Home Economy Friction between Rome and Brussels over European funds

Friction between Rome and Brussels over European funds

0
Friction between Rome and Brussels over European funds

Her last battle Italy With Brussels for her questions European funding is a step in the wrong direction for the largest recipient of subsidies and loans between EU countries. However, this situation could nudge the 27-country coalition in the right direction in terms of aid spending. Three years after the coronavirus pandemic European Union may consider a more flexible approach to the changing financial needs of its members. In particular, the Prime Minister of Italy Georgia Meloni aims to get 19 billion euros from European funds to fight the pandemic. The funds, which were requested by the country last December, are tied to 55 conditions and reform commitments that Rome is close to fulfilling, Brussels points out.

Three key points of contention between the Italian government and European Commission port concessions, a dispute over the use of natural gas for heating and renewable energy sources, as well as for sports stadiums in Venice and Florence. After an initial extension failed to resolve disputes, the Commission gave Italy another month to prove it was abiding by the rules and was only spending funds on eligible projects. And Georgia Meloni, and Commission decide that their negotiations are moving forward.

Optimal results require a more flexible approach.

However, there is room for improvement on all sides. Meloni must demonstrate that her government can meet pre-existing bailout obligations. His government cannot simply break promises or watch helplessly if local authorities discredit the national oversight mechanism. In addition, Rome wants to get a seat in the EU’s most important negotiating banks. and such trust comes only from keeping promises. Italy’s history of releasing and exploiting European Union funds is one of anomalous situations.

However, for its part, Brussels could get more out of its allocation of funds. Economic conditions have changed a lot since the 800 billion euro pandemic recovery plan was launched in 2020. Goals that made sense then may not be considered a priority today, other than to appease hardliners like Germany, who see any setback as a sign. moral failure.

It may be politically expedient for political actors to stick to their original plans to claim that “ephemeral aid vehicles” will not become permanent through behind-the-scenes reprogramming. However, optimal results require a more flexible approach and continued efforts to balance real needs with political will. Italy serves as the leading testing ground. With 191.5 billion euros requested in grants and loans, it is expected to receive the most to fight the pandemic than any other member state, and 67 billion euros have already changed hands.

The current standoff is partly due to the view that Brussels does not appear to be easing its standards. According to Cincia Alcidi, a CEPS researcher, “flexibility may be needed to help short-term recovery funding meet the long-term needs of the Italian economy.” But whatever the Commission does for Italy, he said, “it will clearly set a precedent for others.”

Author: REBECCA CHRISTIE / REUTERS BREAKINGVIEWS

Source: Kathimerini

LEAVE A REPLY

Please enter your comment!
Please enter your name here