Rule of law will undermine Italy’s growth potential

Significance

Relative to its peers, Italy ranks poorly on rule of law and institutional efficiency indices. Tackling those shortcomings could be crucial to maximising the economic benefit of the additional EUR191bn in public spending the EU will provide over the next five years.

Impacts

• In light of growing concerns over the rule of law across member states, the EU’s tools to address rule-of-law abuses will expand.
• Poor results from recovery fund investment would undermine Italy’s credibility in the EU.
• The presence of the more transmissible Delta variant threatens to hurt tourism in Italy and the rest of southern Europe this summer.