Basque Government Launches the Basque Financial Partnership, with the Goal of Mobilising €4 Billion from Public-Private Partnerships for the Economic and Industrial Transformation of Euskadi

• President presides over the signing of the protocol with nine financial institutions in Bilbao to “pool funds, instruments and financial capacities,” starting with an allocation of €1 billion to the Basque Finance Institute to boost its investment readiness
• The new Basque Financial Partnership is the result of a public-private partnership, with the aim of flexing its own financial muscle so that Basque savings and financial capacities are geared towards the strengthening, growth and consolidation of the Basque industrial and technological fabric

The Basque president, Lehendakari Imanol Pradales, today presided over the signing of a protocol between the Basque Government and nine financial institutions (Federación de EPSV de Euskadi, BBVA, Laboral Kutxa, Kutxabank, Fundación BBK, Kutxa Fundazioa, Vital, BasqueFik and Elkargi) representing the launch of the Basque Financial Partnership, driven by the Regional Minister for Treasury and Finance, Noël d’Anjou, and the Regional Minister for Industry, Energy Transition and Sustainability, Mikel Jauregi. The initiative is the fruit of a public-private partnership “to align our financial capacities and place them at the service of the economic and industrial transformation of the Basque Country,” as highlighted by the Lehendakari at an event held at the Bilbao Stock Exchange before an audience of over 100 Basque dignitaries and representatives from the world of finance.

For Pradales, the commitment signed today between the parties responds to the government's responsibility to “seek solutions with the aim of protecting the Basque economy” in a scenario of international uncertainty that calls on us to “assume responsibilities, join forces and activate all capacities within our reach. It calls on us to act urgently in Europe and in the Basque Country”.

In this regard, and in line with the “concrete and decisive commitments demanded by the historic moment we are living through,” Imanol Pradales has set the wheels in motion with the allocation to the Basque Financial Institute of an additional €1 billion of financial capacity, with the submission before the Basque Parliament of a bill for the amendment of the 2025 Budget to authorise a long-term raising of debt of €1 billion for this allocation to the Basque Financial Institute.

These resources are ring-fenced exclusively for financial investments relating to the economic transformation of the Basque Country, particularly in the tech and industrial sectors and the scientific and energy infrastructure where that transformation is required. They will also serve to drive entrepreneurship and the creation of new industries and new economies. The new Basque Financial Partnership is another instrument at the service of industrial competitiveness, along with the Industrial Defence Group, led by the Lehendakari, and the Industry Aid Plan 2025, allocated 500 million euros. These actions are born of the conviction that industry is a source of wealth, progress and well-being for the Basque Country.

“Applying the rule of three to one from the Draghi Report, our goal is for this public investment of €1 billion to generate at least €3 billion more in capital and private savings, for a financial capacity of €4 billion during this term,” the Lehendakari said.

This €4 billion will allow for intervention in three areas:

* Support operations to establish business roots in the Basque Country

* Take advantage of opportunities for business growth, through investment, expansion and acquisition operations

* Create mixed instruments and vehicles to attract foreign capital and promote strategic projects

“This is the first step. But it's not the only one,” remarked Imanol Pradales, insofar that the Basque Country will continue to attract new initiatives within the scope of the Partnership, with stakeholders assuming the commitment to “join forces and put them at the service of the well-being and future of the country”.

In the action protocol signed today, the signatory parties have demonstrated their desire to drive the maintenance of the roots and the growth of the Basque industrial entrepreneurial and technological fabric, to consolidate the Basque Country as an attractive territory for investment, and to improve public-private dialogue to boost innovation and industrial competitiveness.  Ultimately, the new Basque Financial Partnership seeks to unleash internal financial capacities to help position the Basque Country as the launchpad for the reindustrialisation of Europe.

The Lehendakari reminded those present that this Basque Financial Partnership “is not starting from scratch,” specifically mentioning the Economic Agreement with the Spanish State and a “demonstrated solvency in the public accounts recognised at international level,” offering the example of the Basque Government’s recent public debt issue of sustainable bonds for €700m, which saw demand outstrip supply eightfold among international investors.

“We have a manufacturing culture and an open, innovative and competitive industrial fabric. We also boast and extensive and well-qualified workforce of human capital. And we have a dynamic, sound and solvent Basque financial sector.  This Financial Partnership seeks to mobilise capital and Basque savings, and also looks to attract capital and external savings to grow as a country,” he said in highlighting the context in which this ambitious public-private initiative is launched today as the Basque Financial Partnership.