Connect with us

Hi, what are you looking for?

European Union

Spain to request nearly €92 billion in fresh EU funds, mostly loans

Spain will request loans from the European Union in the amount of €84 billion and €7.7bn in grants under the COVID-19 recovery package, Nadia Calvino, the Spanish economy minister, said on Tuesday (20 December).

This means that Spain will request its full pandemic relief package of over €800bn. It will also use €2.6bn of new Repower EU aid to improve energy security in Europe after Russia’s invasion.

Brussels must approve the next stage of the recovery program within two months of Madrid’s formal request for the funds. Their disbursement will also be tied to new milestones and reforms.

According to the Spanish government, EU loans and grants will add an average of 2.6 percentage points annually to gross domestic product through 2031.

Advertisement

Calvino said: “We are almost certain going to have higher growth this year than we had anticipated in…the budget for 2023,” but did not elaborate.

On Tuesday, the Bank of Spain slightly increased its forecast for economic growth for this year to 4.6% but reduced its forecast for next year to 1.3%.

The programme has been hit hard by inflation, bottlenecks, and rising materials costs. Spain requested that some milestones be reviewed and suggested that Brussels extend the deadline for 2026.

Advertisement

Calvino stated that the EU soft loans would flow through state-linked investment vehicles to ensure Spain does not have a high debt burden.

Spain is seeking to mobilize €160bn.

Calvino said that the pandemic package has already provided €31bn euros to the country, which will be used to deploy around 22 billion people.

A recent study by EY and ESADE Business School estimated that only €9.3bn have reached the real economy.

The grants of up to €7.7bn and loans up to €18.6m will increase financing for large projects such as green hydrogen production in Spain or microchip production in Spain.

After recent high-level meetings, Spain will establish a €2bn new facility to support foreign sovereign wealth funds that are looking to invest in the country’s recovery plan.

Share this article:

EU Reporter publishes articles from a variety of outside sources which express a wide range of viewpoints. The positions taken in these articles are not necessarily those of EU Reporter.

You May Also Like

European Union

After a Russian-occupied Zaporizhzhia nuclear plant in Ukraine was detained, U.N. nuclear watchdog chief Rafael Grossi announced that the man responsible has been released....

World

For many years we have seen how the Soft Power used by the Kremlin works exclusively through culture, exhibitions, musical groups presentations, etc. It...

Featured

Yesterday (8th June)  Gotham City media outlet reported that on 21 March Russian businessman Vladislav Klyushin was arrested in Switzerland at the request of...

World

The Azerbaijani diaspora, which numbers some 60 million people around the world has entered the virtual social media battle being waged between Armenia and...