Wednesday, February 21

Spain will receive an extra 2,586 million from the EU to reduce energy dependence on Russia

An extra 2,586 million to reduce energy dependence on Russia and improve energy security through green investments. They are the ones that Spain will receive through the new community instrument, RePowerEU, endowed with 20,000 million euros, as agreed on Tuesday by the EU Finance Ministers (Ecofin) meeting in Luxembourg.

Now that the Council of the EU has set its position on the proposal, the next step is dialogues with the European Parliament –trilopgos– to agree on the final version of the text.

“Spain will receive 2,586 million euros of these funds, being the third country that receives the most, after Italy and Poland, two of the countries most affected by the crisis [2.760 millones cada uno]”, Economy sources explain: “It is great news to have reached a consensus. With this proposal, Europe will be able to give an additional boost to its disengagement from Russia and improve its energy security.”

How has the distribution of the 20,000 million been agreed? “It is based on criteria other than those of the Next Generation EU package”, say Economy sources, “≤combining cohesion indicators, such as per capita income, with other indicators that reflect the asymmetric impact of the Ukraine crisis, such as be inflation, and Russia’s fossil fuel disconnect needs for dependency.”

“The agreement reached shows that at European level there is a consensus that Spain can contribute to accelerating the energy transition and strengthening Europe’s energy security”, concludes Economy.

The RePowerEU strategy plans to allocate these 20,000 million euros in direct aid to the adoption of energy reforms. Some 20,000 million that are added to the 200,000 million in loans available to the countries within the pandemic recovery fund (between 84,000 million and 86,000 million in credits in the case of Spain, the sources explain, which would be what would correspond to the 6.8% of gross national income in 2019).

In the end, the 27 have decided this Tuesday to nurture these 20,000 million through the Innovation Fund (75% of the money) and advance sales of CO2 emission rights (the remaining 25%), explains Efe.

Thus, Spain has some 95,000 million euros to finance the updating of the national recovery plan in the face of the energy crisis and the war in Ukraine. The update is to be sent to Brussels in the autumn.

The vast majority of those 95,000 million will come in the form of credits – between 84,000 and 86,000 million in loans from the European pandemic funds – and the rest, in direct non-refundable grants: the 2,586 million agreed this Tuesday and the 7,706 million new assigned to Spain after the final calculation of the recovery fund, which leaves the total non-reimbursable funds of the pandemic at 77,234,071 euros