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Brussels gives the green light to the PERTE for Electric and Connected Vehicles

12/10/2021 | 04:52am EDT

Presented through the Ministry of Industry, Trade and Tourism, its head, Minister Reyes Maroto, said that "this is magnificent news after months of negotiation with Brussels. The European Commission's authorisation will serve for the digital and sustainable recovery of a sector such as the automotive sector, where Spain is one of the main European manufacturers."

With regards to PERTE, Maroto pointed out that "it is a historic opportunity to turn the manufacture of electric and connected vehicles into a driving project that strengthens the automotive industry throughout the country. For the Government of Spain, the automotive sector is a priority and will be a key player in the Recovery Plan, as we have the industrial capacities and the leadership of companies to invest in the mobility of the future, a mobility that will be more sustainable, digital, connected and safe."

After examining the PERTE in detail, the Commission has concluded that the initiative is necessary to facilitate investments in R&D and environmental protection measures in the supply chain for electric and connected vehicles. The 3 billion will also have an incentive effect, as the projects would not be carried out in the absence of public support.

The EUR 3 billion corresponds to the industrial part of the PERTE. This is then complemented with aid from the Moves Plan, the Moves Programme for Unique Projects, the CDTI's sustainable mobility technology programme, artificial intelligence and connected vehicles, to reach a total of 4.3 billion euros. In this way, the development of the project foresees a total investment of more than 24 billion euros in the period 2021-2023 between public and private investments.

"The project will help develop the electric vehicle chain and play an important role in the green and digital recovery of the Spanish economy," stresses Commission Vice-President Margrethe Vestager. Brussels affirms that the aid is proportionate and limited to the minimum necessary. In particular, the eligible projects, the eligible costs and the maximum public aid intensity are in conformity with EU guidelines.

The PERTE is aimed at one of the strategic sectors of the Spanish economy, with a knock-on effect due to its weight in the national GDP and direct and indirect employment and its contribution to the trade balance. Spain is the second largest vehicle manufacturer in Europe and the ninth largest in the world. It represents 11% of total industrial turnover. The automotive sector is the fourth largest export sector and represents 15% of total Spanish exports.

The job creation generated by the PERTE could reach 140,000 jobs and the contribution to GDP would be between 1% and 1.7%. Other expected impacts would be to reach 250,000 registered EVs and between 80,000 and 110,000 charging points deployed by 2023.

Non official translation

Disclaimer

Prime Minister's Office of Spain published this content on 09 December 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 10 December 2021 09:51:02 UTC.


© Publicnow 2021
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