Spain could be assigned €77 billion in grants and €63 billion in loans from a €750 billion Covid 19 recovery program

Spain could be assigned €77 billion in grants and €63 billion in loans from a €750 billion Covid 19 recovery program that was announced by the European Commission yesterday.

EU sources said that Spain may be getting a total of €140 billion to help shore up its economy, which is expected to contract by anywhere between 9% and 13% as a result of the coronavirus lockdown, according to the latest estimates by the Bank of Spain.

The central bank also issued a report noting that the impact of confinement measures is not the same across different economies. 

Instead, it depends on a country’s productive structure and supply chains.

Given the same lockdown measures, the impact is up to 20% greater on the Spanish economy than on the German or French ones, according to the analysis.

In some regions, this is due to a heavy reliance on tourism; in others, because of the closure of car production or distribution plants.