As the time for Spain to receive the first funds from the Next Generation programme draws nearer, it seems more urgent than ever to launch a debate—open to all sectors of society—on how to make the best use of those funds. For this reason, I must congratulate the newspaper Cinco Días on the timeliness of this initiative, to which I hope to contribute the perspective of Spanish banks, which are deeply interested in this project.
Even at the risk of sounding dramatic, I have no choice but to stress the vital importance that this European Union programme has for our country’s future. It is not only about its quantitative dimension, although that is far from negligible: €140 billion, equivalent to 11% of Spain’s GDP. Even more important is that these funds will be used to finance projects aimed at digital transformation and the Green Deal in support of clean energy. These are the two pillars chosen by the European Commission, which thus proposes moving towards a green, digital, social and more resilient Europe—an approach that seems reasonable given that, if we are to rebuild our economies, we must do so on forward-looking foundations.
Fortunately, Spanish banks are perfectly aligned with the European Commission’s objectives. Digitalisation and sustainability have been an essential part of their strategy in recent years and continue to be so. Our institutions are leaders in technological transformation, thanks to the commitment they made some time ago to digitise their activity, which has entailed years of preparation, learning and substantial investment. This preparation made it possible, during the lockdown, to offer customers remote services swiftly and without incidents.
As for the commitment to sustainability, and as became clear at COP25, we have stepped up our efforts and, in just over a year, the Spanish banking sector is already regarded as a leading sector on a par with other pioneering financial systems. We also believe that the sector is called upon to play a leading role as the main financier of the green revolution. The European Commission estimates that Europe needs around €260 billion in additional investment per year over the next decade to address this process, and it is clear that public investment will not be sufficient and private investors will have to step in to finance climate-friendly projects. Until now, these figures were no more than estimates, but the Next Generation Plan has unexpectedly put substantial funds on the table to be invested, which could provide a decisive boost in the transition towards a sustainable model.
Overall, we are convinced that the banking sector can be extremely useful in distributing European aid, as it has the experience and the resources to make the processes for channelling these funds highly effective. Banks bring objectivity and well-defined criteria to any process, as has been seen in the ICO programme, financing those who need it and are in a position to contribute more in the future. In addition, they can act as a bridge between these European funds—which may take time to arrive—and the launch of projects.
Specifically, the ICO programme (€120 billion distributed across more than one million transactions, reaching more than 600,000 companies, 98% of them SMEs) demonstrated how useful and effective public-private collaboration can be—a model that should be applied as widely as possible in channelling European funds. It also showed that SMEs should be given special attention in the distribution of this aid, not only because of the multiplier effect these investments can have on employment, but because they require greater support in digitalisation and sustainable transformation processes, and because we cannot leave behind, in either challenge, those who represent 99% of our productive fabric. In addition, it is necessary for the initiative for a significant share of the projects eligible for these funds to flow from the bottom up, as a way of embedding general plans in the real needs of our companies.
In short, we have before us a unique opportunity to modernise Spain’s productive model and undertake the reforms postponed for so many years—an opportunity we cannot waste if we want to emerge from this crisis with a stronger, more competitive and more inclusive economy. The responsibility to use these funds wisely rests with all of us. We can and we know how to do it. Let’s do it.
José María Roldán, Chairman of the Spanish Banking Association
