A Juncker’s Plan for Spain

A Juncker's Plan for Spain

The European Union is preparing an investment plan for Spain that will see an extra 31,000 million euros pumped into the country.

Europe is as happy as it has been for a long time with the development Spain has enjoyed in recent times and is now set to become more proactive in ensuring its continuation.

The European Parliament will extend the European Fund for Strategic Investments (EFSI),until 2020. This has become more popularly known as the Juncker Plan and it could reach investments of 500,000 million euros across the continent.

In the top five

This strategic investment project is expected to see 30,812 million euros invested in Spain in the form of more than 50 operations approved by the European Investment Bank.

In relation to the Gross Domestic Product, Spain is to be the fifth largest beneficiary of the so called Juncker plan investments. This is behind Estonia, Bulgaria, Greece and Portugal, according to data published recently by the European Commission. It is all intended to continue to promote economic recovery across Europe.

As a whole, it is expected that the plan will mobilize 251,600 million euros in the group of member states, thanks to the operations approved to date worth 49,600 million. The community executive expects that in total, 528,000 small and medium enterprises will benefit from better access to financing for their projects.

Making it happen

The Vice President of the European Commission responsible for Growth and Employment, Jyrki Katainen, spoke of the ‘tangible benefits’ of the Juncker plan, saying it has mobilized about 80 per cent of the original goal of 315,000 million euros in investments. This has also seen the launch of the first innovative solar energy project at the climate conference in Bonn.

The plan ‘to solve market failures’ was approved by Europe with 502 votes in favour, 125 against and 19 abstentions. Its aims are to finance innovative projects ‘with a high risk profile,’ and to promote the creation of employment among young people.

The EFSI is focused mainly on sectors such as energy, the environment, health, research, sustainable transport and the creative industries.

The legislative text approved by the European Parliament also modifies the role of the European Investment Bank (EIB), which delegates the selection and supervision of projects in national entities such as the Official Credit Institute of Spain.

For more information, please contact corporate law firm Argali Abogados

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