Recovery Fund

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Economía Asks The Autonomous Communities For Plans To Invest The Extra 22 Billion From The Recovery Plan

Spain is finally eligible to receive just over 161.5 billion euros from the European Recovery Mechanism for the Covid crisis, some 22 billion more than the 140 billion initially planned from the sum of transfers and loans from the Next Generation EU fund. The increase comes about because the country’s poor economic performance means adding 7.724 billion in direct aid to the 69.510 billion originally allocated and because the distribution…

Spain's government

Spain Has Executed Less Than A Third Of The European Recovery Funds, Some 6.5 Bn Euros, According To FEDEA.

FEDEA (Fundación de Estudios de Economía Aplicada) analyses existing information on the implementation and execution of investment projects and aid programmes included in the Recovery Plan (RP) and financed by the EU’s Recovery and Resilience Mechanism (RRM). So far, programmes and projects representing about one third of the planned expenditure have been launched, but with significant differences between headings. Of the 24 billion of RRM funds budgeted for 2021, 20…

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Spain Receives The First Tranche Of The EU’s 10 Billion Euro Recovery Fund

The European Union has disbursed the first tranche of the €10 billion recovery fund to Spain on Monday, European Commission President Ursula von der Leyen and Spanish Prime Minister Pedro Sánchez have confirmed.“The first Next Generation EU payment, €10 billion for Spain, is on its way! Congratulations to Spain,” the German announced on her Twitter profile. “I hope to have more good news for other EU countries very soon”, she…

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Brussels Backs Spanish Plan For Investment In Electric And Connected Cars With 3 Billion Euros

Last week, the European Commission gave the go-ahead for the first 10 billion euros of the recovery fund to reach Spain, pending approval from the other Member States. Today, Brussels has given the green light to the first of the six “Strategic Projects for Economic Recovery and Transformation” (PERTE) which Spain has presented, dedicated to the development of electric and connected vehicles. “This €3 billion Spanish plan will help to…

Just Sanchez

European Funds Get Bogged Down in Bureaucracy

According to El Periódico, “the excessive expectations that had been created about a rapid arrival of European money to the Spanish economy are colliding with bureaucracy and the lack of communication between administrations and companies”. The Ministry of Finance claims that 60.9% of the funds planned for this year have already been authorised – through the Council of Ministers and the different sectoral conferences – and that 25.5% of the…

housing overvalued

The Mirage Of The Recovery Plan

Juan Pedro Marín Arrese | The European plan is still sleeping the sleep of the just. The first consignments are expected after the summer if there are no setbacks and delays. A common occurrence, judging by experience. This delay contrasts with the huge injections of spending on the other side of the Atlantic. Jerome Powell’s tussle with the markets illustrates the extent to which activity has regained its pulse. Once…

Pedro Sánchez and Charles Michel

Spain Aims To Create 800,000 Jobs In Next 3 Years; To Use €72 Bn From The European Recovery Fund

The Government has set a target of creating 800,000 jobs over the next 3 years (in the period 2021-23). To achieve this goal, it will use 72 billion euros from the European Reconstruction Fund (60 Bn in the form of non-refundable transfers and 12 Bn as loans with conditionality, out of a total of 140 billion). It is foreseen that 37% of the funds will be earmarked for green investments and 33% for digital transformation. As a result, it is estimated that these areas will contribute +2.5 pp to GDP growth.

Spain GDP

Spanish GDP Could Grow By Up To 2 pp A Year By 2021/2022 Thanks To European Funds – Bank of Spain

The Bank of Spain presented the update on its growth forecasts for the period 2020-2022, formulating two alternative scenarios. They provide a range of negative growth for GDP in Q3 of 9.5%-12.3% year-on-year (equivalent to quarterly advances of 16.6% and 13% respectively). On the other hand, it flags the upward risk of the various initiatives implemented at a European level, mainly the European Recovery Fund.

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European Aid Accounts For 11.35% Of Spanish GDP In 2019

Spain and Italy have been two of the leading countries in the European Recovery Fund race. Our country will receive 140 billion euros, of which 72.7 billion will be given in direct aid and the rest in loans. This is a figure equivalent to 11.3% of Spanish GDP in 2019. It is a balm for Spain’s public accounts that will be able to sustain the recovery with greater guarantees. The European agreement for the reconstruction fund will be decisive for presenting the 2021 General State Budget as soon as possible. It should be remembered that the current government continues to manage public accounts under the previous government’s budget. This is technically possible, but lacks political sense.