The Government of Spain approves two new strategic plans to boost the economy

Moncloa Palace, Madrid

The Council of Ministers has approved the Strategic Project for Economic Recovery and Transformation (PERTE) for the Digitalisation of the Water Cycle, the Plan for the Development of the Electricity Transmission Grid by 2026 and the Biogas Roadmap.

The Third Vice-President of the Government of Spain and Minister for Ecological Transition and the Demographic Challenge, Teresa Ribera, said that these three projects embody the Government's vocation to transform energy and water, "two strategic and scarce resources" and "determining factors in the economy and in people's well-being".

Water Cycle Strategic Project for Economic Recovery and Transformation (PERTE)

Ribera stressed that the PERTE of digitisation of the Water Cycle stemmed from the realisation of the growing impact of climate change in Spain and its effect on water resources: "It is estimated that we will suffer a reduction of around 25% in the next few years due to warming and altered rainfall patterns.

Its objective is to make progress in efficient and sustainable management to reduce consumption and losses and to adapt with guarantees to the effects of climate change on society and the economy as a whole (the management of the water cycle currently accounts for almost a third of the national Gross Domestic Product).

Specifically, the project aims to improve real knowledge of water uses by sector to achieve more integrated and efficient management, to modernise the basin organisations and offer more information to end users, to help meet the environmental objectives set for the different bodies of water, and to generate highly qualified technical employment by promoting training, investment in R&D&I and business opportunities in Spain and abroad. "The impact on the associated industries will be around 3,500 highly skilled technical jobs, in addition to the people currently working in the water sector," said Ribera.

The planned investment is around 3 billion euros, 1.94 billion of which will come from European funds and the ordinary budget of the Ministry for Ecological Transition and Demographic Challenge, and the rest from private capital.

Among the measures listed by the minister is the improvement of the urban water cycle, to reduce losses of treated drinking water from the current 23% to 10% by 2030: "A country threatened by the impacts of reduced availability of water resources cannot afford to lose 23% of the drinking water in its urban network, so reducing these losses is an objective that we consider indispensable".

Upgrading of the electricity transmission network

Foto: Pool Moncloa/Borja Puig de la BellacasaThe Plan for the Development of the Electricity Transmission Grid by 2026 will be "the backbone of the national electricity system for the coming years" and will provide savings of 1,600 million euros per year "in a normal context", the Vice President of the Government of Spain specified.

The goal is to prepare the transmission grid to be able to connect and integrate more renewable energy in the coming years, reaching 70% from the current 46% by 2026, and to reduce gas-fired generation.

To achieve the respectful growth of renewable energies, priority will be given to generation in optimal areas with high resources and lower environmental impact," as respect for the natural environment has been incorporated as a basic principle", assured Ribera. Furthermore, the use of existing grids will be maximised by renewing and expanding their capacity through new technologies such as batteries, which allow for storage.

In total, almost 7 billion euros will be spent on upgrading 8,000 km of grids, building 2,700 km of new lines and 700 km of submarine connections - with special emphasis on the two archipelagos of the Canary Islands and the Balearic Islands, which are committed to becoming "100% renewable islands" - and boosting electricity interconnections with France, Portugal and Morocco.

Ribera stated that this investment will mainly go into goods and services of the national electricity industry and will create more than 78,000 qualified and quality jobs.

Biogas roadmap

The Vice-President of the Government of Spain stressed the importance of promoting the production of gas from renewable sources and reducing fossil fuels: "In the current situation, where Europe is suffering from the impact of dependence on Russian gas, this is particularly important.

The Biogas Roadmap is part of the Strategic Project for the Recovery and Economic Transformation of Renewable Energy, Renewable Hydrogen and Storage (PERTE ERHA). It plans to almost quadruple the production of gas of renewable origin in our country by the end of the decade and its use to produce electricity and useful heat for industry and heavy transport, and to be injected into gas pipelines once transformed into biomethane.

Ribera announced that the terms and conditions of the calls for proposals to grant 150 million euros from the Recovery, Transformation and Resilience Plan to unique biogas projects will soon be published.

Aerospace Strategic Project for Economic Recovery and Transformation (PERTE)

Foto: Pool Moncloa/Borja Puig de la BellacasaThe Government has approved the Aerospace Strategic Project for Economic Recovery and Transformation (PERTE), which plans to mobilise more than 4.5 billion euros to boost R&D&I in the aeronautics and space sector.

The Minister for Science and Innovation, Diana Morant, explained that the initiative is international in scope, as it combines recovery funds from Spain and Portugal and includes cooperation projects through the European Space Agency.

Morant said that the goal of this PERTE is to equip the Spanish aerospace industry to face new challenges and opportunities, as well as to position it at the forefront of the world: "Spain will position itself in the international race to conquer space and will advance in the necessary transformations to become a more competitive, equitable, cohesive, prosperous, resilient country with greater strategic autonomy.

The minister stressed that the aerospace sector is essential for everyday services such as mobile phones, GPS, weather forecasting and food supply.

It is also very useful in disasters, as has been seen in the case of the La Palma volcano, where satellite images have guided emergency actions.

Advances in this field, he added, "will have a direct benefit on quality of life, through its applications in areas such as transport, logistics, security, environment, communications and defence".

Moreover, it is a strategic industrial sector for Spain: it accounts for almost 1.2% of the national Gross Domestic Product (GDP) and 5.4% of industrial GDP. As a purely export-oriented sector, Spain ranks fourth in the European Union in terms of turnover. It currently generates 37,600 highly qualified direct jobs and is the second sector that invests most in R&D&I in Spain, after pharmaceuticals.

