[ad_1]
Spain has sent its main plan to spend 140 billion euros from the coronavirus recovery fund to Brussels, which wants Pedro Sanchez’s government to have centralized control over money and whose immediate economic impact may be less than expected.
The Socialist Prime Minister has argued that the plan presented for EU approval on Friday will transform the country’s economy in the same way that Spain did in 1986 when it joined the European Community.
In addition to the 70 billion euros in grants that Madrid expects to receive between 2021 and 2023, the government wants to hire the same number of loans from 2024 to 2026. He has also proposed more than 100 reforms.
Europe Express newsletter
Register here Europe Express, a key guide to what’s happening in Europe, can be delivered directly to your inbox every day on a weekly basis.
The European Union nations, Portugal, Germany and Greece have already submitted their plans, but others will miss the deadline on Friday, after which the European Commission will have two months to release funds to evaluate the schemes.
Spain, which has suffered the most human and economic pandemics, is one of the countries that has received the most from the 750 billion euro recovery fund, formally known as Next Generation EU.
Political opponents and some companies have complained that the Sánchez government is not transparent enough to know how to allocate money, while economists – including some at the Bank of Spain – are worried that the resources will not grow as much as the government expects.
The government has already revised this year’s growth forecast from 9.8 per cent to 6.5 per cent, in part because some EU funds will be spent later than expected.
This week the Andalusian opposition administration complained that it had not had a word from the central government since January about the fund – and expects the southern region to receive 35 billion euros.
But in an interview with the Financial Times, Spanish Industry and Tourism Minister Reyes Maroto said the planning process is open and responds to the demands of the sectors.
“We’ve been as transparent as a government, determining budget expenditures,” he said. “There has been a dialogue with all actors to design the vision we want for Spain.”
He added: “In the case of the industry, we have received more than 700 projects, with a total value of 30 billion euros, but me [just] 4 billion euros to invest in three years. . . The tourism sector has asked me for 5.2 million euros to develop its strategic project; I have 3.4 million euros. “
Maroto said EU funds would contribute 10 billion euros in planned investments in an planned electric car center, and the country also wants to boost its pharmaceutical sector in line with plans to increase its share of self-sufficiency and manufacturing GDP so far. from this 16th century 11 percent.
Today, Spain wants to reach an agreement with the commission to find out how much aid a state allows battery factory Intended to supply car manufacturers like Seat – Maroto said a problem needed to be fixed soon.
He argued that since Spain had previously borrowed 27 billion euros from the funds, it was an advantage compared to countries that had to wait for the commission to approve plans to recover the funds.
“As we have specified in the budget, we can already implement it,” he said. “We know the money will come.” The government, for example, has already authorized a budget of 731 million euros to help care for the elderly and modernize social services.
Maroto said details were still to be filled in many areas. “We have defined the structure in the plan; now we have to land [specific] projects, ”he said.
The government has been criticized for lacking clarity on the three most sensitive reforms in the plan – pensions, the labor market and the country’s fiscal balance.
He says he hopes to reach an agreement with unions and companies this year on labor reform and a first agreement on pensions, but that today economic growth and job creation will be a priority over tax reform.
[ad_2]
Source link
