Rescue plan for Spain, Portugal

EU approves financial assistance for Iberian nations

Spain and Portugal became the first EU countries to win Brussels’ approval Wednesday for their recovery plans seeking funding from the bloc’s multibillion- euro coronavirus rescue fund.

“The European Commission has decided to give its green light to Spain’s recovery and resilience plan,” commission chief Ursula von der Leyen said in Madrid, just hours after she signed off on the Portuguese plan.

Spain, whose economy has been particularly badly hit by the pandemic, will be the second- biggest beneficiary of the landmark 750 billion euro ($ 910 billion) recovery plan, Next Generation EU, which was drawn up nearly a year ago.

“These reforms, I’m deeply convinced, will make Spain come out of the pandemic stronger than ever before,” Von der Leyen said, noting that 40 percent of the funds would be driven into the green transition.

“Next Generation EU is our unique chance to move forward into a more green, a more digital, a more sustainable society.”

Spain is to receive 140 billion euros in funding. Half of the funds will be grants and the other half loans. Spain has pledged to invest a large part of it into the green transition.

Prime Minister Pedro Sanchez said it was “a historic day for Spain” but also for Europe “because the plans approved today for Portugal and Spain open the door to a new way of .. cooperating together and responding to the challenges we face as societies.”

Spain was particularly hard hit when the pandemic first erupted in early 2020, while Portugal suffered a major surge in cases at the start of 2021.

With both countries hugely dependent on tourism, their economies have been significantly affected.

Portugal, which currently holds the EU’s six- month rotating presidency, was the first country to submit its own plan back in April and is set to receive 16 billion euros in funding.

As holder of the rotating presidency, it has made the rapid adoption of these recovery plans a priority following their recommendation by the commission.

On Thursday, Von der Leyen heads to Greece and Denmark and then to Luxembourg on Friday on a tour that will take her to most of the EU’s 27 member states.

In setting off on Wednesday, she used her “COVID[- 19] passport” for the first time, the European health certificate which Belgium began using Wednesday and which will become operational across the EU on July 1.

“These reforms, I’m deeply convinced, will make Spain come out of the pandemic stronger than ever before.”

Ursula von der Leyen European Commission chief