The Council of the European Union is set to approve a revised recovery and resilience plan for Italy, amending the 13 July 2021 decision, after Italy requested changes citing objective circumstances. The proposal, dated 7 August 2026, would amend 118 measures, remove two, and add two new ones, reflecting changed market conditions and administrative simplification efforts. The changes affect national authorities and beneficiaries of the affected measures, including businesses and public entities relying on the plan's funding.
The proposal, put forward by the Council, follows Italy's formal request for a revision, which the European Commission assessed and endorsed. The Commission rated the plan's contribution to REPowerEU objectives and the green transition as 'A' (large extent), with climate objectives representing 37% of the total allocation. The amendments are driven by a variety of factors: lack of demand for three measures, market conditions for five, technical impediments for one, inflation or technical issues for two, extreme weather events in Calabria, Sardinia, and Sicily for one, and better alternatives for nine. Additionally, 93 measures are simplified to reduce administrative burden, and two clerical errors are corrected in measures M1C2-31 and M4C1-23.
The two measures slated for removal are M3C1-11 (Diagonal connections) and M5C3-14 (Tax Credit Scheme for Southern Italy/SEZ). The freed-up funds will be redirected to two new measures and to increase the implementation levels of eight others, including Transition 4.0 and railway fleet upgrades. This reallocation aims to maintain the plan's strategic objectives while adapting to evolving circumstances.
The proposal is a formal step in the EU's recovery and resilience framework, which requires Council approval for any substantial changes to national plans. The Council's decision, once adopted, will legally bind the revised plan, allowing Italy to access the corresponding funds. The European Parliament is not directly involved in this approval process, but the Commission's positive assessment was a prerequisite for the Council's consideration.
businesses in sectors like digital connectivity and tax incentives for Southern Italy may lose planned support, while those in manufacturing and rail transport could benefit from enhanced funding. The simplification of 93 measures is expected to reduce administrative burdens for both national authorities and beneficiaries, potentially speeding up implementation. However, the removal of the tax credit scheme for Southern Italy could dampen regional investment incentives, a trade-off between administrative efficiency and targeted economic support.
The Council is expected to adopt the decision without significant debate, given the Commission's endorsement and the technical nature of the changes. The revised plan will then guide Italy's recovery spending through 2026, with the new measures and increased allocations taking effect immediately after approval.