The loans will seek to strengthen the Perte and promote complementary reforms
He Minister council will approve this Tuesday the addendum to the Recovery PlanTransformation and Resilience to send it later to Brussels and thus be able to mobilize more than 90,000 million euros additional funds corresponding to Spain from the European ‘Next Generation EU’ funds.
The Government has been holding meetings with the regional governments, parliamentary groups and social agents for months to prepare this addendum, with which an additional 7,700 million euros will be mobilized in transfers and 84,000 million euros in loans, to which the almost 2,600 million euros of the new REpowerEU mechanism.
By the end of the year, the Minister of Economic Affairs, Nadia Calviño presented a first draft of this addendum, on which the Executive has continued working in order to approve its final and formal version this Tuesday to send it to Brussels before the general elections are held on July 23. According to the regulation, the deadline for submitting this addendum would be August 31 of this year.
But Spain has already formally presented the request of the loans to the European Comission. With these resources and the additional transfers, the Government intends to concentrate investments and reforms in the promotion of industrialization and strategic autonomy in the fields of energy, agri-food, industrial, technological and digital, reinforcing the investments of the 12 strategic projects (Perte) already approved and underway.
According to the first draft presented, Spain will strengthen strategic projects by allocating more than 26.3 billion additional public resources to them, coming from transfers and loans associated with the addendum.
In addition, the first vice president has already advanced that among the novelties of this final version of the addendum a fund of 1,000 million euros will be included for the “modernization and sustainability” of the tourism sector.
Likewise, up to 120 million euros of the transfers will be allocated to reinforce two horizontal programs to expedite the execution of the Plan’s investments: one of micro-credentials, to promote the training and qualification of workers in skills necessary for the deployment of the Perte, and the other for technical assistance.
Additionally, the agreement reached in the European Council between the Member States and the European Parliament on the ‘RePowerEU’ plan and the allocation to Spain of almost 2,600 million euros will allow accelerate investments in the field of energy transition. They will be used to accelerate progress in renewable energy deployment, storage and full development of green hydrogen, as well as energy efficiency.
They will be channeled through 12 funds, 8 of them new
The resources will be channeled through loans through 12 funds -8 of them new- destined for the productive fabric and regional projects. Loans from the European Commission give access to sustained financing at a lower interest rate than that obtained by the Public Treasury and with long repayment terms and will allow continuing to meet the objectives of financial and fiscal stability in the medium and long term. These funds will be received as associated milestones and targets are executed.
Among the newly created funds, due to its relevance and mobilization of resources, the Fund for Autonomous Communities, with an endowment of up to 20,000 million eurosthrough which the regions will have financing under preferential conditions to in turn grant reimbursable financing to the private sector and finance public investments in eligible areas, of a sustainable nature.
Additionally, companies and the self-employed will be able to count on up to 15,000 million euros in loans, channeled through the Official Credit Institute (ICO), to facilitate investments in renewable energy, energy efficiency and circular economy, which will also consolidate the development of sustainable finance in Spain. The creation of financial instruments to support social investments and in the audiovisual field is also foreseen.
Reforms and modification of certain milestones and objectives
The first draft of the addendum presented includes a program of complementary reforms to those already deployed. Is about 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 aimed at accelerating 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 draft of 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 it difficult to comply. Despite this, the final execution calendar of all investments and reforms in 2026 is maintained.