52023PC0765

EUROPEAN COMMISSION

Brussels, 24.11.2023

COM(2023) 765 final

2023/0442(NLE)

Proposal for a

COUNCIL IMPLEMENTING DECISION

amending Implementing Decision (EU) (ST 10160/21; 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

{SWD(2023) 392 final}

2023/0442 (NLE)

Proposal for a

COUNCIL IMPLEMENTING DECISION

amending Implementing Decision (EU) (ST 10160/21; 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

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty on the Functioning of the European Union,

Having regard to Regulation (EU) 2021/241 of the European Parliament and of the Council of 12 February 2021 establishing the Recovery and Resilience Facility 1 , and in particular Article 20(1) thereof,

Having regard to the proposal from the European Commission,

Whereas:

(1)Following the submission of the national recovery and resilience plan (‘RRP’) by Italy on 30 April 2021, the Commission has proposed its positive assessment to the Council. The Council approved the positive assessment by means of the Council Implementing Decision of13 July 2021 2 .

(2)Pursuant to Article 11(2) of Regulation (EU) 2021/241, the maximum financial contribution for non-repayable financial support of each Member State should be updated by 30 June 2022 in accordance with the methodology provided therein. On 30 June 2022, the Commission presented the results of that update to the European Parliament and the Council.

(3)On 7 August 2023, Italy submitted a modified national RRP, including a REPowerEU chapter in accordance with Article 21c of Regulation (EU) 2021/241, to the Commission.

(4)The modified RRP also takes into account the updated maximum financial contribution in accordance with Article 18(2) of Regulation (EU) 2021/241and includes a reasoned request to the Commission to propose to amend the Council Implementing Decision in accordance with Article 21(1) of Regulation (EU) 2021/241 considering the RRP to be partially no longer achievable due to objective circumstances. The modifications to the RRP submitted by Italy concern 123 measures.

(5)On 14 July 2023, the Council addressed recommendations to Italy in the context of the European Semester. The Council recommended that Italy should reduce the reliance on fossil fuels, streamline the permitting procedures in renewables, increase the capacity for internal gas transmission to diversify energy imports and strengthen security of supply, increase energy efficiency in the residential and corporate sectors, including for the most vulnerable households and the worst-performing buildings, promote sustainable mobility and step up policy efforts aimed at the provision and acquisition of the skills needed for the green transition. Moreover, Italy was recommended to take action to increase the efficiency of the taxation system, the effectiveness of the public administration and strengthen administrative capacity, both at central and subnational level.

(6)The submission of the modified RRP followed a consultation process, conducted in accordance with the national legal framework, involving local and regional authorities, social partners, civil society organisations, youth organisations and other relevant stakeholders. The summary of the consultations was submitted together with the modified national RRP. Pursuant to Article 19 of Regulation (EU) 2021/241, the Commission assessed the relevance, effectiveness, efficiency and coherence of the modified RRP, in accordance with the assessment guidelines set out in Annex V to that Regulation.

Updates based on Article 18(2) of Regulation 2021/241

(7)The modified RRP submitted by Italy update one measure to take into account the updated maximum financial contribution. Italy has explained that because the maximum financial contribution increased from EUR 68 880 513 748 3 to EUR 69 023 756 552 4 Italy requested to use the additional available resources to increase the level of required implementation of existing measures.

(8)Specifically, the modified RRP submitted by Italy changes two measures under this legal basis. First, measure under component 1 of mission 4, ‘Strengthening the provision of education services: from nurseries to universities’, to reflect the updated maximum financial contribution. Notably, M4C1-11 and 15 are changed to increase the level of required implementation compared to the original plan to reflect the increased allocation.

(9)Under the same legal basis, Italy added one new reform. Namely, Reform 1.9.1 - Reform for accelerating the implementation of cohesion policy, under mission 1 of component 1 and related M1C1-14bis. In accordance with Article 9 of Regulation (EU) 2021/241, the RRF does not cover any cost of the reform.

(10)The Commission considers that the reasons put forward by Italy justify the update pursuant to Article 18(2) of Regulation (EU) 2021/241, and the Council Implementing Decision should be amended accordingly.

Amendments based on Article 21 of Regulation 2021/241

(11)The amendments to the RRP submitted by Italy because of objective circumstances concern 96 measures.

(12)Italy has explained that 30 measures are no longer partially achievable because high inflation has increased the estimated costs of these measures. This concerns, respectively: Investment 1.7, Basic digital skills, under component 1 of mission 1; Investment 4.1 Digital Tourism Hub, under component 3 of mission 1; Investment 3.2 Development of the film industry (Cinecittà project), under component 3 of mission 1; Investment 4.3 Caput Mundi-Next Generation EU for touristic great events, under component 3 of mission 1; Investment 1.1, Development of agri-voltaic systems under component 2 of mission 2; Investment 1.2 Promotion of RES for energy communities and jointly acting renewables self-consumers under component 2 of mission 2; Investment 4.4.2 Renewal of the regional public transport railway fleet with clean fuels trains and universal service under component 2 of mission 2; Investment 5.4 Support to start-ups and venture capital active in the ecological transition under component 2 mission 2; Investment 1.1 Construction of new schools through building replacement under component 3 of mission 2; Investment 2.1 Strengthening of the Ecobonus and Sismabonus for energy efficiency and building safety under component 3 of mission 2; Investment 4.3 Investments in the resilience of the irrigation agrosystem for better management of water resources under component 4 of mission 2; Investment 4.4 Investments in sewerage and purification under component 4 of mission 2; Investment 1.6 Strengthening regional lines – Upgrading of regional railways (management RFI) under component 1 of mission 3; Investment 1.1 Plan for nurseries and preschools and early childhood education and care services under component 1 of mission 4; Investment 1.2 Plan for the extension of full-time under component 1 of mission 4 Investment 3.3 School building security and structural rehabilitation plan under component 1 of mission 4; Investment 3.4 Teaching and advanced university skills; ; Investment 3.2 Financing start-ups under component 2 of mission 4; Reform 1 The Active Labour Market Policies (ALMPs) and Vocational Training under component 1 of mission 5; Investment 3 Strengthening the dual system under component 1 of mission 5; Investment 4 Strengthening of the Universal Civil Service under component 1 of mission 5; Investment 1.1 Inner Areas Enhancement of community social services and infrastructures, under component 3 of mission 5; Investment 2, Enhancement of assets confiscated from organised crime, under component 3 of mission 5; Investment 4 Infrastructural Investments for the Special Economic Zones (SEZ) under component 3 of mission 5; Investment 1.1 Health Community Houses under component 1 of mission 6; Investment 1.2. Home as the first place of care and telemedicine; Investment 2.3 Telemedicine strategies under component 1 of mission 6; Investment 1.3 Community Hospitals under component 1 of mission 6; Investment 1.2 Digital update of hospitals’ technological equipment-large sanitary equipment under component 2 of mission 6; Investment 1.1.1 Digital update of hospitals’ technological equipment under component 2 of mission 6; Investment 1.2 Safe hospital under component 2 of mission 6. On this basis, Italy has requested to amend the aforementioned measures, including their milestones and targets when necessary, and to remove two of them. The Council Implementing Decision should be amended accordingly. Furthermore, for some measures, taking into account the resources that were freed up by the removal of other measures under Article 21 of Regulation (EU) 2021/241, Italy has maintained the level of required implementation of the associated targets. The description of these measures and their associated milestones and targets remains unchanged.

(13)Italy has explained that six measures are no longer partially achievable because of supply chain disruptions. This concerns the following measures: Investment 2.3, innovation and mechanization in the agricultural and food sectors, under component 1 of mission 2; Investment 3.3, re-naturification of Po area, under component 4 of mission 2; Investment 1.4, Introducing the European Rail Transport Management System (ERTMS), under component 1 of mission 3; Investment 2.2, Digitalization of air traffic management, under component 2 of mission 3; Investment 1, Strengthening Public Employment Services (PES), under component 1 of mission 5; Investment 5, Urban Integrated Plans, under component 2 of mission 5. On this basis, Italy has requested to amend the aforementioned measures, including their milestones and targets when necessary, and the Council Implementing Decision should be amended accordingly.

(14)Italy has explained that seven measures are no longer partially achievable because of changes in market demand resulting from hanges in the market conditions, which include higher costs affecting procurement procedures. This concerns the following measures: Investment 1.4 Digital services and citizen experience under component 1 of mission 1; Investment 3 Fast internet connections (Ultra-Broadband and 5G), under component 2 of mission 1; Investment 4.2 Funds for the competitiveness of tourism enterprise under component 3 of mission 1; Investment 2.1 Logistics plan for the agri-food, fishing and aquaculture, forestry, floriculture and plant nursery sectors under component 1 of mission 2; investment 1.3, Promotion of innovative systems (including off-shore), under component 2 of mission 2; Investment 3.3 Hydrogen testing for road transport under component 2 of mission 2; investment 2.2, Interventions for the resilience, the enhancement of the territory and the energy efficiency of the Municipalities, under component 4 of mission 2. On this basis, Italy has requested to amend the aforementioned measures, including their milestones and targets when necessary, and to remove two of them, and the Council Implementing Decision should be amended accordingly.

(15)Italy has explained that one measure is no longer partially achievable because of lack of demand. This concerns the following measures Investment 1.2, Funding projects presented by young researchers, under component 2 of mission 4. On this basis, Italy has requested to amend the description of the aforementioned measure, and its target M4C2-1-1-bis, and the Council Implementing Decision should be amended accordingly.

(16)Italy has explained that 43 measures have been modified to implement better alternatives in order to achieve the original ambition of the measure. This concerns: Reform 1.4, Reform of civil justice, under component 1 of mission 1; Reform 1.8, Recruitment procedures for civil, criminal and administrative courts, under component 1 of mission 1; Investment 1.1, Digital infrastructure, under component 1 of mission 1; Investment 5 Cybersecurity under component 1 of mission 1; Investment 6 Digital transformation of large central administrations under component 1 of mission 1; Reform 1.9 Reform of the public administration under component 1 of mission 1; Reform 1.10, Reform of the public procurement legislative framework, under component 1 of mission 1; Reform 1.11, Reduction of late payments by public administrations and health authorities, under component 1 of mission 1; Reform 1.15 Reform of public accounting rules under component 1 of mission 1; Investment 1 Transition 4.0 under component 2 of mission 1; Reform 2 Annual Competition Laws under component 2 of mission 1; Investment 2.3 Programs to enhance the identity of places: parks and historic gardens under component 3 of mission 1; Reform 4.1, Regulation ordering the professions of tourist guides, under component 3 of mission 1; Investment 1.1 Implementation of new waste management plants and modernization of existing plants under component 1 of mission 2; Reform 1.2 National Program for Waste Management under component 1 of mission 2; Investment 1.4 Development of bio-methane, according to criteria for promoting the circular economy under component 2 of mission 2; Investment 3.2 Hydrogen Use in hard-to-abate industry under component 2 mission 2; Investment 4.2, Development of Rapid Mass Transport systems (metro, streetcar, BRT), under component 2 of mission 2; Investment 4.3, Charging infrastructures, under component 2 of mission 2; Investment 5.1, Development of an international, industrial and R&D leadership in renewables and batteries, under component 2 of mission 2; Investment 1.1 Implementation of an advanced and integrated monitoring and forecast system under component 4 of mission 2; Investment 1.2, Measures for flood and hydrogeological risk reduction, under component 4 of mission 2; Investment 3.2 Digitization of national parks under component 4 of mission 2; Investment 4.1 Investments in primary water infrastructures for the security of water supply under component 4 of mission 2; ; Investment 3.1, Protection and enhancement of urban and peri-urban forests, under component 4 of mission 2; Investment 4.2 Reduction of losses in water distribution networks, including digitization and monitoring of networks under component 4 of mission 2; Investment 1.1 High-speed railway connections to the South for passengers and freight under component 1 of mission 3; Investment 1.2 High-speed lines in the North connecting to the rest of Europe, under component 1 of mission 3; Investment 1.3 Diagonal connections under component 1 of mission 3; Investment 1.5 Strengthening metropolitan nodes and key national links under component 1 of mission 3; Investment 1.7 Upgrading, electrification and resilience of railways in the South under component 1 of mission 3; Investment 1.8 Upgrading railway stations (RFI management in South) under component 1 of mission 3; Investment 2.1 Digitalisation of the logistic chain under component 2 of mission 3; Reform 1.1 Reform of Technical and Professional Institutes under component 1 of mission 4; Reform R.2.1 Teachers’ recruitment under component 1 of mission 4; Investment 2.1 Integrated digital teaching and training on the digital transformation for school staff under component 1 of mission 4; Reform 1.7 Reform of student housing regulation and investment in student housing under component 1 of mission 4; Investment 4.1 Extension in number and career opportunities of PhDs (Research-oriented, Public Administration and Cultural Heritage) under component 1 of mission 4; Investment 3.3 Introduction of innovative doctorates that respond to the needs of innovation by enterprises and promote the hiring of researchers by companies under component 2 of mission 4; Investment 5 Creation of women’s enterprises under component 1 of mission 5; Investment 4 Investments in projects of urban regeneration, aimed at reducing situations of marginalization and social degradation under component 2 of mission 5; Investment 1, 2. Territorial Proximity Health Facilities under component 3 of mission 5; Investment 1.2.1, Home as the first place of care and telemedicine, under component 1 of mission 6. On this basis, Italy has requested to amend the aforementioned measures, including their milestones and targets when necessary, and the Council Implementing Decision should be amended accordingly.

(17)Italy has explained that three measures are no longer achievable in the specific terms envisaged in the original RRP because of unforeseen new circumstances, such as the need to follow unexpected lengthier preparatory procedures than initially planned, which are more conducive to meeting the policy objectives of these measures; unforeseen developments in the consultation or procurement processes, the unexpected need for more time in order to take into account the adoption of new procedures, demand-driven circumstances or adapting the administrative framework to facilitate the implementation of the measure, the necessity of additional adaptations of the legal framework. This concerns the following measures: Investment 1.1, Green ports: renewable energy and energy efficiency interventions at ports, under component 2 of mission 3; Investment 2.3, Strengthening and sectorial/territorial extension of technology transfer centres by industry segments, under component 2 of mission 4; Investment 1.1.2 Territorial Proximity health facilities. On this basis, Italy has requested to amend the aforementioned measure, including its milestones and targets when necessary, and the Council Implementing Decision should be amended accordingly.

(18)Italy has further requested to use part of the remaining resources freed up by the removal or modification of measures under Article 21 of Regulation 2021/241 for a total amount of EUR 8 421 000 000, to include five measures under the REPowerEU chapter. This concerns M7-35-36-37 of Investment 13 (Adriatic Line Phase 1 (Sulmona compressor station and Sestino-Minerbio gas pipeline)); M7-38-39 of Investment 14 (Cross-border gas export infrastructure); M7-40-41-42, Investment 15 (Transizione 5.0) M7-43-44-45 of Investment 16 (Support to SMEs for self-production from renewable energy sources); M7-46-47-48 of Investment 17 (Financial instrument for energy renovations public and social housing). Italy has requested to use the rest of the remaining resources freed up by the removal or modification of measures under Article 21 of Regulation 2021/241 to include six new measures. This concerns M1C2-14bis-14ter of Reform 2.3 (Rationalization and simplification of firms’ incentives) under Mission 1; M1C1-75bis and M1C1-99bis of Investment 1.10 (Support to qualification and eProcurement) under Mission 1; M1C2-30-31-32 of Investment 7 (Support to the production system for the Ecological Transition, Net-Zero Technologies, and competitiveness and resilience of strategic supply chains) under Mission 1; M2C1-22-23-24-25 of Investment 3.4 (Fondo Rotativo Contratti di Filiera (FCF) to support supply-chains contracts for the agri-food, fishing and aquaculture, forestry, floriculture and plant nursery sectors) under Mission 2; M3C1-8-8bis of Investment 1.9 (Inter-regional connections) and M3C2-7 and M3C2-12 of Investment 2.3 (Cold ironing) under Mission 3.

(19)The Commission considers that the reasons put forward by Italy justify the amendment pursuant to Article 21(2) of that Regulation.

Corrections of clerical errors

(20)Clerical errors have been identified in the text of the Council Implementing Decision of 13 July 2021, affecting 25 measures. The Council Implementing Decision of 13 July 2021 should be amended to correct those clerical errors that do not reflect the content of the RRP submitted to the Commission on 30 April 2021, as agreed between the Commission and Italy. Those clerical errors relate to M1C1-119 and M1C1-120 of the Reform 1.14 (Reform of the subnational fiscal framework); additionally, to M1C2-29 of Investment 5.2 (Competitiveness and resilience of supply chains) under component 2 of mission 1; Clerical errors also relate to M2C1-4, M2C1-5, and M2C1-6 of Investment 2.2 (Agri-solar park), to M2C2-9, M2C2-10, and M2C2-11 of Investment 2.1 (Strengthening smart grids), to M2C2-17 of Investment 3.4 (Hydrogen testing for railway mobility), to M2C2-19 of Investment 3.5 (Hydrogen Research and Development), to M2C2-32-34-35-33bis/ter of Investment 4.4.1 (Renewal of the regional public transport bus fleet with clean fuels), to M2C2-31 of Investment 4.4.3 (Renewal fleet for the National fire brigade command), a clerical error concern Investment 5.3 (Development of an international, industrial and R&D leadership in electric buses) under component 2 of mission 2; Clerical errors also relate to M2C3-7 and M2C3-8 of Investment 1.2 (Construction of buildings, requalification and strengthening of real estate assets of the administration of justice) under component 3 of mission 2; Clerical error relating to M2C4-26 of Investment 3.5 (Restoration and protection of the seabed and marine habitats) under component 4 of mission 2; Clerical errors regard additionally M4C1-7 and M4C1-25 of Investment 1.4 (Extraordinary intervention aimed at the reduction of territorial gaps in I and II cycles of secondary school and at tackling school drop-out), M4C1-24 of Investment 1.6 (Active orientation in school-university transition), M4C1-11 and M4C1-15 of Investment 1.7 (Scholarships for University access); to M4C2-5-6-7 of Investment 1.1 (Research Projects of Significant National Interest (PRIN)), to M4C2-8 of Investment 1.3 (Partnerships extended to universities, research centres, companies and funding of basic research projects), to M4C2-9 of Investment 1.4 (Strengthening research structures and supporting the creation of “national R&D leaders” on some Key Enabling Technologies), to Investment 1.5 (Establishing and strengthening of "innovation ecosystems for sustainability", building "territorial leaders of R&D") adding a final target, to M4C2-22 of Investment 2.1 (Important Project of Common European Interest (IPCEI)), and to M4C2-16 of Investment 3.1 (Fund for construction of an integrated system of research and innovation infrastructures), under component 2 of mission 4; clerical error for M5C1-10 of Investment 3 (Housing First and Post Stations), under component 1 of mission 5; clerical error for M5C2-21-22,Investment 7, The Sport and Social Inclusion project, under component 2 of mission 5; clerical error for M6C2-13 of Investment 1.3 (EHR) under component 2 of mission 6. Those corrections do not affect the implementation of the measures concerned. Clerical error regards additionally M1C1-16 of Investment 1.6.5 (Digitization of the Council of State) and M3C1-4 of Investment 1.1 (High-speed railway connections to the South for passengers and freight).

The REPowerEU chapter based on Article 21c of Regulation 2021/241

(21)The REPowerEU chapter includes five new reforms and 17 new investments.

(22)The first reform, Streamlining permitting procedures for renewable energy at central and local level, provides for the adoption and entry into force of a single primary legislative text, known as Testo Unico consolidating all the norms regulating the deployment of renewable energy sources. The second reform aims at reducing Environmentally Harmful Subsidies listed in the annual Catalogue of Environmentally Harmful Subsidies published by the Ministry of Environment and Energy Security. The third reform, Reduction of the costs of connection to the gas network of biomethane, is to enhance the integration of biomethane producing facilities in the national energy network. The fourth reform, Mitigation of financial risk associated with renewable PPAs (Power Purchase Agreements), establishes a system of guarantees mitigating the financial risk associated with renewable Power Purchase Agreements. The fifth reform, Plan for new Skills – Transitions, consists in updating the regulatory framework of training and operationalising the tools to combat skills mismatch, updating the already adopted New Skills Plan. One investment in the REPowerEU chapter, Investment 17. Financial instrument for energy renovations public and social housing, will contribute to address energy poverty, by setting up a financial instrument for energy renovations of public and social housing and, targeting vulnerable households in other residential buildings. The REPowerEU chapter also includes measures that contribute to improving energy infrastructure and facilities to meet immediate security of supply needs, in particular: two investments (Investment 13. Adriatic Line Phase 1, Investment 14. Cross-border gas export infrastructure) will improve the national gas infrastructure and strengthen the security of supply needs for gas both in Italy and in Central Europe; three investments (Investment 4. Tyrrhenian link, Investment 5. SA.CO.I.3, Investment 6. Cross-border electricity interconnection projects between Italy and neighbouring countries) will improve the electric grid infrastructure by integrating Sardinia and Sicily with the continent, interconnecting Corsica and Sardinia, and increasing the existing interconnection between Italy, Austria and Slovenia; one investment, Investment 7. Smart National Transmission Grid consists in interventions to strengthen the digitalisation of the national transmission grid. Moreover, one investment, Investment 16. Support to SMEs for self-production from renewable energy sources, will set up a facility supporting private companies investing in self-consumption and self-production of renewable energy; one investment, Investment 15. Transizione 5.0, will support the energy transition of production processes towards an energy efficient, sustainable and renewable-based model of production through a tax credit scheme; one investment, Investment 8. Sustainable, circular and secure supply of Critical Raw Materials supports research projects aimed at facilitating the recovering and recycling of critical raw materials, in particular waste electrical and electronic equipment, including wind turbine blades and photovoltaic panels; one investment, Investment 10. Pilot projects on skills “Crescere Green”, consists in a pilot training intervention for the development of skills, with a sectoral focus depending on the most required skills by the green transition in the labour market.

(23)The REPowerEU chapter also includes scaled-up measures affecting four measures under components M1C1, Digitalisation, innovation and security in the PA, and M2C2, Renewable energy, hydrogen, grid and sustainable mobility. The scaled-up measures included in the REPowerEU chapter introduce a substantive improvement in the level of ambition of the measures already included in the national RRP.

Commission’s assessment

(24)The Commission has assessed the modified RRP including the REPowerEU chapter against the assessment criteria laid down in Article 19(3) of Regulation 2021/241.

Balanced response contributing to the six pillars

(25)In accordance with Article 19(3), point (a), of and Annex V, criterion 2.1, to Regulation (EU) 2021/241, the modified RRP including the REPowerEU chapter represents to a large extent (Rating A) a comprehensive and adequately balanced response to the economic and social situation, thereby contributing appropriately to all of the six pillars referred to in Article 3 of that Regulation, taking into account the specific challenges faced by and the financial allocation for the Member State concerned.

(26)The Commission considers that the modified RRP submitted by Italy along with the REPowerEU chapter does not impact the previous assessment of the response of the RRP to the six pillars representing to a large extent a comprehensive and adequately balanced response to the economic and social situation as set out in the precedent paragraph, thereby contributing appropriately to all six pillars referred to in Article 3 of the RRF Regulation, taking the specific challenges and the financial allocation of Italy into account.

(27)The various measures of the modified RRP including the REPowerEU chapter represent a comprehensive response with an appropriate overall balance between pillars, with a significant number of components significantly or partially supporting more than one pillar. Italy’s modified RRP continues to focus on six key policy areas: digitisation, innovation, competitiveness and culture; green revolution and ecological transition; infrastructures for sustainable mobility; education and research; inclusion and cohesion, and healthcare. The measures included in the REPowerEU chapter contribute significantly or partially to the above pillars. Particularly, the 5 new reforms and 17 new investments aim at supporting green skills, promoting zero-emission transport, improving electricity and gas transmission and enhancing energy efficiency.

Addressing all or a significant subset of challenges identified in country-specific recommendations

(28)In accordance with Article 19(3), point (b), of and Annex V, criterion 2.2, to Regulation (EU) 2021/241, the modified RRP including the REPowerEU chapter is expected to contribute to effectively addressing all or a significant subset of challenges (Rating A) identified in the relevant country-specific recommendations addressed to Italy, including fiscal aspects thereof, and recommendations made pursuant to Article 6 of Regulation (EU) No 1176/2011, or challenges identified in other relevant documents officially adopted by the Commission in the context of the European Semester.

(29)In particular, the modified RRP including the REPowerEU chapter takes into account country-specific recommendations formally adopted by the Council prior to the assessment of the modified plan by the Commission. As the maximum financial contribution for Italy has been adjusted upwards, all 2022 and 2023 structural recommendations are considered in the overall assessment.

(30)Having assessed progress in the implementation of all relevant country-specific recommendations as part of the 2023 European Semester, the Commission finds that substantial progress has been achieved with respect to the recommendations on tax evasion (2019CSR1.3), on civil justice (2019 CSR 4.1 and 2020CSR4.1) liquidity provision to the real economy (2020 CSR 3.1) and on expansion of public investment for the green and digital transition (2022 CSR 1.2).

(31)The modified RRP including the REPowerEU Chapter includes an extensive set of mutually reinforcing reforms and investments that contribute to effectively addressing all or a significant subset of the economic and social challenges outlined in the country-specific recommendations addressed to Italy by the Council in the context of the European Semester, notably in public administration and administrative capacity (2023CSR2.1), and in the areas of renewable energy and energy infrastructure (2023CSR3.1-3.2-3.3), energy efficiency (2023CSR3.4), sustainable transport (2023CSR3.6) and green skills (2023CSR3.7).

(32)The REPowerEU chapter is expected to contribute to reinforcing the ambition of the RRP as regard to the relevant country-specific recommendations addressed in the field of energy and green transition. It contributes to strengthening distribution transmission and distribution networks, including those related to gas, for example through the scale-up of the measure to increase the resilience of power grid (M2C2-I2.2). The reform aimed to streamlining permitting procedures for renewable energy at central and local level (M7-R1) is expected to contribute to the enhancement of energy security and speed-up of renewable energy production. Moreover, the chapter is expected to reduce energy demand, increase energy efficiency. The reform putting forward the Plan for new skills (M7-R5) complemented by the investment on skills “Crescere Green” (M7-I12) are aimed to creating and strengthening the skills needed for the green transition. The REPowerEU chapter is also expected to contribute to promoting sustainable transport including through, for example, the new reform aimed to reduce the environmental harmful subsidies (M7-R2). Sustainable transport would also benefit from, among the others, the investment expected to strengthen the regional public transport railway fleet with zero emission trains and universal service (M2C2-I4.4.2), the scale-up of the investment on strengthening of the regional public transport railway fleet with zero emission trains and universal service (M2C2.I4.4.2), and the new investment “Grant Scheme for the development of an international, industrial and R&D leadership in electric buses” (M7-I2).

(33)The modified RRP is also expected to contribute to strengthening administrative capacity, both at central and subnational level, with a view at the twin digital and green transitions and the implementation of the RRP, as well as to improve the effectiveness of public administration. For example, the REPowerEU chapter includes the scale up of the measure providing technical assistance and strengthening capacity building for the implementation of the Italian recovery and resilience plan (M1C1-I1.9) complemented by a targeted and more effective revision of the reform of public administration (M1C1-R1.9).

(34)By addressing the aforementioned challenges, the modified RRP is expected to also contribute to correcting the imbalances, as identified in recommendations made pursuant to Article 6 of Regulation (EU) No 1176/2011 in 2019, 2020, 2022 and 2023, that Italy is experiencing, in particular with regard to high public debt and weak competitiveness dynamics in a context of low productivity growth.

Contribution to growth potential, job creation and economic, social and institutional resilience

(35)In accordance with Article 19(3), point (c), of and Annex V, criterion 2.3, to Regulation (EU) 2021/241, the modified RRP including the REPowerEU chapter is expected to have a high impact (Rating A) on strengthening the growth potential, job creation, and economic, social and institutional resilience of Italy, contributing to the implementation of the European Pillar of Social Rights, including through the promotion of policies for children and youth, and on mitigating the economic and social impact of the COVID-19 crisis, thereby enhancing the economic, social and territorial cohesion and convergence within the Union.

(36)In view of reforms and investments put forward as part of the modification of the RRP, the initial positive assessment of the impact of the plan on growth potential, job creation, and territorial and social cohesion is confirmed. The modified RRP including the REPowerEU chapter continues to contribute to economic growth and job creation in Italy and to increasing the capacity of the Italian economy to respond to the social challenges resulting from the energy transition. In this context, the modified plan addresses several vulnerabilities of the economy, including the over-reliance on fossil fuels, an outdated energy transmission and distribution network, especially in rural areas, as well as limited affordability for poor households to improve energy efficiency of buildings. The modified RRP including the REPowerEU chapter also helps boosting the development of green skills relevant for the green transition by supporting green skills, promoting zero-emission transport, improving electricity and gas transmission, reducing reliance on environmentally harmful subsidies and enhancing energy efficiency.

Do no significant harm

(37)In accordance with Article 19(3), point (d), of and Annex V, criterion 2.4, to Regulation (EU) 2021/241, the modified RRP including the REPowerEU chapter is expected to ensure that no measure (Rating A) for the implementation of reforms and investments projects included in this RRP does significant harm to environmental objectives within the meaning of Article 17 of Regulation (EU) 2020/852 of the European Parliament and of the Council 5 (the principle of ‘do no significant harm’).

(38)The modified plan assesses compliance with the ‘do no significant harm’ principle following the methodology set out in the Commission’s technical guidance on the application of ‘do no significant harm’ under the Recovery and Resilience Facility Regulation (2021/C58/01).

(39)Italy submitted an assessment of the principle of ‘do no significant harm’ for each new and revised measure of the modified plan, including the REPowerEU chapter. The information provided shows that the plan is expected to ensure compliance with that principle. In addition, for those measures that require the selection of projects in the future, specific relevant safeguards are introduced in associated milestones and targets for that purpose. The information provided by Italy allows to conclude that the plan is expected to ensure that none of the measures does significant harm to environmental objectives within the meaning of Article 17 of Regulation (EU) 2020/852.

(40)In accordance with Article 21c(6) of Regulation (EU) 2021/241, on the basis of information provided by Italy, the Commission considers that the principle of ‘do no significant harm’ should not apply to two measures that contribute to the objective set out in Article 21c(3), point (a) of that Regulation. This concerns measures M7.I11 “Adriatic Line Phase 1” and M7.I12 “Cross-border gas export infrastructure”. The first measure consists in the construction of the compressor station in Sulmona, approximately 140 km of gas pipeline and the second contributes to the construction of a compressor station in Poggio Renatico, close to the border with Austria. First, the measures are necessary and proportionate to meet immediate security of supply needs, taking into account cleaner feasible alternatives and the risk of lock-in effects, in line with Article 21c(6), point (a) of Regulation (EU) 2021/241. The ‘Adriatic Line Phase 1’ and the compressor station in Poggio Renatico will allow to make full use of existing gas capacities, including liquified natural gas, in Italy and the transmission of additional capacities towards Central Europe. In doing so, the infrastructure will help Italy and neighbouring Member States to diversify their source of gas supply. Without the pipeline, this would not be possible due to bottlenecks in the existing grid, which prevents the injection in the existing network of imported liquified gas and gas imported through the southern entry points. Therefore, the Adriatic Line Phase 1 and the compressor station in Poggio Renatico together contribute to meeting immediate security of supply needs and enabling the diversification of supply in the interest of the Union as a whole. In addition, cleaner alternatives cannot be deployed within a comparable timeline. The risk of lock-in effect is considered mitigated, given the reforms and investments that will favour the green transition included in the plan and in the REPowerEU chapter and the consequent decreasing forecasted demand of gas, as provided by Italian authorities.

