{"id":1937430,"date":"2026-05-15T16:06:59","date_gmt":"2026-05-15T13:06:59","guid":{"rendered":"https:\/\/analyse.optim.biz\/?p=1937430"},"modified":"2026-05-15T16:06:59","modified_gmt":"2026-05-15T13:06:59","slug":"spanish-row-over-eu-cash-fuels-north-south-tensions-ahead-of-tough-budget-talks","status":"publish","type":"post","link":"https:\/\/analyse.optim.biz\/?p=1937430","title":{"rendered":"Spanish row over EU cash fuels north\u2013south tensions ahead of tough budget talks"},"content":{"rendered":"<p>[analyse_image type=&#8221;featured&#8221; src=&#8221;https:\/\/images.euronews.com\/articles\/stories\/09\/76\/02\/65\/1200x675_cmsv2_f0b802f7-3045-52c3-b449-0fc4c510f1a0-9760265.jpg&#8221;]<\/p>\n<article id=\"abe-2893862-pos1-c-latest-stories\" class=\"the-media-object m-modeMobile-1 m-modeDesktop-1 m-modeXL-1\" data-nid=\"2893862\" data-cid=\"9759627\" data-part-label=\"Partner content\">\n<figure id=\"abe-2893862-label-pos1-c-latest-stories\" 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id=\"abe-2894034-label-pos4-c-latest-stories-sidebar\" class=\"the-media-object__figure\"><img decoding=\"async\" class=\"the-media-object__image\" src=\"https:\/\/images.euronews.com\/articles\/stories\/09\/76\/03\/55\/189x106_cmsv2_ddee6a2d-ef87-5a45-ba17-0e64e8768e86-9760355.jpg\" loading=\"lazy\" alt=\"Latest news bulletin | May 15th, 2026 \u2013 Evening\" height=\"9\" width=\"16\"><\/figure>\n<div class=\"the-media-object__content\">\n                    Top News Stories Today<\/p>\n<div class=\"the-media-object__title  \">\n<p>    Latest news bulletin | May 15th, 2026 \u2013 Evening\n  <\/p><\/div>\n<\/div>\n<\/article>\n<article class=\"helper-site-row o-article-newsy\">\n<div class=\"helper-site-container o-article-newsy__container\">\n<div class=\"o-article-newsy__main\">\n<header class=\"h-grid o-article-newsy__main__header\">\n<nav aria-label=\"Breadcrumbs\" class=\"c-article-breadcrumbs\">\n<div id=\"adb-article-breadcrumb\" class=\"c-article-breadcrumbs__list\">\n<p>                          Europe<\/p>\n<p>                          Europe News<\/p><\/div>\n<\/nav>\n<h1 class=\"c-article-redesign-title\">\n                            Spanish row over EU cash fuels north\u2013south tensions ahead of tough budget talks<\/h1>\n<div class=\"c-article-image-video u-position-relative \">\n<div class=\"js-superdiv u-aspect-ratio-16x9 u-position-relative \" data-sponsored=\"Partner content\"><img fetchpriority=\"high\" decoding=\"async\" class=\"js-poster-img c-article-media__img\" src=\"https:\/\/images.euronews.com\/articles\/stories\/09\/76\/02\/65\/1536x864_cmsv2_f0b802f7-3045-52c3-b449-0fc4c510f1a0-9760265.jpg\" width=\"1536\" height=\"864\" loading=\"eager\" alt=\"Spain's Prime Minister Pedro Sanchez speaks during a session at Parliament in Madrid, Spain, Wednesday June 30, 2021. \"><\/div>\n<div class=\"c-article-caption u-position-absolute\"><i id=\"article-caption-content\" class=\"c-article-caption__content\"><span class=\"c-article-caption__text\"><br \/>\n              Spain&#8217;s Prime Minister Pedro Sanchez speaks during a session at Parliament in Madrid, Spain, Wednesday June 30, 2021.<br \/>\n                    <span class=\"u-color-white\">&#8211;\u00a0<\/span><span class=\"c-article-caption__copyright\">Copyright\u00a0<\/span><span class=\"c-article-caption__credit\">AP Photo\/Susana Vera<\/span><\/span><\/i><\/div>\n<div class=\"c-article-image-copyright c-article-image-copyright--novideo\">\n      Copyright\u00a0AP Photo\/Susana Vera\n  <\/div>\n<\/div>\n<\/header>\n<div class=\"h-grid o-article-newsy__main__body u-article-content\">\n<div class=\"o-article-newsy__contributors-publication-date\">\n<div class=\"c-article-contributors\">\n  By&amp;nbspLuca Bertuzzi&amp;nbsp&amp;&amp;nbspMaria Tadeo\n<\/div>\n<div class=\"c-article-publication-date\" data-timestamp=\"1778861219\">\n                    Published on                 <time datetime=\"2026-05-15 18:06:59 +02:00\">15\/05\/2026 &#8211; 18:06 GMT+2<\/time><span class=\"c-article-publication-date__bullet\">\u2022<\/span>Updated<br \/>\n                                     <time datetime=\"18:58\">18:58<\/time><\/div>\n<\/div>\n<div class=\"c-article-partage-commentaire u-align-items-center u-display-flex\"><span class=\"c-article-partage-commentaire__links u-align-items-center u-display-flex u-justify-content-center js-c-article-partage-commentaire-share\"><span>Share<\/span><\/span><span>Comments<\/span><\/div>\n<div class=\"c-article-partage-commentaire-popup-overlay js-c-article-partage-commentaire-popup-overlay u-display-none\">\n<div id=\"js-c-article-partage-commentaire-popup\" class=\"c-article-partage-commentaire-popup js-c-article-partage-commentaire-popup\">\n<div class=\"c-article-partage-commentaire-popup__header u-display-flex\"><span>Share<\/span><img decoding=\"async\" src=\"https:\/\/static.euronews.com\/website\/images\/vector\/icon-close.svg\" width=\"24\" height=\"24\" alt=\"Close Button\" class=\"u-cursor-pointer 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decoding=\"async\" src=\"https:\/\/static.euronews.com\/website\/images\/vector\/social-icons\/article-redesign-whatsapp.svg\" width=\"24\" height=\"24\" alt=\"whatsapp\" loading=\"lazy\"><span>Whatsapp<\/span><\/span><img decoding=\"async\" src=\"https:\/\/static.euronews.com\/website\/images\/vector\/social-icons\/article-redesign-whatsapp.svg\" width=\"48\" height=\"48\" alt=\"whatsapp\" class=\"u-show-for-desktop\" loading=\"lazy\"><\/div>\n<\/div>\n<\/div>\n<\/div>\n<h2 class=\"c-article-summary\">\n        Spain is at the centre of a political storm after conservative politicians across Europe accused Madrid of using EU money to pay for pensions. Madrid denies it but the damage may be done as tough budget talks get underway.<br \/>\n    <\/h2>\n<div class=\"c-article-content js-article-content\">\n<p>The Spanish government is seeking to contain a scandal linked to EU pandemic funds, categorically denying that it used European money to pay pensions, as member states prepare for tough budget talks amid deep divisions over how funding should be allocated.<\/p>\n<div>\n<div class=\"c-ad u-show-for-mobile-only\">\n<div class=\"c-ad__placeholder\"><img decoding=\"async\" class=\"c-ad__placeholder__logo\" src=\"https:\/\/static.euronews.com\/website\/images\/logos\/logo-euronews-stacked-outlined-72x72-grey-9.svg\" width=\"72\" height=\"72\" alt loading=\"lazy\"><span>ADVERTISEMENT<\/span><\/div>\n<\/div>\n<div class=\"c-ad u-show-for-desktop\">\n<div class=\"c-ad__placeholder\"><img decoding=\"async\" class=\"c-ad__placeholder__logo\" src=\"https:\/\/static.euronews.com\/website\/images\/logos\/logo-euronews-stacked-outlined-72x72-grey-9.svg\" width=\"72\" height=\"72\" alt loading=\"lazy\"><span>ADVERTISEMENT<\/span><\/div>\n<\/div>\n<\/div>\n<p>An official in Madrid with direct knowledge of how EU funds are structured told Euronews that a technical matter is being instrumentalised in a way that is \u201csimply false\u201d, accusing the opposition of playing politics over what it describes as an accounting issue.<\/p>\n<p>A Spanish budget watchdog reported earlier this month that the government of Pedro S\u00e1nchez used budget credits linked to the EU\u2019s Recovery and Resilience Facility (RRF), an economic plan partly funded through common debt designed to revitalise the bloc\u2019s economy after Covid, to partly finance Spanish pensions in November 2024.<\/p>\n<p>Madrid insists it did not breach the rules.<\/p>\n<p>The European Commission asked Madrid for clarification after initial newspaper reports, according to a person familiar with the matter. It did not issue a follow-up request once Madrid provided an explanation, and Spanish authorities consider the issue closed.