According to the minister, this is an area with a huge capacity to generate research and innovation also in other industries and, consequently, to transform the economy and the labour market.

Aerospace PERTE Objectives and Actions

Diana Morant reiterated that the PERTE will act on two fundamental pillars: aeronautics and space.

In the aeronautical field, its main objective is to develop R&D&I activities that will enable the creation of the future zero-emission hydrogen aircraft, as well as new unmanned aircraft for different applications. This will advance the decarbonisation of air transport. "The big challenge is to manufacture the new clean ships of the future. In addition, we are going to respond to the new regulation and digitalisation of air traffic control systems to achieve the Single European Sky", the minister put forward.

In the space field, Morant stressed that the necessary technologies will be developed to create satellite systems for quantum communications, which are vital for exponentially increasing levels of cybersecurity. Having its own satellite system will also increase defence capabilities. In addition, the Atlantic Earth Observation Constellation will be established in collaboration with Portugal.

The minister also pointed out that the PERTE will accelerate the creation and implementation of the Spanish Space Agency, already foreseen in the reform of the Science Law. Spain is the only European country without its own space agency.

In a cross-cutting manner, with the collaboration of the regional governments in R&D&I projects, and through the Centre for the Development of Industrial Technology (CDTI), companies will be helped to create and adopt innovative technologies. In addition, specialised training and capacity building will be provided for professionals. This is a sector in revolution in which opportunities for high quality jobs will grow.

The PERTE will mobilise a total investment in R&D&I of more than 4.5 billion euros over five years, of which nearly 2.2 billion will come from the public sector. Such joint investment will benefit the economy and social welfare.

Bono Alquiler Joven (Youth Rental Voucher)

Foto: Pool Moncloa/Borja Puig de la BellacasaIn the sphere of the Ministry of Culture and Sport, the Council of Ministers has regulated the Youth Cultural Voucher, with which young people who turn 18 in 2022 will have access to 400 euros for the purchase and enjoyment of cultural products, services and activities. Its aim is to revitalise and dynamise the cultural sector in Spain, reducing the negative impact caused by the pandemic, as well as to promote the habit of consuming cultural products among young people .

Isabel Rodríguez pointed out that the programme will benefit some 500,000 young people, who will receive a total of 400 euros in a single payment in the form of a nominal virtual prepaid card, which will be valid for 12 months after it is granted.

In terms of its use, 200 euros can be used for live arts, cultural heritage and audiovisual arts, including tickets and season tickets for performing arts, live music, cinema, museums, libraries, exhibitions and performing, literary, musical or audiovisual festivals. A maximum of 100 euros may be spent on physical cultural goods: books, magazines, newspapers or other periodicals, video games, musical scores, records, CDs, DVDs or Blu-ray discs. The remaining 100 euros is for digital or online consumption: subscriptions to music, reading, audio-reading or audiovisual platforms; purchase of audio books, digital books for e-books; subscriptions to download podcasts, online video games and digital media.

The government spokeswoman specified that this aid is included in the General State Budget for 2022, with an allocation of 210 million euros.

Redefining and protecting artistic activity

The Council of Ministers has agreed to improve the working conditions of people engaged in artistic activities, as well as the technical and auxiliary activities necessary for their development, thus responding to one of the sector's historical demands, which was left pending in the labour reform.

The spokesperson of the Executive stressed that the regulation implies the creation of a new contracting system with a specific modality: the artistic employment contract.

The text modernises and broadens the concept of artistic activity by eliminating the concept of "artists in public performances" and incorporating cultural activities in the field of performing, audiovisual and musical arts.

Head offices of state public sector entities

The Government of Spain has established the procedure for determining the towns where the physical headquarters of the new entities of the state institutional public sector, as well as the new departments or sub-headquarters of existing entities, will be located .

The Minister for Territorial Policy and Government Spokesperson, Isabel Rodríguez, has stated that the measure responds to the "conviction of the Government of Spain to share the State, and to bring the Administration closer to the citizens". It also guarantees the principle of deconcentration, inspired by the rationalisation of public spending, and shows that public institutions have positive effects on the environments in which they are located.

With regard to the election procedure, the minister pointed out that to encourage competition, criteria of social and territorial cohesion and the improvement of the functioning of public services will be taken into account: "The criteria of depopulation or unemployment in these areas will also be taken into account."

Current Affairs

Foto: Pool Moncloa/Borja Puig de la BellacasaDuring her appearance at the press conference following the Council of Ministers, Isabel Rodríguez reiterated that the Executive is continuing to work on the transformation of the economy and the deployment of European funds at "an exceptional time, marked by international, economic and energy policy as a result of Putin's war".

The spokeswoman stressed that the President of the Government of Spain has led meetings with the main countries in the region to promote an agreement on energy matters at the European Council to be held this week in Brussels. In addition, the Executive has multiplied its contacts with the social partners, parliamentary groups, economic sectors and regional governments. "It is about forging the necessary unity and forming a plan for everyone, a plan for the country, as a response to the economic consequences of the war," said Rodríguez.

Furthermore, the spokesperson announced that Pedro Sánchez will appear in the Lower House of Parliament, probably on Wednesday of next week, to give an account of the conclusions of the European Council, the NATO summit, which will also be held in the coming days, the National Response Plan to the impact of the war, and the new framework for relations with Morocco.

Non official translation