The bulk of European "next generation resilience and recovery" funds will take some years to deliver. The package for all EU countries will be distributed from now until 2026.
The first batch of funding was allocated according to regional criteria, such as population size. Under this, the Balearic Islands are to receive 300 million euros. The remaining funds will be managed by the national government, and their distribution will be determined by proposals made by regional authorities.
In June last year, the Balearic government started to define its strategy for this European funding mechanism. A specific group comprising representatives from political parties, island councils, town halls and business was established. The Spanish government was requested to take the Balearics into account when setting the 2021 budget by factoring in some of this European funding.
As a result, there are to be one hundred million euros for tourism in the Balearics, and the group has been meeting to refine strategic projects. While these have mostly been defined by the regional government, the private sector has been heavily involved, as it will be active in implementing them.
While the initial emergency funding was focused on education, health and social services, the second round is for technological innovation, clean energy, tourism and transport. An example of the strategic projects is the government's tram project to connect central Palma with Son Espases Hospital, the airport and Arenal.
In total, the Balearic government estimates there will eventually be some 250 projects with investment totalling 5,000 million euros.