{"id":33507,"date":"2022-06-16T21:00:00","date_gmt":"2022-06-16T19:00:00","guid":{"rendered":"https:\/\/www.11onze.cat\/?p=33507"},"modified":"2022-06-23T11:13:26","modified_gmt":"2022-06-23T09:13:26","slug":"contentious-handling-next-generation-funds","status":"publish","type":"post","link":"https:\/\/www.11onze.cat\/en\/magazine\/contentious-handling-next-generation-funds\/","title":{"rendered":"The contentious handling of Next Generation funds"},"content":{"rendered":"<div class=\"component text\">\n  <div class=\"container\">\n\n\n    <div class=\"row\">\n      <div class=\"col  col-lg-8  offset-lg-2\">\n        <h3><b>The European Union&#8217;s Next Generation funds should provide 140 billion euros in aid and loans to the Spanish economy. While the Spanish government boasts of exemplary management, autonomous communities and business organisations criticise bottlenecks that slow down their arrival in the real economy.<\/b><\/h3>\n<p>&nbsp;<\/p>\n<p><span style=\"font-weight: 400;\">The Spanish government&#8217;s 2022-2025 Stability <\/span><a href=\"https:\/\/www.hacienda.gob.es\/CDI\/Programas%20de%20Estabilidad\/Programa-de-Estabilidad-2022-2025.pdf\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Programme<\/span><\/a><span style=\"font-weight: 400;\"> foresees that, together with the impact of the war and the recovery of tourist activity, &#8220;<\/span><b>the third factor that will determine growth in 2022 will be the Recovery Plan<\/b><span style=\"font-weight: 400;\">, whose first effects were already felt in 2021 and which will reach its cruising speed this year&#8221;. However, this third factor seems to be moving forward with the handbrake on.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The PERTEs (Strategic Plans for Economic Recovery and Transformation) were created with the aim of organising the distribution of a large part of the 140 billion euros in aid and loans that the EU has granted <\/span><a href=\"https:\/\/www.11onze.cat\/en\/magazine\/funds-recovery-business-covid-sector-shared-out\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Spain<\/span><\/a><span style=\"font-weight: 400;\"> to alleviate the economic ravages of the pandemic. <\/span><b>So far, eleven PERTEs have been approved<\/b><span style=\"font-weight: 400;\">, three of which have open calls for applications and one, for electric vehicles, is already closed.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">According to the Spanish government&#8217;s Recovery, Transformation and Resilience <\/span><a href=\"https:\/\/planderecuperacion.gob.es\/\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">Plan<\/span><\/a><span style=\"font-weight: 400;\">, <\/span><b>the largest allocations are expected to go to the modernisation and digitisation of industry and services (23%), the urban and rural agenda (21%) and infrastructure (15%)<\/b><span style=\"font-weight: 400;\">. And to a lesser extent, to education (10 %), energy transition (9%), employment policies and the care economy (7%), modernisation of public administration (6 %) and the National Health System (6%), with residual percentages for culture and sport.<\/span><\/p>\n<p>&nbsp;<\/p>\n<h3><b>Contrasting visions<\/b><\/h3>\n<p><b>The Spanish government boasts of being the one that has mobilised the most Next Generation funds from the European Union<\/b><span style=\"font-weight: 400;\">, and the one that has done so most quickly. And the truth is that the President of the European Commission, Ursula von der Leyen, recently stated that Spain had been the first country to apply for the second payment of European recovery funds.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">However, <\/span><b>business organisations have a very different view<\/b><span style=\"font-weight: 400;\">: they estimate that only 13% of the nearly 33 billion of the eleven approved EERP funds have been mobilised and that barely 2% of the total has reached the real economy.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">It is estimated that 8 of the 19 billion for 2021 have yet to be mobilised, to which at least another 26 billion should be added this year. But there is also the problem that <\/span><b>part of the money mobilised was destined for public bodies such as ADIF or is still stuck between the central government and the autonomous communities<\/b><span style=\"font-weight: 400;\">, which aspire to allocate of half of the aid.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Various business organisations have criticised the Spanish government for the<\/span><b> lack of agility, the lack of time for the presentation of applications in some solicitations, the bureaucratic complexity and, in short, the low percentage of Next Generation funds that have reached companies<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Both the president of the CEOE, Antonio Garamendi, and the president of the Galician Confederation of Entrepreneurs, Juan Manuel Vieites, have agreed in recent months that only one in four euros has reached companies.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For their part, organisations such as the Independent Authority for Fiscal Responsibility (Airef) have also criticised the government for the delays in implementation and the lack of official information.