Brussels – The European Commission will assess and analyse the measure decided by the Italian government to reduce road tax in 2027 for cars with an engine power of up to 80 kW. It will do so in the light of the 2026 Country Report and the 2026 Country-Specific Recommendations, within the context of the forthcoming 2027 European Semester. A spokesperson for the European Commission clarified today (18 September) the Commission’s position regarding the decision taken by the government led by Giorgia Meloni, noting that the Recovery Facility – and therefore the resources of the National Recovery and Resilience Plan (NRRP) – is “results-based.” In other words, payments to Member States are made on the basis of the results achieved.
Meanwhile, from Dublin, on the sidelines of the Eurogroup and Ecofin meetings, the Italian Minister for the Economy, Giancarlo Giorgetti, has addressed the issue of the funds required to cover the abolition of road tax for small and medium-sized cars in 2027. “Part of these 2.3 billion is precisely the unused NRRP funding, which could not be reallocated because, as is well known, the deadline for reallocating it has passed,” he said.
Approved last Wednesday at the Council of Ministers’ meeting and published today in the Official Gazette, the new measure introduced by Giorgia Meloni’s government provides for the suspension, for the coming year, of the road tax on cars with an engine power of up to 80 kW (kilowatts) and motorcycles. A cut in excise duty on diesel has also been introduced, with the price being reduced by 12 cents per litre until 25 September. The crux of the matter is this: where will the money come from to fund these measures?
According to the text of the decree, the government will draw on unspent funds from the National Recovery and Resilience Plan (NRRP). These are the national recovery and resilience plans that EU Member States are required to draw up in order to receive funding from the NextGenerationEU – the temporary EU instrument worth €800 billion aimed at repairing the damage caused by the COVID-19 pandemic and creating a greener, more digital and resilient Europe. According to Giorgetti, as these funds were borrowed by Italy and have been “paid back”, they now constitute “savings” that cannot be reallocated, because the deadlines have expired. In other words, the deadline of 31 August 2026 – which marked the final and non-negotiable deadline for the completion of all milestones and the submission of the relevant documentation – has passed. According to the rules of the Recovery and Resilience Facility (RRF) – the financial fund providing the resources to implement the NRRP – any amendments, reallocations or additions made after this date are no longer taken into consideration or assessed by Brussels. For this reason, the Minister regards the funds as “national money” and no longer as “European resources”, arguing that the Italian government and Parliament may dispose of them “as they see fit.” However, Member States have until 30 September 2026 to submit payment requests for the final instalment, which the Commission will finalise by 31 December 2026.
The Berlaymont Building, therefore, “takes note of the new measure adopted by the Italian Council of Ministers on 16 September” and states that “the Commission’s services will assess this measure in the light of the 2026 National Report and the 2026 country-specific recommendations, within the context of the forthcoming 2027 European Semester,” explained a Commission spokesperson. These represent the economic, fiscal, employment, and structural policy guidelines that the Council of the European Union addresses to each Member State as part of the European Semester – the framework for the coordination of economic, budgetary, employment and social policies within the European Union. “As regards the unused RRF resources,” he added, “it is important to remember that this is a results-based instrument, under which payments to Member States are made on the basis of the results achieved.” This means that the Commission disburses funds to each country only once they have met the agreed milestones and targets for the completion of the reforms and investments set out in their plan. Once Member States have met the agreed milestones and targets, governments submit payment requests, up to a maximum of twice a year.
English version by the Translation Service of Withub
