Commission sides with Spain on EU cash for pensions row as parliament calls for transparency

Published connected 20/05/2026 - 16:47 GMT+2•Updated 16:53

The European Commission has backed Spain pursuing allegations that Madrid utilized EU funds to wage pensions, saying determination is nary grounds that immoderate rules were broken.

In a missive sent to the European Parliament, the Commission said it had recovered nary grounds of misuse of EU nationalist funds by the Spanish government, contempt a study by the nationalist auditor suggesting that fund credits linked to a post-pandemic betterment money were utilized to concern pension payments successful November 2024.

Madrid has categorically denied the claims.

“Every outgo petition submitted by Spain has been thoroughly and transparently assessed,” the letter, signed by Commissioners Raffaele Fitto, Piotr Serafin and Valdis Dombrovskis and seen by Euronews, said.

“It is besides worthy clarifying that the Spanish betterment and resilience program contains nary milestone oregon people nether which EU funds would beryllium utilized to screen pension expenditure, since specified spending is ineligible.”

Following the archetypal media reports, which triggered a contention successful Germany, Madrid provided the Commission with a method explanation, arguing that the contented amounted to small much than an accounting technicality.

Yet, subordinate of the European parliament insists the saga is acold from over.

On Wednesday, Johan Van Overtveldt, an influential subordinate of the European Parliament sitting connected its fund committee, told Euronews that the explanations provided by the Commission were not satisfactory, describing them arsenic vague and obtuse.

"They are talking astir the beingness of excess liquidity, and what they reason is simply a grade of liberty for subordinate states to usage it," Van Overtveldt told Euronews. "But my god. How bash we power this? And what is the wealth being utilized for? Until the Commission comes up with a clearer mentation and clearer numbers, determination volition stay a unreality of doubt."

A Spanish authoritative told Euronews that the letter, addressed to 2 members of the European Parliament including budgetary power committee seat Andreas Schwab, demonstrated that the allegations were unfounded.

Frugality clashes with associated indebtedness supporters

The timing of the missive offers a governmental lifeline to the Spanish government, which had travel nether scrutiny astatine a delicate moment, with negotiations implicit the EU’s adjacent semipermanent fund astir to begin.

The talks are expected to pit subordinate states calling for a larger fund — including imperishable associated borrowing instruments — against much fiscally blimpish countries pushing for tighter spending controls.

Budget negotiations person traditionally opposed confederate European countries against the much frugal bluish states, seen arsenic stronger economically. But the tables person turned successful caller years, with confederate economies present outperforming parts of halfway Europe successful presumption of GDP growth.

Spain is presently the fastest-growing large system successful the euro area.

In the aftermath of the contention — presented successful the German tabloid property arsenic yet different illustration of the affluent northbound subsidising the southbound — officials adjacent to the Spanish authorities suggested the occurrence was being weaponised to weaken Madrid’s negotiating presumption up of hard fund negotiations.

Van Overtveldt told Euronews his disapproval stems from a deficiency of transparency from the Commission itself.

"These arguments are nonsensical. They person to explicate to america however they supervise the strategy of backing allocation and however the RFF is controlled. That's what we need," helium said.

"Can we not inquire questions? A deficiency of transparency, not questions, volition wounded the fund talks. As you saw successful the property successful immoderate subordinate states, this is each rather worrisome," helium added. "We perfectly request much circumstantial information."

The European Commission considers the contented solved.

"The Commission takes the contented of transparency connected the usage of national funds precise earnestly and continues to importune connected this," the enforcement added successful the missive seen by Euronews published Wednesday.