Spain Launches 'Fondo España Crece' Sovereign Fund to Sustain Economic Reforms Beyond 2026
Spain announces the sovereign fund Fondo España Crece with initial €10.5 billion to sustain economic reforms and mobilize €120 billion in investments beyond 2026.
- • Pedro Sánchez announces creation of Fondo España Crece sovereign fund with €10.5 billion base capital.
- • The fund aims to mobilize €120 billion through public and private investment.
- • Managed by ICO, it will focus on sectors like housing, energy, AI, and infrastructure.
- • The fund will extend Spain's reform momentum beyond the Next Generation recovery plan ending in 2026.
Key details
Spanish Prime Minister Pedro Sánchez has officially announced the creation of the sovereign fund "Fondo España Crece" aimed at maintaining and extending the country's economic reform momentum beyond the expiration of the EU Next Generation recovery funds in 2026. The fund will begin with an infusion of €10.5 billion from the existing Next Generation resources and aims to mobilize approximately €120 billion through additional private debt and investments from domestic and international investors.
Managed by the Instituto de Crédito Oficial (ICO), the fund will prioritize critical sectors including housing, energy, digitalization, artificial intelligence, reindustrialization, circular economy, infrastructure, water management, sanitation, and security. Sánchez underscored the fund’s purpose to ensure the continuity of transformative initiatives launched under the Next Generation program focusing on energy transition, digital transformation, and industrial rejuvenation.
Speaking at the closing of the XI International Spain Investors Day in Madrid, Sánchez emphasized Spain’s strong economic performance despite international uncertainties, projecting a growth rate of at least 2.2% in 2026. He highlighted the importance of tackling pressing challenges such as poverty, inequality, and housing availability, while stressing Spain’s status as a safe and attractive destination for investment due to its stable economic and social environment.
The fund will also involve strategic co-investment with the private sector via loans and guarantees. Recently, the first meeting of the Strategic Investment Committee was held to align productive investments with national and European interests, further reinforcing the country’s commitment to economic sovereignty after the Next Generation era. Sánchez described the new fund as a continuation of national sovereignty efforts, reflecting Spain’s ambition to remain competitive globally while advancing democratic and sustainable growth.
Further details regarding the operational framework and specific investment plans for Fondo España Crece are set to be unveiled by Sánchez and Economy Minister early next week.
This article was synthesized and translated from native language sources to provide English-speaking readers with local perspectives.
