The CEOE European Projects Office has prepared its fourth monitoring report on the Next Generation EU European Funds, which concludes that, although Spain is at the forefront in receiving funds transferred by the EU, it is necessary to transfer the same speed in the arrival of funds to the real economy.
Specifically, Spain has received 31,000 million funds by way of subsidies from the total Plan which, including the Addendum to the planned Recovery Plan, encompasses a total amount of 164,000 million euros.
However, at the level of execution, the official data of December 20, 2022 indicate that there has been a deployment of 22,000 million euros in calls to date, with data from the General State Administration (AGE). Moreover, of this amount, only 9,500 million euros are allocated to the private sector, around 43% of the total.
This situation is especially worrying since the year 2023 will be key for the execution of the PERTES. In other words, This year should be the year of the consolidation of the largest allocation of funds in the history of Spain.
For this reason, we insist that the large lines of aid for tractor projects, included in the PERTES and with a transforming impact, must finish landing in the private sector.
In this sense, it is essential to continue increasing the rate of publication and resolution, especially in certain sectors linked to the strategic autonomy of Spain.
Additionally, companies (large, SMEs and the self-employed) need greater flexibility in accessing calls, as well as an additional effort from the public sector to eliminate bureaucracy and reinforce administrative agility.
Specifically, we observe that there is room for maneuver to encourage the participation of SMEs in calls for multiple and varied projects (large companies, SMEs, universities, centers…) as opposed to grants for individual projects.
Finally, within this global vision, we consider it important to advance in the publication of updated information by the Government on the actual data on the arrival of funds to the real economy, in the style of countries such as Portugal.
Greater flexibility in meeting milestones
The report also highlights that, although many of the investment milestones within the ‘Plan España Puede’, especially the PERTES, have a high transforming impact on the economy, at the same time they present complex start-up procedures, which generate administrative procedures and long business
For this reason, we consider it necessary to be able make some of the investment milestones of the Plan more flexibleso that they can start before 2026, but their completion can take several years.
The Addendum Opportunity
On the other hand, the Addendum to the Recovery Plan still pending resolution represents a new opportunity to improve and streamline the management of European funds.
We also insist on committing, within this framework, to the efficient development of strategic projects and the reinforcement of strategic autonomy (Spanish and European) in the areas of energy, agri-food, industry, technology and digitization.
We believe it is important to make the conditions of access of companies to the calls more flexible, especially in the cases of SMEs and the self-employed for the PERTES consortia. For example, lowering the requirements for guarantees.
We understand that it is important strengthen collaboration with the financial sector to ensure maximum speed and capillarity of aid; and we consider it necessary to incorporate tax incentives charged to European funds, as other countries such as France, Portugal, Italy or Denmark are already doing.
European State aid framework
Finally, it is important to keep in mind that the European funds that Spain receives are considered, in practically all investments, State aid.
Therefore, they are subject to the ex ante notification regime of EU State aid, a framework that we understand should be made more flexible given the moment in which we find ourselves, always respecting the internal market.
On the other hand, the European Union should make the communication procedures for State aid easier, as well as speed up the bureaucratic aspects in the management of the national Plans.
Lastly, we are committed to Spain reinforces its presence in the Important Projects of Common European Interest (IPCEIS)as has been recently proven with the presence of Spain in the IPCEI for hydrogen.
Sector vision: rehabilitation of homes and buildings
Likewise, the report includes an analysis of the funds allocated to the rehabilitation of homes and buildings. Said study concludes that from the different levels of the Public Administration, the information and didactic work on rehabilitation programs should be reinforced. Similarly, in relation to the presentation of aid applications, the procedure is complex, an aspect that discourages potential beneficiaries, particularly communities of owners.
In addition, with regard to the Addendum, one of the proposals is the acceleration of the pace of housing rehabilitation and its industrialization (sustainable, green and circular construction), through the creation of a line of support for zero-rate or concessional loans , aimed at financing energy rehabilitation projects. All this should be carried out with the collaboration of financial institutions.
See the full report here.