Statement by Palazzo Chigi on regulations regarding the Italian Court of Auditors and NRRP checks

With reference to the remarks by a European Commission spokesperson on the regulations regarding the Italian Court of Auditors and National Recovery and Resilience Plan (‘NRRP’) checks, the Italian Government wishes to make some substantive and methodological observations.

1. Regarding the need for checks

The Government agrees with the fact that “the ‘Recovery’ requires an audit and control framework that is appropriate for and proportionate to its unique nature and in order for spending programmes to be based on efficiency”. The Government’s actions are based on this principle.

2. Regarding uninformed pre-judgement

The spokesperson stated that the “European Commission does not comment on draft laws”, but immediately afterwards, without going into the substance, the same Commission spokesperson followed with considerations that fuel instrumental political disputes, which do not correspond to reality.

3. Regarding non-existent modifications

The regulations proposed by the Government, which were approved by the Parliamentary Commission yesterday in the ‘Public Administration Decree Law’, do not modify what has already been agreed between the European Commission and the Italian Government. The regulations in question do not affect the provisions of Decree Law no. 77 dated May 2021.

4. Regarding the rules on the checks carried out by the Court

The first decree on implementation of the National Recovery and Resilience Plan, inter alia, governs the checks carried out by the Italian Court of Auditors on NRRP funds. Said decree, which was a specific NRRP milestone, was positively reported on by the Commission. Not only is this regulation not being modified in any way, but its correct implementation is precisely what the Government wants to achieve. In fact, article 7, paragraph 7, of the decree states: “The Court of Auditors shall carry out the audit and control activities referred to in article 3, paragraph 4, of Law no. 20 of 14 January 1994, in particular by assessing cost-effectiveness, efficiency and effectiveness with regard to how financial resources from NRRP funds are acquired and used. This audit shall meet the criteria of cooperation and coordination with the European Court of Auditors, in accordance with article 287, paragraph 3, of the Treaty on the Functioning of the European Union”. The law in question (Draghi Government) therefore entrusted the Italian Court of Auditors to carry out audit and control activities for NRRP funds subsequently, and not concurrently, with criteria of cooperation and coordination with the European Court of Auditors. These regulations on the audit and control activities to be carried out by the Italian Court of Auditors for NRRP funds not only remain in force, but are also implemented in full.

5. Regarding the ‘scudo erariale’ and the Commission

With regard to the prolongation of the ‘scudo erariale’ [limitation of the liability of persons subject to the jurisdiction of the Court of Auditors in public-sector accounting matters] for public officials and public sector managers, this regulation has already been in force for some time and the Commission has never commented on it. The Government amendment approved yesterday extends its validity for another 12 months. This regulation has been in force for three years, with two different governments, and has never given rise to any observations; we are certain that the Commission’s line will not change in the face of an extension by another year decided by a government with a different political positioning. 

6. Regarding the chronology of parliamentary acts

Limitation of administrative liability before the Court of Auditors was provided for by article 21, paragraph 2, of Decree Law no. 76 of 16 July 2020 (Conte II Government). This limitation, which was initially to apply only until 31 July 2021, was prolonged first by the law that converted the decree in question (also passed by the Conte II Government) – Law no. 76 of 2020 (when validity was extended until 31 December 2021) and later by article 51, paragraph 1, letter h), of Decree Law no. 77 of 31 May 2021, converted, with amendments, by Law no. 108 of 29 July 2021 (Draghi Government), which further prolonged validity until 30 June 2023.

7. Regarding relations between the Government and the Court of Auditors

A long, cordial and fruitful meeting was held yesterday at Palazzo Chigi between the Government and the Court of Auditors. During the meeting, it was unanimously decided to begin a working group to review and better define certain institutions relating to NRRP audit and control activities. 

8. Regarding the Constitution, law and policy

Useful insights on this subject can be gained by reading interviews with distinguished constitutionalists such as Sabino Cassese, Cesare Mirabelli and Giancarlo Coraggio, who, over the last 24 hours, have illustrated that Parliament’s measures respect the Constitution and the prerogatives of the Court of Auditors, based on sincere cooperation between institutions.