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Pnrr, Corazza (European Parliament) ends up under the wheels of the Carroccio

1 year ago babelfish

Pnrr, Corazza (European Parliament) ends up under the wheels of the Carroccio

Debate between politicians and analysts after a tweet from Carlo Corazza, director of the Italy office of the European Parliament

The Pnrr is the challenge of the current political generation, and beyond. In the Recovery and Resilience Plan , financed through the funds of Next Generation EU , the mammoth European economic recovery project dedicated to the member states, expectations are placed for having a more efficient and digitized public administration, modern infrastructures and public health adequate for the changing needs of the population.

191.5 BILLION EUROS TO ITALY FROM THE PNRR

Italy has been assigned 191.5 billion euros to carry out the numerous projects of the PNRR. An enormous figure that our country, at least in part, will have to repay. On this topic, borrowing a term from rap, there was a dissing on Twitter between Carlo Corazza , director of the European Parliament office in Italy, and Claudio Borghi, economist and senator of the League.

CARLO CORAZZA'S TWEET ABOUT PNRR FUNDS

Corazza, former deputy head of cabinet when Antonio Tajani was president of the European Parliament, wrote on Twitter: “A classic example of anti-EU hoaxes concerns disinformation about the PNRR. It should be remembered that the EU has made €191.5 billion available to Italy, of which 69 billion in subsidies. EU loans cost 0.2% instead of 4%. NextGenerationEU is EU public debt guaranteed by the EU budget”.

The tweet sparked several reactions. A user asks the director Corazza to look at the figures indicated by him, which he does in a tweet in which he corrects the shot of his statements. “He's right and I apologize for the mistake. 0.2 was the initial rate of the first issue – writes Corazza -. With interest rates rising, naturally those paid by the Commission also rise. The fact remains that there is always a gap of just under 2% between what the Commission pays and what Italy pays.

THE DISSING OF CLAUDIO BORGHI WITH CORAZA ON THE FUNDS OF THE PNRR

The clarification is not enough for the Lega senator Claudio Borghi, an economist and always not very euphoric about the moves of the European buildings. Senator del Carroccio points out that the EU issues bonds at 2.8% and not at 0.2% as initially supported by Carlo Corazza.

And it increases the dose even after the partial correction. “Corazza, but it doesn't work that you say a silly thing and then correct it with another one until you get bored – replies Borghi -. In no case does the EU issue with a difference of just under 2% from Italy. This was the last issue. If the EU issues with a spread of 72 on 10y and 102 on 30y and we are at 180 on 10y and 195 on 30y, this means a difference of 1% to which commissions and fees must be added. Virtually nothing. Oh yeah, can you tell me if our debt to the EU has the characteristics of a senior debt and if so, where is it written?”.

Borghi then goes on to underline that ”The expenses of the PNRR are ALL in deficit. These are the non-repayable amounts that REDUCE the deficit because they are revenue from an accounting point of view, a pity that they will repay themselves for years and annorums with an INCREASE in the shares of the EU budget and therefore as an INCREASE in the deficit in future years".

THE IRONY OF THE HEAD OF THE "DEPARTMENT OF ECONOMY" OF THE LEAGUE ALBERTO BAGNAI

The discussion then continued on the profile of Alberto Bagnai , who became head of the "economy department" of the League. Mr Bagnai limits himself to retweeting Claudio Borghi 's explanation to a user that the funds of the PNRR did not add up to the public debt.

Bagnai, associate professor of economic policy at the Gabriele d'Annunzio University, elected to the Chamber for the League, also noted:

Analyst Giuseppe Liturri also intervened on the sidelines of the controversy to deepen the topic of EU securities and interest rates:

This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/economia/pnrr-corazza-parlamento-europeo-finisce-sotto-le-ruote-del-carroccio/ on Sat, 08 Apr 2023 07:11:39 +0000.