This government redirects European funds to sustain a pillar for investment growth and broader economic expansion. The executive includes these resources in the General Government Budgets project for the upcoming year’s expenditures, totaling 25,156 million euros. Of this amount, 23.840 million comes from the Recovery and Resilience Mechanism and 1,316 million from the React EU program.
The new European funds package adds to the nearly 53,000 million previously allocated in the two state budgets managed by the Government of Pedro Sánchez in earlier years: 26,634 million in 2021 and 26,355 million in 2022.
Critics from opposition parties and some businesses argue that fund absorption has been slow and that money has entered the real economy with delays. The government contends that implementing the Recovery, Transformation and Resilience Plan is a key instrument. It notes that funds have reached a steady pace this year and that 2023 will mark the period of the highest allocation of EU funds.
Officials state that 2023 will be the year of decisive reforms and investments. The plan will proceed in a context where regional investment measures cannot be postponed to align with actions within the REPowerEU framework. The maximum financial contribution updates and related strategy guide the presentation of the General State Budget project.
Data from the Ministry of Finance show that from 2021 to 2022 the Recovery Plan has authorized a total of 43,686 million euros, with 37,213 million committed and 32,989 million acknowledged as liabilities. According to the State Administration of General Intervention, payments reached 11,003 million in 2021 and 5,618 million by the end of August this year. This does not automatically indicate certainty, as transfers to other administrations or to infrastructure managers like Adif may be included in the totals.
Impact on GDP
The government estimates that the investments and reforms envisioned under the Recovery Plan will significantly influence economic growth. Forecasts from the Ministry of Economy indicate an average macroeconomic effect of 2.6 percentage points per year on national GDP between 2021 and 2031 through EU funds and structural reforms. The current year is expected to show a growth contribution of 1.9 points, with a projection of 2.8 points next year.
The administration asserts that this agenda, supported by Next Generation EU funds, will accompany needed investments to drive lasting structural change with a meaningful macroeconomic impact. Early outcomes are already visible and will become clearer during the year as various processes unfold at both national and regional levels.
Investments 2023
The 25,156 million euros in European funds included in the General Budget project complement roughly 70,000 million in non-refundable EU transfers first committed in 2020, in line with prior years’ budgets. The new government accounts also show close to 9,500 million to be sent to Brussels. This sum includes non-repayable funds approved by Brussels in response to slower-than-expected growth and the initial loan package that Spain will eventually repay to Brussels at a low interest rate.
Among the notable 2023 investments using Recovery Plan funds is Spain’s 2030 industrial policy, with 4,556 million dedicated to industry and digitalization. The residential rehabilitation plan focuses on about 3,005 million, or 5.8%, supporting housing access, building modernization, and energy efficiency. Digital connectivity, cybersecurity promotion, and 5G deployment account for 2,624 million, a 69.3% increase for 2023. The modernization and digitization of public administrations, including the education system, receive 2,161 million, while the shock plan for care services and stronger inclusion policies totals 1,346 million, or a 12.2% rise.
Overall, the 2023 investments aim to accelerate progress across key sectors, aligning with European goals for resilient growth and shared prosperity. The plan emphasizes transparent execution, timely disbursement, and ongoing evaluation to ensure that substantial reforms deliver tangible benefits to households and regional economies alike.