The European fund for the recovery after the economic, social and health crisis of the coronavirus is close to beginning to be distributed. Most countries have already delivered their plans to the European Commission, which now has up to two months to make its evaluation, after which the Council – the governments – will arrive, who have one more month. In short, “if all goes well”, the first money can flow “from the summer.” This has been recognized by the economic vice president of the European Commission, Valdis Dombrovskis, in his speech at the conference on European funds organized this Wednesday by elDiario.es.
Brussels foresees that the first items of European funds will begin to arrive in July: 9,000 million would be for Spain
“Spain and its people have endured some of the toughest measures in the world against this pandemic,” said Dombrovskis in his video message: “While strict confinement has helped save lives, it has paralyzed the national economy.” However, according to the spring economic forecasts made public by the European Commission last week and as recalled by the Community Vice President, “Spain’s economy should recover quickly this year and next, and growth will return to its pre-crisis level. by the end of 2022. ” According to data from Brussels, Spain will be the country that grows the most within the EU in 2021 and 2022, above 5% each year.
“But we must look even further than next year,” said Dombrovskis: “Spain is emerging as one of the main recipients of funds from the recovery and resilience mechanism with an estimated amount of € 69.5 billion in grants. This is not a coincidence. The Spanish economy has been facing several structural weaknesses for a long time. Spain has also been particularly affected by the pandemic. ”
Indeed, Spain has awarded 140,000 million between transfers and credits. The first, which are those requested by the Government, must be spent within three years. The other 70 billion loans can be consumed until 2026.
“Funding for the Recovery and Resilience Mechanism should further boost growth this year and next, and beyond,” continued Dombrovskis: “It will play a critical role in revitalizing all of our economies by driving investment; creating more sustainable growth ; create quality jobs, especially important for Spain, with its very high unemployment rate of around 15%. And it will help build a green Europe that protects our climate and environment; an innovative and competitive digital Europe worldwide ” .
“We congratulate Spain for being among the first EU countries to present its plan at the end of April,” said the Commission’s economic vice-president: “Given that the European Commission experts are evaluating it now, I cannot enter into However, it is positive to see the plan structured around green and digital transformations, social and territorial cohesion and also gender equality. The focus on cross-border investments in key strategic areas, such as hydrogen, microprocessors and 5G. Spain’s plan contains elements on sustainable transport, promoting energy efficiency in buildings and clean energy. And it also has a clear social dimension. ”
At the moment, “the European Commission is evaluating the plan, and then it will go to the Council.” And then? “If all goes well, Spain could receive 9,000 million euros of pre-financing this summer”, has announced Dombrovskis, who has also warned that this “continues to be subject to the entry into force of the decision on own resources, once it has been approved by all Member States “.
The own resources decision by which the European Commission will go to the markets to finance the 750,000 million European funds with community debt must be approved by all countries. However, there is still the parliamentary procedure in six countries. Among them, they worry in Brussels Hungary, Poland, by the opposition of the ruling parties to Brussels. And Finland, where the government was divided on the matter, achieved approval on Tuesday.
“I am sure that the recovery and resilience mechanism will bring a positive change to Spain as it comes out of this crisis. A lasting change,” added Dombrovskis, who concluded: “It will promote an inclusive recovery that leaves no one behind, in Spain and in Europe “.