Spain’s drive to dish out $84 billion of EU money By Reuters

By Belén Carreño and Charlie Devereux

MADRID (Reuters) – A request for seaplanes wanted to combat forest fires is red-flagged as a result of it might hurt the setting. Firms looking for assist after being hammered by COVID are requested to point out proof of a wholesome steadiness sheet in recent times.

They’re among the many discordant calls made by Spanish and EU bureaucrats as Spain’s drive at hand out 77 billion euros ($84 billion) in grants from EU pandemic restoration funds turns into mired in complexity, in keeping with interviews with enterprise associations, authorities officers, firms and consultants.

Spain is the EU pilot mission for disbursing grants from the most important stimulus bundle within the bloc’s historical past, an general pot of 724 billion euros, together with loans. The nation was quickest out of the blocks in assembly Brussels’ coverage necessities and in receiving its funds, making it a test-case for what Europe can obtain.

“We’re the guinea pigs. Every little thing that’s examined in Spain will then be utilized to the opposite nations,” Economic system Minister Nadia Calviño stated in February. “However it’s in our curiosity that these funds are used to the utmost.”

A 12 months into the disbursement course of, about 23.5 billion euros had been awarded as of December final 12 months, in keeping with the most recent figures revealed by the federal government final month. That is a sluggish tempo, given the EU and Spain have set a deadline of the tip of this 12 months to award all 77 billion euros.

Solely 16.5% of firms have utilized for grants and seven% have been accepted, a Financial institution of Spain survey of 6,000 companies in February discovered. In the meantime, solely about 9 billion euros have really reached the companies awarded funds, in keeping with calculations by the Esade Centre for Financial Coverage, a Madrid-based think-tank that tracks the pandemic restoration money.

In the meantime Italy – which has been allotted roughly 69 billion euros in grants – has deeper issues, with the EU freezing a tranche of the money and requesting clarification over Rome’s efforts to fulfill the “targets and milestones” wanted to unlock the cash.

The travails of the southern European nations, one in unlocking funds and the opposite in injecting money into the true financial system, might check the resilience of the EU’s stimulus plan, geared toward constructing a post-pandemic Europe that is greener, digital and extra self-sufficient.

In response to queries for this text, Spain’s authorities stated it was making use of EU guidelines that attempted to “mix agile administration of the funds along with ensures of management”, including that just about 300,000 Spanish tasks had been financed.

New Italian Prime Minister Giorgia Meloni has blamed her predecessors Mario Draghi and Giuseppe Conte for the delays.  

The European Fee stated member states tailor-made their very own schemes to manage funds, and that each the EU and Madrid had deemed Spain’s methods satisfactory. The implementation of the countey’s plan is presently in step with the agreed timetable, it added.

In Spain, on prime of the human bureaucrats, there’s now additionally Minerva, a tech system that Madrid was required to construct by Brussels to vet grant purposes and was rolled out in February after about two years of growth.

The algorithm, named after the Roman goddess of knowledge and justice, can scrape tens of millions of information factors to verify that firms making use of for funds haven’t any conflicts of curiosity.

Then there’s one other system known as Espresso to audit purposes and preserve observe of the place the cash is, typically requiring vital quantities of paperwork from firms.

“There are bottlenecks in any respect ranges,” stated Manuel Hidalgo, a senior fellow on the Esade Centre, including that the fashionable problem of disbursing billions into an financial system had collided with a public administration caught “within the nineteenth century”.

“The financial penalties of this could possibly be that firms develop into disaffected with these types of assist.”


There have been successes. For example, a 3-billion-euro scheme to assist small firms take their companies on-line has handed out grants to greater than 180,000 to construct web sites or fee platforms, in keeping with the Economic system Ministry.

The speedy rollout of the grants in simply 5 or 6 months was made attainable by the automation of some processes, bolstering the credentials of the brand new applied sciences deployed.

Nonetheless, this system has solely disbursed a couple of third of budgeted funds for the digital mission, in keeping with knowledge compiled by CEOE, Spain’s important employers affiliation.

Many different firms have deserted plans to use for grants, notably smaller corporations with out the sources to cope with the massive quantities of paperwork, in keeping with the Cepyme and ATA associations representing small companies.

Julian Fernandez, CEO of Fossa Methods, a Madrid-based firm that builds light-weight nanosatellites, stated he needed to dedicate one in every of his 24 staff solely to coping with the paperwork to acquire a 300,000-euro grant. He additionally employed a advisor to liaise with the federal government.

“If I needed to begin an organization once more I do not know if I might do it in Spain,” stated Fernandez, who’s ready for the ultimate authorities inexperienced gentle for the total grant to assist pay the prices of his firm’s newly constructed satellite tv for pc. “For much less effort and fewer forms you will get tens of millions for tech within the US.”


The applying for seaplanes to fight forest fires was initially rejected by EU bureaucrats as a result of the plane use polluting fossil fuels, although the usage of sustainable fuels is not but widespread in aviation, a Spanish authorities official informed Reuters.

The difficulty was finally resolved after discussions between the Madrid authorities and Brussels, with Spain efficiently persuading the Fee that the advantage of placing out fires outweighed their CO2 emissions, in keeping with the official who declined to be named because the conversations have been confidential.

Tractors for sustainable agriculture didn’t have the identical luck, and their financing was blocked by Brussels, in keeping with the official.

Celia Ferrero, secretary basic of the ATA, stated many had dropped out of making use of for funds after being requested to point out proof of a wholesome steadiness sheet for as much as the previous 5 years, when many suffered losses throughout lockdowns.

The quantity of labor has risen fivefold and has taken its toll on public officers, in keeping with two senior Spanish civil servants. Some high-ranking officers have give up to affix the personal sector, complaining of burnout, they stated.

In February, the federal government paid 70 million euros to rent Tragsatec, a state-owned consultancy agency, as a reinforcement for regional governments.

($1 = 0.9147 euros)

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