(41)Second, for the compressor station in Poggio Renatico Italy has undertaken satisfactory efforts to limit the potential harm to environmental objectives within the meaning of Article 17 of Regulation (EU) 2020/852, where feasible, and to mitigate harm through other measures, including the measures in the REPowerEU, in line with Article 21c(6), point (b) of the Regulation (EU) 2021/241. For ‘Adriatic Line Phase 1’, while an Environmental Impact Assessment already exists, a dedicated milestone related to the implementation of the project has been included to ensure that Italy will: establish the site-specific conservation objectives (SSCOs) for the Natura 2000 sites affected by the project according to the methodology adopted by the Ministry of Environment and Energy Security in 2022 and 2023; verify the appropriate assessments already carried out under the Habitats Directive in the light of the newly established SSCOs; update, if needed, the appropriate assessments (“Valutazione di incidenza ambientale”) already carried out under the Habitats Directive in line with the national guidelines of 28 December 2019 and ensure their integration into the overall environmental impact assessment procedure. Third, the measures do not jeopardise the achievement of the Union’s 2030 climate targets and the objective of EU climate neutrality by 2050, in line with Article 21c(6), point (c) of Regulation (EU) 2021/241. In the medium-to-long term, the Adriatic Line and the compressor station in Poggio Renatico will provide a back-up to stabilise electricity and heat supply, thereby supporting the increase in the use of renewable energy sources. Moreover, the modified RRP including the REPowerEU chapter contains reforms and investments to promote energy efficiency, renewable energy, and sustainable mobility, which are expected to contribute to the achievement of the Union climate target by 2030, on the way to climate neutrality objective by 2050.

(42)Lastly, Italy provided supporting documents showing that the end of the construction works and the technical acceptance of the compressor stations in Sulmona and Poggio Renatico and the pipeline between Sestino and Minerbio should take place in June 2026 and the infrastructure is planned to be in operation by 31 December 2026, in line with Article 21c(6), point (d) of Regulation (EU) 2021/241.

(43)The total estimated cost of the measures subject to a positive assessment under Article 21c (6) of Regulation (EU) 2021/241 is for ‘Adriatic Line Phase 1’ EUR 375,000,000, while the estimated cost of the upgrade of the Poggio Renatico compressor station is EUR 45,000,000. The total estimated cost of these two measures represents 3.8% of the estimated costs of the measures included in the REPowerEU chapter.

(44)As required by Article 21c (8) of Regulation (EU) 2021/241, the revenues made available in accordance with Article 10e(1) of Directive 2003/87/EC should not contribute to reforms and investments subject to the DNSH derogation. For this purpose, the Commission has ensured that the estimated costs of reforms and investments that are not subject to the DNSH derogation correspond at least to the Member State’s allocation of additional non-repayable financial support for REPowerEU based on Article 21a of the RRF Regulation (the ETS revenues).

Contribution to the REPowerEU objectives

(45)In accordance with Article 19(3), point (da), of and Annex V, criterion 2.12, to Regulation (EU) 2021/241, the REPowerEU chapter is expected to effectively contribute to a large extent (Rating A) to energy security, the diversification of the Union’s energy supply, an increase in the uptake of renewables and in energy efficiency, an increase of energy storage capacities or the necessary reduction of dependence on fossil fuels before 2030.

(46)The implementation of the measures included in the REPowerEU chapter are expected to contribute, in particular, to supporting the objectives in Article 21c(3), points (a), (b), (c), (d), (e) and (f), of Regulation (EU) 2021/241.

(47)The implementation of the Investments 13, Adriatic Line Phase 1 (Sulmona compressor station and Sestino-Minerbio gas pipeline), and 14, Cross-border gas export infrastructure, are expected to contribute to the objective set out in Article 21c(3), point (a), of Regulation (EU) 2021/241, that is improving energy infrastructure and facilities to meet immediate security of supply needs for gas, considering that their objective is to streamline permitting procedures for renewable energy at central and local level.

(48)The implementation of the Investment 3, Scale-up measure: Production of Hydrogen in brownfield sites, Investment 4: Tyrrhenian link, Investment 5: SA.CO.I.3, Investment 6: Cross-border electricity interconnection projects between Italy and neighbouring countries, Investment 15: Transizione 5.0, and of Reform 1, Streamlining permitting procedures for renewable energy at central and local level, Reform 3: Reduction of the costs of connection to the gas network of biomethane, and Reform 4: Mitigation of financial risk associated with renewable PPAs, are expected to contribute to the objective set out in Article 21c(3), point (b), of Regulation (EU) 2021/241, boosting energy efficiency in buildings and critical energy infrastructure, decarbonising industry, increasing the production and uptake of sustainable biomethane and of renewable or fossil-free hydrogen, and increasing the share and accelerating the deployment of renewable energy.

(49)The implementation of the Investment 17, Financial instrument for energy renovations of public and social housing and targeting vulnerable households in other residential buildings, is expected to contribute to the objective set out in Article 21c(3), point (c), of Regulation (EU) 2021/241, that is tackling energy poverty. This measure consists of a public investment in a Facility to incentivise private investment and improve access to finance energy renovations in social and public housing and in vulnerable households in other private residential properties, achieving a minimum 30% energy efficiency improvement. The objective of the measure is to support renovation for low-income and vulnerable households.

(50)The implementation of the Investment 1, Scale-up measure: Strengthening smart grids, Investment 15 ‘Transizione 5.0’ supporting the energy transition of production processes towards an energy efficient, sustainable and renewable-based model of production through a tax credit scheme and Investment 16, Support to SMEs for self-production from renewable energy sources, are expected to contribute to the objective set out in Article 21c(3), point (d), of Regulation (EU) 2021/241, that is incentivising reduction of energy demand.

(51)The implementation of the Investment 2, Scale-up measure: Interventions to increase the resilience of power grid, and Investment 7, Smart National Transmission Grid, are expected to contribute to the objectives set out in Article 21c(3), point (e), of Regulation (EU) 2021/241, that is addressing internal and cross-border energy transmission and distribution bottlenecks, supporting electricity storage and accelerating the integration of renewable energy sources.

(52)Reform 2: Reduction of Environmental Harmful Subsidies, Investment 11: Scale-up measure: Strengthening of the regional public transport railway fleet with zero-emission trains and universal service, and Investment 12: Grant Scheme for the development of an international, industrial and R&D leadership in electric buses are expected to support zero-emission transport and its infrastructure, including railways, as set out in Article 21c(3), point (e), of Regulation (EU) 2021/241.

(53)The implementation of the Investments 8, Sustainable, circular and secure supply of Critical Raw Materials, Investment 9, Scale-up measure: provide technical assistance and strengthen capacity building for the implementation of the Italian recovery and resilience plan, and Investment 10, Pilot projects on skills “Crescere Green”, are expected to contribute to the objective set out in Article 21c(3), point (f), of Regulation (EU) 2021/241, that is supporting the objectives set out in Article 21c(3), points (a) to (e) of that Regulation, through an accelerated requalification of the workforce towards green and related digital skills, as well as through support of the value chains in critical raw materials and technologies linked to the green transition.

Measures having a cross-border or multi-country dimension or effect

(54)In accordance with Article 19(3), point (db), of and Annex V, criterion 2.13, to Regulation (EU) 2021/241, the measures included in the REPowerEU chapter are expected to a large extent (Rating A) to have a cross-border or multi-country dimension or effect.

(55)The REPowerEU chapter contributes to securing energy supply in the Union as a whole, including by addressing challenges identified in the Commission’s most recent needs assessment in line with the objectives set out in Article 21c(3) of Regulation (EU) 2021/241 in line with the objectives set out in Article 21c(3) of Regulation (EU) 2021/241, taking into account the financial contribution available to Italy and its geographical position, in line with the objectives set out in Article 21c(3) of that Regulation, taking into account the financial contribution available to Italy concerned and its geographical position and reducing dependency on fossil fuels and to reducing energy demand.

(56)Nine measures included in Italy’s REPowerEU chapter have a cross-border or multi-country dimension or effect. Investment “Sardinian-Corsica-Italy 3”, the cross-border electricity interconnection projects between Italy and neighbouring countries (Austria and Slovenia), and the cross-border gas export infrastructure in Poggio Renatico have a cross-border dimension. Other seven investments aim at improving the capacity of the grid to transport electricity or gas northwards and have therefore a multi-country dimension.

(57)The total costs of these measures account for a total of EUR 1,923,200,000 representing 17% of the estimated costs of the REPowerEU chapter.

(58)Taking into consideration the assessment of all the measures envisaged in the REPowerEU chapter, the measures in the chapter are expected, to a large extent, to have a cross-border or multi-country dimension or effect.

Contribution to the green transition including biodiversity

(59)In accordance with Article 19(3), point (e), of and Annex V, criterion 2.5, to Regulation (EU) 2021/241, the modified RRP including the REPowerEU chapter, contains measures that contribute to a large extent (Rating A) to the green transition, including biodiversity, or to addressing the challenges resulting therefrom. The measures supporting climate objectives account for an amount which represents 39.0% of the RRP’s total allocation and 68.4 % of the total estimated costs of measures in the REPowerEU chapter calculated in accordance with the methodology set out in Annex VI to that Regulation. In accordance with Article 17 of Regulation (EU) 2021/241, the modified RRP including the REPowerEU chapter is consistent with the information included in the National Energy and Climate Plan 2021-2030.

(60)With respect to measures related to the green transition, the modified RRP introduces changes to 26 measures on the basis of Article 21 of Regulation (EU) 2021/241 and correction of clerical errors. Those changes do not affect the contribution to the green transition as the measures support the decarbonisation of industry, deployment of renewable energy and hydrogen, sustainable transport, energy efficiency, water management, circular economy, climate change adaptation and sustainable tourism. The REPowerEU chapter includes 20 measures which aim to secure energy supply in the Union as a whole, including by addressing challenges identified in the Commission’s most recent needs assessment, in line with the objectives set out in Article 21c(3) of Regulation (EU) 2021/241, taking into account the financial contribution available to Italy and its geographical position. Those measures will aim at reducing dependency on fossil fuels and energy demand.

(61)These measures related to the green transition, including biodiversity, in the modified RRP and the REPowerEU chapter have a lasting impact as the measures aim at structural changes to reduce Italy’s overall reliance on fossil fuels and at increasing energy savings by shifting to green technologies, notably those related to renewable energy sources, energy storage, energy efficiency and industrial decarbonisation. As a result, they also contribute to achieving the 2030-2050 targets and the objective of EU Union climate neutrality by 2050.

Contribution to the digital transition

(62)In accordance with Article 19(3), point (f), of and Annex V, criterion 2.6, to Regulation (EU) 2021/241, the modified RRP contains measures that contribute to a large extent (Rating A) to the digital transition or to addressing the challenges resulting from it. The measures supporting digital objectives account for an amount which represents 25.6% of the modified RRP’s total allocation calculated in accordance with the methodology set out in Annex VII to that Regulation.

(63)The REPowerEU chapter is expected to contribute to the digital transition and to addressing the resulting challenges by including measures such as Strengthening Smart Grid and Smart Transmission Grid. The modified RRP entails modifications that reduce the ambition of Mission 1, Mission 3 and Mission 4, thus contributing less than before to the digital objectives. The reduction is however compensated by an increase in ambition in Mission 6. In accordance with Article 21c(5) of Regulation (EU) 2021/241, reforms and investments in the REPowerEU chapter are not to be taken into account when calculating the plan’s total allocation for the purpose of applying the digital target requirement set by that regulation. The contribution to the digital transition of Italy’s modified recovery and resilience plan (excluding the REPowerEU chapter) stand at EUR 46 872 000 000.

Lasting impact

(64)In accordance with Article 19(3), point (g), of and Annex V, criterion 2.7, to Regulation (EU) 2021/241, the modified RRP including the REPowerEU chapter is expected to have a lasting impact on Italy to a large extent (Rating A).

(65)The modified RRP plan does not reduce the ambition of the plan as a whole. It takes into account the prolonged impact of the COVID-19 crisis, inflation and supply chain disruptions, as well as some unexpected legal or technical difficulties or the availability of better alternatives for the implementation of some measures by modifying them in accordance with Article 21(2) of Regulation (EU) 2021/241. The modified RRP increases the ambition of existing measures as a result of the increased financial contribution and includes a REPowerEU chapter. These are expected to have lasting positive effects on the Italian economy and further boost its green and digital transition.

Monitoring and implementation

(66)In accordance with Article 19(3), point (h), of and Annex V, criterion 2.8, to Regulation (EU) 2021/241, the arrangements proposed in the modified RRP including the REPowerEU chapter are adequate (Rating A) to ensure effective monitoring and implementation of the RRP, including the envisaged timetable, milestones and targets, and the related indicators.

(67)The modified RRP submitted by Italy does not amend the multi-level governance system for the implementation and monitoring of the RRP. The arrangements are considered to remain adequate to ensure effective monitoring and implementation of the RRP, including the envisaged timetable, milestones and targets, and the related indicators. The nature and extent of the proposed modifications to Italy’s RRP do not have an impact on the previous assessment of the effective monitoring and implementation of the RRP as positively assessed by the Council Implementing Decision of 19 September 2023. The milestones and targets that accompany the modified measures, including those in the REPowerEU chapter, are clear and realistic and the proposed indicators for those milestones and targets are relevant, acceptable and robust. Milestones and targets are also relevant for measures already completed which are eligible under Article 17(2) of Regulation (EU) 2021/241. The satisfactory fulfilment of these milestones and targets over time is required to justify a disbursement request.

Costing

(68)In accordance with Article 19(3), point (i), of and Annex V, criterion 2.9, to Regulation (EU) 2021/241, the justification provided in the modified RRP including the REPowerEU chapter on the amount of the estimated total costs of the RRP is to a medium extent (Rating B) reasonable and plausible, is in line with the principle of cost efficiency and is commensurate to the expected national economic and social impact.

(69)The amount of the estimated total costs of the modified RRP is in line with the nature and type of the envisaged reforms and investments. As a result, cost estimates for most of the measures in the modified RRP are deemed reasonable and plausible. Italy has provided sufficient information and evidence that the amount of the estimated total costs is not covered by existing or planned Union financing. Finally, the estimated total cost of the modified RRP is in line with the principle of cost-efficiency and commensurate to the expected national economic and social impact. Therefore, a Rating B is warranted for the modified RRP.

Coherence of the RRP

(70)In accordance with Article 19(3), point (k), of and Annex V, criterion 2.11, to Regulation (EU) 2021/241, the modified RRP including the REPowerEU chapter includes to a high extent (Rating A) measures for the implementation of reforms and public investment projects that represent coherent actions.

(71)The modifications to the RRP concern all 6 the existing missions and include an additional mission, the REPowerEU chapter. The modifications made to the existing chapters do not alter the overall coherence of the plan, taking into account the way in which the missions are mutually reinforcing and complementary in particular those related to the green and digital transitions and the newly added REPowerEU chapter. The new investments and reforms including those in the REPowerEU chapter, are complementary to existing measures in the RRP. These new investments and reforms as well as those investments and reforms where the ambition has been increased are mutually reinforcing and complementary.

Any other assessment criteria

(72)The Commission considers that the modifications put forward by Italy do not affect the positive assessment of the RRP set out in the Council Implementing Decision [ST 10160/21; ST 10160/21 ADD 1 REV 2] of 13 July 2021 on the approval of the assessment of the RRP for Italy regarding the relevance, effectiveness, efficiency and coherence of the RRP against the assessment criteria laid down in Article 19(3), points (j) and of Regulation (EU) 2021/241.

Equality

(73)The previous description of the gender equality and equal opportunities for all remains valid. Italy has explained that several measures modified and added to the RRP, including under the REPowerEU chapter, are expected to have a positive impact on socio-economic including and equal opportunities for all.

Consultation process

(74)The modified RRP of Italy includes a summary of the consultation process carried out for its preparation and implementation. In the preparation of the modified plan, Italy carried out targeted consultations on the broad intentions regarding the RRP modifications, including the REPowerEU chapter, with social partners, stakeholders, regional and local authorities and other political groups. In its submission, Italy has provided details on the stakeholders consulted, explained the outcome of this targeted complementary consultation and outlined how the input received from the stakeholders was reflected initially, also for measures in the REPowerEU chapter.

(75)To ensure ownership by the relevant actors, it is crucial to involve all local authorities and stakeholders concerned, including social partners, throughout the implementation of the investments and reforms included in the modified RRP including the REPowerEU chapter”.

Positive assessment

(76)Following the positive assessment of the Commission concerning the modified RRP including the REPowerEU chapter, with the finding that the plan satisfactorily complies with the criteria for assessment set out in Regulation (EU) 2021/241, in accordance with Article 20(2) of and Annex V to that Regulation, the reforms and investment projects necessary for the implementation of the modified RRP including the REPowerEU chapter, the relevant milestones, targets and indicators, and the amount made available from the Union for the implementation of the modified RRP including the REPowerEU chapter in the form of non-repayable financial support should be set out.

Financial contribution

(77)The estimated total costs of the modified RRP including the REPowerEU chapter of Italy is EUR 194 415 951 466. As the amount of the estimated total costs of the modified RRP including the REPowerEU chapter is higher than the updated maximum financial contribution available for Italy, the financial contribution calculated in accordance with Article 11 allocated for Italy's modified RRP including the REPowerEU chapter should be equal to the total amount of the financial contribution available for Italy’s modified RRP including the REPowerEU chapter. This amount is equal to EUR 69 023 756 552.

(78)Pursuant to Article 21a(5) of Regulation (EU) 2021/241, on 7 August 2023 Italy submitted a request for the allocation of the revenue referred to in Article 21a (1) of that Regulation, shared between Member States on the basis of the indicators set out in the methodology in Annex IV to Regulation (EU) 2021/241. The estimated total costs of the measures referred to in Article 21c(3), points (b) to (f) included in the REPowerEU chapter is EUR 10 757 950 000. As this amount is higher than the allocation share available for Italy, the additional non-repayable financial support available for Italy should be equal to the allocation share. This amount is equal to EUR 2 755 867 236.

(79)The total financial contribution available to Italy should be EUR 71 779 623 788.

REPowerEU Pre-financing

(80)Italy has requested the following funding for the implementation of its REPowerEU chapter: EUR 2 755 867 236 from the revenue from the Emissions Trading System under Directive 2003/87/EC of the European Parliament and of the Council.

(81)For those amounts, pursuant to Article 21d of Regulation (EU) 2021/241, on 23 November 2023 Italy has requested pre-financing of 20% of the funding requested. Subject to available resources, that pre-financing should be made available to Italy subject to the entry into force of, and in accordance with, agreement to be concluded been the Commission and Italy pursuant to Article 23(1) of Regulation (EU) 2021/241 (the 'financing agreement').

(82)Council Implementing Decision ST 10160/21; ST 10160/21 ADD 1 REV 2 of 13 July 2021 on the approval of the assessment of the RRP for Italy should therefore be amended accordingly. For the sake of clarity, the Annex to that Implementing Decision should be replaced entirely,

HAS ADOPTED THIS DECISION:

Article 1

Implementing Decision (EU) [ST 10160/21; ST 10160/21 ADD 1 REV 2] 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 modified 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 and the additional milestones and targets related to the payment of the loan, 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, paragraphs 1 and 2 are 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 71 779 623 788 6 That contribution includes:

1.an amount of EUR 47 925 096 762 that shall be available to be legally committed by 31 December 2022;

2.an amount of EUR 21 098 659 790 that shall be available to be legally committed from 1 January 2023 until 31 December 2023;

3.an amount of EUR 2 755 867 236 7 , in accordance with Article 21a(6) of Regulation (EU) 2021/241, exclusively for measures referred to in Article 21c of that Regulation, with the exception of measures referred to in Article 21c (3), point (a);

2. The Union financial contribution shall be made available by the Commission to Italy in instalments in accordance with the Annex to this Decision. An amount of EUR 8 954 466 787 shall be made available as pre-financing in accordance with Article 13 of Regulation (EU) 2021/241.

An amount of EUR 551 173 447 shall be made available as pre-financing in accordance with Article 21d of Regulation (EU) 2021/241. That pre-financing may be disbursed by the Commission in up to two payments.

The pre-financing and instalments may be disbursed by the Commission in one or several tranches. The size of the tranches shall be subject to the availability of funding.”;

Article 2
Addressee

This Decision is addressed to the Italian Republic.

Done at Brussels,

For the Council

The President

(1) OJ L 57, 18.2.2021, p. 17.

(2) ST 10160/21; ST 10160/21 ADD 1 REV 2

(3) This amount corresponds to the financial allocation after deduction of Italy’s proportional share of the expenses of Article 6(2) of Regulation (EU) 2021/241, calculated in accordance with the methodology of Article 11 of that Regulation.

(4) This amount corresponds to the financial allocation after deduction of Italy’s proportional share of the expenses of Article 6(2) of Regulation (EU) 2021/241, calculated in accordance with the methodology of Article 11 of that Regulation.

(5) Regulation (EU) 2020/852 of the European Parliament and of the Council of 18 June 2020 on the establishment of a framework to facilitate sustainable investment, and amending Regulation (EU) 2019/2088 (OJ L 198, 22.6.2020, p. 13).

(6) This amount corresponds to the financial allocation after deduction of the Italy’s proportional share of the expenses of Article 6(2) of Regulation (EU) 2021/241, calculated in accordance with the methodology of Article 11 of that Regulation.

(7) This amount corresponds to the financial allocation after deduction of the Italy’s proportional share of the expenses of Article 6(2) of Regulation (EU) 2021/241, calculated in accordance with the methodology of Article 11 of that Regulation.

Top

EUROPEAN COMMISSION

Brussels, 24.11.2023

COM(2023) 765 final

ANNEX

to the

Proposal for a COUNCIL IMPLEMENTING DECISION

amending Implementing Decision (EU) (ST 10160/21; 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

{SWD(2023) 392 final}

ANNEX

1.Description of Reforms and Investments

A.MISSION 1 COMPONENT 1:

Axis 1 - Digitalization of the Public Administration: Axis 1 of component M1C1 of the Italian recovery and resilience plan contains measures that aim to foster the digitalisation of the Italian public administration and includes seven investments and three reforms. Investments aim in particular at: (i) rationalising and consolidating existing digital infrastructures of the public administration; (ii) fostering the uptake of cloud computing, (iii) with particular attention to the harmonisation and interoperability of platforms and data services, the implementation of the ‘once-only principle’ and the accessibility of data through a catalogue of Application Programming Interfaces (APIs); (iv) improving the availability, efficiency and accessibility of all digital public services with the aim of increasing the level of adoption and users’ satisfaction, (v) strengthening Italy’s defences against the risks posed by cybercrime, (vi) fostering the digital transformation of large central administrations; (vii) tackling the digital divide by strengthening citizens’ digital skills. Reforms under this axis aim in particular at (i) streamlining and accelerating the procurement process for Information and Communication Technologies (ICT) solutions by the public administration; (ii) supporting the digital transformation of the public administration, and (iii) removing obstacles to the adoption of cloud by public administrations and streamlining data exchange processes between public administrations.

The investments and reforms under this component shall contribute to addressing the Country-Specific Recommendations addressed to Italy in 2020 and 2019 on the need to “improve the effectiveness of public administration, including by investing in the skills of public employees, by accelerating digitalisation, and by increasing the efficiency and quality of local public services” (Country-Specific Recommendation 3, 2019), and to “focus investment on the green and digital transition, in particular on […] reinforced digital infrastructure to ensure the provision of essential services” (Country-Specific Recommendation 3, 2020).

Axis 2 - Justice: The performance of the Italian justice system remains far from that of other Member States in terms of duration of proceedings, as outlined in the latest report of the European Commission on the efficiency of justice (CEPEJ). Axis 2 of component M1C1 of the recovery and resilience plan contains measures that aim to make the judicial system more efficient by reducing the length of proceedings and bringing Italy closer to the EU median. This component addresses the Country-specific recommendations addressed to Italy in 2020 and 2019 on reducing the length of civil trials and on improving the effectiveness of the fight against corruption (Country-specific recommendations 4, 2019 and 4, 2020). Furthermore, the digitisation of the justice system is also relevant for the digital transition.

Axis 3 – Public administration: Axis 3 of component M1C1 of the recovery and resilience plan contains measures that aim to reform the Italian public administration and improve administrative capacity. Italy ranks below EU-27 average both for government effectiveness and for trust in government. Italian public administration reforms were affected by a serious implementation gap of top-down reforms and the scarce recognition and diffusion of valuable bottom-up innovations. Administrative capacity is very low. Efforts to strengthen the strategic planning capacity, monitoring and evaluation mechanisms, and evidence-based policymaking instruments should continue. The main objective of this component is to enhance the administrative capacity of the Italian public administrations at central and local levels, both in terms of human capital (selection, competences, and careers) and in terms of simplification of administrative procedures. This section presents the overarching structural human resources strategy, ranging from the selection processes to career paths. The reform includes also actions to simplify procedures. Investments in new digital toolkits and strengthened actions on lifelong learning are included in Component 1 of Mission 1. This component addresses the Country-specific recommendations addressed to Italy in 2020 and 2019 on improving the effectiveness of public administration (Country-specific recommendation 3, 2019 and Country-specific recommendation 4, 2020).

Axis 4 – Public procurement and payments by the administration: Axis 4 of component M1C1 of the recovery and resilience plan contains measures that aim to reform certain key aspects of the Italian public procurement legislative framework and to reduce late payments by public administrations at central, regional and local, as well as regional health authorities. The main objective of the reform is to simplify public procurement rules, increase legal certainty for businesses and accelerate the award of public contracts while maintaining procedural guarantees in terms of transparency and equal treatment. These reforms support therefore the timely realization of the infrastructures and projects financed by the Plan.

Axis 5 – Fiscal-structural reforms (Taxation and public expenditure): Axis 5 of component M1C1 of the recovery and resilience includes several reforms aimed at supporting the sustainability of Italy’s public finances (country-specific recommendation 1, 2019). On the revenue side, the reforms aim at improving the tax collection process, encouraging tax compliance and fight tax evasion, in order to reduce compliance costs for taxpayers and increase revenues for the general government, contributing to improving the sustainability of public finances. On the expenditure side, the reforms aim at improving the efficiency of public expenditure, both at the central level, by strengthening the existing framework for yearly spending reviews, and at the subnational level, by completing the reform of fiscal relations across different levels of government.

A.1. Description of the reforms and investments for non-repayable financial support

Axis 1- Digitalization of the Public Administration

Investment 1.1 - Digital infrastructure

The aim of this investment is to ensure that the systems, datasets and applications of the public administration are hosted in highly reliable data centers, with high quality standards for security, performance, scalability, European interoperability and energy efficiency. For this purpose, the investment envisages the creation of a state of the art, fully-redundant, national cloud-based hybrid infrastructure (called ‘Polo Strategico Nazionale’, PSN), the certification of secure and scalable public cloud alternatives and the migration of the datasets and applications of the public administration to a cloud environment.

The PSN infrastructure is expected to be operated by a technological provider selected through a European tender and to be designed in adherence with the data interoperability standards defined at European level accordingly with Gaia-X initiative to allow the free exchange of non-personal data between the various Member States by interconnecting their national cloud models. Similar requirements are expected to be adopted in the pre-qualification of public cloud providers.

The migration of the datasets and applications of the public administration towards the PSN or towards secure certified public cloud providers is expected to depend on the requirements for performance, scalability and sensitivity of data defined by the different administrations, each of which is expected to retain its independence in the development of applications and the management of data.

Investment 1.3 - Data and interoperability

The objective of this investment is to ensure the full interoperability of key datasets and services across central and local public administrations.

The measure envisages the development of a National Digital Data Platform (“Piattaforma Digitale Nazionale Dati”) that shall guarantee the interoperability of datasets through a catalogue of Application Programming Interfaces (APIs) shared across central and local administrations (Investment 1.3.1). When built, this platform shall guarantee the interoperability of datasets through a catalogue of Application Programming Interfaces (APIs) shared across central and local administrations. The Platform shall be fully compliant with EU law.

In addition, the measure shall establish a “Single Digital Gateway” in compliance with EU Regulation 2018/1724), that shall be run to help central and public administrations restructure prioritized procedures and enable the fulfilment of the “once-only” principle (Investment 1.3.2).

Investment 1.5 - Cybersecurity

The objective of this investment is to strengthen Italy’s defences against the risks posed by cybercrime, notably through the implementation of a ‘National Perimeter for Cyber Security’ (PSNC), in line with the security requirements set out in the Directive (EU) 2016/1148 on security of network and information systems (NIS Directive), and by strengthening national cyber-defence capabilities of technical inspection and risk monitoring.

The measure envisages the development of a state-of-the-art, integrated system, tightly interconnecting different entities across the country and connecting internationally with partners and trusted technology providers. This is articulated on four pillars: (i) Strengthen front line capabilities towards the public and companies/entities to manage alerts and actual publicly recognized events; (ii) Build/strengthen the country’s inspection and audit capabilities of hardware and software used by subjects with essential functions to certify trustworthiness/pre-empt threats; (iii) Power up units of law enforcement and cyber units within the Police forces in charge of investigations of criminal activities; (iv) Strengthen significantly cyber asset and human resources in charge of national security and response to cyber threats.

Investment 1.7 - Basic digital skills

The aim of this investment is to reduce the share of current population at risk of digital exclusion by launching the ‘Digital civil service’ initiative, a network of young volunteers of different backgrounds across Italy to provide individuals at risk of digital exclusion with facilitation and education services for the development and improvement of digital skills (Investment 1.7.1) and by strengthening the existing network of ‘Digital facilitation centers’ (Investment 1.7.2).

Digital facilitation centers are physical access points, usually located in libraries, schools, and social centers, which provide citizens with both in-person and online training regarding digital skills in order to effectively support their digital inclusion. The initiative capitalizes on existing successful experiences and aims at ensuring a widespread development of such centers at national level. While 600 centers are already active, their presence shall be further strengthened through dedicated training activities and new equipment, with the overarching goal to establish 2,400 new access points across Italy and to train over 2 000 000 citizens at risk of digital exclusion. Out of 3 000 centers, about 1 200 shall be concentrated in the South of Italy.

The ‘Digital civil service’ initiative is divided into three years and incrementally, it is intended to achieve the following results: (i) realization of three annual calls for digital civil service projects aimed at non-profit organizations registered in the national register of universal civil service organizations; (ii) capacity building of the non-profit organizations participating in the annual call for the digital civil service and launch of digital facilitation and digital education projects; (iii) training and field experience in digital civil service projects of about 8 300 volunteers; provision of 700 000 digital facilitation and/or digital education initiatives involving citizens developed by the digital civil service projects in which 8 300 volunteers shall work.

Reform 1.1 - ICT Procurement

The objective of this reform is to ensure that the public administration may procure Information and Communication Technologies (ICT) solutions in a more timely and more efficient way by streamlining and accelerating the procurement process for ICT services and assets.

The implementation of the reform shall consist in three lines of actions. First, a single database containing a white list of economic operators authorized to provide goods and services to public administrations shall be set-up and a dedicated technological infrastructure shall be introduced to allow the certification of suppliers. Second, a simplified approach (“fast track”) to streamline ICT purchases for PNRR projects shall be adopted. Third, a digital procurement service shall be set up, with the aim to (i) include only certified suppliers (economic operators may request at any time to be certified in line with art. 64 of Directive 2014/24/EU); (ii) allow to quickly identify suppliers meeting a specified need (e.g. through a configurator); (iii) provide an intuitive user experience for administrations (e.g. clear description of the services offered, comparative evaluation of suppliers). This overall setup shall build on the existing capabilities of CONSIP, the Italian state entity for procurement.

Reform 1.2 - Transformation Support

The objective of this reform is to support the digital transformation of all central and local public administrations through the set-up of a dedicated “Digital PA transformation office”. The transformation office shall consist in a temporary technology competent resource pool that shall orchestrate and support the migration effort and the centralized negotiation of “packages” of certified external support. In addition, the measure envisages the set up a company focused on software development & operations management to support the digital step-up of central administrations. The transformation office shall in particular support public administration in the implementation of Investments 1.1 to 1.7 included under this component and shall also support the implementation of investments and reforms in digitalization of healthcare included in Mission 6.

Reform 1.3 - Cloud First and interoperability

The aim of this reform is to remove the obstacles to cloud adoption and streamline the bureaucracy that slows down the data exchange processes between public administrations by introducing a set of incentives and obligations aimed at facilitating the migration to cloud and removing procedural constraints to the broad adoption of digital services.

The reform shall entail three lines of action. First, as cloud solutions shall drive cost efficiency in spending in Information and communication technology (ICT), after a predefined “grace period” (e.g. three-years after the launch of the transformation), administrations that did not adhere to the cloud transformation shall see a restriction in their ICT spending budget.

Second, as part of the incentives for cloud migration, the current public accounting rules for expenses related to cloud services shall be revised. Given that the migration to the cloud currently involves a transfer of budgets from capital expenditures to operational expenditures, public accounting rules for expenses related to cloud services shall be revised in order to not disincentivize cloud migration for public administrations.

