Spanish Prime Minister Pedro Sánchez revealed a new sovereign fund aimed at financing the construction of 15,000 affordable homes annually, as part of the government's housing strategy. This fund, named 'España crece', is expected to mobilize a total of €23 billion through the Official Credit Institute (ICO), including €10.5 billion from unused loans from the European Recovery Plan, and an additional €2.8 billion in non-repayable grants. Sánchez stated that the fund's economic impact could be significantly higher than initially projected.

The government anticipates that this capital could be leveraged through debt instruments, potentially increasing the total amount mobilized to as much as €60 billion. This ambitious plan reflects the Spanish government's commitment to addressing the ongoing housing crisis and making affordable housing more accessible to citizens. The initiative is part of broader efforts to stimulate economic recovery and improve living conditions for many Spaniards.

By investing in affordable housing, the government aims to alleviate some of the financial burdens faced by households, particularly in urban areas where housing costs have risen dramatically. This announcement comes at a critical time, as Spain, like many countries, grapples with housing shortages and rising prices. The success of the 'España crece' fund could serve as a model for similar initiatives in other regions, potentially influencing policy decisions around housing and infrastructure investment across Europe.