The European Commission has disbursed €9 billion to Spain in pre-financing, equivalent to 13% of the country’s financial allocation under the Recovery and Resilience Facility (RRF). But what will the money be used for?
The RRF in Spain finances investments and reforms that are “expected to have a deeply transformative effect on Spain’s economy and society,” according to the EU. These projects include:
- Securing the green transition: The plan includes an ambitious law on climate change and energy transition, enshrining the renewable targets for 2030 and climate neutrality by 2050, including a 100% renewable electricity system. The plan will also support innovative renewable energy sources with €3.9 billion and includes €3.4 billion to support more than half a million energy efficiency renovations in residential buildings.
- Supporting the digital transition: The plan contributes to the digitalisation of SMEs and the self-employed with €3 billion. Measures worth €3.6 billion will improve the level of digital skills of the population and the digital transformation of education. €3.2 billion will be invested in the digitalisation of the public administration.
- Reinforcing economic and social resilience: The plan will invest €2.4 billion in reducing the use of temporary contracts in the labour market, improving individual support to jobseekers, as well as training opportunities and better hiring incentives. Nearly €2.8 billion will be invested in reducing youth unemployment and improving vocational training by creating at least 135,000 new places in vocational education. Additional measures will strengthen the effectiveness of public policies and modernise the tax system.
Paolo Gentiloni, Commissioner for Economy, said, “The pre-financing disbursed will help Spain emerge stronger from the crisis. The plan will give a strong boost to Spain’s green transition, supporting renewable energy projects, energy efficiency renovations, and low or zero pollution mobility measures to protect the climate and people’s health.
“The education and training measures in the plan will enable many people in Spain to acquire the skills they need to benefit from the digital transition. The plan will also support the digitalisation of the public administration and businesses, especially SMEs. This will improve the efficiency of the public sector while making the Spanish economy more resilient and dynamic,” he added.
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