THE European Commission has approved a new payment of €23.1 billion to Spain as part of the EU recovery plan.
The money comes from the fifth round of funding and includes €8 billion in direct grants and €16 billion in loans.
However, around €1 billion has been withheld after Spain failed to meet two key targets: introducing a diesel tax and completing digital upgrades for regional and local administrations.
Spain now has extra time to meet these conditions.
According to the Commission, these funds will support projects in areas such as:
- renewable energy
- cutting red tape
- improving the justice system
- expanding local rail networks
- strengthening cybersecurity
The payment is linked to 69 reforms and investments, which are part of a larger effort to modernise Spain’s economy. It also includes €139 million that had been held back from a previous payment but has now been released after progress was made on digital tools for small businesses.
Spain is the largest recipient of EU recovery funds so far, having received over €71 billion, which includes more than €55 billion in grants. This makes Spain the top country in Europe for non-repayable funds received under the recovery plan, ahead of Italy and France.
The Commission has also raised concerns about Spain’s earlier pledge to reduce temporary contracts in the public sector.
Although the commitment was previously accepted, two rulings from the EU Court of Justice found Spain’s measures to be insufficient.
Brussels has now deducted €627 million for this reason and given Spain six months to take further action. Spain’s government says it is already working with EU institutions to resolve the issue.
It is also preparing its sixth payment request and aims to meet all remaining targets by the August 2026 deadline.
Officials say the EU funds are helping to boost economic growth, create jobs, and modernise key areas of public life.
Click here to read more Spain News from The Olive Press.
