The Independent Fiscal Responsibility Authority (AIReF) announced a new tool on Wednesday to analyze the impact of European funds associated with the Recovery Plan on the economy. The analysis showed that only 18.9 billion euros of these funds have contributed to the growth of the Gross Domestic Product (GDP), representing 24% of the total subsidies allocated. This amount has been executed in terms of National Accounting, which the institution believes closely mirrors the real execution of the Plan.
According to AIReF, a total of 32,052 million euros have been resolved in subsidies and tenders, but only 18,900 million euros have had a macroeconomic and budgetary impact. The impact on the GDP has been primarily through investments, although it is still below pre-pandemic levels. The institution calculates the impact on GDP by applying multipliers to the funds that have been utilized.
These findings align with the Government’s updated execution figure of 35,190 million euros. AIReF assumes that there is still time to execute the remaining funds (equivalent to 60% of the grant allocation) between now and 2026. However, the authority warns that as the deadline approaches, it becomes increasingly challenging to maintain this optimism.
AIReF’s president, Cristina Herrero, noted that both the figures in terms of National Accounting and budgetary figures are essential. The former reflects the actual investment in progress, while the latter signifies when disbursements are made. The institution will continue to monitor the execution of funds closely and adjust their assumptions as necessary to ensure the successful implementation of the Recovery Plan.