Legal provisions of COM(2023)477 - Amendment of Implementing Decision (EU) (ST 10160/21 INIT; ST 10160/21 ADD 1 REV 2) of 13 July 2021 on the approval of the assessment of the recovery and resilience plan for Italy - Main contents
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dossier | COM(2023)477 - Amendment of Implementing Decision (EU) (ST 10160/21 INIT; ST 10160/21 ADD 1 REV 2) of 13 July 2021 on the approval of the ... |
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document | COM(2023)477 ![]() |
date | July 28, 2023 |
Article 1
Council Implementing Decision of 13 July 2021 on the approval of the assessment of the recovery and resilience plan for Italy is amended as follows:
(1) Article 1 is replaced by the following:
“Article 1
Approval of the assessment of the RRP
The assessment of the updated RRP of Italy on the basis of the criteria provided for in Article 19(3) of Regulation (EU) 2021/241 is approved. The reforms and investment projects under the RRP, the arrangements and timetable for the monitoring and implementation of the RRP, including the relevant milestones and targets, the relevant indicators relating to the fulfilment of the envisaged milestones and targets, and the arrangements for providing full access by the Commission to the underlying relevant data are set out in the Annex to this Decision.
(2) In Article 2, paragraph 1 is replaced by the following:
1. The Union shall make available to Italy a financial contribution in the form of non-repayable support amounting to EUR 68 897 310 054.4 An amount of EUR 47 925 096 762 shall be available to be legally committed by 31 December 2022. A further amount of EUR 20 972 213 292 shall be available to be legally committed from 1 January 2023 until 31 December 2023.
(3) The Annex is amended as follows:
(a) Section 1: Reforms and Investments under the Recovery and Resilience Plan; 1. Description of reforms and investments;
(i) in point B3. Mission 1; Component 2: Description of the reforms and investments for the loan; Investment 4 Satellite technology and space economy; is replaced by the following:
The objective of the investment is to develop satellite connections in view of the digital and green transition and to contribute to the development of the space sector. The investment has also the aim to enable services such as secure communications and monitoring infrastructure for various sectors of the economy and, to this effect, it includes both upstream (launch services, production and operation of satellites and infrastructure) and downstream (generation of enabled products and services) activities. The investment includes the award of tenders and encompasses four projects: 1. Satcom, which consists of activities for the development of dual-use technologies and systems to be used for the provision of highly secure innovative satellite communication services for governmental use. 2. Earth Observation (EO), which consists of (i) upstream activities: including specification, design, development of a constellation for remote sensing (Synthetic Aperture Radar (SAR), hyperspectral) and the procurement of launches focused on monitoring land, sea and atmosphere; (ii) downstream activities: the realization of the CyberItaly Project encompassing the creation of a digital replica of the country. 3. Space Factory, consisting of two sub-projects: (i) Space Factory 4.0: the specification, design and building of digital manufacturing, assembly and testing facilities for small satellites and the implementation of a cyber physical system of production and satellite digital twinning aimed at establishing a bidirectional link between the digital model and its physical counterpart; (ii) Access to Space: research, development and prototyping for the realization of green technologies for future generation of thrusters and launchers, including in-flight demonstration of selected technologies. 4. In-Orbit Economy, which consists of the implementation of a demonstrator for in orbit servicing technologies for in orbit interoperability; the increase of the national Space Surveillance and Tracking (SST) capacity including a network of ground-based sensors for the observation and tracking of space debris; design, development, commissioning of assets for the acquisition and management and provision of the data service in support of Space Traffic Management activities.
It is envisaged that the investment does not have military or defence objectives and implications.
(ii) in point C3. Mission 1; Component 3: Description of the reforms and investments for the loan; The title “Investment 3.1 Development of the film industry (Cinecittà project), is replaced by the following:
Investment 3.2: Development of the film industry (Cinecittà project)
(iii) in point E1. Mission 2; Component 2: Description of the reforms and investments for non-repayable financial support; Investment 4.4.2 Renewal of the regional public transport railway fleet with clean fuels trains and universal service, is replaced by the following:
“Investment 4.4.2 Strengthening of the regional public transport railway fleet with zero emission trains and universal service”. This investment consists of the procurement and entry into service of at least 53 zero emission passengers’ trains5 (whereby a train is composed by at least one locomotive and includes passengers’ carriages) and additional 100 carriages for universal service. Overall, the investment shall provide at least a total of 471 units, out of which at least 53 shall be locomotives.
