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NextGenerationEU lands: Assessing the territorial allocation of Italy’s Recovery and Resilience funds

Author

Listed:
  • Francesco Scotti

    (Politecnico di Milano)

  • Carlo Caporali

    (Gran Sasso Science Institute)

  • Davide Luca

    (University of Cambridge)

Abstract

In response to COVID-19, theEUlaunchedNextGenerationEU,itsmostextensivestim ulus package to date. We focus on Italy, Europe’s largest beneficiary, and analyse the terri torial allocation of its funds from central to local governments. Using a two-stage Heckman selection model, we find that funds primarily target Southern urban areas with stronger ad ministrative capacity and prior EU Cohesion Policy experience. Allocation strategies vary by policy mission: Inclusion and Cohesion funds follow a convergence rationale, while Digital, Education, and Healthcare investments follow a specialisation logic, targeting ar eas with pre-existing sectoral strengths. Lastly, administrative efficiency and strong local governance reduce project delays.

Suggested Citation

  • Francesco Scotti & Carlo Caporali & Davide Luca, 2026. "NextGenerationEU lands: Assessing the territorial allocation of Italy’s Recovery and Resilience funds," Discussion Paper series in Regional Science & Economic Geography 2025-14, Gran Sasso Science Institute, Social Sciences, revised Feb 2026.
    • Handle: RePEc:ahy:wpaper:wp76
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