Lorraine Williamson
Spain is tightening the screws on NextGenerationEU spending as the recovery-plan clock runs down. The government is finalising EU funds repayment rules that would force public bodies, companies and other beneficiaries to return money that is not used, not properly justified, or linked to projects that miss agreed commitments.
The draft order, led by Ministerio de Hacienda, is designed for the endgame: 2026 is the critical year for delivery and certification. In plain terms, this is the state saying: spend it, prove it, or pay it back.
Why this is happening now
Spain has been one of the largest recipients of EU recovery support, with tens of billions assigned through grants and a wider envelope including loans. The plan was built on milestones: reforms and investments that unlock payments, and paperwork that proves compliance.
But as deadlines approach, bottlenecks have become harder to ignore. Recent reporting has highlighted that regional administrations still have a sizeable share of allocations to execute before the final cut-offs.
What the EU funds repayment rules would change
The draft order sets out situations that could trigger repayment. These include money that is not spent, expenditure that cannot be properly evidenced, or projects that do not deliver what Spain promised to Brussels. It also allows for proportional repayment, meaning the clawback could reflect the degree of non-compliance rather than an all-or-nothing approach.
It is not just about accounting. Under EU recovery rules, funding can be suspended or reclaimed if milestones are not met. Spain’s aim is to avoid that risk by tightening domestic enforcement before the European side does it for them.
Who could be affected?
The repayment framework is broad because the recovery plan is broad. Beneficiaries can include public administrations, public entities, and private organisations receiving support through calls, tenders or agreements.
The draft also spells out procedure: how the administration initiates a repayment process, how evidence is assessed, and what happens if the money is not returned voluntarily. In cases of non-payment, Agencia Tributaria could step in to recover the sums due.
A public consultation window is open
This is not yet the final legal text. The draft order is open for observations until 10 February 2026, after which it can move towards publication in the BOE and entry into force.
For businesses and local bodies that have relied on recovery funding, the message is clear: the compliance phase is no longer theoretical. Documentation, measurable outputs and on-time delivery are about to matter as much as winning the grant in the first place.
What this signals about the post-2026 plan
The timing also intersects with the government’s attempt to extend the investment push beyond the recovery-plan horizon. La Moncloa has presented the Spain Grows Fund as a way to channel momentum after 2026. But the immediate political priority is making sure existing EU commitments are met, and that Spain does not leave money on the table or face embarrassing clawbacks.