(iv) in point E1. Mission 2; Component 2: Description of the reforms and investments for non-repayable financial support; Investment 3.4 Hydrogen testing for railway mobility, is replaced by the following:
This investment consists in building at least ten refuelling stations for railway based on renewable hydrogen along at least six railway lines. The hydrogen train refuelling stations shall be realised preferably near local renewable hydrogen production sites and/or motorway hydrogen refuelling stations.
(v) in point E3. Mission 2; Component 2: Description of the reforms and investments for the loan; Investment 3.2 Hydrogen Use in hard-to-abate industry, is replaced by the following:
This investment consists in supporting R&D&I on industrial processes to develop initiatives to use hydrogen in industrial sectors that use methane as an energy source for thermal energy (cement, paper mills, ceramic, glass industries, etc.). In the context of this investment, a specific tender shall be launched to support steel R&D&I for steel production process through the increasing use of hydrogen. No natural gas shall be used for the production of hydrogen to be used in the direct reduction of iron. This measure shall support hydrogen production based on electrolysis using renewable energy sources as defined in the Directive (EU) 2018/2001 (renewable Directive) or grid electricity.
(vi) in point F1. Mission 2; Component 3: Description of the reforms and investments for non-repayable financial support; Investment 2.1 Strengthening of the Ecobonus and Sismabonus for energy efficiency and building safety, is replaced by the following:
The Superbonus measure finances the energy and seismic renovation of residential buildings, including social housing as specified in Article 119 of the so-called ‘Decreto Rilancio’ adopted to address the adverse economic and social effects of the pandemic. The goal is twofold: 1) to make a significant contribution to the achievement of the energy saving and emission reduction targets set by the Integrated National Plan for Energy and Climate of Italy (PNIEC) for 2030, and 2) to provide counter-cyclical support to the construction sector and to private demand to offset the effects of economic downturn. The support is provided in the form of a tax deduction over 5 years. Until 16 February 2023, it is provided that the beneficiaries, as an alternative to the instrument of tax deduction, may, instead of the direct use of the deduction, choose to use financial instruments (so-called 'credit transfer' and 'invoice discount'), to address the problem of the high initial investment costs. These alternative instruments provide that the tax deduction accrued by the beneficiary is made for an equal amount in: 1. a contribution in the form of a discount on the prepayment price from the supplier (i.e. construction companies, designers, or more generally the general contractor) who discounts it directly on the invoice and recovered in the form of a tax credit reducing the cost of the initial investment; 2. a tax credit to be ceded to a financial institution, which will pay upfront the necessary capital. This mechanism offsets the possible disincentive to making the renovation because of the high initial investment costs. The choice of the general contractor or the financial institution will be left to the beneficiary.
Condominiums, single-family buildings, undivided housing cooperatives, non-profit organizations and voluntary associations, amateur sports associations and clubs and social housing may benefit from this tax incentive. To be eligible, the renovation must be classified as 'deep renovation' (that is, a medium renovation according to Commission Recommendation (EU) 2019/786), thus entailing an improvement of at least two energy classes (corresponding on average to primary energy saving of 40%). The scope of eligible interventions covered by this measure is wide, including for instance driving interventions, towed interventions, thermal insulation of opaque surfaces, and interventions on air conditioning systems (condensing boilers; heat pumps; connection to efficient district heating networks under specific conditions; solar thermal; biomass boilers under specific conditions), PV systems with related storage systems or infrastructure for charging electric vehicles. Interventions to reduce the seismic risk of buildings are also part of this instrument and are expected to account for around 14% of the budget allocated. Two ministerial decrees of 6 August 2020 have already defined the technical requirements of the interventions and the procedures to certify compliance with the specific maximum requirements and costs. The Superbonus has already been active since 1 July 2020 and s hall remain in force until 30 June 2022 (for social housing until 31 December 2022). Access to the benefit may be required for a further period of six months, in the case of works on condominiums or social housing, when at least 60% of the works has been carried out before the dates indicated above. To give more time to more complex interventions it is planned to extend the application of the measure for condominiums until December 31, 2022 and for social housing until June 30, 2023, regardless of the completion of at least 60% of the works. It is expected that this measure does not do significant harm to environmental objectives within the meaning of Article 17 of Regulation (EU) 2020/852, taking into account the description of the measure and the mitigating steps set out in the recovery and resilience plan in accordance with the DNSH Technical Guidance (2021/C58/01). In particular, the cost of installing gas-condensing boilers shall represent at most 20% of the overall renovation programme cost. In those cases where gas-condensing boilers are installed as the chosen replacement of existing inefficient gas, coal and oil-based boilers, they shall have an A performance. Additionally, the installation of natural-gas boilers shall be compliant with the conditions set up in the DNSH Technical Guidance (2021/C58/01).
