The European Commission approved an annex to the Recovery Plan presented by the Spanish Government in June. The annex updates the government’s initial Recovery Plan submitted in April 2021, increasing Next Generation funds available to Spain by 93.5 billion euros by 2026, for a total of 163 billion euros in subsidies and loans. For 2024, Spain will receive more funding, rising by 25.6 billion euros through transfers (10,155 million) and loans (just over 15,400 million), compared to the 8,000 million euros subsidy in the first plan.
More money available…
The Transformation and Resilience Recovery Plan (PRTR), unveiled by the government in Brussels in April 2021, provided access to 69.5 billion euros in subsidies tied to the New Generation EU package in exchange for completing 110 investment projects and 102 reforms, including pension and labor reforms.
The addendum updates the non-refundable aid allocated to Spain, rising to 77.2 billion with an additional 7.7 billion. It also requests access to 83,000 million euros in Recovery and Resilience Facility credits. The update helps the government secure funds from Repower EU to advance energy sovereignty, including a 2,600 million euro entry tied to the program.
Overall, the addendum unlocks a further 93.5 billion euros in subsidies (77.2 billion plus 2.6 billion from Repower) and 83.0 billion euros in loans for 2021-2026, bringing the total to as much as 163.0 billion euros. All community budget credits carry a 30-year repayment horizon, with the first 10-year grace period for principal repayments. Interest rates will mainly reflect the financing cost associated with Next Generation EU emissions over each loan period.
…to strengthen the ecological transition
The amended plan emphasizes ecological transition by directing 40 percent of available funds to measures aimed at tackling climate change. The revised plan adds 30 new climate actions, lifting the green contribution to 65 billion euros from 27.6 billion in the original plan.
The European Commission noted that seven new investments strengthen the reform package, expansion of investments, and the resilience of the EU, contributing significantly to the ecological dimension. The reform aims to speed up renewable energy development and simplify permitting processes. The seven new investments focus on renewable hydrogen, the renewable energy value chain, electrical networks, and decarbonization in industry. The expansion supports self-consumption, storage, and energy communities.
…and digital migration
The revised plan broadens digital objectives. Eighteen new measures bring the total allocation to these targets to 26 percent. The amended plan includes many measures related to advanced digital technologies and strategic investments along the value chain, including microprocessors from R&D to production. It also funds ventures in emerging technology companies, supports access to finance for the audiovisual sector, and promotes the use of new digital tools in media. The plan further aims to accelerate IT sector digitalization, water management, and public administration through additional investments in cyber security.
Another 27,000 million for strategic plans
The push for green and digital growth is expressed through stronger backing for nearly all existing strategic plans, including Perte VEC for electric vehicles, Pioneer Health, Renewable Energy, Green Hydrogen and Storage, and Digitizing the Water Cycle. Modernization of agri-food, aviation, and other industries, plus decarbonization of energy-intensive sectors, remains a priority. The Perte CHIP for semiconductors and microprocessors and the New Language Economy are also included. The annex provides roughly 27 billion euros in extra resources across transfers, loans, and Repower EU funding for these strategic plans.
A fund for autonomous communities of 20,000 million euros
The plan allocates 83,000 million euros in loans to support productive sectors and regional projects. A key feature is the Autonomous Resilience Fund, managed by the European Investment Bank Group, endowed with grants up to 20 billion euros to finance sustainable investment projects in autonomous communities. Investments can come from private or public sector entities across communities and cover housing, urban transformation, sustainable transport, industrial and SME competitiveness, research and innovation, sustainable tourism, care economy, water and waste management, and energy transition.
17 new reform commitments
In addition to investments, the annex includes 17 reforms that advance structural transformation of the economy toward sustainable growth. While some reforms are politically sensitive, such as pension and labor reforms, others expand existing frameworks, including a sandbox for innovation, enhanced transportation infrastructure, and regulations addressing food waste and financial practices. A Green Paper on Sustainable Finance is among the measures, along with steps to strengthen consumer protection in fragile economic times.
New payment plan
The annex updates the payment plan to include additional transfers and loans, with up to 52 milestones and goals aligned to new conditions. For example, the Digital Kit program extends through the end of 2025, and the government extended eligibility for the subsidy payment of 10 billion euros to the second half of 2023, tied to reforms delayed by election timelines. The revised schedule allows for seven more payments and pre-financing of about 1.4 billion euros under the Repower EU chapter. Combined transfers and loans could reach up to 25.6 billion euros in 2024, rising to about 44.6 billion in 2025 and 44.3 billion in 2026.