<\/p>\n<p>However, the political scandal lingers, even as Madrid insists that \u201cnot a single euro\u201d of EU money has been misused, amid backlash in so-called frugal countries. Spain and Italy were the biggest beneficiaries of the \u20ac750 billion recovery fund approved in summer 2020 after difficult talks. <\/p>\n<p>In Madrid, the opposition People\u2019s Party has demanded that S\u00e1nchez appear before Congress to explain the matter. The issue is also making waves in the European Parliament, with strong reactions from conservative lawmakers.<\/p>\n<p>&#8220;If these allegations are confirmed, we are facing a serious abuse of European taxpayers&#8217; money,&#8221; wrote Tom\u00e1\u0161 Zdechovsk\u00fd (Czechia\/EPP), an influential centre-right member of the European Parliament&#8217;s budgetary committee, on X. &#8220;Europe cannot tolerate any misuse of recovery funds.&#8221;<\/p>\n<p>&#8220;Is \u20ac10 billion in EU funds, intended for recovery after the pandemic, quietly being used to help pay Spanish pensions? It would confirm our worst fears about these funds,&#8221; said Dirk Gotink (The Netherlands\/EPP).<\/p>\n<p>Madrid sources insist the issue is being overblown for political purposes. <\/p>\n<p>A government official pointed to the country\u2019s economic performance and pushed back against the frugal-versus-south narrative, which often presents the wealthier north subsidising the weaker south. &#8220;Spain is the fastest growing economy in Europe, Germany is not paying our pensions,&#8221; said a second Madrid official. <\/p>\n<p>The incident does, however, underscore the additional complications the country is facing due to its inability to approve a budget in a fragmented parliament. After failing to deliver a fresh budget for 2025, Madrid was forced to roll over a plan approved in 2023.<\/p>\n<h2><strong>A fight over the EU&#8217;s financial future<\/strong><\/h2>\n<p>The timing of the controversy is particularly sensitive. <\/p>\n<p>Brussels is preparing to launch negotiations on the next Multiannual Financial Framework (MFF), the EU&#8217;s seven-year budget for 2028\u20132034, and a central question will be what to do with the roughly \u20ac750 billion in joint debt accumulated through the recovery plan.<\/p>\n<p>That programme was the largest and most politically consequential collective borrowing exercise in EU history. Whether it is ultimately seen as a success or a cautionary tale will inevitably shape how member states approach future proposals for shared financing.<\/p>\n<p>Spain, the second-largest recipient of the initiative&#8217;s funding with a total of around \u20ac60 billion already received, has been among the most vocal advocates for an ambitious European budget and a permanent mechanism to pool financing needs. <\/p>\n<p>Spanish Finance Minister Carlos Cuerpo has argued that pooling national debt at the EU level could generate annual savings of up to \u20ac25 billion. <\/p>\n<p>Cuerpo, who is now S\u00e1nchez\u2019s number two in government, echoed remarks made by France, Mario Draghi and a number of European intellectuals calling for a more efficient borrowing mechanism that would allow the EU to tap into the European Commission\u2019s triple-A rating and lower financing costs for all 27 member states.<\/p>\n<p>While the European Commission&#8217;s current budget proposal does not include new borrowing, contentious debate lies ahead over how to finance the repayment of existing recovery debt. Frugal northern countries like the Netherlands and Germany favour strict repayment schedules, even if that means cuts to other spending programmes.<\/p>\n<p>On Thursday, German Chancellor Friedrich Merz reiterated his country\u2019s opposition, even if the German central bank has been more nuanced about the benefits and risks of pooling debt.