Calviño draws on European funds to close the political objectives of the legislature

2023-06-07 06:04:20

The proximity of the electoral appointment, in which the surveys do not ensure the continuity of the Government of Pedro Sánchez, has not stopped the economic vice president, Nadia Calviño, from distributing the new consignment of European funds linked to the Recovery Plan with special incidence in their own Part –those dependent on the Ministry of Economic Affairs, such as Perte Chip and the one referring to R+D+i, mainly– and in the corresponding to social plans –such as rental housing– and to the green agenda –to accelerate the energy transition–.

The Council of Ministers gave yesterday green light to the addendum that will be made available to the Government 84,000 million in loans, 7,700 million in additional transfers, to which will be added the almost 2,600 million of the new REpowerEU mechanism and the almost 70,000 million corresponding to the Recovery Plan itself, of which the Executive ensures that it has already channeled 31,000 million between the communities .

With all these resources, The Government intends to give the last stretch to its social agenda, after running out of time due to the electoral advancethanks to the fact that it has concentrated the reformist manna on propping up its investments and social reforms, with the aim that the Executive that comes out of the polls has little maneuvering capacity to redistribute these funds since the corresponding requests have already been sent to Brussels, which, until so far, has placed few obstacles to its authorization.

Thus, Calviño has reinvigorated his distribution strategy and has mainly focused the distribution of funds on the Perte under his control and those related to renewables. Thus, the green hydrogen, the digitization of the water cycle and the chip are the three most reinforced strategic projects in the addendum, with 4,000 million more in subsidies out of a total of 7,650 additional million. Additionally, three social cohesion funds will be launched: a Social Impact Fund, endowed with 400 million; the RED Fund, endowed with 3,000 million, linked to the labor reform as a complement to the RED Mechanism; and the Fund for the Reform of Social Inclusion, endowed with 2,530 million, with which it intends to close the social agenda of the legislature.

The REpower program, which is aimed at accelerating the energy transition and the decarbonization of the industry, will take 3,000 million and the Perte Chip, about 12,000 million euros. The vice president also intends to load two new funds with an additional 6,250 million to apply tax reductions in green investments –2,250 million in incentives to companies and households– and in social housing –with 4,000 million through the ICO–.

As the addendum explains, the loans will be channeled through three financial instruments. The first of these will be a fund of 20,000 million that will be allocated to public projects promoted by the regional Executives and to finance public investments in areas such as social and affordable housing and urban regeneration; sustainable transport; sustainable tourism; the care economy; and water and waste management and in the energy transition. The second instrument will focus on the ICO, which will launch two green financing lines of 22,500 million, and the third will distribute the money among 12 funds for the productive fabric and regional projects, which will mobilize more than 14,000 million.

Calviño justified the advancement of this new EU fund plan “for responsibility. The addendum will provide a safety net for this investment.”