Third, norms related to data interoperability rules shall be revised, in compliance with the provisions on open data and processing of personal data and current procedures for data exchange between public administrations shall be simplified to streamline procedural aspects and speed up the implementation of interoperability between public administration databases. Furthermore, digital domicile shall be reviewed and integrated with the national resident registry (ANPR) to allow certain and secure digital correspondence between citizens and public administrations.

Axis 2 - Justice

Reform 1.4 - Civil justice

The objective of the reform is mainly focused on reducing the length of civil proceedings by identifying a wide range of actions to reduce the number of incoming cases in courts, by simplifying existing procedures, by reducing the backlogs and by increasing the productivity of courts. The reduction of number of incoming cases in courts shall be achieved through strengthening mediation, alternative dispute resolution and arbitration and reviewing the current system of quantification and recoverability of legal fees. The simplification shall be pursued by strengthening ‘filtering procedures’ at the appeal level, extending the cases where a single judge is competent to adjudicate, securing the actual implementation of binding timeframes for procedures. Higher productivity of courts shall be achieved through a monitoring system and incentives to accomplish standard performance across courts. The reform also aims to reduce the backlog in civil courts through the temporary hiring and targeted actions, including incentive schemes to reduce the number of pending cases.

Reform 1.5 - Criminal justice

The reform is mainly aimed at reducing the length of criminal proceedings by identifying a wide range of actions by simplifying existing procedures and by increasing the productivity of courts. The simplification is pursued extending the application of simplified procedures, broadening the use of digital technology, defining time limits for the duration of preliminary investigation, reviewing the notification system to make it more effective. Higher productivity of courts is achieved through a monitoring system and incentives to accomplish standard performance across courts.

Reform 1.6 - Insolvency

The reform is aimed at digitalising and enhance insolvency proceedings introducing early warning mechanisms prior to insolvency, the specialisation of courts and pre-courts institutions to manage all phases of insolvency proceedings more effectively including through training and specialisation for members of the judicial and administrative authorities.

Reform 1.7 - Tax courts

The aim of the reform is to make the enforcement of tax law more effective and to decrease the high amount of appeals at the Court of Cassation.

Reform 1.8 - Digitalisation of the justice system

The reform envisages mandatory electronic filing of all documents and full electronic workflow for civil proceedings. It also targets the digitalisation of the first instance criminal proceedings excluding preliminary hearings. Lastly, it aims to introduce a free, fully accessible and searchable database of civil law decisions according to the legislation.

Investment 1.8 - Recruitment procedures for civil, criminal and administrative courts

Investments are aimed at acting in the near term on organizational factors in order to allow the reforms under development to generate results more quickly, maximising synergies while achieving a transformational change through the extraordinary resources provided under the plan.

The organizational tool, named ‘office of the trial’, consists of the establishment (or where already existing the strengthening) of support teams for the magistrates (through temporary hiring), with the aim of reducing the backlog and the disposition time in Italy.

This measure aims to improve the quality of justice by supporting the magistrates in the normal activities of study, legal research, drafting of acts, organization of the files and thereby enabling the judges to focus on the more complex tasks.

The investments shall also include hiring of technical and administrative personnel supporting the implementation of RRP objectives. The staff of the office of the trial and the technical administrative personnel shall support administrative, civil, criminal Courts and territorial and central services of the Ministry of Justice responsible for the implementation of the RRP. The contracts of the unit of personnel have a duration of 3 years that can be extended until 30 June 2026.

The investment also comprises training to support the digital transition in the justice system.

Axis 3 – Public administration

Reform 1.9 - Public employment reform and simplification reform

Public employment reforms are following a two-staggered approach. In the short-term, urgent measures are adopted to make best use of RRF funding regarding the governance of the plan and the immediate assistance to the public administrations, lacking administrative capacity. This strategy is flanked with organisation reforms and a human resources strategy aimed at a transformational change for the public administration as a whole. A comprehensive set of measures is identified within the definition of human resources strategic plans to: updating job profiles (also in view of the twin transition); reforming hiring procedures to be more targeted and effective; reforming the senior civil service to homogenise appointment procedures across the public administration; strengthening the link between life-long learning and rewarding mechanisms or specific career paths; defining or updating ethics principles of public administrations; strengthening the commitment to gender balance; and reform of horizontal and vertical mobility of staff. The reform includes urgent measures to simplify administrative procedures to the benefit of businesses and citizens, while also ensuring the smooth implementation of the RRP.

The simplification reform shall eliminate authorizations not justified by imperative reasons of general interest, together with the elimination of unnecessary obligations or those that do not use new technologies. In addition, it shall implement the adoption of silent consent mechanism, the introduction of simple communication, and the adoption of uniform regimes shared with Regions and municipalities.

The simplification reform includes the following elements: the interoperability of Business and Construction procedures (SUAP & SUE); the implementation of a common set of outcome-oriented performance indicators; and the definition of a set of Key Performance Indicators (KPIs) to steer organizational change in administrations. The publication of the first report on KPIs shall be followed by the publication of subsequent reports every six months.

A repository system for monitoring the implementation of the RRF shall be in place and operational by the time of the submission of the first payment request.

Reform 1.9.1 - Reform for accelerating the implementation of cohesion policy

The reform aims to accelerating the implementation and efficiency of cohesion policy in complementarity with the NRRP. It shall take into account the strategic plan of the single special economic zone.

The national legislation requires the opinion of the Unified Conference before its conversion into Law as provided for in the Legislative Decree n°281/1997.

In accordance with Article 9 of Regulation (EU) 2021/241, the reform may receive support from other Union Programmes and instruments provided that such support does not cover the same cost. The RRF does not cover any costs of the reform.

Investment 1.9 - Provide technical assistance and strengthen capacity building for the implementation of the Italian recovery and resilience plan

The investment consists of the temporary recruitment of a pool of experts to provide technical assistance to the administrations and strengthen administrative capacity, notably at local level, for the implementation of specific RRP projects, to be deployed on a need basis. This investment also includes the training programmes of public employees within the scope of the strengthening of capacity building.

Axis 4 – Public procurement and payments by public administrations

Reform 1.10 - Reform of the public procurement legislative framework

The first step of this reform consists in the adoption of a first set of urgent simplification measures with a Law-Decree by May 2021 to: simplify and digitalize the procedures of central purchasing bodies; register contracts in the anti-corruption database of the national anti-corruption authority (ANAC); set up dedicated offices in charge of public procurement procedures at Ministries, Regions and Metropolitan Cities; setting a target to reduce the timing between the publication and contract award and between the award of the contract and the completion of the infrastructure; and incentivize alternative dispute resolution mechanisms in the execution phase of the contracts. Before the end of 2021, the Single Coordination Body for public procurement policy shall have an adequate level of staffing and shall adopt a professionalization strategy providing trainings at different levels; the dynamic purchasing systems shall be made available, in line with Public Procurement Directives; and ANAC shall complete the exercise of qualification of contracting authorities.

The second step of this reform consists in a set of amendments to the Public Procurement Code to be implemented by the second quarter of 2023, with actions aimed at: reducing the fragmentation of contracting authorities; requiring the setting of an e-platform as a basic requirement to participate in the nationwide evaluation of procurement capacity; and empowering the national anti-corruption authority to review the qualification of contracting authorities. The scope of the reform shall be also to further simplify and digitalize the procedures of central purchasing bodies and define interoperability and interconnectivity requirements. The reform shall also reduce the restrictions to the possibility to subcontracting, currently contained the Public Procurement Code.

This reform also consists in making the national e-Procurement System operational by the end of 2023 and introduce targeted actions, including through the adoption of primary and/or secondary legislation, to further enhance the qualification and professionalisation of contracting authorities and increase competition (e.g. modifying the applicable rules on project financing).

Reform 1.11 - Reduction of late payments by public administrations and health authorities

The objective of the reform is to reduce late payments, and have zero delays in payments, from the public administration to businesses. The reform includes, as of 2024, the adoption of a structural package with actions both at central and local level, including entry into force of legislation.

This reform consists in ensuring that by 2025 (i) public administrations at central, regional and local level pay within 30 days and (ii) regional health authorities pay within 60 days. To ensure that the problem of late payments is structurally solved, this reform also consists in ensuring that in 2026, (i) public administrations at central, regional and local level continue paying within 30 days and (ii) regional health authorities continue paying within 60 days.

Axis 5 – Fiscal-structural reforms (Taxation and public expenditure)

Reform 1.12 - Reform of the tax administration

Several measures shall be adopted to encourage tax compliance and improve the effectiveness of the targeting of audits and controls, including: (i) the creation of the database and the dedicated IT infrastructure for the release of pre-populated VAT tax return; (ii) improving the quality of the database used for “compliance letters”, also with a view of reducing the incidence of false-positive, gradually increasing the number of communications sent out to taxpayers; (iii) reform of the current legislation in order to ensure effective administrative sanctions in case of refusal of private providers to accept electronic payments; (iv) completion of the process of data pseudonymization and analysis of big data, with a view to increase the effectiveness of the risk analysis underlying the selection process for audits. In order to implement these reforms and strengthen the operational capacity of the Revenue Agency, its staff shall be increased by 4113 units, in line with the Agency’s "Performance Plan 2021-2023". In addition, the government shall undertake a review of possible actions to reduce tax evasion from omitted invoicing in the most exposed sectors, including through targeted incentives to consumers, and will take effective actions based on the findings of the review, with an ambitious commitment to reduce propensity to evade.

Reform 1.13 - Reform of the spending review framework

The plan includes a reform of the spending review framework aimed at improving its effectiveness, including by strengthening the role of the Ministry of Finance and the ex-post evaluation process, and improving the practice of green and gender budgeting. The plan also includes the commitment to undertake, on the basis of the existing legal framework, yearly spending reviews over the 2023-2025 period, to achieve fiscal savings in order to support sustainable public finances and/or to finance growth-enhancing reforms of taxes or public expenditures.

Reform 1.14 - Reform of the subnational fiscal framework

The reform consists in the completion of the “Fiscal federalism” as provided for by the delegation law 42/2009, with the aim to improve the transparency of fiscal relations across the different levels of government, assign resources to subnational governments based on objective criteria and encourage spending efficiency at the subnational level. In particular, the reform shall define the relevant parameters and implement the fiscal federalism for regions with ordinary status, provinces and metropolitan cities.

Reform 1.15 - Reform of public accounting rules

The reform aims at closing the gap with European accounting standards by implementing a single accrual accounting system for the public sector. The reform shall lead to the completion of the conceptual framework as reference for the accrual accounting system according to the qualitative features defined by Eurostat, the set of accrual accounting standards and the multidimensional chart of accounts. The reform shall be complemented by the first round of training for the transition to the new accrual accounting system for representatives of 18,000 public entities.

Investment 1.10 - Support to qualification and eProcurement

This investment shall, within the framework of the Public Buyers Professionalization Strategy, set up a procurement support function dedicated to contracting authorities to fulfil the requirements of Annex II.4 of the Public Procurement Code and to support them in the eProcurement process, backing up the acquisition of digital skills and providing technical support in the adoption of the digitalization of public procurement, including the use of dynamic purchasing systems.

A.2. Milestones, targets, indicators, and timetable for monitoring and implementation for non-repayable financial support

