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 provisioned 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.

What is happening in Spain

Spain has been allocated 150 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.

The "Spain Can" Plan subsidies

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.

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: fight against depopulation and for the development of agriculture.
  • Boosting Infrastructures and resilient ecosystems.
  • Energy transition and renewal.
  • Modernisation of the Public Administration, including the Justice System.
  • 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 skill development.
  • New economics for care and employment policies.
  • Development of culture and sport.
  • Modernisation of the tax system increasing the progressivity and redistribution of resources.

Ver The Next Generation EU Funds, are they for me? The Next Generation EU Funds, are they for me?

Absolutely all sectors of our economy can access the European funds. However, there are sectors such as construction, energy, telecommunications, automotive, transport or tourism, which are more in line with investment policies and have a more relevant role in achieving the objectives proposed by the government's plan.

What does my project need to receive funds from the NGEU plan?

  • Respond to any of the 10 leverage policies established by the “Spain Can” Plan.
  • Contribute to the four areas that the Spain Can Plan considers as the cross-cutting axes of the transformation of the Spanish economy.
  • Enhance the competitiveness of the Spanish economy on the international stage.
  • Create stable and quality employment.
  • Promote the creation of participatory ecosystems that involve large, small and medium-sized enterprises, public administrations, universities and society.
  • Be viable and have a justified budget.
  • Establish clear goals, intermediate objectives, milestones and impacts, developing indicators that allow the project's progress and scope to be evaluated.
  • Adapt to the deadlines set by the EU.
  • Adapt to the specific requirements that may be established for each call.

Ver 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.

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