Spain to receive €1.383 billion of pre-financing from the Recovery Plan Addendum

News - 2024.1.25

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With these allocations, Spain begins the second phase of the European funds, which will allow it to continue making progress in transforming the production model to adapt it to the challenges of the 21st century. In particular, these additional resources will be used to reinforce the strategic projects launched (PERTE) to strengthen strategic autonomy in the energy, agri-food, industrial, technological and digital fields.

The Addendum to the Recovery Plan, which was approved by the Council of Ministers last June and endorsed by the Commission in October, will mobilise more than €10 billion in additional transfers and up to €3 billion in loans from the NextGenerationEU and RepowerEU funds.

In total, the Recovery Plan will mobilise up to €163 billion in the period 2021-2026, more than 12% of Spain's GDP, in addition to the €36.7 billion from the Structural Funds of the multiannual financial framework 2021-2027 to complete an ambitious programme of investments to modernise the country.

The pre-financing of the Addendum announced today by the European Commission shows that Spain is continuing to make good progress in the deployment of European funds. In fact, Spain requested in December the fourth disbursement of the Plan for €10.02 billion, linked to the fulfilment of 61 milestones and targets. This amount is in addition to the almost €37.04 billion already received from the three previous disbursements and the first pre-financing.

Reinforcement of the EERP with almost €27 billion

The Addendum focuses mainly on strengthening the strategic projects of the PRTR. In particular, the more than €10 billion of additional transfers and part of the loans will be used to reinforce almost all the dozen PERTEs already in place to mobilise and channel public and private investment.

Thanks to the Addendum, the PERTEs will now be endowed with almost €27 billion of additional resources, which will make it possible to provide continuity and complete the calls for aid, finance incentives and carry out new investments.

The Official Credit Institute (ICO) will be the main manager of the Addendum loans, due to its experience in channelling resources to companies through the Spanish financial system. More specifically, it will administer almost €40 billion on concessional terms through five funds, mainly aimed at supporting the dual green and digital transition of companies, strengthening their competitiveness and contributing to access to new markets.

In addition, the Autonomous Community Resilience Fund will be created, endowed with up to €20 billion for the financing of sustainable investment projects in the Autonomous Communities, which will be managed by the European Investment Bank Group (EIB).

New reforms

The Addendum also includes 17 reforms to continue the transformation of the economy and consolidate the model of inclusive and sustainable growth. These reforms include the National Strategy to Combat Desertification, the Strategy for Energy Efficiency in the State Road Network, the revision of the Securities Market Law and the Law for the Protection of Consumers and Users in Situations of Economic Vulnerability.

Last, the Addendum modifies the timetable and the definition of some milestones to ensure the use of all NextGeneration funds. This update makes it possible to incorporate objective changes in economic circumstances, such as the impact of international energy and raw material prices on production costs, and to extend some deadlines to adjust them to the time required to comply with public procurement requirements, as requested by the Autonomous Communities. Specifically, the European Commission has approved the updating of a total of 69 milestones and targets, while maintaining or even increasing the ambition of investments and reforms.

Non official translation