Sequential Number	Related Measure (Reform or Investment)	Milestone / Target	Name	Qualitative indicators (for milestones)	Quantitative indicators (for targets)			Indicative timeline for completion		Description of each milestone and target
					Unit of measure	Baseline	Goal	Quarter	Year
M1C1-1	Reform 1.1: ICT Procurement	Milestone	Entry into force of law decrees for reform 1.1 ‘ICT Procurement’	Provision in the law indicating the entry into force of law decree for ICT procurement reform	N/A	N/A	N/A	Q4	2021	The necessary legal acts shall include legislative interventions in the simplifications law decree (‘Decreto Legge Semplificazioni’). These shall stipulate: (i) The possibility of using procedure referred to in Article 48, paragraph 3, of the Public Contracts Code also for contracts above the thresholds referred to in Article 35 of the Public Contracts Code for purchases relating to the purchase of computer goods and services, in particular based on cloud technology, as well as connectivity services, financed in whole or in part with the resources provided for the implementation of PNRR projects; (ii) Interoperability between the various databases managed by the certifying bodies involved in the process of verifying the requirements referred to in Article 80 of the Public Contracts Code; (iii) The establishment of a virtual file of economic operators in which are present the data for the verification of the absence of reasons for exclusion referred to in Article 80, enabling the definition of a white list of economic operators for whom the verification has already been carried out.
M1C1-2	Reform 1.3: Cloud First and Interoperability	Milestone	Entry into force of law decrees for reform 1.3 ‘Cloud First and Interoperability’	Provision in the law indicating the entry into force of law decree for cloud first and interoperability reform	N/A	N/A	N/A	Q4	2021	The necessary legal acts shall include: Implementing regulatory acts concerning in particular (i) the Agenzia per l'Italia digitale (AgID) regulation on Polo Strategico Nazionale (PSN) (provided for in art.33-septies of Law Decree 179/212) and (ii) AgID Guidelines on interoperability (provided for in articles 50 and 50 ter of the Codice dell'Amministrazione Digitale (CAD). Amendments to art. 50 of the CAD: (i) abolition of the obligation to enter into framework agreements for administrations accessing the national digital data platform; (ii) clarifications on the issue of privacy: the transfer of data from one information system to another does not change the ownership of the data and processing, without prejudice to the responsibilities of the public administrations that receive and process the data as autonomous data controllers. Amendments to Decreto del Presidente della Repubblica (DPR) 445/2000 regarding access to data: (i) repeal of the authorization required for direct access to data; (ii) removal of reference to framework agreements in art. 72. Amendments to art. 33-septies of Law Decree 179/2012: (i) introduce the possibility for AgID to regulate with the Centri Elaborazione Dati (CED) and Cloud Regulations the terms and methods with which public administrations must carry out CED migrations; (ii) introduce sanctions for failure to comply with obligations to migrate to the cloud.
M1C1-3	Investment 1.1: Digital infrastructure	Milestone	Completion of the Polo Strategico Nazionale (PSN)	Cloud deployment report, by Ministry for Technological Innovation and Digital Transition (MITD)	N/A	N/A	N/A	Q4	2022	The full completion of the overall project shall be reached when all the targeted public administrations have completed the moving of identified racks towards the Polo Strategico Nazionale (PSN) and the testing of four data centers is successfully completed, which allows the start of the migration process of the datasets and applications of targeted public administrations towards the PSN.
M1C1-4	Investment 1.3.1: National Digital Data Platform	Milestone	National Digital Data Platform operational	Report by Ministry for Technological Innovation and Digital Transition (MITD) demonstrating the launch of the National Digital Data platform	N/A	N/A	N/A	Q4	2022	The platform shall allow the agencies to: - publish their Application Programming Interfaces (APIs) on the Platform's API Catalogue; - establish and sign digital interoperability agreements via the Platform; - authenticate and authorize APIs access using the Platform's functionalities; - validate and assess the compliance with the national interoperability framework.
M1C1-5	Investment 1.5: Cybersecurity	Milestone	Creation of the new National Cyber Security Agency	Administrative constitution act	N/A	N/A	N/A	Q4	2022	The milestone shall be achieved with (1) the conversion into law of the Law Decree constituting the National Cyber Security Agency, currently under finalization; (2) the publication in the Official Gazette of the Prime Ministerial Decree (Decreto del Presidente del Consiglio dei Ministri, DPCM) containing the internal regulation of the National Cyber Security Agency.
M1C1-6	Investment 1.5: Cybersecurity	Milestone	Initial deployment of the national cybersecurity services	Report demonstrating the full architecture of the national cybersecurity services	N/A	N/A	N/A	Q4	2022	The milestone shall be achieved with the definition of the detailed architecture of the whole ecosystem of the national cybersecurity architecture (that is, a national Information Sharing and Analysis Center (ISAC), a network of Computer emergency response teams (CERTs), a national HyperSOC, the High Performance Computing integrated with the Artificial Intelligence/Machine Learning (AI/ML) tools to analyse national level cybersecurity incidents).
M1C1-7	Investment 1.5: Cybersecurity	Milestone	Startup of the network of cybersecurity screening and certification laboratories	Documentation provided demonstrating the identified processes and procedures to be shared among labs and reporting provided demonstrating the activation of at least one lab	N/A	N/A	N/A	Q4	2022	The milestone shall be achieved with the: (i) Identification by the National Cybersecurity Agency of where the screening and certification laboratories and centers will be created, the experts’ profiles to be recruited, the full definition of processes and procedures to be shared among labs. (ii) Activation of one lab. The activities created to the constitution and activation of the scrutiny labs shall be supervised by Ministero dello Sviluppo Economico (MISE) with the CVCN (National cybersecurity screening and certification laboratory) and integrated with the Evaluation Center (CV) by the Ministry of Interior and the Ministry of Defence.
M1C1-8	Investment 1.5: Cybersecurity	Milestone	Activation of a Central Audit Unit for PSNC & NIS security measures	Reporting provided demonstrating the launch of the Central Audit Unit	N/A	N/A	N/A	Q4	2022	An internal unit shall be appointed within the National Cybersecurity Agency, with the mandate for performing the activities of the Central Audit Unit that will account for the PSNC & NIS Security measures. The processes, logistics and operation arrangements shall be formalized into adequate documentation with specific focus on the operating processes, i.e. rules of engagement, auditing and reporting procedures. The IT tools shall gather, manage and analyse the audit data and shall be developed and used by the Audit Unit. Documentation reporting the completion of the development of the tools shall be provided.
M1C1-9	Investment 1.5: Cybersecurity	Target	Support to the upgrade of security structures T1	N/A	Number	0	5	Q4	2022	At least five strengthening interventions upgrading security structures completed in the National Security Perimeter for Cyber (PSNC) and Network and Information Systems (NIS) sectors. Intervention types include upgrades to Security Operating Centers (SOCs), Cyber boundary defence improvements and Internal monitoring and control capabilities. Interventions shall focus on Healthcare, Energy and Environmental (Drinking Water Supply) sectors.
M1C1-10	Reform 1.2: Transformation support	Milestone	Entry into force of the setup of Transformation Team and NewCo	Provision in the legal act indicating the entry into force of legal act to create the Transformation Office and entry into force of legal act to create the NewCo	N/A	N/A	N/A	Q4	2022	For the setup of the Transformation office, the necessary legal acts shall include: -The Publication of the Law Decree “reclutamento” (already approved by the Council of Ministers n. 22 of June 4th 2021 and published on the Official Journal (“Gazzetta Ufficiale”) on June 10th 2021); -The publication of a call for expression of interest; -The selection and conferment of the assignment to the experts (on a temporary basis for the duration of the RRF). For the NewCo, the key steps required shall include: -Legislative authorization; -Decreto del Presidente del Consiglio dei Ministri (DPCM) authorizing the establishment of the company and setting the objectives, share capital, duration and directors to the company; -Institution of the company with notarial deed; -Acts required to make the company operational - articles of association and various regulations.
M1C1-11	Investment 1.6.6: Digitization of the Finance Police	Target	Finance Police - Purchase of professional data science services T1	N/A	Number	0	5	Q1	2023	Purchase of professional data science services by contracting with a consulting service provider involving five human resources in total responsible both for designing the data architecture and for writing the algorithms of the Big Data Analysis unit. Publication of awarded contract for the purchase of data science services 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 and release on a nationwide scale of new tools on the first analysis module (IT backbone).
M1C1-12	Investment 1.3.2:Single Digital Gateway	Target	Single Digital Gateway	N/A	Number	0	19	Q4	2023	The 19 prioritized administrative procedures applicable in Italy out of the 21 defined in EU Regulation 2018/1724 are fully compliant with the requirements defined in Article 6 of the EU Regulation 2018/1724. More specifically: (a) the identification of users, the provision of information and supporting evidence, signature and final submission shall all be carried out electronically at a distance, through a service channel which enables users to fulfil the requirements related to the procedure in a user-friendly and structured way; (b) users shall be provided with an automatic acknowledgement of receipt, unless the output of the procedure is delivered immediately; (c) the output of the procedure shall be delivered electronically, or where necessary to comply with applicable Union or national law, delivered by physical means; (d) users shall be provided with an electronic notification of completion of the procedure.
M1C1-13	Investment 1.4.6: Mobility as a Service for Italy	Milestone	Mobility as a Service solutions M1	Report by Ministero delle Infrastrutture e della Mobilità Sostenibili (MIMS) in collaboration with universities describing the implementation and assessing the results of the three pilot projects	N/A	N/A	N/A	Q4	2023	Three pilot projects aimed at testing Mobility as a Service solutions in technologically advanced metropolitan cities have been implemented. Each solution has been used by at least 1 000 users during the pilot period. Each pilot project shall be open to a minimum of 1000 users, who shall be able to access it on a voluntary basis and at their own expense and give the individual assessment, with the possibility to choose and purchase mobility services among those available on the platform. The MaaS service, through a single technological platform, shall suggest to the citizen-user the best travel solution based on his needs, exploiting the integration between the different mobility options available (local public transport, sharing, cab, car rental) to optimize the travel experience both in terms of planning (intermodal route planner and real-time information on times and distances), and in terms of utilization (booking and payment of services).
M1C1-14bis	Reform 1.9.1: Reform for accelerating the implementation of cohesion policy	Milestone	Entry into force of the national legislation for accelerating the implementation of cohesion policy	Provision in the law indicating the entry into force of the national legislation for accelerating the implementation of cohesion policy	N/A	N/A	N/A	Q1	2024	Entry into force of national legislation that identifies, within the framework of the Partnership Agreement and for all the current Programmes, the arrangements necessary to accelerate and improve the implementation of cohesion policy. In order to ensure the institutional dialogue and cooperation, as well as a shared understanding of the necessary actions, by 31 December 2023, the Government shall set up a technical working group with the managing authorities of all regional and national programmes within the Cabina di regia PNRR, without prejudice to national legislation on the Unified Conference. The legislation shall set out the arrangements necessary to prioritise interventions in the following strategic sectors, in strict coherence with the planning documents defined for the relevant enabling conditions and to concretely implement them, including intervening specifically to strengthen administrative capacity, in these sectors: - Water; - infrastructures for hydrogeological risk and environmental protection; - Waste; - Transport and sustainable mobility; - Energy; - Support to business development and attractiveness, also for the digital and green transitions.
M1C1-15	Investment 1.6.6: Digitization of the Finance Police	Target	Finance Police - Purchase of professional data science services T2	N/A	Number	5	10	Q1	2024	Purchase of professional data science services, 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 by contracting with a consulting service provider involving five additional human resources (ten in total) responsible both for designing the data architecture and for writing the algorithms of the Big Data Analysis unit. Publication of awarded contract for the purchase of data science services 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 and release on a nationwide scale of new tools on the first analysis module (IT backbone).
M1C1-17	Investment 1.1: Digital infrastructure	Target	Migration to the Polo Strategico Nazionale T1	N/A	Number	0	100	Q3	2024	At least 100 Central Public Administrations and Local Healthcare Authorities (Aziende Sanitarie Locali) shall fully migrate at least one service of the administration (systems, dataset and applications included) to the infrastructure (Polo Strategico Nazionale). Fully migrated can imply for each institution a mix of: not-cloud-ready in pure hosting, lift-and-shift migrations, upgrade to Infrastructure-as-a-Service (IaaS), Platform-as-a-Service (Paas) or Software-as-a-Service (SaaS). The migration to the Polo Strategico Nazionale can be executed in different ways according to the state of art of on-premise software’s IT architecture owned by each migrating public administration. These strategies can vary from pure hosting and lift-and-shift migrations for not-cloud-ready software to a migration to IaaS, PaaS or SaaS for cloud-ready software. The PSN shall offer to each migrating public administration all of the migration strategies that are eligible to consider the target “migration to the Polo Strategico Nazionale” achieved. Total public administrations "in scope" include: • Central Public Administrations accounting for the largest share of Information and Communication Technologies (ICT) spending (such as National Institute of Social Security and Ministry of Justice); • Central Public Administrations hosting data in outdated data centers as per survey recently run on "cloud readiness"; • Local Healthcare Authorities (Aziende Sanitarie Locali) primarily located in Central and Southern Italy lacking adequate infrastructure to ensure data security.
M1C1-18	Investment 1.3.1: National Digital Data Platform	Target	APIs in National Digital Data Platform T1	N/A	Number	0	400	Q4	2024	This target consists of reaching at least 400 Application Programming Interfaces (APIs) implemented by the agencies, published in the API catalogue and integrated with the National Digital Data Platform. The APIs in scope have already been mapped. The published APIs shall impact the following areas: (i) At the end of 31 December 2023: priority social security services and fiscal compliance, including core national registries (such as Population Registry and Public Administration Registry); (ii) At the end of 31 December 2024: remaining social security services and fiscal compliance. Each API implementation and documentation shall comply with the national interoperability standards and support the National Digital Data Platform framework; the aforementioned platform shall provide functionalities to assess that compliance.
M1C1-19	Investment 1.5: Cybersecurity	Target	Support to the upgrade of security structures T2	N/A	Number	5	50	Q4	2024	At least 50 strengthening interventions completed in the National Security Perimeter for Cyber (PSNC) and Network and Information Systems (NIS) sectors. Intervention types include, for example, Security Operating Centers (SOCs), Cyber boundary defence improvements and Internal monitoring and control capabilities in compliance with NIS and PSNC requirements. Interventions in the NIS sectors shall pose particular focus on Healthcare, Energy and Environmental (Drinking Water Supply and waste management) sectors.
M1C1-20	Investment 1.5: Cybersecurity	Milestone	Full deployment of national cybersecurity services	Report demonstrating the complete activation of the national cybersecurity services	N/A	N/A	N/A	Q4	2024	This milestone shall be completed with the activation of the sectorial Computer emergency response teams (CERTs), their interconnection with the Italian Computer Security Incident Response Team (CSIRT) and the Information Sharing and Analysis Center (ISAC), the integration of at least 5 Security Operating Centers (SOCs) with the national HyperSOC, the full operation of the cybersecurity risk management services, including those for supply chain analysis and cyber risk insurance services.
M1C1-21	Investment 1.5: Cybersecurity	Milestone	Completion of the network of cybersecurity screening and certification laboratories, Evaluation Centers	Reporting provided, demonstrating the full activation of at least 10 laboratories and of 2 Evaluation Centers (CV)	N/A	N/A	N/A	Q4	2024	Activation of at least 10 screening and certification laboratories and of 2 Evaluation Centers (CV).
M1C1-22	Investment 1.5: Cybersecurity	Milestone	Full operation of the Central Audit Unit for PSNC & NIS security measures with at least 30 inspections completed	Reporting provided, Inspection reports	N/A	N/A	N/A	Q4	2024	Full operation of the Central Auditing Unit with at least 30 inspections completed.
M1C1-23	Investment 1.4.6: Mobility as a Service for Italy	Milestone	Mobility as a Service solutions M2	Pilot results assessed by Ministero delle Infrastrutture e della Mobilità Sostenibili (MIMS) in collaboration with universities	N/A	N/A	N/A	Q1	2025	The milestone refers to the implementation of the second wave of seven pilot projects aimed at testing Mobility as a Service solutions in ‘follower’ areas. Municipalities are expected to capitalize on the experience of digital-ready metropolitan cities selected under the first wave. 40% of pilot projects shall be located in the South.
M1C1-24	Investment 1.7.1: Digital Civil Service	Target	Citizens participating in digital education and/or facilitation initiatives provided by organizations registered in the national register of universal civil service organizations	N/A	Number	0	700 000	Q4	2025	At least 700 000 digital education and/or facilitation initiatives involving citizens provided by organizations registered in the national register of universal civil service organizations.
M1C1-25	Investment 1.6.6: Digitization of the Finance Police	Milestone	Evolve the operational information systems in use for fighting economic crime	IT systems improvement in terms of new functionalities, performance and user experience	N/A	N/A	N/A	Q2	2025	Progressive release (on a year basis) of new functionalities of the operational information systems in order to ensure their topicality in accordance with rapidly changing law scenarios, also related to pandemic situation.
M1C1-26	Investment 1.1: Digital infrastructure	Target	Migration to the Polo Strategico Nazionale T2	N/A	Number	100	280	Q2	2026	At least 280 Central Public Administrations and Local Healthcare Authorities (Aziende Sanitarie Locali) migrated to “Polo Strategico Nazionale” according to the migration plan as approved by the Department for Digital Transformation. The migration to the Polo Strategico Nazionale can be executed in different ways according to the state of art of on-premise software’s IT architecture owned by each migrating public administration. These strategies can vary from pure hosting and lift-and-shift migrations for not-cloud-ready software to a migration to Infrastructure-as-a-Service (IaaS), Platform-as-a-Service (PaaS) or Software-as-a-Service (SaaS) for cloud-ready software. At least 40% of the migrated services shall be implemented through either IaaS, PaaS or SaaS solutions. The PSN shall offer to each migrating public administration all of the migration strategies that are eligible to consider the target “migration to the Polo Strategico Nazionale” achieved. Total public administrations “in scope” include: • Central Public Administrations accounting for the largest share of Information and Communication Technologies (ICT) spending (such as National Institute of Social Security, Ministry of Justice); • Central Public Administrations hosting data in outdated data centers as per survey recently run on “cloud readiness”; • Local Healthcare Authorities (Aziende Sanitarie Locali) primarily located in Central and Southern Italy lacking adequate infrastructure to ensure data security.
M1C1-27	Investment 1.3.1: National Digital Data Platform	Target	APIs in National Digital Data Platform T2	N/A	Number	400	1 000	Q2	2026	This target consists of reaching at least an additional 600 Application Programming Interfaces (APIs) published in the catalogue (for a total of 1 000). The published APIs shall impact the following areas: (i) by 31 December 2025: public procedures such as recruitment, retirement, school and university enrolment (such as National Student Registry and Car License Registry); (ii) by 30 June 2026: welfare, procurement service management, national information system for medical data and sanitary emergencies – such as patients and Physicians' Registries. Each API implementation and documentation shall comply with the national interoperability standards and support the National Digital Data Platform framework; the aforementioned platform shall provide functionalities to assess that compliance.
M1C1-28	Investment 1.7.2: Network of digital facilitation services	Target	Number of citizens participating in new digital education and/or facilitation initiatives provided by digital facilitation centres	N/A	Number	0	2 000 000	Q2	2026	At least 2 000 000 citizens participating in digital education and/or facilitation initiatives provided by digital facilitation centres. The training activities considered to achieve the target are as follows: a) personalized one-to-one digital education and/or facilitation initiatives provided through digital facilitation methods, typically carried out on the basis of the service booking and recorded in the monitoring system; b) face-to-face and online digital education and/or facilitation initiatives aimed at developing citizens' digital skills, carried out synchronously by the digital facilitation centers and recorded in the monitoring system; c) online digital education and/or facilitation initiatives aimed at developing citizens' digital skills, also in self-learning and asynchronous mode but necessarily with registration reported in the monitoring system carried out as part of the training catalogue prepared by the network of digital facilitation services and accessible from the knowledge management system implemented.
M1C1-29	Reform 1.4: Reform of the civil justice	Milestone	Entry into force of enabling legislation for the civil Justice reform	Provision in the law indicating the entry into force of the enabling legislation	N/A	N/A	N/A	Q4	2021	Enabling legislation shall include at least the following measures: i) Introduction of simplified procedure at first instance/trial level and strengthening the application of 'filtering procedures’ at appeal level, including the extended use of simplified procedures and the range of cases where a single judge is competent to adjudicate; ii) secure the actual implementation of binding timeframes for procedures and a calendar for gathering of evidence and filing electronically any relevant act and document; iii) reform the use of mediation and alternative dispute resolution together with assisted mediation, arbitration and any other possible alternative to make these institutes more effective in deflating pressure on the civil justice system, including through incentives; iv) reform the procedure for forced execution to reduce the existing average time including making the enforcement of amounts declared due faster and less expensive; reform the current system of quantification and recoverability of legal fees to reduce frivolous litigations ; v) introduce a monitoring system at Court level and increase the productivity of civil courts through incentives to ensure reasonable length of proceedings and uniform performances across courts.
M1C1-30	Reform 1.5: Reform of criminal justice	Milestone	Entry into force of enabling legislation for criminal justice reform	Provision in the law indicating the entry into force of the enabling legislation	N/A	N/A	N/A	Q4	2021	Enabling legislation which shall include at least the following measures: i) a reviewed notification system, ii) a broader use of simplified procedures, iii) a broader use of electronic filing of documents, iv) simplified rules on evidence, v) the definition of time limits for the duration of preliminary investigation and measures to avoid stagnation in the investigative phase, vi) extension of the possibility to extinguish the crime if damages have been repaid, vii) introduction of a monitoring system at Court level and increase the productivity of criminal courts through incentives to ensure reasonable length of proceedings and uniform performances across courts.
M1C1-31	Reform 1.6: Reform of insolvency framework	Milestone	Entry into force of enabling legislation for insolvency reform framework	Provision in the law indicating the entry into force of the enabling legislation	N/A	N/A	N/A	Q4	2021	The insolvency reform shall include at least the following measures: i) review out-of-court settlement arrangements to identify areas in which further improvements may be necessary in order to incentivise the concerned parties to make enhanced use of such proceedings; ii) put in place early warning mechanisms and access to information prior to the insolvency phase; iii) shift towards specialisation of courts (commercial law, insolvency division/chamber) as well as pre-court institutions to manage insolvency proceedings in insolvency; iv) allow secured creditors to be paid first (before tax claims and employee claims); v) allow businesses to grant a non-possessory security right. As complement to the reform of insolvency, training and specialisation for members of the judicial and administrative authorities dealing with procedures concerning restructuring shall be ensured, as well as the overall digitalisation of restructuring and insolvency proceedings and the creation of an online platform for the out-of-court resolution of disputes, particularly in the pre-insolvency phase, the use of which shall be incentivised to reduce the burden of the judiciary (pre-insolvency restructuring applications, promoting multilateral restructurings and allowing for pre-approved automated restructuring procedures and resolutions for low value cases) shall be ensured. Such an online platform shall also ensure interoperability with banks’ IT systems, as well as other public authorities and databases, so as to ensure a swift, electronic exchange of documentation and data between debtors and creditors. To this purpose, the applicant (the debtor) would give consent to exchange their personal data in compliance with GDPR and this provision should be included in the law. The reform shall set up a collateral registry.
M1C1-32	Investment 1.8: Recruitment procedures for civil, criminal and administrative courts	Milestone	Entry into force of special legislation governing National Recovery and Resilience Plan recruitment	Provision in the law indicating the entry into force of the special legislation governing National Recovery and Resilience Plan recruitment	N/A	N/A	N/A	Q4	2021	Approve special legislation governing National Recovery and Resilience Plan recruitment with authorisation to advertise and recruit.
M1C1-33	Investment 1.8: Recruitment procedures for administrative courts	Target	Start of the recruitment procedures for administrative courts	N/A	Number	0	168	Q2	2022	Start the recruitment procedures of at least 168 units of personnel for the Trial office and Administrative Courts and place units into service. The baseline shall be the number of personnel in service on 31 December 2021.
M1C1-34	Investment 1.8: Recruitment procedures for the office of trial for civil and criminal Courts	Target	Start of the recruitment procedures for civil and criminal courts	N/A	Number	0	8 764	Q4	2022	Start the recruitment procedures of at least 8 764 units of personnel for the office of trial for civil and criminal Courts and place units into service. The baseline shall be the number of personnel at the end of 2021.
M1C1-35	Reform 1.7: Reform of tax courts	Milestone	Comprehensive reform of tax courts of first and second instance	Provision in the law indicating the entry into force of the revised legal framework	N/A	N/A	N/A	Q4	2022	The revised legal framework shall make the enforcement of tax law more effective and decrease the high amount of appeals at the Court of Cassation.
M1C1-36	Reforms 1.4, 1.5 and 1.6: Reform of civil and criminal justice and insolvency reform	Milestone	Entry into force of delegated acts for the civil and criminal justice reforms and of the insolvency reform	Provision in the delegated acts indicating the entry into force of the delegated acts	N/A	N/A	N/A	Q4	2022	Entry into force of all delegated acts whose contents are indicated in the enabling legislation for the civil and criminal justice reforms and for the insolvency reform.
M1C1-37	Reforms 1.4 and 1.5: Reform of civil and criminal justice	Milestone	Entry into force of the civil and criminal justice reform	Provision in the secondary acts indicating the entry into force of the secondary acts	N/A	N/A	N/A	Q2	2023	Complete the adoption of all regulations and secondary sources of legislation necessary for the effective application of the enabling laws for justice reforms.
M1C1-38	Reform 1.8: Digitalisation of Justice	Milestone	Digitalisation of the justice system	Provision in the primary and secondary acts indicating the entry into force of the corresponding acts	N/A	N/A	N/A	Q4	2023	The mandatory electronic filing of all documents and full electronic workflow for civil proceedings shall be established. First instance criminal proceedings digitalised (excluding preliminary hearing office). Creation of a free, fully accessible and searchable database of civil decision according to the legislation.
M1C1-39	Investment 1.8: Recruitment procedures for civil and criminal courts	Target	Conclusion of the recruitment procedures for civil and criminal courts and territorial and central services of the Ministry of Justice responsible for the implementation of the RRP	N/A	Number	0	10 000	Q2	2024	Complete the recruitment or the extension procedures of at least 10 000 units of personnel for the office of trial and the technical administrative personnel and place them in service. The baseline shall be the number of personnel at the end of 2021.
M1C1-40	Investment 1.8: Recruitment procedures for administrative courts	Target	Conclusion of recruitment procedures for administrative courts	N/A	Number	168	326	Q2	2024	Complete the recruitment procedures of at least 326 units of personnel for the Trial office and Administrative Courts and place units into service. The baseline shall be the number of personnel at Q2 of 2022.
M1C1-41	Investment 1.8: Recruitment procedures for administrative courts	Target	Reduction of backlog cases for Administrative Regional Courts	N/A	Percentage	100	75	Q2	2024	Reduce by 25% the number of pending cases in 2019 (109 029) in Administrative Regional Courts (administrative courts of first instance).
M1C1-42	Investment 1.8: Recruitment procedures for administrative courts	Target	Reduction of backlog cases for the Council of State	N/A	Percentage	100	65	Q2	2024	Reduce by 35% the number of pending cases in 2019 (24 010) at the Council of State (second instance).
M1C1-43	Reform 1.4: Reform of civil justice	Target	Reduction of backlog cases for Civil Ordinary Courts (first instance)	N/A	Percentage	100	5	Q4	2024	Reduce by 95% the number of pending cases in 2019 (337 740) in the Civil Ordinary Courts (first instance). The baseline shall be the number of cases pending for more than three years in front of the Civil Ordinary courts (in 2019).
M1C1-44	Reform 1.4: Reform of civil justice	Target	Reduction of backlog cases for the Civil Court of Appeal (second instance)	N/A	Percentage	100	5	Q4	2024	Reduce by 95% the number of pending cases in 2019 (98 371) in the Civil Courts of Appeal (second instance). The baseline shall be the number of cases pending for more than two years in front the Civil Courts of Appeal (in 2019).
M1C1-37bis	Reform 1.4: Reform of civil justice	Milestone	Entry into force of measures aimed at reducing backlog	Provision in the law indicating the entry into force of primary legislation and secondary acts to reduce backlog				Q1	2024	Entry into force of primary legislation and secondary sources of legislation to allow for the: I.Strengthening of the trial offices, including by means of incentives, to attract and retain the units of personnel hired on the basis of the recruitment scheme for the National Recovery and Resilience Plan; II.Creation of incentives to: (1) support less efficient courts in reducing the civil justice backlog; (2) to reward judicial offices that achieve the specific annual objectives of reducing the number of pending cases in the civil justice system.
M1C1-45	Reforms 1.4 and 1.5: Reform of civil and criminal justice	Target	Reduction in the length of civil proceedings	N/A	Percentage	100	60	Q2	2026	Reduce the disposition time by 40% of all instances of civil and commercial litigious cases compared to 2019
M1C1-46	Reforms 1.4 and 1.5: Reform of civil and criminal justice	Target	Reduction in the length of criminal proceedings	N/A	Percentage	100	75	Q2	2026	Reduce the disposition time by 25% of all instances of criminal cases compared to 2019
M1C1-47	Reform 1.4: Reform of civil justice	Target	Reduction of backlog cases for the Civil Ordinary Courts (first instance)	N/A	Percentage	100	10	Q2	2026	Reduce by 90% the number of pending cases that had been opened between 1 January 2017 and 31 December 2022 and that were still open as of 31 December 2022 (1 197 786) in the Civil Ordinary Courts (first instance).
M1C1-48	Reform 1.4: Reform of civil justice	Target	Reduction of backlog cases for the Civil Court of Appeal (second instance)	N/A	Percentage	100	10	Q2	2026	Reduce by 90% the number of pending cases that had been opened between 1 January 2018 and 31 December 2022 and that were still open as of 31 December 2022 (179 306) in the Civil Courts of Appeal (second instance).
M1C1-49	Investment 1.8: Recruitment procedures for administrative courts	Target	Reduction of backlog cases for Administrative Regional Courts (first instance)	N/A	Percentage	100	30	Q2	2026	Reduce by 70% the number of pending cases (109 029) in 2019 in Administrative Regional Courts (administrative court of first instance).
M1C1-50	Investment 1.8: Recruitment procedures for administrative courts	Target	Reduction of backlog cases for the Council of State	N/A	Percentage	100	30	Q2	2026	Reduce by 70% the number of pending cases (24 010) in 2019 in the Council of State (second instance).
M1C1-51	Reform 1.9: Reform of the public administration	Milestone	Entry into force of primary legislation on the governance of the Italian recovery and resilience plan	Provision in the law indicating the entry into force of the law	N/A	N/A	N/A	Q2	2021	The primary legislation shall concern, as a minimum: 1) Coordination and monitoring of the Italian recovery and resilience plan projects at central level; 2) Definition and separation of competences and endorsement of the relevant mandates of the different bodies and administrations involved in the coordination, monitoring and implementation of the Italian recovery and resilience plan; 3) Definition of a system for the early detection of implementation issues; 4) Ex-ante definition of an enforcement mechanism to solve implementation issues and avoid delays, in particular vis-à-vis the different levels of administrations; 5) Definition of the staff (number and expertise) dedicated to the coordination, monitoring and implementation of the Italian recovery and resilience plan in the administrations involved; 6) The definition of technical assistance provided to the administrations involved in Italian recovery and resilience plan implementation, notably at the local level, ensuring the build-up of administrative capacity within the public administration; 7) A delineation of “fast-track” procedures for the implementation of the Italian recovery and resilience plan and the timely absorption of funds; 8) Audit and control organization and procedures for the Italian recovery and resilience plan.
M1C1-52	Reform 1.9: Reform of the public administration	Milestone	Entry into force of primary legislation on simplification of administrative procedures for the implementation of the Italian recovery and resilience plan.	Provision in the law indicating the entry into force of the law	N/A	N/A	N/A	Q2	2021	The measures shall include: 1) the removal of critical bottlenecks concerning in particular the state and regional Environmental Impact Evaluation, the authorization of new waste recycling plants, the authorization procedures for renewable energy and those necessary to achieve energy efficiency of buildings (so called Super Bonus) and urban regeneration. Specific actions shall be devoted to simplifying procedures within the ‘Conferenza di servizi’ (a formal agreement amongst two or more public administrations.
M1C1-53	Investment 1.9: Provide technical assistance and strengthen capacity building for the implementation of the Italian recovery and resilience plan	Milestone	Entry into force of primary legislation to provide technical assistance and strengthen capacity building for the implementation of the Italian recovery and resilience plan	Provision in the law indicating the entry into force of the law	N/A	N/A	N/A	Q2	2021	Measures shall include the provision to allow for the temporary recruitment of: i) 2 800 technical figures to strengthen the public administrations of the South paid by the national budget; ii) a pool of 1 000 experts to be deployed for three years to support administrations in the management of the new procedures providing technical assistance.
M1C1-54	Investment 1.9: Provide technical assistance and strengthen capacity building for the implementation of the Italian recovery and resilience plan	Target	Completed recruitment of experts for the implementation of the Italian recovery and resilience plan	N/A	Number	0	1 000	Q4	2021	Complete the recruitment procedures of the pool of 1 000 experts to be deployed for three years to support administrations in the management of the new procedures providing technical assistance.
M1C1-55	Reform 1.9: Reform of the public administration	Milestone	Extending the methodology applied to the Italian recovery and resilience plan to national budget to increase absorption of investment	Provision in the law indicating the entry into force of the extension of the methodology	N/A	N/A	N/A	Q4	2021	Set up a simplified system of milestones and targets similar to the RRF for the planning, execution and financing of projects under the Complementary Investment Fund (EUR 30,5 billion).
M1C1-56	Reform 1.9: Reform of the public administration	Milestone	Entry into force of the enabling legislation for the reform of public employment	Provision in the law indicating the entry into force of the law	N/A	N/A	N/A	Q2	2022	The enabling legislation shall include the following measures: - define job profiles specific for the public sector to attract the competences and skills needed; - creation of a single recruiting platform to centralise public hiring procedures for all central public administrations, with a commitment to extend the use of the platform also to local administrations; - reform of the recruitment process to: i) move from a purely knowledge-based system to a system primarily based on competences and appropriate aptitudes; ii) assess competences to be performing civil servants; iii) differentiate the recruitment processes between entry-level recruitment, which shall be purely competence-based, and the recruitment of specialised profiles, which should combine competences with relevant work experience and would lead to accessing the career at a higher level. The Ministry for Public Administration shall ensure the consistent implementation of the new process across the administrations; - reform of the senior civil service to homogenise appointment procedures across the public administration, defining the job profiles and the evaluation of their performance; - strengthen the link between life-long learning and training opportunities for employees and incentives to participation, for example by envisaging rewarding mechanisms or specific career paths, with a particular attention to the twin transitions; - define or update ethics principles of public administrations through clear rules, codes of conduct, and training modules on the topic; - strengthen the commitment to gender balance; - overhaul the regulatory framework on vertical mobility, reforming the career paths to create and access middle management positions (“quadri”), and access senior civil positions (“dirigenti di prima e seconda fascia”) from within the administration. This includes the reform of the performance evaluation system, and the strengthening of the link between career progression and performance evaluation; - overhaul the regulatory framework on horizontal mobility to achieve an efficient job market in public administrations including (a) the creation of a transparent single advertisement system for all vacant positions across the central and local administrations (b) the possibility to apply for any available position anywhere, (c) the abolition of the authorisation to mobility from the administration of origin, and (d) the introduction of significant restrictions to the use of alternative means of mobility not leading to transfers (i.e. “comandi” and “distacchi”), to make them exceptional and strictly time-limited.
M1C1-57	Reform 1.9: Reform of the public administration	Milestone	Entry into force of administrative procedures for the simplification reform aimed at implementing the RRF	Provision in the law indicating the entry into force of the secondary legislation	N/A	N/A	N/A	Q4	2022	Entry into force of all related delegated acts, ministerial decrees. secondary legislation, and all other regulations necessary for the effective implementation of the simplification including agreements with Regions in case of exclusive and concurrent regional competence.
M1C1-58	Reform 1.9: Reform of the public administration	Milestone	Entry into force of legal acts for the reform of public employment	Provision indicating the entry into force of the legal acts for the reform of public employment	N/A	N/A	N/A	Q2	2023	Entry into force of all related delegated acts, ministerial decrees, secondary legislation, and all other regulations necessary for the effective implementation of the reform.
M1C1-59	Reform 1.9: Reform of the public administration	Milestone	Entry into force of strategic human resource management in the Public Administration	Provision indicating the entry into force of the legislation for the introduction of strategic human resource management in the Public Administration	N/A	N/A	N/A	Q4	2023	The legislation and delegated acts for the introduction of strategic human resource management in the Public Administration shall include: the definition, in the context of the Integrated Activity and Organisation Plan (PIAO), of HR strategic plans, for recruitment, career development and training, for all central and regional administrations, supported by an integrated database with skills and profiles; creation of a central Delivery Unit coordinating and supporting the Human Resource planning system. In a second phase, HR strategic plans shall be extended to municipalities, while small and medium municipalities are the object of specific capacity building investments.
M1C1- 59 BIS	Reform 1.9: Reform of the public administration	Milestone	Implementation of strategic human resource management in the Public Administration	Publication of the first semi-annual report on KPIs.	N/A	N/A	N/A	Q2	2024	The first semi-annual report on KPIs shall be published.
M1C1-60	Reform 1.9: Reform of the public administration	Milestone	Complete implementation (including all delegated acts) of the simplification and/or digitalization of a set of 200 critical procedures affecting citizens and business	Entry into force of secondary legislation	N/A	N/A	N/A	Q4	2024	Priority areas identified for simplification are: 1.Environmental authorizations, renewables and green economy 2.Construction authorizations and urban requalification 3.Digital infrastructures 4.Business procedures Further critical sectors are: 1.Labour legislation and social security 2.Tourism 3.Agri-food State and regional procedures being selected may be summarised under the following major areas: 1.Environmental and energy authorizations: -State environmental impact assessment procedure -Regional environmental impact assessment procedure -Environmental remediation authorizations -Strategic Environmental Assessment -Integrated Pollution Prevention and Control (IPPC) -Authorization procedures for renewables -Repowering, revamping and reblading procedures -Authorization procedures for energy infrastructures -Waste-related authorizations 2.Construction and urban requalification: -Energy saving and energy use rationalisation procedures (conformity procedures etc.) - Service conference 3.Digital infrastructures: -Authorizations for communication infrastructures 4.Business procedures: -Procedures in the retail sector -Business and Construction procedures (SUAP and SUE) -Procedures for craft activities 5.Other procedures: -Certification of silent consent -Substitute power -Fire prevention procedures -Special Economic Zones authorizations -Public security authorizations -Landscape authorizations -Pharmaceutical and health authorizations -Seismic and hydrogeological procedures/authorizations
M1C1-61	Reform 1.9: Reform of the public administration	Milestone	Completion of the implementation (including all delegated acts) of the simplification and/or digitalization of an additional set of 50 critical procedures directly affecting citizens	Entry into force of secondary legislation	N/A	N/A	N/A	Q2	2025	Simplified procedures shall affect the following areas: -Registry and civil status -Identity, digital domicile and access to online services -Disability
M1C1-62	Reform 1.9: Reform of the public administration	Milestone	Increase absorption of investment	Publication of an implementation report by the Ministry of finance	N/A	N/A	N/A	Q2	2025	Publish an implementation report to measure the impact of the actions aimed at providing technical assistance and capacity building, improve the capacity to plan, manage and execute capital expenditure funded through the national budget achieve a significant absorption of resources of the Complementary Fund allocated until 2024.
M1C1-63	Reform 1.9: Reform of the public administration	Milestone	Complete the simplification and create a repository of all simplified procedures and corresponding administrative regimes with full legal validity throughout the national territory	Publication of the repository on the website of the relevant line ministry	N/A	N/A	N/A	Q2	2026	Screening of procedural regimes shall be completed for all simplified procedures. Also the verification and monitoring of: 1.The effective implementation of the simplified procedures, 2.new standardized forms, and 3.corresponding digitised management shall be ensured. The simplification shall apply to a total 600 critical procedures, including those covered by milestones M1C1 60 and M1C1 61.
M1C1-64	Investment 1.9: Provide technical assistance and strengthen capacity building for the implementation of the Italian recovery and resilience plan	Target	Education and training	N/A	Number	0	350 000	Q2	2026	At least 350 000 public employees of central public administrations enrolled in upskilling or reskilling initiatives.
M1C1-65	Investment 1.9: Provide technical assistance and strengthen capacity building for the implementation of the Italian recovery and resilience plan	Target	Education and training	N/A	Number	0	400 000	Q2	2026	At least 400 000 public employees of other public administrations enrolled in upskilling or reskilling initiatives.
M1C1-66	Investment 1.9: Provide technical assistance and strengthen capacity building for the implementation of the Italian recovery and resilience plan	Target	Education and training	N/A	Number	0	245 000	Q2	2026	At least 245 000 (70%) public employees of central public administrations successfully completed training initiatives as referred to in M1C1-64 (formal certification or impact assessment).
M1C1-67	Investment 1.9: Provide technical assistance and strengthen capacity building for the implementation of the Italian recovery and resilience plan	Target	Education and training	N/A	Number	0	280 000	Q2	2026	At least 280 000 (70%) public employees of other public administrations successfully completed training initiatives as referred to in M1C1-65 (formal certification or impact assessment).
M1C1-68	Reform 1.9: Reform of the public administration	Milestone	Repository system for Audit and Controls: information for monitoring implementation of RRF	Audit report confirming repository system functionalities	N/A	N/A	N/A	Q4	2021	A repository system for monitoring the implementation of the RRF shall be in place and operational. The system shall include, as a minimum, the following functionalities: (a) collect data and monitor the achievement of milestones and targets; (b) collect, store and ensure access to the data required by Article 22(2)(d)(i) to (iii) of the RRF Regulation.
M1C1-69	Reform 1.10: Reform of the public procurement legislative framework	Milestone	Entry into force of the Decree on simplification of the public procurement system	Provision in the law indicating the entry into force of the law-decree to simplify the public procurement system.	N/A	N/A	N/A	Q2	2021	The Law-decree shall simplify the public procurement system with at least the following urgent measures: i. Sets up targets to reduce the time between the publication and the contract award. ii. Sets up targets and a monitoring system to reduce the time between the contract award and the completion of the infrastructure (“fase esecutiva”). iii. Requires that the data of all contracts is registered in the anti-corruption database of the national anti-corruption authority (ANAC). iv. Implement and incentivize the alternative dispute resolution mechanisms in the execution phase of public contracts. v. Sets up dedicated offices in charge of public procurement procedures at Ministries, Regions and Metropolitan Cities. Further specifications: - Simplification and digitalization of the procedures of central purchasing bodies (“centrali di committenza”); - Implement articles 41 and 44 of the current Public Procurement Code; - Define how procedures should be digitalized for all public contracts and concessions and define interoperability and interconnectivity requirements; - Implement article 44 of the current Public Procurement Code.0
M1C1-70	Reform 1.10: Reform of the public procurement legislative framework	Milestone	Entry into force of the revision of the Code of Public procurement (D.Lgs. n. 50/2016)	Provision in the law indicating the entry into force of the Law of Delegation which reforms the present Code of the Public procurement system (D.Lgs. n. 50/2016)	N/A	N/A	N/A	Q2	2022	This Law shall establish all the precise criteria and principles for the systemic reform of the Public Procurement Code. The law of delegation shall, at least, dictate the following principles and criteria to: i. Reduce the fragmentation of contracting authorities (1) establishing the basic elements of the qualification system, (2) requiring the setting of an e-platform as a basic requirement to participate in the nationwide evaluation of procurement capacity (3) empowering the national anti-corruption authority (ANAC) to review the qualification of contracting authorities in terms of procurement capacity (types and volumes of purchases), (4) providing incentives to use existing professional central purchasing bodies. ii. Simplify and digitalize the procedures of central purchasing bodies (“centrali di committenza”) iii. Define how procedures shall be digitalized for all public contracts and concessions and define interoperability and interconnectivity requirements. iv. Reduce restrictions concerning sub-contracting on a progressive basis.
M1C1-71	Reform 1.10: Reform of the public procurement legislative framework	Milestone	Entry into force of all necessary legislation, regulations and implementing acts (including secondary legislation) for the public procurement system	Entry into force of all necessary legislation regulation and implementing acts	N/A	N/A	N/A	Q4	2021	All necessary legislation, regulations and implementing acts (including secondary legislation, if necessary) shall obtain the following results: i. The Single Coordination Body for public procurement policy shall have an adequate (to be specified in the Operational Arrangement) level of staffing and financial resources to be fully operational, also due to the support given by a dedicated structure of ANAC. ii. The Single Coordination Body for public procurement policy adopts the professionalization strategy (cf. linked to Italy’s NRPP proposed reform 2.1.6) containing the types of training at different levels, the special tutoring and the production of operational guidelines, with support of ANAC and the National School of Administration. iii. The dynamic purchasing systems are made available by Consip and are in line with Public Procurement Directives. iv. ANAC completes the exercise of qualification of contracting authorities in terms of procurement capacity further to the implementation of Article 38 of the Public Procurement Code. v. The monitoring system for the time between the contract award and the completion of infrastructure works is operational. vi. Data of all contracts is registered in the anti-corruption database of the national anti-corruption authority (ANAC). vii. All dedicated offices in charge of public procurement procedures at Ministries, Regions and Metropolitan Cities.
M1C1-72	Reform 1.11: Reduction of late payments by public administrations and health authorities	Milestone	Measures to reduce late payments from the public administration to businesses are approved	Provision in the law indicating the entry into force of rules to reduce late payments from the PA to businesses	N/A	N/A	N/A	Q1	2023	Entry into force of new rules to reduce late payments from the public administration to businesses. The measures shall include, at least, the following key elements: i. The System InIT shall be deployed in the central public administration in order to support economic and financial accounting and the execution of public expenditure. ii. Late payments: the indicators based on the database of the MoF IT system (Commercial Credit Platform - PCC) shall be the weighted average payment time of public authorities to businesses and the weighted average payment delay of public authorities to businesses for each of the following levels of public administration: -central authorities (Amministrazioni dello Stato, enti pubblici nazionali e altri enti) -regional authorities (Regioni and Province Autonome), -local authorities (enti locali) -public health authorities (enti del Servizio sanitario nazionale).
M1C1-72bis	Reform 1.11: Reduction of late payments by public administrations and health authorities	Milestone	Legislative and specific actions to reduce late payments at central/local levels	Provision in the law indicating the entry into force of primary legislation and adoption of measures to reduce late payments from the PA to businesses	N/A	N/A	N/A	Q1	2024	The following legislative and specific actions shall enter into force: - guidelines clarifying the scope of commercial and non-commercial transactions in line with the Late Payments Directive; - guidelines clarifying the scope of Article 4(6) of the Late Payments Directive in line with the latter; - legislation to ensure that local and regional authorities receive funds to face their invoices on time from the central level; - legislation to require public authorities to adopt yearly cash-flow plans ensuring the respect of the legal payment deadlines; - internal audit and control capabilities of Ministries and Regions to monitor the situation of invoices that are not paid on time. The following specific actions shall be taken at the: Central level: - Take action to ensure that the Ministries and central administrations that Italian Authorities shall identify by the end of 2023 as structurally late payers individually pay within the 30 days limits (such us Ministry of Agriculture, Justice, Defence, Home Affairs, Infrastructure); - Publication by these Ministries of their stock of arrears updated quarterly; - Strengthening of task forces where existing, and setting up of task forces where not activated yet; providing for a more automatic activation of task forces in the case of structurally late payers. The following specific actions shall be taken at the local level: - Take action to ensure that the local administrations that the Italian authorities shall identify as structurally late payers (such us Communes of Naples, Lecce and Salerno) by the end of [2023] pay within the 30 days limits; - Publication by these authorities of their stock of arrears updated quarterly.
M1C1-72ter	Reform 1.11: Reduction of late payments by public administrations and health authorities	Milestone	Increase human resources dealing with late payments	Provision indicating the entry into force of legislation to increase human resources dealing with late payments	N/A	N/A	N/A	Q4	2024	Entry into force of legislation providing for the increase of human resources dealing with payments in: - Ministries and central administrations depending on the specific organizational needs of the involved central administration; - local administration administrations depending on the specific organizational needs of the involved local administration.
M1C1-72quater	Reform 1.11: Reduction of late payments by public administrations and health authorities	Milestone	Introduce credit assignment to third parties	Provision in the law indicating the entry into force of primary legislation.	N/A	N/A	N/A	Q4	2024	Entry into force of legislation ntroducing provisions to allow the credit assignment to third parties after 30 days of silence/inaction by the public administration
M1C1-72quinquies	Reform 1.11: Reduction of late payments by public administrations and health authorities	Milestone	Execution of payments in InIT database	InIT database is operational for the execution of payments.	N/A	N/A	N/A	Q4	2024	The InIT database is fully operational featuring the following capabilities: -It allows execution of the payments without relying on the interoperability with the old platforms for processing payments. -It ensures that payment delays are controllable by the audit and control functions of the Ministries and by the Italian Court of Auditor.
M1C1-72sixies	Reform 1.11: Reduction of late payments by public administrations and health authorities	Milestone	Horizontal measures to reduce late payments from the PA to businesses	Platform is operational	N/A	N/A	N/A	Q1	2024	A dedicated platform information about commercial credits for creditor companies and debtor public administrations shall be operational. The platform shall provide at least the following: -information for companies (creditors) on the legal framework for credits towards the Public Administration, the rights of a creditor company, the legal steps that can be taken in case of delays in receiving a payment, the functioning of the suppliers’ payment mechanism, the contact point for creditor companies. -Information for public administrations (debtors) on legal requirements for the payment of commercial debts, administrative guidance, monitoring tools available to the public administration and possible best practices to improve payment performance. -All Ministry websites shall have a link to this platform.
M1C1-73	Reform 1.10: Reform of the public procurement legislative framework	Milestone	Entry into force of the reform of the Public Procurement Code	Provision in the law indicating the entry into force of the Legislative-Decree to implement all the previsions of the delegation Law on the Reform of Public Procurement Code.	N/A	N/A	N/A	Q1	2023	Entry into force of the Legislative-Decree to implement all the previsions of the delegation Law to reform the Public Procurement Code.
M1C1-74	Reform 1.10: Reform of the public procurement legislative framework	Milestone	Entry into force of all necessary implementing measures and secondary legislation for the reform on simplification of the public procurement code	Entry into force of all necessary implementing measures and secondary legislation	N/A	N/A	N/A	Q2	2023	Entry into force of all necessary implementing measures and secondary legislation for the reform/simplification of the public procurement system (also stemming from the revision of the Public Procurement Code).
M1C1-73bis	Reform 1.10: Reform of the public procurement legislative framework	Milestone	Adoption of guidelines on the implementation of the qualification system for contracting authorities.	Adoption of guidelines on the implementation of the qualification system for contracting authorities Procurement Code.	N/A	N/A	N/A	Q2	2024	Adoption, having consulted ANAC, of a circular providing guidelines to systematize current applicable rules and explain that qualification also for below thresholds awards is still possible and advisable and to incentivize the use of (qualified) central purchasing bodies, where qualification is not present or not possible (art. 62, par. 6 lett. a) of the D.lgs 36/2023)
M1C1-73ter	Reform 1.10: Reform of the public procurement legislative framework	Milestone	Incentives to qualification and professionalisation of contracting authorities.	Adoption of implementing measures and provision in the law indicating the entry into force of legislation.	N/A	N/A	N/A	Q4	2024	Assessment by the Cabina di Regia ex art. 221 of the Public Procurement Code, having consulted ANAC, of the impact of the implementation of the Code of Public Procurement on: -the number of qualified contracting authorities and centralized purchasing bodies; -the number and value of the public contracts managed by them on their own behalf and on behalf of non-qualified entities; -the impact of the system in terms of timing of contract award and completion of public contracts. Publication of the results of the mapping of the participation by non-qualified entities to capacity building activities. Further initiatives aimed at incentivising the qualification of contracting authorities, the reduction in fragmentation and the professionalisation of non-qualified entities, shall be adopted, having consulted ANAC. Further instruments for technical/administrative support to local or non-qualified contracting authorities, where centralization is not available or feasible, shall be adopted and be operational.
M1C1-73quater	Reform 1.10: Reform of the public procurement legislative framework	Milestone	Entry into force of guidelines on below-EU threshold procurement	Entry into force of guidelines on below-EU threshold procurement	N/A	N/A	N/A	Q4	2023	Circular on below-EU threshold procurement adopted and published on the Italian Official Journal. The circular shall clarify that contracting authorities can use open and restricted procedures for below-EU threshold procurement.
M1C1-73quinquies	Reform 1.10: Reform of the public procurement legislative framework	Milestone	Entry into force of new legal provisions on project financing	Provision in the law indicating the entry into force of new legal provisions	N/A	N/A	N/A	Q4	2024	Entry into force of new legal provisions on project financing aimed at enhancing efficiency and competition, in particular to increase contestability of concessions.
M1C1-75	Reform 1.10: Reform of the public procurement legislative framework	Target	Full operation of the National eProcurement System	Availability of the functions defined in the feasibility study (to be elaborated as project Task 1)	N/A	N/A	N/A	Q4	2023	The National eProcurement System shall be operational and fully in line with EU Public Procurement Directives and include the full digitalization of procedures up to the contract execution (smart procurement), shall be interoperable with the management systems of the public administration, shall contain a digital habilitation of PO, auction sessions, machine learning to detect trends, CRMs with chatbots, digital engagement and status chain.
M1C1-75bis	Investment 1.10: Support to Qualification and eProcurement	Milestone	Support to Qualification and eProcurement	Entry into service of the procurement support function	N/A	N/A	N/A	Q4	2024	A procurement support function shall be set up within the framework of the Public Buyers Professionalization Strategy. The procurement support function shall be dedicated to contracting authorities to fulfil the requirements of Annex II.4 of the Public Procurement Code and to support them in the eProcurement process, backing up the acquisition of digital skills and providing technical support in the adoption of the digitalization of public procurement, including the use of dynamic purchasing systems.
M1C1-76	Reform 1.11: Reduction of late payments by public administrations and health authorities	Target	Average number of days for the central public administrations to pay businesses is reduced	N/A	Weighted average payment time	N/A	30	Q1	2025	Based on the Commercial Credit Platform (PCC), the weighted average payment time (“tempo di pagamento”) of central public authorities (Amministrazioni dello Stato, enti pubblici nazionali e altri enti) to businesses shall be below or equal to 30 days.
M1C1-77	Reform 1.11: Reduction of late payments by public administrations and health authorities	Target	Average number of days for the regional public administrations to pay businesses is reduced	N/A	Weighted average payment time (in days)	N/A	30	Q1	2025	Based on the Commercial Credit Platform (PCC), the weighted average payment time (“tempo di pagamento”) of regional public authorities (Regioni and Province Autonome) to businesses shall be below or equal to 30 days.
M1C1-78	Reform 1.11: Reduction of late payments by public administrations and health authorities	Target	Average number of days for the local public administrations to pay businesses is reduced	N/A	Weighted average payment time (in days)	N/A	30	Q1	2025	Based on the Commercial Credit Platform (PCC), the weighted average payment time (“tempo di pagamento”) of local public authorities (enti locali) to businesses shall be below or equal to 30 days.
M1C1-79	Reform 1.11: Reduction of late payments by public administrations and health authorities	Target	Average number of days for the public health administrations to pay businesses is reduced	N/A	Weighted average payment time (in days)	N/A	60	Q1	2025	Based on the Commercial Credit Platform (PCC), the weighted average payment time (“tempo di pagamento”) of public health authorities (enti del Servizio sanitario nazionale) to businesses shall be below or equal to 60 days.
M1C1-80	Reform 1.11: Reduction of late payments by public administrations and health authorities	Target	Average number of days of delay for the central public administrations to pay businesses is reduced	N/A	Weighted average payment delay (in days)	N/A	0	Q1	2025	Based on the Commercial Credit Platform (PCC), the weighted average payment delay (“tempo di ritardo”) of central authorities (Amministrazioni dello Stato, enti pubblici nazionali e altri enti) to businesses shall be at most 0 days
M1C1-81	Reform 1.11: Reduction of late payments by public administrations and health authorities	Target	Average number of days of delay for the regional public administrations to pay businesses is reduced	N/A	Weighted average payment delay (in days)	N/A	0	Q1	2025	Based on the Commercial Credit Platform (PCC), the weighted average payment delay (“tempo di ritardo”) of regional authorities (Regioni and Province Autonome) to businesses shall be at most 0 days.
M1C1-82	Reform 1.11: Reduction of late payments by public administrations and health authorities	Target	Average number of days of delay for the local public administrations to pay businesses is reduced	N/A	Weighted average payment delay (in days)	N/A	0	Q1	2025	Based on the Commercial Credit Platform (PCC), the weighted average payment delay (“tempo di ritardo”) of local authorities (enti locali) to businesses shall be at most 0 days.
M1C1-83	Reform 1.11: Reduction of late payments by public administrations and health authorities	Target	Average number of days of delay for the health public administrations to pay businesses is reduced	N/A	Weighted average payment delay (in days)	N/A	0	Q1	2025	Based on the Commercial Credit Platform (PCC), the weighted average payment delay (“tempo di ritardo”) of public health authorities (enti del Servizio sanitario nazionale) to businesses shall be at most 0 days.
M1C1-84	Reform 1.10: Reform of the public procurement legislative framework	Target	Average time between the publication and the contract award	N/A	Number	139	100	Q4	2023	Based on the methods adopted by the EU Official Journal (TED database), using data from IT National database for public contracts (BDNCP), managed by ANAC, the average time between the deadline for the submission of tenders and the contract award shall be reduced to less than 100 days for contracts above the thresholds of the EU public procurement directives.
M1C1-84bis	Reform 1.10: Reform of the public procurement legislative framework	Milestone	Measures to improve decision speed in contract award of contracting authorities	Adoption of implementing measures	N/A	N/A	N/A	Q4	2024	In order to improve the decision speed in contract award and to accelerate the process triggered with the reform of the Public Procurement Code through the digitalisation of procurement and the professionalisation of contracting authorities, the Cabina di regia, ex art. 221 of the Code of Public Contracts, having consulted ANAC, carries out: -analysis on impact of the eProcurement on timing of contract award up to the conclusion of the contract; -assessment on the decision speed state of the art; - monitoring on contracting authorities best practices aimed at shortening contract award times; -analysis on legislative framework aimed to identify any critical issue in contract award procedures and, based on the analysis, suggestion of initiatives finalized to reduce the decision speed time. ANAC, starting from the 2024 data, shall annually monitor the average decision speed of contracting authorities, based on the powers attributed to it by article 222 of the Public Procurement Code. Contracting authorities whose average decision-making speed is greater than 160 days in TED shall be required to participate in the qualification and professionalization exercise.
M1C1-85	Reform 1.10: Reform of the public procurement legislative framework	Target	Average time between the contract award and the realization of the infrastructure	N/A	Percentage	100	90	Q4	2023	The average time between the contract award and the realization of the infrastructure (‘fase esecutiva’) shall be reduced at least by 10%.
M1C1-86	Reform 1.10: Reform of the public procurement legislative framework	Target	Civil servants trained through the Public Buyers Professionalization Strategy	N/A	Percentage	0	20	Q4	2023	At least 20% of civil servants have been trained through the Public Buyers Professionalization Strategy This takes into account the total number of civil servants actively involved in public procurement, i.e. 100 000 public buyers registered as of 30 April 2021 to the National e-Procurement System managed by Consip on behalf of the MEF.
M1C1-87	Reform 1.10: Reform of the public procurement legislative framework	Target	Contracting authorities using dynamic purchasing systems	N/A	Percentage	0	15	Q4	2023	At least 15% of contracting authorities are using dynamic purchasing systems as per EU Directive 2014/24 (two years observation timeframe and taking into account that in Italy the use of the DPS is mainly targeted at above the threshold purchases, given that the below-the-threshold ones are mainly performed using eMarketplaces). The target refers to Central Government Contracting Authorities (250 PA as registered per 30 April 2021 to the National e-Procurement System managed by Consip on behalf of the MEF).
M1C1-88	Reform 1.11: Reduction of late payments by public administrations and health authorities	Target	Average number of days for the central public administrations to pay businesses is reduced	N/A	Weighted average payment time	30	30	Q1	2026	Based on the Commercial Credit Platform (PCC), the weighted average payment time (“tempo di pagamento”) of central public authorities (Amministrazioni dello Stato, enti pubblici nazionali e altri enti) to businesses shall be below or equal to 30 days.
M1C1-89	Reform 1.11: Reduction of late payments by public administrations and health authorities	Target	Average number of days for the regional public administrations to pay businesses is reduced	N/A	Weighted average payment time	30	30	Q1	2026	Based on the Commercial Credit Platform (PCC), the weighted average payment time (“tempo di pagamento”) of regional public authorities (Regioni and Province Autonome) to businesses shall be below or equal to 30 days.
M1C1-90	Reform 1.11: Reduction of late payments by public administrations and health authorities	Target	Average number of days for the local public administrations to pay businesses is reduced	N/A	Weighted average payment time	30	30	Q1	2026	Based on the Commercial Credit Platform (PCC), the weighted average payment time (“tempo di pagamento”) of local public authorities (enti locali) to businesses shall be below or equal to 30 days.
M1C1-91	Reform 1.11: Reduction of late payments by public administrations and health authorities	Target	Average number of days for the public health administrations to pay businesses is reduced	N/A	Weighted average payment time	60	60	Q1	2026	Based on the Commercial Credit Platform (PCC), the weighted average payment time (“tempo di pagamento”) of public health authorities (enti del Servizio sanitario nazionale) to businesses shall be below or equal to 60 days.
M1C1-92	Reform 1.11: Reduction of late payments by public administrations and health authorities	Target	Average number of days of delay for the central public administrations to pay businesses is reduced	N/A	Weighted average payment delay (in days)	0	0	Q1	2026	Based on the Commercial Credit Platform (PCC), the weighted average payment delay (“tempo di ritardo”) of central authorities (Amministrazioni dello Stato, enti pubblici nazionali e altri enti) to businesses shall be at most 0 days.
M1C1-93	Reform 1.11: Reduction of late payments by public administrations and health authorities	Target	Average number of days of delay for the regional public administrations to pay businesses is reduced	N/A	Weighted average payment delay (in days)	0	0	Q1	2026	Based on the Commercial Credit Platform (PCC), the weighted average payment delay (“tempo di ritardo”) of regional authorities (Regioni and Province Autonome) to businesses shall be at most 0 days
M1C1-94	Reform 1.11: Reduction of late payments by public administrations and health authorities	Target	Average number of days of delay for the local public administrations to pay businesses is reduced	N/A	Weighted average payment delay (in days)	0	0	Q1	2026	Based on the Commercial Credit Platform (PCC), the weighted average payment delay (“tempo di ritardo”) of local authorities (enti locali) to businesses shall be at most 0 days.
M1C1-95	Reform 1.11: Reduction of late payments by public administrations and health authorities	Target	Average number of days of delay for the health public administrations to pay businesses is reduced	N/A	Weighted average payment delay (in days)	0	0	Q1	2026	Based on the Commercial Credit Platform (PCC), the weighted average payment delay (“tempo di ritardo”) of public health authorities (enti del Servizio sanitario nazionale) to businesses shall be at most 0 days.
M1C1-96	Reform 1.10: Reform of the public procurement legislative framework	Target	Average time between the publication and the contract award	N/A	Number	193	115	Q4	2025	Based on the data from the EU Official Journal (TED database) the average time between the deadline for the submission of tenders and the date of signature of the contract shall be reduced to no more than 115 days for contracts above the thresholds of the EU public procurement directives. Ensure that there is full consistency and no time gap between the publication of data on the conclusion of the contract in TED and in the BDNCP (ANAC).
M1C1-97	Reform 1.10: Reform of the public procurement legislative framework	Target	Average time between the contract award and the realization of the infrastructure	N/A	Percentage	100	88	Q4	2024	The average time between the contract award and the realization of the infrastructure (‘fase esecutiva’) shall be reduced at least by 12%.
M1C1-97bis	Reform 1.10: Reform of the public procurement legislative framework	Target	Average time between the contract award and the realization of the infrastructure	N/A	Percentage	100	85	Q4	2025	The average time between the contract award and the realization of the infrastructure (‘fase esecutiva’) shall be reduced at least by 15%.
M1C1-98	Reform 1.10: Reform of the public procurement legislative framework	Target	Civil servants trained through the Public Buyers Professionalization Strategy	N/A	Percentage	20	40	Q4	2024	At least 40% of civil servants have been trained through the Public Buyers Professionalization Strategy with a view to qualification. This percentage takes into account the total number of civil servants actively involved in public procurement, that is 100 000 public buyers registered as of 30 April 2021 to the National e-Procurement System managed by Consip on behalf of the MEF.
M1C1-98bis	Reform 1.10: Reform of the public procurement legislative framework	Target	Civil servants trained through the Public Buyers Professionalization Strategy	N/A	Percentage	20	60	Q4	2025	At least 60% of civil servants have been trained through the Public Buyers Professionalization Strategy with a view to qualification. This percentage takes into account the total number of civil servants actively involved in public procurement, that is 100 000 public buyers registered as of 30 April 2021 to the National e-Procurement System managed by Consip on behalf of the MEF.
M1C1-99	Reform 1.10: Reform of the public procurement legislative framework	Target	Contracting authorities using dynamic purchasing systems	Percentage of Central Government Contracting Authorities using dynamic purchasing systems as per EU Directive 2014/24	Percentage	15	20	Q4	2024	At least 20% of contracting authorities are using dynamic purchasing systems as per Directive 2014/24 (two years observation timeframe and taking into account that in Italy the use of the DPS is mainly targeted at above the threshold purchases, given that the below-the-threshold ones are mainly performed using eMarketplaces). The target refers to Central Government Contracting Authorities (250 PA as registered per 30 April 2021 to the National e-Procurement System managed by Consip on behalf of the MEF).
M1C1-99bis	Reform 1.10: Reform of the public procurement legislative framework Investment 1.10: Support to qualification and eProcurement	Target	Digital competencies of contracting authorities	Percentage of local Government Contracting Authorities digitally competent	Percentage	0	50	Q4	2025	At least 50% of local contracting authorities have the digital competences required by the qualification. Contracting authorities that satisfy the same requirements by means of centralised purchasing bodies shall also be counted for the purpose of achieving the target.
M1C1-100	Reform 1.13: Reform of the spending review framework	Milestone	Entry into force of legislative provisions improving the effectiveness of the spending review - Reinforcement of Finance Ministry	Provision in the law indicating the entry into force of the law	N/A	N/A	N/A	Q4	2021	The revised framework for spending reviews in central state administrations (Ministries) shall improve its effectiveness by reinforcing the role of the Ministry of Economy and Finance. In particular, it shall provide for a reinforced role of the Ministry of Economy and Finance in the ex-ante evaluation, monitoring processes and ex-post evaluation, allowing to enforce the thoroughly execution of the reviews and the achievement of the intended goals.
M1C1-101	Reform 1.12: Reform of the tax administration	Milestone	Adoption of a review of possible actions to reduce tax evasion	Publication of the review	N/A	N/A	N/A	Q4	2021	Adopt a report to inform government actions for reducing tax evasion from omitted invoicing, especially in the sectors most exposed to tax evasion, including through targeted incentives to consumers.
M1C1-102	Reform 1.13: Reform of the spending review framework	Milestone	Adoption of a report on the effectiveness of practices used by selected public administrations for formulating and implementing saving plans	Publication of the report	N/A	N/A	N/A	Q4	2022	The report shall be prepared by the Accounting Department of the Finance Ministry in cooperation with selected administrations to: -Assess their practices in the formulation and implementation of saving plans. -Define guidelines for all public administrations.
M1C1-103	Reform 1.12: Reform of the tax administration	Milestone	Entry into force of primary and secondary legislation and regulatory provisions and completion of administrative processes for encouraging tax compliance and improving audits and controls	Provisions in the law and regulatory provisions indicating the entry into force	N/A	N/A	N/A	Q2	2022	The provisions shall include: i) full operationalisation of the database and the dedicated IT infrastructure for the release of pre-populated VAT tax return, as provided for by art. 4, paragraph 1, of the legislative decree n. 127/2015. (ii) the database used for the “compliance letters” (providing early communications to taxpayers for which anomalies are detected) is enhanced with a view of reducing the incidence of false-positive and increasing the number of communications sent out to taxpayers. (iii) entry into force of reformed legislation in order to ensure effective administrative sanctions in case of refusal of private providers to accept electronic payments (original article 23 of decree-law 124/2019, which had been abrogated upon conversion into law, represents a reference). (iv) Completion of the process of data pseudonymization provided for by art. 1, paragraphs 681-686, of the law n.160/2019 and set up of digital infrastructure for the analysis of big data generated through the interoperability of databases fully pseudonymized, with a view to increase the effectiveness of the risk analysis underlying the selection process. (v) Entry into force of primary and secondary legislation implementing additional effective actions based on the findings of the review of possible measures to reduce tax evasion from omitted invoicing.
M1C1-104	Reform 1.13: Reform of the spending review framework	Milestone	Adoption of savings targets for spending reviews for the years 2023-2025	Quantitative savings target for the aggregate central state administrations defined in the Document of Economy and Finance - in euro	N/A	N/A	N/A	Q2	2022	On the basis of the decree-laws 90 and 93 of 2016 and law 163/2016, set targets in the Economic Financial Document for yearly spending reviews for the aggregate central state administrations for the years 2023, 2024, 2025. The saving targets shall reflect an adequate level of ambition.
M1C1-105	Reform 1.12: Reform of the tax administration	Target	Higher number of "compliance letters"	N/A	Number	2 150 908	2 581 090	Q4	2022	The number of “compliance letters”, providing early communication to taxpayers for which anomalies are detected, shall be increased by at least 20% compared to 2019.
M1C1-106	Reform 1.12: Reform of the tax administration	Target	Reducing the number of false positive "compliance letters”	N/A	Number	126 500	132 825	Q4	2022	The number of false-positive “compliance letters” (providing an early communication to taxpayers for which anomalies are detected, but for which no frauds are detected ex post) shall be reduced by at least 5% with respect to 2019.
M1C1-107	Reform 1.12: Reform of the tax administration	Target	Increase in the tax revenue generated by "compliance letters"	N/A	Euro	2 130 000 000	2 449 500 000	Q4	2022	Tax revenue generated by “compliance letters” shall increase by 15% with respect to 2019.
M1C1-108	Reform 1.15: Reform of public accounting rules	Milestone	Approval of the Conceptual framework, the Set of accrual accounting standards and the Multidimensional Chart of Accounts	Resolution of the Accounting Department of the Finance Ministry approving the Accrual Accounting Governance Structure	N/A	N/A	N/A	Q2	2024	Completion of a conceptual framework as reference for the accrual accounting system according to the qualitative features defined by Eurostat (EPSAS Working Group); Setting of accrual accounting standards based on IPSAS/EPSAS; Design a multidimensional and multi-level chart of accounts.
M1C1-109	Reform 1.12: Reform of the tax administration	Target	Sending first pre-populated VAT tax returns	N/A	Number	0	2 300 000	Q2	2023	At least 2 300 000 taxpayers shall receive pre-populated VAT tax returns for the tax year 2022.
M1C1-110	Reform 1.13: Reform of the spending review framework	Milestone	Re-classification of the general State budget, with reference to the environmental expenditure and to the expenditure that promotes gender equality	Inclusion of the re-classification of the general State budget with reference to the environmental expenditure and to the expenditure that promotes gender equality in the 2024 Budget Law	N/A	N/A	N/A	Q4	2023	The 2024 Budget Law shall provide the Parliament with a Sustainable Development Budget consisting in the classification of the general State budget with reference to the environmental expenditure and to the expenditure that promotes gender equality. The classification shall be consistent with the criteria underlying the definition of Sustainable Development Goals and the targets of the Agenda 2030.
M1C1-111	Reform 1.13: Reform of the spending review framework	Milestone	Completion of the yearly spending review for 2023, with reference to the saving target set in 2022 for 2023	Adoption of the Finance Ministry report on the spending review in 2023, certifying the completion of the process and the achievement of the target.	N/A	N/A	N/A	Q2	2024	The Finance Ministry report to be transmitted to the Council of Ministers as provided for by decree-laws 90 and 93 of 2016 and law 163/2016 shall: -certify the completion of the spending review process for 2023 in respect of the provision for the spending review framework. -certify the achievement of the target set in 2022.
M1C1-112	Reform 1.12: Reform of the tax administration	Target	Improve the operational capacity of the tax administration as indicated in the “Performance plan 2021-2023” of the Revenue Agency	N/A	Number of hirings	0	4 113	Q2	2024	The staff of the Revenue Agency shall be increased by 4113 units as indicated in the “Performance plan 2021-2023”.
M1C1-113	Reform 1.12: Reform of the tax administration	Target	Higher number of "compliance letters"	N/A	Number	2 150 908	3 011 271	Q4	2024	The number of “compliance letters”, providing early communication to taxpayers for which anomalies are detected, shall be increased by at least 40% compared to 2019.
M1C1-114	Reform 1.12: Reform of the tax administration	Target	Increase in the tax revenue generated by "compliance letters"	N/A	Euro	2 130 000 000	2 769 000 000	Q4	2024	Tax revenue generated by “compliance letters” shall increase by 30% with respect to 2019.
M1C1-115	Reform 1.13: Reform of the spending review framework	Milestone	Completion of the yearly spending review for 2024, with reference to the saving target set in 2022 and 2023 for 2024	Adoption of the Finance Ministry report on the spending review in 2024, certifying the completion of the process and the achievement of the target.	N/A	N/A	N/A	Q2	2025	The Finance Ministry report to be transmitted to the Council of Ministers as provided for by decree-laws 90 and 93 of 2016 and law 163/2016 shall: - certify the completion of the spending review process for 2024 in respect of the provision for the spending review framework. - certify the achievement of the target set in 2022 and 2023.
M1C1-116	Reform 1.12: Reform of the tax administration	Target	Reduction of tax evasion as defined by the indicator "propensity to evade"	N/A	Percentage	0	-5	Q4	2025	“Propensity to evade” in all taxes excluding property taxes (Imposta Municipale Unica) and excises shall be lower in 2023 compared to 2019 by 5% of the 2019 baseline. The reference estimate for 2019 shall be included in the updated government report on the shadow economy to be published in November 2021 according to the provisions of art. 2 of the legislative decree n. 160/2015. The 5% reduction shall be observed with reference to the estimates included in the updated vintage of the same report to be published in November 2025 based on data for the tax year 2023.
M1C1-117	Reform 1.15: Reform of public accounting rules	Target	Public entities trained for the transition to the new accrual accounting system	N/A	Number	0	18 000	Q1	2026	End of the first round of training for the transition to the new accrual accounting system for representatives of 18 000 public entities.
M1C1-118	Reform 1.15: Reform of public accounting rules	Milestone	Entry into force of the reform of the accrual accounting for at least 90% of whole public sector.	Provision in the law indicating the entry into force of all implementing measures (including guidelines, operational manuals and training program) of the accrual accounting for at least 90% of the whole public sector.	N/A	N/A	N/A	Q2	2026	Public administration financial statements covering at least 90% of the whole public sector shall be issued. A legislative reform shall be adopted providing for the introduction of the new accrual accounting system for at least 90% of public administrations as of 2027. Secondary legislation shall be adopted providing: Guideline(s) and Operating manual(s) for the application of accounting standards accompanied by examples and practical representations to support operators; Training program: set up of training programs for the transition to the new accrual accounting system.
M1C1-119	Reform 1.14: Reform of the subnational fiscal framework	Milestone	Entry into force of primary and secondary legislation to implement regional fiscal federalism	Provision in the law indicating the entry into force of fiscal federalism for regions with ordinary status.	N/A	N/A	N/A	Q1	2026	Entry into force of the regulatory framework of the “Fiscal federalism” (“Federalismo fiscale”) as provided for by the existing delegation law 42/2009. In particular, primary and secondary legislation shall define the relevant parameters to implement the fiscal federalism for regions with ordinary status, as defined by the decree-law 68/2011 (article 1-15), as lastly amended by law 176/2020 (article 31-sexties).
M1C1-120	Reform 1.14: Reform of the subnational fiscal framework	Milestone	Entry into force of primary and secondary legislation to implement regional fiscal federalism	Provision in the law indicating the entry into force of fiscal federalism for provinces and metropolitan cities.	N/A	N/A	N/A	Q1	2026	Entry into force of the regulatory framework of the of the “Fiscal federalism” (“Federalismo fiscale”) as provided for by the existing delegation law 42/2009. In particular, primary and secondary legislation shall define the relevant parameters to implement, as appropriate, the fiscal federalism for provinces and metropolitan cities, as defined by the decree-law 68/2011 (article 1-15), as lastly amended by law 178/2020 (article 1, comma 783).
M1C1-121	Reform 1.12: Reform of the tax administration	Target	Reduction of tax evasion as defined by the indicator "propensity to evade"	N/A	Percentage	0	-15	Q2	2026	“Propensity to evade” in all taxes excluding property taxes (Imposta Municipale Unica) and excises shall be lower in 2024 compared to 2019 by 15% of the 2019 baseline. The reference estimate for 2019 shall be included in the updated government report on the shadow economy to be published in November 2021 according to the provisions of art. 2 of the legislative decree n. 160/2015. The 15% reduction shall be observed with reference to an estimate for the tax year 2024 included in a dedicated report to be prepared by the Ministry of Finance by June 2026 based on the same methodology used for the report required by art. 2 of the legislative decree n. 160/2015.
M1C1-122	Reform 1.13: Reform of the spending review framework	Milestone	Completion of the yearly spending review for 2025, with reference to the saving target set in 2022, 2023 and 2024 for 2025.	Adoption of the Finance Ministry report on the spending review in 2025, certifying the completion of the process and the achievement of the target.	N/A	N/A	N/A	Q2	2026	The Finance Ministry report to be transmitted to the Council of Ministers as provided for by decree-laws 90 and 93 of 2016 and law 163/2016 shall: - certify the completion of the spending review process for 2025 in respect of the provision for the spending review framework. - certify the achievement of the target set in 2022, 2023 and 2024.