\u00a0<\/span><\/p>\n<p>&nbsp;<\/p>\n<h3><b>The multiplier effect of European aid<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">In the calls for proposals planned by the central government and the autonomous communities for the second half of this year,<\/span><b> suburban railways, digitalisation, health and the agri-food industry should be the areas with the highest concentration of funds<\/b><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><b>The pull effect of public aid is evident,<\/b><span style=\"font-weight: 400;\"> as highlighted in a recent <\/span><a href=\"https:\/\/www.bde.es\/f\/webbde\/SES\/Secciones\/Publicaciones\/InformesBoletinesRevistas\/ArticulosAnaliticos\/22\/T2\/Fich\/be2202-art11.pdf\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">report<\/span><\/a><span style=\"font-weight: 400;\"> by the Bank of Spain, which calculates that &#8220;a 1% increase in public investment would be associated with an increase of the same magnitude in private investment in the short term&#8221;.<\/span><\/p>\n<p><b>Hence, the importance of speeding up the execution of European funds<\/b><span style=\"font-weight: 400;\">. Also, there is concern about another piece of data from a <\/span><a href=\"https:\/\/www.bde.es\/f\/webbde\/SES\/Secciones\/Publicaciones\/InformesBoletinesRevistas\/NotasEconomicas\/22\/T1\/Fich\/be2201-ne02.pdf\" target=\"_blank\" rel=\"noopener\"><span style=\"font-weight: 400;\">survey<\/span><\/a><span style=\"font-weight: 400;\"> by the Bank of Spain: the proportion of companies interested in applying to calls for proposals related to projects financed with European funds fell to 16.6% in the first quarter of 2022, some 7 percentage points lower than in the previous quarter.\u00a0<\/span><\/p>\n<p><b>The Bank of Spain expects the Next Generation funds to contribute 1.4% to Spanish GDP in 2022<\/b><span style=\"font-weight: 400;\">, but this percentage could be reduced if the aid does not arrive to the extent and at the speed expected.<\/span><\/p>\n<p>&nbsp;<\/p>\n<p><b>11Onze is the community fintech of Catalonia. Open an account by downloading the super app El Canut for <\/b><a href=\"https:\/\/play.google.com\/store\/apps\/details?id=com.e11onze.app&amp;utm_source=emailing&amp;utm_campaign=CANUT+launch\" target=\"_blank\" rel=\"noopener\"><b>Android<\/b><\/a><b> or <\/b><a href=\"https:\/\/apps.apple.com\/us\/app\/11onze\/id1566129237?utm_campaign=El+Canut\" target=\"_blank\" rel=\"noopener\"><b>iOS<\/b><\/a><b> and join the revolution!<\/b><\/p>\n\n      <\/div>\n    <\/div>\n  <\/div>\n<\/div>\n\n\n<div class=\"component cards\">\n  <div class=\"container\">\n    <div class=\"row\">\n      <div class=\"col col-xl-8 offset-xl-2\">\n        <h1>If you liked this article, we recommend you read:<\/h1>\n        <div class=\"cards__wrapper\">\n          <div class=\"card\">\n            <a href=\"https:\/\/www.11onze.cat\/en\/magazine\/funds-recovery-business-covid-sector-shared-out\/\" class=\"card-link\" target=\"_self\"><\/a>\n            <div class=\"card-img\">\n              <img decoding=\"async\" src=\"https:\/\/www.11onze.cat\/wp-content\/uploads\/2021\/05\/THUMBNAIL_AJUDES_COVID-800x498.jpg\" class=\"card-img-top\" alt=\"\">\n                <span class=\"card-category\">Economy<\/span>\n            <\/div>\n            <div class=\"card-body\">\n              <p class=\"card-title p2\"><strong>How EU Covid-19 funds our business sector<\/strong><\/p>\n              <span class=\"card-time\">3 min read<\/span>\n              <p class=\"card-text small\">If there is one thing the Covid-19 pandemic has done, it is to<\/p>\n            <\/div>\n          <\/div>\n\n\n          <div class=\"card\">\n            <a href=\"https:\/\/www.11onze.cat\/en\/11onze-tv\/recommends\/large-companies-european-aid\/\" class=\"card-link\" target=\"_self\"><\/a>\n            <div class=\"card-img\">\n              <img decoding=\"async\" src=\"https:\/\/www.11onze.cat\/wp-content\/uploads\/2021\/07\/THUMBNAIL_AJUTS_EUROPEUS-800x453.jpg\" class=\"card-img-top\" alt=\"\">\n            <\/div>\n            <div class=\"card-body\">\n              <p class=\"card-title p2\"><strong>Large companies and European aid<\/strong><\/p>\n              <span class=\"card-time\">1 min read<\/span>\n              <p class=\"card-text small\">The EU will send 140 billion euros to Spain as part of the post<\/p>\n            <\/div>\n          <\/div>\n\n\n          <div class=\"card\">\n            <a href=\"https:\/\/www.11onze.cat\/en\/magazine\/11onze-check-banks-complain-they-right\/\" class=\"card-link\" target=\"_self\"><\/a>\n            <div class=\"card-img\">\n              <img decoding=\"async\" src=\"https:\/\/www.11onze.cat\/wp-content\/uploads\/2021\/12\/11onze_check_THUMBNAIL_CHECK1.jpg\" class=\"card-img-top\" alt=\"\">\n                <span class=\"card-category\">11Check<\/span>\n            <\/div>\n            <div class=\"card-body\">\n              <p class=\"card-title p2\"><strong>Banks complain \u2013 are they right?<\/strong><\/p>\n              <span class=\"card-time\">6 min read<\/span>\n              <p class=\"card-text small\">On 21 of June 2020, the European Council approved an<\/p>\n            <\/div>\n          <\/div>\n\n              <\/div>\n              <br>\n              <br>\n              <div class=\"cards__wrapper\">\n\n        <\/div>\n      <\/div>\n    <\/div>\n  <\/div>\n<\/div>","protected":false},"excerpt":{"rendered":"","protected":false},"author":71,"featured_media":33497,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","footnotes":""},"categories":[1],"tags":[172],"class_list":["post-33507","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized","tag-economy"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.7 - 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