Pedro Sánchez, the Prime Minister of Spain, has announced a new government investment fund called 'España Crece' (Spain Grows), which aims to mobilize a total of 120 billion euros. About one-fifth of this amount is earmarked for the construction of 15,000 housing units annually to combat the growing housing crisis in the country. This effort highlights the increasing concern among Spaniards over affordable housing, as the average price per square meter has doubled in the past decade, making home ownership increasingly unattainable for many.

The fund 'España Crece' was introduced as a replacement for the EU's NextGenerationEU funds, which are set to expire at the end of the year after playing a pivotal role in Spain's robust economic recovery post-COVID-19. To kickstart this initiative, the fund will initially draw 10.5 billion euros from EU resources, which underlines the government's strategy to continue funding development and recovery efforts in the wake of the pandemic.

This investment plan is considered vital, as increased housing costs have become one of the primary concerns for the Spanish population. By prioritizing the construction of new homes, the Sánchez administration seeks to not only alleviate the immediate housing crisis but also stimulate broader economic activity, ensuring that the recovery is inclusive and sustainable for future generations.