The European Union gets its financial resources from the Member States, then it partly redistributes them via the EU Funds.
However, the Funds must be managed in compliance with strict procedural and substantial rules, which are often difficult to apply for the old-style Italian bureaucracy.
Moreover, the EU Funds are almost always subject to the co-financing rule, meaning that the Member State must finance a share of the project or intervention funded by the European Union. Many branches of the Italian Civil Service are unable to respect the co-financing rule due to budged constraints related to the Internal Stability Pact, which ironically is another package of EU rules.
As a results Italy loses billions in EU Funds as its Government presses the EU Institutions for the authorization to invest more money in the economic recovery.