Spain requests final €25.9 billion EU recovery payout and presents €120 billion successor plan

Final payment request submitted to Brussels

The Spanish government submitted its seventh and final payment request under the Next Generation EU recovery framework on 30 September 2026. Economy Minister Carlos Cuerpo reported to the Joint Committee for the European Union in Congress that the request amounts to €25,861 million, covering 148 milestones and targets that represent 30% of the country's total program. The sum includes €21,463 million in grants (€18,711 million net after deducting initial prefinancing) and €4,398 million in loans (€4,166 million net). Approval would bring cumulative program funding to €101,300 million. European Union auditors will review compliance with all agreed commitments before releasing the funds.

Execution track record and loan decisions

Spain has received €77,600 million across prior payment cycles, accounting for 77% of its total grant allocation and 338 approved milestones. Data presented to parliament indicated that €79,854 million had been assigned by public administrations through 31 August 2026, while €96,000 million has been disbursed to beneficiaries according to the Intervención General de la Administración del Estado. Resolution rates reached 77% within the General State Administration, 73% across autonomous communities, and 71% in local entities. Nearly 1.5 million recipients have received financing, with small and medium-sized enterprises representing 68% of the awardees. However, the government renounced roughly €62,000 million in available European loan facilities from an initial potential entitlement of nearly €163,000 million, formalizing €11,532 million out of €11,752 million in requested credits. The government cited limited private market appetite and accessible alternative borrowing, though coalition partner Sumar and opposition parties questioned the concession.

European funds have improved long-term potential growth, enhanced the capacity of the Spanish economy, mobilized investment, and created quality jobs with higher wages.

Reallocations and reduced social housing targets

The final phase of the plan reflects structural adjustments approved during its ninth formal modification in August 2026. Official documentation reveals that the delivery target for energy-efficient social rental housing fell by 21%, lowering the commitment from 20,000 homes to 15,718 units. Budget line 25.50.26BB.754, initially allocated €1,000 million under Component 2, was reduced by €500 million in both 2024 and 2025. These resources provided liquidity for pension payments and social security obligations during budget extensions without new parliamentary budgets. The Court of Audit flagged the budgetary transfer in May 2026 during its review of the 2024 state accounts, while the Ministry of Finance and the European Commission maintained that liquidity movements did not prevent final delivery of the recovery agenda.

Successor investment through España Crece

To sustain capital mobilization beyond the conclusion of the recovery plan, the government presented the España Crece strategy, designed to mobilize over €120,000 million in public and private financing. The mechanism builds upon an initial capital injection of €10,890 million from recovery funds and €2,800 million in transfers, supplemented by up to €60,000 million in assets from the Instituto de Crédito Oficial. Small and medium-sized businesses will receive €67,000 million in loans and portfolio guarantees starting in the fourth quarter of 2026, targeting sectors such as fintech, longevity, audiovisual production, agroforestry, and industrialized construction. An additional €27,000 million will support four specialized funds for strategic technologies, climate infrastructure, capital, and international productive investment in early 2027, alongside €23,000 million for affordable housing construction and €5,000 million for green transition projects.

We expect the preliminary assessment towards mid-November, then it will go through the Council and they will proceed to disbursement before 31 December.