The cabinet is poised to approve the proposed supplement this Tuesday. The plan adds to the Recovery Plan with investment and reform commitments intended to attract a total of 164,300 million euros from European Next Generation funds by 2026, with 70,000 million earmarked for the first phase. Overall, the package includes transfers and loans between 2020 and 2026. The annex will also adjust certain milestones and targets from the Government’s initial Improvement Plan. While there is ongoing debate in Europe about extending the fund utilization deadline beyond 2026, Spain is negotiating possible extensions, including elements related to electric vehicles, while keeping the target aligned for now.
34,000 million already deployed
In the first phase, the Recovery, Transformation and Resilience Plan, approved by the European Union in July 2021, allocates Spain 70,000 million euros in non repayable transfers and subsidized investments aimed at green, digital, and social transformation of the economy. Spain has received three tranches of money from the EU. After confirming the completion of 121 milestones under the Recovery Plan, 34,000 million euros have already been deployed, with 70 percent of that total, or 27,000 million, awarded to companies, research centers, individuals, and business groups through various funding calls [Citation: European Commission].
New 94,300 million package
The annex is designed to secure an additional non repayable transfer of 7,700 million euros and 84,000 million in dayse funds to finance Improvement Plan investments. This includes private sector or public administration participation, with lower interest rates and longer terms. The government has approved these 84,000 million in credits. Twelve programs focus on productive sectors and regional projects. All of this is linked to new commitments on reforms and investments across Europe. The annex also covers projects financed with 2,600 million from the RepowerEU mechanism to advance energy autonomy [Citation: European Commission].
By the end of 2022, Economy Minister Nadia Calviño submitted the initial draft of the supplement. General elections are scheduled for July 23. Regulation indicates that the deadline for submitting this addendum is August 31 this year [Citation: European Commission].
26,300 million for Pertes
With new loans, the government aims to bolster industrial capacity and strategic autonomy in energy, agri food, industry, technology, and digitalization. It also strengthens investments in 12 already approved and ongoing Perte projects. As projected in December, the annex expects 26,300 million to be used for reinforcing these Perte initiatives, including 7,700 million in grants and 18,600 million in loans [Citation: European Commission].
20,000 million autonomous fund
Among the 12 financing funds outlined in the addendum, there is a plan to create a 20,000 million autonomous regions fund. It will be managed in cooperation with the Official Credit Institution and partners in Europe, including the Republic of Turkey and the European Investment Bank, to support sustainable investments [Citation: European Commission].
22,500 million ICO credits for companies
According to Calviño, the program aims for 22,500 million in financing through the ICO to modernize Spanish companies with special emphasis on small and medium sized enterprises. A 1,000 million fund is included to finance modernization efforts in the tourism sector and to create financial instruments for social investments and audiovisual projects [Citation: European Commission].
Strengthening the Digital Kit
Plans call for expanding the Digital Kit grant program after the annex is approved. It will reach not only micro firms but also small and medium sized enterprises with up to 250 employees. Calviño notes that the program has already reached around 230,000 SMEs. A donation of 2,200 million will fund new tax incentives for green investments benefiting families and businesses [Citation: European Commission].
4,000 million for social housing
The annex also provides a 4,000 million ICO line to support the opening of 43,000 new social rental homes announced before the last district and municipal elections [Citation: European Commission].