The Diplomat in Spain

MetroGuagua has received a loan of 50 million./ Photo: Youtube/GuaguasMunicipales

The Diplomat. 21/08/2018

Spain ranks seventh in terms of the investments mobilized by the European Fund for Strategic Investments (EFSI) in relation to its GDP, as revealed by the latest data on the impact of the Juncker Plan, the investment plan of the European Union coordinated by the Commission and the European Investment Bank (EIB).

According to the report, the Juncker Plan has not only fulfilled its commitment to mobilize 315,000 million euros in investments, but the 898 operations approved could generate up to 335,000 million euros in investments in the 28 EU Member States, which exceeds in 20,000 million the initial target set in 2015, when the EFSI was launched.

According to the Commission, Spain is going to be one of the countries most benefited by the Juncker Plan, along with other countries «more punished by the crisis», such as Cyprus, Greece, Ireland, Italy and Portugal. In the case of our country, the EIB has lent, with the support of the EFSI, up to 7,307 million euros that could mobilize a total investment of 37,245 million.

In total, 74 infrastructure projects financed by the EIB have been approved in Spain with the support of the EFSI. Only in infrastructures, financing has been 6,300 million, which could generate 27,700 million euros in investments.

For example, the EIB has allocated 50 million euros, under the Juncker Plan, to the municipality of Las Palmas de Gran Canaria to create the first Spanish rapid bus system, the MetroGuagua. In addition to the layout of bus lanes, the project will allow the municipality to acquire 17 ecological buses and build new stations, stops and a traffic control center. During the construction phase, until 2021, about 1,000 jobs will be financed.

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The funds destined to infrastructures and SMEs could generate 37,000 million in investments

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Another example is the loan, by the EIB, of 40 million for the construction in Navarra of 524 affordable and efficient housing units from the energy point of view, which will create 700 jobs in the construction phase.

With regard to small and medium-sized enterprises (SMEs), 22 agreements have been approved with intermediary banks, financed by the EIB and backed by the EFSI, which have allowed the mobilization of up to 998 million euros and which could generate an investment of 9,600 million euros. A total of 103,424 Spanish SMEs could benefit from this improvement in access to financing.

This is the case of Exovite, a small medical technology company that has developed an innovative method for the treatment of fractures, which has won numerous international awards, and has secured a loan guaranteed by the Investment Plan for Europe that has allowed it expand and meet the increased demand for this treatment by hospitals.