The European Commission announced on Friday that it has approved payments to Spain. The Recovery Plan is allocating 6,000 million euros as the third tranche. After confirming that Spain met the 29 investment and reform milestones and targets set for the first half of 2022, the Commission approved the 6,000 million euros requested by Madrid last November. Source: European Commission
This decision shows that Spain is the most advanced country in implementing the European plan. Only Spain and Italy had asked for the third tranche, and Spain becomes the first to receive a favorable assessment that enables the release of this tranche. With this payment, Spain’s total transfers reach 37,000 million euros, amounting to roughly half of the total funds allocated to the country (70,700 million). Source: European Commission
Among the reform commitments tied to the third tranche are changes to the bankruptcy law, a new regime for self-employed workers, reforms to pension funds, a law establishing a comprehensive vocational training system, and measures to prevent and combat tax evasion. Source: European Commission
A total of eight payments
The Spanish Rescue Plan envisions eight payments in total, with the final one expected by 2026, the last year foreseen by the European Union for completing the program. Source: European Commission
The schedule agreed between Madrid and Brussels shows that the fourth tranche, worth 10,000 million euros, will be disbursed in the first half of 2023 upon verification of investments and reforms planned through 31 December 2022. Included among the reform commitments for the fourth tranche is a new round of pension reform. The plan includes extending the retirement calculation period and raising the maximum contribution base. The Minister of Social Security, Jose Luis Escriva, has not yet completed tripartite talks with social partners, parliamentary allies, and European officials, which remain essential for advancing the reform. Source: European Commission
Pending pension reform
Until this round of Social Security reform is approved, Spain should not request the fourth tranche of European funds. When the fourth tranche is requested, Brussels plans to review three rounds of Social Security reform. The first, approved at the end of 2021, involved pension revaluation with the CPI and the new intergenerational equity mechanism. The second, by mid-2022, included changes affecting self-employment and supplementary pension plans. The third should focus on the pension calculation period and the cap on contributions. Brussels will assess whether reforms since the end of 2021 ensure the long-term sustainability of the pension system. The approval of the fourth tranche depends not only on this assessment but also on the results of the previous rounds. To keep momentum, the Ministry led by Jose Luis Escriva maintains ongoing dialogue with the European Commission. Source: European Commission
‘Men in Black’ of the European Parliament
The announcement of the third payment to Spain comes amid heightened scrutiny by the European Parliament, which plans to send a delegation to oversee the use and management of European funds in the country. The Budget Control Committee has raised questions about transparency in fund management. Source: European Parliament records
The visit by the Parliament’s delegation coincides with criticism from Alberto Núñez Feijóo and the PP, who describe the Spanish administration of European funds as lacking transparency. The discussions focus on governance across autonomous communities and the handling of European money. Source: European Parliament records
government data
In response to this scrutiny, the government released the third report on the Execution of the Recovery Plan, highlighting ongoing progress in 2022 and early 2023. The report notes more than a hundred meetings with autonomous communities, municipalities, and the private sector to coordinate the shared management of European funds. Source: Government publications
According to official data, by the end of 2022, aid, tender activities, and calls for assistance totaled 23.3 billion euros, representing 75 percent of the 31,000 million already allocated to Spain, with 82 percent managed by the General State Administration. Source: Government publications
Additionally, autonomous communities received about 20.63 billion euros through 139 sectoral conferences and various subsidies and agreements for direct management in areas such as education, housing, health, and social policies. This balance strengthens regional roles in directing funds toward productive outcomes in 2023. In 2022, nearly 20 percent of resolved calls related to regional governments. Source: Government publications