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The Plan also addresses important investment needs for the twin green-digital transitions, research and innovation, to improve access to essential care in a more resilient healthcare system, including the need to fill the infrastructural gap between regions.
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The plan is broad-based and aims at addressing Italy’s main structural challenges, which relate to weaknesses in productivity growth, business environment, the public administration, the justice system and insolvency proceedings as well as in the regional differences, the labour market, and in educational outcomes. Italy has requested the maximum amount available under the Recovery and Resilience Facility, corresponding to EUR 191,5 billion, of which EUR 68,9 billion in non-repayable financial support and EUR 122,6 billion in loans.
#Cutting optimization pro 5.9.4.3 full#
Sizeable domestic policy support and of Next Generation EU-financed investment should help real GDP to grow by 4,2% in 2021 and reach 4,4% in 2022, when the investment and reform programme set out in Italy’s Recovery and Resilience Plan will start to take full effect.
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Looking ahead, falling infection rates associated with an accelerating vaccination campaign that allow for a marked easing of restrictions, are paving the way for a strong rebound over the rest of 2021. The government debt-to-GDP ratio increased from 134,6% in 2019 to 155,8% in 2020 and is expected to increase further in 2021 to 159,8%, before declining to 156,6% in 2022. Italy's public finances have been severely hit by the pandemic. T he regional divide was widening already before the COVID-19 crisis, which further exacerbated risks to territorial cohesion. Poverty, which had been declining in 2019, became more widespread. The pre-pandemic improvement in labour market conditions came to an abrupt halt and the previously observed jobs growth reversed, even if the impact of the economic shock triggered by the pandemic was considerably mitigated by rapid national and EU policy action. Italy entered the COVID-19 induced slump with an output level that had not yet fully recovered from the post-2009 recession. Italy’s economy is set to rebound strongly from the sharp and deep recession triggered by the COVID-19 pandemic. 4.8 Milestones, targets, monitoring and implementation