Spain is pursuing a broad push to reinvigorate its industrial base through European funds, with a renewed emphasis on using PERTE‑style instruments as the central vehicle. This objective sits at the core of the new administration’s industrial policy, as outlined by the Minister of Industry and Tourism, Jordi Hereu, during his first appearance before the branch committee of the legislature. The aim is not new in substance; the dialogue echoes earlier statements by the former minister Reyes Maroto in 2018, who even drafted a preliminary document. Yet the emphasis this time around has sparked debate among lawmakers, who spent most of the session examining the scope and timing of aid and project listings rather than agreeing on a concrete path forward for 2024–2025. The mood in the chamber reflected both ambition and skepticism about how to translate broadly available funds into tangible, accelerated industrial growth.
The minister outlined several near‑term milestones, including the third PERTE call focusing on electric and connected vehicles. The plan envisions 300 million euros in the first roll‑out before April, comprising 200 million in aid and 100 million in loans, followed by a second phase totaling 1,250 million—250 million in subsidies and 1,000 million in loans—targeted for the latter half of the year. He also reaffirmed a commitment to ongoing measures designed to sustain momentum for electric vehicle uptake and to simplify, expand, and accelerate charging infrastructure. The administration has dubbed these steps as part of a broader “Plan Your Moves” framework for mobility transition.
Market data cited by Hereu indicate that the share of electric vehicles in Spain remains below the European average, signaling room for growth. He suggested that policy proposals are under active consideration to give buyers more certainty regarding both the availability of electric cars and the deployment of charging networks, while refraining from divulging granular details at this stage. He emphasized a willingness to refine and adjust instruments in response to feedback from industry and consumers alike.
Beyond vehicles, the minister announced a regulatory agenda that includes a new call for an agricultural and food Perte, expected to surface in the coming months. He also flagged an additional 200 million euros in subsidies for microchips and semiconductors to be distributed through 2024, underscoring the strategic aim of reducing supply chain vulnerabilities and strengthening domestic capabilities. This plan is complemented by a major naval Perte initiative, which allocates 81 million euros across 65 projects, and a progressive health sector Perte, managing 18.5 million euros for 19 projects.
Hereu also unveiled the first call for carbon removal efforts, backed by 1,000 million euros—split evenly between loans and subsidies. The program has attracted significant interest, with 88 applications already received by the prior Friday, signaling strong industry engagement. A second call is anticipated for the development of new production facilities in the first half of the year, with projects that aim to be decarbonized and to extend into the second half of 2024 and beyond 2026. The emphasis is on building a domestic ecosystem for carbon management and decarbonization that can endure economic cycles while supporting job creation.
electricity bill
The most tangible element of the policy package is a notable price relief measure. The government announced a 25 percent subsidy for electricity bills, targeted at electro‑intensive industries with significant CO2 emissions. The support package is capped at 300 million euros and is designed to help offset a portion of the indirect costs tied to CO2 emissions for large energy users. In practical terms, it means partial reimbursement for electricity costs that otherwise would have borne a heavier burden due to carbon pricing.
Hereu highlighted the growth in compensation for emissions since 2018. While the compensation had stood at around 6 million euros previously, it climbed to 244 million euros in 2022 and 2023 as the carbon market expanded. It was noted, however, that the market price for CO2 allowances rose dramatically—from about 4 euros per tonne in 2018 to around 50 euros in 2021, and roughly 80 euros in the previous year. This context explains calls from industry stakeholders and some political groups for a higher level of compensation to offset real costs faced by businesses. Some opposition factions argued that the increase was still insufficient to fully counterbalance energy and industrial transition costs.
industrial law
On another front, Hereu signaled openness to amending the draft industrial code to reflect feedback gathered from stakeholders, with the intention of securing broad consensus before advancing the measure through the required approvals. The draft legislation, finalized at the end of December 2022 by the council of ministers, sought to maintain production activity within Spain for a minimum period: five years for larger firms, and three years for major corporations, with an emphasis on safeguarding employment and ensuring continuity even if ownership structures shift. The aim is to deter the offshoring of large manufacturing facilities by major players such as Alcoa or Vestas and to create a stable framework for ongoing industrial investment.
During the discussion, voices from parliament raised concerns about potential side effects. Alberto Ibáñez Mezquita of the Sumar group warned against turning the policy debate into mere rhetoric, noting that the anticipated effects would touch only a small fraction of firms and employees. Idoia Sagastizabal of the PNV expressed doubts about another facet of the preliminary project, including the proposal to establish a strategic reserve of critical raw materials at the national level, a plan that would operate in a landscape where the majority of supply is concentrated in countries with political and economic instability. The dialogue underscored the need to balance speed in policy deployment with careful risk assessment and long‑term resilience.
In sum, the administration’s industrial strategy centers on mobilizing European funds through PERTE mechanisms, expanding support for electric mobility and decarbonization, and shaping a more predictable regulatory environment to attract investment while safeguarding employment. The ongoing conversations reflect a complex balancing act: driving modernization and competitiveness while addressing fiscal realities, market dynamics, and geopolitical considerations that influence the European energy and industrial policy landscape.