Italy, NRRP fraud scheme worth 600 million: 22 arrests in maxi-investigation by European Public Prosecution Office

Brussels -A €600 million fraud to the detriment of the European Union for misappropriation of resources from the Recovery and Resilience Facility, intended for Italy’s National Resilience and Recovery Plan (NRRP). The European Prosecutor’s Office (EPPO) revealed a criminal organization at the end of an international investigation that led to 22 arrests in Italy, Austria, Slovakia, and Romania. Eight suspects are in pre-trial detention, whereas 14 suspects are under house arrest, and one accountant was prohibited from practicing his profession, the European Public Prosecution Office said.

European prosecutors put on its radar a criminal association suspected of running a fraud scheme between 2021 and 2023 to obtain funds from the Italian NRRP, diverting European funds. A network of accountants, service providers, and public notaries are alleged to have helped the suspects successfully obtain €600 million in non-refundable funds. The blitz, on the one hand, demonstrated the efficiency of police forces and controls in Italy and at an international level, and, on the other, emphasized the challenges the recovery plan poses for the country and its government, which is called upon to spend everything on time, namely 194.4 billion euros by 2026.

Italy is the biggest beneficiary of the NextGenerationEU post-pandemic recovery program that includes the Recovery Fund the resources of which EPPO today seeks to defend. The attention of ill-intentioned people on the fund was obvious, considering the money at stake. That Italy was in the spotlight of justice authorities was made clear when the report on the investigations into the use of Recovery Fund funds was published, with Italy first in terms of investigations opened. Actually, judging from the searches and arrests. A problem that is in addition to those already found in Brussels.

The European Parliament Think Tank has taken stock of the situation in a study on the NRRP implementation in Italy, and critical issues have emerged. By the end of 2023, it appears that Italy had spent €43 billion, or 22 percent of the EU resources available for its National Recovery Plan, “which suggests the importance of the period through to August 2026 for full implementation, not least of its investment measures.” Italy appears behind schedule, and the Meloni government needs to speed up.
Yes, the executive branch itself. Analysts see central power as the key to successful reform and investment in the absence of a local government that is not considered up to the job. “Against the backdrop of a public administration still perceived as less effective than in most OECD countries, the implementation of related projects was considered behind schedule,” the study warns. “Putting a stronger focus on large and centrally managed projects, the 2023 revision of the NRRP is expected to increase the likelihood of full implementation,” according to the study’s authors.

English version by the Translation Service of Withub