Recovery Plan draft, significantly increase funds for culture and education

There is a very significant increase in the resources Italy allocates to culture, as well as toeducation and health, in the new draft of the Next Generation Italy National Recovery and Resilience Plan (PNRR), or the so-called “Recovery Plan” to allocate Next Generation EU funds (the so-called “Recovery Fund”). The draft was largely revised following pressure from Italia Viva, which was not satisfied with the plan released last Dec. 7. Exactly one month later, the value of the plan also increases: it is 222 billion, compared to 196 billion in the previous draft: the government has in fact supplemented it with resources from the Development and Cohesion Fund for the South and other European funds. The fund therefore breaks down as follows: 196 billion provided by the Recovery Fund, 13 billion from ReactEu funds, and 1.2 billion from the Just Transition Fund. It comes to the sum of 222 billion thanks, precisely, to the cohesion funds for the Mezzogiorno.

The PNRR, the draft reads, “represents an extraordinary and unrepeatable opportunity to boost investment in our country. The public investments envisaged by the PNRR’s lines of intervention and projects are of fundamental importance in determining a permanent positive effect on growth, increasing public capital and also stimulating greater private investment. Compared to the stimulation of private investment, they generate a much more favorable multiplier effect on output and employment, greater than two in the best-case scenarios. For this reason, the latest revision of the draft NRP aimed to increase net resources for investment. By employing the resources of the national cohesion funds FSC 2021-2027 that have not yet been programmed, it has been possible to increase investments by more than 20 billion for new projects in important fields that include, for example, the high-speed rail network, port facilities, sustainable local transport, broadband and 5G, the integral waste cycle, and the social infrastructure of the Mezzogiorno.”

Funds for culture and education were significantly revised, as well as those for health and infrastructure. Those for culture have been almost tripled from 3.1 billion in the first draft to 8 billion in the new document, while education increases from 19.2 billion to 27.9 billion, and health doubles from 9 billion to 19.7 billion. There is also an increase for infrastructure and sustainable mobility (from 27.7 to 32) and for inclusion and cohesion (from 17.1 to 27.9), while funds for the green revolution and ecological transition drop (from 74.3 to 68.9) and those for the “Digitization, Innovation, Competitiveness and Culture” mission, of which culture is part (from 48.7 to 45.9).

As for culture, the draft NRP states that the relevant component of the plan has been “significantly strengthened,” as it aims “to increase the level of attractiveness of the country’s tourism and cultural system through the modernization of tangible and intangible infrastructure, training and strengthening of accommodation facilities through investments in strategic tourism infrastructure and services.” In the latter case, the document continues, “the creation of a fund of funds is envisaged, with an operational fund of 500 million (leveraging PNRR funds to involve European capital - EIB/InvestEU - and private individuals to increase the scope of the intervention on accommodation infrastructure and tourist services. In addition to the increase in resources earmarked for projects by municipalities for investments on identity places on their territory, and the allocation of additional resources for interventions on Rome’s artistic-cultural heritage on the occasion of the Jubilee, a Culture 4.0 project has been included with the aim of promoting the integration between schools, universities, businesses and cultural places through the interaction between creative and artisan businesses with specialized tourism, archaeological and restoration training activities. The design of the interventions will aim to enhance in particular the female, generational and territorial dimension of the cluster, designing the interventions in such a way as to allocate a significant share of resources to the regions of the South and to the areas of activity characterized by a relatively high incidence of female and youth professionalism.”

Significant strengthening also for the right to education (from 10.1 billion to 15.4, plus 1.35 billion from the ReactEu fund). “The main thrusts on combating territorial gaps,” reads the draft NRP, “consist of a strong investment in kindergartens, preschools and spring sections, strengthened to close the gap with the most advanced European countries, particularly in the South, along with interventions on schools with higher incidence of dropout and weak educational outcomes, and funding for student housing. For educational enhancement, interventions are planned for integrated digital education, STEM skills and multilingualism, with a specific focus on women’s education. A 1-billion project for the extension of full-time education in schools has been included. In parallel, more resources will be invested in infrastructure (cabling, laboratories, classrooms). Finally, it is intended to encourage greater integration between high schools and universities and the strengthening of professionalizing education aimed at the world of work, a very important reform and investment for the new generations. This is a particularly significant component not only for the generational dimension of the NRP, but also for the gender and territorial ones. It seems appropriate to this end to further develop investments and operational projects within precise lines of reform.”

Resources for the “From research to enterprise” component increase by 1.5 billion euros, from 9.1 to 10.7 billion: this component, the draft says, “looks at basic, applied research and technology transfer. It aims to strengthen the research system along the different stages of technological maturity and raise the growth potential of the economic system, acting in a systemic way on the lever of R&D investment, taking into account territorial gaps and the typicality of enterprises. A first line of intervention, significantly enhanced, is aimed at strengthening the R&D chain in the research system and in the economic system, through the strengthening of large research infrastructures, expanded partnerships for the development of research projects oriented to the strategic innovation challenges facing the country. In particular, interventions of two billion were introduced to finance the national research program fund, new PRINs, and the fund for ledilizia and research infrastructure, particularly in the Mezzogiorno. A second guideline focuses on the strengthening of technology transfer mechanisms, encouraging with public and private partnerships and investments linnovation through the systemic use of research results by the productive fabric. This includes investments in strengthening research facilities and the creation of national R&D networks on certain enabling technologies (Key Enabling Technologies), the creation of ”innovation ecosystems around territorial R&D systems. The last strand provides interventions to support innovation in SMEs through innovative and green doctorates."

Below is a breakdown of all the interventions in the new draft:

1. Digitalization, innovation, competitiveness and culture (45.9 billion)
- Digitalization, innovation and security in PA (11.3 billion)
- Digitalization, research and development and innovation in the production system (25.8 billion, plus 800 million from ReactEu)
- Tourism and culture (8 billion)

2. Green revolution and ecological transition (68.9 billion)
- Sustainable agriculture and circular economy (5.2 billion, plus ReactEu 300 million)
- Renewable energy, hydrogen and sustainable mobility (17.5 billion, plus ReactEu 680 million)
- Energy efficiency and rehabilitation of buildings (30.4 billion, plus 230 million ReactEu)
- Land and water resource protection (14.3 billion, plus ReactEu 200 million)

3. Infrastructure for sustainable mobility (32 billion)
- High-speed network and road maintenance 4.0 (28.3 billion)
- Intermodality and integrated logistics (3.7 billion)

4. Education and research (27.9 billion)
- Skills upgrading and right to study (15.4 billion, plus 1.35 billion from ReactEu)
- From research to enterprise (10.7 billion, plus 500 million from ReactEu)

5. Inclusion and cohesion (27.6 billion)
- Employment policies (6.7 billion, plus 6 million ReactEu)
- Social infrastructure, Families, Communities and the Third Sector (10.5 billion, plus 380 million ReactEu)
- Special interventions for territorial cohesion (4.2 billion)

6. Health (19.7 billion)
- Neighborhood care and telemedicine (7.5 billion, plus 400 million ReactEu)
- Health care innovation (10.5 billion, plus 1.3 billion from ReactEu)

Recovery Plan draft, significantly increase funds for culture and education

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