The European Commission has backed Spain following allegations that Madrid used EU funds to pay pensions, saying there is no evidence that any rules were broken.

In a letter sent to the European Parliament, the Commission said it had found no evidence of misuse of EU public funds by the Spanish government, despite a report by the national auditor suggesting that budget credits linked to a post-pandemic recovery fund were used to finance pension payments in November 2024.

Madrid has categorically denied the claims.

“Every payment request 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 also worth clarifying that the Spanish recovery and resilience plan contains no milestone or target under which EU funds would be used to cover pension expenditure, since such spending is ineligible.”