Spain plans to send today to Brussels the addendum to the Recovery Plan to receive 94,344 million more European funds. The so-called addendum includes 84,000 million new in credits that will have to be repaid and 10,300 million in transfers, which are added to the 70,000 million already authorized. The text, negotiated with the European Commission, contemplates an increase in investment in large industrial projects, the creation of more than a dozen funds to channel loans and some minor reform.
One of the legs of the addendum, to which the Government gave maximum importance yesterday, is the reinforcement of 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 subsidies and 18,000 million in loans. For comparison, in the first phase of the Recovery Plan, 14,200 million were projected in transfers that are being distributed at this time.
Five are the Perte that will receive a greater budget reinforcement. In the first place, that of the electric and connected vehicle, in full execution and pending the second installment. The large automobile firms will be able to have 1,250 million more 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 3,000 million more. The Government considers that the Perte are the adequate vehicles to continue advancing in the strategic autonomy of the country, explains the economic area of ​​the Executive.
The second pillar of the addendum are the funds through which the 84,000 million in credits will be distributed. Spain has agreed with Brussels thirteen lines of financing with favorable conditions, at an interest rate 30 basis points below the cost of the ten-year issue 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 in the autonomous communities. It will be distributed among territories by “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 seek to solve financing problems for small and medium-sized companies and for this a fund of up to 22,500 million will be created for sustainable investments. The Treasury will finance the Official Credit Institute (ICO) and this will finance the private banks, which will be the ones who make the decisions in the last instance. The objective, according to the 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 EconomÃa offer 2,200 million in favorable loans to defense and cybersecurity companies.
The Government decided to approve the addendum yesterday although the limit set by the European Commission is August. The First Vice President and Minister of Economy, Nadia Calviño, defended the decision arguing that “it was unrealistic to think that a new job could be started after the elections, out of responsibility and for not putting a stop to the entire process at this time.” . Economy calculates that European funds will increase GDP by an average of three basis points until 2031.