A.3. Description of the reforms and investments for the loan

Investment 1.2 - Cloud enablement for local PA

The objective of this investment is to migrate the datasets and applications of a substantial part of the local public administration to a secure cloud infrastructure, allowing each administration the freedom to choose within a set of certified public cloud environments.

The measure also envisages a “migration as a service” support package to administrations which shall encompass: (i) the initial assessment, (ii) the procedural/administrative support needed to launch the effort, (iii) the negotiation of the necessary external support and (iv) the overall project management over the course of execution. A team supervised by the Ministry for Technological Innovation and Digital Transition (MITD) is expected to identify and certify a broad list of qualified providers and to negotiate a set of standard support packages tailored to the size of the administration and the services involved in the migration.

Investment 1.4 - Digital services and citizen experience

The objective of this investment is to develop an integrated and harmonized offering of state-of-the-art citizen-oriented digital services, ensure their wide-spread adoption thereof across both central and local administrations and enhance users’ experience.

The measure shall:

(I)enhance the experience of digital public services by defining reusable service delivery models ensuring full accessibility requirements (Investment 1.4.1 - Citizen experience - Improvement of the quality and the usability of digital public services);

(II)improve the accessibility of digital public services (Investment 1.4.2 - Citizen inclusion: Accessibility improvement of digital public services);

(III)foster the adoption of the digital application for payments between citizens and public administrations (PagoPa) and the adoption of the “IO” app as the key digital touchpoint between citizens and administration for a wide range of services (including notifications) in line with the “one stop shop” logic (Investment 1.4.3 - Adoption scale up of PagoPA platform services and the “IO” app);

(IV)foster the adoption of National Digital Identity platforms (Sistema Pubblico di Identità Digitale, SPID and Carta d’Identità Elettronica, CIE) and of the national registry (Anagrafe nazionale della popolazione residente, ANPR) (Investment 1.4.4 - Adoption scale up of the National Digital Identity platforms (SPID, CIE) and the national registry (ANPR));

(V)develop a single platform for notifications (Investment 1.4.5 - Digitization of public notices);

(VI)foster the adoption of Mobility as a Service (MaaS) paradigms in metropolitan cities to digitize local transport and provide users with an integrated mobility experience from trip planning to payments across multiple modes of transport (Investment 1.4.6 - Mobility as a Service for Italy, with this last measure being financed on the basis of non-repayable financial support).

Investment 1.6 - Digital transformation of large central administrations

The objective of this investment is to re-engineer and digitize a set of priority processes, activities and services within main Central Administrations to increase the efficiency of these administrations and simplify procedures. The Central Administrations concerned include: (i) the National Social Security Institute (INPS) and National Institute for Insurance against Accidents at work (INAIL), (ii) the Judicial system, (iii) the Ministry of Defence, (iv) the Ministry of Interior, (v) the Finance Police.

As regards the Ministry of Interior, the project envisages (i) the digitization of services for citizens and the re-engineering of the underlying internal processes; (ii) the development of internal applications and management systems to develop an internal centralized verification system of physical and digital identity and related attributes, allowing public officers (e.g., Police) to perform real-time remote verification of the personal documents and licenses (e.g. health card, driving license, etc.) owned by citizens and associated with CIE; (iii) personnel upskilling to strengthen digital capabilities (1.6.1 - Digitization of the Ministry of the Interior).

As regards the Judicial system, the project foresees (i) the digitization of the last twenty years (01/01/2006 – 30/06/2026) of archives (7 750 000 Court records) related to civil proceedings of lower courts (Tribunali ordinari), the Courts of Appeal, and to the Supreme Court’s judicial files, Justices of the Peace of district capitals, Juvenile Offices, Criminal Sections of Courts and Courts of Appeal, and Public Prosecutors' Offices; (ii) the creation of a Data Lake (software layer) acting as a single point of access to the entire set of raw data produced by the judicial system. The information stored in the Data Lake shall be exploited by deploying artificial intelligence solutions to: (i) Anonymize civil and criminal sentences; (ii) Automate identification of victim-offender relationship in legal provisions; (iii) manage, analyse and organize previous case laws to facilitate consultation by civil judges and public prosecutors; (iv) perform advanced statistical analysis on the efficiency and effectiveness of the judicial system; (v) manage and monitor processing times of activities performed by judicial offices (Investments 1.6.2 - Digitization of the Ministry of Justice and 1.6.5 - Digitization of the Council of State, financed on the basis of non-repayable financial support).

As regards INPS and INAIL, the project encompasses a major review of their internal systems and procedures as well as the evolution of their digital touchpoints with residents, firms and other public administrations, in order to provide users with a seamless digital experience (1.6.3 - Digitization of National Social Security Institute (INPS) and National Institute for Insurance against Accidents at work (INAIL)).

As regards the Ministry of Defence, the project encompasses (i) the security enhancement of three fundamental sets of information (personnel, administrative documentation, internal and external communications) and (ii) the migration of all systems and applications to an open-source paradigm, compliant with the security policies defined by the reference regulatory framework (Investment 1.6.4 - Digitization of the Ministry of Defence).

As regards the Finance Police, the project aims notably at (i) reorganising databases; (ii) introducing Data Science within the operational and decision-making processes (Investment 1.6.6 - Digitization of the Finance Police, financed on the basis of non-repayable financial support).

