COMMISSION STAFF WORKING DOCUMENT Analysis of the recovery and resilience plan of Spain Accompanying the document Proposal for a Council Implementing Decision on the approval of the assessment of the recovery and resilience plan for Spain
Date: 2021-06-16
Institutions: European Commission, Secretariat-General
Subjects: EU aid, EU financial instrument, Spain, coronavirus disease, economic and social cohesion, economic recovery, economic reform, epidemic, investment, structural adjustment

EN 

  EN 

   EUROPEAN COMMISSION  Brussels, 16.6.2021  SWD(2021) 147 final  COMMISSION STAFF WORKING DOCUMENT Analysis of the recovery and resilience plan of Spain Accompanying the document Proposal for a Council Implementing Decision on the approval of the assessment of the recovery and resilience plan for Spain {COM(2021) 322 final}  
 
 
Table of contents 

1.  Executive summary ............................................................................................................ 2 

2.  Recovery and resilience challenges: scene-setter ............................................................... 6 

2.1.  Macroeconomic outlook and developments since the 2020 country report ..................... 6 

2.2.  Challenges  related  to  sustainable  growth,  cohesion,  resilience  and  policies  for  the 
next generation .......................................................................................................................... 10 

2.3.  Challenges related to the green and digital transition .................................................... 14 

3.  Objectives, structure and governance of the plan ............................................................. 24 

3.1.  Overall strategy of the plan ............................................................................................ 24 

3.2. 

Implementation aspects of the plan ................................................................................ 28 

4.  Summary of the assessment of the plan............................................................................ 34 

4.1.  Comprehensive  and  adequately  balanced  response  to  the  economic  and  social 
situation ..................................................................................................................................... 34 

4.2.  Link with country-specific recommendations and the European Semester ................... 42 

4.3.  Growth  potential,  job  creation,  economic,  institutional  and  social  resilience, 
European Pillar of Social Rights, mitigating the impact of the crisis, and social territorial 
cohesion and convergence ......................................................................................................... 62 

4.4.  The principle of ‘do no significant harm’ ...................................................................... 71 

4.5.  Green transition .............................................................................................................. 74 

4.6.  Digital transition ............................................................................................................. 80 

4.7.  Lasting impact of the plan .............................................................................................. 86 

4.8.  Milestones, targets, monitoring and implementation ..................................................... 88 

4.9.  Costing ........................................................................................................................... 89 

4.10.  Controls and audit .......................................................................................................... 93 

4.11.  Coherence ....................................................................................................................... 96 

5.  References ...................................................................................................................... 100 

6.  Annex.............................................................................................................................. 101 

6.1.  Climate tracking and digital tagging table ................................................................... 101 

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1.  EXECUTIVE SUMMARY 

Despite several recent years of steady growth and job creation, a number of challenges 
persist  in  Spain.  Spain  enjoyed  six  years  of  strong  economic  growth  accompanied  by 
dynamic  job  creation  between  2013  and  2019,  but  a  number  of  structural  weaknesses  have 
not been fully overcome. The high unemployment rate, notably for young people, and labour 
market segmentation make it difficult for the new generations to find a job and make a decent 
living, and affect productivity and social cohesion. Economic efficiency, as measured by total 
factor  productivity,  remains  subdued  due  to  low  innovation  in  many  firms  and  regions, 
regulatory fragmentation, labour market segmentation, and skills gaps. Climate change poses 
important  policy  challenges  for  water  and  waste  management,  energy  and  resource 
efficiency, emissions and renewable energy. In this scenario, a still high external and internal 
debt,  both  private  and  public,  remained  a  source  of  vulnerability.  Fiscal  sustainability  is  a 
challenge for the country, even more in light of its worrisome demographic situation. 

In  this  context,  the  COVID-19  pandemic  hit  Spain’s  population  and  economy 
particularly  hard,  taking  a  significant  toll  on  life  and  social  and  business  activity.  In 
doing so, it aggravated existing challenges. The severe outbreak of the COVID-19 pandemic 
in Spain and the containment measures taken in  response to it resulted in an unprecedented 
decline in GDP in 2020 (-10,8%), which will not be recovered until the end of 2022. Despite 
government support shielding the labour market, the self-employed and firms throughout the 
crisis, unemployment  and  corporate 
liquidity  have  become  major  concerns.  The 
unemployment rate increased to 15,5% in 2020 and it is forecast to slightly increase in 2021 
before  falling  in  2022, to  around 14,4%.  Impaired  firm  profitability  could  also  lead  to  the 
materialisation of corporate insolvencies with risks for productive capacity and employment. 
A further package of measures to support SMEs has been adopted in March 2021 to limit this 
risk.  

As a result of the severe contraction in GDP caused by the COVID-19 pandemic and the 
policy  response  required  to  tackle  its  consequences,  the  budgetary  outlook  has 
worsened. The general government deficit widened by more than 8 pps. to 11,0% of GDP in 
2020. This,  together  with  the impact  from  the  SAREB  reclassification [1],  has  increased  the 
general government gross debt-to-GDP ratio by almost 25 pps, from 95,5% of GDP in 2019 
to  120%  in  2020. As  growth  resumes  and  the  deficit  narrows,  the  debt  ratio  is  expected  to 
gradually decrease to around 116,9% of GDP by the end of 2022.  

Spain has requested EUR 69,5 billion of non-repayable support under the Recovery and 
Resilience Facility. Spain’s recovery and resilience plan makes a significant contribution to 
supporting  the  country’s  economic  rebound  and  contribute  to  a  green,  digital  and  inclusive 

[1] https://ec.europa.eu/economy_finance/forecasts/2021/spring/ecfin_forecast_spring_2021_es_en.pdf. 

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future [2].  The  plan  is  structured  around  the  four cross-cutting objectives  of  the  green  and 
digital  transitions,  social  and  territorial  cohesion  and  gender  equality.  It  is  designed  to 
provide a response to Spain’s key structural challenges, in line with the priorities identified in 
the most recent recommendation on the economic policy of the euro area [3] and a significant 
subset of the recent country-specific recommendations addressed to Spain by the Council. [4]  

the  green  and  digital 

The plan pursues the general objective of the Facility to promote the Union’s economic, 
social  and  territorial  cohesion  and  is  balanced  in  its  response  to  the  six  policy  pillars 
referred to in Article 3 of the Regulation [5].The balanced set of reforms and investments 
contained in the 30 components of the plan reflects the overall financial allocation as well as 
the challenges the country faces. The green and digital pillars contributions are significant in 
terms  of  reforms  and  investments  put  forward (pillars  1  and  2). The  plan  includes 
a substantial  allocation for 
transition  (respectively, EUR 27,6 
billion and EUR 19,6  billion).  Most  components in  the  plan are  expected  to  contribute  to 
smart,  inclusive  and  sustainable  growth,  notably  through  support  to  enable  a  swift  twin 
transition (pillar 3). A significant number of components contribute significantly to social and 
territorial  cohesion,  mostly  through  measures  to  address  challenges  in  the  labour  market 
and enhance employability, investments on social inclusion and through improvements in the 
deployment of public services and infrastructure throughout the territory (pillar 4). Several of 
the components  support  significantly  health,  economic,  social  and  institutional  resilience, 
notably  through  measures  seeking  to  improve  the  functioning  of  the  public  administration, 
the  national  health  system  and  to  preserve  and  enhance  the  natural  capital  of  the  country. 
Measures that seek to enhance the effectiveness of and fairness of tax revenue collection and 
spending are expected to contribute to economic and social resilience (pillar 5). In addition, a 
number of components  are designed to  support the policies for the next  generation through 
investments in education, skills, the labour market, social inclusion and social housing (pillar 
6).  

The plan is expected to contribute to address a significant subset of the recent country-
specific  recommendations  addressed  to  Spain  by  the  Council. [6]  The  plan  of  Spain  is 

[2]  The  recovery  and  resilience  plan  of  Spain  has  been  published  by  the  Spanish  authorities  at: 
https://www.lamoncloa.gob.es/presidente/actividades/Paginas/2020/espana-puede.aspx. 
[3] Pending final adoption by the Council, after endorsement by the European Council. The text agreed by the 
Eurogroup  on  16  December  2020  is  available  at:  https://data.consilium.europa.eu/doc/document/ST-14356-
2020-INIT/en/pdf. 
[4]  Spain  submitted  its  National  Reform  Programme  on  30  April.  The  information  provided  in  the  National 
Reform Programme is being considered and jointly assessed in this Staff Working Document with the Recovery 
and Resilience Plan. 
[5] Regulation (EU) 2021/241 of the European Parliament and of the Council of 12 February 2021 establishing 
the Recovery and Resilience Facility (hereafter ‘the Recovery and Resilience Facility Regulation’). 
[6] Council Recommendation of 20 July 2020 on the 2020 National Reform Programme of Spain and delivering 
a  Council  opinion  on  the  2020  Stability  Programme  of  Spain,  OJ  C  282/54,  26  August  2020,  and  Council 
Recommendation on the 2019 National Reform Programme of Spain and delivering a Council opinion on the 
2019 Stability Programme of Spain, OJ C 301, 5 July 2019. 

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expected  to  contribute  substantially  to  address  the  country-specific  recommendations  on 
fostering  public  and  private  investment  to  help  the  recovery.  In  doing  so,  it  is  expected 
address  the  country-specific  recommendations  on  investment  in  innovation  and  the  digital 
and green transition of the country. The plan also includes measures to reduce the high share 
of  temporary  contracts  and  to  reinforce  active  labour  market  policies  that  are  expected  to 
improve  the  functioning  of  the  labour  market.  The  plan  is  expected  to  help  address  the 
existing  fragmentation  of  unemployment  protection,  which  resulted  in  gaps.  It  is  also 
expected to contribute to the provision of labour market relevant skills and qualifications that 
should accompany the green and digital transition of the country.  Access to digital learning 
can be significantly boosted by the plan through investments  in  devices and skills,  but  also 
through  the  development  of  online  courses.  Educational  outcomes  may  also  improve  as  a 
result of investments at various stages of the education cycle. Measures in the plan also have 
the  potential  to  contribute  to  address  country-specific  recommendations  asking  Spain  to 
improve coverage and adequacy of minimum income schemes and family support. The plan 
is  also  expected  to  strengthen  public  procurement  frameworks,  and  contribute  to  a  better 
business environment. Finally, measures in the plan seeking a more effective public spending 
and tax system may contribute to fiscal sustainability.  

The  plan  also  includes  labour  market  and  pension  system  reforms  whose  final  design 
has been left open, as it is subject to the outcome of the process of social dialogue. With 
the  aim  of  preserving  employment,  the  plan  includes  the  set-up  of  a  flexibility  and  job 
stability  mechanism  that  builds  on  the  use  made  of  short-time  work  schemes.  The  new 
mechanism is expected to promote access to training and voluntary mobility for workers in 
case  of  downturns.  The  plan  also  includes  a  modernisation  of  the  collective  bargaining 
system, which is to be carried on the basis of an evaluation identifying existing shortcomings 
in  the system.  In order to contribute to  addressing country-specific recommendations in  the 
labour market domain, the overall reform package of labour market reforms should strike the 
right balance between flexibility and security. The plan also includes a reform of the pension 
system with the aim of preserving its adequacy and long-term sustainability. For these labour 
market and pension system reforms, the final design of the measures is expected to reflect the 
outcome of the ongoing social dialogue process. These reforms are to be accompanied by an 
analysis of different options to ensure their medium to long term fiscal sustainability.  

The  plan  is  expected  to  contribute  to  the  green  transition,  the  protection  of  the 
environment,  including  through  a  better  management  of  water  and  waste,  and  to  the 
enhancement of biodiversity. Measures in the plan support the decarbonisation of Spain and 
its  energy  objectives,  as  set  out  in  its  National  Energy  and  Climate  Plan  (hereafter 
‘NECP’) [7],  and  are  an  important  step  towards  achieving  climate  neutrality  in  2050.  The 
green  transition  is  supported  by  measures  to  promote  urban  and  long-distance  sustainable 
mobility and to increase the energy efficiency of buildings, decarbonise industry and reduce 

[7]  https://ec.europa.eu/energy/sites/ener/files/documents/es_final_necp_main_en.pdf. 

4 

 
 
                                                 
energy  dependency,  as  well  as  to  deploy  new  technologies  for  renewable  hydrogen  and 
renewables. Measures are also expected to help mitigate the adverse effects of climate change 
by preserving coastal spaces, ecosystems and biodiversity, and promote the circular economy 
by  improving  the  management  of  water  and  waste  in  the  country.  Together,  the  measures 
supporting  climate  change  objectives  in  Spain’s  plan  account  for  39,7%  of  the  plan’s  total 
allocation.  All  measures  in  the  Spanish  plan  comply  with  the  ‘do  no  significant  harm’ 
principle, in line with the Technical Guidance published by the Commission. [8] 

The  digital  transition  is  supported  by  investments  on  digital  skills  and  in  the 
digitalisation  of  the  public  administration,  industry  and  business,  as  well  as  on  the 
purchase  of  digital  equipment  for  education.  Substantial  investments  are  designed  to 
promote  the  digitalisation  of  the  public  administration  and  of  the  National  Health  Service, 
and  simplify  public  interactions  with  businesses  and  citizens.  The  plan  invests  in  the 
provision of basic digital skills to the general population, the unemployed and the employed 
with lower skills. The provision of advanced digital skills could have a significant impact on 
the employability of people further to the green and digital transition. Investments in digital 
connectivity  (including  5G)  and  in  the  digitisation  of  the  industry  and  small  and  medium-
sized enterprises, including through the use of artificial intelligence, will allow Spanish firms 
to 
increasingly  digital 
economy. Investments  are  also  made  in  the  digitalisation  of  education,  notably  through  the 
purchase  of  digital  equipment and  training  for  its  use.  The  measures  with  a  digital  impact 
account for 28,2% of the plan’s total allocation.  

the  opportunities  offered  by  an 

take  better  advantage  of 

Once  fully  implemented,  Spain’s  plan  has  the  potential  to  make  a  lasting  impact  by 
prompting  structural  changes  in  the  public  administration,  institutions  and  policies. 
Relevant  measures  in  this respect  include changes that seek to  enhance the effectiveness  of 
the  public  administration,  amongst  others  through  its  digitisation  and  through  the 
strengthening of the public procurement framework, the efficiency of the justice system and 
the  evaluation  of  public  policies  and  spending.  Further  structural,  lasting  change  may  stem 
from  other  measures  seeking  to  improve  the  business  environment,  notably  through  the 
reduction of market  fragmentation and through better regulation. Measures in  the plan may 
also  lastingly  enhance  the  productivity  and  competitiveness  of  Spain  through  a  swifter 
adaptation of its industry, energy and transport system to the green and digital transition. This 
impact may be reinforced by measures adopted to enhance skills at various levels, to reduce 
segmentation in the labour market, modernise social protection and to address the gender gap, 
which  in  turn  may  help  enhance  social  cohesion.  Regions  are  responsible  for  the 
implementation  of  a  substantial  set  of  measures.  Ensuring  a  broader  ownership  during  the 
implementation of the plan will be important to enhance its effectiveness and lasting impact. 

[8]  Technical  Guidance  on  the  Application  of  ‘do  no  significant  harm’  under  the  Recovery  and  Resilience 
Facility Regulation (hereafter ‘DNSH Technical Guidance’), COM (2021) C58/01. 

5 

 
 
                                                 
Spain has established an adequate structure to implement the plan as well as to monitor 
and  report  on  progress.  The  proposed  milestones  and  targets  are  clear  and  seem  realistic 
and the proposed indicators are relevant, acceptable and robust. The new Secretariat-General 
for  European  Funds  of  the  Ministry  of  Finance  will  act  as  a  coordinator  for  the  plan  and 
contact  point  with  the  European  Commission.  Line  Ministries  will  be  responsible  for  the 
implementation  of  the  investments  and  reforms  within  the  scope  of  their  competence.  The 
implementation  of the  plan will be subject  to  the control  of the Comptroller General  of the 
central government (Intervención General de la Administración del Estado – IGAE). 

The plan’s strategy, which builds on the 2019 Agenda for Change of the Government of 
Spain, is entirely coherent. The four cross-cutting objectives in the plan (digital and green 
transition,  social  cohesion  and  gender  equality)  and the ten  policy  areas that  structure  it  are 
expected to ensure that measures  are coherent across and within  each of the 30 components 
of the plan. Reforms and investments are generally supportive of one another. Coherence is 
also embedded transversally in the plan through a set of reforms improving the functioning of 
the public administration. The effort required to frontload most of the reforms improving the 
business environment in the first years of the plan may contribute to a more effective delivery 
of the investments envisaged by the plan.  

Spain  has  provided  individual  cost  estimates  for  all  investments,  as  well  as  for  those 
reforms  for  which  associated  costs  have  been  specified  in  the  plan.  The  justifications 
provided by Spain on the amount of the estimated total  costs  are in  most  cases reasonable, 
plausible,  in  line  with  the  principle  of  cost  efficiency,  and  commensurate  to  the  expected 
national economic and social impact. Spain has provided sufficient information and evidence 
that  the  amount  of  the  estimated  total  costs  is  not  covered  by  existing  or  planned  Union 
financing. In addition, adequate governance and control systems provide additional assurance 
to avoid double funding from the Facility and other Union programmes. Finally, the amount 
of  estimated  total  costs  of  the  recover  and  resilience  plan  is  commensurate  to  the  expected 
national  economic  and  social  impact.  However,  some  gaps  remain,  in  terms  of  the 
information  and  evidence  provided  on  reasonability  and  plausibility  of  the  estimated  costs 
which preclude the highest rating of this assessment criterion. 

Assessment  and  rating  of  the  recovery  and  resilience  plan  of  Spain  under  the  criteria 
laid  down  in  Article 19(3)  of  the  Recovery  and  Resilience  Facility  Regulation  in 
accordance with its Annex V. 

(1)  
Balanced 
Response 

(2)  
CSRs 

(3)  
Growth, 
jobs… 

(4)  
DNSH 

(5)  
Green 
target 

(6)  
Digital 
target 

(7)  
Lasting 
impact 

(8)  
M & T 

(9)  
Costing 

(10)  
Control 
Systems 

(11)  
Coherence 

A 

A 

A 

A 

A 

A 

A 

A 

B 

A 

A 

2.  RECOVERY AND RESILIENCE CHALLENGES: SCENE-SETTER 

2.1. Macroeconomic outlook and developments since the 2020 country report  

The  severe  outbreak  of  the  COVID-19  pandemic  in  Spain  and  the  strict  lockdown 
measures taken in response to it resulted in an unprecedented decline in GDP in 2020 (-

6 

 
 
 
 10,8%).  The  high  number  of  infections  in  the  first  two  months  of  2021  forced  Spain  to 
tighten restrictions, which led output to drop further in the first quarter of the year (-0,5% of 
GDP, q- o -q). With the lifting of some restrictions in March, and the acceleration in the pace 
of  vaccination,  economic  activity  is  set  to  begin  growing  over  the  second  quarter  and  to 
continue more vigorously in the second half of the year. As was the case with the downturn in 
2020,  the  recovery  is  also  expected  to  remain  uneven  across  sectors.  Manufacturing 
production has started to pick up, while sectors with high social-interaction, such as leisure 
and tourism-related activities, are set to recover at a slower pace.  

According  to  the  Commission  2021  spring  forecast,  real  GDP  is  projected  to  grow  by 
5,9% in 2021 and by 6,8% in 2022. As a result, Spain’s GDP is expected to return to its pre-
pandemic  level  by  the  end  of  2022.  With  the  prospect  of  a  relaxation  of  restrictions  in  the 
second half of 2021, part of the accumulated savings prompted by the pandemic is expected 
to be unwound, spurring private consumption, but also investment. The higher absorption of 
Recovery and Resilience Facility (‘RRF’) funds envisaged in 2022, with potential crowding-
in effects on private investment and a carry-over effect from 2021, are forecast to provide a 
noticeable boost to economic growth in 2022. The contribution of external demand to GDP 
growth is set to turn positive in 2022, when tourism-related activities are likely to approach 
their 2019 level.   

Inflation was slightly negative in 2020 due to a fall in energy prices. Inflation is expected 
to rebound in 2021 to 1,4%, as a more sustained outlook for demand spurs a gradual rise in 
the  prices  of  consumer  services.  Upward  pressures  are  also  likely  to  come  from  prices  of 
electricity and of fuels such as diesel and petrol. 

Short-time  work  schemes  helped  mitigating  the  impact  on  the  labour  market  by 
preserving jobs and income of workers in the most affected sectors.  Existing short-time 
work schemes (‘ERTEs’) were made more generous at the outset of the crisis to mitigate job 
losses and they are to remain in place until the end of September 2021. In addition, several 
measures  were  taken  to  protect  the  self-employed  by  means  of  benefits  for  suspension  of 
activity. Despite these measures, the fall in employment increased the unemployment rate to 
15,5% in 2020 from 14,1% in 2019. Unemployment is forecast to slightly increase again in 
2021  (15,7%)  before  falling  in  2022,  when  job  creation  is  expected  to  reduce  it  to  around 
14,4%.  In  this  context,  further  increases  to  the  minimum  wage  seem  to  be  envisaged [9]. 
Corporate  liquidity  has  been  enhanced  by  a  programme  of  public  guarantees  for  new  bank 
loans, tax deferrals,  and  payment  moratoria, among other measures. Nevertheless, impaired 
profitability could lead to the materialisation of corporate insolvencies, mainly concentrated 
in  those  sectors  most  affected  by  activity  restrictions,  when  policy  support  measures  are 

[9]  The  Bank  of  Spain  (2021)  has  analysed  the  impact  on  employment  of  the  2019  minimum  wage  increase 
(22,3%). Its analysis quantifies a decrease in employment levels of 0,6 to 1,1 pps., and suggests a larger adverse 
impact  on  the  job  losses  of  elder  workers,  and  a  sharper  reduction  in  hours  worked  and  in  job  creation  for 
younger workers.  

7 

 
 
                                                 
wound  down.  This  could  lead  to  an  increase  in  unemployment  and  reduced  productive 
capacity.  

To  limit  insolvency  risks  in  the  short  term,  the  authorities  adopted  in  March  2021  a 
package  of  measures  to  support  SMEs.  A  EUR 3  billion  restructuring  fund  will  allow  to 
extend  the  maturity  or  convert  to  equity  those  loans  backed  by  public  guarantees.  A 
recapitalisation  fund  worth  EUR  1  billion  will  support  the  recapitalisation  of  SMEs,  under 
certain  conditions.  This  fund  complements  another  recapitalisation  fund  worth  EUR  10 
billion for large companies that was set up in July 2020. Measures for SMEs also include a 
support  fund  (EUR 7  billion)  to  cover  fixed  costs  of  companies  having  suffered  a  fall  in 
revenues of at least 30% in 2020 compared to 2019. 

The  increase  in  unemployment  and  the  fall  in  incomes  due  to  the  crisis  are  likely  to 
result  in  higher  poverty  and  long-term  unemployment  levels.  Persons  that  were  already 
struggling to find employment before the pandemic, like the low-skilled, young, but also non-
EU born, are expected to see a further deterioration in their position on the job market. The 
low-skilled and non-EU  migrants  also face the largest  risk of social  exclusion and poverty. 
They  are likely to  benefit  later from  the recovery as many are employed  in  the sectors that 
have been hardest hit in the crisis, such as tourism. At 25,3% (2019), the share of people at 
risk of poverty or social exclusion is amongst the highest in the EU, and the crisis is expected 
to further increase this risk for vulnerable groups. 

As a result of the COVID-19 crisis and the policy response to it, the general government 
deficit widened by more than 8 pps. to 11,0% of GDP in 2020. A few one-off events, in 
particular the reclassification into the general government sector of SAREB, also took place, 
adding  around  1  pp.  to  the  deficit  ratio  and  3  pps.  to  the  debt  ratio  in  2020.  In  2021,  the 
deficit  is  projected  to  narrow  to  around  7,6%  of  GDP,  as  a  subsiding  pandemic  and  the 
impact of a gradual implementation of the Recovery and Resilient Plan (‘RRP’ or ‘the plan’) 
of  Spain  leads  to  a  rebound  in  economic  activity,  while  the  net  impact  of  temporary 
emergency measures to address the economic consequences of the pandemic are set to weigh 
less on public  finances.  Thanks to  a stronger impact  on  economic  growth from  the RRP in 
2022,  the  deficit  is  forecast  to  narrow  to  5,2%  of  GDP  in  2022.  Public  guarantees  provide 
crucial support, but also constitute a risk to the fiscal outlook. Due to the large government 
deficit, the severe contraction in GDP and the impact from the SAREB reclassification, the 
general government gross debt-to-GDP ratio rose by almost 25 pps. from 95,5% of GDP in 
2019 to 120% in 2020. As growth resumes and the deficit narrows, the debt ratio is expected 
to gradually come down to around 116,9% of GDP by the end of 2022.  

Spain’s public debt and deficit were high before the COVID-crisis. Spain’s debt-to-GDP 
reached its previous peak in 2014 at 100,7% of GDP and declined gradually to 95,5% of GDP 
in 2019. Over the same period, the deficit was smaller than 3% of GDP only in 2018-2019. 
Although  the  debt  ratio  has  declined  only  about  5 pps.  over  the  2014-2019  period,  interest 

8 

 
 
expenditure  declined  by  1,1 pps.  to  2,3% of  GDP  in  2019  owing  to  favourable  interest  rate 
environment. At the same time, the average maturity of debt has been extended.  

Spain faces high fiscal sustainability risks in the medium term. This conclusion is based 
on  both  the  sustainability  gap  indicator  (S1)  and  the  debt  sustainability  analysis.     [10]  The 
former indicator indicates that Spain's structural primary balance would need to improve by 
4.9% of GDP in cumulative terms over the five-year period to 2027 relative to the baseline 
scenario  to  bring  the  debt-to-GDP  ratio  to  the  reference  value  of  60%  by  2042.  The  debt 
sustainability  analysis  indicates  that  under  the  baseline,  which  exceptionally  assumes  a 
gradual return of the structural balance to pre-crisis (forecast) level. [11] Spain’s public debt is 
projected  to  stabilise,  and  slightly  decline  over  the  second  half  of  the  period,  although 
remaining at a high level (reaching about 117,4% of GDP in 2031). This result is driven by 
the  weak  fiscal  position  (with  a  structural  primary  deficit),  while  the  negative  interest  – 
growth  rate  differential  is  expected  to  remain  negative,  containing  the  debt  dynamic. 
Moreover,  the  debt  trajectory  is  sensitive  to  macroeconomic  shocks.  When  taking  into 
account  a  large  range  of  possible  temporary  shocks  to  macroeconomic  variables  (through 
stochastic projections), it is probable that the debt ratio could be higher in 2025 than in 2020.  

Before  the  pandemic,  macroeconomic  imbalances  had  decreased,  partly  due  to  strong 
GDP  growth.  The  imbalances  related  to  high  external  and  internal  debt,  both  public  and 
private, in a context of still high unemployment had cross-border relevance and were a source 
of vulnerability. In this regard, the COVID-19 crisis has exacerbated the imbalances that had 
persisted  for  several  years  in  Spain,  to  a  substantial  extent  due  to  the  decline  in  GDP,  and 
vulnerabilities  linked  to  external,  private  sector  and  government  debt  remain. [12]  The 
implementation of policy measures in the Recovery and Resilience Plan can prove decisive to 
mitigate  some  outstanding  vulnerabilities  of  the  Spanish  economy  and  steer  a  reduction  of 
existing imbalances, particularly from 2022, when strong demand effects and possible carry-
over  effects  from 2021  are expected to be  accompanied by  a  gradual  contribution  from  the 
supply side.   

The  macroeconomic  scenario  underpinning  the  Spanish  stability  programme  and  the 
RRP is realistic in 2021 and 2022. The Commission 2021 spring forecast expects real GDP 
in  Spain  to  grow  by  5,9%  in  2021  and  6,8%  in  2022.  This  is  slightly  lower  than  the 
Government projections for GDP growth, as it is forecast to be of 6,5% in 2021 and 7,0% in 
2022. While the Government’s projections are based on a more frontloaded use of the funds, 
resulting in a faster economic impact of the measures funded by the Recovery and Resilient 
Facility, the Commission expects a more gradual absorption. 

The  macroeconomic  and  fiscal  outlook  continue  to  be  affected  by  high  uncertainty 
related to the COVID-19 pandemic and its economic consequences. While uncertainty has 

[10] European Commission Debt Sustainability Monitor 2020, Institutional Paper 143, February 2021. 
[11] See the Monitor for full methodological description. 
[12] IDR, Spring Package 2021. 

9 

 
 
                                                 
decreased  slightly,  the  outlook  for  Spain’s  economy  is  still  subject  to  a  larger  degree  of 
uncertainty than normal. This is due to uncertainties linked to the recovery of tourism-related 
activities, the response of private agents to the potential relaxation of confinement measures, 
and the size and impact of public measures to contain the effect of the pandemic and support 
the recovery, including the actual absorption of the RRP.  

Table 2.1. Comparison of macroeconomic developments and forecasts 

2019 

2020 

2021 

2022 

2023 

2024 

COM  RRP  COM  RRP 

RRP 

RRP 

Real GDP (% change) 

2,0 

-11,0 

5,9 

6,5 

6,8 

7,0 

0,8 

-0,3 

1,4 

1,2 

1,1 

1,5 

3,5 

1,6 

2,1 

1,9 

Inflation (% 
change)(1) 

Employment (15-74 
years, % change) 

Unemployment rate 
(%) 

GG net lending (% of 
GDP)(2) 

Government debt (% 
of GDP)(2) 

2,3 

-7,5 

4,5 

4,0 

2,0 

2,7 

1,1 

0,9 

14,1 

15,5 

15,7 

15,2 

14,4 

14,1 

13,2 

12,7 

-2,9 

-11,0 

-7,6 

-8,4 

-5,2 

-5,0 

-4,1 

-3,3 

95,5 

120,0 

119,6 

119,5 

116,9 

115,1 

113,3 

112,1 

(1) Inflation is the Harmonised Index of Consumer Prices except for the RRP figures, where it is the GDP deflator. 
(2) For the RRP, the figures are from the Spanish Stability Programme 2021-2024, April 2021. 

2.2. Challenges  related  to  sustainable  growth,  cohesion,  resilience  and  policies  for 

the next generation  

Before  the  pandemic,  Spain  had  enjoyed  six  years  of  strong  economic  growth 
accompanied by dynamic job creation. Between 2013 and 2019, real GDP grew by 16,5%, 
and employment by 14%, well above the euro area average. However, structural weaknesses 
remained.  Despite  the  decline  in  unemployment,  too  many  working  age  people  remained 
without a job or could not make a decent living. Productivity was also growing slowly due to, 
among others, low innovation in many firms and regions, regulatory fragmentation and other 
barriers to firm growth, labour market segmentation and skills gaps. [13] Spain is also one of 
the  European  countries  most  exposed  to  climate  change,  which  poses  important  policy 
challenges for water and waste management, energy and resource efficiency, emissions and 
renewable energy.  

[13] Bauer et al. (2020) and Martínez Turégano (2020). 

10 

 
 
 
 
 
                                                 
Smart, sustainable and inclusive growth 

In  Spain,  high 
labour  market  segmentation  facilitates  job  destruction  during 
downturns,  makes  unemployment  highly  pro-cyclical  and  hurts  productivity  and 
equality.  About  22%  (26%  before  the  crisis)  of  employees  in  the  private  sector  are  on 
temporary contracts and in the public administration the figure reaches 30% (28% before the 
crisis).  As  the  current  crisis  has  shown,  this  puts  the  brunt  of  adjustments  on  temporary 
workers,  while permanent  workers tend to  be more shielded from  economic fluctuations.  It 
also results in fewer incentives to invest in training of temporary workers, and therefore has a 
negative impact on labour productivity growth. In addition, workers with temporary contracts 
are  in  a  more  vulnerable  position  as  they  often  earn  lower  salaries,  and  have  less  effective 
access  to  social  protection,  which  fuels  inequality  and  in-work  poverty.  Reducing  labour 
market  segmentation  would  therefore  significantly  improve  productivity  and  reduce 
inequalities. 

ability 

important  bottlenecks remain.  The  governance  system  and 

The  Spanish  science  and  innovation  system  suffers  from  under-investment  and  weak 
governance.  Notwithstanding  the  announced  temporary  increase  in  Spain’s  public  R&D 
expenditure, 
financing 
mechanisms  of  Public  Research  Organizations  (‘PRO’)  and  Universities  coupled  with  their 
insufficient 
their 
scientific competitiveness and contribution to the Spanish economy. Despite the initiatives to 
enhance  public  research  and  private  activities  envisaged  in  the  new  Strategy  for  Science, 
Technology  and  Innovation  (‘EECTI’)  2021-2027,  the  State  Plan  for  Science,  Technology 
and  Innovation  (‘PEICTI’)  2021-2023  and  the  RRP,  further  efforts  to  increase  the  block 
funding of PROs and Universities based on their performance, as well as to establish flexible 
and modern governance models that strengthen the links with the private sector are needed.  

linkages  with 

business 

hinder 

strong 

build 

to 

Spain  needs  to  reduce  regulatory  fragmentation  and  barriers  and  improve  support  to 
innovative  businesses,  in  particular  SMEs. Spain  is  one  of  the  weakest  performers  in 
Single  Market  indicators.  Regulatory  fragmentation  and  barriers  in  Spain  make  SMEs  less 
productive  and  not  able  to  benefit  from  economies  of  scale. The  Law  on  Market  Unity, 
adopted  in  2013,  is  an important  tool  to  overcome  market  fragmentation  and  improve 
competition  during  the  recovery.  While  it  has  been  enforced  by  courts  and  competition 
authorities, a stronger and sustained coordination between the different levels of government 
is  also  essential  for  the  law  to  deliver  its  full  effects. Business  would  also  benefit  from  a 
stronger framework for public procurement. 

Social and territorial cohesion 

The  COVID-19  crisis  may  deteriorate  social  cohesion,  in  a  context  of  pre-existing 
income  inequalities  and  high  risk  of  poverty  or  social  exclusion,  especially  among 
children. High unemployment rates, labour market segmentation and the limited capacity of 
social  transfers  (excluding  pensions)  to  reduce  poverty  weigh  on  social  cohesion  in  Spain. 
Regional disparities are the widest in employment and social outcome indicators, where most 
regions underperform relative to the EU-average.  

There is a risk of widening regional disparities following the outbreak of the COVID-19 
pandemic. The tourism  sector was  particularly hard hit by travel  restrictions and lockdown 
measures. Hence, economic activity in regions with a high share of jobs related to tourism is 

11 

 
 
disproportionately affected. This is particularly the case for the regions on the Mediterranean 
coast and the Balearic Islands and the Canary Islands, where more than one fourth of jobs are 
linked  to  tourism,  whereas  regions  with  a  higher  share  of  manufacturing and  other  service 
sectors are likely to rebound more easily after the lockdowns. 

The lack of opportunities and the search for better living conditions are the main cause 
of  depopulation  of  rural  areas.  Overcoming  the  demographic  challenge  of  the  urban  and 
rural divide should be mainstreamed into policy action to improve the business environment, 
access to basic public services in the fields of health, education and social-leisure, access to 
connectivity  and digital  skills,  innovation  and technology, and transport  infrastructure. This 
would  provide  better  conditions  for  enterprises  to  set  up  in  rural  areas,  as  well  as  for 
economic diversification and job creation in there.  

Health, and economic, social and institutional resilience 

The  COVID-19  pandemic  has  revealed  structural  weaknesses  in  the  Spanish  health 
system.  The  unprecedented  surge  in  demand  for  intensive  care  rapidly  brought  the  health 
system  close  to  a  breaking  point,  stretching  the  health  workforce  to  the  limit,  highlighting 
staff  shortages  and  precarious  working  conditions.  At  the  regional  level,  the  crisis  revealed 
uneven  capacities  to  cope  with  the  shock.  The  mechanisms  of  co-ordination  across  the 
regions, between health and long-term care, and between different levels of government have 
shown  shortcomings.  A  more  resilient  health  system  is  critical  to  better  control  potential 
disease  outbreaks  in  the  future.  Issues  to  tackle  are  the  modernisation  of  primary  care, 
shortages  in  the  healthcare  workforce,  prevention  and  health  promotion  measures,  the 
integration of health and social care and the deployment of eHealth tools. The health system 
also  needs  to  be adapted to  the needs of the ageing population,  as nearly 60% of Spaniards 
aged 65+  have  at  least  one  chronic  disease,  almost  40%  have  reported  symptoms  of 
depression and more than 20% have some limitations in daily activities. 

Measures adopted by the authorities to support corporates and households have helped 
mitigate the impact of the crisis on the banking sector. The banking sector was relatively 
robust  at  the  on-set  of  the  COVID-19  crisis  with  comparatively  good  asset  quality, 
capitalisation  and  liquidity  position.  The  borrower  relief  measures  (i.e.  legislative  loan 
moratoria and voluntary moratoria granted by banks) and the public guarantee schemes have 
prevented the deterioration in asset quality and facilitated the flow of credit to the economy. 
Credit  activity  has  been  mainly  supported  by  the  expansion  of  lending  to  non-financial 
corporations backed by  state guarantees.  Banking sector capitalisation marginally improved 
supported  by  the  supervisory  and  regulatory  relief  measures  adopted  since  the  onset  of  the 
pandemic.  While  no  significant  cliff-edge  effects  are  expected  when  loan  moratoria  expire 
fully, a more marked deterioration in asset quality is likely to emerge once support measures 
are phased out. Due to the increase in loan-loss provisions and by one-off measures adopted 

12 

 
 
by  several  banks,  banking  sector  profitability  has  remained  under  pressure.  Banking  sector 
consolidation has continued notwithstanding the difficult operating environment for banks. 

Emergency  measures  have  played  an  important  role  in  cushioning  the  effect  of  the 
economic downturn in 2020, together with the existing tax and benefit system. Drops in 
households’  market  incomes  have  been  largely  mitigated  by  the  short-time  work  schemes 
(‘ERTEs’)  and  other  emergency  measures  taken  to  protect  incomes,  as  well  as  through  the 
pre-existing tax and benefits  system. [14]  The national  minimum  income scheme introduced 
in 2020 has also acted as a social safety net, and has the potential to overcome the previous 
fragmented systems. This way, automatic stabilisers and discretionary measures have limited 
the rise in income inequality and poverty risk.  

Improving  the  functioning  of  the  fiscal  framework  is  essential  to  warrant  an  efficient 
use  of  public  investment  to  strengthen  the  medium-  and  long-term  sustainability  of 
public  finances.  Spain’s  Independent  Authority  for  Fiscal  Responsibility (‘AIReF’) 
completed  11  expenditure  reviews  in  2019  and  2020,  which  also  covered  an  assessment  of 
existing tax benefits. If fully implemented, these have the potential to lead to improvements 
in  the  efficiency  and  effectiveness  of  public  spending.  The  effectiveness  of  the  tax 
administration could also be further enhanced. 

Improving the quality of public expenditure would also require strengthening the public 
procurement  framework.  Spain  had  already  taken  steps  to  comply  with  the  Directive 
2014/24/EU [15] by creating the independent Office for Regulation and Supervision of Public 
Procurement  and  the  National  Evaluation  Office.  The  first  corresponds  to  the  enforcement 
body  under  Article 83(1)  of  that  Directive  and  has  powers  to  act  across  the  whole  Spanish 
territory  to  fight  breaches  in  procurement  matters  through  its  regulatory  and  supervisory 
action. The second is meant to issue mandatory reports analysing the financial sustainability 
of public works and service concession contracts prior to the approval of projects (serving as 
basis for tendering procedures) to both the central and local governments, as well as regional 
governments that decide to adhere to it. However, these governance bodies are not yet fully 
set  up  or  completely  operational  and  the  adoption  of  the  nation-wide  public  procurement 
strategy  has  been  delayed.  Their  effectiveness  will  depend  crucially  on  the  resources 
allocated to its implementation and the degree of ownership at all levels of government. 

Policies for the next generation, children and youth, including education and skills.  

Spain could further enhance the labour-market relevance of its education system. The 
education  expenditure as a share of GDP remains below the EU average and investment  in 

[14] The findings in Almeida et al. (2020) and Christl et al. (2021) based on the Euromod model, suggest that the 
2020  tax-benefit  system  in  Spain  absorbed  about  two  thirds  of  the  shock  in  market  income,  half  of  the 
cushioning effect due to the monetary compensation schemes. 

[15]  Directive  2014/24/EU  of  the  European  Parliament  and  of  the  Council  of  26  February  2014  on  public 
procurement and repealing Directive 2004/18/EC, http://data.europa.eu/eli/dir/2014/24/2020-01-01. 

13 

 
 
                                                 
education decreased in the last decade. Schools are well equipped with digital infrastructure 
and tools, but teachers’ digital competences are not always up to the challenge. Using digital 
means  for  teaching  remains  limited  and  students’  digital  competences  have  to  improve.  In 
particular, the crisis has revealed a sharp socio-economic divide in students’ access to digital 
technology. In spite of recent improvements, Spain still has one of the highest rates of early 
leavers from education and training in the EU (16% in 2020), which contributes to the high 
share  of  low  skilled  in  the  working  age  population  and  exacerbates  pre-existing  socio-
economic  inequalities.  Basic  skills  levels  have  not  improved  significantly  and  regional 
differences remain significant. 