<\/p>\n<p>Southern member states, including France and Greece, are pushing to roll over the debt accumulated during the pandemic, with President Emmanuel Macron describing calls for early repayments as \u201cidiotic\u201d. Paris is an advocate of a European safe-asset mechanism.<\/p>\n<p>A European official supportive of the plan said the Spanish controversy is being weaponised not so much against Madrid, but against proposals put forward by southern countries ahead of the budget talks.<\/p>\n<p>&#8220;I wouldn&#8217;t be surprised if this is used to kill rollover proposal,&#8221; the diplomat said.<\/p>\n<p>The issue of the next European budget will feature in an EU summit scheduled in June. <\/p>\n<\/div>\n<p>                                  Go to accessibility shortcuts<\/p>\n<div class=\"c-article-partage-commentaire u-align-items-center u-display-flex\"><span class=\"c-article-partage-commentaire__links u-align-items-center u-display-flex u-justify-content-center js-c-article-partage-commentaire-share\"><span>Share<\/span><\/span><span>Comments<\/span><\/div>\n<div id=\"adb-article-you-might-also-like\" class=\"perf-cv-auto c-article-you-might-also-like\">\n<h2 class=\"c-article-you-might-also-like__title\">\n        Read more<br \/>\n      <\/h2>\n<div class=\"c-article-you-might-also-like__item\">\n<h3>\n<p>                  Merz doubles down on opposition to \u2018Draghi-style\u2019 common debt proposal<\/p>\n<\/h3>\n<\/div>\n<div class=\"c-article-you-might-also-like__item\">\n<h3>\n<p>                  EU must become a &#8216;genuine federation&#8217; to avoid deindustrialisation and decline, Draghi says<\/p>\n<\/h3>\n<\/div>\n<div class=\"c-article-you-might-also-like__item\">\n<h3>\n<p>                  Draghi to join EU leaders at retreat to boost competitiveness, Costa tells Euronews<\/p>\n<\/h3>\n<\/div>\n<\/div>\n<div class=\"perf-cv-auto\">\n<ul id=\"adb-article-tags\" class=\"c-tags-list\">\n<li class=\"c-tags-list__item\">\n<section class=\"tc-cta\" data-twig-component=\"Cta-default\">\n  Spain<br \/>\n<\/section>\n<\/li>\n<li class=\"c-tags-list__item\">\n<section class=\"tc-cta\" data-twig-component=\"Cta-default\">\n  European Union<br \/>\n<\/section>\n<\/li>\n<li class=\"c-tags-list__item\">\n<section class=\"tc-cta\" data-twig-component=\"Cta-default\">\n  Pedro S\u00e1nchez<br \/>\n<\/section>\n<\/li>\n<\/ul>\n<\/div>\n<\/div>\n<\/div>\n<aside class=\"o-article-newsy__aside\">\n<div class=\"c-ad-wrapper o-article-newsy__aside__content-1\" data-ad-name=\"adzone-halfpage\">\n<div class=\"c-ad c-ad-halfpage u-show-for-desktop\">\n<div class=\"c-ad__placeholder\"><img loading=\"lazy\" decoding=\"async\" class=\"c-ad__placeholder__logo\" src=\"https:\/\/static.euronews.com\/website\/images\/logos\/logo-euronews-stacked-outlined-72x72-grey-9.svg\" width=\"72\" height=\"72\" alt><span>ADVERTISEMENT<\/span><\/div>\n<\/div>\n<div class=\"c-ad u-show-for-mobile-only\">\n<div class=\"c-ad__placeholder\"><img loading=\"lazy\" decoding=\"async\" class=\"c-ad__placeholder__logo\" src=\"https:\/\/static.euronews.com\/website\/images\/logos\/logo-euronews-stacked-outlined-72x72-grey-9.svg\" width=\"72\" height=\"72\" alt><span>ADVERTISEMENT<\/span><\/div>\n<\/div>\n<\/div>\n<div id=\"adb-article-top-stories\" class=\"perf-cv-auto c-top-stories\">\n<h2 class=\"c-top-stories__title\">Top stories<\/h2>\n<div class=\"c-top-stories__item\">\n<article id=\"abe-2893911-pos2-top-stories\" class=\"the-media-object m-modeMobile-2 m-modeDesktop-2 m-modeXL-2 the-media-object--has-video the-media-object--no-label\" data-nid=\"2893911\" data-cid=\"9759527\" data-part-label=\"Partner content\">\n<figure id=\"abe-2893911-label-pos2-top-stories\" class=\"the-media-object__figure\"><img decoding=\"async\" class=\"the-media-object__image\" src=\"https:\/\/images.euronews.com\/articles\/stories\/09\/75\/95\/27\/320x180_cmsv2_8c8612ca-5218-5776-9854-1d3a822f86a5-9759527.jpg\" loading=\"lazy\" alt=\"The special tribunal aims to bring Vladimir Putin to trial.