A.4. Milestones, targets, indicators, and timetable for monitoring and implementation for the loan

Sequential Number	Related Measure (Reform or Investment)	Milestone / Target	Name	Qualitative indicators (for milestones)	Quantitative indicators (for targets)			Indicative timeline for completion		Description of each milestone and target
					Unit of measure	Baseline	Goal	Quarter	Year
M1C1-14	Investment 1.6.5: Digitization of the Council of State	Target	Council of State - Court documents available for analysis in data warehouse T1	N/A	Number	0	800 000	Q4	2023	Number of court documents related to administrative jurisdiction system (such as sentences, opinions and decrees) fully available in data warehouse.
M1C1-16	Investment 1.6.5: Digitization of the Council of State	Target	Council of State - Court documents available for analysis in data warehouse T2	N/A	Number	800 000	2 500 000	Q4	2023	Number of court documents related to administrative jurisdiction system (such as judgments, opinions and decrees) fully available in data warehouse.
M1C1-123	Investment 1.6.3 - Digitization of National Social Security Institute (INPS) and National Institute for Insurance against Accidents at work (INAIL)	Target	INPS - "One click by design" services/contents T1	N/A	Number	0	35	Q4	2022	35 additional services deployed on INPS' institutional web site ( www.inps.it ). The services shall be accessible on the institutional site through appropriate profiling logics (the system will suggest services of possible interest based on age, work characteristics, perceived benefits, and user history). The 35 services are related to the following INPS institutional areas: •Pensions benefits •Social Shock Absorbers •Unemployment benefits •Disability benefits •Redemptions •Company collection of contribution •Agriculture workers services •Anti-fraud, corruption and transparency services In the listed institutional areas, the services that shall be implemented will concern the digital submission of requests for services, the check of the requirements for the benefit, the status monitoring of the practice by users, the proactive proposal of services based on user's needs, the automatic renewal of benefits without the need for new applications. Finally, there shall be monitoring dashboards that allow both the monitoring by INPS of the benefits provided and data driven support to policy makers’ decisions.
M1C1-124	Investment 1.6.3 - Digitization of National Social Security Institute (INPS) and National Institute for Insurance against Accidents at work (INAIL)	Target	INPS - Employees with improved Information and Communication Technologies (ICT) skills T1	N/A	Number	0	4 250	Q4	2022	At least 4 250 INPS employees assessed with regards to their Information and with certified improved skills in the following areas of the European e-Competence Framework: (i) Plan; (ii) Build; (iii) Run (iv) Enable; (v) Manage. The areas for improvement of competences will be identified according to the target group of learners.
M1C1-125	Investment 1.2 - Cloud enablement for local PA	Milestone	Award of (all) public calls for Cloud enablement for local Public Administration tenders	Notification of the award of (all) public contracts for Cloud enablement for local Public Administration tenders	N/A	N/A	N/A	Q1	2023	Notification of the award of (all) public calls for each type of Public Administration involved (Municipalities, Schools, local healthcare agencies) to collect and assess migration plans. The issuance of three dedicated calls shall allow the Ministry for Technological Innovation and Digital Transition to assess the very specific needs of each type of Public Administration involved. Tenders awarded (i.e. publication of the list of public administrations admitted to receive funding) related to three public calls for proposal respectively for Municipalities, Schools, and local healthcare agencies, to collect and assess migration plans, 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.
M1C1-126	Investment 1.4.3 - Adoption scale up of PagoPA platform services and the “IO” app	Target	Adoption scale up of PagoPA platform services T1	N/A	Number	9 000	11 450	Q4	2023	Ensure an increase in the number of services integrated in the platform for: - public administrations already in the baseline (9 000 entities) - new public administrations joining the platform (2 450 new entities). In both cases, the total number of services of the public administrations joining the platform shall have to increase by at least 20% compared to the 2021 services baseline (31.03.2021). The number of services that shall be integrated depend on the type of administration (the final 2026 goal is to have an average of 35 services for Municipalities, 15 services for Regions, 15 services for health authorities, 8 services for schools and universities).
M1C1-127	Investment 1.4.3 - Adoption scale up of PagoPA platform services and the “IO” app	Target	Adoption scale up of “IO” app T1	N/A	Number	2 700	7 000	Q4	2023	Ensure an increase in the number of services integrated in “IO “app for: - public administrations already in the baseline (2 700 entities) - new public administrations joining the platform (4 300 new entities). In both cases, the total number of services of the public administrations joining the platform shall have to increase by at least 20% compared to the 2021 services baseline (31.03.2021). The number of services that shall be integrated depend on the type of administration (the final 2026 goal is to have an average of 35 services for Municipalities, 15 services for Regions, 15 services for health authorities, 8 services for schools and universities).
M1C1-128	Investment 1.4.5 - Digitization of public notices	Target	Adoption scale up of digital public notices T1	N/A	Number	0	800	Q4	2023	At least 800 Central Public Administrations and Municipalities, with respect to Digital Notification Platform (DNP), shall provide digital legally-binding notices to citizens, legal entities, associations and any other public or private entities.
M1C1-129	Investment 1.6.1 - Digitization of the Ministry of the Interior	Target	Ministry of the Interior - Fully re-engineered and digitized processes T1	N/A	Number	0	7	Q4	2023	Internal procedures and processes fully re-engineered (7 processes in total until 31 December 2023) and that can be entirely completed online (such as office automation, mobility services and e-learning).
M1C1-130	Investment 1.6.2 - Digitization of the Ministry of Justice	Target	Digitized judicial files T1	N/A	Number	0	3 500 000	Q4	2023	Digitalization of 3 500 000 judicial files pertaining to the last 20 years (01/01/2006 - 30/06/2026) related to completed or ongoing trials of judicial courts.
M1C1-131	Investment 1.6.2 - Digitization of the Ministry of Justice	Milestone	Justice Data Lake knowledge systems T1	Report testifying the start of execution of the contract	N/A	N/A	N/A	Q4	2023	Start of execution of the contract for the realization of six new Data Lake knowledge systems: 1)Anonymization system of civil and criminal sentences 2)Integrated management system 3)Management and analysis system for civil trials 4)Management and analysis system for criminal trials 5)Advanced statistics system on civil and criminal trials 6)Automated system for identification of victim-guilty relationship. The execution of every public contract starts by a specific administrative act of the responsible of the procedure, named “starting execution”.
M1C1-132	Investment 1.6.3 - Digitization of National Social Security Institute (INPS) and National Institute for Insurance against Accidents at work (INAIL)	Target	INPS - “One click by design” services/contents T2	N/A	Number	35	70	Q4	2023	35 additional services deployed on Inps's institutional web site ( www.inps.it ). The services shall be accessible on the institutional site through appropriate profiling logics (the system shall suggest services of possible interest based on age, work characteristics, perceived benefits, and user history). The 35 services are related to the following INPS institutional areas: •Pensions benefits •Social Shock Absorbers •Unemployment benefits •Disability benefits •Redemptions •Company collection of contribution •Agriculture workers services •Anti-fraud, corruption and transparency services In the listed institutional areas, the services that shall be implemented shall concern the digital submission of request of services, the check of the requirements for the benefit, the status monitoring of the practice by users, the proactive proposal of services based on user's needs, the automatic renewal of benefits without the need for new applications. Finally, there shall be monitoring dashboards that allow both the monitoring by INPS of the benefits provided and data driven support to policy makers’ decisions.
M1C1-133	Investment 1.6.3 - Digitization of National Social Security Institute (INPS) and National Institute for Insurance against Accidents at work (INAIL)	Target	INPS - Employees with improved Information and Communication Technologies (ICT) skills T2	N/A	Number	4 250	8 500	Q4	2023	Additional 4 250 INPS employees assessed with certified improved skills in the following areas of the European e-Competence Framework: (i) Plan; (ii) Build; (iii) Run (iv) Enable; (v) Manage. The areas for improvement of competences shall be identified according to the target group of learners.
M1C1-134	Investment 1.6.3 - Digitization of National Social Security Institute (INPS) and National Institute for Insurance against Accidents at work (INAIL)	Target	INAIL - Fully re-engineered and digitized processes/services T1	N/A	Number	29	53	Q4	2023	The target is to achieve 53 (52%) re-engineered institutional processes and services in order to make them fully digitized. The involved areas of INAIL are: Insurance, Social and Health services, Prevention and safety work, Certifications and verifications. In particular, the expected target for each area is expressed above: ·Insurance: 8 (25%); ·Social and health services: 18 (50%); ·Prevention and safety work: 9 (80%); ·Certifications and verifications: 18 (80%).
M1C1-135	Investment 1.6.4 - Digitization of the Ministry of Defence	Target	Ministry of Defence - Digitalisation of procedures T1	N/A	Number	4	15	Q4	2023	Digitization, revision, and automation of 15 procedures related to management of Defence’s personnel (such as recruiting, employment and retirement, employees' health) starting from a baseline of four already digitized procedures.
M1C1-136	Investment 1.6.4 - Digitization of the Ministry of Defence	Target	Ministry of Defence - Digitalisation of certificates T1	N/A	Number of digitized certificates	190 000	450 000	Q4	2023	Number of digitized identity certificates (450 000) issued by the Ministry of Defence and running onto the infrastructure complemented by a disaster recovery site starting from a baseline of 190 000 already digitized certificates.
M1C1-137	Investment 1.6.4 - Digitization of the Ministry of Defence	Milestone	Ministry of Defence - Commissioning of institutional web portals and intranet portals	Institutional web portals and intranet web portals fully operational	N/A	N/A	N/A	Q4	2023	Development and implementation of (i) institutional web portals and (ii) intranet portals for specific needs of internal communication.
M1C1-138	Investment 1.6.4 - Digitization of the Ministry of Defence	Target	Ministry of Defence - Migration of non-mission critical applications into Solution for Complete Information Protection by Infrastructure Openness (S.C.I.P.I.O.) T1	N/A	Number	0	10	Q4	2023	Initial migration and operational availability of non-mission critical applications to new open-source infrastructure. This encompasses hardware environment implementation, installation of middleware open-source components, and the re-engineering of applications.
M1C1-139	Investment 1.2 - Cloud enablement for local PA	Target	Cloud enablement for local Public Administration T1	N/A	Number	0	4 083	Q3	2024	The migration of 4 083 Local Public Administrations towards certified cloud environments shall be considered achieved when the testing of all the systems, datasets and application migration included in each migration plan are successful.
M1C1-140	Investment 1.4.1 - Citizen experience - Improvement of the quality and the usability of digital public services	Target	Improvement of the quality and the usability of digital public services T1	N/A	Percentage	0,1	40	Q4	2024	Administrations (municipalities, primary and secondary of 1st and 2nd grade educational institutions and specific piloted health care and cultural heritage entities) adhering to a common model and design system, simplifying user interaction and easing maintenance for the years to come. Adherence to the common design/model of websites/services components shall consist of: (1) Evaluation of projects submitted; (2) Assessment of project completion on key usability metrics (digital usability scores), through dedicated platform already available.
M1C1-141	Investment 1.6.4 - Digitization of the Ministry of Defence	Target	Digitalisation of procedures of the Ministry of Defence T2	N/A	Number	15	20	Q4	2024	Digitization, revision, and automation of 20 procedures related to management of Defence’s personnel (such as recruiting, employment and retirement, employees' health), starting from a baseline of fifteen already digitized procedures with target 1.
M1C1-142	Investment 1.6.4 - Digitization of the Ministry of Defence	Target	Digitalisation of certificates of the Ministry of Defence T2	N/A	Number of digitized certificates	450 000	750 000	Q4	2024	Number of digitized identity certificates (750 000) issued by the Ministry of Defence and running onto the infrastructure complemented by a disaster recovery site, starting from a baseline of 450 000 already digitized certificates with target 1.
M1C1-143	Investment 1.6.4 - Digitization of the Ministry of Defence	Target	Ministry of Defence - Migration of non-mission critical applications into Solution for Complete Information Protection by Infrastructure Openness (S.C.I.P.I.O.) T2	N/A	Number	10	15	Q4	2024	Final migration of four mission critical and eleven non-mission critical applications to new open-source infrastructure encompassing hardware environment implementation, installation of middleware open source components, re-engineering of applications, starting from a baseline of ten already migrated with target 1.
M1C1-144	Investment 1.4.2 - Citizen inclusion - Accessibility improvement of digital public services	Target	Accessibility improvement of digital public services	N/A	Number	0	55	Q2	2025	By Q2-2025, AgID shall provide support to 55 local public administration, in order to: - Supply 28 technical and professional experts - Reduce the number of errors by 50% on at least 2 digital services provided by each administration - Disseminate and train at least, 3 tools aimed to re-design and develop the most used digital services owned by each administration - Ensure that at least 50% of assistive technologies and software needs are devoted to workers with disabilities.
M1C1-145	Investment 1.4.4 -Adoption scale up of the National Digital Identity platforms (SPID, CIE) and the national registry (ANPR)	Target	National Digital Identity platforms (SPID, CIE) and the national registry (ANPR)	N/A	Number of citizens with an eID	17 500 000	42 300 000	Q4	2025	Number of Italian citizens with valid digital identities on the national digital identity platform.
M1C1-146	Investment 1.4.4 - Adoption scale up of the National Digital Identity platforms (SPID, CIE) and the national registry (ANPR)	Target	National Digital Identity platforms (SPID, CIE) and the national registry (ANPR)	N/A	Number	6 283	16 500	Q1	2026	Number of public administrations (out of a total of 16 500) adopting electronic identification (eID) (SPID or CIE).
M1C1-147	Investment 1.2 - Cloud enablement for local PA	Target	Cloud enablement for local Public Administration T2	N/A	Number	4 083	12 464	Q2	2026	The migration of 12 464 Local Public Administrations towards certified cloud environments shall be considered achieved when the testing of all the systems, datasets and application migration included in each migration plan are successful.
M1C1-148	Investment 1.4.1 - Citizen experience - Improvement of the quality and the usability of digital public services	Target	Improvement of the quality and the usability of digital public services T2	N/A	Percentage	40	80	Q2	2026	Administrations (municipalities, primary and secondary of 1st and 2nd grade educational institutions and specific piloted health care and cultural heritage entities) adhering to a common model and design system, simplifying user interaction and easing maintenance for the years to come. Adherence to the common design/model of websites/services components shall consist of: (1) Evaluation of projects submitted; (2) Assessment of project completion on key usability metrics (digital usability scores), through dedicated platform already available. Municipalities must guarantee adherence to the common design service model for at least 3.5 services on average among all municipalities contributing to the target.
M1C1-149	Investment 1.4.3 - Adoption scale up of PagoPA platform services and the “IO” app	Target	Adoption scale up of PagoPA platform services T2	N/A	Number	11 450	14 100	Q2	2026	Ensure an increase in the number of services integrated in the platform for: - public administrations already joining the platform (11 450 entities); - new public administrations joining the platform (2 650 new entities). The number of services that shall be integrated depend on the type of administration (the final goal is to have an average of 35 services for Municipalities, 15 services for Regions, 15 services for health authorities, 8 services for schools and universities).
M1C1-150	Investment 1.4.3 - Adoption scale up of PagoPA platform services and the “IO” app	Target	Adoption scale up of “IO” app T2	N/A	Number	7 000	14 100	Q2	2026	Ensure an increase in the number of services integrated in “IO “app for: - public administrations already using IO (7 000 entities); - new public administrations joining the platform (around 7 100 new entities). The number of services that shall be integrated depend on the type of administration (the final goal is to have an average of 35 services for Municipalities, 15 services for Regions, 15 services for health authorities, 8 services for schools and universities).
M1C1-151	Investment 1.4.5 - Digitization of public notices	Target	Adoption scale up of digital public notices T2	N/A	Number	800	6 400	Q2	2026	At least 6 400 Central Public administrations and Municipalities, with respect to Digital Notification Platform (DNP), shall provide digital legally-binding notices to citizens, legal entities, associations and any other public or private entities.
M1C1-152	Investment 1.6.1 - Digitization of the Ministry of the Interior	Target	Ministry of Interior - Fully re-engineered and digitized processes T2	N/A	Number	7	45	Q2	2026	Internal procedures and processes fully re-engineered (45 processes in total by 31 August 2026) and that can be entirely completed online (such as office automation, mobility services and e-learning).
M1C1-153	Investment 1.6.2 - Digitization of the Ministry of Justice	Target	Digitized judicial files T2	N/A	Number	3 500 000	7 750 000	Q2	2026	Digitalization of 7 750 000 judicial files pertaining to the last 20 years (01/01/2006 - 30/06/2026) related to completed or ongoing trials of judicial courts.
M1C1-154	Investment 1.6.2 - Digitization of the Ministry of Justice	Target	Justice Data Lake knowledge systems T2	N/A	Number	0	6	Q2	2026	Implementation of six new Data lake knowledge systems. 1)Anonymization system of civil and criminal sentences 2)Integrated management system 3)Management and analysis system for civil trials 4)Management and analysis system for criminal trials 5)Advanced statistics system on civil and criminal trials 6)Automated system for identification of victim-guilty relationship. The six items are separate systems using similar technologies. The framework of the systems is the same: connecting data and documents coming from internal and external sources; the patterns of the systems are different according to the users (e.g. civil and criminal judges) and the objectives (e.g. statistics and judgment).
M1C1-155	Investment 1.6.3 - Digitization of National Social Security Institute (INPS) and National Institute for Insurance against Accidents at work (INAIL)	Target	INAIL - Fully re-engineered and digitized processes/services T2	N/A	Number	53	82	Q2	2026	The target is to achieve 82 (80%) re-engineered institutional processes and services in order to make them fully digitized. The involved areas of INAIL are: Insurance, Social and Health services, Prevention and safety work, Certifications and verifications. In particular, the expected target for each area is expressed above: ·Insurance: 26 (80%); ·Social and health services: 29 (80%); ·Prevention and safety work: 9 (80%); ·Certifications and verifications: 18 (80%).

B. MISSION 1 COMPONENT 2:

Axis 1 - Digitalization, Innovation and Competitiveness of the Production System

Axis 1 of Mission 1 Component 2 of the Italian recovery and resilience plan concerns investments and reforms mainly aimed at (i) supporting the digital transition and the innovation of the production system through incentives to investments in technologies, research, development and innovation; (ii) deploying ultra-fast broadband and 5G networks to reduce the digital divide as well as satellite constellations and services; (iii) promoting the development of strategic value chains and supporting the competitiveness of companies, with a focus on SMEs.

Measures under this component aim to address gaps emerging from the Digital Economy and Society Index (DESI) 2020 as regards the digital transformation of businesses and the shortcomings in connectivity, with a view to strengthen the social and economic resilience of the country.

The investments and reforms under this component shall contribute to addressing the Country-Specific Recommendations addressed to Italy in 2020 and 2019 on the need to “strengthen distance learning and skills, including digital ones” (Country-Specific Recommendation 2, 2020), to “promote private investment to foster the economic recovery” (Country-Specific Recommendation 3, 2020), to “focus investment on the green and digital transition, in particular on […] reinforced digital infrastructure to ensure the provision of essential services” (Country-Specific Recommendation 3, 2020), to “foster upskilling, including by strengthening digital skills (Country-Specific Recommendation 2, 2019), to “focus investment-related economic policy on research and innovation, and the quality of infrastructure, considering also regional disparities” (Country-Specific Recommendation 3, 2019) and, to some extent, to “support non-bank access to finance for innovative and smaller firms” (Country-Specific Recommendation 5, 2019).

It is expected that no measure in this component does significant harm to environmental objectives within the meaning of Article 17 of Regulation (EU) 2020/852, taking into account the description of the measures and the mitigating steps set out in the recovery and resilience plan in accordance with the ‘Do no significant harm’ Technical Guidance (2021/C58/01).

Axis 2 – Improving business environment and competition

The main objective of the axis 2 of Mission 1 Component 2 is to improve the business environment to facilitate entrepreneurship, and the framework conditions for competition to favour a more efficient allocation of resources and productivity gains. The main tool to reach these goals is the Annual Competition Law, to be adopted each year.

The investments and reforms under this component shall contribute to addressing the Country-Specific Recommendations addressed to Italy in 2019 on the need to “address restrictions to competition […), also through a new annual competition law” (Country-Specific Recommendation 3, 2019).

B.1. Description of the reforms and investments for non-repayable financial support

Axis 1 - Digitalization, Innovation and Competitiveness of the Production System

Investment 1: Transition 4.0

The objective of the measure is to support the digital transformation of businesses by incentivising private investment in assets and activities supporting digitalisation. The measure financed under the Italian recovery and resilience plan is part of a broader Transition 4.0 Plan, which includes other support measures financed at the national level to boost the digital transformation of businesses.

The measure consists of a tax credit scheme and covers expenses to be claimed in the tax returns presented in the period between 1 January 2021 and 31 December 2023 (30 November 2024 for firms whose tax year does not correspond to the calendar year). The measure also includes the definition of tax credit codes, which shall be identified by a resolution of the Revenues Agency to allow beneficiaries to use the tax credits with the F24 payment model.

The tax credits supported shall cover the following assets and activities:

1.capital goods, consisting of: (i) 4.0 (that is to say, technologically advanced) tangible capital goods, such as production machines whose operations is controlled by computerized systems or sensors/drives, machines and systems used for product or process control, and interactive systems; all of them to be characterized by digital features, such as automated integration and man-machine interface; (ii) 4.0 intangible capital goods such as 3D modelling, intra-factory communication systems, and artificial intelligence and machine learning software, systems, platforms and applications; (iii) standard intangible capital goods, such as software relating to business management. This covers tax credits presented in the tax returns between 1 January 2021 and 31 December 2023 (30 November 2024 for firms whose tax year does not correspond to the calendar year).

2.research, development and innovation activities, consisting of research and development, technological innovation, green and digital innovation, and design activities. This covers tax credits presented in the tax returns between 1 January 2022 and 31 December 2023 (30 November 2024 for firms whose tax year does not correspond to the calendar year).

3.training activities, carried out to acquire or consolidate the knowledge of relevant technologies, such as big data and data analysis, human machine interface, internet of things, digital integration of business processes, cybersecurity. This covers tax credits presented in the tax returns between 1 January 2022 and 31 December 2023 (30 November 2024 for firms whose tax year does not correspond to the calendar year).

The measure includes the establishment of a Scientific Committee including experts from the Ministry Economy and finance, the Ministry of Economic Development and the Bank of Italy to assess the economic impact of the scheme.

Reform 1: Reform of the Industrial Property System

The main objective of the reform is to adapt the industrial property system to modern challenges and ensure that the innovation potential effectively contributes to the country’s recovery and resilience. Specifically, it aims to pursue the following objectives: enhancing the industrial property protection system; encouraging industrial property use and dissemination, especially by SMEs; facilitating access to and sharing of intangible assets, while ensuring a fair return on investments; guaranteeing a more rigorous respect for industrial property; and strengthening Italy's role in European and international fora on industrial property.

The measure concerns the reform of the Italian industrial property code, covering at least the following areas: (i) review the regulatory framework to strengthen the protection of industrial property rights and simplify procedures, (ii) strengthen the support to companies and research institutions, (iii) enhance skills and competences development, (iv) facilitate knowledge transfer, and (v) strengthen innovative services promotion.

Investment 6: Investment in the Industrial Property System

The objective of the investment is to support the industrial property system and accompany its reform, as envisaged under Reform 1 of this component. The measure includes financial support for industrial property-related projects of companies and research bodies, such as patent-related measures (Brevetti+), Proof of Concept (POC) programs and the strengthening of technology transfer offices (TTOs).

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 research and development dedicated to the following list of activities: (i) activities related to fossil fuels, including downstream use 1 ; (ii) activities under the EU Emission Trading System (ETS) achieving projected greenhouse gas emissions that are not lower than the relevant benchmarks 2 ; (iii) activities related to waste landfills, incinerators 3 and mechanical biological treatment plants 4 ; 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 may be selected.

Axis 2 – Improving business environment and competition

Reform 2: Annual Competition Laws 2021, 2022, 2023 and 2024

The Competition Law shall be adopted each year, increasing competitive procedures to award public service contracts for local public services (notably in waste and public transport), avoiding the unjustified prolongation of concessions in ports, highways, electric charging stations and hydropower to incumbent operators in many sectors, providing for the proper regulation of public services contracts, revising the rules on aggregation and applying the general principle of proportionality in the length and proper compensation of public service contracts. The Competition Law will also increase incentives for Regions to tender their public services contracts for regional rail services. A clear separation between the functions of regulation/control and the management of the contracts shall also be introduced.

With regard to sector-specific measures, the annual Competition Laws shall include measures in the sectors of energy (electricity, gas and water), waste management and transport (ports, rail and highways), which shall complement the investments and reforms under Missions 2 and 3. Flanking measures to ensure the uptake of competition in electricity retail markets shall enter into force at the latest on 31st December 2022 The Annual Competition Law 2022 shall notably adopt the Electricity Network Development Plan and promote the deployment of 2nd generation smart electricity meters, which shall reach 33 million units throughout Italy at the 31st December 2025.

Moreover, the Laws shall improve the business environment at least through: (i) the alignment of merger control rules with EU law, (ii) the consolidation, digitalisation and professionalisation of market surveillance authorities and (iii) reduction the time of accreditation for providing information about employees, from seven to four days to reduce the number of days to set up a business.

Reform 3: Rationalization and simplification of firms’ incentives.

The reform shall consist in a systematic review of all national incentives for firms and the related instruments.

The reform shall be implemented in two steps:

1.Publication of a report carrying out an evaluation of incentives for firms. The report shall also develop concrete proposals to simplify and rationalize firms’ incentives.

2.Entry into force of the legislative acts implementing the Mandate-Law “Legge delega Incentivi”. The scope of the legislative acts shall be to streamline and rationalize firms’ incentives.

The reform includes the restructuring and further implementation of two key instruments managed by the Ministry for Enterprises and Made in Italy (MIMIT):

(a) the RNA (National registry of State aids) and,

(b) the incentivi.gov.it Platform, to cover the related data collection, monitoring and analysis activities costs.

B.2. Milestones, targets, indicators, and timetable for monitoring and implementation for non-repayable financial support