Spain is one of the countries with higher skill mismatches in the labour market in the 
EU.  Medium  to  high-level  technical  skills,  and  especially  ICT  specialists,  are  in  shortage. 
There  are  under-utilised  skills  in  parallel,  particularly  amongst  higher  education  graduates. 
Career  guidance  and  orientation  are  key  to  reduce  skills  mismatches.  The  gender  gap  in 
science,  technology,  engineering  and  mathematics  (‘STEM’)  remains  high.  The  relatively 
low enrolment in vocational education and training (‘VET’) amplifies shortages of medium to 
high technical skills, including those needed for the transition to a green and digital economy. 
Participation  in  adult  learning  is  currently  low,  especially  for  low-skilled  people,  who 
represent  one  the  highest  share  of  the  active  population  in  the  EU.  The  share  of  long-term 
unemployed in the active population is among the highest in the EU. Young people in Spain 
have the highest unemployment rate in the EU, and the share of “those neither employment, 
nor in education or training” remains well above the EU average. Public employment services 
and current active labour market policies are not effective enough in supporting sustainable 
jobs and re-skilling and up-skilling the workforce. 

Social expenditure remains oriented towards the older generations, while the high rate 
of child poverty weighs on equal opportunities. The difficult economic and social context 
resulting  from  the  pandemic  calls  for  a  more  balanced  approach  towards  intergenerational 
solidarity in favour of the younger generations. The crisis is likely to increase the high level 
of poverty and social exclusion despite the new minimum income scheme introduced in 2020. 
In a context of very low fertility rates, families with children are particularly exposed. Social 
transfers (excluding pensions) have a low impact on child poverty reduction. Income support 
to children in Spain, which is one of the lowest in the EU, builds to a large extent on reducing 
the  tax  burden  born  by  families  with  children.  Lower-to-medium  income  families  are  not 
entitled to the country’s strict means-tested child benefits, partly integrated in the minimum 
income  scheme  as  of  2021,  and  tax  deductions  are  of  a  more  limited  advantage  to  them. 
Unemployment  assistance  for  the  long-term  unemployed  and  those  not  qualifying  for 
contributory  schemes  is  currently  scattered  across  multiple  schemes,  resulting  in  low 
coverage and effectiveness in activation. 

2.3. Challenges related to the green and digital transition   

Green dimension  

The recovery and resilience plan should contribute to the green transition and at least 
37% of the plan’s total allocation needs to contribute to climate objectives. The measures 
in the plan are expected to contribute to achieving the 2050 climate neutrality objective, and 
the increased 2030 energy and climate targets,  taking into account  the NECP. In particular, 
the  financial  contribution  for  Spain  allows  frontloading  investments  necessary  to  reach  the 
14 

 
 
EU  increased  climate  ambition  to  reduce  net  greenhouse  gas  emissions  by  at  least  55%  by 
2030 compared to 1990, towards EU climate neutrality by 2050, as agreed by the European 
Parliament  and  the  Council  within  the  Climate  Law.  It  should  also  contribute  to  meeting 
environmental  targets  for  waste,  pollution  control,  sustainable  mobility,  biodiversity 
protection  and  restoration,  marine  and  water  resources,  and  support  the  transition  to 
sustainable food systems, as well as to the circular economy, while ensuring that nobody is 
left behind.  

Water, waste and biodiversity 

Despite  some  progress,  many  challenges  remain  for  water  management  in  Spain.  This 
applies  to  water  governance,  pricing  policy  and  water  body  restoration.  Implementing  an 
appropriate  pricing  policy  to  recover  the  costs  of  services  in  all  river  basin  districts  would 
promote  water  efficiency,  especially  in  the  agriculture  sector.  Further  infrastructure 
investments  are  needed  to  improve  water  management,  such  as  wastewater  collection  and 
treatment,  reduction  of  leaks  in  the  networks  and  improve  water  supply.  Despite  efforts 
undertaken as  part of the river basin  management  plans, the overall quality of  groundwater 
has  substantially  deteriorated  in  recent  years,  and  there  is  a  need  to  reduce  the  surplus  of 
nitrogen  and  phosphorus  generated  by  agricultural  activities.  Despite  efforts  to  modernise 
irrigation  systems,  pressure on water  availability requires particular attention and continued 
progress is needed. Spain should take further advantage of the potential of reusing water.  

Despite  progress  in  the  transition  towards  the  circular  economy,  waste  management 
remains  a  challenge,  but  with  substantial  differences  between  regions.  The  amount  of 
landfilled  waste,  which  remains  considerable,  is  preventing  faster  progress  towards  the 
circular economy. Spain is  one of the countries  who has missed the EU  target  of recycling 
50% of municipal waste by 2020 (the overall recycling rate was of 35% in 2019). The EU has 
set up even more ambitious targets for the next decade, including achieving 55% recycling of 
municipal waste by 2025. Therefore, significant efforts are needed to increase the prevention, 
minimisation,  sorting,  reuse  and  recycling  of  waste,  thereby  diverting  waste  away  from 
landfills or incinerators. Supporting circular economy innovations and business models could 
further support the circular economy in Spain. 

Spain has a very rich biodiversity. Around 27% of the Spanish territory is covered by the 
Natura  2000  network  (EU  average  is  18%).  This  poses  important  challenges  in  terms  of 
conservation,  management  and  resources,  but  also  provides  important  opportunities  to 
preserve  biodiversity,  support  ecosystem  services  and  achieve  positive  outcomes  from  a 
socio-economic  perspective.  Spain  could  further  capitalise  on  its  rich  natural  capital  to 
promote  green  growth  and  job  creation,  for  instance,  through  more  environmentally 
sustainable forms of tourism.  

GHG emissions and air quality  

The  emission  of  several  air  pollutants  has  decreased  over  the  last  decades  in  Spain. 
However,  ensuring  a  good  level  of  air  quality  continues  to  raise  concern,  mainly  related  to 
nitrogen dioxide (NO2) emissions. In particular, conventional personal transport exacerbates 
existing  problems  with  air  quality  and  traffic  congestion  in  the  main  metropolitan  areas, 
namely  Madrid  and  Barcelona,  leading  to  health,  social  and  economic  costs  that  could  be 
avoided or minimised.  

15 

 
 
According to Spain’s existing climate targets, it aims to reduce  greenhouse gas (GHG) 
emissions  reduction  by  23%  by  2023  (compared  to  2005)  and  to  achieve  climate 
neutrality by 2050. Spain has overachieved its 2020 target for GHG emission reductions in 
sectors  not  covered  by  the  EU  Emissions  Trading  System  (‘ETS’).  In  these  sectors  GHG 
emissions have been reduced by 14%, well above the binding national target of 10% by 2020 
under the Effort Sharing Regulation (‘ESR’). [16] However, in the absence of new measures, 
Spain is expected to miss its existing 2030 GHG emission reduction target of 26% compared 
to 2005 by 10 percentage points. This could be avoided if the measures outlined in the NECP 
were implemented. In this scenario, the current 2030 ESR target would be overachieved by 
13 percentage points.  

Transport  is  the  sector  in  which  GHG  emissions  continue  to  grow  most.  The  transport 
sector accounted for 26% of GHG emissions in 2017. The transport measures in the NECP, 
including encouraging a modal shift, are key for Spain to achieve its GHG emission reduction 
targets. The NECP measures would lead to a reduction of GHG emissions from transport by 
one third. Spain should therefore implement the NECP, in particular regarding the measures 
proposed for the transport sector, to ensure achieving its GHG emission reduction goals. 

Climate change 

Spain is one of the Member States that is most exposed to the adverse effects of climate 
change.  It  is  a  core  challenge  anticipating  and  managing  the  adverse  effects  of  climate 
change, such as floods, coastal erosion, droughts, heat waves, reduced water resources, loss 
of biodiversity and natural ecosystems, and forest fires. These natural hazards are expected to 
become even more frequent and extreme in the future. Therefore, measures in risk prevention 
and  preparedness,  climate  change  adaptation  and  nature-based  solutions  are  required  in 
Spain.  Continued  support  to  agricultural  and  forest  practices  that  are  beneficial  for 
biodiversity  and  ecosystem  resilience  are  needed,  including  fostering  organic  farming, 
promoting  the  sustainable  use  of  pesticides,  regenerating  silvo-pastoral  systems,  preventing 
and managing forest fires, and promoting agro-forestry. 

Renewable energy  

Spain  aims  to  contribute  to  the  current  EU’s 2030  target  for  renewable  energy  by 
reaching 42% of renewables in gross final energy consumption by 2030. This ambition is 
above the required share of 32% of renewables in gross final energy consumption that results 
from the formula in Annex II to Regulation (EU) 2018/1999 of the European Parliament and 
of  the  Council  of  11  December  2018  on  the  Governance  of  the  Energy  Union  and  Climate 

[16]  Regulation  (EU)  2018/842  of  the  European  Parliament  and  of  the  Council  of  30  May  2018  on  binding 
annual greenhouse gas emission reductions by Member States from 2021 to 2030 contributing to climate action 
to  meet  commitments  under  the  Paris  Agreement  and  amending  Regulation  (EU)  No  525/2013  (OJ  L  156, 
19.6.2018, p. 26). 

16 

 
 
                                                 
Action. [17]  The  largest  share  of  renewable  energy  is  attributed  to  the  electricity  sector.  To 
achieve  the  target,  Spain  should  focus  on  further  developing  electricity  from  renewable 
sources  (e.g.  offshore  wind,  solar),  fostering  renewable  hydrogen  and  support  the  sectoral 
integration of renewable energy. Promoting the use of renewable heating and cooling systems 
is also needed. Full implementation of the NECP would allow Spain to achieve a substantial 
increase in renewables with a view to achieve climate neutrality by 2050. Further reflection 
on how to improve the integration of the energy system could also help making this increase 
more cost-effective. While increasing the share of renewable energy sources, Spain needs to 
fully take into account the impact from combustible renewable fuels on air quality. 

Energy efficiency 

Fostering  energy  renovations  of  buildings  remains  a  challenge,  but  it  could  speed  up 
energy savings and contribute to the economic recovery. In the context of the Renovation 
Wave, there is scope for Spain to intensify efforts to improve the energy performance of the 
existing  building  stock,  including  with  the  aim  to  address  energy  poverty.  Such  measures 
would  ensure  achieving  the  national  contribution  for  energy  efficiency  and  the  cumulative 
energy  savings  target.  It  is  estimated  that  following  an  average  annual  renovation  rate  of 
2,6% at the cost optimal level, the primary energy saving potential in Spain is approximately 
108  TWh  by  2050.  Over  the  2021-2050  period,  this  is  expected  to  generate  more  than  7 
million of full time equivalent jobs. [18] In the NECP, Spain has a number of specific energy-
efficiency  actions  for  buildings,  including  to  renovate  (i) 1 200 000  residential  buildings  by 
2030,  and  (ii)  heating  and  cooling  systems  of  300 000  residential  buildings  on  average  per 
year. 

Electricity interconnectors 

Continued  cooperation  with  France  and  Portugal  is  key  to  foster  the  internal  energy 
market and ensure energy security, in particular by supporting cross-border and cross-
regional  interconnections.  The  NECP  sets  the  targets  of  10%  energy  interconnection 
capacity  by  2020  and  15%  by  2030.  These  targets  emphasise  the  need  to  implement  key 
infrastructure  projects,  notably  planned  Important  Projects  of  Common  European  Interest 
(‘IPCEIs’)  as  well  as  several  grid-reinforcement  projects  necessary  to  further  integrate 
renewable  energy  capacity.  Spain  should  continue  to  increase  the  level  of  energy 
interconnection capacity to achieve the 2030 target. 

The table below gives an overview of Spain’s objectives, targets and contributions under the 
Governance Regulation.  

[17]  Regulation  (EU)  2018/1999  of  the  European  Parliament  and  of  the  Council  of  11  December  2018 on  the 
Governance of the Energy Union and Climate Action, OJ L 328, 21.12.2018, p. 1–77 (hereafter the ‘Governance 
Regulation’). 

[18] Zangheri et al., 2020. 

17 

 
 
                                                 
Table  2.3.1:  Overview  of  Spain’s  objectives,  targets  and  contributions  under  the 
Governance Regulation 

National targets and contributions   

Binding target for greenhouse gas 
emissions compared to 2005 under the 
Effort Sharing Regulation (%)  

National target/contribution for 
renewable energy: Share of energy 
from renewable sources in gross final 
consumption of energy (%) 

Latest 
available 
data  

2020  

2030  

Assessment of 2030 
ambition level  

-14% 

- 10%  

-26% 

As in ESR. Total GHG 
target implies -39%  

18,4% 
(2019) 

20%  

42%  

Sufficiently ambitious 
(the result of the RES 
formula is 32%) 

National contribution for energy efficiency: 

Primary energy consumption (Mtoe)  

Final energy consumption (Mtoe)  

120,8 
(2019) 

86,3 
(2019) 

123,4  

98,5  

Sufficient  

87,23  

73,6  

Sufficient  

Level of electricity interconnectivity 
(%)  

6,5% 

10%  

15%  

N/A 

Sources: Assessment of the final national energy and climate plan of Spain, SWD (2020) 908 
final; Eurostat where data is indicated for specific years. 

Digital dimension [19] 

The recovery and resilience plan should contribute to the digital transition and at least 
20% of the plan’s total allocation needs to contribute to digital objectives. The measures 
in  the  plan  should,  inter  alia,  contribute  to  the  digital  transformation  of  the  economic  and 
social  sectors  (including  public  administration,  public  services,  and  the  justice  and  health 
systems).  The  objective  of  the  measures  in  the  plan  should  be  to  improve  not  only  the 
competitiveness, but also the resilience, agility and security of companies and public actors, 
all while ensuring inclusiveness. 

Spain  is  an  intermediate  performer  on  the  European  Commission’s  Digital  Economy 
and Society Index (‘DESI’) for 2020. The main deficit lies in human capital, according to 
DESI.  Investments  that  enable  students  and  schools  to  develop  virtual  classes  became 
extremely  important  during  the  COVID-19  crisis.  In  2019,  43%  of  the  Spanish  population 
lacked  basic  digital  skills.  To  increase  resilience,  Spain  should  also  further  promote  the 

[19] Figures presented in these sub-sections are from the European Commission’s Digital Economy and Society 
Index (‘DESI’) for 2020, unless otherwise specified. 

18 

 
 
                                                 
digitalisation of businesses, including SMEs, very small enterprises and the self-employed, to 
help them in the transition towards the digitalisation of productive processes and distributions 
channels  (enhancing  e-commerce).  Spanish  firms  could  also  increase  their  productivity  and 
competitiveness through improved management competences. 

Spain’s overall connectivity score has further improved, but the rank remains 5th in the 
DESI  2020.  The  country  performs  particularly  well  when  it  comes  to  VHCN  (Very  High 
Capacity  Network)  coverage.  The  deployment  of  FTTP  (Fiber  to  the  premises)  networks 
continues  to  be  an  important  feature  of  the  Spanish  digital  market,  covering  84.9%  of 
households,  above  the  EU  average  of  42,5%.  Despite  the  significant  differences  between 
urban  and  rural  areas,  rural  FTTP  coverage  in  Spain  reaches  59,5%  of  households, 
significantly  above  the  rates  of  both  EU  rural  and  total  FTTP  coverage  (21%  and  34% 
respectively).  In  June  2019,  SETID  (Secretaría  de  Estado  de  Telecomunicaciones  e 
Infraestructuras Digitales) published a draft proposal for managing the 700 MHz, 1,5 GHz 
and  26  MHz  bands  in  which  general  aspects  of  the  auctions  where  consulted.  After  delays 
due to the COVID 19 pandemic, the tender specification and launch of the auction for the 700 
MHz  band  was  published  on  31  May  2021.  Spain  decreased  four  positions  in  the  5G 
readiness indicator (from 6th to 10th), as it has  not assigned any additional spectrum in the 
5G pioneer bands.  

According  to  the  European  Index  of  Digital  Entrepreneurship  Systems  (‘EIDES’) [20], 
that  compares  framework  conditions  for  digital  start-ups  and  scale-ups  in  Europe, 
framework  conditions  for  digital  start-ups  and  scale-ups  in  Spain  considerably 
improved  between  2018  and  2020.  As  a  result,  Spain  moved  from  the  Catchers-up  to  the 
Followers  group.  Relative  strengths  of  the  Spanish  digital  innovation  ecosystem  include 
access  to  finance  and  networking  and  support.  Among  weaknesses  of  the  Spanish  digital 
innovation ecosystem are culture and informal institutions and regulation and taxation.  

The  level  of  venture  capital  and  artificial  intelligence  investments  in  Spain  reflect  the 
positive  improvements  of  framework  conditions  for  start-ups  and  scale-ups  in  Spain. 
Between 2014 and 2019, venture capital investments increased approximately threefold from 
around EUR 0,5 billion in 2014 to nearly EUR 1,5 billion in 2019. With the level of artificial 
intelligence investments between EUR 16,3 and EUR 18 per capita, Spain lies above the EU 
average. However, at 0,06% of GDP in 2020 (cf. 0,16% for EU27), venture capital financing 
fell back to 2017 levels, and thus remains underdeveloped. [21] 

The  wide  digital  gap  between  urban  and  rural  areas  remains  to  be  closed.  Overall, 
connectivity is good, but Next Generation Access broadband coverage in rural areas is only 
58,7%  (2019)  as  compared  to  almost  92%  at  national  level.  Improved  coverage  would 
support  the  digital  transition  of  the Spanish  farming  sector,  for  example  through  reinforced 

[20] https://ec.europa.eu/jrc/en/EIDES. 
[21] Benedetti Fasil et al, 2021. 

19 

 
 
                                                 
efforts  on  digital  skills  in  rural  areas  and  by  exploiting  the  digital  technologies  to  better 
monitor and optimise agricultural production processes.  

Spain ranks 16th in the EU on human digital capital in DESI 2020, rising in the ranking 
since the previous year.  The level  of basic digital skill  is  around the EU average:  43% of 
people  between  16  and  74  years  of  age  lack  basic  digital  skills  (against  the  EU  average  of 
42%). The share of ICT specialists in total employment increased and it is now close to the 
EU  average  (3,8%  against  EU  average  of  3,9%).  The  share  of  ICT  graduates  in  Spain  also 
increased  and  now  accounts  for  4%  of  all  graduates.  The  share  of  female  ICT  specialists 
remains  stagnant  at  a  mere  1,1%  of  total  female  employment.  In  2019,  Spain  signed  the 
European Declaration on boosting the participation of women in digital. 

Regarding  the  higher  education  offer  of  advanced  digital  skills,  Spain  has  an 
intermediate position. Spain holds a higher proportion of masters’ programs teaching high-
performance  computing  than  the  EU  average  (1,28%  against  1,20%  in  the  EU),  and  data 
science (4,88% against 4,61% in the EU). The penetration rate is however lower than in the 
EU  for  artificial  intelligence  (3,44%  against  3,93%)  and  cybersecurity  (1,52%  against 
1,86%). [22] 

Confinement measures may explain the increase in the use of internet services in Spain 
in 2020, with the country performing above the EU average. People in Spain are keen to 
carry  out  a  range  of  online  activities  in  line  with  the  rest  of  the  EU,  such  as  making  video 
calls, reading news online or using social networks. Compared to the EU average, the highest 
ranked activities are taking online courses and playing music, videos and games online. 

On the integration of digital technology, Spain ranks 13th among EU countries in DESI 
2020.  Spanish  businesses  take  advantage  of  the  opportunities  presented  by  digital 
technologies  in  line  with  the  EU  average,  as  43%  of  businesses  have  an  electronic 
information  sharing  system  in  place  (against  the  EU  average  of  34%)  and  9%  of  Spanish 
businesses access big data analysis (against 14%). Almost one third have at least two social 
media accounts to promote their products and services and 22% of companies use the cloud 
(26% in the EU). Finally, 24% of SMEs sell online (above the EU average of 17%), though 
only  7%  of  all  SMEs  sell  across  borders  to  other  EU  countries  and  10%  of  turnover  is 
generated by online sales. 

The  adoption  of  new  digital  technologies  will  provide  benefits  in  many  sectors  of  the 
Spanish economy. Spain stands to benefit greatly from the digital transformation if all SMEs 
and  micro-enterprises  adopt  the  use  of  new  technologies  in  their  business  activities. 
According  to  the  DESI  2020,  measures  to  include  digitisation  and  embrace  AI  and  other 
emerging technologies can boost the innovation capacity of the Spanish economy, driven by 
SMEs.  

[22] Righi et al., 2020. 

20 

 
 
                                                 
Spain ranks 2nd in the EU on digital public services in DESI 2020, well above the EU 
average. Spain rose by two positions in the 2020 ranking compared to the previous year. This 
is  the  chapter  in  which  the  country  performs  best.  Indicators  show  a  high  level  of  online 
interaction between public authorities, citizens and businesses. Spain performs very  well on 
the  open  data  indicator,  with  94%  of  the  maximum  score.  82%  of  Spanish  internet  users 
actively engage with e-government services, 6 percentage points more than the previous year. 

Graph  2.3.2:  Performance  of  Spain  in  the  Digital  Economy  and  Society  Index  (DESI 
2020)  

Note: EU aggregate corresponds to EU28, based on 2020 DESI report. 

21 

 
 
 
Box  2.3.3:  Progress  towards  the  Sustainable  Development  Goals  and  the  four 
Strategy
Annual 
dimensions 

Sustainable  Growth 

underpinning 

the 

The  objectives  of  the  Sustainable  Development  Goals  (SDGs)  have  been  integrated  in  the 
European  Semester  since  the  2020  cycle.  This  integration  provides  a  strong  commitment 
towards sustainability in coordination with the economic and employment policies of the EU. 
In  that  respect,  this  section  outlines  Spain’s  performance  with  respect  to  the  SDGs  with 
particular  focus  on  the  four  dimensions  underpinning  the  2021  Annual  Sustainable  Growth 
Strategy  and  in  relation  to  its  relevance  to  the  RRP  (green  transition,  fairness,  digital 
transition  and  productivity,  and  macroeconomic  stability),  indicating  possible  areas  where 
investments and reforms in line with the objectives of the Facility could further accelerate the 
progress on the SDGs. 

Green Transition 

Spain has  made progress  on almost all SDGs  related to  the green transition.  Progress 
has been recoded especially for SDG 13 “Climate action”, where Spain has reduced its GHG 
22 

 
 
 
 
emission  intensity  of  energy  consumption  by  17%  between  2000  and  2018,  above  the  EU 
average  of  15%.  This  is  also  reflected  in  the  increase  of  the  share  of  renewable  energy  in 
gross final consumption to 18,4% in 2019. Also for SDG 14 “Life below water”, Spain shows 
good progress: in  coastal  bathing sites  with  excellent  water quality  as a share of  all coastal 
bathing  sites,  Spain  has  increased  from  87%  in  2013  to  over 93%  in  2019,  above  the  EU 
average  of  88%  in  2019.  Progress  has  also  been  made  for  SDG  7  “Ensure  access  to 
affordable,  reliable,  sustainable  and  modern  energy  for  all”,  where  Spain  has  increased  its 
share of renewable energy in  gross  final  energy  consumption from  15%  in  2013 to  18% in 
2019.  However,  Spain  remains  below  the  EU  average  of  20%  in  2019.  For  SDG  11 
“Sustainable  cities  and  communities”,  Spain  has  slightly  increased  its  municipal  waste 
recycling  rate  of  32,5%  in  2013  to  35%  in  2019  but  remains  substantially  below  the  EU 
average of over 47%. 

Fairness 

Prior to the pandemic, Spain had made moderate progress on almost all SDGs related 
to  fairness.  Good  progress  has  been  recorded  for  the  SDG  5  “Gender  equality”,  where  the 
gender pay gap has decreased by 3 percentage points between 2014 and 2020, significantly 
faster than in the EU on average and from a level that was already below the EU average. The 
participation  in  early  childhood  education  for  children  aged  between  4  and  compulsory 
school age has increased from 97,1 in 2014 to 97,8% in 2019, above the EU average (SDG 4 
“Quality  education”).  For  SDG  10  “Reduced  inequalities”,  Spain  has  reduced  its  income 
inequality faster than the EU on average from 6,81 in 2014 to 5,94 in 2019, but still remained 
above the EU average in 2019 (4,99). Similarly the share of people at risk of poverty or social 
exclusion  (SDG  1  “No  poverty”)  declined  from  29,2%  in  2014  to 25,3%  in  2019,  but 
remained well above the EU average (20,9%). The decline was mainly driven by the fall in 
the share of people living in households with zero or very low work intensity from 17,1% in 
2014 to 10,8% in 2019, remaining however well above the EU average (8,3%).  

Notwithstanding  the  improvements,  the  current  levels  for  some  indicators  are  among 
the highest in the EU such as for the share of early school leavers (16% vs % 10,1% in 2020 
respectively in Spain  and the EU on average), in-work poverty (12,7% vs 9% in 2019) and 
people at risk of poverty (20,7% vs 16,5% in 2019). 

Digital transition and productivity 

When it comes  to the  digital transition and productivity, progress  is  also  observed for 
most SDGs, although performance in a number of them still remains below the EU. For 
the  SDG  4  “Quality  education”  Spain  made  strong  progress  in  reducing  the  share  of  early 
leavers  from  education  and  training  to  below  20%.  Also  for  SDG  8  “Decent  work  and 
economic  growth”,  Spain  made  progress  in  reducing  the  share  of  young  people  neither  in 
employment nor in education and training (‘NEET’) from 19,4% in 2015 to 17,3% in 2020, 
and in increasing the employment rate from 62% in 2015 to 65,7% in 2020, although most of 
the progress occurred until 2019 before the crisis. Despite the progress Spain still performs 
clearly below the EU average for early leavers, NEETs and the employment rate. For SDG 9 
“Industry, innovation and infrastructure”, Spain slightly increased the share of GDP spent on 
R&D,  but  the  figure  remains  well  below  the  EU  average  of  2%.  Similarly,  Spain  slightly 
increased  the  share  of  personnel  employed  in  R&D  over  the  same  period,  while  remaining 
clearly below the EU average.   

23 

 
 
Macroeconomic stability 

Due to the impact of the COVID crisis, real GDP per capita in Spain was lower in 2020 
compared to 2015 (SDG 8 “Decent work and economic growth). This is reflected in a rapid 
increase of the general government debt to GDP ratio, from 99,3 % in 2015 to 120% in 2020, 
to levels clearly above the EU average (90.7% in 2020).  Investments as a share of GDP have 
grown  up  to  close  to  20%  in  2019,  though  are  still  lower  than  in  the  EU  on  average,  but 
overall  resource  productivity,  measured  as  euros  per  kilogram,  has  risen  strongly  between 
2014  and  2019  from  2,65  to  2,8,  and  is  clearly  higher  than  in  the  EU  on  average  (2,09  in 
2019).  

3.  OBJECTIVES, STRUCTURE AND GOVERNANCE OF THE PLAN 

3.1. Overall strategy of the plan  

The Recovery and Resilience Plan of Spain (the ‘plan’) is  conceived  as a roadmap for 
the recovery and modernisation of the Spanish economy after the COVID-19 crisis. The 
plan broadens the scope of the programme of structural reforms set forth by the government 
in the 2019 Agenda for Change. It has a triple objective to: (i) work as a countercyclical lever 
to  provide  momentum  to  the  economy  in  the  short  term,  (ii)  support  the  large  structural 
transformation of the economy, and (iii) steer the transformation towards a more sustainable 
and resilient growth model. 

The plan will entail a significant volume of public and private investment in the coming 
years. It aims at mobilizing EUR 9,5 billion of non-repayable support primarily concentrated 
in the first three years (2021-2023), to maximize their impact on the rapid reconstruction of 
the economy.  

The  plan  is  structured  around  four  cross-cutting  axis  placed  at  the  centre  of  the 
economic  policy  strategy  from  the  outset:  ecological  transition,  digital  transformation, 
gender equality and social and territorial cohesion. The ten policy areas of the Plan aim at 
driving activity and employment to  modernise the economy  and society  of Spain: (i) urban 
and  rural  agenda,  the  fight  against  rural  depopulation  and  agricultural  development;  (ii) 
resilient  infrastructures  and  ecosystems;  (iii)  a  just  and  inclusive  energy  transition;  (iv)  a 
public  administration  for  the  21st  century;  (v)  modernisation  and  digitalisation  of  the 
industrial  fabric  and  SMEs,  recovery  of  the  tourism  sector  and  promotion  of  Spain  as  an 
entrepreneurial  nation;  (vi)  pledge  to  support  science  and  innovation  and  strengthen  the 
capabilities  of  the  national  health  system;  (vii)  education  and  knowledge,  lifelong  learning 
and capacity building; (viii) the new care economy and employment policies; (ix) promotion 
of the culture and sports industries and; (x) modernisation of the tax system for inclusive and 
sustainable growth. These ten policy areas translate into the 30 components of the Plan. For 
the remainder of the document, Components in the Plan will be named as in Table 3.1 below 
(note: these names are short versions of the full titles used by Spain in the RRP). 

24 

 
 
Table 3.1: Overview of the plan: components and estimated costs 

Policy Area 

Component (shortened names) 

01. Urban and rural agenda, 
combating depopulation and 
developing agriculture 

02. Resilient infrastructures and 
ecosystems 

03. Fair and inclusive energy 
transition 

04. An administration for the XXI 
century 
05. Modernisation and 
digitalisation of the industrial and 
SME fabric, restoring tourism and 
boosting Spain’s entrepreneurial 
nation 
06. A pact for science and 
innovation. Capacity building of 
the National Health System 
07. Education and knowledge, 
continuing training and skills 
development 
08. New care economy and 
employment policies 

09. Boosting the culture and sport 
industry 

10. Modernisation of the tax 
system for inclusive and 
sustainable growth 

TOTAL 

01. Sustainable mobility (urban) 
02. Renovation 
03. Agri-food and fisheries 
04. Ecosystems and biodiversity 
05. Coast and water resources 
06. Sustainable mobility (long-distance) 
07. Renewables 
08. Electricity infrastructure 
09. Hydrogen 
10. Just transition 
11. Public administration 

12. Industrial policy 
13. Support to SMEs 
14. Tourism 
15. Digital connectivity 

16. Artificial Intelligence 
17. Science, technology and innovation 
18. Reform of health system 
19. Digital skills 
20. Vocational training  
21. Education 
22. Care economy, equality and inclusion  
23. Labour market 
24. Cultural industry 
25. Audiovisual 
26. Sports 
27. Prevention of tax fraud 
28. Tax system 
29. Effective public spending 
30. Pension system reform 

Estimated 
costs 
(EUR m) 
6 536 
6 820 
1 051 
1 642 
2 091 
6 667 
3 165 
1 365 
1 555 
300 
4 239 

3 782 
4 894 
3 400 
3 999 

500 
3 457 
1 069 
3 593 
2 076 
1 648 
2 492 
2 363 
325 
200 
300 
- 
- 
- 
- 
69 528 [23] 

[23] This amount is marginally in excess of the plan’s total allocation of EUR 69 512 589 611. The plan’s total 
allocation corresponds to the financial contribution in the form of non-repayable support available to Spain after 
deduction of Spain’s proportional share of the expenses of Article 6(2) of Regulation (EU) 2021/241, calculated 
in accordance with the methodology of Article 11 of that Regulation. 

25 

 
 
 
 
                                                 
The first policy area contains measures to facilitate the urban and rural agenda of Spain 
(Components  1  (Sustainable  urban  mobility),  2  (Renovation)  and  3  (Agri-food  and 
fisheries)).  They  include  measures  to  foster  the  energy  renovation  of  buildings,  including 
social  housing,  and  to  promote  sustainable  mobility  in  urban  and  metropolitan  areas.  The 
COVID-19 pandemic has also highlighted the importance of a robust agri-food system with 
the  highest  environmental  standards,  and  measures  in  the  components  seek  to  reinforce  it, 
boosting also its environmental and digital transformation. 

The  second  policy  area  focuses  on  the  resilience  of  ecosystems  and  infrastructures.  
Attention  is  devoted  to  the  natural  capital  of  Spain  (biodiversity,  coastal  zones  and  water 
resources),  with  a  view  to  strengthening  nature-based  solutions  to  adapt  to  climate  change 
(Components 4 (Ecosystems and Biodiversity) and 5 (Coast and Water Resources)). When it 
comes  to  infrastructures,  the  Plan  is  also  expected  to  support  logistics  and  inter-modality, 
foster  the  development  of  the  European  railway  network  as  well  as  the  digitalisation  and 
sustainability  of  freight  transport  through  measures  in  Component  6  (Sustainable  Long-
Distance  Mobility).  This  will  allow  to  mobilise  large  volumes  of  investment  and  have  a 
structural impact on society and the economy. 

The  third  policy  area  seeks  to  foster  a  decarbonised,  competitive  and  efficient  energy 
sector (Components 7 (Renewables), 8 (Electricity infrastructure), 9 (Hydrogen) and 10 (Just 
Transition)). Its objective is to harness the renewable energy potential of Spain and existing 
value  chains  relevant  for  competitiveness.  It  should  also  promote  the  development  of  fast-
growing sectors in Spain.  

The  aim  of  the  fourth  policy  area  is  to  modernise  the  public  administration  of  Spain 
the  modernisation  of 
(Component 11  (Public  administration)).  It  mostly  aims  at 
administrative processes, including via the digitalisation of the administration, as well as the 
energy  transition  of  its  infrastructure  and  fleets  of  vehicles.  Measures  strengthening  the 
public procurement framework  and coordination between levels  of  government, as well the 
introduction of an ex-ante public policy evaluation, have also been included. Finally, it also 
introduces  measures  to  improve  recruitment  for  civil  servants  and  to  reduce  the  share  of 
temporary workers in the public sector.  

The  fifth  policy  area  should  contribute  to  the  modernisation  of  the  industry-services 
ecosystem in Spain (Components 12 (Industrial Policy), 13 (Support to SMEs), 14 (Tourism) 
and  15  (Digital  Connectivity)).  It  will  seek  to  accelerate  the  digitalisation  and  energy 
transition of industry in Spain, amongst others through strategic projects affecting the whole 
value chain in certain areas. Some of the actions will prepare the ground for firms to be able 
to take part in planned IPCEIs. The aim is to promote services at the forefront of innovation 
and  technological  development  and  first  industrial  deployment  in  key  areas  such  as  next 
generation  cloud  infrastructure  and  edge  services,  microelectronics,  secure  satellite 
communications  and  automotive  batteries.  SMEs  are  the  focus  of  several  measures  in  this 
policy area, given their importance in Spain. Measures to improve the business environment, 
including through a more efficient justice system, are also envisaged. There is a strong focus 
on  supporting  the  competitiveness  of  SMEs.  Measures  to  support  the  modernisation  of  the 
tourism industry are part of this policy area. 

The  sixth  policy  area  focuses  on  science  and  innovation  in  general,  notably  in  some 
strategic  determinants,  such  as  artificial  intelligence,  and  it  promotes  reforms  and 
26 

 
 
investments  in  the  health  system  (Components 16  (Artificial  Intelligence),  17  (Science, 
technology and innovation) and 18 (Reform of the health system)). It should enable Spanish 
firms  and  researchers  to  participate  more  actively  in  a  stronger  pan-European  research 
system.  The  impulse  given  to  research  and  innovation  should  underpin  and  accelerate  the 
modernisation  of  production  processes.  First,  through  the  incorporation  of  existing 
technologies  to  incremental  innovation  and  an  increase  in  competitiveness  and  intangible 
assets, but also through the launch of innovation processes with a truly disruptive perspective. 
Measures  also  aim  at  rendering  the  national  health  system  more  resilient  to  ensure  the 
efficient response during shocks and address more systemic challenges which the COVID-19 
pandemic highlighted.  

The seventh policy area seeks to strengthen talent and skills at all levels in Spain, with a 
particular  focus  on  digital  skills  and  vocational  education  and  training  (VET),  which 
are  key  for  the  green  and  digital  transitions  (Components 19  (Digital  Skills),  20 
(Vocational  Training)  and  21  (Education)).  It  also  seeks  to  promote  activity  in  the  areas  of 
skills transfer and training.  

The  eighth  policy  area  puts  forward  proposals  to  address  the  high  structural 
unemployment  rate  and  segmentation  among  workers  and  to  reduce  child  poverty 
(Components 22 (Care Economy, Equality and Inclusion) and 23 (Labour market)). The set 
of  measures  envisage  to  address  duality  and  to  reduce  adjustments  that  seek  to  cope  with 
adverse economic situations through job  destruction,  in  an attempt to  preserve  employment 
and fight precariousness. The definition of its detail has been explicitly left open, with a view 
to  leaving space for the  agreement  and endorsement by social  partners. A reform  of family 
support aims at improving protection and material support (in cash and in kind) for families, 
with a view to reducing child poverty. Finally, another reform aims at modernising other non-
contributory social benefits to improve their protection and activation roles. 

The ninth policy area seeks to boost the culture, audiovisual production and videogames 
and sports sector, which pay an important contribution to economic activity and to the well-
being  and  health  of  persons  (Components 24  (Cultural  industry),  25  (Audiovisual)  and  26 
(Sports)). Advantage is taken in these fields of the opportunities brought by digitalisation. 

Finally, the tenth policy area envisages a comprehensive reform of the tax system with a 
view to increasing revenues and decreasing expenditure in the form of tax rebates. This 
is done to regain fiscal sustainability and sustain investments put in motion with the support 
of the RRF, while improving the fairness of the system and fostering environmental taxation. 
It  also  aims  at  reforming 
the  Toledo  Pact 
recommendations,  which  benefit  from  a  broad  parliamentary  consensus  (Components  27 
(Preventing  Tax  Fraud),  28  (Tax  system  reform),  29  (Effective  Public  Spending)  and  30 
(Pension System Reform)). 

the  pension  system  by  building  on 

The plan contains 102 reforms and 109 investments. As regards timing, the plan foresees 
that practically all reforms will be adopted and implemented within the timespan 2021-2023. 
As regards investments, while those envisaged under five components will be fully delivered 
by 2023, for the remaining components with investments (21) a part of the investments will 
be fully implemented after that date.  

27 

 
 
 
 
3.2. Implementation aspects of the plan 

Consistency with other programmes 

The Plan of Spain provides detailed justification for its consistency with the objectives 
and priorities of other initiatives, such as the National Reform Programme of Spain, the 
European  Digital  Agenda  and  the  National  Energy  and  Climate  Plan.  While  no 
information  is  provided  on  the  Youth  Guarantee  implementation  plans,  there  are  no 
indications in the information provided that indicate that inconsistencies would arise. 

As  regards  the  Multiannual  Financial  Framework 2021-2027,  the  Partnership 
Agreement  with  Spain  and  the  Operational  programmes  to  be  developed  for  the 
implementation  of  the  Structural  Funds  are  still  at  very  preliminary  stages  of 
preparation. The RRP stipulates that their structure shall complement the projects supported 
by  the  RRF  to  optimise  the  use  of  all  the  European  funds  allocated  to  Spain.  This  is 
particularly relevant for areas where investments that will be kick-started with RRF support 
could  at  a  later  stage  benefit  from  support  under  ERDF  and  ESF+  in  order  to  ensure  their 
impact  in  the  long-term,  such  as  the  creation  of  new  places  in  VET  or  early  childhood 
schooling.  Finally, the plan indicates that most regions  have prepared or  updated their own 
strategic investment plans, which appear to be broadly aligned with the 30 components of the 
RRP. Spain will neither use RRF funds for support under the Technical Support Instrument, 
nor to contribute to its national compartment under the InvestEU programme.  

Consistency  with  the  challenges  and  priorities  identified  in  the  most  recent  euro  area 
recommendations 

The  plan  of  Spain  is  aligned  with  the  Commission  Recommendation  for  a  Council 
Recommendation on the economic policy of the euro area, which will set out the general 
policy  framework  for  Member  States  and  their  respective  Recovery  and  Resilience 
Plans [24]. 

 

In  relation  to  recommendation 1  to  ensure  a  policy  stance  which  supports  the 
recovery, measures in the RRP are expected to continue to mitigate the impact of the 
crisis  and  trigger  recovery.  In  the  medium  term,  the  commitment  to  support 
investment  and  restore  the  sustainability  of  public  finances  will  come  will  come 
notably through measures in  Components 28 (Tax system reform)  and 29 (Effective 
Public  Spending),  which  aim  to  strengthen  the  fiscal  system  and  improve  the 
efficiency of public spending, respectively. The modernisation of public procurement 
envisaged in Component11 (Public Administration) of the plan can also play a role in 
this respect.  

[24] Pending final adoption by the Council, after endorsement by the European Council. The text agreed by the 
Eurogroup  on  16  December  2020  is  available  at:  https://data.consilium.europa.eu/doc/document/ST-14356-
2020-INIT/en/pdf. 

