The Spanish government is seeking to contain a scandal linked to EU pandemic funds, categorically denying that it used European money to pay pensions, as member states prepare for tough budget talks amid deep divisions over how funding should be allocated.
An official in Madrid with direct knowledge of how EU funds are structured told Euronews that a technical matter is being instrumentalised in a way that is “simply false”, accusing the opposition of playing politics over what it describes as an accounting issue.
A Spanish budget watchdog reported earlier this month that the government of Pedro Sánchez used budget credits linked to the EU’s Recovery and Resilience Facility (RRF), an economic plan partly funded through common debt designed to revitalise the bloc’s economy after Covid, to partly finance Spanish pension payments in November 2024.
Madrid insists it did not breach the rules.
The European Commission asked Madrid for clarification after initial newspaper reports, according to a person familiar with the matter. It did not issue a follow-up request once Madrid provided an explanation, and Spanish authorities consider the issue closed.
