Global Macro Service > Research Briefings > Eurozone

Why Italy and Spain will struggle to spend key EU funds

Italy and Spain will be among the biggest beneficiaries of the funds made available through Europe’s Next Generation EU package, having both suffered serious economic damage during the pandemic crisis. Italy and Spain could receive grants of around 5% and 6.5% of their 2019 GDP, respectively. But both will struggle in planning and spending efficiently those resources, greatly limiting the funds’ positive impact and therefore making official government growth forecasts too optimistic, in our view.

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