The expected approval of the Spanish recovery plan is already dated, to access the 140,000 million euros that we have from the European fund. Next Wednesday, the President of the European Commission, Ursula von der Leyen, will visit our country to deliver the evaluation of the Government’s investment and reform proposals to the President, Pedro Sánchez, according to a Commission spokesperson yesterday. And after more than nine months of contacts between Madrid and Brussels, the verdict will be positive.
As reported by elEconomista , Spain will be among the first to receive the EU approval . The Commission spokesperson explained that that same Wednesday, Von der Leyen will also visit Portugal, the first country to send the plan on April 22 and a member state that currently holds the rotating presidency of the EU.
After the Iberian partners inaugurate the approved list, the German will travel to Greece and Denmark on Thursday, and to Luxembourg on Friday.
The Commission will meet exceptionally on Tuesday, one day earlier than usual, to get everything ready to deliver to each government the result of the evaluation.
The following week, a community source explained to elEconomista that the other seven plans that were sent before the reference date of April 30 will be approved, including those for Italy, the great beneficiary of the fund, France and Germany. So far, a total of 23 Member States have submitted their documents, while four remain to do so.
Up to 23 States have submitted their plans and four remain to do so
From the Commission they explain that they are working against the clock and finishing polishing details with the capitals until the last minute. In fact, five countries have asked the Commission to extend beyond the expected two months to evaluate their plans and keep them firmly tied.
After the approval of the Community Executive, the Council (the Member States), will have another month to pronounce, which will probably happen at the meeting of the Finance Ministers (Ecofin) on July 13. Thus, the first disbursements of the recovery plan will arrive in the second half of July.
As part of this first transfer, Spain will receive a 13% pre-financing of the amount that corresponds to us, about 9,000 million euros of non-reimbursable subsidies, since the Government has not yet requested the 70,000 million in loans that correspond to us from the fund.
In fact, only seven Member States have requested the loans so far, for a total of 166,000 million euros. In this way, the firepower of the recovery fund would be reduced from 800,000 million to 478,000 million.
The European Parliament already expressed this Thursday its “concern” about the small number of partners that have requested the credits, since the impact of the European stimulus will diminish.
To finance the fund, the Commission will go to the markets in the coming days. It will issue this year about 80,000 million in bonds, in addition to an additional amount without specifying in letters. After the first payment, Spain aspires to be able to meet a sufficient number of milestones and objectives in its plan to access a second payment by the end of this year.
Turning point for Von der Leyen
After a start to an irregular mandate, especially due to problems with vaccines, Von der Leyen seeks to mark with this tour of the capitals a turning point in his mandate. It will carry the good news of the arrival of the recovery funds, pending the approval of the Council, after a year putting the instrument in motion and preparing the plans. In addition, the first payments in July are expected to coincide with reaching the goal of 70% of the vaccinated European adult population, and thus a progressive return to normality.