European Commission approves third €6 billion payment to Spain under the Recovery and Resilience Mechanism

The European Commission has approved a positive preliminary assessment of Spain’s request to pay a grant of EUR 6 billion. 6 billion (net pre-financing) under the NextGenerationEU main instrument: Recovery and Resilience Mechanism (RRM).

Spain submitted a payment request to the European Commission on 11 November 2022 based on the achievement of the twenty-four milestones and five targets set out in the Council Implementing Decision on the implementation of the third tranche, the milestones and targets achieved again show that significant progress has been made. In the implementation of the Spanish Recovery and Resilience Plan.

In terms of reforms, these include, for example, the approval of the Telecommunications Law to promote high capacity network infrastructure; reforms to accelerate the construction of charging infrastructure in car parks; reforms to the bankruptcy law to improve the efficiency of bankruptcy proceedings, its attractive reforms, legislation to combat tax fraud and tax evasion, reform of the autonomous social security contribution system and revision of the current supplementary pension system. The milestones and targets also confirm progress in investments, in particular in renewable energy production in local communities, digitalisation and promotion of cultural services, research, development and investment to support projects aimed at making the automotive industry more sustainable.

With their request, the Spanish authorities provided detailed and comprehensive evidence demonstrating the fulfilment of the 24 milestones and 5 targets. As required by the RRF Regulation, Spain has also confirmed that measures related to previously satisfactorily fulfilled milestones and targets have not been reversed. The Commission has thoroughly assessed this information before presenting its positive preliminary assessment of the payment request.

Based on the evidence submitted by the Spanish authorities and the controls carried out, the Commission has also concluded that Spain has ensured continued compliance with Milestone 173. In the framework of the first payment request, the Commission and the Member States had considered that Milestone 173 – putting in place an IT system to monitor and control the plan – was satisfactorily fulfilled. To ensure continued compliance with Milestone 173 and its audit and control obligations included in the Financing Agreement, Spain made a number of additional commitments which have now been assessed as satisfactorily fulfilled.

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Spain’s recovery and resilience plan covers a very broad range of investment and reform measures, organised in thirty thematic sections. The programme will be supported by grants of DKK 69.5 bn. EUR 69.5 billion, of which 13% (EUR 9 billion) has already been paid to Spain in August 2021 as pre-financing. In addition, the first payment of EUR 10 billion was made to Spain on 27 December 2021. A second payment of EUR 12 billion was made to Spain on 27 June 2022.

Payments under the RRF are performance-based and contingent on Member States implementing the investments and reforms outlined in their respective recovery and resilience plans.

President of the European Commission Ursula von der Leyen said: “Today, I am happy to announce that Spain has taken another important step on its path towards recovery. We have assessed that the country has made sufficient progress to receive its third payment under NextGenerationEU. As always, Member States will have to endorse our assessment. Then, Spain will receive €6 billion in grants. This important step testifies to Spain’s ongoing push to drive forward its green and digital transitions – for instance, through progress on renewable energy and the digitalisation of services and key infrastructure – and its own social and economic resilience. For example, Spain has been improving its vocational training system and has made insolvency procedures faster and less costly. ¡Enhorabuena, España! Keep up the good work, the Commission stands by your side.”

Next steps

The Commission has now sent its positive preliminary assessment of Spain’s fulfilment of the milestones and targets required for this payment to the Economic and Financial Committee (EFC), asking for its opinion. The EFC’s opinion, to be delivered within a maximum of four weeks, should be taken into account in the Commission’s assessment. Following the EFC’s opinion, the Commission will adopt the final decision on the disbursement of the financial contribution, in accordance with the examination procedure, through a comitology committee. Following the adoption of the decision by the Commission, the disbursement to Spain can take place.

The Commission will assess further payment requests by Spain based on the fulfilment of the milestones and targets outlined in the Council Implementing Decision, reflecting progress on the implementation of the investments and reforms.

The amounts disbursed to the Member States are published in the Recovery and Resilience Scoreboard, which shows progress of the implementation of the national recovery and resilience plans.

More information

European Commission