The Spanish Prime Minister, Pedro Sanchez, has announced an ambitious modernisation plan to go in tandem with the European Union´s stimulus package for the Spanish economy.
Under the 750 billion Euro plan, Spain is set to be the largest recepient of the 27-nation block – receiving 140 billion Euros over the next three years, split between direct grants and soft loans in order to aid the country´s recovery from the economic fallout from the coronavirus pandemic.
Spain was the hardest hit of the world´s leading economies with a contraction of 11% in GDP in 2020.
With the EU Recovery Package, Spain is set to have the strongest recovery of all European economies with the latest International Monetary Fund ( IMF) forecasting 6.4% growth in 2021.
Speaking during the debate to approve the plan in the Spanish lower house, the Congress of Deputies, Sanchez, said the government would focus on creating a greener economy, digitalizing business and public administrations as well as boosting productivity, fighting gender inequality and reversing Spain’s rural depopulation.
Spain, along with all other of the EU’s 27 nations have until the end of April to send their stimulus plans to Brussels.
The government’s plan, includes 212 measures involving 110 investment spending plans and 102 policy reforms.
The key spending areas are:
- Sustainable, Safe and Connected Mobility Strategy: 13.2 billion euros
- Programme for Refurbishment of Housing and Urban Regeneration: 6.82 billion euros
- Modernisation of Public Authorities: 4.32 billion euros
- Digitalisation Plan for small businesses: 4.06 billion euros
- 5G Roadmap: 4 billion euros
- New Spain 2030 Industrial Policy and Circular Economy Strategy: 3.78 billion euros
- National Digital Skills Plan: 3.59 billion euros
- Modernisation and Competitiveness of Tourism Sector: 3.4 billion euros
- Development of National Science and Innovation System: 3.38 billion euros
- The rollout and integration of renewable energies: 3.17 billion euros.
The key policy reform areas are based on the United Nations 2030 Agenda and cover key aspects of the economy, including the energy system, teaching, business demography and the job market.
The key policy areas earmarked for reforms are:
- The modernisation and strengthening of the National Health System
- A new energy system and the rollout of renewable energies, with a roadmap for green hydrogen
- The modernisation of the justice system
- The new care economy
- The Water Act and purification, sanitation, efficiency, savings and reuse plan
- The modernisation and digitalisation of the public authorities
- The waste policy and bolstering the circular economy
- The sustainable and connected mobility strategy
- The reform of the national science system and support for innovation
- A new housing policy.