The Government will enter into strategic projects that attract foreign investment

The Government approves the regulation of the Co-investment Fund (Foco) in an attempt to increase foreign investment in those industries considered strategic for Spain through the participation of the State. The mechanism will be endowed with 2,000 million euros from European financing provided by the Addendum to the Recovery Plan approved by Brussels last year. The instrument will finance – together with international sovereign funds – part of the projects that companies want to implement in national territory, and will serve as a guarantee to attract investment from third parties, which may be both public financial institutions and foreign private institutional investors.

However, the fund places several conditions. The projects must be aimed at key sectors for the transformation of the economy, such as digital development or the energy transition, both considered decisive in guaranteeing the autonomy of the Spanish industry. Additionally, companies must meet several requirements. They must have their headquarters in the European Union, a delegation in Spain, be up to date with their obligations with Social Security and the Treasury, not be polluting and have a financial viability report. The Government will entrust the selection of the projects to a panel of independent experts. They will do a first screening, but The last word will be a committee in which several ministries will be represented.. It will be chaired by the Secretary of State for Commerce, Xiana Méndez. This commission may veto the investments preselected by the team of experts, or give its approval for the Spanish Development Financing Company (Cofides) manage public participation, which will be temporary and will accept operations until 2026.

The Minister of Economy, Carlos Body, thus launches a new path to support economic growth, in a key year in which the GDP must be supported by investment, and in an uncertain context in which the drift of the war in Ukraine and Gaza, and the possible return of the trade conflict between the US and China – due to the possible return of Donald Trump to the White House – threaten to cause another tsunami in the rules of international trade.

According to the document approved today in the Council of Ministers, The State will have a passive role in the management of the investee companies, although it reserves the exceptional possibility of intervening in the management. The public investment will be counted as debt, and – although it is not intended to decide the course of management – whether it will share profits or losses with the rest of the participants.

The capital injection will be carried out through capital instruments or through contributions to investment funds, acting as a fund of funds. The document makes it clear that The State’s participation may not exceed 49% of the total. That is, “the contribution of the foreign investor must always be equal to or greater than that of Foco,” describes the text approved by the Council of Ministers.

The plan adds to the Corps’ strategy of protecting strategic sectors for Spain. Since his arrival at the Ministry of Economy, The State has entered into the shareholding of Telefónica in a maneuver to deactivate 10% of the company from ending up in Qatari hands. “The decision was made to enter as a long-term strategic partner that ensures the commitment to the investments that will be necessary in this area, which is fundamental,” he said. Body in an interview given to elEconomista.es. In addition, Moncloa vetoed the takeover bid launched by the Hungarian consortium Ganz-Mavag for Talgo, with the intention of “protecting a strategic sector.”

Economy continues to press for Brussels to once and for all authorize the purchase of Air Europa by IAG. The operation would consolidate the Adolfo Suárez Madrid-Barajas airport as one of the main hubs worldwide.