Recovery Fund, here is the government’s plan: objective of doubling GDP growth, less taxes on the middle classes and families

5 ‘reading

It consists of 38 pages and 32 slides the proposal of the guidelines for the definition of the Italian Recovery and Resilience Plan to access the funds provided by the Recovery Fund that Prime Minister Giuseppe Conte sent on the night of September 15 to the Presidents of House and Senate. The document is divided into five sections. In one he defines the Italian economic and social context and the government’s recovery plan, based on nine “lines of action.” It then lists the goals and challenges for Italy and focuses on the project selection criteria. Finally, the policies and reforms to support the plan, from the Public Administration to the investigation to the Fiscal, Justice and Labor. Finally, available resources and budget policy.

Recovery plan: 6 missions in guidelines, from equity to green
The Italian PNRR foresees six missions in the guidelines that the government has sent to Parliament. The missions, the document points out, represent structural thematic areas of intervention and are: Digitization, innovation and competitiveness of the productive system; Green revolution and ecological transition; Mobility infrastructure; Education, training, research and culture; Social, gender and territorial equity; Health.

The goal is to double GDP growth and more work
Among the main “quantitative objectives” that the government intends to achieve with the proposals of the EU Next Generation plan are: doubling the growth rate of the Italian economy, taking it from the average of + 0.8% of the last decade at a level in line with the European average of 1.6%; increase investments to 3% of GDP, achieve an increase in the employment rate of 10 percentage points, from the current 63% in Italy to 73.2% of the current EU average; bring spending on research and development to 2.1% compared to 1.3% today.

“Ok projects based on the impact and costs of GDP”
The NRP guidelines that the government sent to Parliament also establish “strict criteria” for eligibility for the Recovery Fund resources for the projects to be financed, which must be “fully consistent” with the strategic and macro-sectoral objectives of the NRP; “Significant positive impact” on potential GDP and employment growth; “quantifiable, justified and reasonable” economic, environmental and social costs and impacts; “Clarification of coherence links with reforms and support policies”; indication of the time and methods of implementation, with intermediate and final goals; “Clear identification” of the executing agency. Finally “if they integrate existing projects – read the document – they must strengthen them in a credible way”.

Less taxes on middle classes and families
One of the points of the guidelines indicated in the chapter ” Taxation ” foresees’ a comprehensive reform of direct and indirect taxation, aimed at designing a fair, simple and transparent tax for citizens, which in particular reduces the tax burden on middle classes and families with children and accelerate the transition of the economic system towards greater environmental sustainability ”. Shifting the burden “from people to things” and a “reduction of the tax burden along with a growth-friendly tax system” is also envisaged. “The government – it is explained – has also decided to deactivate all increases in VAT and special taxes provided for by the safeguard clauses.”