Germany and the Netherlands are outraged by Spain's use of EU funds — Politico
Spain’s alleged misuse of European Union funds earmarked for post-pandemic recovery has drawn criticism from Germany and the Netherlands. The issue concerns the possible use of these funds to pay state pensions, which has sparked outrage among some EU countries.
This was reported by Politico.
The European Commission has backed Spain in the escalating dispute over whether Madrid misused up to €10 billion in EU recovery funds—intended to finance environmental and digital projects to bolster economic recovery—to plug a hole in its pension system and finance social spending.
However, the potential misuse of funds, which, according to the Spanish audit authority, was identified in a May report, has reignited long-standing disputes in Germany and the Netherlands over whether poorer EU countries are squandering Brussels funds raised through shared debt, which will ultimately have to be repaid through EU-wide taxation.
The European Commission and the Spanish government have denied any wrongdoing, arguing that using funds from the pandemic recovery fund to cover routine budgetary needs does not violate the rules.
However, critics of the Pandemic Recovery Fund—which was launched in 2021 and amounts to €577 billion—have eagerly seized upon these latest revelations.
“This underscores the fact that the RRF (Recovery and Resilience Facility) is budgetary support,” said Dirk Goetink, a Dutch conservative member of the European Parliament.
Alice Weidel, leader of the far-right party “Alternative for Germany” (AfD), wrote on X: “German taxpayers’ money is funding socialist mismanagement in Europe. The madness of EU joint debt must end—an AfD government will make sure of it!"
The Spanish government—which lacks the parliamentary majority needed to pass a budget—has used EU pandemic recovery funds to finance investments in line with the program’s objectives, such as green and digital projects. The Commission reported that as of the end of 2025, Spain had spent more than 50 percent of the €79 billion in pandemic recovery grants to which it is entitled.
A report by Spain’s audit body, which claimed the funds were used for ordinary social spending—a claim the Spanish government denies—sparked debate across Europe and led to renewed calls for the abolition of the EU’s shared debt.
Persistent suspicions of misuse of EU funds could further complicate negotiations over the next seven-year EU budget, which pit thrifty northern countries against spendthrift southern ones.
Spain has become a proponent of EU joint debt—funds issued by the Commission on behalf of the 27 member states—and one of the few countries supporting an increase in the fund from the €1.8 trillion proposed by the Commission last summer.
Zelenskyy explained how the funds from the first tranche of the EU loan will be allocated.
On April 23, EU countries approved the 20th package of sanctions against Russia, which imposes restrictions on 46 vessels of the “shadow fleet” and 60 entities supporting the Russian military-industrial complex. The new measures include stricter export restrictions on dual-use goods and sanctions against 20 credit and financial institutions.
A trilateral meeting between the leaders of Ukraine and the European Union took place in Nicosia, following which Volodymyr Zelenskyy, António Costa, and Ursula von der Leyen issued a joint statement on a new phase of support for Kyiv. The discussion focused on a 90-billion-euro loan, sanctions pressure on Russia, and Ukraine’s continued progress toward EU membership. The leaders emphasized the need for swift decisions and strengthened joint action.
