Brussels defends Spain's right to temporarily allocate European funds to pensions

The European Commission is investigating the possible misuse of European recovery funds by Spain.

Deputy President of the European Commission Raffaele Fitto stated on Tuesday that Brussels is "analysing" a report that reveals a series of budget modifications in Spain, including the use of 2.4 billion euros from recovery funds to supplement pensions in 2024. However, Fitto eplained that the temporary use of liquidity from these payments for "an unexpected increase in the budget is temporary and has no impact".

"We are aware of the situation and are analysing it," Fitto stated. He said that pension payments "are not eligible for the use of these funds", set to address the economic impact of the pandemic. Spain is one of the main beneficiaries of these funds.

However, Fitto clarified that "it would be possible for member states to temporarily use some of the liquidity from these disbursements to cover an unexpected increase in their budgets".

Brussels is defending Spain against pressure from Germany, where major newspapers have attacked the country over the possible misuse of recovery funds, calling it "a top-level scandal".

Fitto stated that the European Commission reviews national control systems and can intervene in cases of fraud, corruption or conflicts of interest.