Why Next Generation Eu will make Europe (and Italy) green
The Next Generation Eu guidelines concern in particular an aspect on which Italy can play an important role: the environmental transition. The speech of Gregorio De Felice, chief economist of Intesa Sanpaolo
(Extract from the speech by Gregorio De Felice, chief economist of Intesa Sanpaolo, at the webinar organized by the Grande Milano study center entitled "Countering the economic crisis and preparing the recovery with Europe")
Italy has largely benefited from the European initiatives: without the ECB's purchasing program and the expectations of recovery and revitalization of the economy fueled by the Next Generation Eu program, the perception about the sustainability of the Italian public debt would have strongly deteriorated in the presence of the current recession.
The Next Gen Eu program is outlined in a particularly positive way for Italy. The non-repayable subsidy component is destined to increase the robustness of our economy, to increase productivity and growth potential through a comprehensive reform plan.
Next Gen Eu allocates about 28% of the total resources to Italy, against a weight of the Italian economy in the EU of 13%.
These funds must serve on the one hand to relaunch investments and on the other to make up for the delays in the Italian economy.
Let's not forget that in 2019 – before the pandemic crisis – Italy still had a growth gap of 2.9% compared to 2008, while Germany exceeded it by 14.1%, France by 11.4% and Spain itself, which, like us, had suffered the 6.7% sovereign debt crisis.
The Next Generation guidelines concern in particular an aspect on which Italy can play an important role: the environmental transition.
In the United States, Biden's victory will imply a strong commitment by the American administration in the fight against climate change.
China's 14th five-year plan, approved at the end of October 2020, has aggressive targets in terms of reducing emissions.
In the next few years we will have a growing demand for “green” products and services (in the agro-food, bio-economy, green building, clothing, auto components and mechanics).
Italy has the least polluting manufacturing industry in Europe together with Germany and a rich endowment of patents for environmental sustainability.
The national recovery and resilience plan ( Pnrr ) may involve large private capital, which is already available as shown by the strong increase in bank deposits (increased by 128 billion in the twelve months ending in November).
In the acronym Pnrr, in addition to “recovery” and “resilience” a third R is implicit, that of the “reforms” necessary to increase the productivity of some sectors (public administration, school system, judicial system).
Italy has a historic opportunity to seize that can strengthen economic recovery, accelerate growth potential, allow for more equitable and inclusive development.
(Extract from the speech by Gregorio De Felice , chief economist of Intesa Sanpaolo, at the webinar organized by the Grande Milano study center entitled "Countering the economic crisis and preparing the recovery with Europe")
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/economia/perche-next-generation-eu-rendera-verde-leuropa-e-litalia/ on Sat, 16 Jan 2021 10:15:30 +0000.