Spain | The macroeconomic effects of NGEU

Summary

NGEU is a unique opportunity to support the recovery in Spain and to correct some of the country's structural problems, but it also poses a challenge.

Key points

• Key points:
• Designing and presenting good projects with the largest multiplier effect in terms of job creation, private investment and productivity improvement.
• Public-private collaboration, concurrence between projects, projects with an integral vision, and selection based on technical and economic criteria, perfectly aligned with the objectives of NGEU (digitalization and sustainability), are crucial.
• Implementation must be rapid and efficient with no bottlenecks, using programs and mechanisms already in place and operational, without leaving subsidies unspent and while optimizing the bidding and contracting process for projects.
• Structural reforms in line with the Country Specific Recommendations for Spain would increase the long-term effects of NGEU as they would facilitate digitalization and the transition to an emissions-neutral economy, increase potential growth and productivity, and reduce structural unemployment.

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