Spain received clearance from the European Commission to set aside its early pledge to introduce a pay‑as‑you‑go toll system on motorways. This is one of fifty‑two changes to the Recovery, Transformation and Resilience Plan (PRTR) that Spain requested in an addendum submitted to Brussels last June. On Monday, the EC generally approved the annex and, with it, the removal of toll commitments on highways.
In PRTR, the government had promised to implement a pay‑as‑you‑go system on highways starting in 2024. The approval of the reform means this commitment is no longer binding. It is not a delay; it represents a rollback. Initially, the government described tolls as a way to raise funds for road maintenance. Yet the commitment was framed as part of a broader reform package tied to a new mobility law that aligns with decarbonisation goals under the polluter pays principle.
Rail as an alternative measure
This framework, not tied to an economic target within the Recovery Plan but aimed at environmental outcomes, allowed Spain to request Brussels to drop the toll plan in exchange for other measures with equivalent decarbonisation results.
The EC judged that the alternative measures proposed by Spain to cut gas emissions by promoting freight transport by rail were sufficient to meet the green mobility targets originally set in the PRTR.
As the Minister of Transport recently noted, among the alternatives Spain proposed was the possibility of introducing joint railway incentives or subsidies to encourage transport of goods by rail, in order to push freight off roads.
“The important factor is that this partial adjustment within the framework of the Sustainable Mobility Act, conducted under Article 21 of the Recovery and Resilience Mechanism regulation, keeps the milestone’s ambition intact. The revised milestone contributes to reducing greenhouse gas emissions from road transport, and it also addresses country‑specific recommendations urging Spain to improve its rail freight infrastructure and attract investments in sustainable transport,” stated the European Commission’s spokesperson on economic affairs, Veerle Nuyts.
The fund allocation to Spain rises to 164.3 billion
The EC published a positive assessment of the Spanish document on Monday, which now goes to the European Council for consideration. The Ecofin council’s approval window is set at a maximum of one month.
With the annex approved, 94.3 billion in New Generation EU funds is slated to flow by 2026, adding to roughly 70.0 billion from the initial cycle. The total allocation reaches 164.3 billion euros in European funds—comprising transfers and loans to Spain from 2021 to 2026.
Specifically, the addendum makes room to withdraw another 7.7 billion euros in additional transfers (bringing total near 77.2 billion in losses), while an 84 billion euro loan component supports Recovery Plan investments involving private sector participation or public administrations under favorable terms. The government planned to channel this 84 billion as loans aimed at productive sectors and regional projects. The annex also enumerates the projects to be financed and outlines the new mechanism to strengthen the EU’s energy autonomy.
Next request for the fourth payment
Moreover, Monday’s addendum approval keeps the door open for Spain to submit further requests for the fourth payment of European funds, potentially in exchange for an additional 10 billion euros, provided the EC agrees to adjustments to milestones and targets tied to that tranche. The Ministry of Economy has stated that this fourth payment would be requested “soon.”
The only country to have achieved this to date is Spain, which has already drawn funds from the NextGenerationEU account—three payments in total. In practice, Spain has received non‑reimbursable transfers from the EU totaling 37.0 billion euros, consisting of 29.0 billion in advance and 28.0 billion in the three tranches issued so far.
The addendum approved by the EC updates the overall volume of funds and describes the investment projects and reforms supported by transfers and loans in Spain from 2021 to 2026. It also updates the payment timetable. According to the Ministry of Economy, under the new calendar Spain could seek seven additional payments and pre‑financing of about 1.4 billion euros related to the REPowerEU component. This would enable transfers and loans totaling up to 25.6 billion euros in 2024, 44.6 billion euros in 2025, and 44.3 billion euros in 2026.