The Government renounces 70% of European loans and simplifies the reforms associated with the funds

The Government waives more than 70% of loans on advantageous conditions associated with the Next Generation EU funds. The Minister of Economy, Commerce and Business, Carlos Body, announced this Tuesday that the Executive will demand only 22,800 million euros of the 83,000 for which it could opt. This change will entail the simplification of the reforms and milestones committed to Brussels to be able to access said credits, although “without losing ambition” and with the aim of prioritizing strategic projects, according to Corp.

Among the pending reforms that do remain is the tax increase on diesel to make it equal to gasoline. This measure, which should come into force in January at the latest, was overturned by the Congress of Deputies with the votes of Podemos, PP and Vox in November 2024. Despite the modifications incorporated in the new addendum approved by the Council of Ministers, the change in the taxation of diesel “continues to be part of the milestones associated with the Recovery Plan,” Body has stressed.

The fifth disbursement of European funds was reduced by 460 million as this measure did not go ahead, which involved raising the tax on Hydrocarbons by 9.37 cents per liter. up to a total of 0.47269 euros per liter, thus equating it to gasoline. The head of Economy has explained that a total of 160 measures are reviewed, such as the milestone related to the land law, which is changed by others related to the creation of the public land company and the transformation of the Sepes. The Financial Client Defense Authority also leaves the commitments linked to the Recovery Plan, which, however, will continue its processing in the Congress of Deputies.

The Executive explains that, at the same time, the execution of the objectives that They give access to 100% of transfers (close to 80,000 million euros in total). “The good performance of Spain’s economy favors less recourse to European loans, which barely present a financial advantage over public Treasury issues and count as public debt,” they maintain from the department headed by Corps.

This would allow Spain to continue investments beyond August 2026, when the program expires. Among other factors, the capital of the Official Credit Institute (ICO) in more than 13,000 million euros. According to official data, to date more than 80 billion have been allocated to more than 1.3 million beneficiaries in the private sector and households. Of that amount, 58.7 billion euros would have already reached the real economy.