During the inauguration ceremony of the judicial year 2024, which took place yesterday with the participation of the President of the Republic Sergio Mattarellae of the main authorities of the State, the Court of Auditors raised theattention on the National Recovery and Resilience Plan (Pnrr), highlighting delays and irregularities in its implementation. “The implementation of the Pnrr has come to fruition and already has record several reports of irregularities“. This is the warning from the Attorney General of the Court of Auditors Pio Silvestri in his report.
Improper use of funds
The Court of Auditors has reported several cases of improper use of funds intended for the Pnrr by the implementing entities, with approximately 70% of the resources already assigned. Although a large amount of resources have been made available (around 142 billion), only modest progress has been observed in their use. “It involves undue perception or incorrect use of funds by the implementing bodies, irregularities in the perception of contributions or significant delays” explains Silvestri.
The Court of Auditors then taking up the most recent data from the Parliamentary Budget Office, based on the information contained in the ReGIS platform as of 26 November 2023, explains that the implementation of the Pnnr is behind schedule compared to the expected table. They were approximately 28,1 billion euros spent, corresponding to 14,7% of the total resources of the Pnrr while they still remain to be used 138,2 billion euros to achieve all expected objectives.
“The damages deriving from the illicit cases under investigation – we read in the PBO document – have yet to be precisely quantified and do not only amount to approximately €1.800.000,00, but will be significantly higher”.
Critical issues regarding the provision of citizenship income
In 2023 they were critical issues have still been identified in the provision of Citizenship Income, including the presentation of false documentation by applicants or irregular admission to the contribution. Attorney General Silvestri underlined the need to pay particular attention to corruption or mismanagement phenomena involving state officials, investigated for having diverted public resources by attributing them to unsuitable subjects according to current regulations.
The Court of Auditors highlighted critical issues on other fronts too, such as the contributions for energy efficiency provided by the GSE. Phenomena which, despite having a significant financial dimension, have limited space for concrete recovery. Furthermore, the Court reported the issue of medical liability as part of a broader "systemic crisis" in the health sector, for which "urgent decisions and investments that can no longer be postponed" are necessary.
As regards financial subsidies to businesses, situations of undue receipt or irregular use have occurred, with numerous sentences concerning contributions for energy efficiency provided by the GSE.
Tax shield extension not necessary
The President of the Court of Auditors, Guido Carlino, stated that "no further extension of the tax shield is necessary“. According to him, the system of guarantees currently in force seems to make an extension of the tax shield superfluous, thanks to the regulatory perimeter of the psychological element.
“The outlined system of guarantees, together with the normative perimeter of the psychological element, would seem to make unnecessary the further extension of the so-called 'treasury shield' (aimed at excluding active conduct from the scope of application of gross negligence), introduced exceptionally during the pandemic period to remedy the 'fear of signature'" explained Carlino.
However, the discussion on the issue is underway in Montecitorio possible extension of the validity of the shield which expires on June 30th, until the end of December.
The majority submitted four amendments to Milleproroghe decree to extend the special tax shield regime until the end of June 2026, aligning it with the expiry of the Pnrr. Although a softer version of the amendment could be approved, the Court believes that the idea of the extension is a mistake as it is not only unnecessary, but could discourage virtuous administrators.
There is also one further concern for the Court bill presented by Fratelli d'Italia to the Chamber which could sterilize the Court's ex post powers. According to this proposal, if an act passes the preventive check of legitimacy, the responsible directors cannot be subjected to trial for fiscal liability. Although not mentioned directly, the Attorney General Pio Silvestri expressed concern about legislative interventions that "could make this tax shield provision systematic". But even in this case the government's ideas seem to go in the opposite direction.