One in five euros of European funds earmarked for subsidies in Spain risks going unspent if the current pace continues, according to the latest report from the consulting firm LLYC. The firm, which analyzes the management of EU money up to June 30, notes that in already resolved calls and bids as much as 11.144 billion euros have remained unused — 7.544 billion from the General State Administration and 3.622 billion from the autonomous communities — a figure that could climb to 17.448 billion, or 21.63 percent of the total grants awarded to Spain. [Source: LLYC report]
In addition, the study adds that this figure does not include 4.145 billion in prior-to-2024 financial assets and loans that the General State Administration will be able to recover without needing to be reimbursed to the European Union. Including these, the surplus would exceed 21,000 million euros, against Spain’s total grant commitments of around 70,000 million, plus 10,000 million from the Recovery Plan addendum. [Source: LLYC report]
It is not presented as lost money but as an available balance that the government can use, as demonstrated in the first call of the Perte for Electric Vehicle and Connected (VEC), a move repeated after the first allocation left almost 75 percent of the 2.975 billion earmarked in the treasury. The consultant warns, however, that a temporary issue exists since all funds must be awarded by August 31, 2026, a little over two years away. [Source: LLYC report]
“These are very significant figures that the Spanish government should consider, both to increase the effectiveness of awarding programs that remain and to decide how to allocate unspent or recoverable amounts,” the firm states. It advocates changing the pre-decided spending structure and using remaining funds in destinations where they can be best utilized, directing resources toward programs with greater demand. [Source: LLYC report]
By the end of June, Spain had committed the full amount of subsidized funds assigned (70,526 million) and had already awarded more than half (42,642 million). On top of this, 10,000 million in non-reimbursable funds come from the Recovery Plan addendum. Meanwhile, loans financed through repayable funds saw about 31.9 percent of the total committed, reaching 32.524 billion. [Source: LLYC report]
Although the public sector remains the primary destination for aid, the gap with private sector allocation has narrowed to roughly 44 percent public versus 41.3 percent private. With the 10,000 million yet to be spent, private beneficiaries could eventually outpace the public ones, and Perte programs may end up favoring private companies. [Source: LLYC report]
Regional distribution
Autonomous communities have seen their share in fund execution dip from the initial goal near 50 percent of total available to about 30 percent of the subsidies, according to LLYC’s calculations (currently around 35 percent). The distribution criterion has largely been population-based, though some adjustments were made for other factors. Valencia, Madrid, Catalonia, and Andalusia received the most funds, yet they also delivered the fewest subsidies per capita (in that order: Madrid, Valencia, Andalusia, Catalonia). [Source: LLYC report]
Among these four regions, they account for 56.63 percent of the total population while receiving only 50.85 percent of the funds. In contrast, smaller regions such as La Rioja, Cantabria, Navarra, and Asturias have received the most per capita, with Cantabria and Navarra leading and La Rioja following. Asturias has per capita funds lower than Extremadura, despite a larger population. Collectively, the five regions hold about 7.6 percent of the population and 10.27 percent of the funds. [Source: LLYC report]
Nevertheless, the consultant notes that a designated autonomous fund of 20,000 million euros is planned for transfer to the autonomous communities. This amount represents just under a quarter of the total loaned by the European Union to Spain and will be distributed via an agreement with the European Investment Bank. [Source: LLYC report]
From funds to the real economy
For the first time, the report highlights funds reaching the real economy through actual payments, a detail not previously emphasized because public authorities cannot disburse cash until goods or services are delivered and project execution typically takes more than 18 months. [Source: LLYC report]
Two years after the initial Recovery Plan call, the firm argues that projects with financing approved in 2021 almost fully recognize the payment obligation, while fewer than one in three projects funded in 2024 have done so. In cash payments, the process lags behind the recognition of the right to collect, with notable delays in many cases. Examples include mobility programs Moves and self-consumption, which were continuously resolved from early on, but the complexity of justification delayed many actual payments after the aid was requested. [Source: LLYC report]
In any case, actual payments align with the perception of EU funds, since, by the end of May 2024, about 33 billion euros had been paid, compared with roughly 37 billion euros disbursed by Spain. [Source: LLYC report]