The Diplomat
The European Commission yesterday endorsed a positive preliminary assessment for the granting of a second payment of 12 billion euros to Spain, in the form of grants, under the Recovery and Resilience Facility (RRF), which would bring to more than 31 billion euros the amount paid until this year to our country under the Next Generation EU plan.
Last April 30, Spain submitted a payment request to the Commission based on the achievement of the 40 milestones and targets set out in the Council Implementing Decision for the second tranche, including investments and reforms in the areas of green and just transition, labor market, pensions, regulated professions, digital connectivity and R&D. Other areas covered include healthcare, education, support for vulnerable groups, entrepreneurship and microenterprises, tax fraud prevention and green taxation, as well as effective and sustainable public spending. The Spanish authorities accompanied the request with detailed and comprehensive evidence “demonstrating the fulfilment of all the 40 milestones and targets,” the Commission said in a press release.
The Commission has sent its positive preliminary assessment of Spain’s fulfilment with the milestones and targets required for this payment to the Economic and Financial Committee Council (EFC), made up of the 27 Member States, which has been asked for its opinion. The EFC’s opinion, to be delivered within a maximum of four weeks, will have to be taken into account in the Commission’s assessment. Following the EFC’s opinion, the Commission will take the final decision on the disbursement of the financial contribution, after which the amount may be disbursed to Spain.
Under the Pedro Sánchez government’s recovery and resilience plan, which develops the European plan and covers very broad investment and reform measures divided into thirty thematic sections, Spain expects to receive from the EU a total of €69.5 billion in non-repayable grants over a six-year period, an amount that represents half of the €140 billion allocated to Spain in the overall Next Generation EU recovery plan (the remaining half being made in loans). The grants will be released every six months and will oblige Spain to meet more than 400 targets.
On August 17, 2021, Spain received 13% (9 billion) of this 69.5 billion in pre-financing, which was joined by a first payment of 10 billion euros disbursed on December 27. Therefore, if the new disbursement is approved, the amount received by Spain, up to this year, under the Recovery Plan would rise to 31,036 million euros.
Von der Leyen, Dombrovskis and Gentiloni
“We believe that Spain has made sufficient progress in the implementation of its national recovery plan to receive a second payment from Next Generation EU,” said European Commission President Ursula von der Leyen yesterday. “Once Member States have given their green light, Spain will receive €12 billion,” she continued. “Spain is showing continued reform momentum in key policy areas, such as the labour market and public finances sustainability,” she assured.
“With this second payment request, Spain is continuing to press ahead with its agenda of reforms and investments: in energy-efficient renovation and 5G mobile communication, for example, along with labour market reforms as well as steps to prevent tax fraud,” stressed Executive Vice-President for an Economy at the Service of People Valdis Dombrovskis. “Once the Commission’s assessment is reviewed and approved by Member States, Spain should receive €12 billion in grants to help make its economy recover further,” he added, in the same vein as Von der Leyen.
“Today we confirm the significant progress Spain is making in implementing its ambitious recovery and resilience plan,” said Economy Commissioner Paolo Gentiloni. “Once the relevant procedures are finalised, Spain can look forward to receiving €12 billion in grants to support future-oriented investments for strong and sustainable growth,” he insisted.
“The forty measures assessed for this payment request include transformative labour market reforms, agreed with social partners: these should lead to more stable jobs and investment in human capital, while maintaining the necessary flexibility for both workers and firms,” he advised. “The package also includes the first part of the pension reforms foreseen in the plan, which will in particular support pensioners’ purchasing power while aligning the effective and legal retirement ages,” he continued. “Our assessment also confirms progress towards the implementation of investments related to the green and digital transition, research and development, healthcare, education and sustainable tourism,” he concluded.
