Spain presents its recovery plan

On 7 October 2020 the government presented the Recovery, Transformation and Resilience Plan, the roadmap by which Spain proposed to channel the European funds of Next Generation EU. Presented under the slogan “España Puede”, the plan set the green transition, digitalisation and cohesion as priorities. It was the document that laid out, on paper, where the resources would go in the following years. Its specific content would be refined over time, but it already served as a compass for companies and administrations.

The presentation came after the European agreement of July and marked the move from grand declarations to specifics. For companies and wealth managers, the question was no longer only how much money would arrive, but in which areas it would be concentrated and under what conditions. Understanding those priorities made it possible to start preparing the investments and projects that could best fit, without waiting for the calls to be published. It is a way of turning uncertainty into an opportunity for internal order.

What the government presented

The Recovery, Transformation and Resilience Plan names the areas in which the Next Generation EU funds would be concentrated, so anyone who wants to access them will do well to fit their project into one of those lines.

A plan of this kind is a statement of intent that is later turned into programmes, calls and specific rules. Between the two, months usually pass, and along the way the details may be refined or change. Even so, the broad lines show where the money will be directed and which kinds of projects will have the best chances, which is valuable information for anyone planning investments over the medium term. It is therefore useful to read the document, or at least its summaries, and identify which headings come close to each company’s activity.

Where calls would come

For companies, the plan signalled where calls for projects would come. Those working in energy, mobility, efficiency, technology or training can expect more opportunities. But even companies in other sectors may find a fit if their projects improve the sustainability or digitalisation of their activity.

That means looking at one’s own activity with fresh eyes: what part of the business could become more energy-efficient? Which processes could be digitalised? What training does the workforce need to face the changes? Questions like these, which any company should ask itself with or without aid, can also open the door to public funding if they are framed in an orderly and documented way. It is also worth checking whether there are associated tax incentives or financing lines, which are sometimes more accessible than direct grants.

Mature projects

Preparing mature projects in advance, well documented, would be far more effective than reacting to each call. A mature project has clear goals, a realistic budget, a timetable and the ability to justify results. Preparing it early, with the adviser’s support, makes it possible to apply when the deadline opens without having to improvise. A solid project is useful even if it ends up receiving no aid, because it forces orderly thinking.

In practice, it is worth writing a short description of the project, estimating its cost, identifying possible partners, checking what own or bank financing would be needed and making sure the company is up to date with its tax and employment obligations. A well-ordered folder with those elements saves weeks when the time comes to submit an application, and shows a seriousness that evaluators tend to value. It also helps to anticipate reporting requirements, because public money usually demands later reports and controls.

Funds favour those who arrive with their homework done.

This article is general information. It is not legal, tax or investment advice, and it does not take anyone’s particular circumstances into account.