\" height=\"9\" width=\"16\"><\/figure>\n<div class=\"the-media-object__content\">\n<h3 class=\"the-media-object__title  \">\n<p>    &#8216;Point of no return&#8217;: 36 countries join tribunal to prosecute Putin<br \/>\n  <\/h3>\n<\/div>\n<\/article>\n<\/div>\n<div class=\"c-top-stories__item\">\n<article id=\"abe-2893931-pos3-top-stories\" class=\"the-media-object m-modeMobile-2 m-modeDesktop-2 m-modeXL-2 the-media-object--no-label\" data-nid=\"2893931\" data-cid=\"9759670\" data-part-label=\"Partner content\">\n<figure id=\"abe-2893931-label-pos3-top-stories\" class=\"the-media-object__figure\"><img decoding=\"async\" class=\"the-media-object__image\" src=\"https:\/\/images.euronews.com\/articles\/stories\/09\/75\/96\/20\/320x180_cmsv2_f38f6894-cac7-52ab-8677-dba3b46b6398-9759620.jpg\" loading=\"lazy\" alt=\"US President Donald Trump boards Air Force One, Friday, May 15, 2026, at Beijing Capital International Airport in Beijing. (AP Photo\/Mark Schiefelbein)\" height=\"9\" width=\"16\"><\/figure>\n<div class=\"the-media-object__content\">\n<h3 class=\"the-media-object__title  \">\n<p>    Underwhelming summit outcome in China brings Trump back to reality<br \/>\n  <\/h3>\n<\/div>\n<\/article>\n<\/div>\n<div class=\"c-top-stories__item\">\n<article id=\"abe-2893900-pos4-top-stories\" class=\"the-media-object m-modeMobile-2 m-modeDesktop-2 m-modeXL-2 the-media-object--no-label\" data-nid=\"2893900\" data-cid=\"9759454\" data-part-label=\"Partner content\">\n<figure id=\"abe-2893900-label-pos4-top-stories\" class=\"the-media-object__figure\"><img decoding=\"async\" class=\"the-media-object__image\" src=\"https:\/\/images.euronews.com\/articles\/stories\/09\/75\/94\/54\/320x180_cmsv2_8849f035-5b73-5e9e-a87d-aaf590db9534-9759454.jpg\" loading=\"lazy\" alt=\"German Chancellor Friedrich Merz speaks at the 23rd Ordinary Federal Congress of the German Trade Union Confederation (DGB) in Berlin, Germany, Tuesday; May 12, 2026.\" height=\"9\" width=\"16\"><\/figure>\n<div class=\"the-media-object__content\">\n<h3 class=\"the-media-object__title  \">\n<p>    Merz doubles down on opposition to \u2018Draghi-style\u2019 common debt proposal<br \/>\n  <\/h3>\n<\/div>\n<\/article>\n<\/div>\n<div class=\"c-top-stories__item\">\n<article id=\"abe-2893745-pos5-top-stories\" class=\"the-media-object m-modeMobile-2 m-modeDesktop-2 m-modeXL-2 the-media-object--no-label\" data-nid=\"2893745\" data-cid=\"9758827\" data-part-label=\"Partner content\">\n<figure id=\"abe-2893745-label-pos5-top-stories\" class=\"the-media-object__figure\"><img decoding=\"async\" class=\"the-media-object__image\" src=\"https:\/\/images.euronews.com\/articles\/stories\/09\/75\/88\/27\/320x180_cmsv2_3b814029-61f0-5003-9146-0089fabb9cd5-9758827.jpg\" loading=\"lazy\" alt=\"High voltage power lines are pictured outside Strasbourg, eastern France, Wednesday, Jan. 18, 2017. \" height=\"9\" width=\"16\"><\/figure>\n<div class=\"the-media-object__content\">\n<h3 class=\"the-media-object__title  \">\n<p>    Five countries push back against Commission&#8217;s electric grid plans<br \/>\n  <\/h3>\n<\/div>\n<\/article>\n<\/div>\n<div class=\"c-top-stories__item\">\n<article id=\"abe-2893989-pos6-top-stories\" class=\"the-media-object m-modeMobile-2 m-modeDesktop-2 m-modeXL-2 the-media-object--no-label\" data-nid=\"2893989\" data-cid=\"9760077\" data-part-label=\"Partner content\">\n<figure id=\"abe-2893989-label-pos6-top-stories\" class=\"the-media-object__figure\"><img decoding=\"async\" class=\"the-media-object__image\" src=\"https:\/\/images.euronews.com\/articles\/stories\/09\/76\/00\/77\/320x180_cmsv2_8955d2ad-3068-5a99-965a-7d2c488cc1f0-9760077.jpg\" loading=\"lazy\" alt=\"AP\" height=\"9\" width=\"16\"><\/figure>\n<div class=\"the-media-object__content\">\n<h3 class=\"the-media-object__title  \">\n<p>    Norway confirms move to cancel missile system sale to Malaysia<br \/>\n  <\/h3>\n<\/div>\n<\/article>\n<\/div>\n<\/div>\n<div