The Next Generation EU fund is a European Recovery Fund that represents an injection for Spain of 140,000 million euros between transfers and loans. This economic endowment, equivalent to 11% of GDP, will be used to finance, as of 2021, projects in line with digital transformation, reindustrialization and the green pact in favour of clean energies.
To help repair the economic and social damage caused by the coronavirus pandemic, the European Commission, the European Parliament and EU leaders have agreed on a recovery plan that will lead the way out of the crisis and lay the foundations for a modern and more sustainable Europe.
Spain has the opportunity to accelerate its development and support new innovation and entrepreneurship ecosystems. The fund represents a real injection of money to support companies. But what is particularly relevant is that it will do so through projects of strategic value and, therefore, favoring the transformation of the economy.
Types of Next Generation EU Fund grants
1. Grants to promote the Green Pact
The main objective of this type of support will focus on achieving climate neutrality. What type of projects can fit into this category? Proposals related to renewable energies, the reduction of pollution of air, water, soil or consumer products. Or even measures aimed at achieving a healthier and more sustainable production chain.
On the other hand, waste management and the circular economy also form part of this type of aid. As well as the promotion of sustainable mobility.
2. Aid to boost industrial competitiveness
The European Union outlines six lines of action to support industrialization. These lines of action concern, above all, the automotive, energy, health and technology sectors. These strategic axes on which to focus investment projects should focus on cybersecurity, the Internet of Things, the creation of a European health data space, hydrogen technology, low-CO2 industry and connected and autonomous vehicles.
3. Grants to promote digital transformation
In relation to this type of aid, the European Commission defines its digitalization plans based on the following actions: improving connectivity, boosting e-commerce especially in SMEs, promoting efficient and responsible use of data as a driver of innovation, digitalization for the environment and transport, digitalization in the agri-food and health sector, developing an action plan focused on improving the connectivity of educational centres and a new cybersecurity strategy to boost cooperation, knowledge and capacity at the EU level to maintain the security of our digital infrastructure.