Spain has authorized 73% of spending by the European funds planned for 2021 (about 24,000 million) and has committed items for 64.5% of all of them, as announced on Tuesday by the economic vice president of the Government, Nadia Calvin. Despite being a very low expense commitment rate (65%) if one takes into account that there are only 15 days left until the end of the year and that the payments actually made barely reach 4% -according to ESADE’s expert estimates. – Calviño interpreted that the important thing is that in recent weeks the deployment of the Recovery plan and that in 2022 “cruising speed” will be reached for its implementation. He also highlighted the fact that the Spanish Recovery Plan was only approved by the European Commission in July.
According to the vice president, Spain is “the country that has made the most progress” in the development of the Recovery Plan -where projects are articulated with charge of European funds-, despite the fact that, according to the latest data on the execution of the General State Intervention (as of October 31), the payments actually made barely exceed 1,000 million euros. In the press conference after the meeting of the Council of Ministers, Calviño defended that the committed spending implies that the projects have already been tendered or the calls for aid have been formulated and that the items “are going to be executed.”
Looking ahead to 2022, in addition, Calviño has announced that the Government will approve an ‘addendum’ to the Recovery Plan in which the second phase of the deployment will be addressed for the period 2023-2026 for the mobilization of subsidies and repayable loans assigned to Spain, for a total of 140,000 million euros for the entire period (in equal parts between transfers and financing).
11,000 million for autonomies and 3,000 for municipalities
According to the Economy data, so far more than 11,000 million euros have been allocated to the autonomous communities for the deployment of investments in their areas of competence: housing, sustainable mobility, promotion of renewable energy, restoration of ecosystems, renovation of public buildings, education and professional training, inclusion and social services, among others. As for local entities, they have been assigned around 3,000 million euros through royal decrees and ministerial orders calling for subsidies. Now it is these territorial administrations who must send the funds to companies and families.
Specifically, by autonomous communities, through the different sectoral conferences, 1,887 million have been distributed to Andalusia, 1,538 million to Catalonia; 1.180 a Madrid; 1,038 to Valencian Community; 732 million to Castile and Leon; 671 million to Galicia and 594 million to Castilla la Mancha.
On his side, 534 million correspond to Canary Islands; 468 million to Basque Country; 403 million to Aragon; 334 million to Murcia; 296 million to Asturias; 288 million to Baleares; 204 million to Navarra; 169 million to Cantabria; 110 million to The Rioja; 16 million to Ceuta and 14 million to Melilla.
Pertes and expressions of interest
Within the balance on the development of the Recovery Plan, the vice president highlighted that the Government has already approved three Strategic Projects for Recovery and Economic Transformation (PERTE) in driving and strategic sectors of the country, including the strategic project for the electric and connected vehicle (PERTE VEC), which has already received the green light from the European Commission, that of cutting edge health, that of renewable energies, green hydrogen and storage, approved this Tuesday by the Council of Ministers.
In addition, work is underway to approve three additional strategic projects: the PERTE on Spanish, as new language economy; the one with the agri-food chain smart and sustainable; and the one dedicated to aerospace industry.
On her side, the minister also reported that they have launched 27 expressions of interest in total, four of them aimed at communities and local corporations, for which 18,000 projects have been presented. “This shows the interest of the companies and the capacities of the country to bring the Plan to fruition,” he remarked.
THE GENERAL STATE BUDGETS for 2022: 26,000 MILLION
The General State Budgets for 2022 foresee an endowment of 26,900 million euros from the funds of the Recovery Plan.
These accounts contemplate investments with a transversal impact that affect 26 of the 30 components of the Plan. Among the most relevant items, which will involve an investment of more than 5% of the total budgeted for 2022, are: the Shock Plan for sustainable, safe and connected mobility in urban and metropolitan environments (1,124 million euros) or the Plan for the rehabilitation of housing and urban regeneration (1,389 million euros), among others.
On this issue, the Government spokesperson, Isabel Rodríguez, has affirmed that the recovery funds have a “good progress” and has ensured that they are being capillarized at a “good pace” with the autonomous communities.
Faced with this “challenge” that involves the deployment of European funds, with 140,000 million euros until 2026 in transfers and loans that are already being analyzed, the Government spokesperson has insisted on maintaining “stability” in the country and for this the Urgency of having the General State Budgets (PGE) of 2022, currently being processed in the Senate and four-year legislatures.
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