- European funds could make the Spanish economy grow by more than 3% in 2021 according to the study carried out by MWCC (Madrid Capital World Association of Construction, Engineering and Architecture).
The Madrid World Capital Association of Construction, Engineering and Architecture (MWCC) has prepared the first study on the impact of Next Generation funds for the Spanish economy in 2021. After the approval of the General State Budgets, we have been aware that the endowment of the European NEXT GENERATION Funds, which, foreseeably, will reach our country will amount to almost 27,000 million euros. These assumptions are based on the four principles that underpin the Recovery, Transformation and Resilience Plan and backbone all projects such as the ecological transition, digitization, gender equality and social and territorial cohesion.
The structuring is carried out around ten policies such as the Urban Agenda; Resilient infrastructures and ecosystems; energy transition; digitization of the Administration and industrial and business fabric; recovery of tourism; promotion of science and innovation; strengthening the health system; education and formation; care and employment; promotion of culture and sports and modernization of the tax system.
The biggest challenge we are going to find is to specify the projects and get all those recovery funds executed. To achieve this, the Government plans two types of measures, some aimed at institutional coordination and collaboration and others aimed at speeding up access to funds.
Among the former, it is worth highlighting the creation of an Interministerial Commission headed by the President of the Government, the timely monitoring of funds and a greater tightening of public-private collaboration, essential if we want all funds to be transferred to the economy. Among the latter, greater transparency and administrative agility for which the procedures that may slow down the contracting and execution of projects will be reduced, as much as possible. These collaboration and streamlining measures are essential, as anything that is not invested will have a negative impact on economic growth and job creation.
If we manage to invest those 27,000 million euros – more than 15,700 million in terms of Gross Value Added (GVA) – we will generate more than 300,000 full-time jobs in 2021. But, in addition, the indirect impact originated would amount to 15,000 million euros additional production and 147,000 jobs; the induced impact, produced by the increase in spending derived from the salaries received for the jobs created, would mean 30,000 million more production for which 730,000 jobs would be necessary
Together, the impacts will mean an increase in production of 73,000 million – 38,000 million in terms of GVA-, while the necessary employment would amount to 1.15 million jobs in 2021. These figures would make the Spanish economy grow this year up to 3.25%.
The challenge is enormous; At MWCC we insist on the importance of working together to maximize the use of these funds.
We are going to be under European supervision and we must show the capacity we have as a country to manage and materialize those 27,000 million effectively. The president of MWCC, David Garcia Nuñez, indicates “now is the time not to fail citizens and companies that, thanks to these funds, will have the possibility to develop their activities and innovate in their production processes, making them more efficient and effective ”.
For every million euros that we stop investing in 2021, there will be 11 people who will not have the opportunity to join the job market in 2021; 44 if we add the indirect and induced impacts.
The president of MWCC, David Garcia Núñez., Indicates “we are in an unprecedented moment, in which collaboration between the public and private sectors is more necessary than ever. At MWCC we offer all the knowledge and experience of our partners, as well as the dedication necessary for these funds to reach all of Spanish society ”.
About MWCC
The Madrid World Capital Association of Construction, Engineering and Architecture (MWCC) brings together more than 80 relevant public and private entities. The Association was born on March 4, as a project promoted by the Madrid City Council, whose origin took place in 2016. It is a relevant entity in the engineering, construction and architecture sector with an integral and transversal image of the sector.
The project arose with the aim of improving the quality of life of citizens, promoting the sectors in which Madrid and Spain had a competitive advantage and, at the same time, met two requirements: high qualification of human resources and intensive use of technology. Thanks to more than 100 interviews with experts and different round tables, a Strategic Plan for the Sector for Madrid was drawn up, the first milestone of which was the constitution of MWCC on March 4, with three main objectives: to promote these activities in the City and in Spain, consolidate the international leadership of our companies and make Madrid visible as the world reference center in our sector.
This transversal and comprehensive vision has been transferred to all public and private companies that have joined the project. Academic and research entities – UPM, UAX, UFV, UNAV, SAN PABLO CEU, NEXT Education, University of Navarra, CEDEX and CSIC – form part as partners or collaborators – professional associations – AICCP, CICCP, Círculo de Empresarios, Demarcation Madrid, DIRCOM, COAM, CSCAE and CITOP -, business associations – ASPRIMA, ASECI, AVINCO, OFICEMEN, AEV, AEMME, ASICA and TECNIBERIA -, associations of municipalities – GALSINMA, Sierra Oeste de Madrid -, public entities – CESCE, ESPAÑA GLOBAL , ICEX, ICO, IFEMA and MADRID CALLE 30, EMT, METRO DE MADRID, MIA -, large companies and SMEs – such as ACCIONA, AZIERTA, AZVI, CABIFY, CEMEX COMSA, DCN, EIFFAGE, EPTISA, FCC, Grupo SANJOSE, Grupo GMP , IECA, INCA PATRIMONIALES, JOCA, METROVACESA, MOVO, NATURGY, RETINEO, SACYR, SODA Arquitectos, THINK PROJECT TORRE RIOJA – law firms – Cremades and Calvo Sotelo-, financial entities and consultants – AVELLANAR, BANCO CAMINOS, ICO EY, PWC-, other national and international entities them – AEV, CONAMA, COTEC, FORÉTICA, FUNDACIÓN METRÓPOLI, FUNDACIÓN TRANSFORMA ESPAÑA, GLOBAL SHAPERS, GREENWARD PARTNERS, IE PUBLIC TECH LAB, IABS, MADBIT, MADRID OPENCITY, MADRID FUTURO, MADRID SUBTERIR, PARQUE MADRIDÍFICO or Administraciones MADRIDÍFICO the Madrid City Council, the Community of Madrid, SPAIN GLOBAL and MITERD, thus being an example of Public Private Collaboration with the shared objective of improving our quality of life. They have reached agreements with more than 60 Town Halls and 5 Mancomunidades of the Community of Madrid for the implementation of projects in their municipalities.