(vii) in point J1 Mission 4 Component 1: Description of the reforms and investments for non-repayable financial support; Investment 1.1. Plan for nurseries and preschools and early childhood education and care services, is replaced by the following:
The investment plan for the 0-6 age group is aimed at increasing the supply of childcare facilities by building, renovating and ensuring the safety of nurseries and preschools, to ensure an increase in the educational offer and the available slots for the 0-6 age group, and thus improve teaching quality. The measure is expected to encourage women’s participation in the labour market and support caregivers in reconciling family and professional life. In order to ensure that the measure complies with the ‘Do no significant harm’ Technical Guidance (2021/C58/01), the eligibility criteria contained in terms of reference for upcoming calls for projects shall exclude the following list of activities: (i) activities related to fossil fuels, including downstream use ; (ii) activities under the EU Emission Trading System (ETS) achieving projected greenhouse gas emissions that are not lower than the relevant benchmarks ; (iii) activities related to waste landfills, incinerators and mechanical biological treatment plants ; and (iv) activities where the long-term disposal of waste may cause harm to the environment. The terms of reference shall additionally require that only activities that comply with relevant EU and national environmental legislation shall be selected.
(viii) in point J3 Mission 4; Component 1: Description of the reforms and investments for loans; reform 1.7 Reform of student housing regulation and investment in student housing, is replaced by the following:
The reform has the objective of encouraging private entities to set up student accommodation facilities, with the Ministry of University and Research contributing for a portion of the renting revenues for the first three years of operation of the structures. The aim is to increase available places for out-of-school students by 2026.
The envisaged investment aims at ensuring a widespread access to housing facilities so that a reasonable number of students may afford advanced education in their preferred field and location regardless of their socio-economic background. It aims to add 60,000 sleeping accommodations, thus significantly reducing Italy's gap with the EU average regarding the share of students provided with housing facilities (18% against the current 3% in Italy). The investment shall not include the procurement of natural gas boilers.
Accommodations already used for student housing purposes before the launch of the relative call for projects cannot be accounted for the targets. To reach the final target of beds created and assigned, calls for projects shall be launched between 2021 and 2025.
(ix) in point N1 Mission 5; Component 3: Description of the reforms and investments for non-repayable financial support; Investment 3 Structured socio-educational interventions to combat educational poverty in the South supporting the Third Sector, is replaced by the following:
The measure aims at fostering the third sector in Southern regions (Abruzzo, Basilicata, Campania, Calabria, Molise, Puglia, Sardinia and Sicily) and at supplying socio-educational services to minors in connection with the provisions of the Partnership Agreement for the 2021-2027 programming period of European cohesion policies.
The socio-educational interventions to combat educational poverty and support the Third sector is expected to take place in one of the following areas:- Interventions for children aged zero to six aimed at strengthening the conditions of access to nursery and kindergarten services and at supporting parenthood;- Interventions for children aged five to ten aimed at guaranteeing effective educational opportunities and early prevention of school dropout, bullying and other phenomena of distress; - Interventions for children aged 11-17, which aim at improving education supply and preventing the phenomenon of early school leaving. The interventions shall ensure the following key elements of the tender: - Public notices shall account at least for EUR 50 000 000 each; - The third sector entities projects shall last at least one year and up to two years.
