[Asia Economy Reporter Buaeri] The European Union (EU) Commission has approved Italy's spending plan for the 191.5 billion euro (approximately 260 trillion won) COVID-19 recovery fund.
According to local media, Ursula von der Leyen, President of the EU Commission, announced this on the 22nd (local time) during a meeting with Italian Prime Minister Mario Draghi in Rome.
The fund will be officially executed after approval by the EU Council next month.
The EU recovery fund was established to stimulate the economies of member states severely impacted by COVID-19 and to assist in transitioning to a sustainable economy.
Italy, experiencing the worst economic recession since World War II due to the COVID-19 aftermath, received the largest allocation among the 27 member countries in the region.
The support consists of grants amounting to 68.9 billion euros (approximately 94 trillion won) and low-interest loans of 122.6 billion euros (approximately 166 trillion won).
The support will be provided over six years until 2026, with the first installment of 24.9 billion euros (approximately 34 trillion won) expected to arrive next month.
The Italian government has combined this with its own budget of 30.6 billion euros (approximately 42 trillion won) to prepare a total spending plan of 222.1 billion euros (approximately 302 trillion won).
Looking into the details, investments will focus on building an eco-friendly economic system named the "Green Revolution" and digitalization as the two main pillars, with funding allocated to education, research, culture, transportation infrastructure, and healthcare.
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