The National Recovery and Resilience Plan (PNRR) is proving insufficient to fully finance Italy’s strategic infrastructure projects. According to a study by Unimpresa’s Research Center, as of August 31, 2024, the total cost of priority projects amounts to 483 billion euros, but available resources stop at 343 billion, leaving a 139.9 billion shortfall, equal to 29% of the total. This represents a 35.6 billion increase (+7.9%) compared to the previous year, mainly due to design updates and price adjustments.
Unimpresa’s president, Giovanna Ferrara, highlights how completing these projects is crucial for Italy’s economic growth, particularly for small and medium-sized enterprises (SMEs). Developing modern infrastructure would improve logistics, reduce operating costs, and enhance supply chain integration. Without adequate investments, Italian SMEs risk being left behind in an increasingly global and competitive market.
Analyzing infrastructure sectors: where is the funding shortfall?
According to Unimpresa, the financial gap primarily affects rail and road networks, which account for 76% of total infrastructure costs.
- Railways: the most expensive sector, requiring 205.7 billion (42.5% of total costs), but with only 129.6 billion covered, leaving a 76 billion shortfall.
- Roads and highways: costing 161.9 billion, with 114.5 billion available, leaving a 47.4 billion gap.
- Urban transport systems (subways and trams): needing 8.2 billion more.
- Ports and intermodal hubs: facing a 3.7 billion shortfall.
- Airports and cycle paths: among the most underfunded sectors, with only 0.6 billion available for cycle paths out of 2.6 billion needed.
Some infrastructure projects are fully funded, such as Venice’s Mo.S.E. and energy-related projects. However, the Messina Strait Bridge, one of the most debated projects, still needs 1.5 billion to reach its required 13.5 billion budget.
The challenge of bureaucracy and delays
Beyond funding issues, Italy’s infrastructure sector suffers from lengthy completion times, often exceeding 30 years from design to execution. Key reasons include:
- Complex bureaucratic procedures and frequent regulatory changes.
- Administrative disputes and local area modification requests.
- Poor coordination among institutions and local governments.
The government allocated 192 billion for infrastructure via the PNRR-PNC, with 82.7 billion already contracted, but this is not enough to keep projects on schedule.
Urgent actions needed
Unimpresa urges the government to see infrastructure projects not as expenses but as strategic investments. It is essential to unlock stalled projects, secure more funding from national and EU sources, and accelerate progress.
Italy’s economic future depends on its ability to modernize its infrastructure. What do you think? Are current strategies enough, or are bolder interventions needed? Share your thoughts in the comments!