(x) in point C4. Mission 1; Component 3: Milestones, targets, indicators, and timetable for monitoring and implementation for non-repayable financial support, row M1C3-20 is replaced by the following:
M1C3-20 | Investment - 3.2 Development of the film industry (Cinecittà project) | Milestone | Signature of the contracts between the implementig entity Cinecitta’ SPA and the companies in relation to the construction of nine studios | Signature of the contracts | - | - | - | Q2 | 2023 | Signature of the contracts between the implementing body, Cinecitta’ SPA and the companies in relation to the construction of nine studios. This intervention includes the construction of new studios, recovery of existing studios, investments in new digital technologies, systems and services aimed at strengthening the Cinecittà film studios managed by Cinecittà SPA. The contract between the implementing entity Cinecittà SPA and the companies shall contain selection/eligibility criteria for compliance with the DNSH Technical Guidance (2021/C58/01) of supported assets/activities and/or companies. Commitment/target to invest 20% in assets/activities and/or companies compliant with the selection criteria for digital tracking and 70% with selection criteria for climate tracking |
(xi) in point E2. Mission 2; Component 2: Milestones, targets, indicators, and timetable for monitoring and implementation for non-repayable financial support, row M2C2-16 is replaced by the following:
M2C2-16 | Investment 3.4 Hydrogen testing for railway mobility | Milestone | Allocation of resources for hydrogen testing for railway mobility | Notification of the allocation of resources | N/A | N/A | N/A | Q1 | 2023 | Allocation of resources according to the procedures and criteria established to build ten refuelling stations for railway based on hydrogen along six railway lines. |
(xii) in point E2. Mission 2; Component 2: Milestones, targets, indicators, and timetable for monitoring and implementation for non-repayable financial support, row M2C2-27 is replaced by the following:
M2C2-27 | Investment 4.3 Installation of charging infrastructures | Milestone | Award of all public contracts for the installation of charging infrastructures M1 | Notification of the award of all the public contracts for the installation of charging infrastructures | - | - | - | Q2 | 2023 | Notification of the award of all public contracts to build at least 4 700 re-charging stations in urban areas (all municipalities). The project may also include pilot re-charging stations aimed at storing energy. |
(xiii) in point E2. Mission 2; Component 2: Milestones, targets, indicators, and timetable for monitoring and implementation for the non-repayable financial support, row M2C2-33 is replaced by the following:
M2C2-33 | Investment 4.4.2: Strengthening of the regional public transport railway fleet with zero emission trains and universal service carriages | Milestone | Award of all public contracts for the strenghthening of regional public transport railway fleet with zero emission trains and universal service carriages | Notification of the award of all the contracts for the regional public transport railway fleet with zero emission trains and universal service | N/A | N/A | N/A | Q2 | 2023 | Notification of the award of all public contracts for the acquisition of zero emission trains6 |
(xiv) in point F2. Mission 2; Component 3: Milestones, targets, indicators, and timetable for monitoring and implementation for non-repayable financial support, row M2C3-2 is replaced by the following:
M2C3-2 | Investment 2.1- Strengthening of the Ecobonus and Sismabonus for energy efficiency and building safety | Target | Building renovation Superbonus and Sismabonus T1 | N/A | Number | 0 | 17 000 000 | Q2 | 2023 | Complete building renovation for, at least 17 000 000 square meters which result in primary energy savings of at least 40% and increasing at least two categories in the energy efficiency certificate, . |
(xv) in point J2. Mission 4; Component 1: Milestones, targets, indicators, and timetable for monitoring and implementation for non-repayable financial support, row M4C1-9 is replaced by the following:
M4C1-9 | Investment 1.1: Plan for nurseries and preschools and early childhood education and care services | Milestone | Award of contracts for building, renovating and ensuring the safety of nurseries, preschools and early childhood education and care services | Notification by the local authorities beneficiaries of the financing of award of public contracts for the first set of eligible interventions | N/A | N/A | N/A | Q2 | 2023 | Award of contracts and territorial distribution, for the nursery, preschool, early childhood education and care services. The award shall be done in compliance with the “Do no significant harm” Technical Guidance (2021/C58/01) through the use of an exclusion list and the requirement of compliance with the relevant EU and national environmental legislation. |
