Spain asks for 89 billion in EU aid
2022.12.20 12:07
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Spain asks for 89 billion in EU aid
Budrigannews.com – Economy Minister Nadia Calvino said on Tuesday that the Spanish government will ask the European Union for loans worth 84 billion euros ($89.1 billion) and grants worth another 7.7 billion euros as part of the COVID-19 recovery package.
This means that Spain will use 2.6 billion euros in new Repower EU aid to improve energy security in Europe following Russia’s invasion of Ukraine and will seek its entire allocation from the European pandemic relief package, which is worth over 800 billion euros.
Through the year 2031, the government projects that the grants and loans from the EU will, on average, add 2.6 percentage points to the gross domestic product.
Calvino said at a news conference, without going into detail, “We are almost certainly going to have higher growth for this year than we had predicted in…the budget for 2023.”
The Bank of Spain prior on Tuesday somewhat raised its monetary development expectation during the current year to 4.6% yet cut the gauge for the following year, when it anticipates that a precarious stoppage should 1.3%, and for 2024.
She added that Calvino stated that the EU’s soft loans would be channeled through state-linked investment vehicles to avoid having an effect on Spain’s public debt.
Out of the 140 billion euros initially planned and later increased by new programs or adjustments, Spain will mobilize 160 billion euros.
It has up until this point got 31 billion euros from EU pandemic recuperation reserves and conveyed around 22 billion from that sum, as indicated by Calvino, albeit a new report by EY experts and ESADE business college assessed that simply 9.3 billion euros had arrived at the genuine economy.
The Official Credit Institute (ICO) fund will receive up to 15 billion euros to provide businesses with green financing.
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The 7.7 billion in grants and up to 18.6 billion in loans will increase the amount of money that has already been given to big projects like making microchips in Spain or making green hydrogen.
