The average contribution of European funds to the Spanish economy between 2021 and 2031 will be 2.6 points according to government calculations
The Recovery, Transformation and Resilience Plan (PRTR) assumes an increase of 25,156 million euros in public accounts for the year 2023. As explained by the Minister of Finance and Public Function, María Jesús Montero, during the next financial year, the European funds will will maximize the “counter-cyclical” role they were designed with in Brussels, namely to support the economy in a slowdown in growth.
In fact, the recovery plan is expected to account for 2.8 points of Spain’s GDP next year, out of the 1.9 points it is expected to account for this year. According to government calculations, European funds will represent an average of 2.6 points of GDP between 2021 and 2031.
Montero also stressed that Spain is the most advanced country in receiving European funds related to the recovery and resilience mechanism. In this way, Spain had received 31,036 million euros until August 2022, after achieving 92 milestones and targets out of a total of 416. This corresponds to almost 25% of the total recovery plan in just over a year since its adoption.
Looking to the year 2023, responsible for European funds, Spain’s 2030 industrial policy investment stands out, with more than 4,550 million euros, an increase of 43.1% compared to a year earlier. Of this, 2,440 million euros will go to industry and energy, while 1,859 million will be invested in R+D+i+digitization.
In addition, the plan for housing renovation and urban renewal will receive more than 3,000 million euros from the Recovery Plan, while digital connectivity, the promotion of cybersecurity and the deployment of 5G will receive an injection of more than 2,600 million. Add to these figures the 2,161 million that governments (including education) have at their disposal for modernization and digitization.
And while productive investments are the focus of European funds, they will also be partially allocated to the care economy, inclusion policies, social services and social promotion. Almost EUR 1,350 million is being earmarked for these policies.
By department, the Ministry of Industry, Tourism and Trade will be the main recipient of European funds, with more than 6,200 million, up 28.3% compared to a year earlier. The Ministry of Transport, Mobility and Urban Agenda is responsible for more than 5,000 million euros of the total from European funds. The ecological transition and demographic challenge policy will be close to 5,000 million. And the Ministry of Economic Affairs and Digital Transformation exceeds the 4,800 million from the Recovery Plan.
The minister also emphasized that the implementation of European funds is proceeding at a good pace. As he pointed out, nearly EUR 43,700 million had already been approved at the end of September and commitments amounted to nearly EUR 33,000 million had been recognised.
Source: La Verdad
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