Italy's Draghi seeks €220bn economic overhaul

Italian Prime Minister Mario Draghi is set to lay out a plan to spend as much as €220 billion of the European Union's money in an attempt to let it bounce back from the pandemic and come out stronger as it faces its worst recessions since the second world war.

The plan offers a six-point spending strategy covering as many as 16 categories of spending, including significant investments in high-speed rail and green energy, according to a draft of a document.

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Draghi, who came into the role of Prime Minister in February, was specifically tasked by President Sergio Mattarella to help Italy claw itself back from the effects of the pandemic.

The 200-page plan - set to be revealed within the next few days - is set to draw on the EU's pandemic recovery fund.

Italy and Spain are set to be the two largest economies to benefit from the programme. Draghi's recovery scheme is set to be approved in Parliament by the end of this week, which will see €30 billion in Italian budgetary resources and €191.5 billion allocated from the Next Generation EU scheme.

The Prime Minister claims this blueprint is the best chance Italy has for economic recovery, following on from decades of stagnation.

The plan has a deadline of April 30, but it is likely to be revealed before then in order to ensure the EU's fund is ready for allocation by June.

The six areas targeted as part of the recovery involve Italy's digital transformation of its economy, climate investment, infrastructure, education and healthcare as well as schemes to boost gender inclusiveness and social inclusion.

Part of this, Bloomberg reports, involves the digitalisation of public administration services as well as an overhaul of the legal system in order to speed up cases and modernise the court system.

Nearly €70 billion of the fund will go to ensuring a green transition from the pandemic, ensuring commitment to the circular economy, energy efficiency and safeguarding precious resources such as land and water from pollution.

A further €28 billion will go into overhauling railway infrastructure, including high-speed rail, which is an important part of transport within the nation.

Draghi's plan will also look to modernise the country's healthcare system, including an emphasis on telemedical care and improving health services at the local level.

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Member state schemes under the Next Generation EU fund must submit their plans by the deadline at the end of April, with a goal of winning approval from the European Commission.

The bloc will then look to set out borrowing up to €750 billion, distributed in the form of grants and loans to EU nations.

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