Italy's 'epochal' recovery plan targets women, youth, south
Italian Premier Mario Draghi is presenting a 222.1 billion euro ($268.6 billion) coronavirus recovery plan to Parliament
April 26, 2021, 4:03 PM
5 min read
Italian Premier Minister Mario Draghi addresses the Chamber of Deputies, in Rome, Monday, April 26, 2021. Italian Premier Mario Draghi is presenting a 222.1 billion euro ($268.6 billion) coronavirus recovery plan to Parliament. The plan is aiming to not only bounce back from the pandemic but enact "epochal" reforms to address structural problems that long predated COVID-19. (Alberto Pizzoli/Pool via AP)
ROME -- Italian Premier Mario Draghi presented a 222.1 billion euro ($268.6 billion) coronavirus recovery plan to Parliament on Monday, aiming to not only help Italy bounce back from the pandemic but enact “epochal” reforms to address structural problems that long predated COVID-19.
Italy has the biggest share of the EU’s 750 billion euro ($907 billion) recovery pot, with 191.5 billion euros ($231.6 billion) of its six-year plan financed by EU funds. Draghi, the former European Central Bank chief, was put in the premier’s office specifically to make sure the money isn’t wasted since Italy has long had one of the worst records in the EU of making use of available funds.
Draghi told lawmakers Monday to not view the plan as merely a set of figures and tables, but rather as a recipe of values and priorities for a nation traumatized by the pandemic, loss of life and livelihoods and in need of a credible future for its children.
“I am certain that honesty, intelligence and the taste for the future will prevail over corruption, stupidity and special interests," he said.
The plan is heavy on investments to modernize and digitize Italy’s economy and bureaucracy and encourage environmentally sustainable development. Both are directed particularly at the all-important tourism industry — think Venice, the Colosseum and Amalfi coast — which accounts for 13% of Italy’s gross domestic product and was devastated by pandemic-related closures.
Greater employment options for women and young people are prioritized, given youth unemployment tops 30% and Italy has long ranked at the bottom of the EU in terms of the percentage of women in the workforce. Women accounted for more than half the 456,000 jobs lost in Italy last year.
Here’s a look at Italy’s plans, which were announced on the same day that most of the country began emerging from its latest coronavirus lockdown, with museums reopening and restaurants and bars open for outdoor service.
DIGITAL TRANSFORMATION AND EMPLOYMENT
About 27% of the plan is directed at digital transformation of the Italian economy and public administration, broadening access to high-speed internet service, especially in schools, and providing incentives to the private sector to digitize.
Around 22.4 billion euros ($27 billion) are aimed at “social inclusion” investments and programs to boost training and employment opportunities for women and help cities improve access and opportunities for disabled people. The aim of both, coupled with increased day care spots, is to remove obstacles that have traditionally kept Italian women at home caring for the young, old, sick and disabled.
Getting women into the workforce, Draghi said, “is fundamental for Italy's recovery."
The plan envisages the Italian economy, which shrank 8.8% last year, will grow 3.6 percentage points beyond base forecasts without the plan in 2026 and that its employment rate will grow 3.2 percentage points.
SUSTAINABLE DEVELOPMENT
The EU required that at least 37% of its funds be directed toward climate-related investments, part of the bloc’s aim for a cut of 55% of greenhouse gases by 2030 and carbon neutrality by 2050.
Italy’s plan is directing 40% overall, or 68.6 billion euros ($82.9 billion), to green-related investments and initiatives: boosting recycling, overhauling public transport systems to favor low-emission vehicles, and reducing water waste through improvements to waterways.
