The post-Covid Europe will have a greener, more digitized and resilient production model
The European Union has made a special effort to convey to both citizens and companies that its long-term budget, along with Next Generation EU (European funds for recovery), will be “the largest stimulus package ever funded through the EU budget“. It is a total amount of €1,8 trillion which, according to the political-economic organization, will help restore a post-COVID-19 Europe “which will be greener, more digitized and resilient“.
The economic sphere is experiencing a historic moment since institutions and the civil society in general are laying down the foundations for a mid to long term process of change.
Next Generation EU is an eventual, limited time emergency tool used exclusively for response and recovery measures, which will advance €750,000.00 million, of which over €140.000 will be allocated to Spain: €72,700.00 million as subsidies and 67,300.00 million as loans. An economic injection representing more than 11% of our country’s GDP.
These funds will be mainly poured over two large transformation vectors: green transition, with 37% of the aid, and digital transformation, with 33% of all the resources. Gender equality and social and territorial cohesion are included as transversal axis.
Next Generation EU funds will be materialized through the general government budgets following the approval of a Recovery, Transformation and Resilience Plan (PRTR, acronym in Spanish). The Government’s General Administration will transfer the funds to the autonomous regions and local entities by means of agreements and subsidies which will be linked to public sector policies from one of the priority axes.
Experts say that missions to transform the economy should be implemented. Some examples include generating new industries out of research centers like the design of the European chip, transforming tourism to make it more productive, a more cost-effective health-care system, transforming the automobile industry to produce electric and autonomous vehicles or strengthening the environment for startups in the digital and biotechnology industry.
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