The Budgets for 2022 will be sustained, in large part, by the rain of millions that will arrive from Europe in the context of the ‘Next Generation’ program. The Government has collected an item of 27,633 million from these funds, and plans that 90% of this figure will be used for investments through the Recovery, Transformation and Resilience Plan presented a few months ago. Also, the 40% of these funds will go to industry, energy, R + D + i and digitization.
Time is short, and as stated in the Budget project, the Government has estimated that “almost 80 percent of the funds will arrive in the years 2021 to 2023, maximizing the countercyclical effect of economic policy.” The execution of these investments, however, is taking a long time to arrive, although the Executive assures that «throughout the autumn we will advance with the procedures for the approval of the first disbursement of the Recovery Plan, Following the established calendar ». Some of the reforms linked to this plan have already taken their first steps.
By 2022 the Government expects to accelerate this rate of investment. And it will do so, fundamentally, through three ministries: Transport, Ecological Transition and Industry. The first two already had a vast endowment last year that this year will increase to 5,875 million in the case of Transpotes (17.9% more). Ecological Transition, on the other hand, will reduce its budget to 4,378 million, which represents 35.7%.
A large part of those millions will go to Industry, the great beneficiary in this new distribution of the European funds. The Executive shoots up its endowment by 185%, up to 4,876 million. Only Transport will have a larger endowment.
The increase is mainly caused by the development of the ‘Industrial Policy Spain 2030’ program. The Executive contemplates 3,184 million for, among other projects, iboost the competitiveness and sustainability of the industry and the “transformation of strategic sectors that are key to Spain’s industrial transition”.
In addition, the Executive will allocate 2,140 million of EU funds to the development of SMEs. «Specific reforms will be put in place aimed at establishing a more favorable regulatory framework, which promotes a more competitive and resilient business fabric and favors the business climate and the emergence and success of new entrepreneurial initiatives, eliminating the obstacles that hinder the growth of companies. SMEs ”, reads the Budget project. In addition, there will be investments in this area to favor, above all, entrepreneurship, digitization and internationalization.
In residential matters, home renovation will continue to play a leading role in 2022, with investments of 2,839 million euros. Thereto another 500 million will be added that aim to increase the supply of affordable rental housing. The use of electric vehicles will also be encouraged
For the rest of the infrastructures, there will be investments in the road network, long-distance railways and ports, and connections with France and Portugal will be improved to modernize certain means of transport. In these actions the Government will invest 1,635 million from Europe in 2022.
The Executive also intends to promote the use of hydrogen and therefore contemplates investments worth 555 million euros in renewable hydrogen, “promoting the achievement of the authorization of at least 500 MW of electrolysis, the development of SMEs to strengthen the chain of Spanish value of hydrogen, technological advance and the development of prototypes ”.