The Government has only effectively executed 6,900 million of the Nex Generation EU Funds in 14 months. It is an obviously meager figure considering the expectations that the Executive had raised through its own Budgets, in which 26,000 million were provisioned in 2021 alone.
The data also reflects that most of this European aid launched with the aim of boosting the post-Covid recovery has not reached the real economy. Throughout the days dedicated to the analysis of the management of the funds carried out by elEconomista, the Autonomous Communities have already warned of delays, of no equity in the distribution and of the lack of a defined plan. The regional executives also complained of excessive rigidity, since the Government determines in advance the destination of the aid.
This reduces its effectiveness by not adapting to the problems of companies in each CCAA. It is clear that, far from being resolved, bureaucracy and lack of transparency continue to be the main problems that prevent companies from accessing funds. It is therefore necessary that the Executivespeed up the distribution of European funds and be transparent in the distribution. It is also key that the Government and the Autonomous Communities (50% of the aid is already in their hands) eliminate the administrative obstacles that delay the approval of, for example, the Pertes.
Bureaucracy and politicization mean that the real execution of European aid is still less than 7,000 million
In short, it is essential to speed up management so that companies can justify before the end of 2026, which is the limit set by Brussels, how they have used the aid. Without these improvements in management, there is a serious risk of repeating the failure of the Government aid for SMEs and the self-employed in March 2021 and the money will have to be returned to Europe.
Mark Phil is a former market analyst and consultant. Mark in his 9-year career as an analyst, worked with top market players like Prodge LLS, Westat Inc. and Precision Opinion Inc. He moved towards writing in the year 2013. In the past, he undertook several freelance projects to begin his writing profession. Mark completed his economics degree from Columbia University. Along with performing sub-editorial duties, he is also writing a book on Market analysis.
