The European Commission has approved the fourth payment of European funds for Spain, amounting to 9.842 billion euros. This payment has been delayed by more than a year due to various factors such as political instability, project difficulties, and administrative challenges. Despite these delays, Spain is one of the countries that has made significant progress in the execution of European funds, having already received around 38 billion euros. However, Spain still needs to accelerate its spending to meet the deadlines for utilizing the allocated funds, with a majority of the funds needing to be spent by August 31, 2026.
Spain’s delay in fulfilling the commitment to hire workers for the digital transition program has resulted in a reduction of 158 million euros in the approved payment. The government has explained that there was insufficient demand for the program, prompting them to make changes and introduce a new initiative called kit consulting. The government now has seven months to complete this objective in order to unlock the withheld funds. Despite this setback, the approval process for other investment objectives will continue, with the matter now going to the EU Council for further scrutiny.
The approved payment includes a wide range of investment objectives such as pension reforms, waste management laws, digitalization projects for various sectors including transportation and justice, funding for research and development, and improvements in irrigation systems. The government has also introduced reforms to simplify business creation and create a more attractive environment for start-ups. While the housing law has been criticized for not addressing the issue of housing supply, it has been accepted by the Commission as part of the fourth payment evaluation.
One of the challenges that the Spanish government will face in the next payment is the implementation of fiscal reforms, including measures such as special taxes on high net worth individuals, energy companies, and banks. Despite these challenges, the Commission has expressed satisfaction with the progress made by Spain in utilizing the European funds. The government will need to continue working on meeting the targets and objectives set out in its recovery plan to ensure the effective use of the allocated funds within the specified timeframe.
The implementation of the European funds has been a complicated process for Spain, with delays in meeting targets and objectives. However, the approval of the fourth payment by the Commission signals progress in the country’s utilization of the allocated funds for economic recovery and development. The government will need to address remaining challenges and accelerate spending to ensure that the funds are effectively utilized to support the country’s economic growth and recovery efforts in the coming years.
