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Significance
The PNRR is vital to revive growth in the EU’s most fragile economy. In addition to providing foundations for a strong economic recovery from COVID-19, the PNRR also focus on broader structural reforms that have long constrained competitiveness. Among these, radical change to public administration is a key element.
Impacts
Perceptions that the recovery plan is struggling would damage financial-market confidence in Italy’s capacity to survive in the euro-area.
Slow progress on the recovery would also entrench opposition in northern Europe towards deeper EU fiscal integration.
Polling support for the far-right League party has been declining, which could force it to withdraw from the Draghi government.
Keywords:
Italy,
EUR,
EU,
economy,
industry,
international relations,
politics,
social,
foreign policy,
government,
growth,
party,
public sector,
reform,
education,
election,
employment,
technology,
Public services
© Oxford Analytica 2021. All rights reserved. This content contains general information about geopolitical, macroeconomic and social developments or (where stated) other matters. It does not contain advice or recommendations that may be relied on. Where links to external websites are provided, this does not indicate that Oxford Analytica or Emerald agree with, endorse or have checked for accuracy the contents of said sites.
2021
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