Millions of euros for a dying village: opportunities and challenges of financing

Millions of euros for a dying village: opportunities and challenges of financing

According to a report by www.nzz.ch, the village of Trevinano is facing an enormous challenge: after receiving a surprise €20 million from the EU's PNRR program, it must now find ways to use the money efficiently. The community plans to repurpose empty houses and hopes to create guest rooms, student rooms and common areas. But implementation is proving more difficult than expected.

Experts are skeptical as to whether many municipalities are able to use such huge sums of money efficiently. There are also concerns about abuse and corruption. To counteract this, the government has introduced various control mechanisms and created additional positions to support municipalities in project work.

The money is paid out in tranches and the municipalities must clearly define how they want to use the funds. The first steps have already been taken in Trevinano, but the actual implementation of the projects is proving to be lengthy.

The municipality aims to use only 4 percent of funds for administration and bureaucracy, which is a challenge. It is becoming clear that money alone is not enough to stimulate rural development. The population must be involved and motivated, and exchange with other communities and institutions is necessary. Trevinano still has a long way to go to effectively use the PNRR money and create a sustainable stimulus for rural development.