Sánchez proposes extending European funds to electrify the economy

MadridThe Spanish President, Pedro Sánchez, is participating in the informal summit of European Union leaders in Cyprus to address the war in Ukraine and the Middle East. At this point, in statements at the entrance to the meeting, he explained his proposals: on the one hand, to extend European funds for electrifying the economy for another six or twelve months, and, on the other, to suspend fiscal rules when it comes to investment also in this area. According to Sánchez, it is necessary for the European Union to have "more ambition" and he also called for a tax on large energy companies, as was done at the beginning of Russia's invasion of Ukraine, as he stressed that these companies are benefiting from the increase in supply prices.

"We need more resources for the green transition," he proclaimed, in view of the effects that the increase in oil prices due to the conflict in the Strait of Hormuz is having on all European Union countries. "Since the war began, imports of fossil fuels have increased by 24 billion euros; 500 million a day," Sánchez said. In short, he called for more decisive action from the entire European Union to alleviate the energy crisis, a pressure that yesterday afternoon, when the dinner was held also within the framework of the same summit, the Italian Prime Minister, Giorgia Meloni, also called for —reports Gerard Fageda.

In this way, the Spanish president reaffirmed his no to the war in Iran and his support for Ukraine, as well as for international law and the multilateral order. In this regard, he insisted, as the Minister of Foreign Affairs, José Manuel Albares, already did on Tuesday, that the EU must suspend the association agreement with Israel. "Different standards are used with Ukraine," denounced the Spanish president, who advocates for defending the territorial integrity of Ukraine in the same way as that of Lebanon, the West Bank, and Gaza. "This costs us legitimacy. The law of the strongest leads us to a weaker world, to more deaths, and to more suffering," he stated.

Key to the Spanish economy

In principle, the European Next Generation EU funds, linked to recovery plans -born with the covid-19 pandemic-, end on August 31, 2026. Despite finding loopholes for projects receiving this money to be executed beyond this date, European manna will stop flowing from that day on. Countries, however, have had to bite the bullet to try to meet the milestones and commitments to receive the funds -Spain has already received 71.4 billion euros from the European Commission.

For Pedro Sánchez's government, the electrification of the economy is key, considering that the aim is for 80% of the energy consumed in 2030 to be renewable. Beyond deploying green technologies (photovoltaics, wind power, etc.), this requires investment to strengthen the electrical system and its infrastructures (transport and distribution networks), but also key technologies such as storage. Nevertheless, last summer the European Parliament already proposed extending these funds by 18 more months to ensure, precisely, the correct execution of projects. The European Commission would have the final say, and it has so far shown reluctance.