Brussels authorizes further payment of 6,000 million European funds to Spain

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The European Commission announced this Friday that it has authorized payments to Spain. third slice The Recovery Plan is worth 6,000 million euros. After satisfactorily assessing compliance with the 29 investment and reform milestones and targets committed by the Spanish Government for the first half of 2022, the European Commission approved the corresponding payment of 6,000 million euros requested by the Spanish Government last November.

This Commission decision confirms that Spain is the most advanced country in the development of the European plan. Only two countries had requested payment of the third tranche from the European Commission (Spain and Italy) and Spain becomes the first country to receive the positive evaluation allowing the release of the third payment. With this payment, Spain will receive a total transfer of 37,000 million euros, which is almost half of the total amount allocated to Spain (70,700 million).

Among the reform commitments linked to the payment of the third tranche of European funds, Spain includes the reform of the bankruptcy law, the new contribution regime for the self-employed, the reform of the pension funds law, the law on the comprehensive vocational training system and the law on measures to prevent and combat tax evasion.

A total of eight payments

Spanish Rescue Plan, 8 payments in totalthe last one must be requested by the Government in 2026, the last year envisaged by the European Union for the implementation of the plan.

HE calendar Guidance agreed between the Spanish Government and the European authorities, fourth stretch (for 10,000 million euros) will be charged in the first half of 2023 for compliance with investments and reforms planned before 31 December 2022. Among the reform commitments linked to the fourth tranche of European funds is the third round of pension reform. system that includes extending the retirement calculation period and raising the maximum contribution base. Minister of Social Security, Jose Luis EscrivaIt has yet to complete tripartite negotiations with social agents, parliamentary partners and European officials that should allow the reform to continue.

Pending pension reform

Until the approval of this round of Social Security reform is complete, the Spanish Government should not demand payment of the fourth tranche of European funds. When it does, the European Commission plans to jointly consider the following: three rounds of Social Security reform. Inside First At the end of 2021, the revaluation of pensions with the CPI and the new intergenerational equity mechanism (MEI) were approved. Inside secondBy mid-2022, changes affecting self-employment and supplementary pension plans were approved. This third should focus on the calculation period of pensions and the contribution of maximum bases. The European Commission should assess whether all reforms undertaken since the end of 2021 respond to its commitment to guarantee the long-term sustainability of the pension system. It may depend on not only the payment of the fourth tranche (10,000 million) of European funds, but also as it could question previous deliveries on the two previous rounds of pension reform. To avoid this situation, the Ministry Jose Luis Escriva It maintains an ongoing dialogue with the European Commission, according to sources familiar with the process.

‘Men in Black’ of the European Parliament

The European Commission’s announcement of the third payment (6,000 million) to Spain comes amid a rare environment in the relationship between the Spanish Government and the European Parliament, which will send a delegation to Spain from Monday to oversee the execution. Transparency in the use and management of European funds in the country.

The arrival of the mission Budget Control Commission The President of the European Parliament, the German Member of the European Parliament of the European People’s Party (EPP), is receiving harsh criticism. Monika Hohlmeier, against the Spanish administration of funds. “We’re going to Spain because the government doesn’t tell us where the bailout funds are,” Hohlmeier said in an interview with ABC newspaper. Tensions have also escalated in recent days after Hohlmeier accused Spain’s vice president, Nadia Calviño, of leaking a letter to the press. The European Parliament’s Budget Control Committee’s suspicions about the Spanish administration have nothing to do with the European Commission’s repeated approval on the same issue.

Visit to Spain ‘The Man in Black’ The European Parliament coincides with an intense campaign by Alberto Núñez Feijóo’s PP against the “disappointing” Spanish administration of European funds, which they appreciate, the “lack of transparency” (as such a supervisory task is known in European jargon). . the governance of autonomous communities” and the “waste” of European money.

government data

Faced with this campaign, the Government announced that this Thursday Third report on Execution of Recovery Plan It shows the momentum in the management of European funds in 2022 and in the first month of 2023. In addition, the report details more than one hundred meetings with autonomous communities, municipalities and the private sector. Joint management of European funds.

According to government data, at the end of 2022, aid and tenders and calls for aid were concluded. 23.3 billion €(75% of the 31,000 million delivered to Spain so far), 82% of which corresponds to the General State Administration.

In addition, 20 billion 628 million euros were allocated. autonomous communities through 139 sectoral conferences and different subsidies and agreements for its direct management in jurisdictions such as education, housing, health and social policies. Their weight in the distribution of funds enables them to play a key role in bringing the funds to a productive pattern in 2023. In 2022, close to 20% of resolved calls corresponded to regional governments.

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