A year on, the war in Ukraine continues to shape the context in which we live, as the pandemic did over the past three years. Rising inflation is another factor that creates uncertainty when trying to anticipate the future. In the face of so much uncertainty, it is important to seek certainty. And one of those certainties is that the future we want must be digital and sustainable.
The Next Generation EU (NGEU) plan represents a clear opportunity to drive economic growth and facilitate modernisation, both because of its scale and its structural approach. Through its two channels—capital injection and financing—the plan is an opportunity to achieve solid, sustainable growth over time that accelerates economic convergence within a euro area weakened both by the health crisis and by structural factors. The funds are conditional on specific investment proposals and reforms over the 2021–2026 period.
NGEU is estimated to increase GDP by more than 1.15 percentage points per year over a five-year horizon. And the reality could exceed these estimates if we consider the positive effect of the reforms and succeed in encouraging the confidence of economic agents. At this point, public-private collaboration is essential to achieve greater efficiency and effectiveness in the use of the funds, and banks are undoubtedly a key component in Spain.
Digital transformation and the green transition are the two pillars on which European funds rest. Specifically, 20% of European funds must be allocated to digitalisation, with several areas of focus: public administrations, businesses, society’s digital skills and improved connectivity. This reflects the importance of the digital transformation we are experiencing and the extent to which it will shape our future.
According to the IMF, digitalisation is key to the process of social and economic inclusion. All the economic and social changes we are observing have digitalisation at their core. It is a structural change that benefits us all.
From the outset, banks have shown their willingness to cooperate with the authorities to achieve an efficient distribution of European funds to boost the economy and the reforms that will enable the country’s modernisation, leveraging their experience in risk management and their extensive reach among SMEs.
In view of the above, the sector will carefully review the proposals drawn up by the government and submitted to it for the channelling of loans—specifically, the green ICO line and the strengthening of the SME line.
The efficient use of NGEU funds is key to regaining some certainty about the future in a context as complex as the current one. We all must collaborate to make it possible, with public-private cooperation as the axis of action, essential to avoid wasting indispensable resources for Spain that also require good management and sound investment in initiatives that promote the necessary social, energy, and technological transformation.
Banks will be involved beyond the European financing line, offering their financial products and their capacity to complement the rest of the aid in the form of advances, factoring, loans, or, in some cases, by helping to facilitate technical support, among other measures.
José Luis Martínez Campuzano, Spokesperson for the Spanish Banking Association
