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Economics

Spain Risks Losing Recovery Fund Cash After Missed Deadlines

  • At stake are new payments from 160 billion-euro share
  • Madrid is the second-biggest beneficiary from EU fund
Cibeles square in Madrid.

Cibeles square in Madrid.

Photographer: Angel Navarrete/Bloomberg
Updated on

Spain missed a second deadline last month to implement a reform required to unlock money from the European Union’s pandemic recovery fund, putting at risk new payments from the €160 billion ($156 billion) it’s eligible to receive.

The Spanish government has failed to set up a new auditing system, one of the milestones it agreed to as part of the EU’s €724 billion Recovery and Resilience Facility, according to people familiar with the matter. Madrid has already been handed about €31 billion of its total allocation.