If there is something that we have been listening to on television for the last few months and weeks, it is information about European funds for recovery, but What exactly do they consist of? When will they be available?The European Recovery Fund called “Next Generation EU” is endowed with a budget of 750 billion euros, of which ultimately 390 billion euros will be in the form of grants and 360 billion in the form of soft loans.At the distribution level, Spain will be the second most benefited European country, with a total allocation of approximately 140 billion euros. Of this amount, 72.75 billion will arrive in the form of direct transfers, which will have to be executed between the years 2020 and 2026, and the rest of the resources in the form of loans. amounts allocated within the framework of Next Generation EU for the different funding programs they will be distributed as follows:
Recovery and Resilience Mechanism 672,500 M€ of which loans in loan format will be 360,000 M€ and in the form of non-refundable grants 312,500 M€REACT-EU: 47,500 M€Horizon Europe: 5,000 M€InvestEU: 5,600 M€Rural Development: 7,500 M€Just Transition Fund: 10,000 M€ResceU: 1,900 M€
The comprehensive package of 1,824.3 billion euros combines the multiannual financial framework (MFP) program and an extraordinary recovery effort after the Covid-19 pandemic under the NEXT GENERATION EU (NGEU) instrument. The size of the MFP (1,074.3 billion euros) will allow the European Union to meet its long-term objectives and preserve the full capacity of the recovery plan.
Learn more about the Spanish Plan for Recovery, Transformation and Resilience
The different countries, including Spain, must officially communicate to the European Union about the investment projects for which it has requested the arrival of resources. To this end, States must make a document with the projects and sectors where the investment will end up and finalize it by the end of April. The Plan presented by the Government of Spain is aimed at the productive sectors with the greatest capacity to transform our economic and social fabric through ten specific mechanisms or policies:
- Fight against depopulation and the development of agriculture (16% of resources).
- Promote resilient infrastructures and ecosystems (12%) through projects such as the Ecosystem Conservation and Restoration Plan, the Urban, Energy and Transportation Infrastructure Preservation Plan, or the Automotive Industry Promotion Plan.
- Just and inclusive energy transition, to which 9% of resources will be allocated through the integrated National Energy and Climate Plan.
- Promotion of public administration as an engine of technological change (5%)
- Modernization and digitalization of the ecosystem of our companies, to which 17% of the funds will be allocated.
- Pact for science and innovation and the reinforcement of the National Health System, which will have 17% of the resources.
- Education and knowledge, continuing education and capacity building (18%)
- New care economy and employment policies (6%)
- Development of culture and sports (1%)
- Modernization of the tax system, increasing the progressivity and redistribution of resources to achieve inclusive and sustainable growth.
