Italian Senate to approve COVID-19 recovery package
The Italian Senate is expected to finish converting its COVID-19 National Recovery and Resilience Plan (NRRP) into law today.
Italy, which set a new daily COVID-19 case record this past week, has struggled to tackle the pandemic despite having fully vaccinated 77% of its population and enacting a strict “green pass” system. The recovery package contains legislation that would allocate financial support to sectors of the Italian economy hit by the pandemic, like tourism.
The recovery plan will likely prevent future job losses and help maintain productive capacity, boosting the country’s short-term recovery as vaccination rates increase and restrictions are lifted. The plan also promotes greener infrastructure and broadband investments, which would stimulate the competitiveness of Italian firms. Prime Minister Mario Draghi predicts a 4.7% increase of economic growth in 2022.
Many view the NRRP as a unique tool to spur job creation and improve living standards. The plan offers clearly defined targets and milestones for the disbursement of funds, which economic experts believe will help to facilitate its implementation.
Expect the government to shift focus to public spending and tax policy when the pandemic eventually subsides, as economists recommend that such reforms be enacted to complement the recovery plan.
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