The Council of Ministers has approved the draft addendum of the Recovery, Transformation and Resilience Plan, which dictates the destination of the ‘extra’ funds in aid that the Government has to receive from the European Commissionas well as all of 84,000 million for credits that Spain will receive from Brussels through this mechanism.
As explained Nadia Calvino, Vice President of the Government, during the press conference after the Council of Ministers, all of the additional transfers (European aid free of charge), some 7,700 million euros, will be used to reinforce strategic projects for economic recovery and transformation. Namely, the PERTE.
The First Vice President of the Government has specified that They will be used to reinforce the 11 PERTE that are underway and one more that will be approved next weeka, before the end of 2022. It will be a PERTE intended for the decarbonization of the industryabout which he has not given more details.
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It has advanced that 22% of the loans will also be dedicated to the PERTE, which will be channeled through the Recovery Plan. They will be managed through 12 funds (eight of them new) that “will allow the flow of public and private financing to be maintained between now and 2026”.
Within these funds there will also be a fund with credits for sustainable investments of the autonomous communities endowed with 20,000 million euros. The ICO business support funds will also be reinforced with 15,000 million in additional loans.
To this we must add a fund that will serve to finance corporate tax bonuses (2,000 million euros) and another for the minimum vital income (IMV) with 9,000 million, to mention two.
The addendum includes a program of complementary reforms to those already deployed. These are 30 reforms, some of which include various actions, which comply with the specific recommendations for Spain within the framework of the European semester.
The reforms are intended to accelerate the ecological transition and industrial transformation, highlighting those aimed at accelerating the deployment of renewable energies, promoting electric mobility and Low Emission Zones in cities or reducing our energy dependence. Likewise, reforms aimed at improving labor insertion and promoting the qualification and requalification of workers are included.
Finally, the addendum includes the modification of certain milestones and objectives included in the Recovery Plan, in line with the request made by other countries such as Germany, due to the concurrence of objective circumstances that make compliance difficult. Despite this, the final execution schedule of all investments and reforms is maintained in 2026.
According to Calviño, the execution of the Recovery Plan together with the addendum will increase the level of the Gross Domestic Product (GDP) up to 3 percentage points on average each year until 2031.
By the end of 2022, the main programs have already been launched at the national and regional level and more than 20,000 million euros have been transferred to the autonomous communities.
The public information on the execution of the Plan shows a State credit commitment of more than 38,000 million eurosbetween calls and transfers to the regions, and resolved calls for 22,000 million euros, charged to the budget items of the Recovery Plan.