Are companies familiar with European recovery funds?

Destinations

The European Council approved on June 21, 2020 the creation of the Next Generation EU program, the largest instrument of economic stimulus ever financed by the European Union in response to the unprecedented crisis caused by the coronavirus.

A little over a year ago, the President of the Government, Pedro Sánchez, presented the three-year investment plan associated with the first 72,000 million from the EU -of the 140,000 that have to arrive-, focused on ecological and digital transformations with the goal of adding 2.5 points of GDP and 800,000 jobs in 2023.

Thus, something has not been done well when it comes to disseminating these new resources, since only 40.6% know about them, so many companies are going to be left behind from this investment plan that is a lever for economic recovery

“Right now, SMEs do not have the capacity to develop their projects. You have to help them to do them and here collaboration with the public administration is essential. because there are many companies that neither have equipment nor can dedicate time or investment to them “, warned the partner of the Monlex cabinet, José Antonio Fernández Alarcón, who put the focus on which medium and small companies ran the risk of being left out of these investments.

The alarming ignorance of the funds is also accompanied by the distrust of medium and small companies about them: 62% consider that Next Generation will only benefit large companies and they will barely reach SMEs.

This skepticism about the benefits that NGEUs will generate is greater among smaller companies: almost two-thirds of companies with fewer than eleven employees think that the funds will end up favoring large companies more

This percentage is gradually decreasing to 49.0% among companies with more than 250 employees.

Uncertainty about energy costs

At the same time, the study also highlights that after a long period of uncertainty and a decline in activity as a result of the COVID-19 crisis, Spanish companies again optimistic about the outlook for the economy and the evolution of their own businesses.

Thus, 72.7% believe that economic activity will improve a lot or slightly in 2022, compared to 22.3% who consider that there will be a worsening next year.

However, the employers consulted agree that they are concerned about the effects that the increase in labor costs, consumer prices and energy and raw material costs may have both on the general economic evolution and on their own activity

A) Yes, 86.3% indicate that the costs of energy and raw materials are going to become more expensive to some extent, 78.2% that there will be more inflation and 63.2% that labor costs will increase. On the contrary, 65.9% believe that there will be an improvement in employment, half that of consumption and 47% of business investment.

Precisely, the high prices of energy and raw materials are the main identified difficulty faced by most companies (47.5%).

  • Indignation among hoteliers at the “brutal” rise in light
  • Electricity raises inflation to 4%, the highest since 2008