AIReF Unveils Tool to Analyze European Funds’ Impact on Recovery Plan, Finds GDP Contribution at 24%

The Independent Fiscal Responsibility Authority (AIReF) unveiled a new tool on Wednesday to analyze the impact of European funds associated with the Recovery Plan on the economy. According to the data, only 18.9 billion euros of these funds have contributed to the growth of Gross Domestic Product (GDP), representing 24% of the total subsidies allocated. This amount has been executed in terms of National Accounting, which AIReF believes is the most accurate reflection of the funds that have reached the real economy.

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The impact on GDP from these funds has been primarily through investment, although it is still below pre-pandemic levels. The Government’s updated execution figure is 35,190 million euros, with AIReF assuming that the remaining funds will be executed by 2026. While AIReF acknowledges challenges as the deadline approaches, they emphasize the importance of timely execution to ensure optimal economic impact.