Spain has urged the European Commission to speed up the approval process for state aid financed by Next Generation EU funds, with a clear emphasis on strategic projects that support economic recovery and transformation, including Perte initiatives and other investments tied to the Rescue Plan for Spain.
These points were conveyed by Nadia Calviño, the First Vice-President and Minister for Economic Affairs and Digital Transformation, during a press briefing after a meeting with Thierry Breton, the European Commissioner for the Internal Market.
Calviño underscored that Spain should become a growth engine for Europe in 2023. To that end, accelerating the deployment of European funds is essential, she noted, highlighting that the Recovery Plan, financed by Next Generation EU, serves as the principal instrument for advancing development and propelling the modernization of the Spanish economy toward a green and digital transition.
In response to the European Commission’s call to review the legal framework for state aid, Spain proposed faster procedures for approving aid backed by Next Generation EU funds, paying particular attention to Perte projects and other initiatives within the Recovery Plan for Spain.
What matters most in the current context is to accelerate all procedures and ensure the smooth functioning of the internal market, emphasized the vice president.
Supplement to Recovery Plan
Calviño recalled that Spain is finalizing an annex to the Recovery Plan, which will be sent to the European Commission this month. The package aims to mobilize a total of 160,000 million euros available to Spain through transfers and loans.
She explained that the annex will focus on five dimensions to promote industrialization and strategic autonomy: energy, agri-food, industrial, technological, and digital sectors. This articulation reflects the government’s aim to strengthen critical capacity across the economy.
To gather input, Calviño proposed a sectoral conference with autonomous communities and a social dialogue desk to collect contributions from economic, political, and social actors and to finalize and submit the annex to Brussels as part of the Recovery Plan.
Calviño expressed hope that by around 11 February the European Commission would approve and give a positive assessment for the third payment of 6,000 million euros requested by Spain within the Next Generation EU framework. Meanwhile, Minister José Luis Escrivá recalled that the second portion of pension reform work, involving social partners and political groups, corresponds to the fourth payment of funds.
Message of Confidence in the Economy
During the meeting, Calviño and Commissioner Breton discussed the importance of strengthening European industry in a global context marked by high uncertainty and the need to bolster Europe’s strategic autonomy. They also touched on the upcoming Spanish presidency of the Council of the European Union, scheduled for the second half of the year, and its role in guiding the bloc’s agenda.
The economy’s performance provided a basis for cautious optimism. Spain closed 2022 with growth surpassing five percent, while measures taken by the government and lower energy costs contributed to a notable reduction in inflation. The recovery plan continued to expand investment and employment, supported by record participation in the labor market.
All of these developments illustrate the resilience and strength of the Spanish economy and offer a solid footing to face 2023 and the challenges ahead.