Draghi continues to push for Italian reform with a new patron of spending

The government of Mario Draghi has set up a watchdog to oversee Italy’s ambitious € 248 billion reform program, including how billions of euros are spent on EU pandemic mitigation funds, and has introduced a number of measures aimed at cutting red tape and accelerating infrastructure development.

The new “technical secretariat”, which will depend on the prime minister’s office, will run for five years and is one of the governing bodies set up by the Draghi national unity coalition to oversee spending of € 205 billion on EU subsidies and loans. the key to recovering from the block’s coronavirus.

The body was created by a cabinet decree. Overcoming the life of the coalition, which is due to end before the next Italian general election in 2023 at the latest after the next Italian general election, will reduce uncertainty over the reform program after the former head of the European Central Bank leaves the prime minister.

Draghi was asked to form an emergency government in February after the fall of Italy’s last administration. He is not expected to continue as prime minister beyond the next election.

Draghi told MPs in April, the “fate” of the eurozone’s third economy and its “credibility and reputation” as the founder of the EU depended on the success of the reforms. Their goal is not only to hit the pandemic, but to revive an economy that has barely grown in real terms since the beginning of the millennium.

Italy will receive one of the largest shares in the EU’s € 750 billion recovery and resilience plan, which was launched last year to help member states recover from the pandemic. Another grant for the reform program will come from the state budget.

Since taking office Draghi announced plans reviewing the country’s significantly slow bureaucracy and legal system and investing EU funds in infrastructure projects, climate and environmental initiatives, digitizing the economy, education and health.

Rome has promised the European Commission that it will put in place government mechanisms to control its spending plans before the EU money is unblocked, of which it is expected to return to Italy first this summer.

In the same decree approved by the Italian cabinet on Friday evening, the finance ministry established a mechanism for the commission to regularly update on the progress of reforms and investments. It also provided the ministry with new anti-corruption functions aimed at preventing fraud and controlling conflicts of interest.

The decree includes a number of measures to speed up public works, including the construction of a high-speed railway. In addition, there will be bonuses and fines for contractors depending on the speed at which projects are completed.

Among other reforms, measures to facilitate the installation of telecommunications infrastructure by the Italian authorities should be reduced, reducing measures from six months to 90 days and facilitating the hiring of subcontractors to companies that carry out public contracts.

Draghi has appointed several non-politicians to important positions in his government, including the mixed cabinet of technocrats and politicians from major parties in the country.

Draghi has close allies, including Economy Minister Daniele Franco, former Deputy Governor of the Bank of Italy, and Vittorio Colao, Minister for Technological Innovation and Digital Transition, former CEO of Vodafone.