28 

 
 
                                                 
  With respect to recommendation 2 to improve convergence, resilience and sustainable 
and  inclusive  growth,  reforms  and  investments  in  the  plan  are  expected  to  support 
productivity  and  better  functioning  markets  and  public  administrations.  This  should 
foster  private  investment  to  address  the  recovery  and  the  twin  green  and  digital 
transition.  The  plan  also  shows  commitment  to  deepen  the  Internal  Market  in  its 
Component 13 (Support to  SMEs), including the  digital  one through Component  15 
(Digital  Connectivity).  In  parallel,  efforts  will  be  made  to  correct  labour  market 
segmentation in Component 23 (Labour market reform), to match the skills of human 
capital through the modernisation of education and training in Components 20 (VET) 
and 21 (Education), and to promote effective active labour market policies across the 
national territory in Component 23 (Labour market reform). This is to be done within 
the  framework  of  social  dialogue  and  with  the  broadest  possible  consensus,  with  a 
view  to  ensuring  that  reforms  are  effective  in  the  medium  and  long  term.  Further 
reforms  of the tax system  are planned under Component 28 (Tax reform system) of 
this Plan to move towards greener taxation. 

  When it comes to recommendation 3 to strengthen national institutional frameworks, 
measures  have  been  taken  to  simplify  administrative  procedures  for  the  efficient 
absorption of European funds, in particular those of the RRF. The Plan also provides 
for measures to modernise and digitalise public administrations in its Component 11 
(Public  Administration),  particularly  in  the  areas  of  health,  justice  and  public 
employment  services.  In  the  area  of  business  climate,  reforms  envisaged  as  part  of 
Component 13 (Support to  SMEs) can help  remove unnecessary or disproportionate 
administrative  barriers  to  business  creation  and  growth.  They  can  also  facilitate 
business restructuring processes through amendments to the insolvency framework.  
In  relation  to  recommendation 4  to  ensure  macro-financial  stability,  the  positive 
impact  of the plan on economic resilience and long-term fiscal  sustainability should 
come through fiscal adjustments foreseen in Components 28 (Tax reform system), 29 
(Effective  public  spending)  and  30  (Pension  system  reform),  in  addition  to  the 
increase in potential growth resulting from the implementation of the plan itself. 

 

National arrangements for the implementation of the plan 

The  national  arrangements  for  the  implementation  of  the  plan  have  been  set  out  in 
Royal  Decree-Law  36/2020  of  30  December  approving  urgent  measures  for  the 
modernisation  of  the  public  administration  and  the  implementation  of  the  Recovery 
Plan [25].  A  Commission  for  Recovery,  Transformation  and  Resilience,  which  gathers  all 
Ministers competent for the plan, has been set up and will be chaired by the President of the 
Government.  The  Deputy  Ministers  for  Economic  Affairs  and  Business  Support,  Finance, 
Budget  and  Expenditure,  Social  Rights,  the  Secretary  General  for  European  Funds,  and  the 
Secretary General for Economic Affairs and G20 of the Cabinet Office of the Prime Minister 

[25] https://www.boe.es/diario_boe/txt.php?id=BOE-A-2020-17340 (hereafter ‘Royal Decree-Law 36/2020’). 

29 

 
 
                                                 
will also take part in it. This Commission has established the general policy guidelines for the 
development and implementation of the Recovery Plan and shall monitor its implementation. 
Its  work  will  be  assisted  by  a  Technical  Committee  of  20  members  of  the  public 
administration chaired by the Secretariat-General for European Funds.  

A newly set up Secretariat-General for European Funds within the Ministry of Finance 
will  be  the  responsible  authority  for  the  plan  vis-a-vis  the  European  Commission. 
Together  with  a  new  Directorate-General  for  the  Recovery  and  Resilience  Facility,  the 
existing Directorate-General for European Funds, which has gained experience over decades 
in  the  management  of  European  Funds,  will  also  be  part  of  this  Secretariat-General.  This 
authority will be key in monitoring the submission of payment claims, which will be based on 
the achievement of milestones and targets. While the Ministry responsible for each measure 
will be in charge of taking action to achieve the related milestones and objectives in line with 
the budgeted resources, the Secretariat-General for European Funds will be the body drawing 
up  the  requests  for  payment  to  the  European  Commission.  Each  payment  request  shall  be 
accompanied by a management declaration based on reports issued by the bodies responsible 
for  the  components.  In  addition,  the  General  Comptroller  of  the  State  Administration 
(Intervención  General  de  la  Administración  del  Estado  -  IGAE)  will  carry  out  checks  to 
certify the achievement of milestones and objectives, as well as the results achieved. Funds 
allocated  to  the  implementation  of  the  plan  will  be  included  in  the  budget  of  the  central 
government.  Spain  will  have  in  place  a  system  capable  of  downloading  all  information 
required  in  accordance  with  Article 22(2), point  (d),  of  the  RRF  Regulation,  should  the 
Commission request it. 

Arrangements  have  been  set  up  to  involve  key  actors  to  implement  the  plan.  A  new 
Sectoral Conference for the plan is set up with the aim of channelling cooperation between 
regions,  local  entities  and  central  government  to  implement  the  plan.  As  regards 
parliamentary  scrutiny,  Article 22  of  Royal  Decree-Law 36/2020  provides 
the 
government  shall  report  quarterly  on  the  progress  of  the  Recovery,  Transformation  and 
Resilience Plan to the Joint Parliamentary Committee for the European Union. 

that 

Gender equality and equal opportunities for all 

The  RRP  of  Spain  has  a  strong  focus  on  gender  equality,  which  is  one  of  the  cross-
cutting axes guiding the Spanish recovery process, alongside the  green transition,  digital 
transformation,  and  social  and  territorial  cohesion.  Spain  describes  existing  national 
challenges in  terms  of  gender equality, including whether they result from  the pandemic or 
are  more  structural,  and  presents  the  expected  impacts  of  the  plan  on  gender  gaps 
(employment, pay, digital skills). The plan describes to a lesser extent challenges related to 
equal  opportunities  for  all.  It  follows  a  dual  approach:  on  the  one  hand,  it  encourages  the 
development  of  processes  that  incorporate  gender  equality  and  equal  opportunities  for  all, 
such as data collection, inclusion of equality considerations in public procurements, calls for 
public tenders or consultations. On the other hand, the plan also assesses the extent to which 
and  how  each  component  contributes  to  these  equality  objectives.  The  assessment  of  the 
contribution of the plan to address existing challenges is contained in Section 4.3.  

30 

 
 
Consultation process 

The  plan  includes  a  summary  of  outreach  efforts  carried  out  to  prepare  the  plan. 
Article 18(4), point (q), of the Recovery and Resilience Regulation stipulates that RRPs shall 
include  a  summary  of  the  consultation  process  carried  out  for  their  preparation  and 
implementation. The objective of the consultation is to improve the quality of the RRPs and 
enhance  transparency,  as  well  as  to  ensure  the  effective  implementation  of  reforms  and 
investments.  While  RRPs  are  prepared  at  national  level  for  coordination  and  coherence, 
ensuring national ownership is key for their effectiveness, which is assessed in Sections 4.7 
and 4.8. 

Several targeted consultations for the preparation of the plan have taken place in Spain.  
Spain has not carried out a public consultation on the plan as a whole. Instead, it has opted for 
targeted  consultations  that  focused  on  certain  measures  or  policies.  Several  consultations 
have  gathered  input  on  specific  measures  from  social  partners  and  stakeholders,  including 
potential  beneficiaries  of  the  plan.  With  regards  to  involving  the  Parliament,  Article 22  of 
Royal  Decree-Law  36/2020  of  30  December  on  the  implementation  of  the  Recovery, 
Transformation and Resilience Plan, provides that the Government shall report quarterly on 
the progress of the Recovery, Transformation and Resilience Plan to the Joint Parliamentary 
Committee  for  the  European  Union.  Two  hearings  were  held  with  that  Committee  on  29 
January  and  25  February  2021,  with  the  aim  of  providing  information  on  the  plan  and  of 
providing a space for discussion with the other parliamentary groups. A summary of the plan 
was presented by the Prime Minister and debated in Parliament on 14 April 2021. [26] 

Ownership of the plan by regions will be key for effective delivery, since they play a key 
role in the design and implementation of many policies and investments. The Regulation 
recognises  regional  and  local  authorities  as  key  partners  to  implement  reforms  and 
investments. In this regard, sectoral conferences are the mechanism where representatives of 
central  and  regional  governments  competent  for  a  given  area  meet  to  cooperate.  The  new 
sectoral  conference  for  the  Recovery  and  Resilience  Facility  has  met  for  its  set-up 
(21 January),  and  to  have  the  plan  to  be  submitted  to  the  Commission  presented  to  it 
(19 April). The RRP submitted on 30 April explains that sectoral conferences responsible for 
individual  sectors  have  discussed  several  specific  measures  of  the  plan.  A  more  active 
involvement  of  the  regions  could  facilitate  an  effective  implementation  of  reforms  and 
investments. When it comes to the more than 8 000 local authorities, they have been included 
in  the  dialogue  through  their  representative  body,  the  Spanish  Federation  of  Municipalities 
and  Provinces.  This  Federation  participates  in  the  Sectoral  Conference  of  the  Recovery, 
Transformation  and Resilience Plan. The specific input  of local  authorities for measures on 
mobility  was  sought  in  ad  hoc  meetings  and  through  three  specific  calls  for  expressions  of 
interest. 

[26] See Diario de Sesiones Congreso de los Diputados, Pleno y Dip. Perm., núm. 94, 14 April 2021 

31 

 
 
                                                 
Social  partners  and  other  stakeholders,  including  individual  companies  and  experts, 
have given views on specific measures. A dedicated Dialogue Table for the RRP was set up 
to  serve as a  forum  for the government  and social partners to  meet  to  consult  and monitor. 
Furthermore,  a  number  of  legislative  reforms  envisaged  as  part  of  Component  23  (Labour 
Market)  of  the  plan  are  subject  to  the  social  dialogue  process  and  the  description  of  their 
detail has been left open to preserve that process. As regards the consultation of business on 
investments to be made, Spain has used calls for expressions of interest. Various Ministries 
have made at least nineteen calls for expressions of interest with a common and coordinated 
pattern  (see  Table 4.8.1).  Calls  have  enabled  economic  actors  to  identify  transformative 
projects. The different Ministries have collected a wide range of proposals that will serve as 
basis  for  strategic  projects  to  be  supported  by  the  plan.  Since  the  calls  are  addressed  to 
potential beneficiaries, it is important that competition is not distorted in the subsequent calls 
for grants that may follow the specific projects to be defined. Finally, several fora of experts 
and advisory councils have provided input too. 

Digital security self-assessment 

Spain has  provided a security self-assessment  for investments in digital capacities and 
connectivity. In Component 15 (Digital Connectivity) of the plan, Spain explains that, as part 
of the two reforms envisaged under the component, it will adopt the recommendation of the 
European  Commission  on  Connectivity [27]  and  the  law  on  the  requirements  to  ensure  the 
security of 5G electronic communications networks and services, which will include the key 
recommendations of the European Commission Communication of 29 January 2020 “Secure 
5G  deployment  in  the  EU  —  Implementation  of  the  EU  toolbox” [28]).  For  investments  in 
data  spaces,  Spain  explains  that  the  security  assessment  will  align  to  the  evolving  work 
programmes of the European Union on cybersecurity certification, as laid down in Regulation 
(EU) 2019/881  of  the  European  Parliament  and  of  the  Council  on  ENISA  (European 
Cybersecurity  Agency)  and  on  information  and  communications  technology  cybersecurity 
certification. Strategic measures mentioned in the security self-assessment would need to be 
closely monitored during the implementation of the plan. 

Cross-border and multi-country projects  

The  RRP  of  Spain  includes  measures  that  are  expected  to  contribute  to  progress  on 
existing  or  future  cross-border  or  multi-country  projects.  This  is  the  case  in  transport 
(TEN-T  in  Component  6  (long-distance  sustainable  mobility)).  There  are  also  cross-border 
projects investments in connectivity foreseen in the Connecting Europe Facility 2 (EUR 125 
million  to  improve  digital  connectivity  by  means  of  submarine  cables  in  Component  15 
(Digital  connectivity) and participation in  multi-country projects  in  research and innovation 
research 
(R&I  partnerships 
infrastructures  and  multi-country  projects  for  health  purposes  (The  Genome  of  Europe, 

in  Horizon 2020  and  Horizon   Europe,  pan-European 

[27] C (2020) 6270 
[28] COM (2020)50 

32 

 
 
                                                 
personalised medicine and high security laboratories) in Component 17 (Science, technology 
and  innovation).  Finally,  the  plan  also  includes  measures  that  would  facilitate  the 
participation of Spanish firms in planned cross-border or multi-country projects, including on 
Important Projects of Common European Interest (IPCEIs). These measures relate to projects 
on  renewable  hydrogen  (EUR 300-750  million  in  Component  9  (Hydrogen) [29]),  industrial 
value  chains,  including  the  one  for  the  production  of  electric  vehicles  (EUR 2,5  billion  in 
Component  12  (Industrial  Policy)),  secure  satellites  communications,  next  generation  cloud 
and  edge  computing  and  microprocessors  (EUR   375  million  in  Component  15).  In  this 
context, Section 2.5.3 of the RRP refers in detail to cooperation plans with Portugal, France 
and Italy to advance on specific areas. 

Communication Strategy 

The government is finalising a communication strategy on the plan, including on access 
to  finance  for  businesses  and  citizens.  This  strategy,  which  aims  at  increasing  public 
awareness of the role of the European Union in overcoming the crisis, with a specific focus 
on the contribution  of  youth  to  the European project.  The Communication on the RRF will 
seek to ensure transparency on the reforms and investments envisaged as part of the RRP, as 
well  as  on  progress  towards  meeting  the  milestones  and  targets.  Specific  attention  will  be 
paid to communicating the plan’s contribution to the digital and green transition. Information 
about opportunities will be provided to potential beneficiaries, as well as on the requirements, 
allocation  and  management  of  the  funds.  Finally,  communication  actions  will  also  target 
management  authorities  (including  regions  and 
their 
responsibilities for the management, monitoring and control of funded actions.   

local  authorities)  as  regards 

A specific web site for dissemination of information on the RRP is ready to be launched 
upon adoption of the Council Implementing Decision. In addition, dedicated events will be 
organised  focused  on  communicating  the  general  elements  of  the  plan  and  specific 
components.  Specific  actions  will  also  target  media  focusing  on  communication  of 
opportunities and the development and impact of measures, increasing public awareness more 
generally.  Component  11  (Public  administration)  provides  further  details  regarding  this 
communication strategy. 

State aid 

State aid and competition rules fully apply to the measures funded by the Recovery and 
Resilience  Facility.  Union funds  channelled through the authorities of Member States, like 
the RRF funds, become State resources and can constitute State aid if all the other criteria of 
Article 107(1) TFEU are met. When this is the case and State aid is present, these measures 
must be notified and approved by the Commission before Member States can grant the aid, 
unless those measures are covered by an existing aid scheme or comply with the applicable 
conditions  of  a  block  exemption  regulation,  in  particular  the  General  Block  Exemption 

[29] Depending on use of the budget line allocated to Component 9 (Hydrogen) by other investments. 

33 

 
 
                                                 
Regulation (‘GBER’) declaring certain categories of aid compatible with the internal market 
in  application of Articles 107 and 108 TFEU [30]. When State aid  is  present  and it requires 
notification, it is the duty of the Member State to notify State aid to the Commission before 
granting the aid. In this respect, the State aid analysis carried out by Spain in the recovery and 
resilience plan cannot be considered a State aid notification. In as far as Spain considers that 
a specific measure contained in the recovery and resilience plan entails de minimis aid or aid 
exempted  from  the  notification  requirement,  it  is  the  responsibility  of  Spain  to  ensure  full 
compliance  with  the  applicable  rules.  Measures  in  the  plan  should  also  be  compatible  with 
the EU’s international obligations, in particular under World Trade Organization rules. 

4.  SUMMARY OF THE ASSESSMENT OF THE PLAN 

4.1. Comprehensive  and  adequately  balanced  response  to  the  economic  and  social 

situation  

The Plan explains in detail how it addresses the six pillars of Article 3 of the Recovery 
and Resilience Facility Regulation, namely: (i) green transition, (ii) digital transformation, 
(iii)  smart,  sustainable  and  inclusive  growth,  (iv)  social  and  territorial  cohesion,  (v)  health 
and  economic,  social  and  institutional  resilience,  and  (vi)  policies  for  the  next  generation. 
Table  4.1 below summarises the coverage of each of the components in the Spanish RRP to 
one or more of the six pillars. Spain submitted its National Reform Programme on 30 April 
2021. The information provided in the National Reform Programme is being considered and 
jointly assessed in this Staff Working Document together with the Recovery and Resilience 
Plan.

[30] Commission Regulation 651/2014, OJ L 187, 26.6.2014, p. 1. 

34 

 
 
                                                 
Table 4.1. Coverage of the six pillars of the Facility by the Spanish RRP components 

Green 
transition 

Digital 
transform
ation 

Smart, 
sustainable 
& inclusive 
growth 

Social and 
territorial 
cohesion 

Health, 
and 
economic, 
social and 
institution
al 
resilience 

Policies 
for the 
next 
generati
on 

● 

○ 

● 

● 

● 

● 
● 

● 
● 

01. Sustainable urban 
mobility 
02. Renovation 
03. Agri-food and 
fisheries 
04. Ecosystems and 
biodiversity 
05. Coast and water 
resources 
06. Sustainable long-
distance mobility  
07. Renewable energy 
08. Electricity 
infrastructure 
● 
09. Hydrogen 
● 
10. Just transition 
11. Public administration  ○ 
● 
12. Industrial policy 
13. Support to SMEs 
14. Tourism 
15. Digital connectivity 
16. Artificial Intelligence 
17. Science, technology 
and innovation 
18. Reform of health 
system 
19. Digital skills 
20. Vocational training  
21. Education  
22. Care economy, 
equality and inclusion  
23. Labour market 
reform 
24. Cultural industry 
25. Audiovisual 
26. Sports 
27. Prevention of tax 
fraud 
28. Tax system reform 
29. Effective public 
spending 
30. Pension system 

○ 

○ 

○ 

● 

○ 

○ 

○ 

○ 

○ 

○ 

● 

● 
● 
● 
● 
● 
● 

○ 

● 
○ 
○ 
● 

○ 

○ 
○ 
○ 

○ 

● 

○ 

○ 
○ 

○ 
○ 
● 
● 
● 
● 
● 
● 
● 

○ 
○ 

● 
● 

35 

○ 

● 
○ 

○ 

○ 

○ 

○ 

● 
○ 

○ 
● 
● 

○ 
○ 
● 

● 

● 

○ 

○ 

○ 

● 
● 
● 
○ 

○ 

● 

● 

● 
● 
● 

● 

● 

○ 
● 

● 
● 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
  
  
  
  
 
reform 
Key:  “●”  investments and reforms of the  component  significantly contribute to  the pillar; “○” the component 
partially contributes to the pillar 

The  Plan  proposes  an  appropriate  overall  balance  of  reforms  and  investments 
addressing  the  six  pillars,  reflecting  the  plan’s  total  financial  allocation  as  well  as  the 
challenges the country faces. The green and digital pillars contributions are very significant 
in  terms  of  reforms  and  investments  put  forward.  This  reflects  the  substantial  allocation 
foreseen  in  the  plan  for  the  green  and  digital  transition  (respectively,  39,7  %  and  28,2%). 
Most  components  contribute  to  smart,  inclusive  and  sustainable  growth.  Seventeen 
components  contribute  to  the  social  and  territorial  cohesion  in  the  ways  described  below. 
Eleven components support health, economic, social and institutional resilience. In addition, 
eight components support the policies for the next generation. 

Green transition 

The  first  ten  components  of  Spain’s  RRP  focus  on  supporting  the  green  transition, 
including biodiversity, with a total estimated cost of EUR 31,2 billion, which to a large 
extent contributes to the climate change objectives. This amount represents almost half of 
the total RRF allocation for Spain in the form of non-repayable financial support of EUR 69,5 
billion.  Of  these  EUR 31,2  billion,  EUR  13,2  billion  are  allocated  to  sustainable  mobility; 
EUR   6,8  billion  earmarked  to  energy  renovations  and  construction  of  buildings  (an 
additional  EUR  1  billion  for  energy  renovation  in  public  buildings  under  Component  11 
Public  administration,  and  over  EUR  150  million  to  upgrade  existing  sports  facilities); 
EUR 6,1  billion  to  infrastructure,  renewables  and  green  technologies  (including  hydrogen); 
EUR 2,7 billion to agri-food, fisheries, biodiversity and ecosystems; almost EUR 2,1 billion 
to  water management  and coastal protection;  and EUR 300 million  to  the just transition.  In 
addition,  EUR 850  million  are  allocated  to  waste  management  and  the  circular  economy  in 
Component  12  (Industrial  Policy).  Certain  measures  in  some  other  components  also 
contribute to the green transition. The contribution of these measures to the green transition is 
explained in detail in Section 4.5. 

Digital transformation 

The Spanish RRP includes ten components that significantly contribute to the pillar of 
digital  transformation.  This  is  complemented  by  another  eleven  components  that  partly 
contribute to this pillar. Digital measures are included in the majority of the components of 
the Spanish plan reflecting the broad and cross-cutting nature of the envisaged digitalisation 
efforts.  Digital  transformation  is  expected  to  be  one  of  the  key  drivers  of  growth  and 
productivity in Spain during the coming years. The contribution of the different measures is 
explained in detail in Section 4.6 below. 

Smart, sustainable and inclusive growth 

Several  measures  spread  across  different  components  aim  to  strengthen  Spain’s 
competitiveness  and  productivity,  notably  for  SMEs,  as  well  as  to  improve  R&D  and 
innovation.  The  competitiveness  of  SMEs  and  their  digitalisation  are  supported  by 
Component  13  (Support  to  SMEs)  (EUR 4,9  billion).  Several  reforms  seek  to  enhance  the 
business  environment,  notably  for  the  very  high  number  of  SMEs  in  Spain.  The  growth  of 
SMEs is promoted through several regulatory reforms that aim to achieve better regulation, 

36 

 
 
and  through  investment  in  entrepreneurship  skills,  capacity  building  and  financial  support. 
Specific  actions  are  expected  to  support  retail  shops  which  have  been  hit  hard  by  the 
pandemic.  The  creation  and  growth  of  highly  innovative  start-ups  will  be  supported  by 
creating a favourable framework, including a start-up law, and through the set-up of a NEXT-
TECH  public-private  fund  to  scale  up  start-ups  in  the  area  of  disruptive  technologies. 
Reforms  will  also  seek  to  tackle  late  payments,  notably  when  they  affect  SMEs  in 
commercial  transactions.  The  plan  includes  a  substantial  investment  in  the  digitalisation  of 
SMEs (EUR 3,5 billion), with the deployment of a programme to adopt basic digital solutions 
and measures targeted at the adoption of advanced technologies by SMEs. Other investments 
to  integrate  artificial  intelligence  and  robotisation  into  the  value  chains  of  SMEs,  and  to 
promote their access to existing supercomputing capacities, are supported by Component 16 
(Artificial Intelligence). Finally, there are actions to support trade and the internationalisation 
firms and to attract foreign investment.  

The  plan  will  seek  to  recover  and  transform  the  tourism  sector,  which  has  been 
particularly affected by the restrictions adopted to fight the pandemic (EUR 3,4 billion). 
The Spanish tourism sector accounted for approximately 12% of GDP before the pandemic. 
Component  14  (Tourism)  contains  specific  measures  targeted  to  increase  the  resilience  of 
tourism-dependent localities (Canary Islands, Balearic Islands, where tourism represents 35% 
of  the  regional  GDP,  as  well  as  in  the  autonomous  cities  of  Ceuta  and  Melilla).  It  also 
contains  actions  to  diversify  touristic  offer  throughout  the  territory.  A  EUR  1.9  billion 
investment is planned to support the transition to a sustainable tourism model, mostly through 
the  implementation  of  sustainability  plans  in  165  various  destinations.  Investments  on 
digitalisation,  energy  efficiency  and  competitiveness  (including  the  rehabilitation  of  50 
historical sites by 2023) are also foreseen.  

The Spanish RRP is also expected to foster the modernisation of the Spanish industry-
services  ecosystem  through  measures  in  Component  12  (Industrial  Policy)  (EUR  3.8 
billion). The objective of the investments will be to digitalise the value chain and to improve 
the  energy  efficiency  of  key  strategic  sectors,  including  the  automotive  sector  and  its 
transition  towards  electric  vehicles  and  the  agri-food,  health,  aeronautics  and  shipping 
sectors.  The  development  of  data  platforms  and  spaces,  as  well  as  advanced  data-driven 
digital  products  and services for the digital  transformation  of the production sector,  will be 
supported  with  a  view  to  increasing  productivity.  There  are  also  measures  to  improve 
efficiency  in  water,  waste,  energy  and  resource  management,  emissions,  and  renewable 
energy within the framework of the circular economy. 

The effectiveness of the System of Science, Technology and Innovation will be promoted 
through  reforms  and  investments  in  Component  17  (Science,  Technology  and 
Innovation) (EUR 3.5 billion), Component 16 (Artificial Intelligence) (EUR 500 million) 
and Component 21 (Education) of the plan (EUR 1,6 billion). Spain will reform the Law 
on Science, Technology and Innovation to enhance the governance of the sector, develop new 
transfer. 
research  careers 
Investments are planned to strengthen the capacity and the infrastructures of R&D&I system, 
to  foster  cooperation  in  R&I  with  the  autonomous  communities,  to  boost  knowledge  and 
technology  transfer,  and  to  introduce  a  new  scientific  career  offering  solid  professional 
development paths to research staff. Investments are planned to digitalise the management of 
R&D&I and in research, human capital, and knowledge transfer. Public-private partnerships 
37 

to  stabilise  professional  prospects  and  foster  knowledge 

 
 
to 

into 

translate  research 

innovation.  Investments  will  also 

will  be  fostered,  notably  in  innovation  projects  with  a  high  technology  readiness  level 
(‘TRL’) 
target  major 
infrastructures  of  the  System  of  Science,  Technology  and  Innovation,  including  Data  and 
Computing  Infrastructures,  to  upgrade  them  to  international  standards.  Specific  plans  are 
expected to focus on the following key priority areas: green transition, health, automotive and 
aerospace.  Spain  also  plans  to  modernise  the  university  system  by  establishing  minimum 
qualitative  standards  for  research  and  to  improve  the  employability  of  graduates  and 
relevance  of  training  to  new  market  needs  driven  by  innovation.  In  this  area,  it  is  worth 
recalling  that  sectorial  support  to  policy  reforms  could  be  provided  by  the  Horizon  Policy 
Support  Facility,  which  gives  Member  States  and  countries  associated  to  Horizon  Europe 
practical support to design, implement and evaluate reforms that enhance the quality of their 
research and innovation investments, policies and systems.  

Social and territorial cohesion 

Social cohesion will be strengthened through measures to address structural weaknesses 
of  the  Spanish 
labour  market,  such  as  the  high  unemployment  and  youth 
unemployment  rates  and  the  widespread  use  of  temporary  contracts.  To  this  end, 
legislative  reforms  envisaged  in  Component  23  (Labour  Market)  seek  to  simplify  the 
contractual arrangements by  reducing the exceptions to  open-ended contracts.  Based on the 
experience  of  short-time  work  schemes,  legislative  reforms  will  also  seek  to  preserve 
employment  through  the  introduction  of  a  flexibility  and  stabilisation  mechanism  that  shall 
provide  companies  with  tools  to  deal  with  adjustments  without  job  destruction,  and  is 
expected  to  reskill  and  upskill  workers  and  hence  facilitate  job-to-job  transitions.  Active 
labour  market  policies  will  be  reinforced,  including  through  a  reform  of  hiring  incentives. 
The Plan also envisages actions to enhance the digitalisation of public employment services 
and  streamlining  the  system  of  non-contributory  unemployment  assistance.  Legislative 
reforms  seek  to  improve  working  conditions  through  the  regulation  of  teleworking,  the 
presumption  of  the  employment  status  of  platform  workers  and  through  changes  in  the 
regulation of subcontracting. Investments aim to foster upskilling and reskilling of workers, 
boost  the  social  economy  and  develop  integration  pathways  for  the  beneficiaries  of  the 
nationwide minimum income scheme. 

The plan is expected to modernise and strengthen social services and inclusion policies 
through measures in Component 22 (Care Economy, Equality and Inclusion) (EUR 2,4 
billion). The plan puts a particular focus on the long-term care model. It seeks to respond to 
an  increasing  demand  for  different  long-term  care  services  due  to  an  ageing  population,  as 
well  as  to  promote  innovation  and  a  people-centred  care  model.  For  the  medium  term,  the 
plan foresees  a national  deinstitutionalisation strategy. The objective is  to  move to  a model 
geared  towards  community  care,  which  would  take  better  account  of  the  needs  and 
preferences  of  people  in  need  of  support,  while  ensuring  in  parallel  support  to  the  families 
caring  for  them  and  cost-efficiency.  Measures  to  promote  innovation  and  the  use  of  new 
technologies should ensure care throughout the territory, better identify needs and improving 
quality.  A  reform  aims  at  modernising  non-contributory  social  benefits  to  improve  their 
protection  and  activation  roles.  The  adoption  of  a  framework  law  to  guarantee  common 
standards on the provision of social services will contribute to reducing disparities relating to 
the type, level and quality of services provided. Furthermore, a new law for the protection of 
families  will  take  into  consideration  different  types  of  family  structures  and  determine 
38 

 
 
entitlements  to  benefits  and  services  on  the  basis  of  their  features  and  income  levels.  The 
reform is expected to reduce child poverty and strengthen protection for families with special 
needs or in vulnerable situations, such as single-parent households, or those at risk of poverty 
or  social  exclusion.  Other  specific  actions  aim  at  supporting  victims  of  gender-based 
violence, and at improving the capacity of the reception system for asylum-seekers and other 
people in need of protection.  

Territorial  cohesion  will  be  reinforced  though  a  better  deployment  of  public  services 
and  infrastructure  throughout  the  territory.  Several  components  specifically  relate  to 
these  objectives.  Component  6  (Sustainable  long-distance  mobility)  will  support  territorial 
cohesion by reinforcing inter-regional sustainable mobility, in particular through investments 
in the European Corridors (EUR 3,2 billion) and the Trans-European Network for Transport 
Program  (EUR  1,8  billion).  Component  15  (Digital  Connectivity)  is  expected  to  reinforce 
territorial  cohesion  through  the  deployment  of  ultrafast  broadband  to  rural  areas  (EUR 812 
million).  Moreover,  measures  in  Component  11  (Public  administration)  will  also  support 
territorial  and  social  cohesion  by  digitalising  key  public  services  and  enhancing  access  to 
them  in  rural  areas.  This  objective  will  also  be  achieved  though  incentives  to  ensure  the 
in  Component  18 
deployment  of  health  sector  workers 
(Reinforcement  of  the  Health  Sector).  Components  20  (Vocational  Training)  and  21 
(Education)  is  expected  to  reinforce  social  and  territorial  cohesion  by  providing  better 
educational opportunities in rural areas through digital means (both described in further detail 
bellow under the policies for next generation pillar). Measures in Components 3 (Agri-food 
and fisheries), 4 (Ecosystems and biodiversity). 5 (Coast and water resources). 6 (Sustainable 
long-distance  mobility)  and  7  (Renewable  energy)  will  support  the  preservation  of  natural 
capital  and  scarce  resources  such  as  water,  as  well  as  to  promote  the  energy  transition  of 
islands. 

throughout 

territory 

the 

Health, and economic, social and institutional resilience  

The  resilience  of  the health  sector  should  be strengthened  by  various  investments  and 
reforms contained in Component 18 (Reform of the Health System) (EUR 1 billion) and 
in other Components such as 17 (Science, Technology and Innovation). The capacities of 
the  health  system  will  be  strengthened  through  investments  in  equipment,  the  professional 
skills  of  its  workforce  and  by  reducing  temporary  employment  in  the  sector.  The  Plan  is 
expected  to  also  ensure  a  more  efficient  consumption  of  medicines  and  medical  devices 
through  legislative  reforms.  The  capacity  of  the  National  Health  System  to  prevent  and 
address potential global health threats such as COVID-19 will be reinforced by strengthening 
the  capacities  for  surveillance,  early  detection  and  a  rapid  response  to  health  crisis  and  by 
investing in epidemiological surveillance systems. Through this component and Component 
26  (Sports),  the  plan  promotes  healthy  lifestyles,  which  should  prevent  sickness  and  delay 
fragility. Finally, a Health Data Center (Data Lake for the health sector) will be established to 
allow  for  big  data  analysis  for  diagnostic  and  treatment  purposes.  This  is  part  of  a  broader 
process to boost the digitalisation of health services, interoperability and networked services 
at  national,  European  and  international  level.  Other  complementary  investments  in 
digitalisation  of  healthcare  are  included  in  Component  11  (Public  Administration)  and  19 
(Digital  skills).  Finally,  innovation  in  the  health  sector  will  be  supported  by  a  EUR  490 
million investment in Component 17 (Science, Technology and Innovation). The investment 
will enhance the strategic capacities and internationalisation of the National Health System, 
39 

 
 
notably  in  what  concerns  personal  medicine,  research  on  ageing,  and  participation  in  the 
multi-country project “The Genome of Europe”. 

The  institutional  resilience  of  Spain  will  be  strengthened  through  reforms  and 
investments  to  enhance  its  public  administration  (EUR 4,2  billion).  Reforms  in 
Component  11  (Public  Administration)  will  relate  to  different  areas,  including  regulatory 
reforms to improve human resources management in the public administration (including to 
reduce  the  number  of  temporary  employees),  the  institutional  architecture  of  economic 
governance, measures  to  strengthen the public procurement framework and additional steps 
to reinforce ex-ante public policy evaluation. The digitalisation of public services has proven 
key  to  establish  support  mechanism  during  the  pandemic.  Under  Component  11  (Public 
administration), Spain plans investments to digitalise the public administration and actions to 
strengthen  the  coordination  between  the  different  levels  of  government.  The  Plan  seeks  to 
digitalise  key  areas  related  to  health,  employment  (public  employment  services),  justice, 
territorial 
social  security  and 
administrations.  It  also  envisages  actions  to  enhance  the  public  sector  cybersecurity 
capacities, which are key to detect and respond to cyberattacks.  

inclusion  policies,  as  well  as 

the  digitalisation  of 

The resilience of the country to face and mitigate the impact of climate change will be 
strengthened  through  measures  to  protect  its  natural  capital  and  react  to  natural 
disasters. For instance,  Component 4 (Ecosystems  and biodiversity) includes a measure on 
the  renewal  and  modernisation  of  the  fleet  of  aerial  firefighting  equipment,  and  the 
improvement  of  means  and  infrastructure  associated  with  the  prevention  and  reduction  of 
damage  due  to  natural  hazards.  Furthermore,  Component  5  (Coast  and  water  resources) 
includes  actions  to  mitigate  flood  risk  through  implementing  the  Coastal  Adaptation  to 
Climate Change Action Plan, improving the safety of dams and reservoirs, and reducing risk 
and damage in case of flooding. 

Finally,  more  effective  public  spending  and  the  modernisation  of  the  tax  system, 
including  to  prevent  fraud,  also  aim  at  supporting  economic  resilience  through 
measures in Components 27 (Prevention of Tax Fraud), 28 (Tax system reform) and 29 
(Effective public spending). These include reforms to strengthen public revenues in the mid-
term  by  combating  the  informal  economy  and  fiscal  fraud,  adapting  taxation  to  the  current 
circumstances and the evolving economy and society, and improving the efficiency of public 
spending.  In  addition,  the  economic  resilience  of  Spain  should  be  reinforced  by  measures 
fostering the employability of people and productivity of firms.  Investments  to increase the 
employability  of  people,  including  vulnerable  groups,  and  enhancing  skills  will  be  key  to 
empower the active population to face a dynamic context (measures in Components 19, 20, 
21  and  23).  Several  other  measures  may  help  strengthening  the  productivity  of  firms, 
especially  SMEs  and  innovative  companies  (see  sub-section  on  smart,  sustainable  and 
inclusive growth). 

Policies for the next generation  

The  Spanish  Plan  highlights  how  the  pandemic  has  particularly  impacted  young 
people's  life  and  work  opportunities.  Uncertainty  about  future  income  is  greater  among 
young people, workers with a temporary contract and those with low incomes. Young people 
have a lower employment rate than the rest of the population and a significantly higher rate of 
individuals without earned income, a key determinant of inequality. The share of temporary 
40 

 
 
contracts in Spain is very high, especially among young people. Young people and temporary 
workers benefited less from short-time work schemes. The pandemic has marked a decrease 
in worked hours (increase in the rate of undesired part time work) and in the duration of their 
contracts.  

Once  the  recovery  is  under  way,  the  rebuilding  of  budgetary  buffers  will  require  an 
effort to which also young generations will be called to contribute, as acknowledged by 
the  plan.  Likewise,  the  ageing  of  the  Spanish  population  will  cause  a  very  substantial 
dependency ratio to be shouldered by the young. Overall, many of the pre-existing challenges 
prior to the pandemic, often exacerbated by the pandemic, especially affect young people: the 
education  system,  labour  market,  housing,  uncertainty  and  instability  of  the  income. 
Challenges such as the ecological transition, and population ageing in a context of low birth 
rates, will have significant consequences on the current and future young generations.  

The Spanish Plan includes reforms and investments particularly addressed to the young 
people in the areas of education, digital skills and the labour market, for approximately 
EUR  9  billion.  Firstly,  it  invests  to  enhance  education  and  digital  skills  at  all  levels. 
Component  21  (Education)  of  the  plan  aims  at  increasing  enrolment  in  early  childhood 
education  and  care  progressively.  For  that  purpose,  the  plan  invests  significantly  in  the 
creation of publicly owned places for child early education and care, with a stated focus on 
children at higher risk of poverty or social exclusion and rural areas. In the area of primary 
and  secondary  education,  the  same  component  aims  at  improving  educational  outcomes  by 
reducing  early  school  leaving  and  high  repetition  rates,  reducing  segregation  in  public 
schools on the basis of the students’ background, and by developing a new curriculum for key 
competences  (including  digital).  The  Plan  also  includes  a  EUR 1,4  billion  investment  to 
complete  the  digitalisation  of  the  Spanish  education  system  through  deployment  of  digital 
systems  in  public  and  publicly  subsidised  schools,  and  through  support  for  the  preparation 
and  revision  of  digital  plans  for  school  centres  and  advanced  digital  skills  for  teachers. 
Finally, Spanish university students find more difficulties than peers in other Member States 
to  find  a  job  and  position  commensurate  with  their  training,  regardless  of  specialization. 
Component  21  (Education)  aims  at  modernising  the  university  system,  by  adapting  the 
organisation of university courses to today’s society and to technological transformation. The 
RRP includes reforms of the selection systems for teaching and research staff (Components 
21  and  17)  and  further  introduces  a  more  performance-based  financing  of  education  and 
research  institutions.  These  measures  should  help  improve  the  quality  of  education.  In 
addition, the plan strengthens the teaching of digital skills and improves distance learning at 
all levels of education. 

By  identifying  the  skills  needed  and  by  increasing  the  Vocational  Training  offer  in 
strategic  sectors,  the  plan  seeks  to  foster  opportunities  for  younger  generations  when 
entering the labour market. The plan intends to make the VET system more dynamic and 
flexible to respond to both present and future skills need of enterprises, including through a 
closer  collaboration  with  businesses.  Component  20  (Vocational  Training)  aims  at 
modernising and strengthening vocational  education and training system (VET), adapting it 
to  support  the  transformation  of  the  economy,  in  particular  in  technical  and  digital  skills. 
Finally,  Component  19  (Digital  Skills)  of  the  plan  also  invests  in  the  training  for  ICT 
specialists through scholarships and through the development of massive online open courses 

41 

 
 
in  cybersecurity.  Artificial  intelligence  and  other  key  emerging  technologies,  which  will 
support young generations in their professional prospects.  

to  reduce 

Targeted  investments  seek  to  improve  the  situation  of  young  workers,  who  are  more 
often  affected  by  precariousness.  Component  23  (Labour  Market)  includes  reforms 
mentioned  above 
temporary  employment,  particularly  salient  for  young 
generations,  and  invests  in  upskilling  and  reskilling  and  an  Action  Plan  against  Youth 
Unemployment (EUR 765 million). The Plan targets  young people through grants for work-
based  training  in  public  school  workshops,  first  professional  experience  in  public 
administration and the recruitment of young researchers. By focusing on recognizing existing 
skills and promoting upskilling towards more intermediate skills, measures in Component 20 
(Vocational  Training)  contribute  to  improve  the  employability  and  job  mobility  of  young 
people with  lower skills.  By setting out  a continuum  of short training  courses/modules that 
can be combined, the possibility of accumulating skills over time enables life-long learning 
according  to  personalized  upskilling  and  re-skilling  paths  that  lead  to  new  certified 
qualifications.  These  measures  intend  to  facilitate  the  youth  integration  into  the  labour 
market,  train  them  towards  future-oriented  sectors  and  offer  reinforced  and  personalized 
support in their active job search.  

