The European Commission has not only prevented the Spanish government from delivering on its initial pledge to introduce a toll system on motorways from 2024, but also approved a revised Recovery Plan that cushions Spain from penalties tied to those funds. The plan, cleared this week, frees Madrid from certain conditions previously required to unlock European money and paves the way for new reforms to proceed. The update also outlines a path to request a payment in the fourth tranche of European support, valued at 10,000 million, even as the original timetable shifted.
The revised plan grants the government an additional year to create at least 60,000 jobs by the end of 2025 and to expand educational slots for children aged 0 to 3 years. These targets remain central to the social and economic rebuilding effort supported by Brussels.
Spain’s first Recovery Plan, presented in Brussels in April 2021, promised a new civil service law to be enacted in the fourth quarter of 2022, conditional on the funding requests. The government delayed and submitted a bill to Congress in March 2023, urging urgent action while the election schedule shifted and Cortes was dissolved, weakening the original push for the reform.
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Now the text of the new Spanish Rescue Plan, incorporating changes requested by the government in the addendum submitted last June, no longer makes the civil service law a prerequisite for requesting the fourth tranche. Brussels has signaled satisfaction with the reforms laid out in the updated plan, which will be enacted by royal decree and ministerial order.
This framework could enable an administration to carry out reforms by decree if the measures are deemed necessary and urgent. It also reduces the need to negotiate such reforms through parliamentary committees.
In particular, Brussels is accepting a fresh commitment to regulate by decree the contentious evaluation of public employees, including how performance might influence career progression or salary supplements. The plan outlines merit and qualification criteria for senior officials seeking advancement to deputy general manager or equivalent roles, aligned with the new documentation.
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Only one payment in 2023
Following Brussels’ assent to the change in the initial Recovery Plan, the incumbent government signaled it would pursue the modification soon. The fourth tranche, worth 10,000 million, could still be unlocked in 2023, though ministerial decisions on public service matters would require advance approval.
If progress continues, Spain could receive 10 billion in 2023 as part of the Next Generation EU funds, adding to the 37,000 million already disbursed from a total plan of 77,200 million through 2026. The adjusted timeline, however, moves the second payment originally planned for 2023 to 2024 and reduces the immediate pace of disbursements.
Total 52 modified commits
Beyond easing the toll and civil service prerequisites, the updated Recovery Plan revises the scope and timing of 52 prior commitments. The modification framework follows Regulation Article 21, which allows adjustments based on objective conditions such as energy shocks, supply chain disruptions, macroeconomic shifts, inflation, or the availability of better alternatives capable of achieving the same goals.
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The revised approach underpins a shift away from tolls on highways and toward incentives for decarbonising transport, including rail freight improvements. The European Commission endorsed this direction as a viable alternative.
Speculation around scrapping the public service law has been tempered by the dissolution of Cortes and the resulting legal challenges. The European Commission has expressed willingness to meet the original aims through royal decree and ministerial order, rather than parliamentary negotiation.
Among the adjusted commitments is an increase in early education capacity for children aged 0 to 3, now set with a goal of at least 60,000 places. An additional year has been added to reach this target, extending the deadline to the end of 2025.