Spain speed up distribution european funds Recovery, Transformation and Resilience Plan (PRTR), the EU’s roadmap to revitalize and modernize the Spanish economy through billionaire injection. In recent months, calls for tenders and subsidies from the European manna have gained momentum, but the efficient allocation of funds – albeit increasing – is still below the expectations of the beneficiaries.
this Public administrations have allowed 43 billion 200 million euros to be spent in the last two years transferred to European funds through tenders and grants Just under a third, 13,600 million, was distributed through contracts and grants by mid-November last year.According to data managed by the Next Generation EU Funds Observatory EsadeEcPol and EY Insights.
The central government, autonomous communities and town halls called for nearly 1,500 competitions. A total of 28,500 million subsidies, of which 9,300 million have already been given as aidespecially with regard to such assistance, according to the most recent report made public by the business school study center and consultancy.
And Administrations also launched lQuotes of 14,700 million euros, which has already resulted in contracts of 4,300 million euros.as attested by Observatory sources, which analyze all European-funded-enabled programs by automatically collecting information published in both the National Grants Database and the Public Sector Contracting Platform.
Subsidies Between Public Administrations
Administrations use two major instruments. Implementing and executing investments loaded into European funds: Contracts where the winning company or organization must offer goods or services in exchange for payment, and subsidies given without necessarily providing a response.
The latest report from EsadeEcPol and EY Insights provides a detailed analysis of the distribution of subsidies in particular. Of the 28,500 million aid calls, 80% correspond to the central government, 22,900 million to 5,100 million in autonomous communities, 830 million issued by local organizations, and 430 million to public universities.
Part of this amount is transfers from the central government to other administrations that are then responsible for the execution of European funds. Specifically, Of the subsidies called, 28,500 million, 10,600 million are transfers. CCAAmunicipalities or other public institutions and 17,900 million left, almost two-thirds of the total, those that need to go directly into the economic and social fabric (including 10,700 million for SMEs and 3,370 million for large companies).
In the case of subsidies already given, the dynamic is repeated. Of the 9,300 million aid distributed, 5,100 million would go to autonomous communities and municipalities, while 4,200 million would go directly to the productive fabric., economic and social Spanish (or only 3,400 million excluding aid directly received by public universities). That is, 19% to 23% of the approximately 18,000 million subsidies requested, without an administration being the beneficiary, were given and effectively injected into the real economy.
“The pace of implementation in recent months has been more than significant,” the Observatory report says. “Amounts available for subsidies are high and undoubtedly reflect a clear commitment by administrations for greater speed in publication,” particularly since last May. However, he notes, “concessions are proceeding at a much slower pace, due to administrative procedures that require greater complexity and therefore longer completion times.”
“cruise speed”
Faced with opposition and criticism from companies over the slow implementation of funds and their delayed entry into the real economy, The central government argues that the EU country is the fastest to distribute the funds and that the Recovery Plan is implemented.Transformation and Resilience has reached “cruise speed” this year, and 2023 will be the year when the “maximum deployment” of EU funds will take place.
The executive once again turned European funds into a support point to encourage investment and support economic growth; This includes the draft General Government Budget (PGE) for next year’s expenditures, corresponding to a total of €25,156 million (23,840) in EU funds. million from the Recovery and Resilience Mechanism and 1,316 million from the React EU program). A new package of European funds has been added to the nearly 53,000 million collected in the two state budgets run by his government. Pedro Sánchez in previous years: 26,634 million projected in 2021 accounts and 26,355 million in 2022 budgets.
The 25,156 million European funds included in the PGE project are not fueled by the nearly 70,000 million non-refundable transfers committed for the first time from the European Union in 2020 alone, as in previous years’ budgets.
The new government accounts also include approximately 9,500 million, corresponding to the annex to the Recovery Plan the Government is contemplating and will soon send to Brussels. This amount includes both the non-refundable funds corresponding to the extra funds approved for Spain as it is experiencing a lower-than-expected economic growth by Brussels, and the first loan package that the Spanish State will eventually have to return to Brussels at low interest.