The European Commission has revealed that the Spanish Government has abandoned 64 measures originally planned to be financed with European funds for various reasons that render them “unreachable.” This was disclosed in the Commission’s decision to accept Spain’s new Recovery Plan, in which the Government extensively revises its 2021 commitments downwards, withdraws from major programs—the so-called PERTEs—and renounces 37% of the European funds to which it was entitled.
According to the newspaper El Mundo, the Commission estimates that “modifications to the Recovery and Resilience Plan submitted by Spain due to objective circumstances affect 85 measures.” Out of these, 64 will not be carried out due to a “lack of demand,” “unforeseen technical difficulties,” or “inflation.”
According to the European Commission, “Spain has explained that 35 measures are no longer partially achievable due to a lack of demand.” These include PERTEs that the Government had announced as flagship projects, such as those related to Microchips, Water, Aerospace, Health, and the New Language Economy. Also on this list are the “ICO loan line for the promotion of social housing,” the “Program to boost industrial competitiveness and sustainability,” the “Next Tech Fund,” the “ENISA Fund for entrepreneurship and SMEs,” the “Regional Resilience Fund,” the “Audiovisual Hub Fund,” and even the fund intended to finance “employment opportunities for workers for the socioeconomic reconstruction and revitalization of territories affected by the DANA.”
Furthermore, “Spain has explained that 23 measures are no longer partially achievable due to supply chain constraints and unforeseen technical difficulties.” The “rehabilitation program for economic and social recovery in residential environments” and the “modernization of the General State Administration” appear under this heading. Other affected projects include the “digital transformation and modernization of the Ministry of Territorial Policy and Civil Service, the National Health System, and regional and local administrations,” as well as “cybersecurity and resilience and security tools” and the “transformation of the tourism model toward sustainability.”
The Commission also notes that, according to Spain, three measures are no longer partially achievable “due to inflation.” This affects the “program for the construction of social rental housing in energy-efficient buildings” and the “increase in the capacity and efficiency of the reception system for migrants and seekers of international protection.”
Another issue involves tenders with hardly any candidates. “Spain has explained that three measures are no longer partially achievable due to an insufficient number of eligible applications.” Consequently, the following will not be completed: “The regeneration and demographic challenge program,” the “promotion of territorial cohesion through the deployment of networks: extension of ultra-fast broadband,” and the “deployment of 5G: networks, technological change, and innovation.”
Additionally, according to the Government’s version, there are 21 out of 85 reviewed measures that can be completed, but in a different manner. “Spain has explained that 21 measures have been modified to apply more suitable alternatives in order to achieve their original ambition.” The “Energy Transition Plan in the General State Administration,” the “revision of the Securities Market and Investment Services Act,” and the “improvement of the system of non-contributory economic benefits of the General State Administration” are featured in this section. Also included are the “support regime for the production and use of renewable hydrogen” and the “subsidies to support the renewable energy and storage value chain.”
Economy Minister Carlos Cuerpo insisted in Parliament this Wednesday that a total of 160 measures have been revised. These are supplemented by the fact that, as specified by the European Commission, “72 measures have been modified to apply alternatives that allow for the reduction of administrative burden and simplification while maintaining the objectives of the measures.” These encompass 17 laws that the Government promised the EU it would adopt and which, ultimately, it is removing from the Plan due to a lack of a parliamentary majority. Being unable to complete the entire program, Spain is also waiving the majority of the loan portion to which it was entitled.