class=\"perf-cv-auto c-ad-wrapper o-article-newsy__aside__content-2\" data-ad-name=\"adzone-halfpage\">\n<div class=\"c-ad c-ad-halfpage u-show-for-desktop\">\n<div class=\"c-ad__placeholder\"><img loading=\"lazy\" decoding=\"async\" class=\"c-ad__placeholder__logo\" src=\"https:\/\/static.euronews.com\/website\/images\/logos\/logo-euronews-stacked-outlined-72x72-grey-9.svg\" width=\"72\" height=\"72\" alt><span>ADVERTISEMENT<\/span><\/div>\n<\/div>\n<div class=\"c-ad u-show-for-mobile-only\">\n<div class=\"c-ad__placeholder\"><img loading=\"lazy\" decoding=\"async\" class=\"c-ad__placeholder__logo\" src=\"https:\/\/static.euronews.com\/website\/images\/logos\/logo-euronews-stacked-outlined-72x72-grey-9.svg\" width=\"72\" height=\"72\" alt><span>ADVERTISEMENT<\/span><\/div>\n<\/div>\n<\/div>\n<div class=\"perf-cv-auto c-most-viewed\">\n<h2 class=\"c-most-viewed__title qa-section-title\">Most read<\/h2>\n<div 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President Donald Trump boards Air Force One, Friday, May 15, 2026, at Beijing Capital International Airport in Beijing. 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class=\"the-media-object__title  \">\n<p>    Russia&#8217;s prison population falls by 180,000 since start of Ukraine war<br \/>\n  <\/h3>\n<\/div>\n<\/article>\n<article id=\"abe-2893810-pos4-mostViewed\" class=\"the-media-object m-modeMobile-3 m-modeDesktop-3 m-modeXL-3 the-media-object--has-video the-media-object--no-label\" data-nid=\"2893810\" data-cid=\"9759111\" data-part-label=\"Partner content\">\n<div class=\"the-media-object__content\">\n<h3 class=\"the-media-object__title  \">\n<p>    Trump and Xi wrap up summit claiming progress in stabilising ties<br \/>\n  <\/h3>\n<\/div>\n<\/article>\n<article id=\"abe-2893631-pos5-mostViewed\" class=\"the-media-object m-modeMobile-3 m-modeDesktop-3 m-modeXL-3 the-media-object--no-label\" data-nid=\"2893631\" data-cid=\"9758250\" data-part-label=\"Partner content\">\n<div class=\"the-media-object__content\">\n<h3 class=\"the-media-object__title  \">\n<p>    Ship taken near UAE coast headed for Iranian waters, UK agency says<br \/>\n  <\/h3>\n<\/div>\n<\/article>\n<div class=\"articleBody\" data-key=\"articleBody\">The Spanish government is seeking to contain a scandal linked to EU pandemic funds, categorically denying that it used European money to pay pensions, as member states prepare for tough budget talks amid deep divisions over how funding should be allocated.An official in Madrid with direct knowledge of how EU funds are structured told Euronews that a technical matter is being instrumentalised in a way that is \u201csimply false\u201d, accusing the opposition of playing politics over what it describes as an accounting issue.A Spanish budget watchdog reported earlier this month that the government of Pedro S\u00e1nchez used budget credits linked to the EU\u2019s Recovery and Resilience Facility (RRF), an economic plan partly funded through common debt designed to revitalise the bloc\u2019s economy after Covid, to partly finance Spanish pensions in November 2024.Madrid insists it did not breach the rules.The European Commission asked Madrid for clarification after initial newspaper reports, according to a person familiar with the matter. It did not issue a follow-up request once Madrid provided an explanation, and Spanish authorities consider the issue closed.However, the political scandal lingers, even as Madrid insists that \u201cnot a single euro\u201d of EU money has been misused, amid backlash in so-called frugal countries. Spain and Italy were the biggest beneficiaries of the \u20ac750 billion recovery fund approved in summer 2020 after difficult talks.In Madrid, the opposition People\u2019s Party has demanded that S\u00e1nchez appear before Congress to explain the matter. The issue is also making waves in the European Parliament, with strong reactions from conservative lawmakers.