Spain will invest 4.3 billion euros in the production of electric vehicles and batteries as part of the country’s multi-billion-euro Strategic Projects for Economic Transformation and Recovery (PERTE). Spain is Europe’s second-largest auto producer.
The investment aims to create up to 140,000 new jobs and boost the national economy, Prime Minister Pedro Sanchez said on July 12.
“Our priority is economic, social and territorial recovery. And to achieve a vigorous recovery we cannot settle for returning to the starting point prior to Covid, but rather transform our economy.
“This revolution that we present today is structured around two axes of the Recovery, Transformation and Resilience Plan. The so-called green and digital ‘twin revolutions’, are keys to accelerating progress towards a better Spain. We are talking about a new mobility model for a new country model after the pandemic.
“It is important for Spain to react and to anticipate this transformation in Europe’s automotive sector. With this investment to promote the electric vehicle, we believe that the sector can increase its weight in GDP by up to 15 per cent by 2030,” he added.
The private sector is also expected to contribute 19.7 billion euros to the initiative by 2023.
Spain is the second largest vehicle manufacturer in Europe and the ninth largest in the world. It represents 11 per cent of total industrial turnover. The automotive sector is the fourth largest export sector and represents 15 per cent of total Spanish exports.
PERTEs are a new public-private partnership mechanism funded by subsidies and loans from the European Recovery Mechanism, also known as Next Generation EU. Spain is earmarked to receive 140 billion euros for the EU under the plan.
Thank you for reading, and don’t forget to check The Euro Weekly News for all your up-to-date local and international news stories.