'EU recovery fund radical change from austerity, fiscal conservatism'

Rome, July 23 In his report to the Italian parliament on the recently concluded European Union (EU) summit which agreed on a landmark deal over a budget for the next seven years and a massive recovery fund, Prime Minister Giuseppe Conte said that the leaders of the bloc have taken a "historic" decision.

Europe has approved "for the first time, an ambitious recovery plan, to be financed by issuing authentically European bonds", said Conte on Wednesday, calling this "a radical change" from austerity and fiscal conservatism to an approach that is "wholly oriented to economic growth, sustainable development...and ecological transition", reports Xinhua news agency.

"The agreement we reached... (shows that) Europe has lived up to its history, its mission, its destiny," said Conte.

Following intense marathon negotiations, leaders of the 27 EU member states on Tuesday morning reached a consensus on the 750-billion-euro

recovery fund and the bloc's long-term budget worth over 1 trillion euros.

"Italy has obtained a result that was even better compared to the initial proposal of the European Commission," said Conte.

He added that "under the current scheme, Italy will receive 209 billion euros" and that "70 per cent of these resources will be available between 2021 and 2022".

Conte said that his government is working on a National Recovery and Resilience Plan to be funded with the recovery fund.

"This government will take on the responsibility of realizing this plan with commitment, determination, far-sightedness, in the awareness that a better future for our citizens, and Italy's credibility in Europe, will depend on showing that we can take this historic opportunity," Conte stated.

In June, Conte listed modernization, digitalization, innovation, tax, and justice reform, cutting red tape, transitioning to sustainable energy, and building a high-speed train network linking the south of Italy to the rest of the country among the key elements of his government's National Recovery and Resilience Plan.

On his way out of the Senate, Conte told ANSA news agency that he will "certainly" appoint a task force to carry out the reforms underpinning his government's National Recovery and Resilience Plan.

( With inputs from IANS )