Spain Gets €11.5 Billion from EU Support Package

What's the problem that is being addressed

Spain requested changes to its Recovery and Resilience Plan because parts of the original plan became difficult to implement due to real-world challenges. These challenges include: lack of demand for certain programs (35 measures affected), supply chain problems and unexpected technical difficulties (23 measures), higher inflation than expected (3 measures), and not enough eligible applications for some programs (3 measures). Spain also identified opportunities to make the plan work better by simplifying administrative processes and implementing improved alternatives that still achieve the original goals.

How that problem is being solved here

The European Commission is proposing to update the Council decision that approved Spain's Recovery and Resilience Plan. The update includes:

• Modifying 85 different measures across the plan to address the challenges mentioned above
• Using money freed up from scaled-back or removed measures to:
  • Add 4 completely new measures (support for trade, contribution to European supercomputing initiative, contribution to European space programs, and a new scheme to support green transition)
  • Increase funding for 3 existing measures (improving irrigation systems, supporting electric vehicle manufacturing, and industrial decarbonization projects)
• Keeping the total grant amount unchanged at €79.85 billion while reducing the loan portion from €83.16 billion to €22.71 billion because Spain no longer needs as much borrowed money for the revised plan

What changes as a result of this document

After these changes:

• The plan's overall climate contribution decreases slightly from 40% to 37.008% of total funding, but remains ambitious and still supports EU climate goals
• The digital transition contribution decreases slightly from 21.67% to 21.483%, while still making significant progress on digital transformation
• The REPowerEU chapter (focused on reducing dependence on Russian fossil fuels) continues to strongly support energy security, renewable energy expansion, and energy efficiency improvements
• All measures still follow the "do no significant harm" principle to protect the environment
• The total estimated cost of Spain's complete Recovery and Resilience Plan remains €102.58 billion

Other important information

The amended plan covers many areas of Spain's economy and society:

• Sustainable transportation (both urban and long-distance)
• Energy-efficient building renovations and affordable housing
• Modernizing agriculture, fisheries, and food systems
• Protecting ecosystems, biodiversity, and water resources
• Supporting industry transformation toward green and digital technologies
• Helping small businesses grow and access finance
• Making tourism more sustainable and competitive
• Expanding digital connectivity across the country
• Developing artificial intelligence capabilities
• Strengthening science, research and innovation
• Improving the national health system
• Boosting digital skills training for citizens and workers
• Modernizing education at all levels
• Strengthening social services and care systems
• Creating a more dynamic and inclusive labor market
• Supporting cultural industries and sports
• Improving tax collection and public spending effectiveness
• Reforming the pension system for long-term sustainability

The European Commission has confirmed that the amended plan still fully meets all required assessment criteria and will effectively help Spain's economic recovery while supporting EU-wide goals for climate action and digital transformation.