The activation of the European Recovery and Resilience Funds, one of the two levers that, together with mass vaccinations, Europe is considering to get out of the crisis, needs the support of the legal sector. On the table is the distribution for Spain of more than 140,000 million euros of Next Generation funds, half through grants and the other half through loans, approved in July 2020 by the Heads of State or Government of the Union Meeting in the European Council.
To access these grants and loans, States must present their spending and investment plans and these must be approved by the European Commission. Different ministries are launching – with the participation of law firms through public tenders – calls to nourish themselves with ideas when presenting these plans.
Experts and lawyers acknowledge that, with the exception of the large firms of the Ibex 35, there is great ignorance among SMEs about the implementation of these plans, their regulations and the major transformations that are coming. For this reason, law firms and consultancies are strengthening their public law departments.
Business areas
Law firms are already playing an active role in providing legal advice to companies and the public sector through Next Generation funds, a business that will increase as they arrive and are distributed. For José Amérigo, regulatory partner of PwC Tax and Legal, this advice can be translated, first and foremost, into the “explanation of the legal architecture” that articulates the aid system at the European level, internally through the Royal Decree Law 36/2020 and regional regulations –as in Catalonia and Andalusia– approved following state regulations.
Another avenue of advice is the evaluation of the impact of the regulatory reforms that include the imminent Spanish Recovery, Transformation and Resilience Plan, that you will need evaluation by the European institutions as a prerequisite to access these funds.
After the recent entry into force of Regulation (EU) 2021/241, which establishes the Recovery and Resilience Mechanism, the different European governments can now send their plans to Brussels. Miguel Gil-Tertre, head of unit in the Recovery and Resilience Task Force of the European Commission, assures that “the disbursements will be made according to the fulfillment of the milestones or reforms programmed” by the governments.
Amérigo also highlights as another business axis the support of the legal sector in future administrative procedures (public procurement and grants) to distribute funds and reach the real economy. According to this lawyer, the doubts generated among the companies by the expressions of interest promoted by various ministries are also frequent, in addition to the “consultations on the tools of public-private collaboration and the state aid regime”.
Multidisciplinary teams
All the experts agree that the teams of the consulting firms and law firms that advise on these funds must necessarily be multidisciplinary. Although there is a very relevant legal-administrative component and the public law teams will play an outstanding role, Alberto Dorrego, public law partner at Eversheds Sutherland, assures that “all departments will have to be involved” in this advice.
In a very special way, the departments of competence (in everything related to State aid), corporate (for the structuring of contractual relationships, joint ventures, joint ventures and integration formulas of collaborating companies) will play a fundamental role) and, very especially, the areas of technology, media and telecommunications.
It will also be absolutely essential that law firms open up to other professional areas that are not strictly legal. In this sense, Dorrego highlights as “fundamental the areas of business consulting and project management, which can offer comprehensive support to companies to prepare and access European funds.”
Los Perte, an opportunity for firms
Growth. The strategic projects for economic recovery and transformation (known as Perte) that are presented must have a great drag capacity for economic growth, employment and the competitiveness of the economy. They will receive preferential treatment not only with state subsidies, but also in making processes more flexible or eliminating bureaucratic barriers.
Advice. Companies are already requesting information from law firms on the eligibility criteria for projects, how to structure them and insert them in the Perte, the inclusion of companies in administrative records, incorporation into integrated legal structures and subsequent access mechanisms. to funds. For Alberto Dorrego, a partner at Eversheds Sutherland, it is “SMEs and even large companies with little experience in public procurement that present the greatest need for legal advice.”
Registry. To monitor this new figure, the creation of a state registry of entities interested in the Perte, dependent on the Ministry of Finance, is expected.
Sectors. Large energy, technology, telecommunications, transport, health and concessionaire companies have an advantage when designing and structuring the projects carried through the Perte.
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