The

Government

takes pride in the fact that Spain is leading the

deployment of the Recovery Plan

in Europe, despite the fact that in the first half of the year it has only made

payments

charged to the Recovery and Resilience Mechanism funds for

2,620.3 million euros ,

9.2%

of

what was budgeted for the entire year, according to budget execution data published this Tuesday by the

General Intervention of the State Administration (IGAE)

Of this volume of payments, 65%, some

1,700 million

euros have been

payments to the Autonomous Communities

so that they publish their calls or tenders, the rate of execution of which is unknown as they are not made public.

This means that, in practice, the money that has truly reached potential beneficiaries - private companies or public bodies - is only

920 million euros.

To date, Spain has received a total of

31,000 million euros from the European Commission.

It was last Friday, July 29, when the European Commission executed the

second disbursement for the country

, of

12,000 million euros

, which was added to the 19,000 million that had already been received in 2021 -9,000 as an advance in July of last year and 10,000 as the first disbursement in December.

"This is very good news that reaffirms

Spain's leadership in the deployment

of the Recovery Plan in Europe," said the first vice president,

Nadia Calviño.

"Spain once again demonstrates that it is

a country that fulfills its commitments

(...) This Government has managed to launch the largest modernization project in Spain and we will not cease in our objective of building a country that is more socially just, more digital, more productive and greener", said the Minister of Finance,

María Jesús Montero.

However, the data shows that between

January and June

2022 not even

a tenth of what was planned has been executed,

companies regret not being able to access these funds and experts warn of their little impact on the country's economic growth.

The

initial credit

for this year, collected in the General State Budgets (PGE), amounted to

26,900.2 million

euros, an item that was later modified until leaving a final budget of

28,273.16 million euros

.

Of these, in the first half of the year, the Executive has

authorized expenses

amounting to 14,574.4 million (

51.5%

of the total), which means that permission has been given to different Administration bodies to make use of that money.

However, the volume of

committed expenditure

-expenditure assigned to

specific projects

, that is, money whose objective has already been decided- was 9,066.68 million euros (

32%

), while

net recognized obligations

amount to 4,754.59 million (

16.8%

)

Although all these items are already being processed, the State has only made

payments for 2,630.34 million

euros.

Among the projects that have already received payments, the

Tourism Sustainability Plan in Destinations

stands out for its amount , which has received 615 million euros.

In addition, 760.8 million have been allocated to the acquisition of

pharmaceutical products and medical supplies

;

106 million have gone to

the Long-Term Care and Support Plan;

67 million to promote inclusive growth and the

Minimum Vital Income;

51 million have gone to autonomous communities to

boost culture

in the territory;

56 million to modernize and

digitize the General State Administration

and invest in R+D+i;

and 16.49 million for the National Institute of Performing Arts and Music.

No sign of "cruising speed"

Projects, in short, that

do not affect the business fabric

, something that worries businessmen.

"The speed of receipt of funds by Spain must be matched with

their arrival at companies, in the real economy.

We perceive an acceleration in the publication of

tenders and calls , but we still have room to increase this rate," the

CEOE

pointed out

. last week in its latest report on the implementation of the funds.

They have detected that the main problems that aggravate the bottleneck are that there are

too many calls with very low budgets

;

many companies -especially SMEs- and freelancers have

difficulty meeting the deadlines

of some calls;

there is a lack of administrative agility and, lastly, there are many

tenders

for public contracts that remain

void

as a result of

inflation,

which prevents funds from being channeled to the productive fabric.

AIReF considers that this is happening in 10% of cases.

"We have seen an increase in the pace of publication of tenders and contracts, but unfortunately we are not seeing the cruising speed to which the Government aspired, we are rather finishing off," says

Luis Socías

, head of the

European Funds Office from CEOE

, in conversation with EL MUNDO.

He regrets that the "atomization" of the calls is one of the main problems, since "it forces companies to cut their projects into parts, interpret different regulatory bases and make different technical reports, which greatly complicates the presentation."

Only if European funds reach the real economy will they have an

impact on economic growth

.

Although the Government expected that in 2021 its impact on the advance of the Gross Domestic Product (

GDP

) would be

2%

, the truth is that the Independent Authority for Fiscal Responsibility (

AIReF

) ended up recognizing that

its effect ended up being "almost nil".

For

2022

, a contribution of

1.6 points

was expected , but given the pace of execution, this could be much lower.

The 2,600 million that have been disbursed in the first half of this year are added to the

11,000 million in payments made in 2021

, bringing the total volume of Recovery Plan funds that have come out of public accounts to

13,600 million

of the 31,000 received to date.

In

2021

, the Government had budgeted

total credits worth 24,198 million euros,

of which 22,128 million were authorized.

The committed expense was 20,977 million, and the recognized obligations, 20,044 million.

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Know more

  • Europe

  • State's general budgets

  • Maria Jesus Montero

  • European Comission

  • Nadia Calvino

  • Inflation