Sustainable Mobility mission focuses on developing a modern, sustainable transport infrastructure extended to all areas of the country. This includes updating and enhancing regional railway networks, reducing travel times on railway lines, and investing in green ports. These investments aim to facilitate the movement of goods and people, contributing to agricultural productivity and food security.



Italy's efforts to address food security and sustainability in the agriculture sector are notable, and the country is taking a comprehensive approach through its NRRP. By allocating significant resources to various missions, Italy is working to improve the sustainability of its agricultural system, enhance its competitiveness, and ensure the long-term resilience of its food production. However, the successful implementation of these plans will depend on factors such as the efficient use of resources, the involvement of regional and local authorities, and the engagement of social partners in the implementation process.

In conclusion, Italy's slow progress in implementing its National Recovery and Resilience Plan highlights the challenges faced by the country in harnessing the potential of EU recovery funds. While the country has made efforts to address food security and sustainability in the agriculture sector, the success of these plans will depend on the efficient use of resources and the engagement of regional and local authorities. As Italy continues to grapple with these challenges, it is crucial for the country to adopt a more strategic and coordinated approach to unlocking the benefits of these funds.