Spain has once again plunged the coronavirus into discipline. The epidemic situation in the capital, Madrid, is so bad that a partial curfew has been imposed there. Residents of several southern districts are only allowed to visit their workplaces and mandatory shopping.
At the same time, the country’s government is facing a special problem. The EU Corona Crisis Fund is granulating grants to member countries in proportion to the number of infections. In other words, Spain, which has confirmed more than 640,000 positive COVID-19 tests, will receive a total of around EUR 140 billion in support from Brussels.
But to that end, the government should come up with viable targets for aid.
– Now it is not a question of lack of money but that we have no ideas, one source told Reuters.
The Spanish economy collapsed as much as 18.5 percent in the second quarter, so help comes in handy. According to EU articles, it must be invested in environmentally friendly energy or transport and digital change.
Prime minister Pedro Sanchez will now have to conjure up suitable investment targets for the 43 billion support package for next year alone.
And the same for 2022.
The same is happening in a country where a political beak has blocked the adoption of the state budget since 2016.
Sánchez reportedly summed up his comrades-in-arms quite spectacularly Sanna Marinin at the EU summit where the aid package was decided. Finland, together with other countries that supported strict economic discipline, would have liked to emphasize the share of loans, while the leaders of Southern Europe were keen on direct support.
Now it will be – as long as EU conditions are met.
“Spending money is not easy, another government source confirmed.
The 43 billion represents about eight percent of the state’s annual spending. It is Sánchez’s responsibility to present a credible plan for the EU on 15 October.
In addition to direct aid, a loan of EUR 21 billion has been pledged from Brussels to help Spain get back on its feet. The central bank therefore believes that next year we will already be embarking on a solid growth path. EU support should accelerate it by as much as two percentage points – as long as the funding targets are chosen correctly.