Council of Ministers

The Government of Spain will promote the design and use of electric vehicles with a public-private investment of 24 billion euros

Council of Ministers - 2021.7.13

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Moncloa Palace, Madrid

The Council of Ministers has approved the Strategic Project for the Recovery and Economic Transformation (PERTE) of Electric and Connected Vehicles, which was presented yesterday by the President of the Government of Spain, Pedro Sánchez.

The Minister for Industry, Trade and Tourism, Reyes Maroto, described it as a "strategic project and historic milestone" for the automotive industry, which should enable Spain to lead the change towards the sustainable, digital and safe mobility of the future: "The automotive sector is undergoing a real revolution and we want to be part of it, we want to write a success story in Spain, in Europe, leading its transformation".

Twenty-four billion euros for electric, sustainable and affordable vehicles

Foto: Pool Moncloa/Borja Puig de la BellacasaThis PERTE, the minister explained, will mobilise 3.4 billion euros of public investment, in addition to more than 19.7 billion euros of induced private investment, reaching a total of 24 billion euros. Maroto expects the impact of these resources to favour the creation of employment - estimated at 140,000 jobs - and the generation of wealth through a 1.7% increase in GDP.

Three billion euros will be spent on new electric and hybrid vehicle models in factories adapted to the 2050 climate neutrality target. A further 40 million will be for a technology plan in the sector; the call for proposals opened today. A third part will be devoted to the training and re-skilling of workers and a fourth will be facilitating access to these new vehicles for final consumers.

"We want to make electric and connected cars, but we also want to democratise access to sustainable mobility," said Maroto. The MOVES plans have been designed for this purpose, which will mobilise up to 800 million euros, and MOVES singular, with more than 300 million euros to increase the number of recharging points. The goal is to reach 250,000 registered electric vehicles and between 80,000 and 110,000 charging points across the network by 2023.

At the regulatory level, measures have been taken to support the connectivity of these vehicles in parallel to the roll out of 5G.

Co-governance and public-private partnerships

The minister recalled the importance of the automotive sector in Spain, which contributes more than 11% of GDP, generates more than 2.5 million jobs and provides the backbone of the territory thanks to its 17 factories in 10 autonomous communities and its more than 1,000 associated component and supplier companies.

Maroto underlined the role of the sector as a lever for economic recovery and the confluence of three key factors for its transformation: public initiative - "this is the first time that the Government has promoted the transformation of the sector", the guarantee of having the actors of the changes - "a value chain with which we have been working for more than three years" - and the economic resources, associated with the Recovery, Transformation and Resilience Plan.

To take decisions and monitor the PERTE, Maroto announced the creation of a public-private alliance through the automotive sector round table set up last year - in which the Government, regional governments, business associations and trade unions participate - and an inter-ministerial group bringing together the seven departments involved. Other sectors, such as technology and energy, will also play a leading role.

Investment in education policy

Foto: Pool Moncloa/Borja Puig de la BellacasaThe Minister for Education and Vocational Training, Pilar Alegría, reported that the Government has distributed 1.186 billion euros to the regional governments to invest in education policy. Some 1.097 billion will come from the Recovery, Transformation and Resilience Plan and will be allocated to digitalisation and educational reinforcement programmes. In addition to this amount, 88.5 million was allocated for textbooks and teaching materials and other programmes.

The investments included in the Recovery Plan include allocations for the provision of laptops to reduce the digital divide among students, and also for the installation and maintenance of digital classrooms and training teachers to use this technology.

The minister indicated that the funds will also benefit centres of special educational complexity (PROA+ Programme), which are publicly funded centres with at least 30% of the students classed as vulnerable, as well as rural or island centres, located in depressed areas or with a largely dispersed population.

Pilar Alegría stressed that education and vocational training are an absolute priority for the Government, which is investing in this area in a way that has never been done before. The minister pointed out that talking about education is always about investment, never about spending. "When we talk about education, we talk about equity, equality, opportunities and reducing school dropout rates," she said.

Furthermore, the minister recalled that these funds are in addition to the more than 984 million euros earmarked for modernising Vocational Education and Training approved by the Council of Ministers since April.

More than 1.6 billion to renovate housing and public buildings

Foto: Pool Moncloa/Borja Puig de la BellacasaThe Council of Ministers has authorised the distribution of 1.631 billion euros between Ceuta and Melilla for the residential renovation programmes (1.151 billion) and promoting the renovation of public buildings (480 million) within the Recovery, Transformation and Resilience Plan.

The Minister for Territorial Policy and Government Spokesperson, Isabel Rodríguez, explained that these are actions where the regional governments have agreed with the Government and that will contribute to changing the image of many medium-sized and small cities, as well as improving neighbourhoods and the quality of life of citizens.

The distribution of the amount will also enable the implementation of the social rental housing programme, which will allow the construction of 20,000 sustainable housing units by 2026.

Rodríguez added that these programmes will allocate a significant amount of economic resources to strategic sectors, such as construction, and will contribute to the creation of many jobs.

Leasing of movable asset collections

The Executive has regulated the leasing of movable asset collections that are part of Spanish Historical Heritage by certain public sector entities.

The spokesperson for the Executive emphasised that one of the objectives of the decision is to recognise the Carmen Thyssen-Bornemisza Collection's guarantee from the Spanish State so that when the collection is leased, the works that comprise it will benefit from a unique insurance scheme in the event of destruction, loss, theft or damage.

Recognition for health workers

Foto: Pool Moncloa/Borja Puig de la BellacasaThe Government has awarded the Grand Cross of Civil Merit to the health professionals who died as a result of COVID-19, in recognition of those who worked on the front line against the pandemic and are continuing their efforts with the vaccination. More than a hundred health professionals have died in Spain fighting the coronavirus and almost 130,000 have been infected.

Isabel Rodríguez said that the best tribute that we can all, individually, pay them is to remain calm, responsible and prudent and to hold on a little longer until the end of the pandemic.

The spokesperson pointed out that the success of vaccination is unquestionable and that the regional governments are making major efforts to vaccinate the youngest population imminently.

Current Affairs

During her speech at the press conference following the Council of Ministers, the spokesperson stated that the European Union's Ministers of Economy and Finance approved Spain's Recovery, Transformation and Resilience Plan.

Isabel Rodríguez stated that the Government wants to convey the message that it is not just an investment plan, but a reforms plan: "It is a plan that guarantees the economic development of our country, which means that it is a plan that generates jobs, that maintains jobs, that innovates in formulas and, therefore, it is a plan for the future and of hope".

Non official translation