Welcome financial news as Balearic Government to receive €300 million

CONSIDERING how badly the economy of the Balearics has been hit by the latest outbreaks of pandemic across the islands, there was an element of celebration on December 28 when the Government discovered the initial amount it is to receive from EU funds.
The Spanish Ministry of Finance announced the distribution in a series of video conferences with representatives of the autonomous communities and the Balearics will receive €300 million in support from the initial €10 billion being released from the REACT-EU mechanism.
This is more per capita than almost any other part of Spain and the figure represents 3 per cent of the total resources to be distributed among the autonomous communities with the Balearics receiving €260.99 per person against the national average of €212.65.
The money will be paid in stages intended to strengthen basic public services (health, education and social services) and the recovery of the economy and employment to cope with the effects of the Covid-19 pandemic.
Local Minister of Finance and Foreign Affairs, Rosario Sánchez Grau explained that this was the largest amount of support ever received and was effectively 163 per cent more than the total amount received between 2014 and 2020.
She said that this is a “fundamental step to deal with the consequences social and economic aspects of the Covid-19 pandemic and to contribute to the reactivation of the economy and employment in the Balearic Islands and to the strengthening of essential public services.”
The Minister added that the resources of the REACT-EU will allow the community to finance new investments in basic public service infrastructures (health, education, social services) and strengthen employment policies.
The funds from the REACT-EU program will be distributed through the ERDF (European Regional Development Fund) and ESF (European Social Fund) funds.
When one considers the major financial difficulties that all areas of business in Mallorca in particular are facing due to the closing of bars, cafes and restaurants as well as the bans on opening shopping centres in this festive period this announcement will be welcomed by those in difficulty.
The onus now however is on the Balearic Government to distribute the funds quickly and on a fair and equitable basis.

__________________________