Netherlands, Germany accuse Spain of misusing EU post-COVID recovery funds

Alleged use of the EU’s post-Covid recovery funds by Spain to cover pension and social spending has drawn strong criticism from Germany and the Netherlands, according to Politico.

The controversy was triggered by a May report from Spain’s national audit body, which claimed that part of the recovery fund may have been used not for “green” and digital projects, but to cover budgetary obligations, including pension-related expenditures.

The European Commission and the Spanish government have rejected the allegations, stating that no rules were violated and that the funds were used in compliance with existing regulations.

However, the situation has reignited debate within the EU over joint debt and the allocation of European funds. Critics argue that the recovery mechanism has effectively become a form of budgetary support for individual member states.

Dutch MEP Dirk Gotink said the case confirms concerns that the fund is being used to finance current spending rather than long-term investment.

The leader of the far-right Alternative for Germany (AfD) party, Alice Weidel, also criticised the EU’s shared debt system, stating that “German taxpayers’ money is financing socialist mismanagement in Europe.”

According to the European Commission, by the end of 2025, Spain had used more than half of its €79 billion allocation from the EU recovery fund.

By Jeyhun Aghazada