Updated Friday, November 26, 2021 – 01:55
Spain is by far the one that accounts for the most European money, despite the fact that the execution until October barely exceeded 50%
The President of the Government, Pedro Snchez, and the Minister of Finance, Mara Jess Montero, this Thursday in CongressFERNANDO VILLAREFE
Danger of fiasco for the Spanish economy. The Government has become the one that most favors the recovery to the community hand of all the member states. At the same time, it presents low levels of execution of the money, even anticipating its arrival.
The data appears in a report by the European Commission published this Thursday and gives Spain the first position in terms of dependence on European funds. The percentage of public spending that it expects to cover with the funds of the so-called Recovery and Resilience Mechanism in 2021 and 2022 exceeds 3% of the Gross Domestic Product, well above the next in the ranking that is Greece, which does not reach 2%.
EU funds recovery mechanism
Spain is not the main beneficiary of the new funds, neither in absolute figures – Italy surpasses it – nor in proportion, but it counts like no other the community money to get out of the crisis. The European Commission points out in its report that it has recommended that member states make use of the new Mechanism, but also preserve national spending to get out of the crisis as soon as possible. At the other end of Spain is Italy, which, for the moment, is betting more on the bird in hand of national spending than by the European, to the point that he has received a criticism from the European Commission. The commissioners Valdis Dombrovskis and Paolo Gentiloni they reproach the Government of Mario draghi that it has not put any more limit on its national spending with such high indebtedness.
And Spain? The European Commission does not comment that there are states that account much more than others the funds in these first two years. It reflects the volume of grants allocated in the Recovery and Resilience Mechanism as well as the disbursement schedule linked to the achievement of the planned objectives and milestones. In other words, the Government bets more than anyone to comply with the conditions in 2021 and 2022 and to execute the funds quickly.
The coalition government is simultaneously attempting a restrictive budget on national spending for recovery, according to the Commission. And that implies a risk, given Spain’s capacity for execution. Not even advancing the money while waiting to receive it from Brussels, as the Government did in the 2021 Budgets, the planned is being fulfilled.
This is stressed by a report by the Foundation of Savings Banks (Funcas) published this Thursday. According to its authors, Csar Cantalapiedra and Ana Mara Domnguez, the percentages of execution until October of the budgeted already in 2021 do not allow optimism. They barely exceed 50% on average when they give only two months to finish the year. It’s always hard to get machinery rolling, declared to the Sixth the Minister of Finance, Mara Jess Montero. She maintains that 51.8% of European funds for this year are already committed, but she was sure that Spain would end up taking advantage of the 140,000 million planned.
EU enforcement funds
In the Funcas study they point out that taking into account the budgetary distribution contemplated in the plan for 2021 and the information on the calls published until October (inclusive), there would still be a notable volume of funds to be executed before the close of the current one. exercise. It should also be noted that the degree of execution is heterogeneous, between the leverage policies and the components of the plan (…) barely two months to the close of fiscal year 2021, it seems complicated that the entire budget foreseen for this first year of implementation of the Plan can be executed.
The money planned for the modernization and digitization of the industrial fabric and the SME, the recovery of tourism and the promotion of an entrepreneurial nation Spain has not been executed even by 50% until October. Nor is it assigned to resilient infrastructures and ecosystems or to just and inclusive energy transition. Especially striking is the fiasco of an Administration for the 21st century with an execution in the first ten months of the year that does not even reach 10%, although the authors clarify that it may be above if the different administrations directly apply the resources assigned to them. The authors emphasize that chapters already executed must in turn be distributed by the communities. For next year, greater dynamism in the implementation of the funds can be expected, they point out.
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