The Diplomat
Yesterday, the European Commission transferred to the Spanish Treasury the second payment of 12 billion euros corresponding to the Recovery and Resilience Mechanism (RRM). This disbursement in the form of grants brings to more than 31 billion euros the amount paid to our country until this year under the Next Generation EU plan.
Last April 30, Spain submitted to the Commission a payment request based on the achievement of the 40 milestones and objectives set out in the Council Implementing Decision for the second tranche, including investments and reforms in the areas of ecological and just transition, the labor market, pensions, regulated professions, digital connectivity and R&D, among others. Last June 27, the European Commission delivered to the Economic and Financial Committee (EFC) of the Council, composed of the 27 Member States, its positive preliminary assessment for the granting of the second payment to Spain. Once the EFC’s opinion was delivered, the Commission adopted the final decision and proceeded to disburse the financial contribution to Spain.
“This is very good news that reaffirms Spain’s leadership in the deployment of the Recovery Plan in Europe,” said First Vice-President and Minister for Economic Affairs and Digital Transformation, Nadia Calviño. “The European Commission continues to endorse the Government’s roadmap with important investments and reforms in key areas such as education and vocational training, the labor market, sustainable mobility, connectivity and the deployment of 5G to put Spain at the forefront of the new green and digital economy,” she added.
For her part, the Minister of Finance and Public Function, María Jesús Montero, said that, with Brussels’ decision, “Spain once again demonstrates that it is a country that fulfills its commitments and will be the first to receive the second disbursement of the Recovery, Transformation and Resilience Plan.” “This Government has succeeded in launching Spain’s largest modernization project and we will not cease in our goal of building a country that is more socially just, more digital, more productive and greener,” she added.
Under the Pedro Sánchez government’s Recovery and Resilience Plan, which develops the European plan and encompasses very broad investment and reform measures divided into thirty thematic sections, Spain expects to receive a total of 69.5 billion euros in non-repayable grants from the EU 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 is made in loans).
On August 17, 2021, Spain received 13% (9 billion) of this 69.5 billion in pre-financing, to which was added a first payment of 10 billion euros disbursed on December 27. Therefore, the new disbursement brings to 31.036 billion euros the amount received by Spain, up to this year, under the Recovery Plan. The grants will be released every six months and will oblige Spain to meet 416 targets, of which 92 (almost 25%) have already been met, including the 40 milestones and targets included in this second disbursement and the 52 met in the first half of 2021.