In  a  context  of  low  fertility  rates,  the  plan  is  also  expected  to  enhance  young  people’s 
access to adequate housing and childcare.  Access to housing could be facilitated through 
measures in Component 2 (renovation), which includes a EUR 1 billion investment in social 
housing. Expanded day-care facilities for infants under Component 21 (Education) will also 
help  young  couples.  Component  22  (Care  economy,  Equality  and  Inclusion)  and  28  (Tax 
system  reform)  will  review  the  current  system  of  family  benefits  to  increase  coverage  and 
reduce child poverty. 

Conclusion on the assessment of criteria 2.1 of Annex V to the RRF Regulation 

The  Spanish  recovery  and  resilience  plan  contributes  in  a  comprehensive  and 
adequately  balanced  manner  to  all  six  pillars  referred  to  in  Article  3,  considering  the 
specific  challenges  of  Spain  and  taking  into  account  the  financial  contribution.  In 
particular,  the  green  and  digital  dimension  are  very  visible  in  the  plan.  The  full 
implementation  of  the  plan  is  expected  to  contribute  to  a  decisive  impulse  towards  a  more 
sustainable  and  inclusive  growth,  including  by  raising  Spain’s  potential  growth  in  the 
medium  term,  strengthening  the  social  and  economic  cohesion,  the  resilience  of  the 
institutions and the prospects of the next generation.   

Taking into consideration all reforms and investments envisaged by Spain, its Recovery and 
Resilience  Plan  represents,  to  a  large  extent  a  comprehensive  and  adequately  balanced 
response to  the economic and social situation, thereby contributing appropriately to  all six 
pillars referred to in Article 3 of the RRF Regulation, taking the specific challenges and the 
financial  allocation  of  Spain  into  account.  This  would  warrant  a  rating  of  A  under  the 
assessment criterion 2.1 in Annex V to the RRF Regulation.  

4.2. Link with country-specific recommendations and the European Semester  

The RRP of Spain is expected to contribute to addressing a significant subset of challenges 
identified in the relevant country-specific recommendations, including fiscal aspects thereof, 

42 

 
 
addressed  to  Spain  in  the  context  of  the  European  Semester.  Table 4.2.1  at  the  end  of  the 
section presents  the mapping of the selected challenges, the  associated CSRs  and the thirty 
components of the Spanish RRP. 

Public finances and taxation 

The Council issued a CSR to Spain to pursue fiscal policies aimed at achieving prudent 
medium-term  fiscal  positions  and  ensuring  debt  sustainability,  while  enhancing 
investment,  when  economic  conditions  allow for  it  (CSR 2020.1.2).  The  sustainability  of 
public  finances  is  a  challenge  subject  both  to  CSRs  and  the  Macroeconomic  Imbalance 
Procedure (‘MIP’). As explained in Section 2.1, Spain’s already high government deficit and 
debt  ratio  have  risen  further  due  to  the  COVID-19  crisis.  Recovery  and  resilience  plans 
should  provide  a  platform  for  Member  States  to  regain  prudent  fiscal  positions,  once  the 
economic conditions will allow for it. An overall assessment of all the measures in the plan of 
Spain  should  provide  enough  reassurance  that  prudent  fiscal  policies  can  be  pursued  again, 
once  support  from  the  RRF  comes  to  an  end  and  when  the  general  escape  clause  of  the 
Stability and Growth Pact applies again. In this regard, it is worth noting that Article 5 of the 
Recovery and Resilience Facility Regulation  limits  the instances in  which support from  the 
Facility  can  be  used  to  substitute  recurrent  national  budgetary  expenditure  to  duly  justified 
cases.  For  this  reason,  Spain  has  provided  reassurances  about  the  sustainability  of  the 
measures that may result in the creation of entitlements to the national budget, as is shown in 
Section 4.9 below. 

Pension system and long-term fiscal sustainability 

Addressing  effectively  the  sustainability  challenges  embedded  in  the  pension  system 
would  reduce  overall  risks  to  the  sustainability  of  public  finances  in  the  medium  and 
long term. According to the 2021 Ageing Report [31], public pension expenditure is projected 
to  increase  as  a  share  of  GDP  until  2050  and  to  decrease  thereafter.  In  2019,  the  Council 
issued  a  CSR  asking  Spain  to  preserve  the  sustainability  of  its  pension  system 
(CSR 2019.1.4).  Based  on  a  broad  political  consensus,  the  reform  of  the  pension  system 
envisaged  as  part  of  Component  30  (Pension  system  reform)  includes  measures  re-linking 
pensions  to  the  consumer  price  index  on  a  permanent  basis  and  dissociating  initial  pension 
levels from changes in life expectancy. These elements would increase pension expenditure 
in  the  medium  to  long  term,  unless  their  impact  is  sufficiently  offset  by  compensating 
measures.  Various  other  measures  included  in  the  component  seek  to  bring  the  effective 
retirement  age  closer  to  the  statutory  retirement  age,  change  the  contribution  base  for  self-
employed,  increase  the  contribution  period  for  the  calculation  of  pension  benefits  and 
increase  the  maximum  contribution  bases  together  with  the  corresponding  pension  benefit 

[31]  See  European  Commission  (DG  ECFIN)  and  Economic  Policy  Committee  (AWG):  “The  2021  Ageing 
Report  Economic  &  Budgetary    Projections  for  the  EU  Member  States  (2019-2070)”,  European  Economy, 
Institutional  
Paper No 148.  

43 

 
 
                                                 
levels. These measures are expected to partially mitigate the overall impact of the reform on 
fiscal sustainability. In addition, the plan envisages that the labour market reforms (e.g. more 
effective active labour market policies, including for older workers) contribute to increasing 
employment rates, which would also  contribute to  mitigate the fiscal impact  of the pension 
reforms.  

In  the  event  that  offsetting  and  flanking  measures  were  not  sufficient  to  address  the 
CSR  related  to  fiscal  sustainability,  the  overall  fiscal  impact  of  increased  pension 
expenditure would have to be further mitigated by commensurate fiscal adjustments in 
the future. Commitments to reduce expenditure and increase tax revenues are included in the 
tax  reforms  announced  as  part  of  Components  28  (Tax  system  reform)  and  29  (Effective 
public  spending),  and  the  Spanish  authorities  have  committed  to  dates  for  the  delivery  of 
those reforms as part of the milestones and targets of the plan. They are expected to improve 
the budgetary position over time. On this basis, it can be concluded that the plan contributes 
to addressing the CSR on fiscal sustainability. 

Beyond the pension system reform, other reforms in the plan may result in the creation 
of  permanent  entitlements  to  be  borne  by  the  national  budget.  This  is  the  case  of  the 
expansion  of  services  under  the  universal  health  cover  in  Component  18  (Reform  of  the 
Health  System),  certain  reforms  integrating  temporary  staff  as  permanent  one  in  the 
healthcare  sector  also  in  Component  18  (Health  Reform  System),  the  creation  of  publicly 
owned childhood early education places in Component 21 (Education) and new VET places 
in  Component  20  (Vocational  Training).  For  some  of  these  measures,  support  from  the 
European Structural and Investment Funds (‘ESIF’) could alleviate part of the burden on the 
national  budget  so  that  the  investment  can  be  sustained  in  the  medium-term.  The  Spanish 
authorities  have  committed  to  explore  this  possibility  together  with  regions  (who  are 
competent for these policies) with  a view to ensuring a lasting impact of RRF investments. 
This is the case notably for the salaries of teachers for childhood education, as well as for the 
new VET places.  

Fiscal policy and fiscal governance 

Adjustments in key areas of the budget are the most direct tool to ensure that the plan 
contributes  to  regaining  fiscal neutrality  in  the  medium  to  long-term.  Improvements  in 
the efficiency of public spending will be promoted as part of Component 29 (Effective public 
spending), in particular by strengthening the mechanisms for spending reviews. The plan is 
expected to  reinforce the public procurement  framework through the set-up of the  National 
Evaluation Office and the adoption of the National Public Procurement Strategy foreseen in 
Component  11  (Public  administration),  which  had  been  long  delayed.  In  addition,  a 
legislative reform to reinforce the  ex-ante evaluation of public policies envisaged as part of 
Component  11  (Public  administration)  can  contribute  to  a  better  use  of  public  money. 
Component 28 (Tax system  reform) includes a  reform  of the tax system  that seeks to  meet 
expenditure  and  investment  needs.  In  addition  to  making  some  adjustments  to  taxes  with  a 
redistributive  approach,  the  aim  is  to  adapt  the  tax  system  to  the  challenges  arising  from 
digitalisation  and  the  ecological  transition.  Furthermore,  Component  1  (Sustainable  urban 
mobility) envisages the introduction of a revenue system that guarantees the necessary funds 
for  the  conservation  of  the  state  road  network.  Finally,  actions  foreseen  in  Component  27 
(Prevention of tax fraud) seek to prevent new forms of tax fraud, increase the effectiveness of 

44 

 
 
tax  control  and  incentivise  taxpayers’  voluntary  compliance  with  their  tax  obligations. 
Finally,  to  the  extent  that  investments  and  reforms  in  the  plan  are  expected  to  boost  the 
recovery  and  promote  greater  participation  in  the  labour  market,  the  Spanish  authorities 
estimate  that  at  least  800 000  jobs  will  be  created,  which  would  generate  substantial  tax 
revenues.  

In  2019,  the  Council  issued  a  CSR  asking  Spain  to  strengthen  its  fiscal  and  public 
procurement frameworks at all levels of government (CSR 2019.1.2). This CSR sought to 
pursue a more automatic activation of measures to prevent and correct deviations from fiscal 
targets  at  the local  level, and enhance the contribution of the domestic spending rule to  the 
sustainability  of  public  spending.  This  CSR  is  only  partially  addressed  by  the  plan.  The 
activation of the general escape clause of the Stability and Growth Pact at EU level, and of 
rules mirroring that provision of the Pact at national level in Spain, diminished the urgency to 
carry out a review of the institutional framework governing the prudent  management of the 
public  finances  at  the  present  juncture.  Nevertheless,  measures  to  ensure  the  efficiency  of 
expenditure  in  Component  29  (Effective  public  spending)  and  to  strengthen  the  public 
procurement framework in Component 11 (Public administration) can play a positive role in 
strengthening  the  fiscal  frameworks  of  Spain  and  contribute  to  partially  addressing  the 
relevant CSR. 

Health & long-term care 

Efforts are needed to increase the resilience and performance of the health system, and 
some  of  the  measures  foreseen  in  the  plan  are  expected  to  contribute  to  that  goal.  In 
2020,  the  Council  recommended  Spain  to  strengthen  its  health  system’s  resilience  and 
infrastructure 
regards  health  workers,  critical  medical  products  and 
capacity  as 
(CSR 2020.1.2).  The  Commission  has  acknowledged  in  the  past  that  the  Spanish  health 
system  has  been  delivering  good  health  outcomes,  but  the  outbreak  of  the  COVID-19 
pandemic put an unprecedented strain on the system and revealed its vulnerability to shocks. 
These have been detailed in Section 2.2. To address those vulnerabilities, a legislative reform 
in  Component  18  (Reform  of  the  Health  System)  will  improve  the  working  conditions  of 
health  workers,  notably  to  reduce  the  use  of  temporary  contracts.  Measures  in  that 
component,  such  as  a  EUR 796  million  investment  in  high-technology  equipment  in 
hospitals, as well as reforms to extend the portfolio of services offered by the National Health 
System to interventions only partially or not covered previously (such as for dental care, early 
childhood  healthcare,  genomics  and  orthopaedic  and  prosthetic  care),  should  contribute  to 
improve  healthcare  coverage  aligning  services  to  the  needs  of  the  ageing  population  and 
territorial cohesion. Investments to foster the digitalisation of the health system and the use of 
big data and investments in personalised medicine will contribute to innovation.  

The  plan  also  seeks  to  tackle  the  challenge  of  a  rapidly  ageing  population,  which  will 
result  in  increasing  healthcare  and  long-term  care  demands.  Component  18  presents 
plans  for  the  roll-out  of  the  primary  care  reform,  but  Spain  has  not  included  associated 
investments  in  this  area  in  the  plan.  Measures  in  Component  18  (Reform  of  the  Health 
System) and Component 26 (Sports) of the plan will support prevention and health promotion 
measures  which  respond  to  the  demographic  and  epidemiological  shifts  in  the  population. 
The Plan responds to some extent to the increased demand for healthcare and long-term care 
and may help alleviate fiscal sustainability concerns in the future. Cost-effective solutions are 

45 

 
 
necessary  to  ensure  access  to  a  sustainable  healthcare  of  quality  for  all  in  the  future. 
Investments  to  implement  a  cost-efficient  use  of  medicines  and  medical  devices  in 
Component  18  (Reform  of  the  Health  System)  will  contribute  to  that  goal.  Overall,  the 
measures and investments in the plan contribute to address challenges in this CSR. Finally, it 
is  important  to  ensure  that  the  ambitious  primary  care  reforms  are  implemented  with  the 
necessary resources. 

Labour market reforms 

In  2020,  the  Council  issued  to  Spain  a  CSR  to  support  employment  through 
arrangements  to  preserve  jobs,  effective  hiring  incentives  and  skills  development 
(CSR 2020.2.1). Despite years of strong job creation, the Spanish labour market still recorded 
high  levels  of  unemployment  and  labour  market  segmentation  before  the  COVID-19 
outbreak. In 2019, the Council had issued a CSR to Spain to foster transitions towards open-
ended contracts, including by simplifying the system of hiring incentives (CSR 2019.2.3 and 
4). As explained in Section 2.1, the unemployment rate increased in 2020 as a result of the 
crisis,  and  a  further  increase  is  expected  in  2021.  This  is  likely  to  weigh  heavily  on  the 
already  limited  capacity  of  employment  services  to  support  workers  and  employers  and  on 
social services. Recitals to the 2020 CSR explained that the way to recovery should be based 
on  measures  to  support  employment  taken  in  consultation  with  social  partners,  such  as 
gradually phasing-out short-time work schemes, reviewing the system of hiring incentives to 
better  promote  sustainable  forms  of  employment,  notably  for  young  workers,  as  well  as 
through flexibility in working conditions. [32]  

In this context, the plan of Spain contains measures that should contribute significantly 
to  reducing  the  high  share  of  temporary  contracts,  including  in  the  public  sector. 
Component  23  (Labour  Market)  of  the  RRP  envisages  a  reform  of  the  labour  market  that 
should already take place in 2021. The reform will reduce the number of types of contracts to 
three  (open-ended,  temporary  and  training  contract),  as  well  as  the  justifications  that 
employers  may  invoke  to  use  temporary  contracts.  This  should  reduce  the  extended  use  of 
temporary contracts in the private sector. In addition, inspections and sanctions to fight abuse 
of these contracts in certain sectors will be reinforced. Moreover, the plan should contribute 
to  achieve  a  significant  progress  to  reduce  the  share  of  temporary  contracts  in  the  public 
administration  (30%),  where  their  use  is  even  more  prominent  than  in  the  private  sector 
(22%). This is notably the case in health, education and justice. Measures in Component 11 
(Public  administration)  envisage  a  stabilisation  process  for  structural  posts  occupied  by 
temporary staff through calls for public employment, as well as regulatory changes to avoid 
abuses  in  the  use  of  short-term  contracts  in  the  administration  and  changes  to  allow  for  a 
better planning of staff needs. The reform of the statute of health workers in Component 18 
(Reform  of  the  Health  System)  envisages  the  conversion  of  temporary  contracts  into 
permanent ones for staff who have been performing tasks under a fixed-term contract over a 

[32] 2020 CSRs to Spain, recital 20. 

46 

 
 
                                                 
given  length  of  time.  Together,  these  measures  are  expected  to  significantly  contribute  to 
reducing the share of temporary contracts. 

A new mechanism for  flexibility and stability aims at  enabling employers to deal  with 
adjustments  in  the  cycle  without  job  destruction,  through  the  use  of  structural  short-
time  schemes.  Short-time  work  schemes,  which  had  existed  in  Spain  for  long,  were  used 
extensively  during  the  crisis  to  preserve  jobs  and  income  of  workers  in  the  most  affected 
sectors [33]. These schemes have played a key stabilising role by absorbing a large share of 
the  market  income  shock  for  households [34].  Building  upon  the  experience  of  short-time 
work  schemes,  a  new  permanent  mechanism  for  internal  flexibility,  job  stability  and 
reskilling of workers in transition will be introduced through a legislative reform envisaged in 
Component 23 (Labour Market) with a view to containing levels of unemployment over the 
years to come. Workers under the new scheme should benefit from training to help them cope 
with  technological  or  demand  innovations  and  facilitate  reallocation  between  sectors  and 
firms,  where  adjustments  may  require  them.  The  cost  of  the  new  short-time  work  schemes 
will be financed through a tripartite fund to which employers, employees and the State will 
contribute. The Spanish government is intending to seek further support from the RRF (in the 
form of a loan) to partially finance the scheme. By the time of the adoption of the reform at 
the  end  of  2021,  an  assessment  of  the  funding  arrangement  of  the  tripartite  fund  included 
therein will be completed with a view to ensuring fiscal sustainability in the medium to long 
term. The assessment will consider different options and scenarios.  

The  Plan  also  seeks  to  modernize  active  labour  market  policies,  as  well  as  to  simplify 
and  increase  the  effectiveness  of  hiring  incentives.  Measures  in  Component  23  (Labour 
Market)  will  serve  to  implement  the  recommendations  in  this  sense  issued  by  the  Spanish 
Independent  Authority  for  Fiscal  Responsibility  (‘AIReF’)  in  its  2019  Spending  Review 
report:  “Hiring  incentives”.  Actions  to  improve  the  level  of  digital  skills  amongst  the 
unemployed are also envisaged in Component 19 (Digital Skills). 

The  Plan  envisages  a  reform  of  the  collective  bargaining  system  with  the  aim  of 
improving its effectiveness. The details of this reform have been left open to reflect the 
outcome of social dialogue.  Milestones included in the proposal for a Council Implementing 
Decision  on  the  approval  of  the  assessment  of  the  recovery  and  resilience  plan  of  Spain 
reflect  the  need  to  ensure  that  the  reform  envisaged  in  Component  23  (Labour  Market)  is 
carried  out  in  respect  of  social  dialogue,  and  as  part  of  a  comprehensive  approach  that 
balances the need for  flexibility and security in  the labour market  in  order to  support a job 

[33] Short-time schemes or ERTES allow for contract suspension and reduction of working hours due to force 
majeure for a given period of time. During that time, companies are (totally or to a very large extent)  exempted 
from paying their Social Security contributions. 
[34] See Christl et al. (2021). 

47 

 
 
                                                 
rich recovery. [35] While details on the amendments that are expected to be introduced in the 
system  could  not  be  provided  by  Spain  in  order  not  to  prejudge  the  outcome  of  social 
dialogue on the measure, the reform is to be accompanied by an ex-ante assessment report of 
shortcomings  in  the  current  legislation  governing  collective  agreements.  The  design  of  the 
reform  is  expected  to  support  competitiveness  and  job  creation,  notably  by  ensuring  that 
firms  can  adjust  swiftly  to  economic  developments,  and  that  wages  are  responsive  to 
productivity developments in the medium term. [36] 

Overall, the RRP of Spain includes measures to reduce labour market segmentation and 
to reinforce active labour market policies that  are likely to improve the functioning of 
the labour market. All the reforms in the plan should be completed in full respect of social 
dialogue  to  ensure  the  widest  ownership  and  will  be  part  of  a  comprehensive  approach 
balancing the need for flexibility and security in the labour market. 

Education 

Access to digital learning will be significantly boosted by the plan through investments 
in  devices  and  skills,  but  also  through  the  development  of  online  courses.  In  2020,  the 
Council  issued  a  CSR  to  Spain  to  improve  access  to  digital  learning  (CSR 2020.2.7). 
Measures in Component 21 (Education) of the RRP of Spain will significantly contribute to 
addressing  this  CSR,  notably  through  the  provision  of  digital  devices  to  at  least  300 000 
students  and  of  interactive  systems  to  around  24 000  classrooms  in  public  and  publicly 
subsidized schools. Around 700 000 teachers will receive digital training, and support for the 
preparation or revision for a Digital Strategy for 22 000 school centres given. Component 19 
(Digital Skills) will also support this CSR through actions targeting the whole population in 
Spain, including specific measures for the elderly, the unemployed and vulnerable children. 
In addition, access to online training for IT professionals will be provided to at least 18 000 
of them, through the development of massive open online courses in cybersecurity, artificial 
intelligence  and  other  key  emerging  technologies.  Digital  resources  for  the  online 
dissemination and teaching of the Spanish language will also be developed with RRP support 
through investments in that component. Other components contain actions to promote digital 
learning in specific sectors, such as Components 3 (Agri-food and fisheries), 13 (Support to 
SMEs), 14 (Tourism) and 24 (Cultural Sector). 

The plan is expected to contribute to the provision of labour market relevant skills and 
qualifications that should accompany the green and digital transition of the country.  In 
2019,  the  Council  issued  a  CSR  to  Spain  on  increased  cooperation  between  education  and 
businesses  with  a  view  to  improving  the  provision  of  labour  market  relevant  skills  and 
qualifications, in particular for information and communication technologies (CSR 2019.2.10 

[35] The  most recent country report of Spain had recalled the  need to preserve the elements of the 2012-2013 
labour  market  reforms  that  are  acknowledged  to  have  played  an  important  role  in  promoting  the  job-rich 
economic recovery that started in 2014. 
[36] OECD (2021), Economic Surveys: Spain, pages 37-38. 

48 

 
 
                                                 
and 11). Raising the share of students in science and digital technologies, making vocational 
education  and  training  more  attractive  and  ensuring  flexible  upskilling  and  reskilling 
opportunities  could  help  meet  the  growing  demand  for  the  technical  skills  needed  for  the 
green  and  digital  transitions,  as  signalled  in  recent  country  reports.  Measures  envisaged  in 
Components 19 (Digital Skills), 20 (Vocational Training) and 21 (Education Reform) aim to 
substantially expand and adapt the VET offer to labour market needs, to reinforce the digital 
elements  in  that  training,  and  to  increase  the  number  of  ICT  professionals  and  to  reinforce 
their advanced digital  skills.  These measures will substantially contribute  to  addressing this 
CSR. For VET courses, investments should allow for the creation of simulators, digital twins 
and technological  hubs to  promote the digital  transformation  of the VET training. EUR 1,2 
billion  will  be  invested  in  Component  19  (Digital  Skills)  and  Component  20  (Vocational 
Training) for this purpose over the next three years, and these actions will be complemented 
by  other  actions  funded  by  ESIF.  In  addition,  measures  foreseen  in  Components  17  should 
contribute to ensure that research and innovation policies are more effective, and create the 
conditions for maximising the contribution of R&I to addressing major socio-economic and 
environmental challenges.  

Educational outcomes may also improve as a result of investments at various stages of 
the education cycle. In 2019, a CSR was issued to Spain to reduce early school leaving and 
improve  educational  outcomes,  taking  into  account  regional  disparities.  The  substantial 
expansion of the VET offer envisaged as part of Component 20, together with efforts to adapt 
it  to  labour  market  needs,  may  substantially  contribute  to  reduce  early  school  leaving. 
Moreover,  improving  educational  and  career  guidance  and  providing  adequate  support  to 
students with disadvantages and regions lagging behind will contribute to better educational 
outcomes  in  Spain.  For  that  purpose,  a  EUR 320  million  investment  is  foreseen  in 
Component  21  (Education)  also  for  the  continuation  of  targeted  support  for  vulnerable 
students  in  centres  that  face  educational  complexity  challenges  under  the  PROA+ 
programme. Actions to enhance digital skills amongst vulnerable children are also envisaged 
as part of Component 19 (Digital Skills). In addition, measures in Component 21 (Education) 
of the plan seek to achieve this outcome through the implementation of a competence-based 
curriculum further to the adoption of a new education law in December 2020. Recitals to the 
2020 CSRs issued to Spain highlighted that the success of measures that were to be adopted 
at the time with a view to achieving these objectives would depend on the broad and long-
lasting social and political consensus around the reforms [37]. 

Poverty reduction & social inclusion 

The plan is also expected to help address the existing fragmentation of unemployment 
protection, which resulted in gaps. In 2020, the Council issued a CSR to Spain to reinforce 
unemployment  protection,  notably  for  atypical  workers  (CSR 2020.2.4).  As  regards 
unemployment  assistance  for  the  long-term  unemployed  and  workers  not  qualifying  for 

[37] 2020 CSRs to Spain, recital 20. 

49 

 
 
                                                 
contributory schemes, support is currently provided across multiple schemes, resulting in low 
coverage.  Measures  in  Components  22  (Care  Economy,  Equality  and  Inclusion)  and  23 
(Labour Market) take a step forward in trying to remedy this situation and will contribute to a 
large extent to addressing this CSR. Investments will also develop integration pathways for 
the beneficiaries of the nationwide minimum income scheme. 

Measures in the plan have the potential to contribute to address CSRs asking Spain to 
improve  coverage  and  adequacy  of  minimum  income  schemes  and  family  support 
(CSR 2020.2.5  and  2020.2.6).  As  regards  the  CSR  on  minimum  income  schemes,  the 
permanent  national  income  guarantee  scheme  introduced  by  Spain  in  June  2020  will  be 
expanded and integration pathways for beneficiaries reinforced. This scheme was introduced 
with  the  aim  of  setting  a  minimum  floor  at  national  level,  for  regions  to  top  up  and 
complement  with  their  existing  schemes.  The  implementation  of  the  initial  scheme  is  still 
ongoing. In that context, measures envisaged in Component 22 (Care Economy, equality and 
inclusion) of the recovery and resilience plan of Spain are expected to substantially contribute 
to enhance its impact on poverty-reduction by extending its coverage to persons that were not 
supported  so  far,  including  to  support  their  socio-economic  inclusion.  As  regards  family 
support, Component 22 envisages a legislative reform to strengthen material support (in cash 
and kind) to children in vulnerable situations, which is to be complemented with a review of 
support  to  families  through  the  tax  system.  While  the  objective  of  reducing  the  high  child 
poverty  rates  should  guide  reforms  to  family  support  announced  as  part  of  Components  22 
and  28  of  the  plan,  any  amendments  in  this  area  should  also  have  due  regard  to  the  low 
fertility rates in the country.  

Research and Innovation Policies 

The  RRP  is  expected  to  contribute  to  enhance  the  effectiveness  of  research  and 
innovation  policies  and  accelerate  the  diffusion  of  innovation  to  support  the  recovery 
and  increase  the  resilience.  In  doing  so,  it  will  help  address  the  challenge  already 
highlighted by the CSR addressed by the Council to Spain  (CSR 2019.3.6). Reinforcing the 
governance  of  research  and  innovation  at  all  levels,  as  well  as  increasing  the  quality  of 
research through the use of systematic evaluations to promote excellence, and incentives for 
research organisations to cooperate with the private sector, are expected to help address this 
recommendation. This will  partly be  achieved by a reform of the regulatory  framework for 
innovation foreseen in Component 17 (Science, Technology and Innovation), by reorganizing 
public  research  undertaken  in  the  universities  system,  by  providing  additional  support  for 
Public  Research  Organizations  and  by  establishing  a  new  scientific  carrier  path  seeking  to 
attract and retain talent in research. All of the former measures are envisaged in Component 
17  (Science,  Technology  and  Innovation).  In  addition,  a  reform  of  the  university  system  is 
envisaged  as  part  of  Component  21  (Education)  to  be  accompanied  by  EUR 383  million 
investments in the training of teachers, to attract and retain talent in Spanish universities. This 
is also supported by investments for the creation of a network of excellence, a talent hub and 
several  chairs  on  artificial  intelligence  as  part  of  Component  16  (Artificial  Intelligence). 
The 60% increase in R&D&I investment is expected to help address significant gaps arising 
in  the  Spanish  science,  technology  and  innovation  system  due  to  the  fall  of  past  public 
investment. The component also targets specific sectors to help support the green transition 
(for instance, by bringing down emissions of aerospace and automotive vehicles), as well as 
the  digital,  and  health  system  to  better  prepare  for  future  pandemics.  The  reform  of  the 
50 

 
 
governance of the science, technology and innovation system includes the reorganisation and 
merging of several PROs as well as new qualitative criteria to grant the status of “university”. 
These changes are expected to attract new interest and investment from private sector to joint 
public-private initiatives for technology transfers as well as from the centre for technological 
and  industrial  development  (‘CDTI’).  Although  it  is  claimed  that  most  of  the  envisaged 
initiatives will be delivered jointly by the state and the regions, it is however still unclear how 
policy and strategic coordination will be orchestrated between the different levels of regional 
governance. 

Investment 

The  EUR 69,5  billion  non-repayable  supporting  the  RRP  of  Spain  will  contribute 
substantially to addressing CSRs on fostering public and private investment to help the 
recovery. In 2020, the Council issued a CSR to Spain to front-load mature public investment 
projects and promote private investment to foster the economic recovery. The CSR suggested 
to focus investment on the green and digital transition, in particular on fostering research and 
innovation, clean and efficient production and use of energy, energy infrastructure, water and 
waste  management  and  sustainable  transport  (CSRs 2020.3.3,  4,  5,  6  and  7).  A  similar 
recommendation  was  issued  to  Spain  in  2019  (CSRs 2019.3.1,  2,  3,  4  and  5).  The  public 
investment delivered by the RRP is expected to mobilise private investment in many sectors, 
such  as  the  energy  and  industrial  transition  of  the  county,  but  also  building  renovation,  the 
agri-food sector, fisheries, health and key digital technologies. 

The digital transition 

The  RRF  impulse  will  be  an  opportunity  for  Spain  to  move  forward  faster  than 
expected  on  the  advancement  of  new  technologies.  With  28,2%  of  the  plan’s  total 
allocation  devoted  to  digital  investments,  the  RRP  will  accelerate  the  digitalisation  of  the 
Spanish economy and society. Component 15 (Digital Connectivity) will improve the already 
good  level  of  digital  connectivity  through  investments  in  the  digital  infrastructure  network, 
with  a  particular  focus  on  rural  or  less  populated  areas.  Support  will  be  given  to  support 
SMEs  in  their  digital  transition  through  measures  in  Component  13  (Support  to  SMEs). 
Support will also be provided to promote digitalisation projects through measures contained 
in  various  components  and  pertaining  to  strategic  sectors  such  as  agri-food,  automotive, 
tourism, culture and audiovisual and energy, including to enhance the use of the opportunities 
offered by artificial intelligence through Component 16 (Artificial Intelligence). More detail 
on these measures is provided in Section 4.6. 

Although Spain is already doing well in the area of digital public services, the RRP will 
provide  additional  impulse  to  the  digitalisation  of  the  public  administration  through 
investments  in  Component  11  (Public  administration),  but  also  through  reforms  to  simplify 
and  digitalise  the  procedures  for  setting  up  a  business,  as  well  as  to  digitalise  further  the 
justice system (Component 13 (Support to SMEs)), the health sector (Component 18 (Reform 
of  the  Health  System)),  of  education  and  VET  (Components  21  and  20)  and  of  sports 
federations (Component 26 (Sports)). 

In  order  to  allow  society  at  large  to  reap  the  fruits  of  these  investments,  support  to 
increase  basic  and  advanced  digital  skills  will  be  ensured  for  different  groups  of  the 
population through the implementation of the National Framework Strategy to enhance 

51 

 
 
Digital  Skills.  Investments  in  Component  21  focus  on  the  digitalisation  of  education.  In 
addition,  a  EUR 735  million  investment  under  Component  19  (Digital  Skills)  will  increase 
digital  skills  for  all  citizens,  with  actions  targeting  the  elderly,  the  unemployed  and 
vulnerable  children,  and  through  awareness-raising  campaigns.  Based  on  data  from  INE  in 
2019,  3,62%  of  the  labour  force  have  very  limited  digital  skills  (approximately  832 600 
people).  The  plan  will  invest  EUR 1 256  million  in  training  at  least 60%  of  those  persons. 
Measures in the plan should also help increase the share of ICT specialist in Spain through 
scholarships and the development of massive open online courses.  

Green and energy transition 

Adapting  to  climate  change,  ensuring  a  more  efficient  water  and  waste  management, 
reducing emissions from transport, further decarbonising energy and increasing energy 
efficiency are challenges that the RRP will contribute to address. The plan aims to pave 
the  way  for  the  green  transition  of  Spain.  Regulatory  changes  envisaged  as  part  of 
Components 1 to 10 of the plan are expected to help achieving environmental objectives by 
promoting  investments  in  energy  efficiency,  the  responsible  use  of  natural  resources  (in 
particular water), waste management activities (as part of Component 12 Industrial Policy), 
and  renewable  energy.  Component  28  (Tax  system  reform)  includes  environmental  tax 
reforms that will contribute to the green and energy transition. 

Investments  envisaged  in  the  RRP  aim  to  increase  energy  efficiency  and  foster 
decarbonising  the  energy  system.  An  ambitious  EUR 7,8  billion  investment  envisaged  in 
Components  2  (Renovation)  and  11  (Public  administration)  should  contribute  to  substantial 
energy  renovations  of  residential  and  public  buildings.  The  deployment  and  integration  of 
renewable  energy  and  storage  will  be  facilitated  by  Components  7  (Renewables)  and  8 
(Electricity infrastructure), business models based on the energy transition will be encouraged 
by investment in Components 7 (Renewables), 10 (Just Transition) and 12 (Industrial Policy); 
and  renewable  hydrogen  supported  by  Component  9  (Hydrogen).  Component  10  (Just 
Transition)  should  help  mitigating  socio-economic  challenges  arising  from  the  green 
transition. 

Strategic  projects  for  the  transformation  of  the  industry  (the  so-called  PERTEs) 
foreseen in Component 12 (Industrial policy) will seek to implement the twin transitions 
across the whole value chain within a given sector, while at the same time enhancing social 
and  territorial  cohesion  on  that  project.  EUR 2,5 billion  will  be  invested  in  this  area, 
including for the decarbonisation of the Spanish industry. 

The plan is expected to contribute to mitigate the vulnerability of Spain to the adverse 
effects of climate change due to its geographical location and topography.  The negative 
impacts  of  climate  change  will  result  in  reduced  water  resources,  coastal  erosion,  loss  of 
biodiversity  and  natural  ecosystems,  increased  soil  erosion  and  more  frequent  extreme 
weather-related hazards. Measures foreseen in Components 4 (Ecosystems and  biodiversity) 
and  5  (Coast  and  water  resources)  of  the  plan  will  contribute  to  the  protection  of  the 
environment  through  actions  for  the  conservation  and  restoration  of  ecosystems  and  their 
biodiversity, and sustainable management and protection of natural resources (forests, rivers, 
wetlands, estuaries, etc.). 

52 

 
 
Finally,  the  CSR  recommendation  addressed  to  Spain  in  the  area  of  electricity 
interconnections  will  be  addressed  outside  the  framework  of  the  RRF  (CSR 2019.3.5). 
Spain,  together  with  Portugal  and  France,  is  strongly  committed  to  increasing  electricity 
interconnections  with  the  rest  of  the  EU  for  a  better  integration  of  the  EU  internal  energy 
market, as foreseen in the NECP. This commitment is evidenced by Joint Declarations of the 
recent summits held with Portugal (October 2020) and France (March 2021). Cooperation at 
national,  regional  and  EU 
to  advance  key  electricity 
level  should  be  continued 
interconnections, meeting both energy and climate objectives, including in the framework of 
the Connecting Europe Facility 2. 

Transport 

Investments  in  the  plan  seeking  to  foster  sustainable  mobility,  including  through  a 
better use of the rail network, should contribute to bring greenhouse emissions down in 
Spain.  Measures  in  Components 1  and  6  of  the  plan  should  also  allow  for  progress  on 
sustainable mobility in Spain. Transport is the sector in which GHG emissions keep growing 
most in  Spain.  To reduce the  current  reliance on carbon-intensive road freight,  investments 
need to focus on making better use of the rail system. The use of rail freight transport will be 
enhanced  through  the  completion  of  the  missing  corridors  and  through  the  development  of 
intermodal  transport  nodes.    The  setting-up  a  financing  system  for  the  conservation  and 
maintenance of public roads envisaged in Component 1 (Sustainable urban mobility), which 
internalises environmental costs, is also expected to contribute to the modal shift from road to 
rail  and  decrease  emissions.  Component  1  (Sustainable  urban  mobility)  also  envisages 
significant investments in electric mobility (including charging infrastructure and support to 
electric vehicles), and the creation of low-emission zones to improve urban public transport 
while making it more environmentally sustainable. 

Public administration and business environment 

Restrictiveness  and  fragmentation  of  regulation  within  Spain  weigh  on  the  business 
environment and prevent companies from benefitting from economies of scale.  For this 
reason,  a long-standing  CSR has  asked Spain  to  fully implement  the  Law on Market  Unity 
(CSR 2019.4.1).  This  law  is  a  better  regulation  tool  that  aims  to  remove  unnecessary  and 
disproportionate  regulatory  barriers  to  the  access  to  and  operation  of  economic  activities 
throughout  Spain.  In  addition,  it  includes  provisions  to  foster  better  regulation  principles 
across  the  various  tiers  of  government.  Reforms  envisaged  in  Component 13  (Support  to 
SMEs) are expected to contribute to enhance its application. The plan announces that the Law 
on Firm’s Creation and Growth will amend certain parts of the Law on Market Unity with a 
view  to  providing  more  clarity  on  those  provisions  whose  interpretation  had  resulted  in 
difficulties  in  its  implementation.  The  reform  is  also  expected  to  improve  the  mechanisms 
laid  down  to  protect  market  operators  against  regulatory  action.  In  addition  to  those 
mechanisms, a new Sectoral Conference on Business Regulatory and Climate Improvement 
will be set up to facilitate the correct application of the principles of good regulation by all 
public administrations at all territorial levels.  It  will replace the former sectorial conference 
set up for this purpose and focus efforts on future regulation, notably the one accompanying 
recovery. It will follow-up on work done within other sectorial conferences, to ensure a better 
coordination,  monitoring  and  promotion  of  better  regulation  across  the  board.  As  regards 
professions,  their  regulation  will  be  improved  through  different  means.  First,  a  legislative 

53 

 
 
reform  will  implement  Directive 2018/958,  of  the  European  Parliament  and  Council,  on  a 
proportionality  test  before  adoption  of  new  regulation  of  professions. [38]  Second,  a  reform 
will ensure that access to the exercise of the activities of lawyers and procuradores is subject 
to the same qualification requirements and that only maximum fees apply to the services of 
procuradores. The reform will also allow the joint provision of services of defence before the 
court and legal representation before the court (procura) by professional firms.  

The  RRP  of  Spain  is  also  expected  to  contribute  to  a  better  business  environment 
throughout  the  life  of  a  company,  from  its  set  up  to  its  end.  The  Spanish  market  for 
venture  capital  financing  of  SMEs,  and  especially  of  very  small  firms,  is  unattractive  for 
investors. In addition, payment practices in Spain weigh on SMEs’ liquidity. For that reason, 
the  Council  issued  in  2020  a  CSR  to  Spain  to  ensure  the  effective  implementation  of 
measures to provide liquidity to small and medium-sized enterprises and the self-employed, 
including  by  avoiding  late  payments  (CSR 2020.3.1).  The  Law  on  Firm’s  Creation  and 
Growth announced in Component 13 (Support to SMEs) will reduce drastically the minimum 
capital  required  for  the  creation  of  a  limited  liability  company,  digitize  the  entire  set-up 
process and improve access to diversified sources of finance for business growth. As regards 
innovative  start-ups,  a  new  regulatory  framework  foreseen  in  the  same  Component  will 
facilitate their emergence. In addition, the effectiveness of rules to tackle late payment will be 
strengthened,  notably  to  protect  SMEs  from  unfair  practices  in  business-to-business 
transactions.  The  shift  towards  an  early  payments  culture  could  be  based  on  guidelines  on 
publicity  and  transparency  of  payment  periods,  best  business  practices  and  mechanisms  for 
better enforcement, such as an out-of-court dispute resolution system.  

The plan includes  measures to improve the  effectiveness  of the justice system, notably 
its efficiency. The timely resolution of insolvency proceedings plays a key role in ensuring 
the liquidity of companies and an effective reallocation of resources, as well as in promoting 
entrepreneurship  and  the  stability  of  the  financial  sector.  In  that  context,  the  reform  of  the 
insolvency framework envisaged as part of Component 13 (Support to SMEs) will introduce 
preventive debt restructuring and debt relief for natural persons and improve the effectiveness 
of  pre-insolvency  and  second  chance  instruments.  In  addition,  investments  in  digitalisation 
and three legislative reforms in Component 11 (Public Administration) will seek to enhance 
the  efficiency  and  digitalisation  of  judicial  proceedings,  as  well  as  a  more  effective 
organisation of the justice system. The efficiency of procedures will build on a shortening of 
the length of procedures in all jurisdictions, and on the promotion of alternative out-of-court 
settlement mechanisms. The reform of the organisation of the judicial map intends to replace 
the  high  number  of  unipersonal  first-instance  courts  by 431  collegial  organs  (tribunales  de 
instancia),  and  implement  the  Judicial  Office  throughout  the  whole  justice  system.  In 
addition, a reform of the Code of Criminal Procedure is envisaged as part of Component 11 
(Public  Administration).  The  draft  reform  seeks  to  allocate  the  head  lead  of  judicial 

[38]  Directive  (EU)  2018/958  of  the  European  Parliament  and  of  the  Council  of  28  June  2018  on  a 
proportionality test before adoption of new regulation of professions, http://data.europa.eu/eli/dir/2018/958/oj. 

