"Recovery Plan is most ambitious economic plan in Spain's recent history", says Pedro Sánchez

Moncloa Palace, Madrid

The aim of the meeting was to inform on the plan designed by the Government of Spain for the management and development of the European Recovery Funds - Next Generation EU - which amount to the receipt of 140 billion euros in transfers and credits over the period 2021-2026.

The Plan, according to the President of the Government, is "the most ambitious in Spain's recent economic history", and the greatest opportunity for our country since it joined the European Union.

The Recovery Plan provides for the most significant boost in our history in public investment and is accompanied by an agenda of structural reforms that will allow five goals to be achieved: to modernise the productive fabric and the public authorities, to boost the capacity to create quality jobs, to increase productivity and the potential growth of the economy, to reduce social and gender gaps and to boost the green economy.

In accordance with European guidelines, the measures contained in the Plan establish four pillars of transformation: the ecological transition, the digital transformation, social and territorial cohesion and gender equality. These four lines of work will be developed through 10 guiding policies and 30 components that will structure the specific projects of the Plan.

The schedule of the Recovery Plan establishes the short-term promotion of the recovery in the wake of the health emergency; boost the comprehensive transformation of our economy in the medium term; and help Spain achieve robust, sustainable and resilient development in the long term from an economic-financial, social and environmental perspective.

10 key investments in phase one of implementation of Plan

The Recovery, Transformation and Resilience Plan is structured through 212 measures, of which 110 are investments and 102 are reforms. The investments will mobilise close to 70 billion euros over the period 2021-2023. Green and digital areas will be crucial, and will receive 39% and 29% of investments respectively; education and training will obtain 10.5% of the resources and R&D+i will receive 7%.

Of the 20 main investments to be developed in phase one of the Plan, the most significant, in terms of budgetary allocation are:

1. Sustainable, Safe and Connected Mobility Strategy, with resources of more than 13.2 billion euros
2. Programme for Refurbishment of Housing and Urban Regeneration, with resources of 6.82 billion euros
3. Modernisation of Public Authorities, with 4.32 billion euros
4. Digitalisation Plan for SMEs, with more than 4.06 billion euros
5. 5G Roadmap, with almost 4 billion euros
6. New Spain 2030 Industrial Policy and Circular Economy Strategy, with more than 3.78 billion euros
7. National Digital Skills Plan, with more than 3.59 billion euros
8. Modernisation and Competitiveness of Tourism Sector, with 3.4 billion euros
9. Development of National Science and Innovation System, with 3.38 billion euros
10. The rollout and integration of renewable energies, with an investment of 3.17 billion euros.

Key reforms for modernisation of economic and social structure

The heading of the reforms that includes the Recovery Plan is based on the United Nations 2030 Agenda and on specific recommendations for Spain under the 2019 and 2020 European Semester and covers key aspects for our economy, including the energy system, teaching, business demography and the job market.

Among the main reforms provided for under the Plan are:

1. The modernisation and strengthening of the National Health System
2. A new energy system and the rollout of renewable energies, with a roadmap for green hydrogen
3. The modernisation of the justice system
4. The new care economy
5. The Water Act and purification, sanitation, efficiency, savings and reuse plan
6. The modernisation and digitalisation of the public authorities
7. The waste policy and bolstering the circular economy
8. The sustainable and connected mobility strategy
9. The reform of the national science system and support for innovation
10. A new housing policy.

Immediate implementation of Recovery Plan

Pedro Sánchez explained at the end of the meeting of the Inter-ministerial Committee that everything is ready to start developing the first projects as soon as the Recovery Plan is approved. "The beneficial consequences of the Plan will begin to be felt from the outset of its implementation", indicated the President of the Government, who stressed that the Plan is a nation-wide project for the coming decades and generations.

The Plan will contribute additional growth of around two percentage points per annum as from 2021, foster the creation of more than 800,000 jobs during the implementation period and improve the structure of the country by settling people throughout the different regions.

Non official translation