Spain receives €23.1 billion under NextGenerationEU

The European Commission has disbursed a total of €42.8 billion to five Member States (Italy, Portugal, Cyprus, Malta and Spain) under the Recovery and Resilience Facility (RRF), the centrepiece of NextGenerationEU. The disbursements are part of the Commission’s efforts to support economic growth and resilience in EU Member States, and are based on successful steps in implementing the reforms and investments outlined in each country’s recovery and resilience plan.

Spain: disbursement of EUR 23.1 billion

The Commission has disbursed €23.1 billion to Spain, representing the fifth payment under the RRF. This payment includes €7 billion in loans and €16 billion in grants. The payment covers 82 of the 84 milestones and targets, including important steps in the implementation of 20 reforms and 49 investments. The reforms and investments include measures to promote the adoption of and investment in renewable energy, reduce red tape and ensure that clean energy sources are better connected to the electricity grid, create a Sustainable Finance Council as a forum to promote public-private collaboration in this area, and improve the efficiency of the justice system.  They also include investments in short-distance rail travel, strengthening the cybersecurity resilience of citizens and SMEs by boosting the cybersecurity industry and supporting innovative companies.

As part of this disbursement, approximately €139 million is being paid out in relation to a target that was previously suspended in the fourth payment request. This target was intended to support the digitalisation of small and medium-sized enterprises (SMEs). Spain has since met the requirements, allowing these funds to be released.

At the same time, approximately €500 million is being suspended for two milestones related to the grant component of the fifth payment request, concerning tax reform and the digitisation of regional and local authorities, which are considered not to have been met at this stage. Spain now has six months to successfully meet these two milestones.

An additional amount of approximately €627 million is suspended due to the reversal of a milestone linked to the reform of temporary employment in the civil service. This amount had previously been disbursed as part of Spain’s first payment request. The Commission has deducted this amount from the fifth payment application, as the milestone can no longer be considered satisfactorily fulfilled. Spain now has six months to take additional measures to satisfactorily fulfil this milestone.

The total funds paid to Spain under the RRF now amount to €71 billion, representing 44% of the total allocation. Spain’s overall recovery and resilience plan is financed by €163 billion in grants and loans.

More information: European Commission