A Lost Opportunity?
The management of Next Generation EU funds in Spain has been the subject of growing criticism, as the expected results in economic transformation seem far from expectations. The effects on per capita income and structural problems such as productivity, housing and education have not been resolved as intended.
The Legacy of the Stabilization Plan
In contrast to the current situation, the Stabilization Plan of the 1950s was a catalyst for economic growth and social transformation. Although less ambitious, it led to a radical change in Spanish society, which experienced a significant boost with its incorporation into the European Economic Community.
The Circumstances of a Necessary Change
The Stabilization Plan was born in a context of extreme crisis, with meager bank reserves that endangered the country’s economic stability. The pressure on Franco by his ministers was decisive for the implementation of a plan that, with the support of the International Monetary Fund, provided a critical injection of capital.
A Remarkable Economic Impact
With economic support that would currently be equivalent to around 80 billion euros, Spain experienced annual GDP growth of 7% between 1960 and 1975. This growth transformed the daily lives of citizens, allowing access to basic goods and the rise of the middle class.
Next Generation Funds: Expectations and Realities
The Next Generation funds, totaling €163 billion, look promising, but their implementation has been problematic. In contrast to the immediate impact of the Stabilization Plan, the current results are more diffuse, with GDP growth not translating into a proportional increase in per capita income.
Uneven Growth
20% of GDP growth can be attributed to immigration, which while generating employment, does so in low-productivity sectors. This has created a paradox where, despite an increase in GDP, the middle class is impoverished and inequality becomes more evident.
Reflections on the Future
The comparison between the Stabilization Plan and the Next Generation funds reveals not only a difference in scale, but also in the effectiveness of the policies applied. While the past opened the door to social advancement, the present leaves us wondering about the real solutions to Spain’s structural problems. The current challenge is to redirect this injection of funds towards a real transformation that benefits society as a whole.