54 

 
 
                                                 
investigation  to  prosecutors,  while  in  the  current  system  it  is  led  by  investigative  judges. 
These  reforms  aim  to  improve  the  effectiveness  of  the  justice  system,  thereby  boosting 
economic activity and attracting investment. These reforms should all be adopted further to 
due consultation of the relevant stakeholders, including the National Council for the Judiciary 
and the General Prosecutor’s Office. 

Other public administration aspects 

Stronger  and  sustained  coordination  between  the  national,  regional  and  local 
authorities  would  render  the  implementation  of  policies  more  effective,  and  the  plan 
contains  measures  to  reinforce  existing  mechanisms  for  coordination.  Coordinating 
different levels of government is a challenge in policy areas where both national and regional 
levels  are  involved  in  reforms.  These  include  better  regulation,  as  well  as  active  labour 
market policies, education, health care and social services. As a result, the Council issued a 
CSR  to  Spain  to  strengthen  coordination  between  levels  of  government  in  2020 
(CSR 2020.4.1).  Besides  the  actions  on  regulatory  fragmentation  envisaged  as  part  of 
Component 13 (Support to SMEs), the plan of Spain addresses this recommendation through 
regulatory  changes  envisaged  to  Law  40/2015  on  the  legal  system  for  the  public  sector  in 
Component 11 (Public administration). These changes seek to reinforce existing mechanisms 
for cooperation across levels of government, such as the conference of Presidents, where the 
heads  of  the  central  and  regional  government  meet,  through  the  creation  of  a  permanent 
secretariat,  and  the  sectoral  conferences  (by  spelling  out  when  agreements  will  be  of 
mandatory compliance and by making compulsory the preparation, approval and publication 
of multiannual policy objectives and result indicators, as well as transparent mechanisms of 
monitoring and evaluation). They  also  establish  the need to  ensure interoperability between 
central and regional government IT platforms. 

Finally, the plan seeks  to strengthen the public procurement framework, which  is  key 
for  the  efficient  use  of  funds  provided  by  the  RRF.  The  implementation  of  the  RRP  of 
Spain  will  significantly  contribute  to  address  CSRs  to  strengthen  the  public  procurement 
framework  (CSR 2020.4.2  and  CSR 2019.1.3).  Component  11  (Public  administration) 
includes  the  adoption  of  the  National  Public  Procurement  Strategy,  a  high-level  policy 
document  that  had  been  long  delayed  (the  law  on  the  public  sector  contracts  stipulated  its 
adoption by August 2018). This Strategy is intended as a tool for making public procurement 
more efficient.  Measures in  that component seeking to  ensure that the governance structure 
for public procurement created in 2018 is fully operational will be key to ensure an efficient 
delivery  of  RRF  funds  (notably,  the  Independent  Office  for  Regulation  and  Supervision  of 
Public Procurement and the National Evaluation Office). Measures foreseen in the RRP may 
facilitate the effective implementation of the switch to mandatory electronic procurement at 
all levels of government, as well as a better sharing of data between them.  

The  Spanish  RRP  addresses  well  the  recommendations  and  challenges  in  a  significant 
number of areas. This is notably the case in the areas of the green and digital transitions. To 
a  large  extent,  the  plan  also  does  so  in  the  areas  of  digital  skills,  research  and  innovation, 
health,  active  labour  market  policies  and  labour  market  segmentation,  support  to  the  long-
term unemployment and to families, public procurement and the business climate.  

55 

 
 
Response to the economic and social situation  

transitions,  notably 

Medium  to  long-term  recovery  prospects  for  Spain  will  depend  on  investments  to 
increase productivity and innovation. The plan focusses on investments to embrace faster 
that  will  help  firms  regain 
the  digital  and  green 
competitiveness.  The weak productivity  growth  observed before the crisis is  also  addressed 
through  investments  in  people  and  in  improving  the  business  climate.  Measures  supporting 
skills  across  different  population  groups  (in  particular  digital  ones),  the  digitalisation  of 
businesses, notably SMEs, and a more effective public administration, including the national 
justice system, and business climate contribute to that goal. When it comes to innovation, the 
RRP also seeks to reinforce the private and public partnerships in research and in industrial 
transformation.  

in  sectors 

The  plan  also  focuses  on  measures  to  enhance  social  and  territorial  cohesion,  which 
could  worsen  due  to  the  crisis.  As  described  in  Section 4.1  above,  the  plan  contains 
measures  that  seek  to  preserve  employment  and  to  overcome  segmentation,  to  fight  child 
poverty  and  modernise  social  protection  services.  If  successfully  implemented,  they  will 
strengthen social cohesion. The modernization of the tax system envisaged in the plan should 
also result in a redistribution of resources towards those most in need.  

The  plan  contains  a  series  of  measures  that  are  expected  to  effectively  address  the 
country’s challenges in the area of gender equality and equal opportunities for all. These 
include  several  reforms  and  investments  aiming  at  mitigating  the  disproportionate  negative 
impact of the crisis on women. Legislative measures in Component 23 (Labour Market) seek 
to eliminate the gender pay gap and to increase transparency and equality between men and 
women in the labour market. Other measures include a substantial investment in the creation 
of  places  for  early  childhood  education  to  facilitate  women’s  participation  in  the  labour 
market (EUR 670 million). They also include actions to promote STEM vocations at schools 
(EUR 256  million),  investment  to  support  female  entrepreneurships  (EUR 46  million)  and 
support to women victims of gender-based violence (EUR 153 million), as well as measures 
to  attract  internationally  talented  women  to  carry  out  research  projects,  investments  in  the 
care sector and measures to increase the participation of women in the transport, audiovisual 
and professional sport sectors.  

The  plan  also  has  a  strong  focus  on  social  cohesion  and  shows  a  clear  willingness  to 
address  other  forms  of  inequalities,  in  particular  those  experienced  by  young 
unemployed people. The plan could however be more specific as regards the beneficiaries of 
the  measures  addressed  to  vulnerable  and  disadvantages  groups  (Roma,  migrants  and  the 
elderly).  Certain  measures  specifically  targeting  migrants  or  persons  with  a  migrant 
background  are  envisaged,  e.g.  for  the  integration  of  asylum-seekers  and  other  persons  in 
need of protection in Component 22 (Care Economy, Equality and Inclusion), the prevention 
of early school living, as well as broader educational support later on in life in Components 
20 (Vocational Training) and 21 (Education). Measures will also ensure that digital devices 
and  skills  are  provided  to  them.  Several  measures  in  Components  1  (Sustainable  urban 
mobility),  2  (Renovation),  20  (Vocational  Training),  22  (Care  Economy,  Equality  and 
Inclusion) and 23 (Labour market reform) relate to persons with disabilities, in particular  in 
relation  to  employment,  vocational  training,  transport  and  access  to  public  buildings.  The 
reform  of  the  education  law  included  in  Component 21  foresees  the  integration  of  students 

56 

 
 
that  are  currently  attending  the  so-called  special  education  centres  into  ordinary  schools 
within ten years. The RRP explains that a ten-year plan will be drawn up together with the 
regions.  That  plan  is  expected  to  support  the  integration  of  students  with  special  needs  in 
ordinary centres. The same plan is also expected to ensure that special education schools can 
continue welcoming students  whose needs can be better met in  them,  and at  the same time 
provide support to ordinary centres for the integration of students with special needs. As the 
scope of the ten-year plan exceeds that of the Facility, this aspect of the reform does not rely 
on RRF support. 

The  plan  seeks  to  mitigate  regional  disparities  in  Spain  in  the  areas  of  employment, 
educational  outcomes,  early  school  leaving  rates,  poverty  and  inequality  with  targeted 
investments.  Despite  a  significant  improvement  in  digital  infrastructure,  the  urban-rural 
divide persists. The Plan seeks to overcome them through targeted investments that take due 
account  of  these  differences  and  focus  on  vulnerable  areas.  Equally,  actions  for  the 
modernization of industry foreseen in the plan and to bridge the digital divide seek to ensure 
that all territories are allowed to embrace swiftly and reap the benefits of the digital and green 
transition.  

Identified risks to fiscal sustainability in the medium- to long-term stem partly from the 
need to take better account of existing challenges to productivity, social and territorial 
cohesion.  To  the  extent  that  investments  in  those  areas  are  successful  in  increasing 
productivity,  employment  and  social  cohesion,  they  should  be  offset  through  increased 
employment  and  growth  in  the  medium  to  long-term.  The  Spanish  RRP  thus  represents  a 
comprehensive and adequate response to the economic and social situation of Spain. 

Boost the growth potential in a sustainable manner 

In  order  to  support  the  long-term  growth  potential  of  Spain’s  economy,  the  plan  is 
designed  to  tackle  the  main  barriers  to  investment.  The  plan  seeks  to  improve  labour 
market regulations and the lack of availability of skilled workers. Measures in the plan also 
seek to tackle the fragmentation and ensure better regulation; facilitate access to finance for 
SMEs  and  innovative  start-ups,  as  well  as  to  enhance  the  functioning  of  the  public 
administration,  including  for  a  more  effective  application  of  the  public  procurement 
framework.  The  plan  also  contains  investments  seeking  to  address  the  low  investment  in 
research and innovation, and reforms to enhance cooperation between science and business. 
Finally, the plan seeks to address the cost of energy and the impact of climate changes (see 
Sections  above  for  details).  The  Spanish  Government  estimates  the  plan  will  increase 
potential growth by 0,4% annually in the medium-term. With the profile of investments and 
reforms,  the  plan  should  both  boost  productivity,  growth  and  jobs  as  well  as  contribute  to 
addressing  the  sustainable  development  goals.  By  addressing  these  challenges,  the  Spanish 
Plan helps to significantly boost the growth potential of its economy in a sustainable manner. 

Conclusion for criterion 2.2 in Annex V to the RRF Regulation 

Taking into consideration the reforms and investments envisaged by Spain, its recovery and 
resilience plan is expected to contribute to effectively addressing all or a significant subset of 
challenges  identified  in  the  country-specific  recommendations,  or  challenges  in  other 
relevant documents officially adopted by the Commission under the European Semester, and 
the recovery and resilience plan represents an adequate response to the economic and social 
57 

 
 
situation of Spain. This would warrant an A under the assessment criterion 2.2 in Annex V to 
the RRF Regulation. 

58 

 
 
 
Table 4.2.1 Mapping of country challenges identified in 2019-20 country-specific recommendations and the 30 Spanish RRP components  

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Country challenges 
(as identified in Section 2) 

Fiscal policy and fiscal 
governance 
Health  care  and  long-term 
care 
Long-term sustainability of 
the public finances 

2019.1.2, 2020.1.1 

○ 

2020.1.2 

2019.1.4., 2020.1.3 

○ 

Employment protection and 
framework for contracts 
and incentives to work and 
create jobs 
Unemployment benefits 
Active labour market 

2020.2.1 and 
2020.2.2, 2019.2.3 
and 2019.2.4. 

2020.2.4, 2019.2.6 
2019.2.1 

Fiscal sustainability 

  ○ 

  ○ 

Labour market 

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  ○  ○  ○ 

  ○   

  ○   

  ○ 

  ○  ○  ○  ○ 

  ● 

  ● 

  ○ 

  ○  ○ 

  ○  ○ 

  ○  ● 
  ○  ● 

  ○  ○ 

59 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
policies 

Access to digital learning 
Reduce early school leaving 
and improve educational 
outcomes, taking into 
account regional disparities 
Increase cooperation 
between education and 
businesses 

Improve support to families 
Ensure that social services 
have the capacity to provide 
effective support 
Improve adequacy and 
coverage of minimum 
income schemes 

Enhance the effectiveness of 
policies on research and 
innovation 

Focus investment on 
fostering innovation 

Green and digital transition 

Transport 

Energy 

2020.2.7 

  ○ 

  ○  ○ 

  ○ 

  ●  ●  ● 

  ○ 

Education 

2019.2.8 and 
2019.2.9 

2019.2.10 

  ●  ●  ● 

  ● 

  ●  ● 

2020.2.6,2019.2.5 

  ● 

  ● 

  ●  ● 

  ○ 

Social Policies 

2019.2.2. 

2020.2.5, 2019.2.7 

  ● 

  ●  ● 

Research and Innovation 

2019.3.6 

  ● 

  ○ 

2020.3.3, 2019.3.1 

● 

  ●  ●  ● 

  ●  ●  ○  ○  ○  ● 

Investment 

2020.3.3., 2020.3.5, 
2019.3.2 
2020.3.6, 2019.3.4 
2020.3.4, 2019.3.3 
and 2019.3.5 

●  ●  ●  ●  ●  ●  ●  ●  ●  ●  ●  ●  ●  ●  ●  ●  ●  ●  ●  ●  ●  ○  ○  ●  ●  ●  ○ 

● 

  ● 

  ● 

  ●  ●  ●  ●  ● 

  ● 

Public administration and business climate 

  ○ 

  ○ 

60 

  ● 

Enhance measures to 
provide liquidity to SMEs 
and the self-employed 
Further implementation of 

2020.3.1 

2019.4.1 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
the Law on Market Unity 
Strengthen public 
procurement frameworks 
Improve coordination across 
levels of government 
Key: “●” investments and reforms of the component significantly address the challenge; “○” the component partially addresses the challenge 

2020.4.1, 2019.1.3 

2020.4.1, 2019.4.2 

  ○  ○  ○ 

  ○ 

  ○ 

  ● 

  ○ 

61 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
4.3. Growth  potential,  job  creation,  economic,  institutional  and  social  resilience, 
European Pillar of Social Rights, mitigating the impact of the crisis, and social 
territorial cohesion and convergence  

Fostering economic growth and jobs 

The  mix  of  investments  and  reforms  presented  by  Spain  are  expected  to  stimulate 
growth through multiple channels, including improvements in total factor productivity, 
in  line  with  the  EU  update  of  the  2020  new  Industrial  Strategy  [39],  boosting  trade 
capacity  and  increasing  efficiency  gains  in  the  labour  market  while  reducing  its 
fragmentation.  The  economic  impact  of  the  funds  on  the  Spanish  economy  will  be 
significant,  particularly  between  2022  and  2024,  when  strong  demand  effects  would  be 
accompanied by a gradual contribution from the supply side. The Spanish authorities estimate 
a cumulative increase in GDP level of 2,8%, 4,15% and 4,16% for the first three years of the 
implementation  of  the  plan.  These  projections  seem  on  the  optimistic  side,  as  they  imply 
larger and more persistent multipliers than those reported in the literature [40], which supports 
the  use  of  a  multiplier  of  narrowly  above  unity  in  2021  and  slightly  higher  in  2022.  Even 
using  the  latter  multipliers,  the  Commission  estimates  also  show  sizable  GDP  effects,  but 
more evenly spread over the years. The full implementation of the plan’s measures could lead 
to an increase of GDP of between 1,8% and 2,5% by 2024 (see Box 4.3.1), enabling Spain to 
return to the pre-COVID-19 GDP level by the end of 2022.  The implementation of reforms 
combined  with  the  injection  of  public  funds  is  expected  to  boost  domestic  demand, 
representing  the  main  drivers  of  growth  in  the  forthcoming  years  also  thanks  to  gradual 
normalization of the households’ savings rate.  

According  to  the  simulations  run  by  the  Commission,  the  long-lasting  impact  of  the 
RRP could lead to a 0,8% higher GDP in 20 years (see Box 4.3.1). These simulations do 
not  include the possible positive impact  of structural  reforms, which can  be substantial  and 
raise Spain GDP by 10% in 20 years’ time. This increase is expected to be driven by gains in 
capital  accumulation  and  total  factor  productivity,  on  the  back  of  an  ambitious  package  of 
growth  and  productivity-enhancing  reforms  and  investments.  The  Spanish  authorities 
mention a long-term productivity effect in the medium to long-term of 0,4 pps, but without 
providing  details  on  how  it  is  derived  or  for  how  long  it  will  last.  Reforms  in  the  areas  of 
skills  and  labour  market  policies  have  potential  to  bring  about  long-lasting  effects  on 
potential growth and to make it more inclusive. Likewise, the implementation of the Digital 
Spain  2025  Agenda  in  the  context  of  the  RRP  may  boost  the  digital  transformation  of  the 

[39] See European Commission, Updating the 2020 New Industrial Strategy, COM(2021) 350 final, 05.05.2021. 
[40] The  Spanish  authorities  justify  the  higher  and  more  persistent  multipliers  used  in  their  projections  on  the 
assumption that deeper and more persistent negative output gaps amplify the effectiveness of fiscal stimulus  in 
crisis  years.  This  suggests  the  possibility  of  upside  risks  to  the  more  standard  assumptions  used  by  the 
Commission (see Box 4.3.1). 

62 

 
 
 
                                                 
Spanish economy, both at individual (by increasing up to 80% the share of people with basic 
digital skills) and sectoral level (by digitalising the public administration and the SMEs). 

The  Spanish  authorities  estimate  a  cumulative  increase  in  the  employment  level  of 
1,2%,  2,9%  and  3,1% for  the  first  three  years  of  the  implementation  of  the  plan.  The 
Commission’s  estimates  also  reflect  a  sizeable  yet  lower  effect  in  employment,  and  more 
evenly  spread  throughout  the  implementation  period  (see  Box  2).  Due  to  the  differences  in 
the  assumptions  and  methodology,  the  results  of  the  Commission’s  assessment  cannot  be 
directly  compared  to  the  numbers  reported  in  the  RRP.  In  particular,  the  Commission’s 
estimates only reflect the impact of investments and do not include the impact of the reforms 
included in the RRP. The measures having a larger direct or indirect impact on job creation 
are expected to be the new active labour market policies in Component 23 (Labour Market) 
(by  improving  job  matching),  the  reinforcement  of  the  Spanish  Science,  Technology  and 
Innovation  system  in  Component  17  (Science,  Technology  and  Innovation)  (via  the  60% 
increase  in  investment),  the  Renovation  Wave  in  Component  2  (due  to  its  labour-intensive 
impact), the modernisation and digitalisation of the industrial fabric and SMEs in Component 
12 (Industrial Policy) (by improving access to new markets via digital  means), and tourism 
and  the  promotion  of  an  entrepreneurial  Spain  in  Component  14  (Tourism)  (due  to  the 
importance  of  tourism  in  the  Spanish  economy),  those  on  VET  and  digital  skills  in 
Component 20 (Vocational Training) (by increasing the supply of medium and high skills in 
high  demand)  and  the  modernisation  and  digitalisation  of  education  in  Component  21 
(Education).  

The  Spanish  authorities  foresee  substantial  increases  in  the  level  of  public  investment 
and  investment  in  R&D  (both  public  and  private)  on  the  back  of  the  RRP.  Public 
investment remained subdued at around 2% of GDP in the years before the COVID-19 crisis. 
During the implementation of the plan (2021-2023), public investment could increase to 4% 
of GDP. Public investment in R&D could reach 1% of GDP during the implementation of the 
RRP and the Spanish authorities estimate that mobilisation of private investment will allow to 
increase overall investment in R&D well above the 2% of GDP pre-crisis target (Europe 2020 
strategy). However, the plan does not indicate if these levels of public investment and R&D 
2023.
expenditure 

maintained 

after 

will 

be 

63 

 
 
 
Box 4.3.1 Stylised NGEU impact simulations with QUEST - SPAIN 

Model  simulations  conducted  by  the  European  Commission  using  the  QUEST  model 
show that the economic impact of the NGEU in Spain could lead to an increase of GDP 
of  between 1,8%  and 2,5%  by  2024.  [41]  After  20  years,  GDP  could  be 0,8%  higher. 
Spill-overs account for an important part of such impact.  

According  to  these  simulations,  this  would  translate  into  250 000  additional  jobs.  Cross 
border  (GDP)  spill-overs  account  for  0,4 pps  in  2024,  showing  the  value  added  of 
synchronised  expenditure  across  Member  States  (line  2).  Even  in  a  scenario  with  a  lower 
productivity of NGEU funds, it would still lead to a significant impact (line 3). [42] 

Table  1:  QUEST  simulation  results  (%-deviation  of  real  GDP  level  from  non-NGEU  case, 
linear disbursement assumption over 4 years) 

This  stylised  scenario  does  not  include  the  possible  positive  impact  of  structural 
reforms,  which  can  be  substantial.  A  model-based  benchmarking  exercise  shows  that 
undertaking structural reforms that would result in halving the gap vis-à-vis best performers 
in  terms  of  indicators  of  structural  reforms  could  raise  Spain’s  GDP  by  10%  in  20  years’ 
time, in line with findings for the EU average. [43] 

Due  to  the  differences  in  the  assumptions  and  methodology,  the  results  of  this  stylised 
assessment cannot be directly compared to the numbers reported in Section 4 of Spain’s 
RRP. 

Strengthening social cohesion  

The  RRP  submitted  by  Spain  includes  measures  that  seek  to  address  social  cohesion 
challenges identified in previous country reports and country specific recommendations 
to Spain and monitored through the  Social Scoreboard (see Box 4.3.2). These measures 
have the potential to contribute to the implementation of Action Plan of the European Pillar 
of Social Rights, endorsed by the Porto Summit.  

The  plan  contains  measures  to  improve  educational  outcomes  and  skills  at  all  levels. 
Spain will invest significantly in affordable high-quality early childhood education and care 
(‘ECEC’ 0-3) for those in most need and extend guidance and support to vulnerable students. 

[41]  RRF  amounts  to  roughly  90%  of  NGEU,  which  also  includes  ReactEU,  Horizon,  InvestEU,  JTF,  Rural 
Development and RescEU. 
[42]  Technically,  the  low  productivity  scenario  considers  a  significantly  reduced  output  elasticity  of  public 
capital. 
[43] Varga, J, in 't Veld J. (2014), “The potential growth impact of structural reforms in the EU: a benchmarking 
exercise ", European Economy Economic Papers no. 541.  
http://ec.europa.eu/economy_finance/publications/economic_paper/2014/pdf/ecp541_en.pdf.  

64 

 
 
                                                 
The implementation of the new law on education aims to enhance inclusiveness and reduce 
the levels of segregation in public schools. Spain will also extend (135 000 new places) and 
modernise  (with  greater  focus  on  green  and  digital  skills)  the  offer  in  vocational  education 
and  training  (‘VET’).  Together,  these  measures  are  expected  to  contribute  to  reduce  early-
school leaving rates and improve educational outcomes. In what concerns higher education, 
measures  aim  at  promoting  equal  access  for  all  students  by  increasing  financial  aid,  by 
reforming  the  scholarship  system  and  by  reducing  university  prices.  In  addition,  enhanced 
cooperation  with  businesses  should  contribute  to  improving  labour  market  relevance  of 
higher education and employability.  

Spain  envisages  reforms  and  investments  in  the  area  of  skills,  notably  digital,  with  a 
specific  focus  on  upskilling  of  low  skilled  and  on  reskilling  of  the  labour  force  in  line 
with  labour  market  needs.  Investment  in  the  accreditation  of  existing  skills  and  in  the 
provision of professional qualifications are set to offer access to an integrated system of life-
long  learning.  There  are  new  mechanisms  to  improve  the  involvement  of  employers  in 
training provision, which is an ongoing challenge. Together these measures are expected to 
contribute  to  improve  employability  of  the  unemployed  and  provide  new  opportunities  for 
those in the labour market. 

Many of the investments in the areas of jobs and skills target the youth, with the aim of 
reducing  the  very  high  rates  of  youth  unemployment  rate  and  improve  their 
employment  prospects.  These  investments,  combined  with  the  modernisation  of  the  VET 
system and the reinforced investments in guidance and support in basic education, respond to 
the  challenge  of  fostering  the  labour  market  integration  of  young  people  neither  in 
employment nor in education and training. 

As regards the labour market, the Spanish Plan presents a wide array of reforms and 
investments that are expected to contribute to the principles of the European Pillar of 
Social  Rights  and  have  potential  to  address  long-standing  CSRs.  The  Spanish 
Government is still discussing the details of many of these reforms with the social partners. A 
simplification  of  the  menu  of  contracts  and  a  review  of  hiring  incentives  aim  to  generalise 
employment  on  open-ended  contracts,  thereby  reducing  high  levels  of  labour  market 
segmentation. Working conditions of specific groups may improve on the back of the reforms 
on  teleworking,  platform  workers  –riders,  and  subcontracting.  The  new  mechanism  for 
flexibility  for  firms  and  stability  for  workers  based  on  the  experience  gathered  with  short-
time work schemes (ERTEs) intends to improve internal flexibility in firms as an alternative 
to  job  destruction,  while  reskilling  workers  at  risk  of  displacement  and  promoting  labour 
mobility. A EUR 434 million investment is foreseen in Component 23 (Labour Market) for 
the  purpose  of  training  these  workers.  Active  labour  market  policies  (ALMP)  and  public 
employment  services  (PES)  will  be  modernised  with  a  view  to  provide  a  more  effective 
support 
(including 
jobseekers.  The  system  of  non-contributory  cash  benefits 
unemployment  assistance)  will  be  streamlined.  Plans  to  strengthen  cooperation  between 
employment and social services and to facilitate labour market integration of people at risk of 
exclusion will build on the nationwide minimum income scheme (‘MVI’).  

to 

The Spanish RRP intends to mitigate pre-existing high levels of risk of poverty or social 
exclusion, which are expected to pick up in the context of the COVID-19 crisis. Reducing 
income  inequality  is  an  overarching  priority  of  the  plan.  According  to  the  macroeconomic 

65 

 
impact  assessment,  the  income  distribution  would  be  affected  through  both  the  supply  and 
demand  channel.  First,  the  increase  in  public  investment  is  expected  to  increase  the  total 
capital stock in the economy, thereby generating greater demand for employment. Likewise, 
GDP growth and higher income for economic agents is expected to create further demand for 
employment. Second, investments in the plan in the area of skills are expected to impact the 
composition  of  labour  force  in  the  medium-long  run  through  the  upskilling  of  low-skilled 
workers,  directly  affecting  the  wage  distribution  across  active  workers.  According  to  the 
Spanish authorities, this is expected to contribute to reducing the GINI index, now above 30 
points and slightly above the euro area average, by 5,7% over a 10-year period, in line with 
the GINI coefficients of the Nordic countries.   

Spain  envisages  a  set  of  measures  aiming  at  increasing  the  activity  rate  and  the 
productivity of women on the labour market in its Component 23 (Labour Market). To 
reduce  the  gender  gap  in  the  labour  market,  the  plan  includes  two  Royal  Decree-Laws  on 
equal  pay  for  men  and  women  and  on  equality  plans  for  all  companies  with  more  than  50 
workers.  Measures  will  also  be  implemented  to  combat  gender-based  violence  and  support 
labour market integration of women. The Plan also foresees increase in public investment in 
early childhood education and care for 0 to 3-year-olds,  the Care  Economy  Shock Plan  and 
the  reinforcement  of  inclusion  policies.  The  authorities  intend  to  boost  the  participation  of 
women in senior positions in strategic areas and in sectors where their presence is still low, 
thereby  contributing  to  a  more  efficient  allocation  of  talent  and  reconciling  the  goal  of  a 
smaller gender gap with higher productivity growth. 

The main objective of the pension reform to be agreed in the context of social dialogue is 
to maintain the purchasing power of pensioners over time, in line with practices in other 
Member  States,  while  preserving  the  long-term  sustainability  of  the  pension  system. 
Under  the  current  system,  the  adequacy  of  pensions  is  among  the  highest  in  the  EU  and 
would remain above the EU average in the long term (both in terms of high replacement rates 
and low poverty risk of pensioners).  

The Spanish RRP also includes a plan to boost social policies in its Component 22 (Care 
Economy, equality and inclusion). With one of the highest rates of child poverty in the EU 
and one of the lowest levels of support for families, Spain commits to improve the coverage 
of  benefits  for  children  that  were  not  sufficiently  protected  through  a  new  law  on  family 
protection.  Spain  will  also  carry  out  a  comprehensive  reform  of  the  tax  system,  which  will 
include a review of its distributional impact for families with children. 

The Action  Plan for the Care Economy also  include reforms and investments that are 
designed  to  strengthen  long-term  care,  responding  to  the  impacts  of  an  ageing 
population and an increasing demand for long-term care. The actions are geared towards 
promoting  deinstitutionalisation,  including  investment  in  community  care  and  home  care 
solutions, but also include upgrading of institutional care, in line with the UN Convention on 
the Rights of Persons with Disabilities. Finally, within the framework of the Spanish Urban 
Agenda,  investments  in  renovations  of  buildings  in  Component  2  of  the  plan  will  address 
energy  poverty  by  improving  energy  efficiency  and  supporting  the  construction  of  social 
rental  housing.  The  Accessible  Country  Plan  includes  investment  in  ensuring  the  rights  of 
persons with disabilities to access public services.  

66 

 
 
 
Box 4.3.2:  Employment and social challenges in light of the Social Scoreboard accompanying the European 
Pillar of Social Rights 

The  Social  Scoreboard  supporting  the  European  Pillar  of  Social  Rights  points  to  significant  employment  and  social 
challenges  in  Spain.  The  COVID-19  crisis  has  halted  the  positive  labour  market  developments  observed  in  the  past  years, 
exacerbating pre-existing structural problems and generating risks of an increase in the share of people at risk of poverty or social 
exclusion. Short-time work schemes (ERTEs) helped mitigating the impact on the labour market by preserving jobs and income 
of workers in the most affected sectors. Although these schemes have not prevented unemployment to rise and employment to 
drop, they helped containing the effects. Yet the high share of temporary workers amplifies the vulnerability of the Spanish labour 
market to the economic cycle. 

Youth are facing very high rates of unemployment, and the early 
school leaving rate remains among the highest in the EU, despite a 
noticeable  reduction  in  recent  years.  The  share  of  young  people 
neither  in  employment,  nor  in  education  or  training  (NEET)  remains 
high and has increased significantly up to 13,9% in 2020 from 12,1% 
in 2019. Young people have been proportionally more affected by job 
losses  (-15%  employed  aged  15-24  vs  -3,1%  on  average).  Low 
education  levels  significantly  increase  the  risk  of  future  poverty  and 
social exclusion.  

The  share  of  people  at  risk  of  poverty  or  social  exclusion  was 
comparatively  high  in  2019  (before  the  crisis),  especially  among 
children.  Income  inequality  was  also  high  and  social  transfers  other 
than  pensions  had  a  limited  capacity  to  reduce  poverty.  The  national 
minimum  income  scheme  adopted  in  June  2020  has  constituted  a 
major step in providing a minimum floor at national level, for regions 
to  top  up  and  complement  with  their  own  schemes.  The  scheme  is 
compatible  with  other  income  sources  (up  to  the  relevant  threshold). 
The Government is working on stepping up the rollout of the scheme 
and the development of its activation component. 

relevant 

investments 

reforms  and 

The  Recovery  and  Resilience  Plan  submitted  by  Spain  contains  a 
the 
number  of 
implementation  of  the  Pillar.  It  encompasses  specific  measures 
aiming to improve the employability of the youth and reduce further the 
early  school  leaving  rate.  It  also  puts  forward  a  simplification  of  the 
menu of contracts to reduce the use of temporary hiring. The wide array 
of  actions  to  upskill  and  reskill  workers  (including  on  digital  skills), 
together  with  the  modernisation  of  the  vocational  education  and 
training  system,  have  the  potential  to  improve  workers’  employability 
and  thus  raise  the  employment  rates  and  reduce  unemployment.  The 
Plan  also  foresees  specfic  actions  to  further  increase  participation  of 
children  in  formal  childcare,  an  indicator  in  which  Spain  is  already 
among  the  best  performers.  The  capacity  of  the  RRP  to  reduce  the  at 
risk of poverty or social exclusion rate or income inequalities will rely, to a large extent, on its success in addressing labour market 
segmentation and reducing child poverty.   

for 

The reforms envisaged in the area of active labour market policies (ALMPs) have the potential to partly address important 
long-standing CSRs in this domain. The plan encompasses multiple interventions relevant in this area, tacking stock of previous 
recommendations  from  the  independent  fiscal  authority  (AIReF).  They  include  reforming  the  system  of  hiring  incentives, 
developing  individual  pathways  for  counselling,  reinforcing  the  system  of  adult  learning,  setting  up  a  one-stop  shop  for  young 
people,  improving  the  coordination  between  employment  and  social  services  and  modernising  public  employment  services 
(including  the  digitalisation  of  profiling  tools).  To  complement  these  measures,  reinforcing  the  capacity  of  public  employment 
services (including with adequate human resources) will be key to ensure an improved and more efficient delivery of ALMPs. 

67 

Critical situationTo watchWeak but improvingGood but to monitorOn averageBest performersEqual opportunities and access to the labour marketDynamic labour markets and fair working conditionsSocial protection and inclusionSocial Scoreboard for SPAINEarly leavers from education and training (% of population aged 18-24) (2020)Youth NEET (% of total population aged 15-24) (2020)Gender employment gap (2020)Income quintile ratio (S80/S20) (2019)At risk of poverty or social exclusion (in %) (2019)Employment rate (% population aged 20-64) (2020)Unemployment rate (% population aged 15-74) (2020)Long term unemployment (% population aged 15-74) (2020)GDHI per capita growth (2019)Net earnings of a full-time single worker earning AW (2019)Better than averageUpdate of 29 April 2021. Members States are classified on the Social Scoreboard according to a statistical methodology agreed with the EMCO and SPC Committees. It looks jointly at levels and changes of the indicators in comparison with the respective EU averages and classifies Member States in seven categories. For methodological details, please consult the Joint Employment Report 2021; NEET: neither in employment nor in education and training; GDHI: gross disposable household income.Impact of social transfers (other than pensions) on poverty reduction (2019)Children aged less than 3 years in formal childcare (2019)Self-reported unmet need for medical care (2019)Individuals' level of digital skills (2019) 
The  RRP  also  includes  reforms  and  investments  which  are  expected  to  improve  access  to  healthcare,  and  in  doing  so 
contribute to Principle 16 of the Pillar. The Plan will intervene to enhance accessibility of health services in less well derserved 
areas  by  addressing  shortages  of  healthcare  workforce  and  equipment.  Planned  reforms  and  investments  will  also  contribute  to 
expand further the services provided by the system. 

68 

 
 
 
 
Reducing vulnerability and increasing resilience 

The COVID-19 crisis has exacerbated the imbalances that persisted for several years in 
Spain, notably the combination of large stock of external and internal debt, both public 
and  private,  which  were  on  a  downward  path  prior  to  the  outbreak  of  the  pandemic. 
This  leaves  the  country  exposed  to  adverse  shocks  or  shifts  in  market  confidence  which 
would have harmful implications for the real economy, especially given the still high level of 
unemployment.  

The  implementation  of  policy  measures  in  the  RRP  is  expected  to  mitigate  some 
outstanding vulnerabilities of the Spanish economy. Notably, the economic output of the 
investments envisaged in the plan are expected to boost GDP growth in the next years, which 
will be a driver of the needed deleveraging process both in the private and public sector. In 
addition,  measures  may  go  some  way  towards  addressing  the  persistent  labour  market 
segmentation and raising employment  rates. Measures aimed at  the upskilling of the labour 
force can enhance firms’ competitiveness, producing positive spillovers in the economy. 

Measures in a number of components in the plan are also expected to improve  Spain’s 
external debt position by increasing competitiveness and reducing energy imports. The 
reduction of Spain’s external net debtor position in terms of GDP came to a halt in the first 
half  of  2020,  mainly  due  to  the  sharp  contraction  in  GDP.  The  reduction  in  the  level  of 
economic output led Spain's NIIP to worsen from -74% of GDP at the end of 2019 to -84% of 
GDP  by  end-2020.  The  reforms  and  investments  outlined  in  Components  12  (Industrial 
Policy),  13  (Support  to  SMEs)  and  14  (Tourism)  in  the  plan  aim  at  raising  the 
competitiveness of Spain’s business fabric, as well as investments in Components 19 (Digital 
Skills),  20  (Vocational  Training),  21  (Education)  and  23  (Labour  Market)  at  upskilling  the 
labour force and reducing the fragmentation of the labour market. Moreover, investments in 
research  and  innovation  in  Components  16  (Artificial  Intelligence)  and  17  (Science, 
Technology and Innovation) can contribute to enhanced competitiveness, while investments 
in renewable energy and energy efficiency in Components 2 (Renovation), 7 (Renewable), 8 
(Electricity infrastructure), 9 (Hydrogen) and 10 (Just Transition) can contribute to reducing 
energy  imports.  The  commitment  to  the  industry-services  ecosystem,  and  the  boost  to 
entrepreneurship  are  expected  to  account  for  an  estimated  improvement  of  0,2  percentage 
points in the long-term growth rate of exports, according to the Spanish authorities. 

Measures  in  Component  13  (Support  to  SMEs)  of  the  plan  can  also  help  tackle 
increasing private debt. While Spain displayed elevated, but declining, private indebtedness 
since  the  financial  crisis  up  until  2019,  the  private  sector  debt-to-GDP  ratio  increased 
following  the  outbreak  of  the  pandemic  in  spite  of  the  implementation  of  liquidity  and 
guarantee support measures aimed at mitigating its impact. The debt accumulated by the non-
financial private sector increased to 147,4% in the last quarter of 2020, up by 17,1 pps. since 
the  beginning  of  the  year.  Notably,  NFCs  debt  level  stands  30  pps.  and  25  pps.  above  the 
prudential  threshold  and  the  fundamental  benchmark,  respectively.  This  upward  evolution 
reflects both the increase of indebtedness in the corporate sector, which remains a significant 
issue to monitor in the aftermath of the pandemic and, to a larger extent, the sizeable fall in 
GDP experienced by Spain  in  2020. Excessive corporate indebtedness  could  hamper firms’ 
capacity  to  undertake  significant  investments  therefore  limiting  productivity  growth.  The 
Plan  foresees  a  reform  aimed  at  the  modernisation  of  the  insolvency  framework  in  its 

69 

 
Component 13 (Support to SMEs), which is expected to be implemented by the end of 2021. 
It will facilitate preventive debt restructuring and debt relief for natural persons and improve 
the  effectiveness  of  pre-insolvency  and  second  chance  instruments,  with  the  goal  of 
preventing insolvency situations and facilitate resource reallocation.  

Certain  measures  in  Components  11  (Public  administration)  and  29  (Effective  public 
spending)  of  the  plan  are  expected  to  pave  the  way  for  stronger  fiscal  frameworks  in 
Spain. Public debt rose by around 25 percentage points from 2019 to 2020, standing at 120% 
of GDP, primarily due to the large negative government balance, the fall in economic activity 
and  the  inclusion  of  SAREB’s  liabilities  in  the  total  public  debt,  along  with  the  deficit 
increasing  to  11%  in  2020.  While  Spain  does  not  face  fiscal  sustainability  risk  in  the  short 
run, mainly thanks to the current favourable financing conditions on markets, the worsening 
economic  outlook  could  pose  a  challenge  in  the  medium  term.  Prior  to  the  outbreak  of  the 
pandemic,  limited  progress  was  achieved  in  the  field  of  fiscal  governance.  The  crisis 
triggered by the COVID-19 led the authorities to implement policies aimed at cushioning the 
economic  impact  of  the  pandemic  and  fiscal  consolidation  efforts  were  suspended  with  the 
activation of general escape clause of the Stability and Growth Pact. The envisaged policies 
seeking  to  reform  the  public  procurement  system  as  well  as  ensuring  more  efficient  public 
policies, taxation and spending, could lay the ground towards the strengthening of the fiscal 
framework  for  Spain  moving  forward.  Overall,  the  measures  set  out  in  the  plan  contribute 
(albeit in part) to tackling the country’s existing vulnerabilities from a fiscal standpoint.  

Cohesion and convergence 

Territorial cohesion, together with social cohesion, is one of the four axis on which the 
plan is built upon, and it is systematically addressed throughout the ten driving policy areas 
for recovery. Recital 3 of the RRF Regulation recalls that the different starting positions and 
specificities  of  regions  should  be  taken  into  consideration  in  the  implementation  of  Union 
policies.  Efforts  to  reduce  disparities  should  in  particular  benefit  islands  and  outermost 
regions.  The  budget  of  the  recovery  and  resilience  plan  is  not  broken  down  into  regional 
envelopes, and the existing disparities among the autonomous communities in Spain are not 
explicitly  mentioned.  Instead,  the  plan  builds  on  territorial  cohesion  on  the  basis  of  the 
uneven  distribution  of  the  population  throughout  the  national  territory.  The  investments 
actually  address  the  disparities  and  unequal  opportunities  that  exist  between  the  more 
populated urban areas and the declining rural areas, the so-called “demographic challenge”.  

