EU Commission Allocates First $29.2Bln From Post-Pandemic Recovery Fund to Italy

MOSCOW (Pakistan Point News / Sputnik - 13th August, 2021) The European Commission paid out the first 24.9 billion Euros ($29.2 billion) to Italy on Friday from the EU-wide fund allocated to support member states during the coronavirus crisis.

"The European Commission has today disbursed ��24.9 billion to Italy in pre-financing, equivalent to 13% of the country's grant and loan allocation under the Recovery and Resilience Facility (RRF). Italy is one of the first countries receiving a pre-financing payment under the RRF," the Commission said in a statement.

The Recovery and Resilience Facility (RRF) was established to provide up to 723.8 billion euros to support reforms and projects in EU member states post-pandemic. Before allocating the funds, the Commission reviews recovery plans presented by member states based on country-specific recommendations and assesses whether they dedicate at least 37% of expenditure to climate objectives and 20% to the digital transition.

Out of the $29.2 billion (13% of total $225.2 billion ) disbursed to Italy or 13% of, $37.7 billion is pegged for integrating more regions into the high-speed rail network, $30.5billion to reinforce economic and social resilience, and $15.7 to promote the uptake of digital technologies.

"Today's disbursement follows the recent successful implementation of the first borrowing operations under NextGenerationEU. By the end of the year, the Commission intends to raise up to a total of ��80 billion in long-term funding, to be complemented by short-term EU-Bills, to fund the first planned disbursements to Member States under NextGenerationEU," the statement reads.

European leaders agreed upon the RRF in July 2020 as part of NextGenerationEU, a temporary recovery instrument designed to mobilize investments and jump-start Europe's economy, battered by the COVID-19 pandemic.