Spanish government greenlights €16 billion ‘COVID-19 Recovery Fund’

The Spanish coalition government of PSOE’s socialists and left-wing Unidas Podemos/United We Can, approved a special package worth €16 billion, EURACTIV’s partner EFE reported.

The package will be directly transferred to Spain’s autonomous communities to help them mitigate the economic impact of the coronavirus pandemic, particularly for the tourism and services sectors, two essential elements of Spain’s GDP and key drivers of its growth.

Most of the COVID-19 fund will go towards the health sector, to which the government will allocate a total of €9 billion, of which €6 billion will be released in July and €3 billion in November. An additional €2 billion, which will be paid out in September, will be allocated to education, government sources told EFE.

The remaining €5 billion will go towards mitigating the reduced income due to the drop in the country’s overall economic activity.

On Tuesday (16 June), Spain’s progressive government also approved new credit lines worth €8 billion for SMEs and the self-employed, €5 billion to help big companies get out of the crisis, as well as €2.5 billion for SMEs and freelancers in the tourism sector.

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