The plan is aligned with the national strategy against the demographic challenge, which 
includes 130 measures to support rural areas and small municipalities The plan includes 
for  example  a  dedicated  investment  to  improve  energy  efficiency  in  municipalities  below 
5 000  inhabitants  in  its  Component  2  (Renovation).  Territorial  cohesion  is  also  promoted 
through the deployment of ultra-fast broadband in its Component 15 (Digital Connectivity). 
Moreover,  initiatives  in  several  components  will  boost  entrepreneurship  in  rural  areas, 
improve access to education (including early childhood education and care, digital skills and 
vocational  education  and  training),  and  support  the  restoration  and  maintenance  of  cultural 
heritage, water management, nature tourism, among others. 

In addition, there is a dedicated component to facilitate a fair green transition in certain 
areas  of  the  country  that  are  particularly  exposed  to  its  economic  and  social 
consequences.  The  objective  of  Component  10  (Just  Transition)  is  to  minimise  the 

70 

 
challenges  arising  from  the  green  transition  in  areas  where  the  main  economic  activity 
currently depends on carbon-intensive and polluting sources of energy, namely coal mining, 
coal-powered plants and nuclear plants that are to be de-committed.  

Conclusion on assessment criterion 2.3 of Annex V to the RRF Regulation 

Taking into consideration all reforms and investments envisaged by Spain, its recovery and 
resilience  plan  is  expected  to  effectively  contribute  to  strengthen  growth  potential,  job 
creation,  and  economic,  social  and  institutional  resilience  of  the  Member  State,  on 
contributing to the implementation of the European Pillar of Social Rights, including through 
the promotion of policies for children and youth, and on mitigating the economic and social 
impact  of  the  COVID-19  crisis,  thereby  enhancing  the  economic,  social  and  territorial 
cohesion  and  convergence  within  the  Union.  This  would  warrant  a  rating  of  A  under  the 
assessment criterion 2.3 of Annex V to the RRF Regulation. 

4.4. The principle of ‘do no significant harm’ 

The  Regulation  establishing  the  Recovery  and  Resilience  Facility  provides  that  no 
measure included in the recovery and resilience plan should lead to significant harm to 
any  of  the  six  environmental  objectives  within  the  meaning  of  Article  17  of  the 
Taxonomy Regulation [44]. In line with the RRF Regulation and the Technical Guidance on 
the  Application  of  ‘do  no  significant  harm’  under  the  Recovery  and  Resilience  Facility 
Regulation  (hereafter  ‘DNSH  Technical  Guidance’) [45],  Member  States  provide  a  ‘do  no 
significant harm’ (DNSH) assessment, on which basis the Commission assesses whether each 
measure of the plans comply with the DNSH principle. Spain has included a detailed DNSH 
assessment for each measure included in its plan. 

The evidence provided on the criteria  used for the selection  and design of measures is 
sufficient to conclude that no measure in the plan is expected to do significant harm to 
environmental  objectives.  By  selecting  measures  that  either  contribute  substantially  to 
environmental objectives, or have no or an insignificant foreseeable impact on environmental 
objectives,  many  measures  in  the  plan  can  be  considered  DNSH  compliant  from  the  outset 
(e.g.  certain  measures  in  education  and  training,  labour  market,  public  administration,  and 
culture and sports). Other measures are designed to ensure compliance with DNSH, including 
broad support schemes that span across sectors and activities (e.g. in R&D&I, and support to 
SMEs).  For  measures  requiring  a  ‘substantive  DNSH  assessment’  according  to  the  DNSH 

[44] The six environmental objectives comprise (1) climate change mitigation, (2) climate change adaptation, (3) 
sustainable use and protection of water and marine resources, (4) the circular economy, (5) pollution prevention 
and control, and (6) protection and restoration of biodiversity and ecosystems. 
[45]  COM  (2021)  C58/01,  Technical  Guidance  on  the  Application  of  ‘do  no  significant  harm’  under  the 
Recovery and Resilience Facility Regulation, as already mentioned in footnote 8.  

71 

 
 
                                                 
Technical  Guidance  (e.g.  sustainable  mobility,  industrial  policy,  digitalisation),  Spain  has 
substantiated that the measures do not lead to significant harm. 

In order to ensure compliance with DNSH, milestones and targets specify that specific 
evidence  and  commitments  are  required  during  the  implementation  of  certain 
measures. This is the case, for example, for measures supporting strategic projects covering 
installations under the EU Emissions Trading System (ETS) and specific waste management 
activities  in  Component  12  (Industrial  Policy),  irrigation  for  agricultural  production  in 
Component 3 (Agri-food and fisheries), and broad support schemes spanning across sectors 
and activities in Components 13 (SME support), 14 (Tourism), and 17 (Science, technology 
and  innovation).  There  are  additional  measures  that  are  designed  with  the  aim  to  ensure 
DNSH  compliance,  including  at  the  level  of  milestones  and  targets  (e.g.  vehicles,  vessels, 
special-purpose aircrafts). 

Component  12  (Industrial  Policy)  of  the  plan  foresees  financial  support  to  strategic 
projects  for  the  recovery  and  transformation  of  Spain’s  industry,  which  may  include 
installations  covered  under  the  EU  Emissions  Trading  System  (ETS).  The  DNSH 
Technical  Guidance  sets  out  that  for  economic  activities  where  there  is  no  technologically 
and  economically  feasible  alternative  with  low  environmental  impact,  Member  States  may 
demonstrate that a measure does no significant harm by adopting the best available levels of 
environmental  performance  in  the  sector.  In  the  context  of  the  EU  ETS,  this  is  particularly 
relevant  for  the  climate  change  mitigation  objective.  Among  other  conditions,  Spain  has 
sought to ensure DNSH compliance by making the selection of supported projects conditional 
upon achieving GHG emissions that are at  least  below the relevant  benchmarks established 
for  free  allocation [46].  Where  the  emission  reductions  are  not  substantially  lower  than  the 
relevant  benchmarks,  Spain  has  committed  to  provide  an  explanation  on  why  this  level  of 
emission  reductions  cannot  be  achieved.  This  condition  is  substantiated  in  the  component 
description  (as  reflected  in  the  proposal  for  a  Council  Implementing  Decision),  included  in 
the DNSH  assessment and incorporated in  the  milestones and targets  for this measure. The 
selection criteria additionally are designed to exclude specific activities such as those related 
to fossil fuels, indirect ETS cost compensation, the disposal of waste in landfills mechanical 
biological  treatment  plants  or  incinerators,  among  others,  and  ensure  that  activities  comply 
with the relevant EU and national environmental legislation. This is expected to ensure that 
projects supported under the Facility are in accordance with the DNSH Technical Guidance 
and  do  not  lead  to  significant  harm  to  any  of  the  six  environmental  objectives  within  the 
meaning of Article 17 of the Taxonomy Regulation. 

Spain  aims  to  improve  waste  management  practices,  including  waste  collection, 
recycling and circular economy measures mainstreamed across the plan. This comprises 
dedicated  measures  in  Component  12  (Industrial  Policy)  and  mainstreamed  actions  in 
Components 2 (Renovation), 3 (Agri-food and fisheries), 4 (Ecosystems and biodiversity), 5 

46 Benchmarks as set out in the Commission Implementing Regulation (EU) 2021/447. 

72 

 
                                                 
(Coast  and water resources) and 14 (Tourism). As part of this set  of interventions, Spain  is 
planning  to  increase  the  resource  efficiency  of  existing  mechanical  biological  treatment 
(MBT) facilities. Article 17 of the Taxonomy Regulation stipulates that no measure can lead 
to a significant increase in the incineration or landfilling of waste to avoid doing significant 
harm to the circular economy objective, including as a primary indirect effect of the measure. 
Spain seeks to ensure DNSH compliance by committing as part of the milestones and targets 
to improving the resource efficiency or retrofitting to recycling operations of separated waste 
to  compost  bio-waste  and  anaerobic  digestion  of  bio-waste  only  existing  MBTs  without 
leading to an extension in the capacity or lifetime of the assets. This will be ensured at plant 
level. Therefore, the measure is designed to be DNSH compliant, as it is not expected to lead 
to a significant increase in the incineration or landfilling of waste.  

The  RRP  of  Spain  also  aims  to  improve  the  efficiency  and  sustainability  of  irrigation 
through  measures  in  Component  3  (Agri-food  and  fisheries),  which  is  considered  DNSH 
compliant  since  reclaimed  water  is  being  used,  water  efficiency  improved  and  investments 
only covers existing irrigation activities. Spain aims to modernise and upgrade its irrigation 
system  for  the  agri-food  sector  in  line  with  the Water  Framework  Directive  [47].  To  ensure 
DNSH compliance, in particular with the sustainable use and protection of water and marine 
resources  objective,  Spain  introduced  selection  criteria  for  the  projects  supported  under  the 
Facility.  The  plan  exclusively  invests  in  existing  irrigation  activities  and  commits  to 
complying  with  the  minimum  requirements  for  water  reuse  as  set  out  in  Regulation  (EU) 
2020/741.  This  includes  replacing  surface  or  groundwater  with  reclaimed  water,  and 
modernising the irrigation system to reduce energy consumption, integrate renewable energy 
sources and digitalise the network. Where desalinated water is being used, it will be ensured 
that only the best available technology with the lowest environmental impacts in the sector is 
being used. Additionally, an environmental impact assessment is  expected to be carried out 
for  each  investment  in  accordance  with  Directives  2011/92/EU [48]  and  92/43/EEC [49]. 
Therefore, DNSH compliance is ensured by the design of the measure, which is documented 
as part of the component description and the DNSH assessment. 

The plan also comprises several broad measures spanning across sectors and activities, 
which  are  designed  to  ensure  DNSH  compliance.  The  plan  contains  several  broad 
measures,  including  to  support  R&D&I  as  well  as  SMEs.  The  selection  criteria  for  the 
measures comprise an exclusion list that excludes fossil fuels, activities with projected GHG 
emissions  that  are  not  at  least  below  the  ETS  benchmarks  for  free  allocation,  incinerators, 
landfills,  among  others.  Spain  seeks  to  ensure  that  the  activities  supported  comply  with 

[47]  Directive  2000/60/EC  of  the  European  Parliament  and  of  the  Council  of  23  October  2000  establishing  a 
framework for Community action in the field of water policy, http://data.europa.eu/eli/dir/2000/60/2014-11-20. 
[48]  Directive  2011/92/EU  of  the  European  Parliament  and  of  the  Council  of  13  December  2011  on  the 
assessment 
environment, 
http://data.europa.eu/eli/dir/2011/92/2014-05-15. 
[49] Council Directive 92/43/EEC of 21 May 1992 on the conservation of natural habitats and of wild fauna and 
flora, http://data.europa.eu/eli/dir/1992/43/2013-07-01. 

projects 

private 

certain 

effects 

public 

and 

the 

the 

on 

of 

of 

73 

 
                                                 
DNSH also by committing to the application of all relevant EU and national environmental 
legislation. For financial instruments, Spain proposes to apply the aforementioned exclusion 
list or compliance with the DNSH Technical Guidance as part of the contractual agreement 
with the executing entity or financial intermediary. For instance, Component 13 (Support to 
SMEs)  sets  out  a  digitalisation  and  innovation  measure  for  which  the  implementing  entity 
will  be  expected  to  ensure  DNSH  compliance  as  part  of  the  selection  of  projects.  Through 
this  approach,  Spain  ensures  that  the  broad  measures  included  in  the  plan  are  designed  to 
comply with the DNSH principle. 

Conclusion on the assessment of criterion 2.4 of Annex V to the RRF Regulation 

Taking  into  account  the  assessment  of  all  the  measures  envisaged,  no  measure  for  the 
implementation  of  reforms  and  investments  projects  included  in  Spain’s  recovery  and 
resilience  plan  is  expected  to  do  significant  harm  to  environmental  objectives  within  the 
meaning of Article 17 of the Taxonomy Regulation (EU) No 2020/852 (the principle of ‘do no 
significant  harm’).  This  would  warrant  a  rating  of  A  under  the  assessment  criterion  2.4  of 
Annex V to the Recovery and Resilience Facility Regulation. 

4.5. Green transition  

Climate target 

The plan includes measures supporting climate change objectives for an amount which 
represents  39,7%  of  the  plan’s  total  allocation  in  the  form  of  non-repayable  financial 
contribution  (EUR 27,6  billion  out  of  EUR 69,5  billion),  based  on  the  methodology  for 
climate tracking set out in Annex VI of the Recovery and Resilience Facility Regulation (the 
table  in  Annex  6.1  presents  the  detailed  application  of  the  climate  tracking  methodology). 
This  exceeds the minimum  climate target  of 37% as set  out  in the  Regulation.  The  climate 
change  contribution  of  each  of  the  components  of  the  plan  is  set  out  in  Table  4.5.1  below. 
Ten components  make up almost  94% of the total  climate contribution  of the recovery  and 
resilience plan. The largest contributions come from the components on renovation (20% of 
overall climate contribution), mobility (18% for long-distance mobility and 17,5% for urban 
mobility) and renewable energy (12% from renewables and 6% from renewable hydrogen).  

The RRP of Spain correctly follows the methodology for climate tracking as set out in 
Annex VI to the RRF regulation. The plan identifies intervention fields and corresponding 
climate  coefficients  to  calculate  the  contribution  of  the  plan  to  the  climate  objectives.  This 
approach  is  applied  for  each  measure  of  the  plan  with  a  relevant  climate  contribution. 
Specific  safeguards  were  introduced  via  selection  criteria  for  the  investments  and  specific 
provision in milestones and targets, to ensure that the characteristics of the measures funded 
through the Facility are in line with the condition set out in Annex VI. This is particularly the 
case for energy renovation investments under Components 1 (Sustainable urban mobility), 2 
(Renovation),  6  (Sustainable  long-distance  mobility),  11  (Public  Administration),  and 
industrial projects under Component 12 (Industrial Policy).  

A  few  general  observations  can  made  on  the  application  of  the  climate  tracking 
methodology  in  the  plan.  (a)  The  measures  of  the  plan  often  consist  of  several  sub-
measures.  For  measures  where  that  is  the  case,  the  plan  indicates  an  intervention  field  for 
each relevant sub-measure, and the climate contribution is therefore computed at sub-measure 

74 

 
level.  (b)  The  choice  of  intervention  fields  for  the  climate  objectives  is  well  justified, 
reflecting  the  main  nature,  focus,  objective,  or  expected  outcome  of  the  reforms  and 
investments.  (c)  The  final  computation  of  the  climate  contribution  is  a  conservative 
calculation. The plan submitted by Spain is a complex and large plan in which climate related 
measures  appear  under  several  components  and  a  large  number  of  measures  and  sub-
measures. To capture all these contributions with the climate tracking methodology set out in 
the RRF Regulation would have required to single out systematically all these sub-elements. 
This  would have further fragmented the plan, increasing its level  of complexity. Therefore, 
the plan also includes some sub-measures related to climate that are not fully accounted for in 
the  figure  of  the  overall  climate  contribution  of  the  plan.  (e)  The  plan  does  not  propose  to 
increase climate coefficients of the selected intervention fields for any measure. 

Table  4.5.1:  Climate  contribution  by  component  (only  for  components  with  a 
contribution) 

Component 

Estimated 
costs (EUR 
m) 

Climate 
contributio
n (EUR m) 

Climate 
contribution 
as 
percentage 
of 
component 
costs 

Climate 
contribution 
as 
percentage 
of the plan’s 
total 
allocation* 

02. Renovation 
06. Sustainable long-
distance mobility  
01. Sustainable urban 
mobility 
07. Renewables 
09. Hydrogen 
12. Industrial policy 
08. Electricity 
infrastructure 
05. Coast and water 
resources 
11. Public administration 
04. Ecosystems and 
biodiversity 
14. Tourism 
03. Agri-food and 
fisheries 
23. Labour market 
20. Vocational training 
10. Just transition 
26. Sports 
17. Science, technology 
and innovation 
All components with a 
climate contribution 

6 820 

6 667 

6 536 

3 165 
1 555 
3 782 

1 365 

2 091 

4 239 

1 642 

3 400 

1 051 

2 363 
2 076 
300 
300 

3 457 

5 591 

4 937 

4 737 

3 165 
1 555 
1 398 

1 365 

1 226 

1 071 

759 

655 

418 

222 
158 
150 
134 

49 

82,0% 

74,1% 

72,5% 

100,0% 
100,0% 
37,0% 

100,0% 

58,6% 

25,3% 

46,2% 

19,3% 

39,7% 

9,4% 
7,6% 
50,0% 
44,7% 

1,4% 

8,0% 

7,1% 

6,8% 

4,6% 
2,2% 
2,0% 

2,0% 

1,8% 

1,5% 

1,1% 

0,9% 

0,6% 

0,3% 
0,2% 
0,2% 
0,2% 

0,1% 

27 589 

39,7% 

39,7% 

39,7% 

* The plan’s total allocation in the form of non-repayable financial contribution equals EUR 69 513 million.  

75 

Cumulative 
climate 
contribution 
as 
percentage 
of the plan’s 
total 
allocation* 
8,0% 

15,1% 

22,0% 

26,5% 
28,8% 
30,8% 

32,7% 

34,5% 

36,0% 

37,1% 

38,1% 

38,7% 

39,0% 
39,2% 
39,4% 
39,6% 

39,7% 

 
 
Energy efficiency 

The plan includes significant investment in energy  renovation of buildings, in line with 
the  Renovation  Wave.  The  construction  and  use  of  buildings  represent  25%  of  all  GHG 
emissions in Spain, and the investments in the renovation of buildings are expected to yield 
significant energy savings, resource efficiency gains and reductions in GHG emissions. In the 
plan,  EUR 7,8  billion  will  be  devoted  to  the  renovation  of  residential  dwellings,  public 
buildings  and  urban  rehabilitation  in  Component  2  (Renovation),  for  public  buildings  in 
Component  11  (Public  Administration),  and  for  sports  facilities  in  Component  26  (Sports). 
These  measures  are  in  line  and  support  the  ambitions  of  the  Spanish  Long  Term  Building 
Renovation  Strategy [50].  The  investments  will  generate  employment  in  the  short  term,  and 
for most measures will result in an average primary energy demand reduction of at least 30% 
compared to the situation prior to the renovation.  

Despite the significant investment, additional public funding will be needed to deliver on 
the energy savings objectives of the NECP. Component 2 (Renovation) foresees EUR 6,8 
billion to renovate (i) at least 355 000 unique residential dwellings as part of at least 510 000 
renovation  actions,  (ii)  at  least  600  hectares  of  urban  areas,  (iii)  an  equivalent  of  at  least 
40 000 residential buildings and 690 000 m2 of non-residential buildings, (iv) at least 26 000 
residential buildings in municipalities and urban areas with fewer than 5 000 inhabitants, and 
(v)  at  least  1 230 000 m2  of  public  buildings  by  2026.  The  underlying  investments  in 
residential building renovations amount to an important share of the public support foreseen 
in the NECP, and are expected to contribute to the energy saving target  by 2030 and to the 
objective set in the NECP in terms of number of dwellings to be renovated (albeit to a more 
limited  extent).  This  will  need  to  be  addressed  with  additional  investments  to  achieve  the 
NECP  objectives,  in  particular  by  ensuring  a  relatively  higher  leverage  factor  for  private 
investments. The NECP plans to leverage private funds equivalent to three times the volume 
of public funds, which is higher than what the component is likely to achieve. In this context, 
a  regulatory  reform  is  foreseen  in  the  component  to  foster  private  investments,  notably  by 
facilitating  communities  of  owners  to  borrow  and  by  providing  Instituto  de  Crédito  Oficial 
(ICO) guarantees to banks for lending for this purpose. 

Effort sharing  

The  RRP  is  expected  to  contribute  to  Spain  achieving  its  existing  2030  target  of  26% 
GHG  emissions  reduction  compared  to  2005  for  sectors  under  the  Effort  Sharing 
Regulation  (‘ESR’),  including  transport,  agriculture,  waste  and  buildings.  Components  1 
(Sustainable  urban  mobility)  and  6  (Sustainable  long-distance  mobility)  focus  on  reducing 
GHG  emissions  from  transport,  which  will  contribute  significantly  to  achieving  the  ESR 
target, as it is the sector in which GHG emissions continue to grow most. By helping Spain to 
reach its existing 2030 target for GHG emissions reduction, the RRP will also support Spain 

[50] Castellazzi et al., 2019 

76 

 
                                                 
in its contribution to meeting the EU’s increased climate ambition to reduce net greenhouse 
gas  emissions  by  at  least  55%  by  2030  compared  to 1990,  as  agreed  by  the  European 
Parliament and the Council within the Climate Law. 

Spain  earmarks  a  substantial  financial  envelope  to  sustainable  regional  and  urban 
mobility  (EUR  13,2  billion).  The  plan  will  contribute  to  achieving  internationally  agreed 
decarbonisation  and  air  quality  objectives  through  a  transformation  of  urban  environments. 
Spain  will  favour  active  modes  of  transport  (walking  and  cycling),  entice  the  use  of  public 
transport  (investing  in  availability  and  quality)  and  increase  the  penetration  of  electric 
mobility. Investments in recharging and boosting electric vehicle infrastructure should lead to 
the installation of 80 000 to 110 000 recharging points, and achieve a fleet of at least 250 000 
plug-in  electric  vehicles  by  2030  (EUR 2  billion).  It  will  also  create  low-emission  zones  in 
municipalities  with  more  than  50 000  inhabitants  and  provinces’  capitals,  with  the  goal  of 
reducing  private  traffic  by  35%  (EUR 2,9  billion).  This  will  also  contribute  to  reducing  air 
pollution.  Spain  will  also  improve  the  quality  and  reliability  of  the  Cercanías  (light  rail) 
service (EUR 1,6 billion). The plan will disincentivise the use of road transport by charging 
tariffs  for  the  use  of  roads.  As  regards  inter-regional  sustainable  mobility,  Spain  plans  to 
prioritise  investments  in  the  rail  network,  including  European  Corridors  (EUR 3,2  billion) 
and  Trans-European  Network  for  Transport  Program  (EUR  1,8  billion).  The  envisaged 
solutions  take  advantage  of  the  opportunities  offered  by  the  digitalisation  of  transport 
(EUR 800  million).  Inter-modality  will  also  be  promoted,  with  a  particular  focus  on 
enhancing  rail  transport  (EUR 840  million).  These  support  the  Recharge  and  Refuel 
European Flagship.  

Renewable energy 

The  plan  includes  investments  in  renewable  energy  generation  and  a  flexible, 
decentralised  and  dynamic  electricity  system  (EUR 4,5  billion).    The  plan  focuses  on 
further developing energy from renewable sources (offshore wind), renewable hydrogen and 
the sectorial integration of renewable energy. The recently adopted Law on Climate Change 
and  Energy  Transition  has  established  the  renewable  targets  for  2030  and  the  objective  of 
climate  neutrality  by  2050  (including  a 100%  renewable  electricity  system) [51].  Spain  will 
invest  considerably  in  the  integrated  renewable  generation  in  buildings,  industrial  and 
transport sectors, promote renewable thermal energy and in reducing consumer energy bills. 
Spain will foster citizens’ participation via renewable self-consumption and renewable/citizen 
energy  communities.  The  most  represented  renewable  technologies  are  solar,  for  thermal 
needs  for  residential,  service  and  industrial  sector,  bioenergy  for  electricity  and  thermal 
applications, offshore wind and other marine energy. Furthermore, investments will promote 
smart electricity grids and deploy storage capacities, with an investment of EUR 700 million 
to address the transition to clean energy in the Balearic and Canary islands.  

[51] Ley 7/2021, de 20 de mayo, de cambio climático y transición energética, BOE 121, 21 May 2021,  
https://www.boe.es/eli/es/l/2021/05/20/7. 

77 

 
                                                 
Renewable Hydrogen 

Spain  also  plans  investment  in  the  renewable  hydrogen  value  chain  (EUR 1,6  billion). 
Component 9 (Hydrogen) envisages strengthening the existing value chain, based on SMEs 
and technology centres, to build a cluster of large-scale renewable hydrogen production and 
sectoral  integration.  Ultimately,  the  national  value  chain  and  knowledge  centres  should  be 
integrated  into  EU  value  chains  through  participation  in  planned  EU  initiatives  such  as  the 
Important Project of Common European Interest (IPCEI) on Hydrogen.  

Circular economy and waste management   

Spain  is  taking  advantage  of  the  RRF  to  address  the  existing  challenges  on  waste 
management and to foster the circular economy. The measures aiming at improving waste 
management  are  included  in  Component  12  (Industrial  Policy)  as  part  of  the  revamped 
industrial policy. This component includes a reform of the waste management legislation and 
the  implementation  of  the  recently  adopted  Spanish  Strategy  on  Circular  Economy,  in  line 
with  the  requirements  under  EU  environmental  law  and  the  EU  Circular  Economy  Action 
Plan  that  is  part  of  the  European  Green  Deal.  This  reform  is  accompanied  by  investments 
(EUR 850 million) supporting the implementation of the waste legislation and the promotion 
of  the  circular  economy.  The  actions  supported  are  in  the  upper  echelons  of  the  waste 
hierarchy, as detailed in Section 4.4. The transition towards the circular economy is boosted 
in a wide range of areas, with a special focus on the business sector, and mainstreamed across 
the plan. 

Water and land management 

Improving water management is one of the main environmental challenges that Spain is 
facing  and  the  plan  is  expected  to  address  existing  investment  needs  in  Component  5 
(Coast  and  water  resources).  The  component  (EUR 2,1  billion)  seeks  to  support  the 
preservation  of  the  coastline  and  of  water  resources  through  three  main  objectives:  (i)  the 
improvement  of  the  water  management  policy,  though  hydrological  planning,  legal  and 
policy  reforms,  and  water  investments,  (ii)  the  implementation  of  a  policy  to  protect  the 
coastline  in  the  context  of  climate  change  adaptation,  (iii)  the  protection  of  the  marine 
environment, improving the implementation of the marine strategies and the maritime spatial 
planning.  This  scope  is  pertinent,  since  Spain  has  a  long  coastline,  suffering  high 
environmental  pressures,  and  it  is  amongst  the  most  vulnerable  EU  countries  to  climate 
change.  Spain  is  also  likely  to  fall  short  of  the  full  implementation  of  the  Marine  Strategy 
Framework  Directive [52],  where  the  achievement  of  good  environmental  status  by  2020 
requires  further  efforts.  The  plan  will  support  the  preservation  of  coastline  and  water 
resources by investing in the digitalisation of the sector, monitoring, use of new technologies, 

[52]  Directive  2008/56/EC  of  the  European  Parliament  and  of  the  Council  of  17  June  2008  establishing  a 
policy,  
the 
in 
framework 
http://data.europa.eu/eli/dir/2008/56/2017-06-07. 

environmental 

of  marine 

community 

action 

field 

for 

78 

 
                                                 
restoring rivers ecosystems and promoting nature-based solutions. The plan also aims to close 
the gap on water investments (wastewater, leakages reduction, water reuse, floods prevention, 
etc.) that will contribute to climate change adaptation. It also promotes rivers restoration and 
aquifers recovery. It includes relevant reforms, including improving groundwater quality and 
reducing  nitrates  pollution,  although  it  could  be  more  ambitious  addressing  water  demand 
management.  

The  plan  includes  a  component  dedicated  to  the  sustainability  and  competitiveness  of 
the agri-food and fisheries sector (Component 3), which is particularly relevant for the 
Spanish  economy  (EUR 1  billion).  The  measures  aim  to  improve  the  quality  of  the  final 
products,  modernise  animal  and  plant  health  laboratories,  improve  capacity  building  and 
biosecurity systems in livestock farming, strengthen prevention and protection against pests 
of  plants,  develop  the  circular  economy  of  the  sector,  promote  precision  agriculture  and 
further organic production (Spain is one of the most advanced Member States in the sector), 
promote  seasonal  and  local  consumption,  promote  precision  agriculture  and  reduce  food 
waste.  There  are  investments  aimed  at  rural  areas,  to  curb  depopulation,  and  significant 
investments in irrigation systems and investments to digitalise the sector. Furthermore, there 
are  investments  to  strengthen  the  network  of  marine  reserves  of  fishing  interest,  to  boost 
fisheries  and  oceanographic  research  and  to  have  an  impact  on  the  fight  against  illegal 
fishing.  Component  3  (Agri-food  and  fisheries)  will  also  contribute  to  reducing  GHG 
emissions from agriculture by developing a general register of Best Available Techniques on 
farms and as support for the calculation, monitoring and reporting of emissions in livestock 
farming.  In  addition,  Spain  will  review  the  legislation  on  livestock  sectors  to  establish 
individual sectoral emissions reduction commitments.   

Climate change adaptation and mitigation through biodiversity actions 

Component 4 (Ecosystems and biodiversity) is a good example of the use of the RRF for 
the protection and restoration of biodiversity and ecosystems (EUR 1,6 billion). It aims 
at  increasing  the  scientific  and  technical  knowledge  in  this  domain,  as  well  as  boosting 
digitalisation. Spain will invest in measures that contribute to climate change mitigation and 
adaptation,  including  a  sustainable  forest  management  and  fire  prevention  policy,  and 
measures  to  address  soil  erosion  and  desertification.  The  plan  also  includes  reforms  and 
investments related to the protection, conservation and restauration of marine and terrestrial 
ecosystems  and  their  biodiversity,  conservation  of  protected  habitats  and  species,  the  fight 
against  invasive  alien  species,  etc.,  in  line  with  the  new  EU  Biodiversity  Strategy [53] 
included in the European Green Deal. Actions also ensure ecological connectivity based on 
nature-based solutions and promote green infrastructure. The investments also cover an urban 
greening programme, with the aim of promoting green infrastructure to increase biodiversity, 

[53] Communication from the Commission to the European Parliament, the Council, the European Economic and 
Social Committee and the Committee of the Regions, EU Biodiversity Strategy for 2030 Bringing nature back 
into our lives, COM (2020)380 final,  

79 

 
                                                 
soil permeability and natural connectivity in urban areas. In preserving and restoring natural 
capital, the component supports the objective of Component 14 (Tourism) to further promote 
sustainable tourism. 

A fair green transition 

The  plan  takes  measures  to  ensure  that  the  green  transition  is  done fairly, notably  by 
enhancing greener taxation in Component 28 (Tax system reform) and ensuring a Just 
Transition in Component 10 (EUR 300 million). Measures include a reform on taxes that 
should  contribute  to  reducing  GHG  emissions,  through  the  reduction  of  the  production  of 
non-reusable plastic packaging, more effective taxation on fluorinated gases, and new waste 
taxes  on  landfilling  and  incineration  to  promote  the  circular  economy.  Additionally,  the 
alignment  of  tax  rates  on  mineral  oils  used  as  fuel  to  their  polluting  power,  and  taxes 
encouraging more sustainable mobility, such  as for the registration  and use of vehicles, are 
included  in  the  plan.  The  plan  aims  to  address  the  economic  and  social  impact  in  the 
geographical  areas  affected  by  the  green  transition.  Investments  seek  to  support  upskilling 
and  reskilling,  diversification  and  job  creation,  as  well  as  upgrades  to  the  environment  and 
infrastructure  in  those  areas  to  improving  their  attractiveness.  Investments  also  aim  at  the 
environmental restoration and upgrading of the targeted areas, as well as at supporting R&D 
and innovation (hydrogen energy storage). 

Conclusion on the assessment of criterion 2.5 of Annex V 

Taking  into  consideration  the  assessment  of  all  the  measures  envisaged,  the  recovery  and 
resilience plan is expected, to a large extent, to make a significant contribution to the green 
transition or to address the challenges resulting from it and ensures that at least 37% of its 
total  allocation  contribute  to  the  climate  target.  This  would  warrant  a  rating  of  A  under 
criterion 2.5 of Annex V to the RRF Regulation. 

4.6. Digital transition 

Digital tagging  

The  RRP  of  Spain  correctly  follows  the  methodology  for  digital  tagging  set  out  in 
Annex VII  to  the  RRF  regulation,  by  identifying  intervention  fields,  and  corresponding 
coefficients for the calculation of support to the digital objectives, for each measure (the table 
in Annex 6.1 presents the detailed application of the digital tagging methodology). It should 
be noted that:  

a)  only  two  of  the  reform  measures  relevant  for  the  digital  objective  (the  two  first 
reforms  in  Component  15  (Digital  Connectivity))  have  a  cost  associated  and  can  be 
tagged. The other reforms related to the digital objective do not have any associated 
cost within the RRP and can thus not contribute to reaching the digital target, in line 
with the methodology set out in the RRF. However, they would still have a positive 
impact in addressing the challenges of the digital transition 

b)  the measures  of the plan often consist  of several  sub-measures.  For measures where 
that  is  the  case,  the  plan  indicates  an  intervention  field  for  each  sub-measure,  and 
digital tagging is computed at sub-measure level 

80 

 
c)  the choice of intervention fields for the digital transition is well justified and it reflects 
the nature, focus, objective, or expected outcome of the investments  included in  the 
component 

d)  the  final  computation  of  the  digital  contribution  is  a  conservative  calculation.  The 
plan submitted by Spain is complex and large. Digital related measures appear under 
several components and a large number of measures and sub-measures. Capturing all 
these contributions with the digital tagging methodology set-out in the RRF regulation 
would have required to single out systematically all these sub-parts. This would have 
fragmented further the plan increasing its level of complexity. Therefore, the plan also 
includes  digital  related  investments  that  are  not  accounted  in  the  digital  tagging 
methodology but nevertheless are expected to contribute to the digital transition 

e)  the  plan  does  not  propose  to  increase  the  digital  coefficients  of  the  selected 

intervention fields for any measure. 

Overall,  the  recovery  and  resilience  plan’s  contribution  to  the  digital  objectives  amounts  to 
EUR 19,6  billion  that  is 28,2%  of  the  plan’s  total  allocation  in  the  form  of  non-repayable 
financial  contribution  of  EUR 69,5  billion.  This  is  significantly  above  the  20%  minimum 
requirement for the digital target.  

Table  4.6.1:  Digital  contribution  by  component  (only  for  components  with  a 
contribution) 

Component 

Estimated 
costs (EUR 
m) 

Digital 
contribution 
(EUR m) 

15. Digital connectivity 
13. Support to SMEs 
19. Digital skills 
11. Public 
administration 
12. Industrial policy 
08. Electricity 
infrastructure 
14. Tourism 
22. Care economy, 
equality and inclusion 
16. Artificial 
Intelligence 
06. Sustainable long-
distance mobility  
05. Coast and water 
resources 
23. Labour market 
20. Vocational training 

3 999 
4 894 
3 593 

4 239 

3 782 

1 365 

3 400 

2 492 

500 

6 667 

2 091 

2 363 
2 076 

3 999 
3 680 
3 593 

3 165 

952 

546 

523 

501 

500 

445 

380 

222 
194 

81 

Digital 
contribution 
as 
percentage 
of 
component 
estimated 
costs 

Digital 
contribution 
as 
percentage 
of the total 
plan’s total 
allocation * 

100,0% 
75,2% 
100,0% 

74,7% 

25,2% 

40,0% 

15,4% 

21,0% 

100,0% 

6,7% 

18,2% 

9,4% 
9,4% 

5,8% 
5,3% 
5,2% 

4,6% 

1,4% 

0,8% 

0,8% 

0,7% 

0,7% 

0,6% 

0,5% 

0,3% 
0,3% 

Cumulative 
digital 
contribution 
as 
percentage 
of the plan’s 
total 
allocation to 
* 
5,8% 
11,0% 
16,2% 

20,8% 

22,1% 

22,9% 

23,7% 

24,4% 

25,1% 

25,8% 

26,3% 

26,6% 
26,9% 

 
25. Audiovisual  
21. Education 
04. Ecosystems and 
biodiversity 
01. Sustainable urban 
mobility  
18. Reform of health 
system 
24. Cultural industry 
26. Sports 
03. Agri-food and 
fisheries 
All components with a 
digital contribution 

200 
1 648 

1 642 

6 536 

1 069 

325 
300 

1 051 

155 
147 

138 

119 

100 

96 
76 

62 

77,5% 
8,9% 

8,4% 

1,8% 

9,4% 

29,5% 
25,2% 

5,9% 

0,2% 
0,2% 

0,2% 

0,2% 

0,1% 

0,1% 
0,1% 

0,1% 

27,1% 
27,3% 

27,5% 

27,7% 

27,8% 

28,0% 
28,1% 

28,2% 

19 591 

28,2% 

28,2% 

28,2% 

* The plan’s total allocation in the form of non-repayable financial contribution equals EUR 69 513 million.  

As  seen  in  Table  4.6.2,  21  out  of  30  components  have  a  digital  contribution  that  has  been 
tagged  accordingly  to  the  methodology  set  out  in  Annex VII  to  the  RRF  regulation.  This 
reflects  a  broad  cross-cutting  approach  followed  by  the  plan  in  which  digital  related 
investments are included in the majority of the targeted policy areas and specific components. 
Some digital related investments have a horizontal and general focus, with measures, such as 
in  connectivity  or  general  measures  for  SMEs,  that  would  benefit  large  groups  of  the 
population and of the business sector. Other measures are sector specific with targeted actions 
in several sectors such as tourism, agri-food, culture. industry and transport. 

The  digital  related  expenditure  is  nevertheless  concentrated  in  four  main  components 
that  alone  account  for 20,8%  of  the  plan’s  total  allocation.  These  are  Component  15 
(Digital  Connectivity))  whose  budget  fully  contributes  to  the  digital  target,  Component  13 
(Support to SMEs), Component 19 (Digital Skills) whose budget also fully contributes to the 
digital target, and Component 11 (Public administration). 

Digital transition 

Spain is a medium performer in terms of digital indicators in the EU as it achieves high 
scores in terms of connectivity and digital public services, but it slightly underperforms 
the EU average in digital skills, and reaches average values for the integration of digital 
technologies  in  the  business  sector.  The  strengths  and  weaknesses  of  Spain  in  this  area 
became  more  apparent  during  the  COVID-19  crisis.  Urgent  action  to  address  the  digital 
transition and its challenges was required to ensure accessibility to digital technology for the 
society as a whole, boosting the digitalisation of companies — especially SMEs and start-ups 
— and industry, the R&D&I sector, and the digital empowerment of the population. 

The  plan  contains  a  set  of  investments  and  reforms  that  are  expected  to  have  a  long-
lasting impact in the digital transformation of the country and significantly contribute 
to  address  the  challenges  resulting  from  the  digital  transition.  Out  of  30  components, 
digital  investments  are  present  in  21  of  them,  some  of  which  are  100%  focused  on  digital 
objectives.  Horizontal  actions  that  benefit  the  entire  economy  and  population  (e.g. 
connectivity) are complemented by specific actions on specific sectors (agriculture, tourism, 

82 

 
 
 
 
SMEs,  transport,  culture,  media)  or  specific  segments  of  population  (e.g.  students,  civil 
servants, unemployed). 

The  plan  foresees  the  roll-out  of  the  seven  strategic  plans  unfolding  the  2025  Digital 
Spain Agenda, in alignment with EU initiatives. The seven strategies (Connectivity Plan, 
the 5G Promotion Strategy, the National Artificial Intelligence Strategy, the National Digital 
Skills Plan, the Digitalisation Plan for Public Administrations, the Plan for Digitalisation of 
SMEs and the Spanish Audiovisual Hub Plan) and the measures included in the plan are also 
aligned  with  a  number  of  European  initiatives  like  the  EU  Digital  Strategy,  the  European 
Industrial Strategy, the EU Skills Agenda, the European Pillar of Social Rights and its Action 
Plan endorsed by the Porto Summit, the European Education Area and the Digital Education 
Action  Plan.  Measures  in  the  plan  are  also  aligned  with  the  four  digitally  related  flagships 
included  in  the  Commission’s  Annual  Sustainable  Growth  Strategy. [54]  These  are  the 
flagship:  modernise,  that  concerns  the  digitalisation  of  the  public  administration;  connect, 
that  concerns  investment  in  fixed  and  mobile  connectivity,  scale-up;  on  the  investments  in 
data  infrastructure  of  the  future  like  cloud  capacity,  edge  computing  and  advanced  and 
sustainable  microprocessors;  reskill-upskill¸  focused  on  education  and  training  to  support 
digital skills. 

The  Plan  includes  significant  investments  that  are  designed  to  close  the  digital  divide 
between urban and rural areas and to enable the full potential of 5G connectivity in its 
Component 15 (Digital Connectivity). Spain is among the top performer in the EU in terms 
of  Very  High-Capacity  Network.  However,  differences  between  rural  and  urban  area  are 
persistent and the deployment of 5G is slower than expected. Component 15 is fully devoted 
to  connectivity,  with  a  budget  of  almost  EUR 4  billion.  It  foresees  investments  to  bring 
coverage  of  ultra-fast  fixed  networks  to  more  than  100 Mbps/s  in  certain  areas  of  Spain, 
particularly in rural areas (EUR 812 million). Specific actions to strengthen connectivity for 
industrial  centres  and  logistic  centres  are  foreseen  (EUR 480  million).  Component  15 
includes  action  to  deploy  the  5G  network  along  the  cross-border  sections  with  France  and 
Portugal and along the main national transport corridors. Further, 5G will also be deployed in 
certain areas that will not be covered by mobile operators in the next five years. [55] Gigabit 
level fixed connectivity and 5G will also be deployed in critical hotspots like business parks, 
industrial  areas  and  around  focal  public  services.  The  Plan  will  support  the  connectivity  of 
SMEs  and  vulnerable  groups  through  digital-connectivity-vouchers  (EUR 80  million)  and 
actions to strengthen cybersecurity capabilities of citizens, professionals and SMEs (EUR 524 
million). As explained in Section 3.2, there are cross-border projects in connectivity foreseen 
in  combination with the Connecting Europe  Facility (submarine cables), as well as planned 

[54] COM(2020)575.  
[55]  Spain  has  not  detailed  the  specificity  of  the  plan  and  the  market  failures  present  in  the  areas  it  wishes  to 
cover. On this basis, there is a degree of uncertainty on the final delivery of this project. However, even if this 
investment were to be scaled down it would not affect the positive assessment on the contribution of Component 
15 (Digital Connectivity) to contribute to the digital transition. 

