Italy’s Financial Contribution to the European Union: How Much Does It Give and Receive?

Italy’s Contribution to the European Union Budget

Italy, as a member state of the European Union, contributes financially to the EU budget.
The calculation and maximum amounts to be devoted to the European budget are established ex ante and unanimously by all member states.
The “Own Resources” fund the general budget, representing all the financial resources that each member state contributes to Europe to co-finance community policies and fundamental objectives.

According to an article by Alberto De Pasquale on Money.it, in the past seven years, Italy has contributed a total of 116 billion euros to the EU.
In 2022, Italy contributed 16.7 billion euros to the EU, a decrease of 7.6% compared to the previous year.
The contributions Italy received covered various areas, with a significant portion allocated to “cohesion, resilience, and values,” “natural resources and the environment,” and “single market, innovation, and digital.”

The current financial perspective, active from 2021 to 2027, governs the system of Own Resources.
Each member state, by sacrificing part of its wealth, contributes to transforming these “own resources” into “common own resources.” The current programming evolved from a Union recovery plan focusing on green and digital transitions, culminating in the seven-year EU budget (2021-2027) amounting to 1.824 trillion euros.

Allocation of Funds within the EU

The EU budget’s general rules are outlined in the regulation of the European Parliament and the Council.
This regulation defines the common provisions and financial rules applicable to the European Regional Development Fund (ERDF), the European Social Fund Plus (ESF+), the Cohesion Fund (CF), the Just Transition Fund (JTF), and the European Maritime, Fisheries, and Aquaculture Fund (EMFAF).
The cohesion policy for the 2021-2027 cycle confirms Gross National Income (GNI) as a criterion for resource allocation, categorized by regions’ level of development.

Italy’s Partnership Agreement, including interventions within the five Strategic Objectives (SOs), details the planned interventions under the common provisions regulation on funds managed concurrently.
The financial perspective for the objectives emphasizes a social and inclusive Europe, allocating substantial resources to SO4, followed by SO1 and SO2.

The resources allocated to Italy for national cohesion policies through the Partnership Agreement and the 2021-2027 programs amount to 75 billion euros, of which 42.7 billion comes from EU funds.
The EU and national budget funds, along with programs co-financed by national funds, provide a comprehensive framework for socioeconomic cohesion policies during the 2021-2027 programming period.

Italy has benefitted significantly from the National Recovery and Resilience Plan (PNRR), receiving 47.2 billion euros as part of the Next Generation EU initiative.
These funds support strategic interventions in digitalization, green transition, sustainable mobility, education and research, and social inclusion and health.
The PNRR has shifted Italy’s financial dynamics with the EU, marking a shift from being a net contributor to potentially receiving more than it contributes due to the complex nature of new financial tools and changes in the Multiannual Financial Framework.