Spain plans to send the addendum to the Recovery Plan to Brussels today to receive 94,344 million more in European funds. The addendum in question includes 84,000 million new credits that will have to be returned and 10,300 million in transfers, which are added to the 70,000 million already authorized. The text, negotiated with the European Commission, envisages increasing investments in large industrial projects, creating more than a dozen funds to channel loans and some minor reforms.
One of the legs of the addendum, to which the Spanish Government gave maximum importance yesterday, is to strengthen strategic industrial projects, known as Perte. The main investments of large companies are pending this decision. They will receive 28,275 million more, 10,000 million in direct grants and 18,000 million in loans. To compare, in the first phase of the Recovery Plan, 14,200 million were projected in transfers, which are being distributed at this moment.
Five are the Pertes that will receive a bigger budget boost. Firstly, that of the electric and connected vehicle, in full execution and awaiting the second delivery. The large automotive firms will be able to dispose of another 1.25 billion between transfers and loans. In addition, the project to turn Spain into a renewable hydrogen powerhouse will receive an injection of almost 5,500 million, and that of chips, to boost the semiconductor and microprocessor industry, of 2,720 million, similar to that of industrial decarbonization. The water cycle, for its part, will have another 3,000 million. The Spanish Government considers that the Perte are the right vehicles to continue advancing the strategic autonomy of the country, explains the economic area of ​​the Executive.
The second pillar of the addendum is the funds through which the 84,000 million in credits will be distributed. Spain has agreed with Brussels on thirteen lines of financing with favorable conditions, at an interest rate 30 basis points below the ten-year issuance cost of the Treasury, at this time. The amortization period will be 30 years.
The jewel in the crown is the regional resilience fund, endowed with up to 20,000 million, to finance sustainable investment projects of the autonomous communities. It will be distributed among territories according to “objective criteria” and will be managed in collaboration with the European Investment Bank (EIB), which will be able to co-finance investments in social housing, urban regeneration, sustainable transport, industrial competitiveness and support for SMEs, research , development and innovation, sustainable tourism, care economy, water and waste management, and energy transition.
The loans in the addendum also aim to solve financing problems for small and medium-sized companies, and for this reason a fund of up to 22,500 million will be created for investments of a sustainable nature. The Treasury will finance the Official Credit Institute (ICO) and this the private banks, which will be the ones who will make the decisions in the last instance. The objective, according to the Spanish Government, is that “SMEs and entrepreneurs of all sizes and sectors of activity can access loans anywhere in Spain”. There will be a second ICO fund with 15,500 million for investments in companies and homes to promote energy efficiency, and a third of 7,000 million for SMEs with difficulties accessing credit due to the rise in rates. There are 1,000 million of this last item reserved for tourism.
The construction of social housing or the energy rehabilitation of buildings is another of the priorities of the addendum, with two specific funds of 6,250 million in total. In addition, Moncloa and Economia offer 2.2 billion in favorable credits to defense and cyber security companies.
The Spanish Government decided to approve the addendum yesterday, even though the limit set by the European Commission is August. The First Vice-President and Minister of the Economy, Nadia Calviño, defended the decision arguing that “it was not realistic to think that a new project could be started after the elections, out of responsibility and not to put a stop to the whole process at this moment leave”. Economia calculates that European funds will increase GDP by an average of three basic points until 2031.
