The President of the Government of Spain announces an investment of more than 11 billion euros with the new PERTE on microchips and semiconductors

During his speech at the second edition of the economic forum 'Wake Up, Spain!', organised by El Español at Casa de América, the head of the Chief Executive stressed that "semiconductors are the basic element of all technological sectors and therefore acquire a global geostrategic importance in a context of digital transformation".

Within the framework of the Recovery, Transformation and Resilience Plan, Sánchez defended that PERTE they constitute a "fundamental tool" for the reindustrialisation and technological modernisation of Spain. The Government has already approved nine of these strategic projects, in areas such as electric vehicles, aerospace, water management and digitisation, shipbuilding, agribusiness, cutting-edge medicine, renewable energy, hydrogen and storage, and language. All of them are expected to mobilise more than 56 billion euros, of which 19 billion will be public funds.

Foto: Pool Moncloa/Fernando CalvoThe President of the Government stressed that Spain is leading the execution of European funds in the EU. Thus, in just nine months, 27,928 million euros of expenditure for the years 2021 and 2022 have been authorised. He also stressed that, as of 22 March, the Recovery Plan website already contained a total of 1,612 calls for proposals for an amount of 27,027 million, so that citizens and companies could access these resources.

To this effect, the General State Administration has already resolved more than 524 calls for proposals for an amount of 8,552 million euros, making a total of 11,486 projects benefiting from the plan's funds. "These are already earmarked projects, with real benefits. And, consequently, they are also behind, let's say the truth, the economic recovery and the very strong job creation" of the last few months.

Historical employment data

The President of the Government of Spain has assessed the positive employment data for the month of March known this morning, which show a reduction in unemployment of 840,000 people compared to a year ago. This is the largest year-on-year fall in the historical series in this month, while the Spanish economy has more than 20 million employed, a barrier that it has not surpassed since 2008.

The Chief Executive has also highlighted that the public coffers closed 2021 healthier than expected, with a reduction in the public deficit to 6.76% of GDP, 3.3 points lower than a year earlier. The President explained that on this occasion the public deficit has been reduced by stimulating the economy and "not with adjustments, as was done during the financial crisis".

Unity in the face of adversity

"Despite the fact that our economy is growing at a strong and agile pace, in the immediate future, the war obviously increases economic uncertainty", said the President of the Government, who defended "the capacity of Spain, and by extension also of its companies, of its social agents, and also of the Government, to face the toughest moments and to grow in the face of adversity". "Yesterday with the pandemic, today with the war, we know that Spain always copes", he added.

Foto: Pool Moncloa/Fernando CalvoThe chief executive appealed for unity. "The war, like the pandemic, demands unity from all of us, because it is our democratic system that is under attack. This unity is what all European governments are cementing with our decisions in the European Councils, and it is also the unity that I am asking the opposition in Spain for", he stressed.

The President has defended "Europe's united response" to the invasion of Ukraine. "This is the moment Europe is facing: we are seeing it in Ukraine and we will see it in a few days in France: Europe or the extreme right. The enemies of Europe are the enemies of democracy: whether in Moscow, Kiev or Paris", he said, while calling for "European patriotism".

Pedro Sánchez also highlighted the economic response to the consequences of the conflict. At the national level through last week's Council of Ministers approval of the National War Response Plan, which mobilises 16 billion euros, with 6 billion in direct aid and tax rebates, and 10 billion in guarantees managed through the ICO. This plan, he described, pursues eight objectives: lowering the price of gas, electricity and fuels, particularly for the most vulnerable; supporting the most affected sectors and companies; reinforcing price stability; guaranteeing supplies; protecting financial stability; accelerating the deployment of the Recovery Plan, especially in terms of energy transition; boosting energy efficiency; and reinforcing cybersecurity.

On a continental level, he welcomed the European Council's recognition of the "exceptional nature of Iberian energy" so that Spain and Portugal could have their own solution to the high electricity prices. The President of the Government of Spain announced that Spain and Portugal have already sent the EU their initial proposal to limit the maximum price of gas for electricity generation plants to 30 euros per megawatt hour, as opposed to the current price of 120 euros.

"This possible solution would obviously not lead to an increase in the tariff deficit, nor would it have an impact on the public accounts: the system itself would absorb and regulate it. This is just one of the many technical elements that both Governments, the Spanish Government and the Portuguese Government, must now discuss with the European Commission. It is expected that before the end of April we will have a response from the EU institutions," he said.

Non official translation