(xvi) in point J4 Mission 4 Component 1: Milestones, targets, indicators, and timetable for monitoring and implementation for the loan, row M4C1-28 is replaced by the following,
M4C1-28 | Reform 1.7: Reform of student housing regulation and investment in student housing | Milestone | Awards of initial contracts for the creation of additional sleeping accommodation units (beds) | Publication of the awards in the Ministry’s website | N/A | N/A | N/A | Q2 | 2023 | Awards of initial contracts for the creation of additional sleeping accommodation units (beds) |
(xvii) in point J4 Mission 4 Component 1: Milestones, targets, indicators, and timetable for monitoring and implementation for the loan, row M4C1-30 is replaced by the following,
M4C1-30 | Reform 1.7: Reform of student housing regulation and investment in student housing | target | Student sleeping accommodation units created and assigned following the existing or the new legislative scheme | N/A | Number | 0 | 60 000 | Q2 | 2026 | At least 60 000 additional sleeping accommodation units (beds) created and assigned following either Law no. 338/2000 as revised in August 2022 or the new legislative scheme adopted under milestone M4C1-29, Reform 1.7: Reform of student housing regulation and investment in student housing. |
(xviii) in point L4 Mission 5; Component 1: Milestones, targets, indicators, and timetable for monitoring and implementation for the loan support, row M5C1-18 is replaced by the following:
M5C1-18 | Investment 5 - Creation of women's enterprises | Target | Financial support to enterprises has been committed | N/A | Number | 0 | 700 | Q2 | 2023 | Financial support has been committed to at least 700 additional enterprises compared to the baseline. The implementation of support to female entrepreneurship is undertaken through instruments already active (nito, smart & start) and the new fund established by the Budget Law for 2021. (Women's enterprises supported until November 2020 by existing financial instruments as the baseline). |
(xix) in point N2. Mission 5; Component 3: Milestones, targets, indicators, and timetable for monitoring and implementation for the non-repayable financial support, row M5C3-8 is replaced by the following:
M5C3-8 | Investment 1.3: Structured socio-educational interventions to combat educational poverty in the South supporting the Third Sector | Target | Educational support to minors (first batch) | N/A | Number | 0 | 20 000 | Q2 | 2023 | At least 20 000 minors aged up to 17 years shall receive educational support. The projects of educational support shall focus on one of the following areas: • Interventions for children aged zero to six aimed at strengthening the conditions of access to nursery and kindergarten services and at supporting parenthood; • Interventions for children aged five to ten aimed at guaranteeing effective educational opportunities and early prevention of school dropout, bullying and other phenomena of distress; • Interventions for children aged 11-17, which aim at improving education supply and preventing the phenomenon of early school leaving. Key elements of the tender: - Public notices shall account for at least EUR 50 000 000 each; - The third sector entities projects shall last at least one year and up to two years. The actions shall take place in the regions of Abruzzo, Basilicata, Campania, Calabria, Molise, Puglia, Sardegna and Sicilia. |
(b) Section 2: Financial Support, point 1. Financial contribution, is amended as follows:
(i) in point 1.4 Fourth Instalment (non-repayable support), the instalment of ‘EUR 2 298 850 575’ is replaced by ‘EUR 2 315 646 882’
(c) Section 2: Financial Support, point 2. Loan, is amended as follows:
(i) in point 2.3 Third Instalment (loan support), row M4C1-28 is deleted;
(ii) in point 2.3 Third Instalment (loan support), the instalment amount of ‘EUR 10 344 827 586’ in the final row and column is replaced by ‘EUR 9 825 328 389’;
(iii) in point 2.4 Fourth Instalment (loan support), the following new row is inserted after row M2C4-21;
M4C1-28 | Reform 1.7: Reform of student housing regulation and investment in student housing | Milestone | New student sleeping accommodations in student housing |
(iv) in point 2.4 Fourth Instalment (loan support), the instalment amount of ‘EUR 16 091 954 023’ in the final row and column is replaced by ‘EUR 16 611 453 220’;
(d) Section 3: Additional arrangements is replaced by the following:
(1) Arrangements for monitoring and implementation of the recovery and resilience plan
The monitoring and implementation of the recovery and resilience plan of Italy takes place in accordance with the following arrangements.
