Spain´s ambitious economic recovery plan

by Lorraine Williamson
Economic recovery plan

MADRID – “Recovery Plan is the most ambitious economic plan in Spain’s recent history”, says Sánchez.

Pedro Sánchez, chaired the meeting of the Inter-ministerial Recovery Committee, the main governance body for the Recovery Plan. Furthermore, the management and development of the European Recovery Funds was discussed at the meeting.

Spain is to receive €140billion in transfers and credits between 2021-2026. Half of this will be in transfers and the remainder will be by way of a loan. Accordingly, the corona virus recovery plan must be presented to Brussels by the end of this month for approval. However, prior to that, it will be thrashed out at the Spanish Congress.

The most ambitious in recent history

The Plan, according to Sanchez, is “the most ambitious in Spain’s recent economic history”, and the greatest opportunity for our country since it joined the European Union.

The economic plan provides for the most significant boost in Spanish history in public investment. Importantly, it includes structural reforms allowing five different goals to be achieved. Additionally, the EU places great importance on gender equality, digitalisation, green economy, productivity and ensuring rural areas are not forgotten.

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As a result, the plan will;

  • modernise the productive fabric and the public authorities
  • boost the capacity to create quality jobs
  • increase productivity and the potential growth of the economy
  • reduce social and gender gaps
  • boost the green economy.

Furthermore, in accordance with EU guidelines, the measures outlined in the Plan establish four pillars of transformation. Therefore, these are;

  • ecological transition
  • digital transformation
  • social and territorial cohesion
  • gender equality.

According to La Moncloa, the Recovery, Transformation and Resilience Plan is structured through 212 projects. Of these, there is a mix of 110 investments and 102 reforms. The investments will equate to around €70billion during 2021-2023. Moreover, green and digital areas will be crucial as will education, training and research and development.

Most significant investments in Phase one of the Plan

  • Sustainable, Safe and Connected Mobility Strategy, with resources of more than €13.2billion
  • Programme for Refurbishment of Housing and Urban Regeneration, with resources of €6.82billion
  • Modernisation of Public Authorities, with €4.32billion
  • Digitalisation Plan for SMEs, with more than €4.06billion
  • 5G Roadmap, with almost €4billion
  • New Spain 2030 Industrial Policy and Circular Economy Strategy, with more than €3.78billion
  • National Digital Skills Plan, with more than €3.59billion
  • Modernisation and Competitiveness of Tourism Sector, with €3.4billion
  • Development of National Science and Innovation System, with €3.38billion
  • The rollout and integration of renewable energies, with an investment of €3.17billion

Key reforms for modernisation of economic and social structure

The heading of reforms that includes the Recovery Plan is based on the United Nations 2030 Agenda and on specific recommendations for Spain.

Among the main reforms provided for under the Plan are:

  • modernisation and strengthening of the National Health System
  • new energy system and the rollout of renewable energies, with a roadmap for green hydrogen
  • modernisation of the justice system
  • new care economy
  • Water Act and purification, sanitation, efficiency, savings and reuse plan
  • modernisation and digitalisation of the public authorities
  • waste policy and bolstering the circular economy
  • sustainable and connected mobility strategy
  • reform of the national science system and support for innovation
  • new housing policy.

At the end of the meeting, Pedro Sánchez explained everything is in place to start developing the first projects as soon as the Recovery Plan is approved. “The beneficial consequences of the Plan will begin to be felt from the outset of its implementation”, continued Sanchez.

‘In the short term, we want to promote the recovery our economy.Then in the mid-term, we want to foster its complete transformation,’ Sanchez said. ‘The pandemic has made even more urgent a transformation that was already necessary.’

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