The weaknesses of the National Recovery and Resilience Plan
DOI:
https://doi.org/10.13133/2037-3651/17736Keywords:
Italian economy, economic growth, fiscal policyAbstract
The NRRP (National Recovery and Resilience Plan) is the plan for Italian economic policy in the context of the European Next Generation EU (NGEU) and is structured in the form of investments designed to achieve the goals of growth and resilience. Of all the EU member states, Italy’s NRRP is the one receiving most funding. This article demonstrates two of its weaknesses, namely its provisional nature with respect to the restoration of the Fiscal Compact and its inadequacy from the quantitative point of view. It is also shown that the NRRP is based on the belief that the short-term increase in GDP deriving from an expansionary fiscal policy is enough to generate lasting growth and to keep the higher debt-to-GDP ratio sustainable. Instead, it is argued that a structural intervention is preferable, not conditional on liberal reforms.
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