As provided under Decree-Law No. 77 of 31 May 2021 as amended by Decree-Law No. 13 of 24 February 2023, a number of coordinating structures are created for the monitoring and implementation of the plan. These include in particular: (i) a high-level steering committee (“cabina di regia”) established at the Presidency of the Council of Ministers, with the main task to steer and coordinate the implementation of the plan; (ii) a mission structure established at the Presidency of the Council of Ministers, at least for the duration of the plan, empowered to act as a central coordination structure for the implementation and monitoring of the plan; (iii) a technical structure at the Ministry of Economy and Finance, performing the operational monitoring of the implementation of plan, the control of the regularity of procedures and expenses and the reporting, and the technical and operational support to the implementation phase. The mission structure at the Presidency of the Council of Ministers acts as a single point of contact at national level for the European Commission. The Ministry of Economy and Finance ensures the evaluation of the results of the plan. Social partners and other stakeholders participate to dedicated meetings of “cabina di regia” to ensure their involvement in the implementation of the plan. Moreover, coordination structures are identified at the level of each central administration responsible for measures included in the plan, tasked with the management, monitoring, reporting and control on the relevant interventions, including in relation to the supervision of implementation and progress towards the achievement of milestones and targets. Finally, enforcement mechanisms in case of implementation issues, including through the activation of substitution powers vis-à-vis the administrations responsible for the measures of the plan, are envisaged with the aim to guarantee a timely and effective delivery of projects and ex-ante mechanisms for the resolution of conflicts are put in place.
In order to strengthen administrative capacity for the monitoring and implementation, the recruitment of temporary personnel is envisaged, including in relation to central administrations responsible for plan’s interventions and the Ministry of Economy and Finance (including concerning the central coordinating structure and the State Accounting Department), as provided under Decree Law of 9 June 2021, n. 80, as well as in relation to administrations of the South of Italy, which are expected to reinforce human capital involved in the planning and spending of EU funds, as provided in particular under Law n. 178 of 2020. In addition, resources are allocated to the mission structure established at the Presidency of the Council of Ministers to ensure its effective functioning, as provided under Decree-Law No. 13 of 24 February 2023. Finally, technical and operational support to central and local administrations is envisaged in the implementation of projects, including through the use of public capital companies, a pool of experts for technical assistance, and the possibility to resort to external expertise. These actions shall be accompanied by the implementation of measures to cut red tape and simplify administrative procedures, as provided for under Decree Law No. 77 of 31 May 2021 and Decree-Law No. 13 of 24 February 2023.
The arrangements also provide for the use of an integrated IT system (“ReGiS”). The existing audit service Inspectorate General for Financial Relations with the European Union (IGRUE), within the Ministry of Economy and Finance, is tasked with the coordination of the audit systems and conducting the controls with the support of the State Territorial Accounts Office (RTS). Enhanced arrangements with Guardia di Finanza and relevant independent authorities such as the national anti-corruption agency ANAC shall remain in place, thus reinforcing the role that the Italian legal system already attributes to these authorities in relation to the protection of public finances, including those from the EU.
(2) Arrangements for providing full access by the Commission to the underlying data
The Ministry of Economy and Finance acts as a technical structure for monitoring, including on progress on milestones and targets, and, where appropriate, implementing control and audit activities, and for providing reporting and requests for payments. It coordinates the reporting of milestones and targets, relevant indicators, but also qualitative financial information and other data, such as on final recipients. The data encoding is taking place at the level of the central administrations responsible for the plan’s measures, which shall report the required data to the Ministry of Economy and Finance. In accordance with Article 24(2) of Regulation (EU) 2021/241, upon completion of the relevant agreed milestones and targets in Section 2.1 of this Annex, Italy shall submit to the Commission a duly justified request for payment of the financial contribution and, where relevant, of the loan. Italy shall ensure that, upon request, the Commission has full access to the underlying relevant data that supports the due justification of the request for payment, both for the assessment of the request for payment in accordance with Article 24(3) of Regulation (EU) 2021/241 and for audit and control purposes
Article 2
This Decision is addressed to the Italian Republic.