Below, we explain to you how the Next Generation EU Funds are structured and how to benefit from this type of aid. The following infographic summarizes the structuring of the funds.
There are mainly two financial instruments at European level, which are based on 4 cross-cutting axes that define the thematic areas to which these instruments are aimed. The axes, in turn, are projected into 10 lever policies and within these we find 30 components. The way to transform components into aid is through reforms and investments. Finally, there are PERTE, which collect sectorially or horizontally reforms and investments classified by sector.
As you have seen, the structure that has been defined is between complex and cryptic... so from here on we will try to shed light on this structure and guide you on the aid that we really consider to be most appropriate and attainable for technological and innovative startups and SMEs.
Delving into the Next Generation EU structure
As we mentioned in the introduction, within the framework of the Next Generation EU initiative, two financial instruments have been created: the MRR and the REACT-EU. The first of these instruments is the European Recovery and Resilience Mechanism (MRR) which constitutes the core of the Recovery Fund and is endowed with 672.5 billion euros. Its purpose is to support investment and reforms in Member States to achieve a sustainable and resilient recovery, while promoting the EU's ecological and digital priorities. On the other hand, there is the Recovery Aid for Cohesion and the Territories of Europe (REACT-EU) endowed with 47.5 billion euros, or just 6.5% of total funds. REACT-EU funds operate like structural funds, but with greater flexibility and agility in their execution. REACT-EU aims to promote the ecological, digital and resilient recovery of the economy.
The four cross-cutting axes through which European funds are distributed in Spain are:
- Ecological transition
- Digital transformation
- Social and territorial cohesion
- Gender Equality
These axes in turn are structured through 10 lever policies, with a great capacity to carry over activity and employment already in the first phase of the Plan, with the horizon of 2023. The objective is to promote economic recovery in the short term and to support a transformation process that increases the productivity and potential growth of the Spanish economy in the future.
The 10 lever policies are as follows:
- LEVER I Urban and rural agenda, the fight against depopulation and the development of agriculture
- LEVER II Resilient infrastructures and ecosystems
- LEVER III Just and Inclusive Energy Transition
- IV LEVER An Administration for the 21st Century
- V LEVER Modernization and digitalization of the industrial fabric and the SME, recovery of tourism and promotion of an entrepreneurial nation Spain
- LEVER VI Pact for Science and Innovation. Strengthening the capacities of the National Health System
- LEVER VII Education and knowledge, continuing education and capacity building
- LEVER VIII New Care Economics and Employment Policies
- IX LEVER Boosting the culture and sports industry
- X LEVER Modernizing the tax system for inclusive and sustainable growth
Finally, these ten levers are subdivided into 30 components, which are also comprised of reforms and investments, which are the ones that finally articulate the projects to modernize the country. Although most of them are horizontal in nature, for the economy as a whole, some are specifically aimed at promoting the modernization of driving sectors, such as commerce, tourism, agri-food, health, automotive or public administrations themselves.
The 30 components are as shown below:
- 1: Shock plan for sustainable, safe and connected mobility in urban and metropolitan environments
- 2: Housing Rehabilitation and Urban Regeneration Plan
- 3: Environmental and digital transformation of the agri-food and fishing system
- 4: Conservation and restoration of ecosystems and their biodiversity
- 5: Preservation of the coastline and water resources
- 6: Sustainable, safe and connected mobility
- 7: Renewable Energy Deployment and Integration
- 8: Electrical infrastructure, promotion of smart grids and deployment of flexibility and storage
- 9: Renewable hydrogen roadmap and its sectoral integration
- 10: Just Transition Strategy
- 11: Modernization of Public Administrations
- 12: Industrial Policy Spain 2030
- 13: Impulse for SMEs
- 14: Plan for modernization and competitiveness of the tourism sector
- 15: Digital Connectivity, Boosting Cybersecurity and Deploying 5G
- 16: National Artificial Intelligence Strategy
- 17: Institutional reform and strengthening of the capacities of the national science, technology and innovation system
- 18: Renewal and expansion of the capacities of the National Health System
- 19: National Plan for Digital Competencies (digital skills)
- 20: Strategic Plan to Promote Vocational Training
- 21: Modernization and digitalization of the education system, including early education from 0 to 3 years old
- 22: Shock plan for the care economy and reinforcement of inclusion policies
- 23: New public policies for a dynamic, resilient and inclusive labor market
- 24: Revaluation of the cultural industry25: Spain's audiovisual hub in Europe (Spain AVS Hub)
- 26: Plan for the promotion of the sports sector
- 27: Measures and actions to prevent and combat tax fraud
- 28: Adapting the tax system to the reality of the 21st century
- 29: Improving the effectiveness of public spending
- 30: Long-term sustainability of the public pension system within the framework of the Toledo Pact
To finish understanding it, let's look at a concrete example. Lever I, called “Urban and Rural Agenda, Fight against Depopulation and Development of Agriculture”, encompasses 3 components, Component 2 is called “Plan for Rehabilitation of Housing and Urban Regeneration” and is endowed with 6,820 million Euros. In turn, it is divided into several “reforms” and “investments”. For example, “Reform 3” is called “Housing Act” and would constitute what should be the State's response to its obligation, within the framework of its constitutional powers, to protect the right to access and enjoyment of decent and adequate housing and contributes to the key principle of affordability of efficient housing included in the Renovation Wave. Or for example, Investment 3 is called “Building Energy Rehabilitation Program (PREE)” and will promote the energy rehabilitation of existing residential buildings and other uses, through energy savings and efficiency actions and the incorporation of renewable energy.
Finally, there are the PERTES. As these were the subject of a specific article, if you want to learn more about them and the types that exist, you can consult the Next article which we did a few days ago on our blog.
How to find the grants that are part of Next Generation EU?
Through the enabled page of the Recovery, Transformation and Resilience Plan, have incorporated a search engine for calls by keyword where you can consult the published grants. On this page there is also a section with the calendar of the next calls, opportunities for SMEs, distribution of funds, reforms and investments.
Another option to keep up to date with all these new grants is to enter personalized alerts in the National Grants Base and Google Alerts. In this way, you will receive an email every time new calls for grants are published or announced that, by sector or topic, may fit your company. Follow industry pages: public entities, consulting firms specialized in raising public funds, as is the case of Intelectium, can also help you keep up to date with all the new funding opportunities that are emerging so you don't miss out on any interesting help.
Recommendations for getting the most out of Next Generation EU funds
- Find the PERTE or PERTEs that best fit your company.
- Find the components and policies that best fit your company.
- Use personalized alerts from the National Grants Base and Google Alerts.
- Follow specialized or reference pages in the sector.
- Attend aid presentation events.
- Think within your project and future objectives, which of them best fit the lines of action of the Next Generation EU funds so that when the calls for grants that best fit your company come out, you will be faster and more efficient in preparing the materials for your application.
- Let yourself be helped by consultants specialized in raising public funds. The vast majority of grants will be in the form of competitive competition, which means that you will compete with many other companies for help. A good application will make a difference and exponentially increase your ability to obtain public funding for your project.
Do you want more information about Next Generation Funds and to know if your company can benefit from them, or where it fits best? Intelectium has been advising and helping companies to apply for and obtain public funding for more than 17 years under a successful model. Contact us through our form or email: comunicacion@intelectium.com and we will make a video call or call with you to be able to advise you on the best options for your company.
