Brussels has decided to grant Spain two more months, extending the deadline to May 20, to assess the government’s request for the fourth tranche of European Union funds under the Recovery and Resilience Facility. The aim is to enable the disbursement of 10.021 billion euros. This was announced by the Economy Minister, Carlos Cuerpo, during a press briefing in Madrid alongside Paolo Gentiloni, the European Commissioner for Economic Affairs.
With this two‑month extension, the Government gains time to push the Congress of Deputies to give final approval to a reform of unemployment benefits. This reform is one of the obligations that must be fulfilled for Spain to access the fourth disbursement in full. Three payments have already been received, totaling 37.3 billion euros, out of a total of 80 billion in transfers allocated to Spain through 2026.
Budgetary extension
During the joint press conference, Cuerpo explained that the government’s choice not to approve a new State Budget in 2024 will not prevent Spain from fully leveraging the Next Generation EU funds planned for this year. “A budget extension does not imply any brake or obstacle to the execution of the Recovery Plan or to meeting the milestones and objectives,” the minister stated. He added that the extended budgets provide enough room for the investments and commitments envisaged in the Recovery Plan, which includes the request for two new tranches in 2024 totaling 25.6 million in both non-repayable funds and loans.
The European Commissioner Gentiloni expressed confidence in the minister’s approach. “Regarding the Budget decision, the European Commission takes note of Spain’s government decision. It is not our role to debate that point. I trust the program will continue to advance and will not be interrupted,” the Commissioner said.
When the Recovery Mechanism reaches its halfway point, the European Commission calls on member states to complete their investments and reforms by August 2026. “Everything that remains unfinished by that date will be money lost for the country,” diplomatic sources explain.
Political hurdles
On December 20, the Government formally requested the fourth disbursement of Next Generation EU funds allocated to Spain, tied to the fulfillment of 61 milestones and objectives. The request came one day after the Council of Ministers approved a reform of unemployment benefits for those who have exhausted their unemployment payments. The reform approval was one of the 61 milestones linked to the fourth tranche. However, on January 10, Podemos’s deputies voted against the decree, and the Congress of Deputies blocked the reform’s approval. Since then, Vice President Yolanda Díaz has not managed to bring a new reform proposal to the Council of Ministers strong enough to secure parliamentary support.
The clock is ticking, and the extended deadline of three months (from December 20) to assess the government’s request was due to end on March 20. This Thursday, Cuerpo announced that Spain would request two more months, until May 20, for Brussels to complete its assessment before the payout. Gentiloni clarified in Madrid that the extension request will be accommodated.
Technical adjustments
Formally, Spain is asking for two months to submit to the European Commission proposals for “technical adjustments” to the Recovery, Transformation and Resilience Plan that would enable a more objective evaluation of the commitments undertaken. In practice, however, the extension secures extra time for the approval of the unemployment reform. Minister Cuerpo expressed confidence that the reform will be approved in time for the European Commission to complete its assessment before May 20 and release the 10.021 billion euros from the fourth payment.
For now, the Government rules out a partial request for the fourth payment, as hinted by Cuerpo himself. The government intends to request the full 10.021 billion and, in parallel, continues advancing on the milestones and objectives tied to the fifth and sixth disbursements.
So far, Spain has already received three upfront disbursements of the Next Generation EU funds. The most recent one arrived in March 2023. Since then, Italy and Portugal have taken the lead, both having already received the fourth disbursement of their plans, and Italy has even sought the fifth payment.