Next Generation EU for digitalisation projects: a guide for public authorities

The Next Generation EU funds have put more than €69 billion on the table for Spain up to 2026, with the aim of transforming the Spanish economy and public administration. A good part of that money is earmarked specifically for digitalisation. Yet many public bodies that could benefit from it fail to do so because they are unfamiliar with the technical and procedural requirements. This guide summarises the essentials.

What is Next Generation EU and why does it matter for public sector digitalisation?

Next Generation EU (NGEU) is the largest economic stimulus package in the history of the European Union, created to respond to the economic consequences of the pandemic and to speed up the green and digital transition. In Spain it is channelled mainly through the Recovery, Transformation and Resilience Plan (Plan de Recuperación, Transformación y Resiliencia, PRTR), which organises the investments into ten components.

For public sector digitalisation, the most relevant components are:

• Component 11 – Modernisation of public administrations: this covers projects to digitalise procedures, introduce digital identity, make systems interoperable and improve cybersecurity in line with the National Security Framework (Esquema Nacional de Seguridad, ENS).
• Component 12 – Industrial Policy Spain 2030: this includes the PERTEs (Proyectos Estratégicos para la Recuperación y Transformación Económica, strategic projects for economic recovery and transformation), among them the PERTE for the digitalisation of the agri-food sector and PERTE Agua, the one for water.
• Component 15 – Digital connectivity, boosting cybersecurity and 5G roll-out: particularly relevant for rural municipalities and for digitalising services in areas affected by the digital divide.

Funding lines available in 2025–2026

Kit Digital for local councils (extension)

The Kit Digital programme, originally aimed at SMEs, has been extended to include small municipalities and sub-municipal entities (entidades locales menores). It can be used to finance:

• An advanced web presence and content management
• E-commerce for municipal services
• Social media management and communication with citizens
• Solutions for digitalising basic administrative processes

The amounts range from €2,000 to €12,000 depending on the size of the municipality, and the application process is handled directly by the public body.

Sector-specific PERTE funding calls

The PERTEs finance larger projects (usually from €500,000 upwards) in strategic sectors. The most active ones for public sector technology are:

• PERTE Agua (water): projects for smart water management, sensors, predictive consumption models and leak detection.
• PERTE Agroalimentario (agri-food): digitalisation of the value chain, traceability, and artificial intelligence applied to production and distribution.
• PERTE Chip: microelectronics and semiconductors, with an industrial digitalisation component.

ERDF funds for regional digitalisation

The autonomous communities (regions) manage funds from the European Regional Development Fund (ERDF) with specific lines for digitalising local government. The conditions vary from one region to another, but in general they finance between 50% and 80% of the cost of the project. Processing times are shorter than for national funding calls.

Essential technical requirements for delivering these projects

This is where many public authorities get stuck. Next Gen EU funds come with technical eligibility conditions that go beyond “the project must be digital”.

The DNSH (Do No Significant Harm) principle

Every project financed by NGEU must comply with the principle of doing “no significant harm” to the EU’s environmental objectives. For IT projects, this means declaring and justifying the energy consumption of the infrastructure, using cloud providers with energy efficiency certifications and documenting the measures taken to reduce the carbon footprint.

ENS compliance (mandatory for public data)

Any system that processes citizens’ data or is connected to the public sector’s network must comply with the ENS. This is neither optional nor open to interpretation: the CCN (Spain’s National Cryptologic Centre) audits NGEU projects and can require the funds to be repaid if a failure to comply with the ENS comes to light when the funds are justified.

The software supplier must provide evidence of ENS certification before the contract is signed. Asking for ENS certification after the contract has been awarded causes delays that can mean missing the window for justifying the funds.

Interoperability with central government (AGE) standards

Systems implemented with NGEU funds within central government (Administración General del Estado, AGE) must be interoperable with the interoperability reference framework (the NTI, Spain’s technical interoperability standards) and, where applicable, with the Registry Interconnection System (Sistema de Interconexión de Registros, SIR) and with Cl@ve, the shared identification system, for authentication.

For local government, interoperability with central government is not always mandatory, but it does earn credit under the evaluation criteria of many funding calls.

Technical documentation required for reporting and justification

Reporting on and justifying the funds to the European bodies calls for precise technical documentation:

• A technical report on the project with verifiable impact indicators
• A contract with the supplier that includes the auditable technical requirements
• The supplier’s accreditations (ENS, ISO 27001, etc.)
• Evidence that milestones and results have been achieved

A project that is well delivered but badly documented may not be eligible at the justification stage.

Common mistakes that cost you the funding

Not linking the project to the PRTR indicators

Every NGEU funding call has specific impact indicators (number of public employees trained, number of procedures digitalised, percentage reduction in energy consumption). The project must be designed to achieve those indicators, not the other way round. Many public bodies draw up the technical project and then try to make it fit the indicators, which produces inconsistencies at the justification stage.

Underestimating public procurement timeframes

A Next Gen EU project has start and end dates that cannot be extended. If the tender for the software contract drags on longer than planned – which is common when the tender specifications are flawed or appeals are lodged – the delivery window shrinks drastically. Planning should include a buffer of 30–40% on top of the estimated tender period.

Not requiring ENS certification of the supplier from the start

Engaging a supplier that is not ENS-certified, in the expectation that it will obtain certification during the project, is a high risk. ENS certification processes are audited by third parties and have timeframes of their own. If the supplier does not hold ENS certification when the system goes into production, it may not be possible to justify the project.

If you are preparing an application, our funding page sets out CEDESA’s projects co-financed with EU funds (ERDF and Next Generation EU) and how they were justified, and our innovation page sets out the PERTE and artificial intelligence projects we have already delivered, which can serve as a technical benchmark for sizing your own.

Frequently asked questions about Next Generation EU for digitalisation

Can a small local council (fewer than 5,000 inhabitants) access Next Gen funds?

Yes. In fact, many funding calls give priority to small and rural municipalities. The extended Kit Digital is the most accessible route. For larger projects, the funds usually arrive through regional funding calls (ERDF) or through provincial councils (Diputaciones) acting as intermediate bodies.

How long does it take for an application for Next Gen digitalisation funding to be decided?

It depends on the type of funding call. Kit Digital calls are decided in 2–4 months. PERTE calls can take from 6 to 12 months from application to approval. In every case, the period for delivery and justification runs from the favourable decision, not from the application.

Do NGEU funds cover the cost of maintaining the system afterwards?

Generally not. NGEU funds finance development and implementation, not recurring maintenance. The public body must budget for the cost of maintenance (SLA, updates, support) from its own funds or through other financing instruments.

What happens if the project does not achieve the indicators it committed to?

The IGAE (Intervención General, Spain’s General State Comptroller) can require the funds to be repaid in full or in part. In IT projects, the indicators are usually objective and measurable (number of procedures digitalised, system availability, reduction in processing time), so it is essential to design the project with indicators that are achievable, not optimistic.