Four autonomous communities have not yet solved a single euro of Moves III

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In Spain, it has only exported 13% of the 626.4 million allocated so far, which will have to be further extended

There is still a year and a half to go before the deadline for applications for the electric car incentive program Moves III, and at the moment there are four autonomous communities that have not yet provided a single euro for the more than 4,000 applications that are piling up. These are Asturias, Cantabria, Castilla y León and Extremadura, which together have a budget of 62.8 million euros, 10% of the total allocated so far: 626.4 million of the 800 available.

Moves III was approved in mid-2021 as part of the government’s recovery, transformation and resilience plan, with funds coming from the Next Generation Europeans. A total of 2,000 million euros was made available to promote electric mobility in Spain, divided between Moves Singulares II (aims to promote R&D, with 100 million enabled out of 300); Moves Fleets (50 million to subsidize the purchase of more than 25 units) and Moves III itself, which boosts the fleet and electric infrastructure by paying part of the cost of the electric vehicle — up to a maximum of 7,000 euros — and from private shippers —up to 80% of the cost of the project—.

EUR 400 million was originally planned for this chapter, expandable by another 400 million – this amount is already foreseen in the 2021 Budgets – when it ran out, which happened quickly. If the same happens with this extension -predictably before the execution term ends, on December 31, 2023-, these can be further extended up to the maximum amount of 1,535 million.

Of the 400 million extended in June last year, 226.4 million have already been allocated to nine Autonomous Communities that have requested to expand their funds. Some double their original stake, such as Catalonia or the Valencian Community, with 65.5 and 42.6 million respectively; and others, such as Madrid, which received 30.8 million, 50.3% of the budget originally allocated. There are cases of territories that have applied for an extension without processing a request, as is the case in Castilla y León, which has 2,302 contracts — 1,416 for vehicles and 886 for chargers — unresolved. The other regions that have not yet approved are Asturias, Cantabria and Extremadura.

Because they are European funds, they require special control and the processing is “painfully slow”, they say of the Council. In any case, those 2,302 requests came in at 24.8 million, more than the 20.2 originally allocated.

In July, there are still seven regions to request an increase in their funds. According to the Institute for Energy Diversification and Saving (IDAE), the body that relies on the Ministry of Ecological Transition to manage this budget, Galicia is processing an extension of funds for another 22.7 million and they hope that “in the coming months » Extremadura (8.9 million), Asturias (8.6), Cantabria (4.5) and La Rioja (2.1) have been approved for a total of 46.8 million, i.e. from the second expansion of 400 million, only 129.5 million would be distributed 18 months before the deadline.

One of the concerns that may arise is whether there will be time to distribute the funds, which are administered by each autonomous community, as some areas have not yet found a solution, but the regional governments are confident that they will accept the applications will be able to process them before 2023.

The implementation situation of Moves III at the beginning of July has resolved only 81.4 million euros, barely 13% of the 626.4 million in total allocated to the Autonomous Communities. In percentage terms, Navarra stands out, having met 73.2% of its original budget of 5.5 million – more than the charging point allocation, for which it requested a further 17.8 million – and Andalusia, on the other hand, has largest budget (71.3 million), but 2.1% has barely been resolved: 1.4 million.

From the IDAE, they confirm that the nine territories that have expanded their capital have already received the official statement, so they must publish their new call in the regional bulletins, something that the government of Castilla y León believes will happen “in a matter of weeks”.

At the moment, the funds are handled by means of a waiting list, with priority being given to the oldest. Although Pedro Sánchez has already indicated that the funds have been extended, they are not really available. At least not before each community publishes the extension of the call in its official bulletin, which is expected to happen in the coming weeks.

One of the criticisms that the Moves III articulation has received from the president of the Spanish Association of Automobile Manufacturers (Anfac), Wayne Griffiths, has been its fiscal complexity.

While in Germany a private individual can receive a bonus of 9,000 euros to buy an electric car, in Spain the subsidies are considered capital gains and there is a risk that the income tax bracket will change. Moreover, they are not fully received, but, depending on the citizen’s income, between 19% and 47% of the aid received in the declaration will have to be returned.

For the director of Aedive, the association that advocates the promotion of the electric vehicle, Arturo Pérez de Lucia, these incentives are not as optimal as they could be: “There must be immediate support and a VAT reduction”, he says. . In fact, a tax reform is something his organization is advocating together with Anfac or the representatives of the official dealers (Faconauto) to promote the demand for zero-emission mobility.

The extent to which the delay in the approval of the aid affects the purchase of an electric car is difficult to determine and is not due to other factors, such as the lack of supplies due to the shortage of semiconductors.

During the first half of the year, monthly sales of these vehicles had stagnated at the 6,000 unit mark, with a market penetration of about 8% — when the total number of car registrations was lower, their share was higher —.

Source: La Verdad

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