Public financing in the logistics sector
Public funding, both nationally and internationally, is an important way for organisations to have the opportunity to finance their ideas and projects.
This type of funding is essential for the creation and development of R&D&I projects that will increase our country’s competitiveness in this field. When applying for these funding opportunities, it is important to highlight the importance of creating consortia as a strategic facilitating tool, becoming one of the most efficient ways to strengthen the individual capacities of each company, as well as to be able to cover all the established terms of reference or requirements. Therefore, our Public Funding Working Group will provide services to Logistop partners in the global management of public incentives related to R&D&I activities.
State of public funding in Spain and Europe
To mitigate the economic effects of the COVID-19 pandemic, on 21 July 2021, a historic agreement was reached at the European Council to mobilise EUR 750 billion in response to this exceptional situation, financed through the issuance of EU debt, which together with the EUR 1.074 trillion of the Multiannual Financial Framework 2021-2027, will allow an unprecedented volume of investments to be made in the coming years.
In addition, the new Next Generation EU Recovery Fund
will allow Spain to mobilise extraordinary investment to mitigate the economic and social effects of the pandemic and ccelerate economic recovery.
Within the framework of the Next Generation EU and the Spanish Government's Recovery, Transformation and Resilience Plan
a mechanism has been activated so that different companies can present their business projects with the aim of learning first-hand about the country’s needs and projects with a high transformational potential, which entail structural change and have a lasting impact on economic and social resilience, sustainability, long-term competitiveness and employment. This mechanism is called Expressions of Interest.
With regard to the General State Budget for 2021
the Spanish government has already incorporated a first tranche of these funds, amounting to 26,634 million euros. The total consolidated expenditure for the 2021 State Budget would reach 550,484 million euros, an amount which, excluding the first tranche of European funds, would imply a growth of 13.6% with respect to the amount allocated to the previous year’s budget. However, if the liquidity generated by the Next Generation EU recovery mechanism is included, the increase would be 19.4% compared to the 2020 accounts. Based on these figures, it is expected that 37.1% of the total Next Generation EU funds earmarked for Spain will be invested by 2022.
Impact of public funding
Public funding should have an incentive effect, leading to an increase in the level of R&D&I activity by the beneficiary(ies). This may be reflected in the following parameters:
- Increase in the volume of the project, both in total cost and in the number of human resources employed.
- Increase in the scope of action.
- Increase in the speed of execution, reducing completion time.
- Increased investment in R&D&I.