83 

 
                                                 
IPCEIs  in  next  generation  cloud  and  edge  computing,  microprocessors  and  secure  satellite 
communications (for a total of EUR 500 million). The roll-out of networks and 5G coverage 
in national and cross-border corridors aims to achieve 75 % population coverage by 2025 in 
the  5G  preference  bands.  There  will  also  be  substantial  investment  in  R&D  innovation 
actions in 5G (a total of EUR 1,4 billion allocated to 5G).  

While  Spain  has  a  leading  position  in  connectivity,  the  country  faces  shortcomings  as 
regards  digital  skills  and  the  plan  includes  significant  investments  to  address  them 
(EUR 3,5 billion). Spain’s plan points to a situation with over 43% of the population lacking 
basic  digital  skills  (DESI 2020)  and  a  low  share  of  ICT  specialists,  in  contrast  with  a  high 
demand on both fronts. Spain also shows above average offer of masters’ programs in high-
performance  computing  and  data  science,  but  below  average  offer  in  artificial  intelligence 
and cybersecurity [56]. These shortcomings in basic and advanced digital skills in Spain could 
slow down the digital transformation. Component 19 (Digital Skills) therefore aims at raising 
the level of digital skills of the population, with a specific focus on SMEs employees. It also 
foresees  increasing  the  number  of  ICT  professionals  including  actions  to  develop  talents  in 
cybersecurity and artificial intelligence respectively in Component 15 (Digital Connectivity) 
and  16  (Artificial  Intelligence).  However,  a  specific  plan  to  enhance  digital  and  artificial 
intelligence  skills  of  the  population  in  collaboration  with  universities,  research  centres  and 
companies  is  not  included  in  the  Plan.  The  Plan  includes  investments  to  complete  the 
digitalisation  of  the  Spanish  education  system,  mostly  through  the  deployment  of  digital 
systems  in  schools  in  Component  21  (Education),  but  also  by  providing  digital  skills  for 
teachers and through the promotion of digital vocations (Components 19, and 20 (Vocational 
Training)  and  21).  Other  complementary  actions  on  digital  skills  seek  to  enhance 
employability for the employed and unemployed in Component 23 (Labour market).  

Measures  enhancing  digital  skills  are  also  expected  to  contribute  significantly  to  the 
challenges faced by Spain in the use of internet services. The improvement of digital skills 
in  the  population,  combined  with  the  action  on  connectivity  included  in  Component  15 
(Digital  Connectivity),  that  also  includes  specific  connectivity  vouchers  for  the  more 
vulnerable groups, and also combined with the actions on digitalisation of businesses and of 
the  public  administration  (including  the  health  system)  are  also  expected  to  increase  the 
overall  use  of  internet  services.  These  effects  are  expected  to  be  complemented  by  the 
reforms, in Component 15 and 16 that will increase the trust and security around the use of 
digital technologies. This set of complementary actions is expected to contribute to the digital 
transition  and  to  address  the  challenges  related  to  the  lack  of  skills  and  trust  on  digital 
technologies  with  a  lasting  impact.  The  use  of  internet  services  will  also  benefit  from  the 

[56]  Righi,  R.,  López-Cobo,  M.,  Alaveras,  G.,  Samoili,  S.,  Cardona,  M..,  Vázquez-Prada  Baillet,  M.,  Ziemba, 
L.W., and De Prato, G., Academic offer of advanced digital skills in 2019-20. International comparison. Focus 
on  Artificial  Intelligence,  High  Performance  Computing,  Cybersecurity  and  Data  Science,  EUR  30351  EN, 
Publications Office of the European Union, Luxembourg, 2020, ISBN 978-92-76-21541-9, doi:10.2760/225355, 
JRC121680. 

84 

 
                                                 
regulatory reforms envisaged in the plan like the reforms on cybersecurity and on the security 
and connectivity toolbox included in Component 15 (Digital Connectivity) and the reform on 
the regulatory framework for Artificial Intelligence in Component 16 (Artificial Intelligence). 
These reforms are expected to increase the trust on digital services and technologies boosting 
their use and adoption on a lasting basis. 

Several  measures  in  the  plan  are  expected  to  improve  the  integration  of  digital 
technologies in businesses, especially SMEs, and are expected to unlock the full potential 
of digital technologies and to contribute to the digital transition with a lasting impact. 
Several  components  in  the  plan  contribute  to  address  these  challenges.  Component  13 
(Support to SMEs) includes digital investment for EUR 3,7 billion. Among its measures, the 
main one is the mass-provision of a “Digital toolkit” to enable the digital transition of SMEs 
and  self-employed  by  supporting  the  digitalisation  of  their  business  model  and  the 
digitalisation  of  their  processes  with  the  final  aim  to  increase  their  resilience  and 
competitiveness. This broad measure is complemented by more focused measure to support 
SMEs and start-up to adopt digital and advanced technologies to support their growth and to 
expand  their,  national  and  international,  sales  channels  (notably  using  online  markets). 
Several  other measures included in  the plan will  also  support the digitalisation of business. 
Component 4 (Tourism) has significant dedicated investments for the tourism sector that aim 
to  develop  specific  tools  (platforms,  portal  and  data  spaces)  to  make  it  more  efficient, 
attractive  and  competitive.  Other  actions  target  the  culture  sector  (Component  24  (Cultural 
Industry)),  supporting  the  digitalisation  of  entrepreneurs  and  firms  active  in  this  sector  and 
the digitalisation of the cultural endowment. Specific investments also target the audio-visual 
sector  (Component  25  (Audiovisual))  and  of  organisations  in  the  sports  sector  (Component 
26 (Sports)). Other digitalisation investments for businesses are foreseen in the area of agri-
food, forestry and fisheries (Component 3 (Agri-food and fisheries)).  

In what concerns  the adoption  of advanced digital technologies, the plan also includes 
specific measures that are expected to contribute significantly to the digital transition on 
a lasting basis. There are investments targeting the adoption of advanced digital technologies 
by  SMEs  (EUR 500  million),  the  tourism  sector  (EUR 223  million),  industry  (EUR 400 
million)  and  the  audiovisual  sectors  (EUR 200  million).  Component  16  (Artificial 
Intelligence)  is  focused  on  measures  to  support  firms  in  adopting  artificial  intelligence 
processes in their business activity. Component 15 (Digital Connectivity) includes a measure 
to  support possible  IPCEIs on cloud  and edge  computing and microprocessors, that as well 
would  significantly  benefit  the  business  sector  in  the  adoption  of  advanced  technologies. 
Component 12 (Industrial Policy) includes a measure to develop data spaces for key sectors. 
Component  14  (Tourism)  includes  a  measure  to  create  ad-hoc  data  infrastructure  for  the 
tourism  sector.  Both  Components 12  and  15  include  measures  for  the  participation  in  a 
possible IPCEIs on microprocessors. Overall, it is assessed that the plan includes significant 
investments in the area of integration of digital technologies that will  have a lasting impact 
and will contribute to the digital transition. 

Spain is a top performer in the area of digital public services, and the plan is expected to 
further  reinforce  this  excellent  performance  with  a  comprehensive  package  of 
investments. These investments clearly contribute to the digital transition and a long-lasting 
impact  on  the  concerned  public  services  is  expected  in  terms  of  future-readiness,  territorial 
and social cohesion, resilience, growth and efficiency. In the public administration, the plan 

85 

 
includes  investments  to  digitize  all  levels  of  government  in  Component  11  (Public 
administration), and many public services, such as for instance the national health system, the 
justice  system  and  the  public  procurement  system,  schools,  VET  and  the  universities,  and 
sports  federation  (EUR 2,3  billion).  Digital  related  investment  in  the  health  sector  are  also 
included  in  Component  18  (Reform  of  Health  system).  The  plan  will  also  modernise  and 
strengthen  social  services  with  measures  to  promote  innovation  and  the  use  of  new 
technologies included in Component 22 (Care Economy, equality and inclusion). 

Other  significant  digital  investments  relate  to  transport,  natural  endowment  and  the 
electricity network. These are investments in the local urban transport under Component 1 
(Sustainable  urban  mobility)  and  on  the  national  network  under  Component  6  (Sustainable 
long-distance  mobility),  involving  all  modes  of  transports  rail,  road,  air  and  ports  with  the 
aim  of  making  transport  more  interconnected,  secure  and  sustainable.  Investment  in 
digitalisation  included  in  Component  4  (Ecosystems  and  biodiversity)  for  the  conservation 
and restoration of ecosystem and biodiversity, and those included in Component 5 (Coast and 
water resources) on coastal space and water management also have a public sector dimension. 
Investments  are  also  foreseen  in  the  digitalisation  and  modernisation  of  the  electricity 
networks in Component 8 (Electricity infrastructure). Overall, all these measures in the area 
of public services are expected to significantly contribute to the digital transition and to have 
a lasting impact. 

Finally,  the  plan  contains  some  specific  digital  investment  in  R&D&I  in  Artificial 
Intelligence,  5G  and  cybersecurity 
included  under  Component  16  (Artificial 
Intelligence) and Component 15 (Digital Connectivity). Further, Component 17 (Science, 
Technology  and  Innovation),  includes  sub-measures  with  a  minor  digital  contribution 
included as part of the wider R&D&I efforts.  

Conclusion on the assessment of criterion 2.6 of Annex V to the RRF Regulation 

Taking  into  consideration  the  assessment  of  all  the  measures  envisaged,  the  Recovery  and 
Resilience plan is expected, to a large extent, to make a significant contribution to the digital 
transition and to address the challenges resulting from it. It ensures that at least 20% of its 
total  allocation  contribute  to  support  digital  objectives.  This  would  warrant  a  rating  of  A 
under criterion 2.6 of Annex V to the RRF Regulation. 

4.7.  

Lasting impact of the plan 

Structural change in the administration and institutions 

Reforms  and  investments  in  the  plan  are  expected  to  bring  a  lasting  impact  to  the 
functioning of the public administration in Spain. This may be the case for the support to 
its  digitalisation  contained  in  Components 11  (Public  Administration),  18  (Reform  of  the 
Health System), 20 (Vocational Training) and 21 (Education). Other measures that may bring 
a positive lasting impact are those ensuring that public policies are subject to ex ante impact 
assessments  and  public  spending  evaluations  to  ensure  their  effectiveness,  envisaged  in 
Components 11  and  29.  Measures  to  improve  the  functioning  of  the  public  administration 
also touch upon public procurement, which is highly relevant to effectively deliver EU funds. 
Finally, measures will be taken under Component 11 to improve the merit and competence-
based  recruitment  system  for  the  civil  service,  and  to  ensure  that  access  to  senior  posts  is 

86 

 
based on merit and competition. These measures are expected to reinforce the impartiality of 
civil  servants  in  the  performance  of  their  duties.  Evaluations  of  staff  on  the  basis  of 
performance  and  the  reduction  of  the  high  number  of  temporary  contracts  in  the 
administration  could  also  help  enhance  the  effectiveness  of  public  administrations.  To  this, 
the  plan  adds  measures  to  improve  the  organisational  and  procedural  efficiency  of  the 
national justice system in Component 13 (Support to SMEs). 

Structural change in policies 

The plan is also expected to bring a lasting impact to productivity and social cohesion in 
Spain.  On  the  one  hand,  measures  to  increase  the  level  of  skills,  including  digital,  with  a 
focus  on  the  offer  of  those  that  are  most  labour  market  relevant  should  contribute  very 
positively  to  the  employability  of  the  workforce.  Reducing  labour  market  segmentation 
effectively  would  also  significantly  contribute  to  raise  quality  employment,  and  reinforce 
social cohesion in a sustainable manner. Measures to address the gender gap and to facilitate 
female labour market participation are also contained in the plan to support this goal. Efforts 
to modernise and improve the effectiveness of social protection, including social services, can 
increase  social  and  economic  resilience,  by  supporting  higher  labour  market  participation, 
stabilising income over the economic cycle, improving the social and economic integration of 
all, and reducing inequalities. 

Measures  to  boost  competitiveness  and  to  enhance  innovation  in  the  country  that  can 
bring a lasting impact to the Spanish industry and services. The full implementation of a 
number of reforms and investments has the potential to help Spanish firms better cooperate 
and  compete  in  the  markets  that  will  emerge  from  the  digital  and  green  transition. 
Investments  and  reforms  in  Component 12  (Industrial  Policy),  but  also  in  Components 19 
(Digital Skills) and 20 (Vocational Training) are expected to help the industry embrace more 
swiftly the twin transition. Measures that boost renewable production and integration and the 
decarbonisation of urban mobility will contribute to the energy transition of Spain and reduce 
dependency  on  energy  imports.  Through  the  successful  implementation  of  measures  to 
transform  the  tourism  sector  into  more  sustainable  patterns,  and  of  measures  seeking  to 
conserve  and  restore  the  natural  capital  of  the  country,  many  regions  in  Spain  may  also 
reduce  their  dependency  from  this  sector,  diversify  their  offer  and  open  up  to  new 
possibilities  to  participate  further  and  differently  in  global  value  chains.  Once  successfully 
implemented,  measures  may  help  protecting  natural  capital  and  ecosystems,  decarbonise 
traditional industry and boost a new efficient and sustainable green and blue economy. 

Lasting impact 

While  the  plan  as  a  whole  has  the  potential  to  tackle  some  of  the  root  problems 
underlying  labour  market  and  competitiveness  challenges  in  the  country,  some  risks 
exist as regards its long-lasting impact. A few measures in the plan may create permanent 
budgetary  entitlements  (early  childhood  education  and  care,  vocational  education  and 
training, universities, health). Reassurances by the Spanish authorities on the sustainability of 
these  measures  have  taken  the  form  of  commitments  to  rely  on  financing  by  the  European 
Social Fund + (ESF+) after the RRF, to engage in adjustments in some areas of the budget as 
envisaged  in  Components 27  and  28  of  the  plan  and  through  a  reorientation  of  public 
expenditure to be agreed with the regions. More generally, the long-term sustainability of the 
measures in the plan will depend on the final design of a number of reforms that have been 

87 

 
left open for discussion in the plan, such as the new mechanism for stability and flexibility in 
the  labour  market  that  is  based  on  the  experience  with  short-time  work  schemes  and  the 
pension reform, as well as on the expenditure reviews that are to be implemented. 

A  broader  ownership  of  the  content  of  the  plan  would  secure  the  lasting impact  of  its 
measures. Ensuring a buy-in of the plan by actors involved in the implementation of reforms 
and investments, such as regional and local authorities in Spain, is key. These authorities are 
competent in areas such as health, education and vocational education and training. Ensuring 
a broader ownership during the implementation of the plan of Spain would enhance its lasting 
impact. 

Conclusion on the assessment of criterion 2.7 of Annex V to the RRF Regulation 

Taking into consideration all reforms and investments envisaged by Spain in its recovery and 
resilience plan, their implementation is expected, to a large extent, to bring a positive lasting 
impact  on  administration,  institutions,  human,  environmental  and  economic  capital.  This 
would warrant a rating of A under criterion 2.7 of Annex V to the RRF Regulation. 

4.8. Milestones, targets, monitoring and implementation 

Adequacy of the structure tasked with the implementation of the plan, monitoring of progress 
and reporting  

At  Plan  level,  the  new  Secretariat-General  for  European  Funds  of  the  Ministry  of 
Finance will  be the authority responsible for the recovery and resilience plan vis-a-vis 
the European Commission and will act as a contact point (coordinator). As explained in 
Section 3.2,  the  new  Secretariat-General  will  encompass  two  Directorates-General:  the 
existing  European  Funds  Directorate  General,  and  a  new  Directorate  General  for  the 
Recovery  and  Resilience  Plan.  The  latter  will  coordinate  with  the  Ministries,  Public 
Procurement Offices, autonomous communities and local  authorities and other national  and 
Community  entities  involved  in  the  Recovery  Plan.  The  national  arrangements  for  the 
monitoring of the plan have been described in detail in Section 3.2. 

At component level, the line Ministries will be responsible for the implementation of the 
investments  and  reforms  in  their  respective  components.  Responsibility  and  the 
monitoring  of  progress  on  milestones  and  targets  are  clearly  defined  for  each  component, 
investment and reform. The implementation of the plan will be included in the general budget 
of the central government and will be subject to the control of the Comptroller General of the 
central  government  (Intervención  General  de  la  Administración  del  Estado  –  IGAE).  The 
necessary flows of information to other public administrations or private entities will be set 
up  to  be  able  to  assess  compliance  with  the  budgets  and  to  generate  the  documentation  for 
monitoring purposes.  The verification of the milestones and targets will be audited by IGAE 
before the submission of a payment request. 

The RRP includes an investment to adapt the  functioning of the public administration 
with a view to facing the challenges posed by the implementation and monitoring of the 
plan.  Component 11  (Public  Administration)  aims  at  simplifying  the  procedures  to 
implement  the plan and  facilitating the sharing of information  across levels  of  government, 
including  by  setting  up  an  IT  tool  that  will  document  the  progress  and  fulfilment  of  the 
milestones and targets. This will be accompanied by targeted trainings for the general public 

88 

 
administration staff estimated to reach up to 3 150 individuals throughout the implementation 
of the plan. 

Milestones, targets and indicators 

The  plan  has  416  milestones  and  targets,  the  majority  of  which  (75%)  relate  to  the 
period 2020-2023. The milestones and targets include measures that started from 1 February 
2020, in line with Article 17 of the Regulation. Part of the milestones and targets concerning 
investments  will  only  be  met  after 2023.  This  is  notably  the  case  for  bigger  investments  in 
infrastructure and equipment, which often have long implementation times.  

The  proposed  milestones  and  targets  are  clear  and  seem  realistic  and  the  proposed 
indicators are  relevant, acceptable and robust. Milestones consist  of the publication  and 
entry  into  force  of  legal  acts  in  the  Official  Journal  by  a  specific  year  and  quarter.  In  few 
cases, milestones consist of the adoption by the Government of strategies or plans launching 
a reform. In these cases, the milestones relate to the official publication in the Official Journal 
or,  as  appropriate,  on  a  web  platform.  Targets  are  quantified  and  the  appropriate  indicators 
are  defined.  The  targets  of  the  plan  refer  to  concrete  outputs  such  as  number  of  pieces  of 
equipment  installed, number of people trained,  or the number of projects. Most of the final 
targets  in  the  plan  do  not  relate  to  budgetary  targets  and  focus  on  outputs.  Milestones  and 
targets are broadly realistic and in line with the costing estimates provided by Spain. 

Overall organisational arrangements 

The  overall  organisational  arrangements  for  the  implementation  of  the  plan  are  clear 
and credible. Section 3.2 explained the coordination mechanisms that have been established 
to  monitor  and  implement  the  plan.  IGAE  will  be  key  for  both  ex-ante  and  ex-post  audits. 
The interaction with the control system is described in Section 4.10. 

Conclusion on the assessment of criterion 2.8 of Annex V to the RRF Regulation 

The arrangements proposed by Spain in its recovery and resilience plan are expected to be 
adequate  to  ensure  effective  monitoring  and  implementation  of  the  recovery  and  resilience 
plan,  including  the  envisaged  timetable,  milestones  and  targets,  and  the  related  indicators. 
This would warrant a rating of A under the assessment criterion 2.8 of Annex V to the RRF 
Regulation. 

4.9. Costing 

Spain has provided individual cost estimates for all the investments in its recovery and 
resilience  plan.  As  regards  reforms,  Spain  has  also  provided  estimates  for  those  whose 
associated cost has been specified in the plan. Spain has provided sufficient information and 
evidence to consider that costs are overall reasonable and plausible. In addition, the majority 
of  costs  are  backed  by  appropriate  justification  and  explanations  that  the  amounts  do  not 
include  costs  covered  by  existing  or  planned  Union  financing.  Finally,  costs  are  also 
commensurate to the expected economic and social impact of the envisaged measures. 

Spain has relied on a number of sources to justify the costs of investments and reforms. 
Estimates of costs included in the plan are generally detailed, well-substantiated and based on 
a  variety  of  sources.  These  include  nineteen  calls  of  interest  specifically  launched  for  the 
purposes  of  the  plan  during  its  preparation  phase,  including  calls  addressed  to  public 

89 

 
authorities (3) and private agents (16) (see Table 4.8.1 below). In addition, Spain has relied 
on estimates and data provided by international organisations (Component 9 (Hydrogen)) or 
procurement  contracts  referred  to  similar  services  or  past  investments  of  similar  nature 
(Component 14  (Tourism),  Component  16  (Artificial  Intelligence),  and  Component 17 
(Science,  Technology  and  Innovation)).  For  each  component,  Spain  has  provided  specific 
documents describing the costing methodology utilised and identifying the underlying costing 
submitted.
information 

90 

 
Table 4.8.1  Calls for expressions of interest made by Spain 

Addressed to firms 
Name 

Ministry 

Date 
closed 
19/12/2020 
23/12/2020 
20/01/2021 
29/01/2021 

EADT 

15/02/2021 

ETDC 
ETDC 
ICT 
ETDC 

ETDC 
ETDC 
ETDC 
ETDC 

23/02/2021 
23/02/2021 
26/02/2021 
26/02/2021 

Renewable hydrogen value chain 
Demographic challenge and the fight against depopulation 
Modernise Spanish industry 
Electric  mobility:  infrastructure  to  recharge,  innovate  and 
electrify vehicles 
Digital  connectivity,  promotion  of  cybersecurity  and  5G 
deployment 
Local energy communities of owners 
Sustainable energy in the islands 
Circular economy within firms 
Deployment of renewables, integration in productive sectors or 
building, innovation and value chain 
Electrical infrastructure, smart grids and energy storage 
Sustainable and Digital Transport 
Microelectronics 
Integration of Artificial Intelligence in value chains 
Strengthen the cybersecurity capacities of SMEs and boost the 
sector 
Digitalisation  of  SMEs  and  the  self-employed:  DIGITAL 
TOOLKIT Program 
Audiovisual sector (Spain Audiovisual Hub) 
Addressed to regional and local governments 
Name 
Low-emission zones and support for public transport 
Rehabilitation of public buildings 
Rehabilitation for economic and social recovery of residential 
environments 
Acronyms  refer  to  the  following  ministries:  ETDC  (Ecological  transition  and  Demographic 
Challenge),  EADT  (Economic  Affairs  and  Digital  Transformation),  ICT  (Industry,  Commerce,  and 
Tourism), S (Science), and TMUA (Transport, Mobility and Urban Agenda). 

26/02/2021 
03/03/2021 
18/03/2021 
02/04/2021 
21/04/2021 

ETDC 
TMUA 
ICT & S 
EADT 
EADT 

Ministry 
TMUA 
TMUA 
TMUA 

07/05/2021 

28/05/2021 

EADT 

EADT 

Reasonable costs 

Cost  estimates  for  most  of  the  measures  in  the  plan  are  deemed  reasonable.  Spain  has 
provided detailed evidence backing the eligibility of measures. Firstly, all costs are incurred 
after 1 February 2020. Secondly, in accordance with Article 5 of the RRF Regulation, costs 
do  not  substitute  recurring  national  budgetary  expenditure,  with  a  number  of  duly  justified 
exceptions. In particular, the plan contains recurrent costs in investments that cover wages of 
teachers  for  VET  (Component  20)  and  early  childhood  education  in  Component 21 
(Education). However, in all cases the share of these costs in the overall plan is limited (less 
than 3%). In addition, these recurrent investments are expected to have a demonstrable long-
term  positive impact  on  the economic and social resilience  of Spain.  Reassurance has been 
given  by  Spain  about  their  limited  fiscal  impact  over  time.  As  explained  in  Section 4.7, 
reassurances have taken the form of commitments to rely on financing by ESF+ beyond the 
timeframe  of  the  plan,  to  undertake  adjustments  in  budget  areas  as  foreseen  in 

91 

 
Components 27  (Prevention  of  Tax  Fraud)  and  28  (Tax  System  Reform)  of  the  plan,  and 
through a commitment to reorient public expenditure in agreement with the regions. Finally, 
VAT has not been included in the costs estimates as a general rule. However, for a relatively 
low share of the costs, the methodology used is not sufficiently well explained and the link 
between the justification and estimated costs is  not  sufficiently  clear to  deem  that the costs 
are reasonable. 

Spain has availed itself of the option to use simplified cost options with respect to both 
flat  rates  and  unit  costs.  Recital 18  of  the  Recovery  and  Resilience  Facility  Regulation 
provides  for  Member  States  to  use  simplified  cost  options,  in  line  with  Article 181  of  the 
Financial Regulation. [57] Simplified costs can be based on lump sum costs, unit costs or flat 
rates. In this regard, Spain has focused on both flat rates and unit cost options. For instance, 
the former is behind the costing of actions necessary for the effective administration and use 
of  funds  at  the  level  of  individual  investments  (these  are  costs  for  technical  assistance  to 
support the implementation of specific reforms or investments). Spain has used different flat 
rates (mostly 4%). In addition, Spain has resorted to use unit costs in specific measures. The 
use of the latter is related to whether a specific technology permits establishing costs per unit, 
on  whether  the  information  is  available  and  is  relatively  standardised,  homogenous  and 
available to be used.  

An independent validation with regards to the reasonability of a significant share of the 
cost  estimates  in  the  plan  has  been  provided  by  the  Controller  General  of  the  central 
government  (Intervención  General  del  Estado  -  IGAE).  In  particular,  the  IGAE  has  issued 
seven reports fully validating the reasonability of 31 measures and approximately EUR 32,5 
billion  or 47%  of  the  total  budget  of  the  RRP.  The  reports  validate  whether  Spain  has 
provided sufficient information and evidence that the amount of the estimated total costs of 
the RRP is reasonable. 

Plausible costs 

The amount of the estimated total costs of the recover and resilience plan of Spain is in 
line  with  the  nature  and  type  of  the  envisaged  reforms  and  investments.  Spain  has 
submitted more than 2 200 files covering  approximately 25 000 pages of additional costing 
evidence  underpinning  the  claims  presented  in  the  plan.  These  documents  broadly 
substantiate the cost estimates. 

Cost estimates  have been deemed overall plausible.  The amounts  proposed for  financing 
have been deemed appropriate for most of the measures, whilst taking into account the limits 
of an ex-ante based assessment of cost estimates. In particular, Spain has provided evidence 
that costs are in line with previous projects and initiatives undertaken in the country. In this 
regard,  the  output  targets  provided  in  the  plan  for  investment  are  commensurate  with  the 

[57] Regulation (EU, Euratom) 2018/1046 of the European Parliament and of the Council of 18 July 2018 on the 
financial rules applicable to the general budget of the Union, http://data.europa.eu/eli/reg/2018/1046/oj. 

92 

 
                                                 
costing  justifications  and  assumptions  provided.  However,  for  a  relatively  low  share  of  the 
costs, there are not sufficient historical or comparative data for key cost drivers to deem that 
the costs are plausible.  

No double Union financing 

As a rule, individual measures do not consider the support of additional financing from 
other Union programmes. Spain has confirmed that the same cost will not be covered at the 
same time by the recovery and resilience plan and by existing or planned Union financing, in 
line  with  the  provisions  of  Article 9  of  the  RRF  Regulation.  Spain  has  identified  a  limited 
number of cases where investments are planned to be financed by both the RRP and other EU 
funding.  In  those  limited  cases,  Spain  has  provided  information  on  the  costs  planned  to  be 
funded by each source of funding. As mentioned in Section 3.2, the planning documents for 
the  implementation  of  the  European  Structural  and  Investment  Funds  (ESIF)  are  still  at 
preliminary stages of preparation. Spain has confirmed that specific arrangements have been 
put  in  place to  avoid  double funding, including  from  ESI funds, during the implementation 
phase (see further details on the arrangements to prevent double-funding under Section 4.10 
Controls and Audits). 

Conclusion on the assessment of criterion 2.9 of Annex V to the RRF Regulation 

The justifications provided by Spain on the amount of the estimated total costs of the recovery 
and resilience plan are to a medium extent reasonable, plausible, in line with the principle of 
cost efficiency and commensurate to the expected national economic and social impact on the 
economy.  Spain  has  provided  sufficient  information  and  evidence  that  the  amount  of  the 
estimated  cost  of  the  reforms  and  investments  of  the  recovery  and  resilience  plan  to  be 
financed under the Facility is not covered by existing or planned Union financing. This would 
warrant a rating of B under the assessment criterion 2.9 in Annex V to the RRF Regulation. 

4.10. 

Controls and audit 

Robustness of internal control system and distribution of roles and responsibilities 

At plan level, the national set-up for the control of the plan is designed along the same 
lines and involves same main players as for implementation of the European Structural 
and Investment Funds. Spain expects that the governance structure of the plan will ensure: 
(i) a participatory process integrating proposals from the main economic, social and political 
actors;  (ii)  cooperation  and  coordination  between  different  levels  of  government  and 
administration;  and  (iii)  the  designation  of  a  coordinator  in  accordance  with  the  regulatory 
requirements of the Recovery and Resilience Facility Regulation. The Royal Decree 36/2020 
entrusts the Secretariat-General of European Funds of the Ministry of Finance – which is also 
in charge of European funds – with the responsibility for the overall coordination of the plan, 
including  the  contacts  with  the  European  Commission,  the  monitoring  of  progress  on 
milestones  and  targets  and  the  submission  of  requests  for  payments  and  management 
declarations  to  the  Commission.  The  Secretariat-General  of  European  Funds  will  not  carry 
out audits or controls, so the segregation of duties is ensured. The General Comptroller of the 
Central  Government  (Intervención  General  de  la  Administración  del  Estado  -  IGAE)  is  the 
Control  Authority  of  the  Spanish  plan.  A  specific  working  group  is  to  be  set  up  between 
IGAE, as Audit Authority, and the regional bodies to coordinate the actions to be carried out. 
The  IGAE’s  audit  strategy  is  globally  described  in  the  plan  including  its  scope,  frequency, 

93 

 
sampling method, risk-assessment, types of audits and the actions to be carried out on each 
payment request. It will be approved and updated at least once a year. 

As  regards  the  implementing  structure  described  in  the  plan,  it  is  foreseen  that  line 
ministries are responsible for the verification and monitoring of progress on milestones 
and targets. Within each body responsible for implementation, Spain’s control systems are 
in  line  with  what  has  been  developed  for  the  Structural  Funds.  The  authorities  have  also 
committed  to  strengthen  the  system,  where  necessary,  by  integrating  recent  and  future 
requirements  and  guidance  in  the  area,  including  the  European  Commission’s  Notice  on 
Guidance  on  the  avoidance  and  management  of  conflicts  of  interest  under  the  Financial 
Regulation. [58] Concerning the prevention, detection and correction of serious irregularities, 
the  plan  describes  the  national  procedures  and  organisational  structure  covering  actors 
performing  internal  control  tasks,  their  roles  and  responsibilities  and  how  they  should 
prevent,  detect  and  correct  fraud,  corruption  and  conflicts  of  interest  wherever  they  occur. 
The internal control bodies have to produce mandatory reports, whose content should include 
verifications that there are no aspects potentially leading to such serious irregularities. 

The  National  Anti-Fraud  Coordination  Service  will  be  an  essential  part  of  the  model, 
responsible  for  coordinating  actions  to  protect  the  financial  interests  of  the  European 
Union  against  fraud  in  cooperation  with  the  European  Anti-Fraud  Office (OLAF).  It 
will rely on the national systems already operating such as the National Subsidy Database or 
the Procurement Platform to prevent serious irregularities. There are commitments to inform 
and train staff, whistle-blowing measures, account taken of lessons learned and coordination 
meetings highlighted. 

Adequacy of control systems and other relevant arrangements 

Control actors are clearly identified across all levels. The second level of control related to 
management is entrusted to independent internal control bodies in the various administrations 
involved which act  with complete autonomy and independence from the bodies responsible 
for  managing  the  actions  and  operations  covered  by  each  component.  Within  each 
component,  there  is  also  a  description  of  the  implementing  arrangements  per  measure,  i.e. 
how and by whom they will be implemented. 

A  comprehensive  IT  system  will  facilitate  the  implementation  of  the  recovery  and 
resilience plan. To collect, store and report data on milestones and targets, Spain will use an 
IT  system  that  includes  both  the  milestones  and  the  targets  set  for  each  component,  their 
allocation  to  each  of  operation  and  action  needed  to  achieve  them,  the  level  of  success  of 
those  actions,  as  well  as  the  associated  indicators.  This  same  system  will  document  the 
progress  and  fulfilment  of  the  milestones  and  targets.  It  will  collect  and  store  data  on  final 
beneficiaries.  However,  to  provide  assurance  that  in  addition  to  the  data  on  final 

[58] (2021/C 121/01), https://eur-lex.europa.eu/legal-
content/EN/TXT/PDF/?uri=CELEX:52021XC0409(01)&from=EN 

94 

 
                                                 
beneficiaries, data on contractors, subcontractors and beneficial owners will also be collected 
and stored in accordance with Article 22(2), point (d), of the Regulation, this obligation has 
been introduced through a milestone. The system should provide easy access to this data and 
checks are to be done using it. It should also articulate with ARACHNE. The adoption of the 
Order of the Ministry of Finance setting out the procedure and format of the information to be 
provided  by  the  entities  of  the  State,  autonomous  communities  and  local  entities  for  the 
monitoring of projects and the accounting execution of expenditure charged to projects under 
the plan is planned to be approved soon. A milestone has been introduced to confirm its entry 
into force by the time of the first payment request.  

The IT system is designed to provide an audit trail and document all underlying transactions. 
IGAE will carry out these audits through the National Audit Office via a specific division for 
audits on the Recovery and Resilience Facility, assisted by other units of IGAE and bodies of 
the autonomous communities and the two autonomous cities where necessary. The results of 
these  audits  carried  out  will  also  be  included  in  the  summary  of  audits  carried  out  under 
Article 22(2),  point  (c)(ii)  of  the  Regulation.  Those  checks  are  supposed  to  provide 
information about the actual functioning of the systems that will feed the audit activity of the 
audit bodies and this activity will result in reports that are assessed by the audit body in order 
to identify weaknesses and, where appropriate, make recommendations for improvement and 
focus thematic audits where appropriate. Using these mechanisms, implementing bodies will 
report regularly on both the budgetary implementation and the progress of indicators. 

The IT system is not in place yet. A milestone has been introduced to give full assurance that 
the basic functionalities of the IT system will be operational and audited by the time of the 
first payment request. 

Adequacy of arrangements to avoid double EU funding 

The Spanish authorities recognize that there are risks in respect of funding from several 
EU  and  national  sources.  The  Spanish  have  confirmed  that  the  implementing  bodies  will 
have access to sufficient sources to identify double funding, if it occurs (i.e. National Subsidy 
Database  and  the  Public  Sector  Procurement  Platform).  In  addition,  projects  will  have  a 
unique  code  that  will  allow  for  the  projects  included  in  the  respective  systems  to  be  cross-
checked.  

The  fact  that  the  implementing  bodies  for  the  RRF  are  also  involved  in  implementing 
structural  funds  gives  additional  assurance  that  for  cross-checking  the  data  with  traditional 
structural  funds  management  systems  and  avoid  double  funding.  Additionally,  IGAE  will 
carry out system audits which will specifically check double funding of projects. 

Legal empowerment and administrative capacity of control function 

Royal  Decree 36/2020  establishes  the  duties  of  every  entity  involved  in  implementing  the 
Spanish recovery and resilience plan. The staff structure of National Anti-Fraud Coordination 
Service has doubled. IGAE unit structures have also increased to be able to meet increased 
activity  due  to  the  implementation  of  the  plan.  The  technical  expertise  of  existing  staff  is 
confirmed,  as  is  the  possibility  of  contracting  external  auditors  for  carrying  out  RRF  audit 
related  work.  Administrative  capacity  of  the  coordinator  has  also  been  confirmed  and 
assessed in  comparison  with  the allocation in the area of structural  funds. Their  experience 
and expertise is equally confirmed.  

95 

 
Conclusion on the assessment of criterion 2.10 of Annex V to the RRF Regulation 

The arrangements  proposed by Spain  in  the plan to  prevent,  detect  and correct  corruption, 
fraud and conflicts of interest when using the funds provided under the Facility, including the 
arrangements aimed to avoid double funding from the Facility and other Union programmes, 
are  assessed  to  be  adequate.  This  would  warrant  a  rating  of  A  under  the  assessment 
criterion 2.10 of Annex V to the RRF Regulation. 

4.11. 

Coherence  

The  Spanish  recovery  and  resilience  plan  displays  a  coherent  set  of  reforms  and 
investments,  which  together  set  out  a  strategic  vision  for  the  transformation  of  the 
economy  of  Spain.  The  four  cross-cutting  lines  of  action  in  the  plan  –  green  transition, 
digital  transformation,  social  and  territorial  cohesion  and  gender  equality  –  ensure  the 
coherence of the 30 components of the plan and the individual measures within them.  

All  components include a set of well-balanced reforms and investments, and measures 
within  components  are  mutually  reinforcing.  Each  component  includes  a  set  of  reforms 
that  accompany  the  investments,  making  them  plausible  and  increasing  their  impact.  This 
Section  highlights  a  limited  number  of  examples  that  show  the  mutual  reinforcement  of 
measures within a given component. For instance, Component 1 (Sustainable urban mobility) 
includes two reforms: the setting up of a regulatory framework facilitating the deployment of 
recharging  infrastructure  to  boost  the  use  of  electric  vehicles,  and  a  law  on  mobility  and 
financing. The first reform is complementary to  an investment envisaged in the Component 
which creates an incentive scheme for the installation of recharging points, the purchase of 
electric  and  fuel  cell  vehicles  and  innovation  in  electro-mobility,  recharging  and  renewable 
hydrogen (EUR 2 billion). It is expected that the measures together lead to the installation of 
80 000 to 110 000 new recharging points by the end of 2023. Likewise, the law on mobility 
and financing includes the creation of a regulatory sandbox that will facilitate innovations in 
the mobility and transport sector. This regulatory sandbox will facilitate the implementation 
of an investment in the Component on low-emission areas and transformation of urban and 
metropolitan transport (EUR 2,9 billion). Both measures together will contribute to foster the 
sustainable  and  digital  transformation  of  transport  services  through  innovative  solutions. 
Another  illustrative  example  of  mutually  reinforcing  measures  within  a  component  can  be 
found  in  Component 13  (Support  to  SMEs).  A  new  start-up  law  envisaged  should  create  a 
favourable framework for the creation and growth of highly innovative start-ups, and in doing 
so reinforce the envisaged set up of a NEXT-TECH public-private fund to scale up start-ups. 
At  the  same  time  the  component  envisages  a  substantial  investment  in  support  to 
entrepreneurship  (EUR 368  million),  which  will  amplify  the  impact  of  the  revised  legal 
framework for start-ups. 

Many  measures  also  support  measures  contained  in  other  components  related  to  the 
same  policy  area.  For  instance,  Component  7  (Renewables)  seeks  to  increase  the  use  of 
renewable energy with considerable investments (EUR 3,2 billion). It envisages a reform of 
the  regulatory  framework  for  the  promotion  of  renewable  generation,  also  through  the  new 
Law on Climate Change and Energy Transition. This law includes elements that are relevant 
to  other  components  in  the  plan,  such  as  the  reduction  of  administrative  barriers  and 
requirements for the installation of public recharging points in service (relevant to investment 
in  recharging  points  under  Component 1  (Sustainable  urban  mobility)).  Component  8 

96 

 
(Electricity  infrastructure)  complements  Component  7  by  supporting  necessary  investments 
in grid digitalisation, storage and demand management to carer for the increased renewable 
energy.  As  renewable  energy  sources  are  intermittent  and  partially  predictable,  energy 
storage is key for the flexibility of the system and for the stability of the grid. Investments in 
Component 8 (Electricity infrastructure) will render the energy system capable of efficiently 
and  safely  absorbing  higher  levels  of  renewable  generation.  Similarly,  Component 9 
(Hydrogen)  will  foster  more  extensive  electrification  (e.g.  of  transport  and  industry)  and 
further boost a large- scale deployment of renewable power.  

Coherence is embedded transversally in the plan through reforms to be carried out in 
the  first  two  years  that  should  facilitate  the  implementation  of  all  investments.  The 
frontloading of these reforms during the first two years of the plan (2021-2022) will require a 
significant effort, but fruits will be reaped through a more effective delivery of investments. 

