Friday, July 1

Brussels gives the green light to the 3,000 million euros of the Spanish automotive PERTE

  • The Government must activate the plan approved by the European Commission before the end of this year to promote the automobile industry and its electrification.

The European Comission (CE) has given its approval of the 3 billion euro proposal of the Spanish government to carry out the strategic project for economic recovery and transformation (PERTE) of the electric and connected car, as part of the Spanish recovery and resilience plan after the coronavirus pandemic.

The Spanish proposal includes aid for investments in research, development and innovation and in environmental protection -including energy efficiency- for the application of several projects integrated in the value chain of electric and connected vehicles, as indicated by the European Commission in a statement. This program is open to consortia of interested companies, established within or outside of Spain.

Within the plan that the Government wants to activate before the end of the year, each consortium will include companies active in sectors related to electric or connected cars and that at least 40% of the partners must be SMEs. The grants will be awarded through a competitive selection process and will be awarded in the form of direct grants and preferential loans at reduced interest rates. According to the commission, this measure “will help Spain accelerate the transition towards more sustainable and connected mobility without unduly distorting competition.”

New value chain

The plan will be partially financed through the EU recovery and resilience fund following the positive evaluation by the Commission of the Spanish recovery and resilience plan and its adoption by the Council of the EU. “The Spanish scheme of 3,000 million euros will help create a more innovative and sustainable value chain for electric vehicles, in line with the rules of state aid and the objectives of the European Green Pact”, declared the Executive Vice President of the EC and Head of Competition, Margrethe Vestager.

After evaluating the Spanish proposal, the Commission considers that it is “necessary to facilitate investments in research, development and innovation”, as well as those dedicated to environmental protection in relation to energy efficiency in the supply chain for electric vehicles and connected.

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The plan specifies that the maximum amount of aid to a single beneficiary will be limited, an “appropriate” participation of SMEs will be guaranteed and the companies that participate will have to demonstrate that the requested support is limited “to the minimum necessary”.

The European Commission indicates that the request of the Spanish Government is “in line” with the rules of state aid of the European Union and with its political objectives, including those included in the European Green Deal, “without unduly distorting single market competition”.

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