NRRP, the 600 million fraud at the Ecofin table

Brussels – The premise is that “abuses of this kind can happen, have always happened, and may happen again in the future,” but the 600 million euro the maxi-fraud in EU funds for Italy’s recovery plan (NRRP) will inevitably end up at the center of the Ecofin Council meeting tomorrow (April 12), well-informed sources assure. There is no intention to stir up controversy or put Economy Minister Giancarlo Giorgetti in the dock. But there will be a desire to clarify, to learn more. A sort of ‘due act’, given that we are dealing with common European resources.

Whether it is Giorgetti himself who raises the issue or some of the other ministers around the table, insiders consider it “certain that the issue will be part of the debate” among EU economic ministers. The good news is that the fraud was discovered, a sign that checks are being done and the ‘smart ones’ caught. It is a matter of taking stock of a dossier that is not insignificant, given that Italy, between guarantees (68 billion) and loans (126.4 billion), must manage 194.4 billion euros by 2026.

Speaking of this deadline, there seems to be a growing front of Member States interested in asking for more time for Recovery Fund funds, thus extending the implementation period of reforms and investments hinged in the NRPs. “It is not only Italy” feeling the pressure of tight timelines and far-reaching commitments, sources in Brussels admit. “There are other ministers in favor of extending reform projects” beyond 2026, and the issue inevitably becomes “a topic of debate.” The problem is that Recovery Fund money is tied up in the EU’s multi-year budget, so unanimity is required for any decision in the extended direction.

So the Ecofin promises to be rich in insights probably poor in real, operational decisions on these two issues bursting into the debate. What is certain is that the focus is (almost) all on Giorgetti.