Sequential Number	Measure	Milestone / Target	Name	Qualitative indicators (for milestones)	Quantitative indicators (for targets)			Indicative timeline for completion		Description of each milestone and target
					Unit of measure	Baseline	Goal	Quarter	Year
M1C2-1	Investment 1: Transition 4.0	Milestone	Entry into force of legal acts to make Transition 4.0 tax credits available to potential beneficiaries and establishment of the Scientific Committee	Provision in the law indicating the entry into force of the budgetary law enabling the tax credits and provision in the related implementing acts indicating their entry into force	N/A	N/A	N/A	Q4	2021	The legal acts shall make Transition 4.0 tax credits available to potential beneficiaries. These are tax credits for (i) 4.0 (that is to say, technologically advanced) tangible capital goods, (ii) 4.0 intangible capital goods, (iii) standard intangible capital goods, (iv) research, development and innovation activities, and (v) training activities. The tax credit codes shall be defined by a resolution of the Revenues Agency to allow beneficiaries to use the tax credits with the F24 payment model. A Scientific Committee including experts from the Ministry Economy and finance, the Ministry of Economic Development and the Bank of Italy shall be established through the adoption of a ministerial decree to assess the economic impact of Transition 4.0 tax credits.
M1C2-2	Investment 1: Transition 4.0	Target	Transition 4.0 tax credits granted to firms based on tax returns presented in 2021-2022	N/A	Number	0	69 900	Q2	2024	At least 69 900 Transition 4.0 tax credits have been granted to firms in relation to 4.0 tangible capital goods, 4.0 intangible capital goods, standard intangible capital goods, research, development and innovation activities, or training activities, based on tax returns presented between 1 January 2021 and 31 December 2022. It is expected that in particular: - at least 17 700 tax credits for 4.0 tangible capital goods have been granted to firms, based on tax returns presented between 1 January 2021 and 31 December 2022; - at least 27 300 tax credits for 4.0 intangible capital goods have been granted to firms, based on tax returns presented between 1 January 2021 and 31 December 2022; - at least 13 600 tax credits for standard intangible capital goods have been granted to firms, based on tax returns presented between 1 January 2021 and 31 December 2022; - at least 10 300 tax credits for research, development and innovation activities have been granted to firms, based on tax returns presented between 1 January and 31 December 2022; - at least 1 000 tax credits for training activities have been granted to firms, based on tax returns presented between 1 January and 31 December 2022. For firms whose tax year does not correspond to the calendar year, the end of the relevant period for the presentation of the tax returns related to all the above-listed tax credits shall be extended from 31 December 2022 to 30 November 2023.
M1C2-3	Investment 1: Transition 4.0	Target	Transition 4.0 tax credits granted to firms based on tax returns presented in 2021-2023	N/A	Number	69 900	111 700	Q2	2025	At least 111 700 Transition 4.0 tax credits have been granted to firms in relation to 4.0 tangible capital goods, 4.0 intangible capital goods, standard intangible capital goods, research, development and innovation activities, or training activities, based on tax returns presented between 1 January 2021 and 31 December 2023. It is expected that in particular: - at least 26 900 tax credits for 4.0 tangible capital goods have been granted to firms, based on tax returns presented between 1 January 2021 and 31 December 2023; - at least 41 500 tax credits for 4.0 intangible capital goods have been granted to firms, based on tax returns presented between 1 January 2021 and 31 December 2023; - at least 20 700 tax credits for standard intangible capital goods have been granted to firms, based on tax returns presented between 1 January 2021 and 31 December 2023; - at least 20 600 tax credits for research, development and innovation activities have been granted to firms, based on tax returns presented between 1 January 2022 and 31 December 2023; - at least 2 000 tax credits for training activities have been granted to firms, based on tax returns presented between 1 January 2022 and 31 December 2023. For firms whose tax year does not correspond to the calendar year, the end of the relevant period for the presentation of the tax returns related to all the above-listed tax credits shall be extended from 31 December 2023 to 30 November 2024. The baseline refers to the number of Transition 4.0 tax credits that have been granted to firms, based on tax returns presented between 1 January 2021 and 31 December 2022 for 4.0 tangible capital goods, 4.0 intangible capital goods, and standard intangible goods and based on tax returns presented between 1 January and 31 December 2022 for research, development and innovation activities, and training activities. For firms whose tax year does not correspond to the calendar year, also tax returns presented up to 30 November 2023 shall be included in the baseline for all the above-listed tax credits.
M1C2-4	Reform 1: Reform of the Industrial Property System	Milestone	Entry into force of a Legislative Decree aimed at reforming the Italian industrial property code and the relevant implementing acts	Provision in the law indicating the entry into force of the new Industrial property code and provision in the related implementing acts indicating their entry into force	N/A	N/A	N/A	Q3	2023	The new Legislative Decree shall amend the Italian industrial property code (Legislative Decree n. 30 of 10 February 2005) and cover the following areas as a minimum: (i) review of the regulatory framework to strengthen the protection of industrial property rights and simplify procedures, (ii) strengthen the support to companies and research institutions, (iii) enhance skills and competences development, (iv) facilitate knowledge transfer, (v) strengthen innovative services promotion.
M1C2-5	Investment 6: Investment in the Industrial Property System	Target	Projects supported by Industrial Property-related funding opportunities	N/A	Number	0	254	Q4	2025	At least 254 additional projects supported by Industrial Property-related funding opportunities for companies and for research bodies, such as patent-related measures (Brevetti+), Proof of Concept (POC) programs and technology transfer offices (TTOs), 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.
M1C2-6	Reform 2: Annual Competition Laws	Milestone	Entry into force of the Annual Competition Law 2021	Provision indicating the entry into force of the Annual Competition Law 2021.	N/A	N/A	N/A	Q4	2022	The Annual Competition Law shall include, at least, the following key elements, whose implementing measures and secondary legislation (if necessary) shall be adopted and enter into force no later than 31 December 2022. Il shall concern: - Antitrust enforcement - Local public services - Energy - Transport - Waste - Starting a business - Market surveillance Antitrust enforcement: i. Remove additional hurdles to merger-control by further aligning the Italian merger-control rules with EU law. Local public services: ii. Strengthen and make more widespread use of the principle of competition for local public services contracts, in particular in waste and local public transport. iii. Limit direct awards by requiring local public authorities to justify any deviation from the tendering of public service contracts (as per Article 192 of the Public Procurement Code). iv. Provide for the proper regulation of public service contracts by implementing article 19 of Law 124/2015 as a single text on local public services, in particular in waste management. v. Rules and aggregation mechanisms incentivize municipalities’ unions in order to reduce the number of entities and contracting authorities by linking them to the optimal territorial aggregations (“ambiti territoriali ottimali”) and the areas and adequate levels of local and regional public transport services (“bacini e livelli adeguati di servizi di trasporto pubblico locale e regionale”) of at least 350 000 inhabitants. The legal act on local public services that implements Article 19 of Law 124/2015 shall at least: - define public services based on EU law criteria; - provides for general principles of provision, regulation and management of local public services; - establish a general principle of proportionality in the length of public service contracts; - clearly separate the functions of regulation and control and the management of public service contracts; - ensure that local public authorities justify their increase in shares of participated companies for in-house awards; - provide for proper compensation of public service contracts, based on costing overseen by an independent regulators (e.g. ARERA for energy or ART for transport); - limit the average duration of in-house contracts and reduce and harmonize across tendering entities the standard length of tendered contracts, provided that the duration ensures the economic and financial equilibrium of the contracts, also based on the criteria set forth by the Transports Authority. Energy: vi. Make the tendering of concessions contracts mandatory for hydropower and define the regulatory framework for hydropower concessions. vii. Make the tendering of concessions contracts mandatory for gas distribution. viii. Establish transparent and non-discriminatory requirements for the assignment of public spaces for electric charging or for the selection charging point/station operators. ix. Remove regulated tariffs for electricity supply for electric vehicle charging. The competition framework for hydropower concessions shall at least: - Require that important hydropower facilities should be regulated by general and uniform criteria at central level. - Require Regions to define the economic criteria that underpin the duration of concession contracts. -Phase out the possibility to extend contracts (as already ruled by the Italian Constitutional Court). - Require Regions to harmonise the access criteria to the tendering criteria (to create a predictable business environment). Transport: x. Establish clear, non-discriminatory and transparent criteria for the award for port concessions. xi. Remove barriers for port concessionaires to merge port concession activities in several big and medium-sized ports. xii. Remove barriers that prevent concessionaires from providing some of the port services themselves and using their own equipment, without prejudice to the safety of workers, provided that the relevant conditions required to protect safety of workers are necessary and proportionate to the objective of ensuring safety in the port areas. xiii. Simplify the revision of the procedures for the revision of the ports’ authorization plans. xiv. Implement article 27 comma 2 d) of Decree-Law 50/2017, which provides incentives for regions to tender out their regional railway contracts. Waste: xv. Simplify authorization procedures for waste treatment facilities. Starting a business: xvi. Reduce the time of accreditation for providing information about employees, from seven to four days to reduce the number of days to set up a business. Market surveillance: xvii. Consolidation of national market surveillance authorities in not more than ten agencies located in the main regions of Italy, each of them covering all product groups and reporting to the single liaison officer set up according to Regulation 2019/1020 (“Goods Package”). xviii. Require national market surveillance authorities to conduct digitalized product inspections and data collection, to apply artificial intelligence to trace dangerous and illicit products and to identify trends and risks in the single market. xix. Require national market surveillance authorities to include training and the use of the Information and Communication System for the pan-European market surveillance. xx. Establish new accredited laboratories for product testing for all product groups. These laboratories shall conduct testing of e-commerce, physical laboratory testing, joint actions (customs/market surveillance authorities; two or more national market surveillance authorities, national and EU market authorities).
M1C2-7	Reform 2: Annual Competition Laws	Milestone	Entry into force of all energy-related implementing measures and secondary legislation (if necessary)	Entry into force of all energy-related implementing measures and secondary legislation (if necessary)	N/A	N/A	N/A	Q4	2022	Entry into force of all energy-related implementing measures and secondary legislation (if necessary) to: i. Phase out regulated prices for micro-enterprises and households as from 1 January 2023. ii. Adopt flanking measures to support the uptake of competition in electricity retail markets. The flanking measures to ensure the uptake of competition in electricity retail markets shall provide at least the following: - Auction the customer base to level the playing field for new entrants. - Fix a ceiling as a maximum market share available to each supplier; - Allow Italian consumers to ask their energy supplier to disclose their billing data to a third-party providers; - Increase transparency on the electricity bill by giving consumers access to the sub-components of the “spesi per oneri di sistema”; - Remove the requirement for suppliers to collect charges unrelated to the energy sector.
M1C2-8	Reform 2: Annual Competition Laws	Milestone	Entry into force of all implementing measures (included secondary legislation, if necessary) for the effective implementation and application of the measures stemming from the 2021 Annual Competition Law	Entry into force of all secondary legislation, including all necessary regulations for measures stemming from the 2021 Annual Competition Law	N/A	N/A	N/A	Q4	2022	Entry into force of all implementing measures (included secondary legislation, if necessary) for the effective implementation and application of the measures stemming from the 2021 Annual Competition Law.
M1C2-9	Reform 2: Annual Competition Laws	Milestone	Entry into force of the Annual Competition Law 2022	Provision indicating the entry into force of the Annual Competition Law 2022.	N/A	N/A	N/A	Q4	2023	Entry into force of the 2022 Annual Competition Law The Annual competition law shall include, at least, the following key elements, whose implementing measures and secondary legislation (if necessary) shall be adopted and enter into force no later than 31 December 2023. It shall: i) Establish a clear procedure for the adoption, within predetermined deadlines and in any event by 31 December of the relevant period (every two years)(), of the Electricity Network Development Plan for the next decade which ensures completion of the procedure and simplifying the approval process. () The 2021 Electricity Network Development Plan shall be adopted by 31 December 2023. ii) promote the deployment of 2nd generation smart electricity meters; Antitrust: iii) increase the duration for the assessment by the Italian Competition Authority (Autorità Garante della Concorrenza e del Mercato) of concentrations that may significantly impede effective competition pursuant to Article 6 of Law 287/1990, from 45 days to 90 days. Retail: iv) simplification of authorization procedures for promotional sales by undertakings holding outlets in different municipalities. Pharmaceuticals: v) ensure proportionality of authorization requirements for the sale of galenic pharmaceuticals.
M1C2-10	Reform 2: Annual Competition Laws	Milestone	Entry into force of all implementing measures (included secondary legislation, if necessary) for the effective implementation and application of the measures stemming from the 2022 Annual Competition Law	Entry into force of all secondary legislation, including all necessary regulations for measures stemming from the 2022 Annual Competition Law	N/A	N/A	N/A	Q4	2023	Entry into force of all secondary legislation (if necessary), including all necessary regulations for the effective implementation and application of all the aforementioned measures stemming from the 2022 Annual Competition Law.
M1C2-11	Reform 2: Annual Competition Laws	Milestone	Entry into force of the Annual Competition Law 2023	Provision indicating the entry into force of the Annual Competition Law 2023.	N/A	N/A	N/A	Q4	2024	Entry into force of the 2023 Annual Competition Law. The Annual competition Law shall include, at least, the following key elements, whose implementing measures and secondary legislation (if necessary) shall be adopted and enter into force no later than 31 December 2024. It shall include at least the following measures: Highways: i) on access to concessions and termination of contract, the Annual Competition Law shall at least: - make the tendering of concessions contracts mandatory for highways and strengthen the enforceability of the regulatory framework for granting highway concessions and assuring adequate service levels for highway users, without prejudice for in house providing within the limits established by the EU law(); - improve the efficiency of decisional administrative procedures related to the concession contracts; - require a detailed and transparent description of the subject matter of the concession contract -require concession authorities to designate concessions for highway sections, assigned by public procedure, taking into account the estimates of scale efficiency and the cost of highway concessionaires developed by the regulatory authority (Autorità di Regolazione dei Trasporti - ART); - reinforce controls by the Ministry of Infrastructure on the costs and execution of highways infrastructures; - prevent the automatic renewal of concession contracts, also through a substantive improvement of the management efficiency for all the technical and administrative procedures related to the periodical updating of economic and financial plans and the annual implementation of these plans and through the prohibition of the use of the procedures regulated by article 193 of the Public Procurement Code as a means of awarding expired or expiring highway concession contracts; - simplify/clarify the regulation of the contract termination and cancellation conditions, also with a view to preserve an adequate level of contestability of concessions for the relevant market(s); - timely and fully implement access charging regulatory model adopted taking into account: (i) the periodical updates of the multi-annual economic and financial planning of the concessionaires (as approved by the competent regulator), and (ii) the annual roll-out of these plans. - for the termination of the contract in the public interest, the law shall at least provide for an adequate compensation to enable the concessionaire to recoup investments that have not been fully amortised. As for the termination of the contract for serious breach, the law shall provide for an adequate balance between the restoration of damages requested to the concessionaire and a reasonable compensation for investments not yet recouped. Cases of serious breach shall be explicitly identified by law. ii) on charging regulatory model, the Annual Competition Law shall at least: - Require concessionaires to ensure the full and timely implementation of ART's charging regulatory model to calculate access fees. - Require concessionaires to ensure the full and timely implementation of ART's regulatory model on pricing and tendering schemes of sub-concessions for the provision of electric vehicle recharging and other services. - The access fees shall incentivize investments and shall be based on a price cap methodology underpinned by a transparent comparative analysis of costs of the whole economic sector, according to clear, uniform and transparent criteria. iii) on users’ rights, the Annual Competition Law shall at least: - ensure full and timely implementation of ART’s regulatory framework related to safeguard of users’ rights and provision of adequate service levels. iv) on outsourcing of construction works, the Annual Competition Law shall at least: - According to Article 186(2) of Legislative Decree no. 36/2023, establish the obligation for highway concessionaires to entrust third parties, by public evidence procedures, between 50% and 60% of contracts for works, services and supplies. The shares shall be calculated according to the amounts of the economic and financial plans annexed to the concession documents and taking into account the economic size and characteristics of the concessionaire, the duration of award of the concession, its remaining duration, its object, its economic value and the amount of investments made. () as far as in-house entrustments, the law shall: - require a mandatory ex ante verification of the legality of in-house entrustment and forbid the launch of the tender procedure or the in-house entrustments without this verification; - entrust the Authority for the Regulation of Transport (ART) with adequate instruments and powers to perform the above mentioned verifications, and the (legal) support of the National Anti-Corruption Authority (ANAC); - require the installation of a minimum number of electric charging points, the implementation of adequate parking and rest areas for operators of freight transport and full compliance with the regulatory framework devised by ART for the safeguard of users’ rights and provision of adequate service levels, as award criteria of new highway concessions. Cold ironing: v) Entry into force of regulatory incentives to use cold ironing services in ports; List of retail sellers of natural gas: vi) Define the criteria and requirements on access and permanence of undertakings in the list of retail sellers of natural gas established by Article 17 of legislative decree no. 164/2000 aimed at enhancing transparency and supporting the choice of consumers in competitive markets; Insurance: vii) Entry into force of the necessary acts to enable the portability of data for car black boxes between insurers; Starting a business: viii) Review and update of legislation concerning start-ups, innovative SMEs and venture capital (e.g. Start Up Act 2012) in order to rationalise existing legislation, review the definition of start-ups and promote investment in venture capital by private and institutional investors.
M1C2-12	Reform 2: Annual Competition Laws	Milestone	Entry into force of all implementing measures (included secondary legislation, if necessary) for the effective implementation and application of the measures stemming from the 2023 Annual Competition Law	Entry into force of all secondary legislation, including all necessary regulations for measures stemming from the 2023 Annual Competition Law	N/A	N/A	N/A	Q4	2024	Entry into force of all secondary legislation (if necessary), including all necessary regulations for the effective implementation and application of all the measures stemming from the 2023 Annual Competition Law.
M1C2-13	Reform 2: Annual Competition Laws	Milestone	Entry into force of the Annual Competition Law 2024	Provision indicating the entry into force of the Annual Competition Law 2024.	N/A	N/A	N/A	Q4	2025	Entry into force of the 2024 Annual Competition Law. The bill shall be submitted to the Parliament by June 2024. It shall be approved by the Chambers by the end of 2024. Secondary legislation (if necessary) no later than 4Q 2025.
M1C2-14	Reform 2: Annual Competition Laws	Target	Millions of 2G smart meters deployed.	N/A	Number	20	33	Q4	2025	At least 33 million 2G smart meters shall be deployed.
M1C2-14bis	Reform 3: rationalization and simplification of incentives for firms.	Milestone	Publication of the report evaluation all incentives for firms	Publication of the report	N/A	N/A	N/A	Q2	2025	The Ministry of Enterprises and Made in Italy shall publish a report evaluating all incentives and investments for firms. The report shall develop concrete proposals for the rationalization of national incentives.
M1C2-14ter	Reform 3: rationalization and simplification of incentives for firms.	Milestone	Entry into force of primary legislation for the rationalization of firm incentives	Entry into force of primary legislation	N/A	N/A	N/A	Q2	2026	Entry into force of all legislative acts for the rationalization of firm incentives. The reform shall concern incentives at national level.

B.3. Description of the reforms and investments for the loan

Investment 2: Innovation and technology of microelectronics

The objective of the investment is to support the development of the strategic value chain of microelectronics by investing in Silicon Carbide substrates, which is a necessary input for the manufacturing of high-performance power devices. The investment shall be implemented in line with existing State aid rules and is expected to have positive effects on employment.

Investment 3: Fast internet connections (Ultra Broadband and 5G)

The objective of the investment is to complete the national ultra-fast and 5G telecommunications network throughout the national territory. This investment is expected to significantly contribute to the objectives of the digital transition and to reduce the digital divide in Italy.

The investment includes the award of concessions and encompasses five faster connection projects:

1.“Italia a 1 Giga”, which shall provide 1 Gigabit/s in download and 200 Mbit/s in upload connectivity in grey and black next generation access (NGA) market failure areas. These areas shall be defined after the completion of a mapping exercise;

2.“Italia 5G”, which shall provide 5G connections in market failure areas, that are areas where mobile networks have not been deployed; or only 3G networks are available and no 4G and/or 5G mobile networks are planned in the near future; or there is a demonstrated market failure;

3.“Connected schools”, which shall provide school buildings with 1 Gigabit/s broadband connectivity;

4.“Connected health care facilities”, which shall provide 1 Gigabit/s broadband connectivity to public health care facilities;

5.“Connected smaller islands”, which shall provide ultra-broadband connectivity to selected smaller islands lacking fiber links to the continent.

Investment 4: Satellite technology and space economy

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.

Investment 5: Industrial supply chain policies and internationalization

The objective of the investment is to strengthen industrial supply chains, in particular by facilitating access to funding, and to promote the competitiveness of enterprises (notably SMEs), in particular by supporting their internationalisation and strengthening their resilience after the COVID-19 crisis.

The investment consists of two lines of intervention:

1.Refinancing of Fund 394/81 managed by SIMEST. It consists of the re-financing of an existing Fund currently managed by public agency SIMEST, providing for financial support to enterprises, notably SMEs, to support their internationalisation through various tools such as programs to access foreign markets and development of e-commerce.

2.Competitiveness and resilience of supply chains. It consists of financial support to enterprises, through the instrument of the Development Contract, for projects related to key strategic value chains, such as industrial development programs, environmental protection development programs, sustainable mobility and tourism activities.

The above interventions shall be conducted according to investment policies in line with the objectives of Regulation (EU) 2021/241, including in relation to the application of the principle of ‘Do no significant harm’, as further specified in the ‘Do no significant harm’ Technical Guidance (2021/C58/01).

In order to ensure that the measure complies with the ‘Do no significant harm’ Technical Guidance (2021/C58/01), the legal agreement between Italy and the entrusted entity or the financial intermediary in charge of the financial instrument and the subsequent investment policy of the financial instrument shall:

I.require the application of the Commission’s technical guidance on sustainability proofing for the InvestEU Fund; and

II.exclude the following list of activities and assets from eligibility: (i) activities and assets related to fossil fuels, including downstream use 5 ; (ii) activities and assets under the EU Emission Trading System (ETS) achieving projected greenhouse gas emissions that are not lower than the relevant benchmarks 6 ; (iii) activities and assets related to waste landfills, incinerators 7 and mechanical biological treatment plants 8 ; and (iv) activities and assets where the long-term disposal of waste may cause harm to the environment; and

III.require the verification of legal compliance with the relevant EU and national environmental legislation of the projects by the entrusted entity or financial intermediary for all transactions, including those exempted from sustainability proofing.

Investment 7. Support to the production system for the Ecological Transition, Net Zero Technologies, and competitiveness and resilience of strategic supply chains:

This measure shall consist of two sub-investments.

Sub-investment 1:

This sub-investment shall consist of a public investment in a Facility, “Net Zero Technologies”, in order to incentivise private investment and improve access to finance in the fields of energy efficiency, renewable generation for auto-consumption, sustainable transformation of the production process.

The investment shall support:

I)the ecological transition of the national production system at various levels by supporting investments about the strengthening of production chains for devices relevant to the ecological transition (such as batteries, solar panels, wind turbines, heat pumps, electrolysers and devices for carbon capture and storage),

II)the energy efficiency of production processes (also through the production for self-consumption of electricity from renewable sources, with the exclusion of biomass),

III)the sustainability of production processes, also with a view to the circular economy and more efficient use of resources.

The Facility shall operate by providing non-repayable grants, subsidised loans, and interest subsidies directly to the private sector. On the basis of the RRF investment, the Facility aims at initially providing at least EUR 3 600 000 000 of financing.

The Facility shall be managed by Invitalia S.p.A. as the implementing partner. The Facility shall include the following financial instruments:

·Development Contract which shall support Net Zero Technologies projects larger than EUR 20 000 000 by providing grants, interest rate subsidies, and subsidised loans.

·Fund for the Industrial Transformation which shall support projects between EUR 3 000 000 and EUR 20 000 000, by providing grants, interest rate subsidies, and subsidised loans.

In order to implement the investment into the Facility, Italy and Invitalia S.p.A. shall sign an Implementing Agreement that shall include the following content:

1.Description of the decision-making process of the Facility: The final investment and award decisions of the Facility shall be taken by an investment committee or other relevant equivalent governing body and approved by a majority of votes from members who are independent from the government.

2.Key requirements of the associated investment policy, which shall include:

a.The description of the financial products and eligible final beneficiaries.

b.The requirement that all investments supported are economically viable.

c.The requirement to comply with the ‘Do no significant harm’ (DNSH) principle as set out in the DNSH Technical Guidance (2021/C58/01). In particular, the investment policy shall exclude the following list of activities and assets from eligibility: (i) activities and assets related to fossil fuels, including downstream use 9 , (ii) activities and assets under the EU Emission Trading System (ETS) achieving projected greenhouse gas emissions that are not lower than the relevant benchmarks 10 , (iii) activities and assets related to waste landfills, incinerators 11 and mechanical biological treatment plants 12 .

d.The requirement that final beneficiaries of the Facility shall not receive support from other Union instruments to cover the same cost.

3.The amount covered by the Implementing Agreement, the fee structure for the Implementing Partner and the requirement to reinvest any reflows according to the investment policy of the Facility.

4.Monitoring, audit, and control requirements, including:

a.The description of the implementing partner’s monitoring system to report on the investment mobilized.

b.The description of the implementing partner’s procedures that shall ensure the prevention, detection and correction of fraud, corruption, and conflicts of interests.

c.The obligation to verify the eligibility of every operation in accordance with the requirements laid out in the Implementing Agreement before committing to finance an operation.

d.The obligation of carrying out risk-based ex-post audits in accordance with an audit plan of the Invitalia S.p.A. These audits shall verify:

I.that the control systems are effective, including the detection of fraud, corruption, and conflict of interests;

II.compliance with the DNSH principle, the State Aid rules, the climate target requirements; and

III.that the requirement that final beneficiaries of the Facility have not received support from other Union instruments to cover the same cost is respected. The audits shall also verify the legality of the transactions and that the conditions of the applicable Implementing Agreement are being respected.

5. Requirements for climate investments carried out by the implementing partner: at least EUR 1 787 500 000 of the RRF investment into the Facility shall contribute to the climate change objectives in accordance with Annex VI to the RRF Regulation 13 .

Sub-investment 2:

This sub-investment shall consist of a public investment in a Facility, “Competitiveness and resilience of strategic supply chains”, in order to incentivise private investment and improve access to finance to strenghten industrial supply chains.

The investment shall support projects related to key strategic value chains, such as industrial development programs and environmental protection development programs.

The Facility shall be managed by Invitalia S.p.A. as the implementing partner.

In order to implement the investment into the Facility, Italy and Invitalia shall sign an Implementing Agreement that shall include the following content:

2.Key requirements of the associated investment policy, which shall include:

I)The description of the financial product(s) and eligible final beneficiaries.

II)The requirement that all investments supported are economically viable.

III)The requirement to comply with the ‘Do no significant harm’ (DNSH) principle as set out in the DNSH Technical Guidance (2021/C58/01). In particular, the investment policy shall exclude the following list of activities and assets from eligibility: (i) activities and assets related to fossil fuels, including downstream use 14 , (ii) activities and assets under the EU Emission Trading System (ETS) achieving projected greenhouse gas emissions that are not lower than the relevant benchmarks 15 , (iii) activities and assets related to waste landfills, incinerators 16 and mechanical biological treatment plants 17 .

IV)The requirement that final beneficiaries of the Facility shall not receive support from other Union instruments to cover the same cost.

3.The amount covered by the Implementing Agreement, the fee structure for the Implementing Partner and the requirement to reinvest any reflows according to the investment policy of the Facility.

4.Monitoring, audit, and control requirements, including:

a.The description of the implementing partner’s monitoring system to report on the investment mobilized.

b.The description of the implementing partner’s procedures that shall ensure the prevention, detection and correction of fraud, corruption, and conflicts of interests.

c.The obligation to verify the eligibility of every operation in accordance with the requirements laid out in the Implementing Agreement before committing to finance an operation.

d.The obligation of carrying out risk-based ex-post audits in accordance with an audit plan of the Invitalia SPA. These audits shall verify:

I.that the control systems are effective, including the detection of fraud, corruption, and conflict of interests;

II.compliance with the DNSH principle, the State Aid rules, the climate target requirements; and

The implementation of the measure shall be completed by 31 August 2026.

B.4. Milestones, targets, indicators, and timetable for monitoring and implementation for the loan

Sequential Number	Measure	Milestone / Target	Name	Qualitative indicators (for milestones)	Quantitative indicators (for targets)			Indicative timeline for completion		Description of each milestone and target
					Unit of measure	Baseline	Goal	Quarter	Year
M1C2-15	Investment 2: Innovation and technology of microelectronics	Target	Production capacity of Silicon Carbide substrates	N/A	Number	0	374 400	Q2	2026	Realisation of an additional production capacity of at least 374 400 Silicon Carbide substrates/year. The satisfactory fulfilment of the target also depends on the employment of at least 700 additional people linked to the additional capacity.
M1C2-16	Investment 3: Fast internet connections (Ultra-Broadband and 5G)	Milestone	Award of all public contracts for faster connection projects	Notification of the award of all public contracts for faster connection projects	N/A	N/A	N/A	Q2	2022	Notification of the award of all public contracts for faster connection projects, which shall consist of (i) “Italia a 1 Giga”, (ii) “Italia 5G”, (iii) “Connected schools”, (iv) “Connected healthcare facilities”; and (v) “Connected smaller islands”.
M1C2-17	Investment 3: Fast internet connections (Ultra-Broadband and 5G)	Target	House numbers provided with 1 Gbps connectivity	N/A	Number	0	3 400 000	Q2	2026	At least 3 400 000 additional house numbers (among which at least 450 000 scattered households, that is to say located in remote areas) connected with at least 1 Gbps connectivity via Fiber-to-the-home/building (FTTH/B), Fixed Wireless Access (FWA)
M1C2-18	Investment 3: Fast internet connections (Ultra-Broadband and 5G)	Target	School buildings and healthcare facilities provided with 1 Gbps connectivity	N/A	Number	0	17 700	Q2	2026	At least additional 9 000 schools and 8 700 public healthcare facilities provided with at least 1 Gbps connectivity.
M1C2-19	Investment 3: Fast internet connections (Ultra-Broadband and 5G)	Target	Islands provided with ultra-broadband connectivity	N/A	Number	0	18	Q4	2024	At least additional 18 islands lacking fiber links to the continent provided with ultra-broadband connectivity trough new optical backhaul.
M1C2-20	Investment 3: Fast internet connections (Ultra-Broadband and 5G)	Target	Extra-urban roads and corridors enabled with 5G coverage	N/A	Number	0	12 600	Q2	2026	At least additional 12 600 km of extra-urban roads and corridors enabled with 5G coverage.
M1C2-21	Investment 3: Fast internet connections (Ultra-Broadband and 5G)	Target	Market failure areas enabled with 5G coverage	N/A	Number	0	1 400	Q2	2026	At least additional 1 400 sqkm of market failure populated areas enabled with 5G coverage, out of which, at least 500 sqkm provided with 5G coverage.
M1C2-22	Investment 4: Satellite Technology and Space economy	Milestone	Award of all public contracts for satellite technology and space projects	Notification of the award of all public contracts for satellite technology and space projects	N/A	N/A	N/A	Q1	2023	Notification of the award of all public contracts for satellite technology and space projects, which shall consist of (i) Satcom, (ii) Earth Observation, (iii) Space Factory, and (iv) In-Orbit economy.
M1C2-23	Investment 4: Satellite Technology and Space economy	Target	Ground telescopes, operational SST Centre, space factory and liquid propulsion demonstrator deployed	N/A	Number	0	6	Q2	2026	At least additional three high-performance telescopes able to identify space objects, one operational Space Surveillance and Tracking (SST) Centre (network of observation and tracking of space debris), one Space Factory (integrated lines for Manufacturing, Assembly, Integration and Testing (M-AIT) of small satellites), one liquid propulsion demonstrator for new generation of launchers deployed.
M1C2-24	Investment 4: Satellite Technology and Space economy	Target	Constellations or proof of concept of constellations deployed	N/A	Number	0	2	Q2	2026	At least additional two constellations or proof of concept of constellations deployed under Satcom and Earth Observation initiatives
M1C2-25	Investment 4: Satellite Technology and Space economy	Target	Services provided to public administrations	N/A	Number	0	8	Q2	2026	At least additional eight services provided to public administrations stemming from supported space initiatives, such as coastal service and marine-coastal monitoring, air quality service, ground movement service, monitoring service coverage and land use, hydro-meteorological service, water resource service, emergency services, security services.
M1C2-26	Investment 5.1: Refinancing and remodelling of Fund 394/81 managed by SIMEST	Milestone	Entry into force of the re-financing of Fund 394/81 and adoption of the investment policy	Provision in the law indicating the entry into force of the Law Decree(s) refinancing the grant and loan component of Fund 394/81 Approval of Decision of the Board establishing the selection criteria of the projects to be financed	N/A	N/A	N/A	Q3	2021	The Law Decree(s) shall provide for the refinancing of the grant and loan component of Fund 394/81. The Board of the Fund shall approve a Decision establishing the investment policy. The investment policy linked to the refinancing of Fund 394/81 shall define as a minimum: (i) the nature and scope of the projects supported, which shall be in line with the objectives of Regulation (EU) 2021/241; the terms of reference shall include eligibility criteria to ensure compliance with the ‘Do no significant harm’ Technical Guidance (2021/C58/01) of supported projects under this measure through the use of sustainability proofing, an exclusion list, and the requirement of compliance with the relevant EU and national environmental legislation, (ii) the type of operations supported, (iii) the targeted beneficiaries, with a prevalence of SMEs, and their eligibility criteria, (iv) provisions to re-invest potential reflows for similar policy objectives, also beyond 2026, in case they are not re-used to re-pay interest rates stemming from loans provided under Regulation (EU) 2021/241. The contractual agreement with the entrusted entity or financial intermediary shall require the use of the ‘Do no significant harm’ Technical Guidance (2021/C58/01).
M1C2-27	Investment 5.1: Refinancing and remodelling of Fund 394/81 managed by SIMEST	Target	SMEs that received support from Fund 394/81	N/A	Number	0	4 000	Q4	2021	At least additional 4 000 SMEs received support from Fund 394/81 starting from 1 January 2021.
M1C2-28	Investment 5.2: Competitiveness and resilience of supply chains	Milestone	Entry into force of a decree including the investment policy of the Development Contracts	Provision in the law indicating the entry into force of the decree	N/A	N/A	N/A	Q1	2022	The investment policy of the Development Contracts shall define as a minimum: (i) the nature and scope of the projects supported, which shall be in line with the objectives of Regulation (EU) 2021/241; the terms of reference shall include eligibility criteria to ensure compliance with the ‘Do no significant harm’ Technical Guidance (2021/C58/01) of supported projects under this measure through the use of sustainability proofing, an exclusion list, and the requirement of compliance with the relevant EU and national environmental legislation, (ii) the type of operations supported, (iii) the targeted beneficiaries and their eligibility criteria, (iv) provisions to re-invest potential reflows for similar policy objectives, also beyond 2026, in case they are not re-used to re-pay interest rates stemming from loans provided under Regulation (EU) 2021/241. The contractual agreement with the entrusted entity or financial intermediary shall require the use of the ‘Do no significant harm’ Technical Guidance (2021/C58/01).
M1C2-29	Investment 5.2: Competitiveness and resilience of supply chains	Target	Development Contracts approved	N/A	Number	0	40	Q4	2023	At least 40 Development Contracts approved, in line with their investment policy. The satisfactory fulfilment of the target also depends on the activation of at least EUR 1 500 million of investments.
M1C2-30	Investment 7. Support to the production system for the Ecological Transition, Net Zero Technologies, and competitiveness and resilience of strategic supply chains	Milestone	Implementing Agreement	Entry into force of the Implementing Agreement	N/A	N/A	N/A	Q4	2024	Entry into force of the Implementing Agreement.
M1C2-31	Investment 7 Support to the production system for the Ecological Transition, Net Zero Technologies, and competitiveness and resilience of strategic supply chains	Milestone	The Ministry of Enterprises and Made in Italy has completed the investment	Certificate of transfer	N/A	N/A	N/A	Q4	2024	Italy shall transfer EUR 2 500 000 000 to Invitalia for the Facility. Of which: ·EUR 2 000 000 000 for the sub investment 1 Net Zero Technologies; ·EUR 500 000 000 for the sub investment 2 Competitiveness of and resilience of strategic supply chains.
M1C2-32	Investment 7. Support to the production system for the Ecological Transition, Net Zero Technologies, and competitiveness and resilience of strategic supply chains	Target	Legal agreements signed with final beneficiaries	Entry into force of legal financing agreements	Percentage	0	100	Q2	2026	Invitalia shall have entered into legal financing agreements with final beneficiaries for an amount necessary to use 100% of the EUR 2 500 000 000 of RRF investment (taking into account management fees). In particular: ·EUR 2 000 000 000 for the sub investment 1 Net Zero Technologies; ·EUR 500 000 000 for the sub investment 2 Competitiveness of and resilience of strategic supply chains.

C. MISSION 1 COMPONENT 3: Tourism and Culture 4.0.

This component of the Italian recovery and resilience plan focuses on relaunching two sectors heavily hit by the Covid crisis: culture and tourism. The measures related to the culture sector aim at making cultural sites more accessible both digitally and physically, more energy efficient and safer with respect to natural disasters, at supporting the recovery of the cultural and creative sectors, including by supporting the attractiveness of small cultural sites and rural architecture as also to enhance territorial cohesion. Three sets of measures are envisaged: i) interventions to develop the cultural heritage for the next generation, including investment for the digital transition and to improve the energy efficiency of cultural sites, ii) culture-led regeneration of small historical sites, religious and rural heritage; iii) interventions for cultural and creative industries 4.0. Measures related to tourism aim at enhancing the competitiveness of the sector, including by reducing the fragmentation of the sector and enhancing the economies of scale, improving and upgrading the standards of the hospitality sector, encouraging digital innovation and the use of new technologies by operators, and support the green transition of the sector. In this respect, measures are envisaged to support firms, including SMEs, working in the tourism sector and tourist operators, including through investment in digital tools.

The investments and reforms under this component shall contribute addressing the Country- Specific Recommendations addressed to Italy, in particular on the need to “promote private investment to foster the economic recovery and focus investment on the green and digital transition” (Country Specific Recommendation 3, 2020). They also support social and territorial cohesion and the competitiveness of the Italian economy, while promoting the digitalisation and sustainability of the tourism sector.

C.1. Description of the reforms and investments for non-repayable financial support

Investment 1.1 Digital Strategy and Platforms of Culture Heritage

The measure includes actions to digitise the Italian cultural heritage, as to improve access to cultural resources and digital services.

The intervention shall create a new national digital infrastructure to collect, integrate and retain digital resources, making them available for public use through dedicated platforms. Interventions on “physical” heritage shall be accompanied by the digitisation of museums, archives, libraries and cultural sites, to enable citizens to explore new forms of benefitting from the cultural heritage.

Investment 1.2: Removal of physical and cognitive barriers in museums, libraries and archives to enable wider access and participation in culture

The measure aims at removing architectural, cultural and cognitive barriers in a number of Italian cultural institutions. Interventions shall be combined with training for administrative staff and cultural operators, promoting a culture of accessibility and developing expertise on legal aspects, reception, cultural mediation and promotion.

Investment 1.3: Improve energy efficiency, in cinema, theatres and museums

The measure shall improve the energy efficiency of buildings linked to the cultural and creative sector. They are often found in outdated, energy inefficient facilities that generate high maintenance costs related to air-conditioning, lighting, communication and safety. The investment shall finance actions to improve the energy efficiency of Italian museums, cinemas and theatres (both public and private).

Reform 3.1: Adoption of minimum environmental criteria for cultural events

The aim of the reform is to improve the ecological footprint of cultural events (such as exhibitions, festivals, cultural events and musical events) by including social and environmental criteria in public procurement for cultural events funded, promoted or organised by the public authority.

Investment 3.3: Capacity building for culture operators to manage the digital and green transition

The overall objective of the investment is to support the recovery of the cultural and creative sectors. This consists of two interventions.

The first intervention (‘Supporting the recovery of cultural activities by encouraging innovation and the use of digital technology throughout the value chain’) aims to support cultural and creative operators to implement digital strategies and to increase their management capacities.

The second intervention (‘Promoting a green approach throughout the cultural and creative chain’) aims to encourage an environmentally sustainable approach throughout the chain, reducing the ecological footprint, promoting innovative and inclusive eco-design, including in the context of the circular economy, in order to steer the public towards more responsible environmental behaviour.

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 18 ; (ii) activities under the EU Emission Trading System (ETS) achieving projected greenhouse gas emissions that are not lower than the relevant benchmarks 19 ; (iii) activities related to waste landfills, incinerators 20 and mechanical biological treatment plants 21 ; 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 may be selected.

