The central government is set to allocate a total value of 5,000 million euros to support investments in Spanish industry. These funds come from the appendix to the Recovery and Resilience Plan, which the Executive intends to present to the European Commission within this quarter. The plan envisions transferring 84,000 million in loans and 7,700 million in subsidies to the national economy, aiming to strengthen industrial capacity across the country.
A portion of these loans will be overseen by the Ministry of Industry, Trade and Tourism. If Brussels approves the second phase of the Recovery Plan, the Ministry is projected to allocate 2,500 million euros to this effort. The Productive Industry Investment Support Fund, known as FAIIP, is an instrument created in July 2021 to provide loans to Spanish companies or entities operating within Spain that undertake industrial activities. The fund covers up to 75 percent of the investment in qualifying projects, and it operates under market conditions. As a result, it is not classified as State aid.
In addition, the Ministry will establish another fund with a separate pool of resources amounting to 2,500 million euros. This fund will be managed by the Industrial Subsidiaries State Corporation, SEPI, within its development arm Sepides. These loans are planned to carry zero interest, meaning no interest payments will be required from beneficiaries.
The announcements were made last Friday by Francisco Blanco, Secretary General for Industry and SMEs from Asturias, during a ceremony at Club Prensa Asturiana of LA NUEVA ESPAÑA, part of the Prensa Ibérica group. He emphasized that additional negotiations are underway for the Recovery Plan, but the current framework is solid as long as there are no impediments to approval.
second scene
On December 20, the Council of Ministers approved the draft addendum, marking a second phase in the full deployment of European funds for Spain. Nadia Calviño, who held the position of Minister of Economy at the time, noted that the first part of the plan mobilized 70,000 million euros and, with green light, could unlock the potential for this second round. The expectation is to mobilize 84,000 million in loans and 7,700 million in grants, potentially pushing the combined impact of the package beyond 160,000 million. Calviño projected that such an injection could lift the gross domestic product by as much as three percent by 2031 across the country.
Within the 84,000 million in loans, a central component will be a 20,000 million fund designed to empower autonomous communities to issue loans that stimulate private investment under preferential conditions. The objective is to support sectors such as social housing, transportation, tourism, commerce, and small and medium-sized enterprises, all while maintaining competitive financing terms for the private sector.
Nevertheless, all these financial injections depend on formal approval by Brussels and the necessary regulatory steps being completed. The plan remains contingent on continued alignment with European authorities and the timely authorization of the second phase before funds can be disbursed and projects can proceed.