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What are the Next Generation EU Funds?
After the crisis caused by COVID-19, in July the European Council approved the Next Generation EU Funds (NGEU), a European Recovery Plan endowed with 750 billion euros that will be used to reactivate the European economy and promote its transformation, especially in the areas of digitisation and sustainability. Of which, 390 billions will be in grants, which do not have to be repaid nor will they be included capital deficit or debt calculations, and 360 billion more in loans.
How do they affect Spain?
Spain has been allocated 140 billion euros, (the equivalent of 11% of the Spanish GDP) over six years. Of which, 72 billion euros will be allocated in grants that will be mobilised by the government during the first three years (2021-2023) to maximise its impact on the rapid reconstruction of the economy, and later, the rest will be requested in the form of loans to complement the financing of ongoing projects.
Do you know whether your company is eligible for the European Funds?
What does my project need to receive funds from the NGEU plan? Do you know what the indicators that you must meet are? We will tell you everything in this video.
Who are the NGEU Plan Funds for?
All organisations: companies, associations, administrations, etc. can apply for the Next Generation European Funds provided that their projects fit within the strategic lines.
All those sectors that have suffered the most from the COVID-19 crisis, such as industry, tourism, transport and health, will receive special consideration and be more likely to generate proposals that adapt to these criteria.
What does my project need to receive funds from the NGEU plan?
The main objective of the NGEU funds is to rebuild the European economy after COVID-19 and make it more sustainable, digital and resilient.
To find out whether our project meets these objectives and is eligible for these funds, we will have to demonstrate that they have the capacity to answer the following questions:
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Contribute to the four axes of transformation defined within the Spain Can Plan.
The project must contribute in one of these four areas of transformation: Ecological transition, digital transformation, gender equality and social and territorial cohesion.
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Contribute to any of the policy levers that are part of the Spain Can Plan.
There are 10 policy levers in all covered in the plan and these have been established following the priorities set by the European Commission.
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Enhance the competitiveness of the Spanish economy on the international stage.
These projects should boost the competitiveness of the different sectors of our economy in international markets.
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Promote creating quality employment.
Given the Spanish economy's current shortcomings, it is essential that the projects cover creating stable, long-lasting and quality jobs.
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Create participatory ecosystems involving companies, administrations and other actors of different natures.
Given the composition of our business fabric, it is essential that these projects promote the creation of public-private participatory ecosystems that involve large, small- and medium-sized enterprises, Public Administrations, universities and society.
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Define a viable project, with measurable objectives and results.
Those that can be tracked and measured what their impact will be, in addition to having a budget that can be justified.
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Respect the deadlines and requirements set by the European Union.
The European Union will set deadlines for submitting, implementing and undertaking the plans and each call will have specific mandatory requirements.
How are the NGEU Funds organised?
The “Spain Can” Recovery, Transformation and Resilience Plan presented to the EU is structured around four cross-cutting axes on which the transformation of the economy will be based.
Ecological transition
To achieve the ecological transition objectives established in the Integrated National Energy and Climate Plan (INECP).
Digital transformation
To ensure connectivity, the deployment of 5G, new technologies within the company and digitisation.
Gender equality
To reduce the current gender gap in the professional environment and to strengthen the education system.
Social and territorial cohesion
To alleviate the consequences of depopulation, and to strengthen the active health, public education and employment policies.
These cross-cutting axes that underpin 10 levers and 30 components are fully aligned with those established by the Recovery and Resilience Mechanism.
From this functional architecture, a total of 212 measures are gathered, 110 of which are investments and 102 reforms for the 2021-2023 period.
For green, digital growth, no gender gaps, cohesive and inclusive.
These grants will be awarded by all public administrations (State, autonomous communities and municipalities) based on 10 policy levers:
- Urban and rural agenda and fight against depopulation
- Resilient infrastructures and ecosystems
- Energy transition
- Public Administration of the 21st Century
- Modernisation and digitisation of the industrial and SME sector, the recovery of tourism and the promotion of Spain: Entrepreneurial Nation.
- Pact for science and innovation, and the reinforcement of the National Health System.
- Education and knowledge, continuous training and capacity building
- New economics for care and employment policies
- Boosting the culture and sports industry
- Modernising the tax system for sustainable and inclusive growth
How will the projects be managed and monitored?
Specific legal framework
A specific legal framework has been adopted that modernises and streamlines investment instruments and public/private collaboration, with co-governance with the Autonomous Communities and local governments, to streamline and simplify procedures.General Secretariat for European Funds of the Ministry of Finance
This will be the competent authority for monitoring the plan's implementation. The General Intervention Board of the State Administration (IGAE) will exercise the audit functions.See Next Generation EU Funds phase by phase Next Generation EU Funds phase by phase
- The final version of the national plan must be submitted before 30 April.
- The European Commission has a maximum period of two months to respond.
- The funds will begin to be distributed in May/June.
- 70% of the resources must be assigned before 31 December 2022 and the rest before 31 December 2023.
- The European Commission is not only in charge of distributing the funds, but also their monitoring until 2026.
- Funding ends at the end of 2026.
- 2058 is the deadline for repaying publicly financed loans.
Do you want more details?
Do you need help to understand if your company can benefit from European funds?
Got a question?
The Bankinter Corporate help centre has the answer.Contact with us