SPAIN’S RECOVERY AND RESILIENCE PLAN

The European Commission has given a positive assessment to Spain’s recovery and resilience plan, which will be financed by €69.5 billion in grants.

40% of the plan’s total allocation for reforms and investments supports climate objectives

• Law on climate change and energy transition: establishing into law the renewable targets for 2030 and the objective of climate neutrality by 2050, including a 100% renewable electricity system.
• Innovative renewable energy sources: developing innovative renewable energy sources, integrated into buildings and production processes, including the implementation of the renewable hydrogen roadmap. €3.9 billion
• Energy efficiency residential renovations: supporting more than half a million energy efficiency renovations in residential buildings to achieve, on average a primary energy demand reduction of at least 30%. €3.4 billion

28% of the plan’s total allocation for reforms and investments supports digital objectives

• Digital skills training: improving the level of digital skills of the population, the digital transformation of education, and increasing the number of Information and Communication Technology specialists. €3.6 billion
• Digitalisation of public administration: expanding digital public services for citizens and business, with special focus on the digital transformation of the health, justice, employment, and social services systems. €3.2 billion
• Digitalisation of business: supporting the digital transition of SMEs and the self-employed. €3 billion

Key Measures to Reinforce Spain’s Economic and Social Resilience

• Transformation of the tourism sector: increasing the digitalisation and sustainability of the tourism sector. €3.4 billion
• Law on business creation and growth: improving the business climate to facilitate growth, promoting an early payment culture and effectively removing unnecessary or disproportionate regulatory barriers.
• Tackling labour market segmentation and modernisation of active labour market policies: reducing the use of temporary contracts and improved individual support to jobseekers through digitalising the public employment services, providing training opportunities and better hiring incentives. €2.4 billion
• Action Plan against youth unemployment: introducing three innovative programs targeting young jobseekers, including work-based training in public school workshops, a first professional experience in public administrations and professional opportunities for young researchers. €765 million
• Vocational training: reskilling and upskilling the labour force by creating 135,000 new places in vocational education and training. €2 billion
• Effective public policies and a modernised tax system: strengthening the public procurement framework, reinforcing the evaluation of public policies and spending reviews. Making the taxation system greener and more equitable.
• Pension reform to adapt to longer working lives and to support the adequacy of retirement income: the pension system will be reformed following a process of social dialogue, with the added objective of supporting sustainable public finances over the medium and long-term.