Spain plans to mobilize 23,000 million public and private euros for the construction of 15,000 homes per year, through a national investment program that will succeed the European Next Generation funds, the Government announced this Tuesday, February 17th.
According to Spanish Prime Minister Pedro Sánchez, the objective is to “close the housing deficit” and respond to the difficulty in accessing housing by building public housing.
“This is our commitment, the largest volume of public and private financing under advantageous conditions in our history to combat what is now a housing crisis”he stated, at an event in Madrid to present the sovereign wealth fund “Spain Cresce”, a new national investment program.
“Espanha Cresce” intends to continue, at a national level, the Spanish Recovery and Resilience Program (PRR), financed by European Next Generation funds, unlocked in the wake of Covid-19, to respond to the impacts of the pandemic on the economy and relaunch Europe’s competitiveness.
The “Spain Cresce” fund will include 10,500 million euros of European Next Generation funds (whose transfers to member states end in August this year), but the Spanish Government intends to mobilize a total of 120,000 million euros for the new investment program, said Sánchez.
Of these 10,500 million euros from European funds, around 2,000 million will be allocated to housing, according to the government, which intends to add another 12,000 million to this value through various financing and funding mechanisms.
“The fund will extend a red carpet to private investors, but not to speculate with a constitutional right [à habitação]but to build a home for the majority of those citizens who today have difficulty, if not impossibility, in accessing a home”said the Prime Minister.
For Sánchez, the lack of financing cannot be an obstacle “to housing policy” and the possibility of young Spaniards having “horizon and hope” in a life project.
The leader of the Spanish government defended the success of the Next Generation funds, which made it possible to launch a transformation and modernization of the European and Spanish economy, with a view to greater productivity and “green and technological” transition, without forgetting “the social pillar”, and argued that the process must continue, to justify the launch of the “Spain Grows” program.
Alongside investment in housing, “Espanha Cresce” aims to mobilize funds for sectors and areas such as energy, digitalization, artificial intelligence, reindustrialization, water and sanitation or the circular economy.
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