A good example of reforms that mutually reinforce investments across the whole Plan 
are those that aim at strengthening public institutions. A number of reforms in the plan 
seek to enhance the capacity of the public administration to deliver public services, as well as 
to  facilitate  the  implementation  of  investments  (reforms  related  to  public  expenditure  and 
financial management in Components 11 (Public Administration), 28 (Tax System Reform), 
29  (Effective  public  spending)  and  30  (Pension  reform  system).  Reforms  for  the 
establishment  of  an  open  government  plan  to  better  interact  with  citizens  and  the  private 
sector, an enhancement of ex ante public policy evaluation system foreseen in Component 11 
will  make  public  policies  more  open  and  accountable  to  civil  society.  Strong  public  sector 
institutions  and  systems  are  essential  for  fiscal  sustainability.  Reforms  related  to  the  tax 
system (Component 27 (Prevention of tax fraud) and 28 (Tax system reform)) will improve 
revenue performance, build a more equitable and efficient tax system, reduce tax evasion and 
shape a tax administration that is  more open to feedback by  citizens and companies. SMEs 
and  companies  should  also  benefit  from  a  digital  tax  administration  that  can  lower  the 
administrative burden of tax compliance. 

The  interplay  between  the  public  sector  and  the  private  sector  should  notably  benefit 
from  a  public  procurement  framework  that  is  more  effective,  transparent  and 
predictable. The enhanced public procurement framework foreseen in Component 11 (Public 
Administration) may contribute to a more effective use of RRF funds. It will also foster the 
digitalisation of procurement, improve SMEs access to tenders and facilitate that an effective 
use  of  money  is  made  in  these  procedures.  By  doing  this,  the  public  procurement  reform 
under  Component 11  will  reinforce  the  investments  dedicated  to  the  support  SMEs  under 
Component 13 (Support to SMEs).  

Coordination between the different levels of government has often been identified as a 
challenge in Spain, and efforts to improve it could support and complement many other 
measures in the plan. A stronger and sustained coordination is a long-standing challenge to 
ensure the effectiveness of policies in areas that fall under the responsibility of regions, such 
as  those  related  to  urban  mobility  (Component 1  (Sustainable  urban  mobility)),  health 
(Component 18 (Reform of the Health System)), research and development (Component 17 
(Science,  Technology  and  Innovation)),  education  (Components  20  (Vocational  Training) 
and 21 (Education)), long-term care (Component 22 (Care Economy, equality and inclusion)) 
and active labour market policies (Component 23 (Labour market)). The implementation of 

97 

 
many investments included in the green components, in fields such as biodiversity, water or 
waste, also falls, at least partially, under the remit of the regional and even local authorities. 
The reform foreseen in Component 11 seeks to improve this coordination across all sectors. 

Plans to improve coordination of all government levels foreseen in Component 11 could 
in particular translate into better regulation. Component 13 (Support to SMEs) envisages 
amendments  to  the  Law  on  Market  Unity,  including  improvements  to  the  mechanisms 
foreseen for market operators to be able to effectively challenge barriers. It also proposes the 
establishment  of  a  new  Sectoral  Conference  for  regulatory  improvement  and  business 
climate. The Conference is expected to contribute to reducing the regulatory burden faced by 
SMEs  and  firms  at  large  when  operating  across  different  regions.  This  would  benefit 
investment  measures  to  support  SMEs  under  Component 13  (Support  to  SMEs),  but  also 
other investment measures where the good functioning of the internal market plays a role in 
allowing  firms  to  grow  and  expand  their  activity  throughout  the  country,  such  as 
Component 12 (Industrial Policy) or Component 14 (Tourism). The impact of these measures 
on the business climate will be reinforced by other measures in Component 13, such as new 
regulatory  provisions  supporting  business  creation  and  growth,  a  measure  to  combat  late 
payment in commercial transactions, the proportionality test for regulation on access to and 
exercise  of  professions,  and  a  reform  seeking  to  render  the  insolvency  framework  more 
effective.  Effective  investments  will  also  be  achieved  thanks  to  a  more  effective  justice 
system,  to  which  measures  envisaged  in  Component 11  to  promote  procedural  efficiency, 
including  investments  in  digitalisation,  and  to  foster  organisational  efficiency  in  the  justice 
system. 

Finally,  the  labour  market  reforms  are  expected  to  be  mutually  reinforced  by  the 
numerous  measures  foreseen  to  increase  the  level  of  skills  and  ensure  that  vocational 
training responds to labour market needs, which in turn should translate into enhanced 
social cohesion, and will also support the sustainability of the pension reform. The labour 
market reforms seek to address important structural weaknesses of the Spanish labour market, 
notably  the  high  rates  of  structural  unemployment  and  youth  unemployment  and  the 
widespread  use  of  temporary  contracts.  Measures  foreseen  in  Components 19,  20  and  21 
should  allow  people  to  gain  skills  that  would  enhance  their  employability.  Higher 
employment rates and better quality jobs  will in  turn result in  more inclusive growth and a 
reinforced  social  cohesion,  and  thus  complement  measures  currently  envisaged  in 
Component 22 (Care Economy, Equality and Inclusion). Reforms and investments targeted at 
children  will  mutually  reinforce  each  other  and  contribute  to  durably  strengthen  human 
capital. Longer working lives and a higher participation of older workers will also contribute 
to  future  adequacy  and  mitigate  the  risks  for  sustainability  related  to  the  reforms  of  the 
pension  system  envisaged  in  Component 30  (Pension  system  reform).  Reforms  aimed  at 
reducing  child  poverty  in  Components 22  (Care  Economy,  Equality  and  Inclusion)  and  28 
(Taxation), 
in 
Component  21 (Education), will support investments aimed at reducing early school living 
and at improving educational outcomes for vulnerable children in that component. 

in  early  childhood  education  and  care 

together  with 

investments 

To  conclude  this  Section,  the  plan  does  not  present  inconsistencies  or  contradictions 
between  the  content  of  the  different  components.  Due  care  was  given  to  ensure  that 
implementation  timelines  and  reforms  and  investments  were  aligned  to  ensure  successful 
delivery  of  the  measures.  Finally,  and  in  order  to  promote  wider  coherence  across 

98 

 
instruments,  notably  with  the  European  cohesion  policy  funds,  a  balanced  territorial 
allocation of resources is encouraged. 

Conclusion on the assessment of criteria 2.11 of Annex  V to the RRF Regulation 

Taking  into  consideration  the  qualitative  assessment  of  all  components  of  Spain’s  recovery 
and resilience plan, their individual weight (importance, relevance, financial allocation) and 
their interactions, the plan contains measures for the implementation of reforms and public 
investments which, to a high extent, represent coherent actions. This would warrant a rating 
the  RRF  Regulation.
of  A  under 

the  assessment  criterion 2.11  of  Annex V 

to 

99 

 
5.  REFERENCES 

Almeida, V., Barrios, S., Christl, M., De Poli, S., Tumino, A., Van der Wielen, W. (2020): 
“Households´ income and the cushioning effect of fiscal policy measures during the Great 
Lockdown”, JRC Working Paper on Taxation and Structural Reforms, 06/2020. 

Bank of Spain (2021), Los efectos en el empleo del SMI: nueva evidencia para España, 
Documentos Ocasionales N.º 2113, 

Bauer,  P.,  Fedotenkov,  I.,  Genty,  A.,  Hallak,  I.,  Harasztosi,  P.,  Martínez  Turégano,  D., 
Nguyen,  D.,  Preziosi,  N.,  Rincon-Aznar,  A.  and  Sánchez-Martínez,  M.,  Productivity  in 
Europe: Trends and drivers in a service-based economy, JRC, 2020. 

Benedetti  Fasil,  C.,  Del  Rio,  J.C.,  Domnick,  C.,  Fako,  P.,  Flachenecker,  F.,  Gavigan,  J., 
Janiri,  M.,  Stamenov,  B.  and  Testa,  G.,  High  Growth  Enterprises  in  the  COVID-19  Crisis 
Context,  EUR  30686  EN,  Publications  Office  of  the  European  Union,  Luxembourg,  2021, 
ISBN 978-92-76-37269-1, doi:10.2760/63402, JRC124469. 

Castellazzi L. et al., Assessment of second long-term renovation strategies under the Energy 
Efficiency  Directive,  EUR  29605  EN,  Publications  Office  of  the  European  Union, 
Luxembourg, 2019, ISBN 978-92-79-98727-4, doi:10.2760/973672, JRC114200. 

Christl,  M.,  De  Poli,  S.,  Figari,  F.,  Hufkens,  T.,  Leventi,  C.,  Papini,  A.    and  Tumino,  A. 
(2021)  “The  cushioning  effect  of  fiscal  policy  in  the  EU  during  the  COVID-19  pandemic” 
JRC Working Papers on Taxation and Structural Reforms, 02/2021 (forthcoming). 

European 
https://www.eib.org/attachments/efs/eibis_2020_spain_en.pdf 

Investment 

(2020), 

Bank 

Investment 

Survey 

Spain. 

European Innovation Scoreboard 2020. https://ec.europa.eu/docsroom/documents/42981 

Martinez Turégano, D., “Sectoral productivity vis-à-vis the US and heterogeneity within the 
EU27:  the  role  of  firm  size  distribution  and  firm  demographics”,  EUR  30460  EN, 
Publications Office of the European Union,  Luxembourg, 2020,  ISBN 978-92-76- 25439-3, 
doi: 10.2760/891199, JRC122059. 

OECD (2021), Economic Surveys: Spain, OECD Publishing, Paris.  

Righi, R., López-Cobo, M., Alaveras, G., Samoili, S., Cardona, M.., Vázquez-Prada Baillet, 
M., Ziemba, L.W., and De Prato, G., Academic offer of advanced digital skills in 2019-20. 
International  comparison.  Focus  on  Artificial  Intelligence,  High  Performance  Computing, 
Cybersecurity and Data Science, EUR 30351 EN, Publications Office of the European Union, 
Luxembourg, 2020, ISBN 978-92-76-21541-9, doi:10.2760/225355, JRC121680. 

Zangheri,  P.,  Armani,  R.,  Kakoulaki,  G.,  Bavetta,  M.,  Martirano,  G.,  Pignatelli,  F., 
Baranzelli,  C.  Building  energy  renovation  for  decarbonisation  and  Covid-19  recovery.  A 
snapshot  at  regional  level,  EUR  30433  EN,  Publications  Office  of  the  European  Union, 
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Luxembourg, 

978-92-76-24766-1, 

doi:10.2760/08629, 

ISBN 

2020, 

100 

 
6.  ANNEX 

6.1. Climate tracking and digital tagging table  

Climate 

Digital 

Int. 
Field 

Coeff. 
% 

Int. 
Field 

Coeff. 
% 

Estimated 
Costs 
(EUR m), 
excluding 
VAT 

900 

048 

40% 

1 190 

048 

40% 

310 

07759 

100% 

Measure/ 
Sub-
Measure 
ID 

C1.I1a  

C1.I1b.i  

C1.I1b.ii  

Measure/Sub-Measure Name 

of 

of 

zones 

urban 

projects 

metropolitan 

and 
Low-emission 
and 
transformation 
metropolitan 
transport 
(Autonomous  Community  actions): 
line of action 1 
low-emission 
Development 
zones 
the 
for 
and 
sustainable transformation of urban 
and 
transport 
(municipal  actions):  lines  of  action 
2a  and  2b  (except  for  cycling 
infrastructure),  and  digitalisation 
(municipal  actions)  line  of  action 
2d 
low  emission 
Development  of 
sustainable 
and 
zones 
transformation  projects  for  urban 
and 
transport 
(municipal  actions):  lines  of  action 
2a  and  2b  (cycling  infrastructure), 
and  fleet  transformation  to  zero 
emissions  vehicles  and  recharging 
points 
line  of 
(municipalities) 
action 2c 

metropolitan 

59 This measure also includes investment in zero emission vehicles. For that part the ‘Methodology for climate 
tracking’ annexed to the  Recovery and Resilience Facility Regulation does  not set out intervention  fields that 
would  allow  for  climate  or  environmental  tracking  of  electric  vehicles  or  plug-in  hybrid  vehicles,  except  for 
vehicles for urban transport falling under intervention field 074. According to Article 18(4)(e) of the Regulation, 
the  methodology  should  however  ‘be  used  accordingly  for  measures  that  cannot  be  directly  assigned  to  an 
intervention field listed in Annex VI’. In this context, the Commission has applied a 100% climate contribution 
coefficient for the zero-emission vehicles of all categories (this includes battery electric and fuel cell/hydrogen-
powered  vehicles)  included  in  this  measure.  This  measure  also  includes  investments  in  cycling  infrastructure 
(075) as well with a 100% climate coefficient. 

101 

 
 
  
    
 
  
  
  
  
  
  
                                                 
Measure/ 
Sub-
Measure 
ID 

C1.I1d  

C1.I2  

Measure/Sub-Measure Name 

in  urban 
Improvement  actions 
environments  (crossings)  on  the 
State Road Network to promote the 
mobility of pedestrians and cyclists, 
and  other  new  forms  of  mobility 
(scooters), with the aim at reducing 
car  spaces,  reducing  vehicle  speed, 
reducing  both  air  emissions  and 
noise pollution: line of action 4 
Scheme  of 
the 
for 
installation of recharging points, the 
purchase  of  electric  and  fuel  cell 
vehicles  and  innovation  in  electro-
mobility, recharging and renewable 
hydrogen 

incentives 

Climate 

Digital 

Int. 
Field 

Coeff. 
% 

Int. 
Field 

Coeff. 
% 

Estimated 
Costs 
(EUR m), 
excluding 
VAT 

105 

048 

40% 

2 000 

n/a60 

100% 

C1.I3a  

Investments 
infrastructure 

in 

railway 

1 502 

069bis 

100% 

C1.I3b  

C2.I1.a.i  

C2.I1b.i  

of 

Digitalisation 
security, 
information  and  access  control 
systems 
stations 
railway 
at 
providing PSO services 

Energy  rehabilitation  of  buildings 
with  on  average  primary  energy 
savings of at least 30% 

Energy  rehabilitation  of  buildings 
with  on  average  primary  energy 
savings of at least 30% 

119 

070 

40% 

070 

100% 

856 

025bis 

100% 

1 716 

025bis 

100% 

60  The  main  part  of  this  measure  concerns  incentive  for  the  purchase  of  zero  emission  vehicles  or  for  the 
development on innovative projects in zero emission vehicles/mobility The ‘Methodology for climate tracking’ 
annexed to the Recovery and Resilience Facility Regulation does not set out intervention fields that would allow 
for  climate  or  environmental  tracking  of  electric  vehicles  or  plug-in  hybrid  vehicles,  except  for  vehicles  for 
urban  transport  falling  under  intervention  field  074.  According  to  Article  18(4)(e)  of  the  Regulation,  the 
methodology  should  however  ‘be  used  accordingly  for  measures  that  cannot  be  directly  assigned  to  an 
intervention field listed in Annex VI’. In this context, the Commission has applied a 100% climate contribution 
coefficient for the zero-emission vehicles of all categories (this includes battery electric and fuel cell/hydrogen-
powered  vehicles)  included  in  this  measure.  This  measure  also  includes  investment  in  alternative  fuel 
infrastructure (077) that would also have a 100% climate coefficient. 

102 

 
 
  
    
 
  
  
  
  
  
  
  
  
  
  
                                                 
Measure/ 
Sub-
Measure 
ID 

C2.I1b.ii  

Measure/Sub-Measure Name 

Existing 
book/Rehabilitation 
improve energy efficiency 

building 
to 

projects 

Climate 

Digital 

Int. 
Field 

Coeff. 
% 

Int. 
Field 

Coeff. 
% 

Estimated 
Costs 
(EUR m), 
excluding 
VAT 

278 

025 

40% 

C2.I1c  

environment 
Favourable 
rehabilitation 
activity 
incentives): line of action 3 

to 
(tax 

450 

025bis 

100% 

C2.I2  

C2.I3  

C2.I4  

C2.I5a  

C3.I1  

C3.I3  

C3.I4  

C3.I5.a  

to 

to 

the 

programme 

New 
promote 
affordable  rented  housing,  which 
are  energy  efficient  (at  least  20% 
lower  primary  energy  demand 
compared 
NZEB 
requirements) 
Energy  Rehabilitation  of  Buildings 
Programme  (PREE),  aligned  with 
energy  efficiency  criteria  with  on 
average  primary  energy  savings  of 
at least 30% 
Energy  transition  programme  and 
demographic  challenge  with  on 
average  primary  energy  savings  of 
at least 30% 

Energy 
rehabilitation  of  public 
buildings  with  on  average  primary 
energy savings of at least 30% 

farming 

livestock 

Plan  for  improving  efficiency  and 
sustainability in irrigation 
Plan  to  promote  the  sustainability 
and  competitiveness  of  agriculture 
and 
(II): 
Strengthen  capacity  building  and 
biosecurity systems in nurseries and 
livestock farms 
Plan  to  promote  the  sustainability 
and  competitiveness  of  agriculture 
and 
(III): 
Investments 
precision 
agriculture,  energy  efficiency  and 
circular economy  and  in  the  use  of 
renewable  energy  and  gases  in  the 
agriculture and livestock sector 
Strategy for the digitalisation of the 
agri-food  and  forestry  sector  and 
the rural environment. Technology-
based entrepreneurship line 

farming 
in 

livestock 

103 

1 000 

025ter 

40% 

300 

025bis 

100% 

1 000 

025bis 

100% 

758 

026bis 

100% 

563 

040 

40% 

38 

027 

100% 

307 

047 

40% 

30 

010 

100% 

 
 
  
    
 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
Measure/ 
Sub-
Measure 
ID 

C3.I5b  

C3.I5c  

C3.I5d  

C3.I6a  

C3.I6b  

C3.I7  

C3.I8  

C3.I9  

Measure/Sub-Measure Name 

Climate 

Digital 

Int. 
Field 

Coeff. 
% 

Int. 
Field 

Coeff. 
% 

Estimated 
Costs 
(EUR m), 
excluding 
VAT 

4 

1 

3 

010 

100% 

010 

100% 

010 

100% 

3 

049 

40% 

011 

100% 

7 

049 

40% 

14 

050 

40% 

021 

40% 

11 

023 

40% 

021 

40% 

11 

011 

100% 

rural 

innovation 

(radiolink  Faro 

Innovation  Hub 

Strategy for the digitalisation of the 
agri-food  and  forestry  sector  and 
the rural environment. Creation of a 
Digital 
for 
businesses in the agri-food sector 
Strategy for the digitalisation of the 
agri-food  and  forestry  sector  and 
the 
environment. 
Establishment of an observatory for 
the digitalisation of the agricultural 
sector 
Strategy  for  the  Digitisation  of  the 
Agri-Food  and  Forestry  Sector  and 
the Rural Environment. Creation of 
a platform of AKIS advisors 
Plan  to  boost  the  sustainability, 
and 
research, 
digitalisation  of the  fisheries  sector 
(I):  Purchase  of  ICT  for  marine 
reservoirs 
de 
Alborán,  night  vision  equipment 
and drones) 
Plan  to  boost  the  sustainability, 
research, 
and 
digitalisation  of the  fisheries  sector 
(I): Other actions k est 
Plan  to  boost  the  sustainability, 
and 
research, 
digitalisation  of the  fisheries  sector 
(II):  Boosting 
and 
aquaculture research and supporting 
training  to  improve  the  monitoring 
of fish stocks 
Plan  to  boost  the  sustainability, 
research, 
and 
digitalisation  of the  fisheries  sector 
(III):  Technological  development 
and  innovation  in  the  fisheries  and 
aquaculture sector 
Plan  to  boost  the  sustainability, 
research, 
and 
digitalisation  of the  fisheries  sector 
(IV): Digitalisation and use of ICTs 
in the fisheries sector 

innovation 

innovation 

innovation 

innovation 

fisheries 

104 

 
 
  
    
 
  
  
  
  
  
  
  
  
 
 
Climate 

Digital 

Int. 
Field 

Coeff. 
% 

Int. 
Field 

Coeff. 
% 

Estimated 
Costs 
(EUR m), 
excluding 
VAT 

44 

050 

40% 

61 

77 

050 

40% 

011 

100% 

050 

40% 

011 

100% 

552 

050 

40% 

131 

046bis 

40% 

421 

050 

40% 

170 

036 

100% 

231 

050 

40% 

475 

041bis 

40% 

100 

040 

40% 

67 

040 

40% 

225 

225 

350 

225 

040 

40% 

035 

100% 

040 

40% 

040 

40% 

011 

100% 

Measure/ 
Sub-
Measure 
ID 

C3.I10  

C4.I1a  

C4.I1b 

C4.I2  

C4.I3a  

C4.I3b  

C4.I4a  

C4.I4b 

C5.I1a  

C5.I1b  

C5.I1c  

C5.I2a  

Measure/Sub-Measure Name 

innovation 

Plan  to  boost  the  sustainability, 
research, 
and 
digitalisation  of the  fisheries  sector 
(V):  Supporting  the  fight  against 
illegal,  unreported  and  unregulated 
fishing 
Digitalisation  of  natural  heritage 
knowledge 

Digitalisation  of  natural  heritage 
knowledge: Other actions  
Conservation  of  terrestrial  marine 
biodiversity 

Recovery  of  areas  affected  by 
mining with efficiency criteria 

green 

Other ecosystem restoration actions 
to  protect  nature  and  biodiversity, 
natural  heritage  and  resources,  and 
develop 
blue 
infrastructure  
Sustainable  forest  management  for 
the  prevention  and  management  of 
climate 
fire 
extinguishing 

related 

risks: 

and 

Other  actions  of  sustainable  forest 
management  

of 

purification, 
Materialisation 
sanitation  and  reuse  actions  for 
water  collection  and 
treatment 
compliant  with  energy  efficiency 
criteria 
Improving  efficiency  and  reducing 
losses in water use 
Investments  to  improve  the  safety 
of dams and reservoirs 

Monitoring  and  restoration  actions 
in river ecosystems 

C5.I2b  

Actions to mitigate flood risk 

C5.I2c  

C5.I3a  

Measures  to  reduce  groundwater 
abstraction 
Improving  knowledge  and  use  of 
water resources 

105 

 
 
  
    
 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
Measure/ 
Sub-
Measure 
ID 

C5.I3b  

C5.I3c  

C5.I4  

C6.I1  

C6.I2a  

C6.I2b  

C6.I2c  

Climate 

Digital 

Int. 
Field 

Coeff. 
% 

Int. 
Field 

Coeff. 
% 

Estimated 
Costs 
(EUR m), 
excluding 
VAT 

55 

035 

100% 

011 

100% 

100 

035 

100% 

011 

100% 

269 

037 

100% 

2 988 

064 

100% 

1 010 

065 

100% 

Measure/Sub-Measure Name 

Action  to  monitor  rainfall  in  river 
basins and coastlines61 

Improving 
meteorological 
observation  and  monitoring  and 
prevention of climate risks62 
Adaptation  of  the  coast  to  climate 
change  and 
implementation  of 
Marine  Strategies  and  Maritime 
Spatial Planning Plans 

National rail transport network:Rail 
investment  on  the  core  European 
Corridors 

Construction  and  modernisation  of 
new 
(TEN-T 
infrastructure 
comprehensive network) 

rail 

Digitalisation  of  the  State  Road 
Network 

35 

Noise  Reduction  Action  Plans  on 
the State Road Network 

302 

048 

40% 

C6.I2f  

Single European Sky: Digitalisation 

107 

C6.I2g  

Digital transformation of MITMA 

50 

C6.I3a  

Development 
strategic 
intermodal and logistic terminals on 
TEN-T network 

of 

217 

078 

40% 

C6.I3b  

Inland accessibility to Spanish ports 
and terminals (rail investments) 

408 

064 

100% 

063 

100% 

084 

100% 

011 

100% 

61 This is a digital investment that is also 100% contributing to the adaptation to climate change, and prevention 
and management of climate related risks. For this reasons, the measure receives a 100% coefficient for both the 
climate change and digital objectives. 
62 This is a digital investment that is also 100% contributing to the adaptation to climate change, and prevention 
and management of climate related risks. For this reasons, the measure receives a 100% coefficient for both the 
climate change and digital objectives. 

106 

 
 
  
    
 
  
  
  
  
  
  
 
 
  
  
 
 
 
 
  
  
  
  
                                                 
Measure/ 
Sub-
Measure 
ID 

Measure/Sub-Measure Name 

Climate 

Digital 

Int. 
Field 

Coeff. 
% 

Int. 
Field 

Coeff. 
% 

Estimated 
Costs 
(EUR m), 
excluding 
VAT 

C6.I3d  

C6.I4a  

C6.I4d  

C6.I4e  

C6.I4g  

C6.I4i  

C6.I4k  

C6.I4  

C7.R3  

C7.I1  

Improving 
accessibility of ports 

the 

internal 

rail 

ERTMS 
management systems 

on-board 

traffic 

177 

064 

100% 

12 

071 

40% 

071 

100% 

of 

of 

railway 

adaptation 
cargoes 

or 
Construction, 
upgrading 
and 
intermodal  rail-road  terminals  and 
their connections 
Support  to  multimodal  sustainable 
freight transport (rail and maritime) 
based  on  ECO-INCENTIVES  to 
supply and demand 
Actions to support the renovation or 
adaptation 
tractor 
equipment  with  other  material 
using  alternative  fuels  such  as 
hydrogen or electricity 
Intelligent transport services for the 
road sector (ITS) 
Actions  supporting  the  renovation 
or  upgrading  of  means 
and 
machinery  for  the  deployment  of 
sustainable  road  pavement  with 
reduced  carbon  footprint  and  noise 
reduction 

Projects  for  the  digitalisation  of 
passenger  and 
transport 
services at regional and local level 

freight 

of 

Development 
energy 
communities  contributing  to  the 
low  carbon  economy  and 
to 
resilience to climate change 

Development 
innovative 
into 
renewables, 
buildings and production processes 

integrated 

of 

75 

079 

40% 

120 

079 

40% 

64 

072bis 

100% 

20 

063 

100% 

3 

048 

40% 

220 

010 

100% 

100 

027 

100% 

2 365 

029 

100% 

C7.I2  

Sustainable energy on islands 

700 

029 

100% 

C8.I1  

Deployment of energy storage, with 
contribution  to  green  and  digital 
transitions 

684 

033 

100% 

033 

40% 

107 

 
 
  
    
 
  
  
  
  
  
  
  
  
 
 
  
  
 
 
  
  
  
  
  
  
Measure/ 
Sub-
Measure 
ID 

C8.I2  

C8.I3  

C9.I1  

C10.I1a  

C10.I1b  

C10.I1c  

C10.I1d  

C11.I1  

Measure/Sub-Measure Name 

distribution 
of 
Digitalisation 
networks  to  align  them  with  the 
energy transition 

New business models in the energy 
transition,  with  contribution 
to 
green and digital transitions 

Renewable  hydrogen:  a  country 
project 

Environmental  restoration  plan  for 
closed  or  abandoned  mining  sites 
and  deteriorated  land  adjacent  to 
thermal  or  nuclear  power  stations, 
compliant with efficiency criteria  

Digital,  social  and  environmental 
infrastructure plan in just transition 
territories 

Projects  of  R  &  D  &  I  in  energy 
storage and energy efficiency 
Plan  to  support  the  re-skilling  and 
employability  of  workers  and 
people  affected  by 
the  energy 
transition 

transformation 

Digital 
and 
modernisation  of  the  General  State 
Administration 

Climate 

Digital 

Int. 
Field 

Coeff. 
% 

Int. 
Field 

Coeff. 
% 

Estimated 
Costs 
(EUR m), 
excluding 
VAT 

525 

033 

100% 

033 

40% 

156 

027 

100% 

033 

40% 

1 555 

022 

100% 

150 

046bis 

40% 

100 

050 

40% 

30 

022 

100% 

20 

01 

100% 

960 

011 

100% 

C11.I2  

Projects for the digitalisation of the 
General State Administration 

1 205 

011 

100% 

C11.I3  

C11.I4  

C12.I1  

transformation 

Digital 
and 
modernisation  of  the  Ministry  of 
Territorial  Policy  and  the  Civil 
Service  and  the  administrations  of 
the  Autonomous  Communities  and 
the local authorities 
Energy  Transition  Plan 
the 
General  State  Administration  with 
on  average  primary  energy  savings 
of at least 30% 
Sectoral  data  spaces  (contribution 
to  transformative  projects  for  the 
digitalisation of strategic productive 
sectors) 

in 

1 000 

011 

100% 

1 071 

026bis 

100% 

400 

021quat
er 

100% 

108 

 
 
  
    
 
  
  
  
  
  
  
  
  
  
  
 
 
 
 
 
 
  
  
  
  
Measure/Sub-Measure Name 

Climate 

Digital 

Int. 
Field 

Coeff. 
% 

Int. 
Field 

Coeff. 
% 

Estimated 
Costs 
(EUR m), 
excluding 
VAT 

and 

climate 

Processes  of  research,  technology 
transfer  and  innovation  and  for 
business-to-business 
cooperation 
with  a  focus  on  the  low-carbon 
change 
economy 
adaptation of the Spanish industrial 
sector 
Processes  of  research,  technology 
transfer  and  innovation  and  for 
cooperation  between  enterprises, 
with  a 
the  circular 
economy and the Spanish industrial 
sector 

focus  on 

to 

Projects 
energy 
efficiency  in  the  industrial  sector 
(SMEs and large enterprises) 

improve 

457 

022 

100% 

457 

023 

40% 

914 

024 

40% 

Measure/ 
Sub-
Measure 
ID 

C12.I2.a.i  

C12.I2.a.i
i  

C12.I2.a.i
ii  

C12.I2.a.i
v  

Digitalisation  of 
industrial 
sector (SMEs and large enterprises) 

the 

457 

010 

100% 

C12.I2b  

C12.I2c  

to 

process 

and 
Support 
organisational  innovation  projects 
in  key  areas  for  the  industrial 
transition: line of action 2 
Support to smaller scale projects for 
the  implementation  of  digitisation 
in processes and the organisation of 
industrial companies: line of action 
3 

118 

024 

40% 

95 

010bis 

100% 

C12.I2e  

Support  to  sustainable  industrial 
infrastructure: line of action 5 

13 

026 

40% 

C12.I3  

C13.I1  

Plan to support  the  implementation 
of  waste 
the 
promotion of the circular economy 

legislation  and 

850 

042 

40% 

Support 
including digital transition action 

entrepreneurship 

to 

329 

100 

40% 

C13.I3  

Digitalisation  and  Innovation  of 
SMEs 

3 548 

010 

100% 

C14.I1.a.i  

transition 

Actions  in  the  field  of  green  and 
(100% 
sustainable 
coefficient)  Adaptation  to  climate 
its 
change  of  destination  and 
of 
development 
infrastructure: 

139 

035 

100% 

109 

 
 
  
    
 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
 
 
 
 
  
  
Measure/ 
Sub-
Measure 
ID 

Measure/Sub-Measure Name 

Climate 

Digital 

Int. 
Field 

Coeff. 
% 

Int. 
Field 

Coeff. 
% 

Estimated 
Costs 
(EUR m), 
excluding 
VAT 

knowledge  and  development  of 
plans  in  relation  to  climate  change 
risk  prevention, 
adaptation  and 
including 
warning, 
early 
assessment 
and 
monitoring 
systems,  promotion  of  investment 
for the prevention and management 
of specific risks on the territory 
Actions  in  the  field  of  green  and 
sustainable 
(40% 
coefficient)  Circular 
economy, 
management  of  natural  resources, 
protection  and  enhancement  of 
natural ecosystem. 
Sustainable  mobility  and  energy 
efficiency 
tourism 
destinations 
Actions  in  the  field  of  the  digital 
transition 

transition 

actions 

for 

intelligence 
and 
Digitisation 
programme  for  destinations  and 
tourism sector 

C14.I1.a.i
i  

C14.I1b  

C14.I1c  

C14.I2  

139 

050 

40% 

372 

073 

100% 

186 

337 

011 

100% 

010 

100% 

C14.I4b  

Energy  efficiency  and  circular 
economy in tourism enterprises 

220 

024 

40% 

C15.R1  

C15.R2  

C15.I1  

C15.I2  

C15.I3  

Reforming 
Telecoms 
the 
Regulatory  Framework:  General 
Law,  Regulatory  Instruments  and 
Implementation Instruments 
Spectrum 
5G: 
Roadmap 
assignment, 
and 
management 
reduction, 
burden 
deployment 
Cybersecurity  Act  5G  and  Support 
to Local Authorities 
cohesion 
Fostering 
deployment: 
through 
Ultra-fast  broadband  extension  and 
mobility coverage of 30 Mbps 
Reinforcing 
Connectivity 
in 
Socio-
Centres, 
Reference 
Economic  Drivers  and  Sectoral 
Digitalisation Tracking Projects 
Connectivity  vouchers  for  SMEs 
and vulnerable groups 

territorial 

network 

8 

110 

812 

480 

80 

011 

100% 

054bis 

100% 

052 

100% 

053 

100% 

012 

100% 

110 

 
 
  
    
 
  
  
  
  
  
  
 
 
  
  
 
 
 
 
 
 
 
 
 
 
Climate 

Digital 

Int. 
Field 

Coeff. 
% 

Int. 
Field 

Coeff. 
% 

Estimated 
Costs 
(EUR m), 
excluding 
VAT 

80 

500 

1 405 

524 

500 

Measure/ 
Sub-
Measure 
ID 

C15.I4  

C15.I5  

C15.I6  

C15.I7  

C16.I1  

C17.I7  

C17.I8  

C18.I6  

C19.I1  

C19.I2  

Measure/Sub-Measure Name 

infrastructure  renewal  and 

Data 
sustainability 

Deployment  of  cross-border  digital 
infrastructure 
Deployment  of  5G  networks,    and 
5G innovations 
Cybersecurity:  Strengthening 
the 
capacities  of  citizens,  SMEs  and 
professionals; 
the 
sector’s cybersecurity ecosystem 

Improving 

Intelligence  
National  Artificial 
Strategy,  including  R&I  in  AI  and 
talent development  

R&D  +  R  &  I  actions  linked  to 
environmental  protection,  the  fight 
against climate change, new energy 
sources  and  key  technologies  and 
materials for the energy transition  

R  &  D  +  R  &  I  actions  linked  to 
sustainable automotive (PTAS) 

Creation  of  a  “Data  Lake”  for  the 
Health sector 

Transversal digital skills 
Digital 
Education 

Transformation 

of 

C19.I3  

Digital skills for employment 

C19.I4  

Digital Professionals 

for 

employed 

Reskilling  and  upskilling  of  the 
labour  force  linked  to  professional 
qualifications:  Digital  modular 
persons 
offer 
associated with competence units of 
the  National 
of 
Professional Qualifications 
reskilling 
Contribution 
Upskilling to green transition 

Catalogue 

and 

C20.I1b  

C.20.I1d.i  

82 

023 

40% 

40 

024 

40% 

100 

735 

1 412 

1 256 

190 

92 

158 

01 

100% 

052 

100% 

055 

100% 

054bis 

100% 

021quin
quies 

100% 

009bis 

100% 

095 

100% 

108 

108 

108 

108 

100% 

100% 

100% 

100% 

108 

100% 

C20.I2  

Digital transformation of vocational 
training 

256 

016 

40% 

111 

 
 
  
    
 
 
 
 
 
  
  
  
  
 
 
  
  
  
  
  
  
 
 
 
 
 
 
 
 
 
 
  
  
 
 
Measure/Sub-Measure Name 

Climate 

Digital 

Int. 
Field 

Coeff. 
% 

Int. 
Field 

Coeff. 
% 

Estimated 
Costs 
(EUR m), 
excluding 
VAT 

Measure/ 
Sub-
Measure 
ID 

C21.I5  

C22.I1b  

C22.I2b  

C22.I3b  

C22.I4b  

of 

Improvement 
infrastructure, 
technologies, 
university assessment 

teaching 

digital 
equipment, 
and 

E-Health  services  and  applications: 
teleassistance  for  long-term  care 
and support 

Technological 
social services 

transformation  of 

Improving  accessibility  of  AGE 
websites and mobile applications 

Improving 
comprehensive 
improvement  of  control  device 
services 

C22.I5b   Digital investment host system 

C23.I1b.i  

C23.I1b.ii  

JOVEN-TánDEM EMPLOYMENT 
Programme  with  allocation 
for 
green skills 

JOVEN-TánDEM EMPLOYMENT 
Programme  with  allocation 
for 
digital skills 

C23.I1c.i  

C23.I1c.ii  

First 
in 

professional 
Programme 
experience 
public 
administrations  with  allocation  for 
green skills 
professional 
Programme 
experience 
public 
administrations  with  allocation  for 
digital skills 

First 
in 

147 

240 

216 

12 

26 

14 

30 

30 

108 

100% 

013 

100% 

011 

100% 

020 

40% 

011 

100% 

011 

100% 

108 

100% 

01 

100% 

37 

01 

100% 

37 

108 

100% 

C23.I2b.i  

C23.I2b.ii  

Support line for women in rural and 
urban  areas  with  allocation  for 
digital skills 

Support line for women in rural and 
urban  areas,  with  allocation  for 
digital skills 

C23.I3b.i  

Training for workers in ERTE with 
allocation for green skills 

26 

01 

100% 

26 

108 

100% 

107 

01 

100% 

C23.I3b.ii  

Training for workers in ERTE with 
allocation for digital skills 

107 

108 

100% 

112 

 
 
  
    
 
 
 
  
  
  
  
  
  
  
  
  
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Measure/ 
Sub-
Measure 
ID 

C23.I4b  

C.24.I1c  

C.24.I1d  

C.24.I1e  

Measure/Sub-Measure Name 

cultural 

industries 

transformation 

and  micro-
Entrepreneurship 
enterprises: New territorial projects 
demographic 
the 
addressing 
facilitating 
and 
challenge 
in 
transformation, 
productive 
particular 
towards  a  green  and 
digital economy 
Strengthening  the  competitiveness 
/  
of 
Competitiveness 
and 
professionalisation  and  support  for 
accelerators 
cultural 
including 
to 
the 
boosting 
digital culture and the incorporation 
of  new  technologies  into  cultural 
and creative industries 
Strengthening  the  competitiveness 
of  cultural  industries  supporting 
intellectual 
projects 
property 
management 
operators 
Strengthening  the  competitiveness 
of 
/ 
Digitalisation 
intellectual 
property  management  systems    / 
of 
Digital 
administrative 
with 
intellectual property competence 

to  digitise 
rights 

transformation 

industries 

cultural 

units 

of 

C.24.I1f  

C24.I2d  

Strengthening  the  competitiveness 
of  cultural  industries  (promotion 
and digitisation of the book sector) 

Promoting  culture  along  territorials 
(purchase  of  licences  for  digital 
books) 

C24.I3c  

Digitalisation    of  major  cultural 
services: National Library of Spain 

Climate 

Digital 

Int. 
Field 

Coeff. 
% 

Int. 
Field 

Coeff. 
% 

Estimated 
Costs 
(EUR m), 
excluding 
VAT 

55 

047 

40% 

016 

40% 

25 

15 

1 

25 

13 

7 

018 

40% 

010 

100% 

011 

100% 

010 

100% 

021bis 

40%63 

011 

100% 

63 A coefficient of 40% is applied because the measure is not fully dedicated to digital books but also includes 
paper books. 

113 

 
 
  
    
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
Measure/ 
Sub-
Measure 
ID 

C24.I3d  

C24.I3e  

C24.I3f  

C25.I1a  

C26.I1  

C26.I2a  

C26.I2b  

C26.I3a  

Measure/Sub-Measure Name 

Digitalisation  and  boosting  major 
cultural  services:  Plan  for  digital 
access to bibliographic heritage 

building 
of 

Digitalisation  and  boosting  major 
services:  Digitalisation, 
cultural 
capacity 
and 
interoperability 
archiving 
systems 
Digitalisation  and  boosting  major 
cultural 
to 
modernise public management tools 
and  put  in  place  an  integrated 
system 
and 
cataloguing of INAEM’s resources, 
assets, structures and infrastructure 

services:  Measures 

digitisation 

for 

for 

the  promotion, 
Programme 
modernisation  and  digitisation  of 
the audiovisual sector 

Digitisation of the sport sector 
Modernisation  of  sport  facilities  to 
improve  their  energy  performance  
according 
to  energy  efficiency 
criteria  
Modernisation of high performance 
sport  centres    to  improve  their 
energy  performance  according  to  
energy efficiency criteria 
sports 
Modernisation 
installations 
improve  energy 
efficiency  according  to    energy 
efficiency criteria 

of 

to 

Climate 

Digital 

Int. 
Field 

Coeff. 
% 

Int. 
Field 

Coeff. 
% 

Estimated 
Costs 
(EUR m), 
excluding 
VAT 

011 

100% 

011 

100% 

011 

100% 

021bis 

100% 

011 

100% 

3 

18 

11 

155 

76 

34 

026bis 

100% 

73 

026bis 

100% 

28 

026bis 

100% 

Int. Field = intervention field 
Coeff. = Coefficient for the calculation of support to climate change objectives and to digital 
transition, on the basis of Annex VI and Annex VII to the RRF Regulation 

114