Spain Launches Comprehensive Economic Response Plan Amid U.S. Tariffs
President Pedro Sánchez announces a €14.1 billion initiative to buffer the Spanish economy from the effects of a U.S.-led trade war.
On Thursday, Spanish Prime Minister Pedro Sánchez unveiled the 'Plan de respuesta y para el relanzamiento comercial', a strategic initiative designed to shield Spain's economy from the adverse impacts of tariffs imposed by the United States.
The comprehensive plan will mobilize a total of €14.1 billion, with €7.4 billion being new financing and the remaining €6.7 billion sourced from existing instruments.
A central aim of the plan is to protect businesses and workers while reorienting Spain's productive capabilities towards new markets, emphasizing strategic autonomy.
As part of this effort, €5 billion will be redirected from the Plan de Recuperación, Transformación y Resiliencia to support industries particularly susceptible to the 'tariff shock.' This funding will facilitate the transformation and reorientation of production capacities toward sectors experiencing higher demand.
In addition, Sánchez's plan allocates €2 billion for credit insurance and export risk coverage.
An investment of €500 million will support the internationalization of small and medium-sized enterprises (SMEs), supplemented by a specific initiative from ICEX aimed at reinforcing the positions of affected sectors in the United States.
To enhance access to financing for companies, two lines of guarantees and intermediate financing from the ICO are set to be established, providing €6 billion to help meet operational costs.
Furthermore, the newly announced Industrial Productive Investment Support Fund will bring in €200 million for loans and equity participation aimed at modernizing or setting up new production plants.
Sánchez's announcement also included the execution of the new Moves Plan, equipped with €400 million to encourage the implementation of electric vehicles.
Additionally, the mechanism RED will be activated, designed to maintain employment levels and assist workers in companies significantly impacted by the commercial conflict until business activities stabilize.
The comprehensive plan will mobilize a total of €14.1 billion, with €7.4 billion being new financing and the remaining €6.7 billion sourced from existing instruments.
A central aim of the plan is to protect businesses and workers while reorienting Spain's productive capabilities towards new markets, emphasizing strategic autonomy.
As part of this effort, €5 billion will be redirected from the Plan de Recuperación, Transformación y Resiliencia to support industries particularly susceptible to the 'tariff shock.' This funding will facilitate the transformation and reorientation of production capacities toward sectors experiencing higher demand.
In addition, Sánchez's plan allocates €2 billion for credit insurance and export risk coverage.
An investment of €500 million will support the internationalization of small and medium-sized enterprises (SMEs), supplemented by a specific initiative from ICEX aimed at reinforcing the positions of affected sectors in the United States.
To enhance access to financing for companies, two lines of guarantees and intermediate financing from the ICO are set to be established, providing €6 billion to help meet operational costs.
Furthermore, the newly announced Industrial Productive Investment Support Fund will bring in €200 million for loans and equity participation aimed at modernizing or setting up new production plants.
Sánchez's announcement also included the execution of the new Moves Plan, equipped with €400 million to encourage the implementation of electric vehicles.
Additionally, the mechanism RED will be activated, designed to maintain employment levels and assist workers in companies significantly impacted by the commercial conflict until business activities stabilize.
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