Brussels unlocks third tranche of EU aid for Spain, another €93.5 billion

Spain, Nadia CalviñoSpanish Minister of Economy Nadia Calviño

The European Commission (EC) has endorsed the addendum to the extension of the Recovery Plan and accepts that Spain replaces the commitment to charge for the use of motorways with an increase in rail freight transport. Thus, the EC has given its approval to the addendum to the extension of the Recovery Plan by which Spain requests another €94 billion, between credits and aid, from the Next Generation programme and endorses its backtracking on the commitment to charge tolls on motorways from 2024.

The EU approval opens the way for Spain to obtain EUR 83.2 billion in soft loans; €2.6 billion in transfers from the REPowerEU energy support plan; and €7.7 billion in direct aid in addition to the €69.5 billion originally allocated. As a result, Spain consolidates its position as the second European country to benefit the most from the Recovery Facility funds, after Italy, aiming to receive a total of €63 billion by 2026.

Of the total, 40% of the resources will go to environmental transition plans (including new commitments to combat desertification, waste management and the prevention of water and food waste) and 26% to initiatives linked to the digitalisation of the economy (which is being expanded with the national artificial intelligence authority and heavy investment in the development of chips in the country).

The €83.2 billion in soft loans will be articulated around 14 major investment instruments, of which the ICO will manage €40 billion, including €22 billion for green investment, €8.2 billion for SMEs, €4 billion for new technologies, €4 billion for social housing or, in the hands of the European Investment Bank (EIB), a €20 billion macro regional investment fund.

About the Author

The Corner
The Corner has a team of on-the-ground reporters in capital cities ranging from New York to Beijing. Their stories are edited by the teams at the Spanish magazine Consejeros (for members of companies’ boards of directors) and at the stock market news site Consenso Del Mercado (market consensus). They have worked in economics and communication for over 25 years.