Investment 4.1: Digital Tourism Hub

The aim of the measure is to create a Digital Tourism Hub, accessible through a dedicated web platform, enabling the entire tourism ecosystem in order to enhance, integrate and promote its own offer. The investment shall finance a new digital infrastructure, and support enterprises with data analytics tools provided by the National Observatory of Tourism.

Finally, the measure shall also envisage the creation of a competence center to support acceleration programs.

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 22 ; (ii) activities under the EU Emission Trading System (ETS) achieving projected greenhouse gas emissions that are not lower than the relevant benchmarks 23 ; (iii) activities related to waste landfills, incinerators 24 and mechanical biological treatment plants 25 ; 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 can be selected.

Reform 4.1: Regulation ordering of the professions of tourist guides

The investment in the Digital Tourism Hub is complemented by a reform to streamline the touristic guides regulations. The measure provides, with due regard for local regulation, a professional organisation for tourist guides and their area of origin. The systematic and uniform application of the reform would make it possible to regulate the fundamental principles of the profession and to standardize the levels of service provision throughout the national territory, with a positive effect on the market. The reform shall include training and further training in order to best support the offer.

C.2. Milestones, targets, indicators, and timetable for monitoring and implementation for non-repayable financial support

Sequential Number	Measure	Milestone / Target	Name	Qualitative indicators (for milestones)	Quantitative indicators (for targets)			Indicative timeline for completion		Description of each milestone and target
					Unit of measure	Baseline	Goal	Quarter	Year
M1C3-1	Investment 1.1 Digital Strategy and Platforms for Cultural Heritage	Target	Users trained through the cultural heritage e-learning platform	N/A	Number	0	30 000	Q4	2025	The target users trained shall measure the effectiveness of the training offer to be delivered digitally for the lifelong learning program. The type of interventions include: production of training courses, implementation by frontal teaching and e-learning programs designed on the basis of a competence assessment of different target groups of learners (corresponding to three course levels: foundational skills, specialist skills, managerial skills). The recipients of this measure are: employees of the ministry, employees of cultural institutes of local authorities, freelance cultural operators.
M1C3-2	Investment - 1.1 Digital Strategy and Platforms for Cultural Heritage	Target	Digital resources produced and published in the Digital Library	N/A	Number	0	65 000 000	Q4	2025	The target digital resources shall measure the increase in the amount of digitized cultural goods, whose digital reproductions may be used online through digital technologies. The kind of digital resources to be completed includes: digitisation of books and manuscripts, documents and photographs, artworks and historical and archaeological artefacts, monuments and archaeological sites, audio-video materials, including normalization of previous digitisations and metadata Recipients: museums, archives, libraries and cultural institutes
M1C3-3	Investment - 1.2 Removal of physical and cognitive barriers in museums, libraries and archives to enable wider access to and participation in culture	Target	Interventions for the improvement of physical and cognitive accessibility in places of culture	N/A	Number	0	617	Q2	2026	352 museums, monuments/, archaeological areas and parks, 129 archives, 46 libraries and 90 non-state cultural sites. The interventions concern physical interventions to remove architectural barriers and the installation of technological tools to allow use for subjects with reduced sensory abilities (tactile, sound, olfactory experiences) 37% of the interventions shall be done in Southern regions
M1C3-4	Investment - 1.3 Improve energy efficiency in cinema, theatres and museums	Target	Interventions on State museums and cultural sites, theatrical halls and cinemas concluded (first batch)	N/A	Number	0	80	Q3	2023	The indicator refers to the number of interventions concluded as proved by the certification of regular execution of the works. The type of interventions to be completed include: - technical and economic-financial planning, energy audits, initial environmental analyses, environmental impact assessment, reliefs and assessments aimed at identifying critical issues, identification of the consequent interventions for the improvement of energy performance; - interventions on the building envelope; - interventions of replacement/acquisition of equipment, tools, systems, devices, digital application software, as well as accessory instrumentation for their operation, the acquisition of patents, licenses and know-how; - installation of intelligent systems for remote control, regulation, management, monitoring and optimisation of energy consumption (smart buildings) and polluting emissions also through the use of technological mixes.
M1C3-5	Investment – 1.3 Improve energy efficiency in cinema, theatres and museums	Target	Interventions on State museums and cultural sites, theatrical halls and cinemas are concluded (second batch)	N/A	Number	0	420	Q4	2025	The indicator refers to 55 interventions on State museums and cultural sites, 230 theatrical halls and 135 cinemas concluded with the certification of regular execution of the works. The type of interventions to be completed include: - technical and economic-financial planning, energy audits, initial environmental analyses, environmental impact assessment, reliefs and assessments aimed at identifying critical issues, identification of the consequent interventions for the improvement of energy performance; - interventions on the building envelope; - interventions of replacement/acquisition of equipment, tools, systems, devices, digital application software, as well as accessory instrumentation for their operation, the acquisition of patents, licenses and know-how; - installation of intelligent systems for remote control, regulation, management, monitoring and optimisation of energy consumption (smart buildings) and polluting emissions also through the use of technological mixes.
M1C3-6	Reform – 3.1 Minimum Environmental Criteria for Cultural events	Milestone	Entry into force a decree defining social and environmental criteria in public procurement tenders concerning cultural events publicly financed	Provision in the decree mentioning the entry into force of decree for the adoption of minimum environmental criteria for cultural events	N/A	N/A	N/A	Q4	2022	Criteria shall be adopted for the following aspects: reduction in the use of paper and prints, use of eco-friendly materials, stage set-up made with recycled and reused materials and sustainable furnishings, low environmental impact gadgets, selection of the location based on the protection of biodiversity, low environmental impact catering services, transport to reach the event and transport of materials, energy consumption for the organization of the event. Social criteria promoting accessibility and inclusion shall include : the promotion of accessibility for persons with disabilities; the promotion of opportunities for youth employment, for the long-term unemployed, for people belonging to disadvantaged groups (such as migrant workers and ethnic minorities) and for people with disabilities ; to ensure equal access to procurement for businesses whose owners or employees belong to ethnic or minority groups, such as cooperatives, social enterprises and non-profit organizations; the promotion of “decent work” understood as the right to productive and freely chosen work, to fundamental principles and rights at work, to decent wages, social protection and social dialogue. The reform shall cover cultural events such as exhibitions, festivals and performing arts events.
M1C3-7	Investment – 3.3 Capacity building for culture operators to manage the digital and green transition.	Milestone	Award of all public contracts with the implementing organisation/beneficiaries for all interventions to manage the digital and green transition of cultural operators	Notification of the award of all public contracts for the organisations and networks that shall be in charge of the realization of the capacity building activities	N/A	N/A	N/A	Q4	2023	The selected implementing bodies shall be specialized organizations or networks that possess skills and experience both in the field of training and in the field of cultural production, environment, cultural management and training. Notification of the award of all public contracts for projects selected under the competitive calls for proposals, shall be 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
M1C3-8	Investment – 4.1 Digital Tourism Hub	Milestone	Award of the contracts for the development of the Digital Tourism Portal	Notification of the award of all public contracts for the development of the Digital Tourism Portal	N/A	N/A	N/A	Q4	2021	Notification of the award of (all) public contracts for the development of the Digital Tourism Portal. The Digital Tourism Portal shall upgrade the current Italia.it portal through the implementation of a cloud and open architecture, greatly favouring interconnection with the ecosystem. The upgraded portal shall include: the creation of a new front-end interface and navigation tree; the review of the layout, structure and functionalities of the sections, pages and articles; the introduction of maps; multilingual management (at the time of the switch, the portal will be presented in Italian and English). The integration of the other, currently supported, languages is expected in the months that immediately follow the commissioning. Award of the contracts to the projects selected under the competitive calls for proposals, 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.
M1C3-9	Investment 4.1 Digital Tourism Hub	Target	Involvement of touristic operators in the Digital Tourism Hub	N/A	Number	0	20 000	Q2	2024	The number of tourism operators involved (such as Hotel, tour operator, and firms as defined by ATECO codes 55.00.00; 56.00.00; 79.00.00 and other structures belonging to the sector) corresponds to 4% of the estimated 500 000 Italian operators (upskilling, training activities, communication, data analysis, solutions to support innovation). Al least 37% of the involved touristic operators shall be located in the South.
M1C3-10	Reform 4.1 Regulation ordering of the professions of tourist guides.	Milestone	Definition of a national standard for tourist guides	The definition of the minimum national standard shall not imply the creation of a new regulated profession	N/A	N/A	N/A	Q2	2024	The definition of the minimum national standard shall not imply the creation of a new regulated profession. The reform shall also provide for training and professional updating in order to better support the offer. The reform shall qualify as a method for the acquisition of a unique professional qualification adopted with uniform standards at national level through a National Law and subsequent implementing Ministerial Decrees of Understanding State Regions.
M1C3-11	Investment 1.3 – Improve energy efficiency in cinema, theatres and museums	Milestone	Entry into force of the Ministry of Culture decree for the allocation of resources: to improve energy efficiency in places of culture	Provision in the decree indicating the entry into force of the Ministry of Culture (MIC) decree for the allocation of resources to improve energy efficiency in places of culture	N/A	N/A	N/A	Q2	2022	Places of culture refers to cinemas, theatres and museums. (Inv. 1.3) For museums and places of culture to improve energy efficiency, the intervention is implemented through a recognition of the project proposals at State cultural sites Ministry of Culture (MiC) in the Objective 1 case. Otherwise, the identification of non-state institutions, in Objective 2 and 3 cases, shall be carried out through calls for tenders The award of the contracts to the projects selected under the competitive calls for proposals, shall be 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

C3. Description of the reforms and investments for the loan

Investment 2.1: Attractiveness of Small Historic Towns

This investment is integrated in the “Piano Nazionale Borghi”, a programme to support the economic/social development of disadvantaged areas based on the cultural regeneration of small towns and the revitalisation of tourism. The actions are structured around integrated cultural locally-based projects.

The measures shall focus on: i) restoring historical heritage, upgrading open public spaces (e.g. removing architectural barriers, improving urban furniture), creating small cultural services, including for tourism purposes; ii) creating and promoting new routes (e.g. thematic routes, historical routes) and guided tours shall be encouraged; iii) the introduction of financial support for cultural, creative, touristic, commercial, agri-food and artisanal activities, aimed at revitalising local economies by enhancing local products, knowledge and techniques.

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 26 ; (ii) activities under the EU Emission Trading System (ETS) achieving projected greenhouse gas emissions that are not lower than the relevant benchmarks 27 ; (iii) activities related to waste landfills, incinerators 28 and mechanical biological treatment plants 29 ; 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.

Investment 2.2: Protection and enhancement of rural architecture and landscape

This investment shall stimulate a systematic process of upgrading historic rural buildings (private or third sector entities) and landscape protection.

Many rural buildings and agricultural structures have undergone a progressive process of abandonment, degradation and alterations which have undermined their distinctive characteristics and their relationship with their surroundings. By restoring the rural building stock, the measure shall improve the quality of the countryside’s landscape by returning to the community an underused building stock which is not accessible to the public.

Investment 2.3: Programs to enhance the identity of places: parks and historic gardens

This investment aims at countering urban decline and restoring shared identities of places, creating new opportunities to revive local economies and mitigate the impact of the crisis and to enhance skills for the management and maintenance of historic parks and gardens.

The investment envisages a refurbishment of historic parks and gardens and puts in place extensive knowledge and rehabilitation of Italian historic parks and gardens with a view to their proper maintenance, management and public use. Resources shall be allocated for the regeneration of these sites and the training of local staff who may treat/preserve them over time.

Beyond the cultural and historical value, gardens and historic parks contribute to enhancing environmental values and play an important role in preserving conservation, oxygen generation, reduction of environmental pollution and noise, and microclimate regulation.

Investment 2.4: Seismic safety of places of worship, restoration of FEC heritage and shelters for art works (Recovery Art)

An anti-seismic preventive action plan shall be put in place in order to significantly reduce the risk on worship places and thus avoiding the potential restoration cost after disasters, as well as the permanent loss of many assets. The action plan has three lines of actions: the protection of places of worship against seismic risks; the restoration of the heritage of the Fund for places of worship (FEC)and the construction of warehouses as shelter for art works in case of catastrophic events.

The investment also envisages the creation of the National Functional Centre for the Protection of Cultural Assets from Human and Natural Risks (CEFURISC), allowing for a more synergistic use of existing technologies and environmental systems for monitoring, surveillance and management of cultural sites.

Investment 4.2: Funds for the competitiveness of tourism enterprises

The measure aims at supporting firms operating in the tourism sector. It includes a tax credit for works aimed at improving accommodation facilities, a guarantee fund to facilitate access to credit for firms in the sector (through a dedicated section of the SMEs Guarantee Fund), the activation of the EIB Thematic Fund for Tourism to support innovative investment in the sector, an equity fund (National Tourism Fund) for the redevelopment of properties with high tourist potential. An additional financial instrument (FRI - Fondo Rotativo), shall complement the abovementioned measures to support firms operating in the tourism sector. The above interventions shall be conducted according to investment policies in line with the objectives of Regulation (EU) 2021/241, including in relation to the application of the principle of ‘do no significant harm’, as further specified in the Technical guidance on the application of ‘do no significant harm’ under the Recovery and Resilience Facility Regulation (2021/C58/01).

In order to ensure that the measure complies with the ‘Do no significant harm’ Technical Guidance (2021/C58/01), the legal agreement and the subsequent investment policy of the financial instruments shall

I.require the application of the Commission’s technical guidance on sustainability proofing for the InvestEU Fund; and

II.exclude the following list of activities: (i) activities related to fossil fuels, including downstream use 30 ; (ii) activities under the EU Emission Trading System (ETS) achieving projected greenhouse gas emissions that are not lower than the relevant benchmarks 31 ; (iii) activities related to waste landfills, incinerators 32 and mechanical biological treatment plants 33 ; and (iv) activities where the long-term disposal of waste may cause harm to the environment; and

Investment 3.2: Development of the film industry (Cinecittà project)

The objective of the investment is to enhance the competitiveness of the Italian film and audiovisual sector. The project aims to mitigate the social and economic impact of the crisis with the objective of enhancing economic growth, employment and competitiveness, including through action on training, with three lines of action.

·Line A: Construction of new studios and recovery of existing ones and annexes, including high-tech solutions.

·Line B: Innovative investment to enhance the production and training activities of Experimental Centre for Cinematography, including new tools for audiovisual production, internationalization, cultural and educational exchanges; developing infrastructure (virtual production live set) for professional and educational use through e-learning, digitization and modernization of the building and plant stock, in particular with a view to fostering the technological and environmental transformation; preservation and digitization of audiovisual heritage

·Line C: Strengthening professional skills and competences in the audiovisual sector, in 3 professional macro-areas: business/managerial; creative/artistic; technical workers.

Investment 4.3: Caput Mundi Next Generation EU for touristic great events.

The project shall increase the number of accessible tourist sites, create valid and qualified tourist and cultural alternatives with respect to the crowded central areas, as well as increase the use of digital technologies, enhance green areas and the sustainability of tourism. The investment envisages six lines of interventions:

1.“Roman Cultural Heritage for EU-Next Generation”, covering the regeneration and restoration of cultural and urban heritage and complexes of high historical-architectural value of the city of Rome;

2.“Jubilee paths” (from pagan to Christian Rome), targeted to the enhancement, safety, anti-seismic consolidation, restoration of places and buildings of historical interest and archaeological pathways;

3.#LaCittàCondivisa, covering the redevelopment of sites in peripheral areas;

4.#Mitingodiverde, covering interventions on parks, historical gardens, villas and fountains;

5.#Roma 4.0, covering the digitalization of cultural services and the development of apps for tourists;

6.#Amanotesa, aimed at increasing the supply of cultural offer to peripheries for social integration.

C.4. Milestones, targets, indicators, and timetable for monitoring and implementation for the loan

Sequential Number	Related Measure (Reform or Investment)	Milestone / Target	Name	Qualitative indicators (for milestones)	Quantitative indicators (for targets)			Indicative timeline for completion		Description of each milestone and target
					Unit of measure	Baseline	Goal	Quarter	Year
M1C3-12	Investment 2.1 – Attractiveness of small historic town	Milestone	Entry into force of the Ministry of Culture decree for the allocation of resources to municipalities for the attractiveness of Small Historic Towns	Provision in the decree indicating the entry into force of the Ministry of Culture decree for the allocation of resources to municipalities for the attractiveness of Small Historic Towns	N/A	N/A	N/A	Q2	2022	The Ministry of Culture decree shall allocate resources to municipalities for the attractiveness of Small Historic Towns. The municipalities involved to enhance the attractiveness of small historic town refer to the 250 municipalities/villages that have transmitted to the Ministry of Culture the intervention programs The criteria for the selection of the 250 villages (Inv. 2.1) shall be shared by MiC, Regions, ANCI and Internal Areas which; preliminarily they shall identify the territorial areas eligible for (Inv2.1) due to the complementarities between the various programs. Following, the selection of the villages shall be made on the basis of a) territorial, economic and social criteria (statistical indicators) b) the capacity of the project to impact on tourist attractiveness and to increase cultural participation. The statistical indicators taken into consideration are: demographic size (municipalities with pop. < 5 000 inhab.) and trend; tourist flows, museum visitors; the consistency of the tourist offer (hotels and other hotels, B&Bs, rooms and rental accommodation .); the demographic trend of the municipality; the degree of cultural participation of the population; the consistency of cultural, creative and tourism enterprises (profit and non-profit) and related employees. The award of the contracts to the projects selected under the competitive calls for proposals, shall include the following: a) Eligibility criteria that ensure that the selected projects comply 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. b) Commitment that the climate contribution of the investment as per the methodology in Annex VI of the Regulation (EU) 2021/241 shall account for at least 25% of the total cost of the investment supported by the RRF. c) Commitment to report on the implementation of the measure halfway through the life of the scheme and the end of the scheme.
M1C3-13	Investment 2.2 – Protection and enhancement of rural architecture and landscape	Milestone	Entry into force of the Ministry of Culture decree for the allocation of resources: for the protection and enhancement of rural architecture and landscape	Provision in the decree indicating the entry into force of the Ministry of Culture (MIC) decree for the allocation of resources for the protection and enhancement of rural architecture and landscape	N/A	N/A	N/A	Q2	2022	The Ministry of Culture decree shall allocate the resources for the protection and enhancement of rural architecture and landscape. For the protection and enhancement of rural architecture and landscape (Inv 2.2) the selection of the assets to be recovered shall privilege the investment’s ability to generate effects on the conservation objectives of landscape values. Priority shall be given: - to assets located in territorial areas of high landscape value (assets located in areas of landscape interest or of notable public interest (art.142-139 of DLgs 42/2004), to the landscapes subject to UNESCO recognition, FAO GIAHS; - to assets already available for public use or that the owner agrees to be accessible including within local and integrated circuits and networks; - to “area projects”, presented by aggregated subjects, able to ensure more effectively the achievement of landscape redevelopment objectives; - projects located in areas that enhance the integrations and synergies with other candidates for the PNRR and other plans / projects of a territorial nature supported by the programming national (Ministry of Culture). For the purposes of defining the types of rural architecture subject to the intervention, the Decree of the MiBAC 6 October 2005 (in implementation of the Law of 24 December 2003, n.378 –protection and enhancement of rural architecture), may be of reference. Preliminarily, the criteria may concern: the state of conservation of the assets, the levels of use, the role that these assets play in territorial and urban contexts. The award of the contracts to the projects selected under the competitive calls for proposals, shall be 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.
M1C3-14	Investment 2.3 – Programmes to enhance the identity of places, parks and historic gardens	Milestone	Entry into force of the Ministry of Culture decree for the allocation of resources: for projects to enhance the identity of places, parks and historic gardens	Provision in the decree indicating the entry into force of the Ministry of Culture decree for the allocation of resources for projects to enhance the identity of places, parks and historic gardens	N/A	N/A	N/A	Q2	2022	The Ministry of Culture decree shall assign the resources to the responsible administrations for projects to enhance the identity of places, parks and historic gardens. The historic parks and gardens (Inv. 2.3) subject to intervention are exclusively protected cultural assets, for which artistic or historical interest has been declared. They may belong to both state Ministry of Culture (MiC) and non-state assets. The selection shall be made on the basis of criteria that shall be defined by a technical-scientific coordination group, composed by representatives of MiC, University, ANCI, sectorial Associations. The award of the contracts to the projects selected under the competitive calls for proposals, shall be 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.
M1C3-15	Investment 2.4 – Seismic safety of place of places of worship, restoration of FEC heritage and shelters for art works	Milestone	Entry into force of the Ministry of Culture decree for the allocation of resources: for seismic safety in place of worship and FEC (Fondo Edifici di Culto) heritage restoration	Provision in the decree indicating the entry into force of the Ministry of Culture decree for the allocation of resources for seismic safety in place of worship and FEC (Fondo Edifici di Culto) heritage restoration	N/A	N/A	N/A	Q2	2022	The Ministry of Culture decree shall determine the implementing entity and the eligibility and financing of buildings undergoing interventions and typology. (Inv 2.4) The seismic prevention and safety measures of places of worship concern the areas affected by several earthquakes which hit Regions of Italy from 2009 onwards (Abruzzo, Lazio, Marche and Umbria). The interventions of the FEC (Fondo Edifici di Culto) are selected on the basis of the state of conservation of the assets of the FEC (Fondo Edifici di Culto) heritage. The award of the contracts to the projects selected under the competitive calls for proposals, shall be 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.
M1C3-16	Investment – 2.1 Attractiveness of Small Historic Towns	Target	Interventions concluded for the enhancement of cultural or tourist sites	N/A	Number	0	1 300	Q2	2025	The satisfactory fulfilment of the target also depends on the support of at least 1 800 SMEs for projects in the Small Historic Towns. The target shall measure the number of interventions concluded for the enhancement of cultural and tourist sites, demonstrated by individual certificates of regular execution (restoration and redevelopment of cultural heritage, buildings intended for cultural and tourist services, small tourist infrastructures). This shall include: -Adaptive reuse and functional, structural and plant engineering redevelopment of buildings and public spaces for cultural services (such as museums and libraries), improving energy efficiency, the use of alternative and renewable energy, and the removal of barriers that limit access to persons with disabilities. -Conservation and valorisation off cultural heritage ( such as archaeological, historic-artistic, architectural, demo-etno-anthropological); -creation of knowledge and information platforms and integrated information systems, ); -creation of cultural and artistic activities, the creation and promotion of cultural and thematic itineraries, historical itineraries, cycle and / or pedestrian routes for the connection and use of places of tourist-cultural interest (such as museums, monuments, Unesco sites, libraries, archaeological areas and other cultural, religious and artistic attractions); - Support to the cultural, tourist, commercial, agri-food and craft enterprises. 37% of the interventions shall be carried out in less developed regions.
M1C3-17	Investment – 2.2 Protection and enhancement of rural architecture and landscape	Target	Interventions for protection and enhancement of rural architecture and landscape concluded	N/A	Number	0	3 000	Q4	2025	The target detects the total number of assets subject to completed interventions (as proved by the certificate of regular execution of the works). The satisfactory fulfilment of the target also depends on the start of 900 additional works on protection and enhancement of rural architecture and landscape protection (as proved by the certificate of start of works). Type of interventions to be completed include: 1. Conservative rehabilitation and functional recovery of agricultural settlements, artefacts and historic rural buildings, agricultural crops of historical interest and typical elements of architecture and rural landscape. Among the techniques for restoration and structural adjustment eco-compatible solutions and the use of alternative energy sources shall be privileged. 2. Completion of the census of the rural built heritage and implementation of national and regional information tools
M1C3-18	Investment 2.3 Programs to enhance the identity of places: parks and historic gardens	Target	Number of parks and historic gardens requalified	N/A	Number	0	40	Q4	2025	The indicator shall refer to the number of historical parks and gardens requalified (as proved by the certificate of regular execution of the works). The satisfactory fulfilment of the target also depends on the completion of training activities to at least 1 260 operators. Type of interventions to be completed for a satisfactory fulfilment of the requalification of parks and historic gardens include: -maintenance/restoration/management of the evolution of the vegetation component; -restoration of the present architectural and monumental components (such as small buildings, fountains and furnishings); -analysis and optimization of the current methods of use of spaces in order to allow an optimal use, -respecting the most fragile or most valuable areas; -interventions to ensure accessibility for people with reduced functionality, -securing of fenced areas, entrance gates, video surveillance systems; -realization of information tools (such as posters and guides) to promote knowledge and conscious use by citizens; -valorisation actions to promote cultural, educational and recreational use.
M1C3-19	Investment - 2.4 Seismic safety of places of worship, restoration of FEC (Fondo Edifici di Culto) heritage and shelters for art works (Recovery Art)	Target	Interventions for seismic safety in places of worship, restoration of FEC (Fondo Edifici di Culto) heritage and shelters of art work completed	N/A	Number	0	300	Q4	2025	The target shall measure the number of interventions for the anti-seismic safety of places of worship, restoration of FEC (Fondo Edifici di Culto), shelter for art works in case of disasters completed (as proved by the certificate for the regular execution of works). Interventions shall include: i) preventive anti-seismic interventions of architectural assets to restore existing damage and to secure the cultural heritage; ii) the Recovery Art. Conservation project shall create temporary and protected deposits for the conservation of movable assets in the event of a disaster.
M1C3-20	Investment - 3.2 Development of the film industry (Cinecittà project)	Milestone	Signature of the contracts between the implementing entity Cinecittà SPA and the companies in relation to the construction of nine studios	Signature of the contracts	N/A	N/A	N/A	Q2	2023	Signature of the contracts between the implementing body, Cinecittà 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 tagging and 70% with selection criteria for climate tracking.
M1C3-21	Investment - 3.2 Development of the film industry (Cinecittà project)	Target	Number of studios whose works for requalification, modernisation, construction are completed	N/A	Number	0	9	Q2	2026	The interventions concern the -construction of five new studios and - the renovation of four existing studios. The satisfactory fulfilment of the target shall also depend on the completion of the interventions indicated in lines B and C in the description of the measure
M1C3-22	Investment 4.2 Funds for the competitiveness of tourism enterprise	Milestone	Investment policy for the: the European Investment Bank Thematic Fund;	Adoption of the investment policy	N/A	N/A	N/A	Q4	2021	The investment policy shall define as a minimum: the nature, scope and the operations supported, the targeted beneficiaries, the eligibility criteria of financial beneficiaries and their selection through an open call ; and provisions to re-invest potential reflows for the same policy objectives. The investment policy shall envisage that 50% of the fund is dedicated to energy efficiency measures The investment policy shall include selection criteria to ensure compliance with the ‘Do no significant harm’ Technical Guidance (2021/C58/01) of supported transactions under this measure through the use of sustainability proofing, an exclusion list, and the requirement of compliance with the relevant EU and national environmental legislation.
M1C3-23	Investment 4.2: Funds for the competitiveness of tourism enterprises	Milestone	Investment policy for the National Tourism Fund,	Adoption of the investment policy	N/A	N/A	N/A	Q4	2021	The fund is dedicated to the purchase, restructuring and requalification of Italian real estate properties to support tourism development in the areas most affected by the crisis or marginal areas (coastal areas, minor islands, ultra-peripheral regions and rural and mountain areas). The investment policy shall include selection criteria to ensure compliance with the ‘Do no significant harm’ Technical Guidance (2021/C58/01) of supported transactions under this measure through the use of sustainability proofing, an exclusion list, and the requirement of compliance with the relevant EU and national environmental legislation.
M1C3-24	Investment 4.2 Funds for the competitiveness of tourism enterprises	Milestone	Investment policy for the: SME Guarantee Fund,	Adoption of the investment policy	N/A	N/A	N/A	Q4	2021	The investment policy shall envisage that 50% of the fund is dedicated to energy efficiency measures The investment policy shall include selection criteria to ensure compliance with the ‘Do no significant harm’ Technical Guidance (2021/C58/01) of supported transactions under this measure through the use of sustainability proofing, an exclusion list, and the requirement of compliance with the relevant EU and national environmental legislation.
M1C3-25	Investment 4.2: Funds for the competitiveness of tourism enterprises	Milestone	Investment policy for the Fondo Rotativo	Adoption of the investment policy	N/A	N/A	N/A	Q4	2021	The investment policy shall envisage that 50% of the fund is dedicated to energy efficiency measures The investment policy shall include selection criteria to ensure compliance with the ‘Do no significant harm’ Technical Guidance (2021/C58/01) of supported transactions under this measure through the use of sustainability proofing, an exclusion list, and the requirement of compliance with the relevant EU and national environmental legislation.
M1C3-26	Investment 4.2: Funds for the competitiveness of tourism enterprises	Milestone	Entry into force of the implementing decree for the Tax credit for the redevelopment of accommodation facilities.	Provision in the law indicating the entry into force of the budgetary law enabling the tax credits and provision in the related implementing acts indicating their entry into force	N/A	N/A	N/A	Q4	2021	The reference legislation for the granting of the tax credit is Law No. 83 of May 31, 2014 introduced the recognition of a tax credit for interventions of redevelopment of tourist accommodations. Selection/eligibility criteria for compliance with the DNSH Technical Guidance (2021/C58/01) of supported assets/activities and beneficiaries, requiring at least the use of an exclusion list and compliance with relevant EU and national environmental acquis of the supported assets/activities and beneficiaries, and ensuring compliance.
M1C3-27	Investment- 4.3 Caput Mundi-Next Generation EU for touristic great events	Target	Number of cultural and touristic sites whose requalification reached, on average, 50% of Stato Avanzamento Lavori (SAL)(first batch)	N/A	Number	0	100	Q4	2024	The investment shall include interventions covering: 1. the regeneration and restoration of cultural and urban heritage and complexes of high historical-architectural value of the city of Rome for the investment line “Roman Cultural Heritage for EU-Next Generation”; 2.the enhancement, safety, anti-seismic consolidation, restoration of places and buildings of historical interest and archaeological pathways for the investment line “Jubilee paths”; 3.the redevelopment of sites in peripheral areas for the investment line “#LaCittàCondivisa”; 4.interventions on parks, historical gardens, villas and fountains for investment line #Mitingodiverde; 5.the digitalization of cultural services and the development of apps for tourists or investment line #Roma 4.0; 6.Interventions to increasing the supply of cultural offer to peripheries for social integration for investment line #Amanotesa.
M1C3-28	Investment 4.2: Funds for the competitiveness of tourism enterprises	Target	Number of tourism enterprises supported by the tax credit for infrastructures and/or services;	N/A	Number	0	3 500	Q4	2025	At least 3 500 tourism enterprises supported by the tax credit for infrastructures and/or services; The support provided by the tax credit shall increase the quality of tourist hospitality through: -investing for environmental sustainability (renewable sources less energy-intensive) -redeveloping and raising quality standards of Italian accommodation facilities
M1C3-29	Investment 4.2: Funds for the competitiveness of tourism enterprises	Target	Number of tourism projects to be supported through the European Investment Bank Thematic Funds	N/A	Number	0	170	Q2	2026	Support to at least 170 tourism projects; The support provided through the European Investment Bank Thematic Funds shall be aimed at ·supporting innovative investments for the digital transition ·increasing the offer of services to tourism ·encouraging the processes of aggregation of companies
M1C3-30	Investment 4.2: Funds for the competitiveness of tourism enterprises	Target	European Investment Bank Thematic Funds: Disbursement to the Fund of total of EUR 350 000 000	N/A	Number	0	350 000 000	Q4	2022	The disbursement shall be in line with the investment policy defined in the Milestone.
M1C3-31	Investment 4.2: Funds for the competitiveness of tourism enterprises	Target	National Tourism Fund: Disbursement to the Fund of total of EUR 150 000 000 for equity support	N/A	Number	0	150 000 000	Q4	2022	The disbursement shall be in line with the investment policy defined in the Milestone.
M1C3-32	Investment 4.2: Funds for the competitiveness of tourism enterprises	Target	Number of tourism enterprises to be supported through the SME’s Guarantee Fund	N/A	Number	0	1 000	Q4	2025	A least 1 000 tourism enterprises supported by SME’s Guarantee Fund.
M1C3-33	Investment 4.2 Funds for the competitiveness of tourism enterprises	Target	Number of enterprises to be supported through the Fondo Rotative(first batch)	N/A	Number	0	300	Q4	2025	At least 300 enterprises supported by Fondo Rotativo; The interventions financed through the Fondo Rotativo shall include:

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