&#8221;If these allegations are confirmed, we are facing a serious abuse of European taxpayers&#8217; money,&#8221; wrote Tom\u00e1\u0161 Zdechovsk\u00fd (Czechia\/EPP), an influential centre-right member of the European Parliament&#8217;s budgetary committee, on X. &#8220;Europe cannot tolerate any misuse of recovery funds.&#8221;&#8221;Is \u20ac10 billion in EU funds, intended for recovery after the pandemic, quietly being used to help pay Spanish pensions? It would confirm our worst fears about these funds,&#8221; said Dirk Gotink (The Netherlands\/EPP).Madrid sources insist the issue is being overblown for political purposes.A government official pointed to the country\u2019s economic performance and pushed back against the frugal-versus-south narrative, which often presents the wealthier north subsidising the weaker south. &#8220;Spain is the fastest growing economy in Europe, Germany is not paying our pensions,&#8221; said a second Madrid official.The incident does, however, underscore the additional complications the country is facing due to its inability to approve a budget in a fragmented parliament. After failing to deliver a fresh budget for 2025, Madrid was forced to roll over a plan approved in 2023.A fight over the EU&#8217;s financial futureThe timing of the controversy is particularly sensitive.Brussels is preparing to launch negotiations on the next Multiannual Financial Framework (MFF), the EU&#8217;s seven-year budget for 2028\u20132034, and a central question will be what to do with the roughly \u20ac750 billion in joint debt accumulated through the recovery plan.That programme was the largest and most politically consequential collective borrowing exercise in EU history. Whether it is ultimately seen as a success or a cautionary tale will inevitably shape how member states approach future proposals for shared financing.Spain, the second-largest recipient of the initiative&#8217;s funding with a total of around \u20ac60 billion already received, has been among the most vocal advocates for an ambitious European budget and a permanent mechanism to pool financing needs.Spanish Finance Minister Carlos Cuerpo has argued that pooling national debt at the EU level could generate annual savings of up to \u20ac25 billion.Cuerpo, who is now S\u00e1nchez\u2019s number two in government, echoed remarks made by France, Mario Draghi and a number of European intellectuals calling for a more efficient borrowing mechanism that would allow the EU to tap into the European Commission\u2019s triple-A rating and lower financing costs for all 27 member states.While the European Commission&#8217;s current budget proposal does not include new borrowing, contentious debate lies ahead over how to finance the repayment of existing recovery debt. Frugal northern countries like the Netherlands and Germany favour strict repayment schedules, even if that means cuts to other spending programmes.On Thursday, German Chancellor Friedrich Merz reiterated his country\u2019s opposition, even if the German central bank has been more nuanced about the benefits and risks of pooling debt.Southern member states, including France and Greece, are pushing to roll over the debt accumulated during the pandemic, with President Emmanuel Macron describing calls for early repayments as \u201cidiotic\u201d. Paris is an advocate of a European safe-asset mechanism.A European official supportive of the plan said the Spanish controversy is being weaponised not so much against Madrid, but against proposals put forward by southern countries ahead of the budget talks.&#8221;I wouldn&#8217;t be surprised if this is used to kill rollover proposal,&#8221; the diplomat said.The issue of the next European budget will feature in an EU summit scheduled in June.<\/div>\n<p>[analyse_source url=&#8221;https:\/\/www.euronews.com\/my-europe\/2026\/05\/15\/spanish-row-over-eu-cash-fuels-northsouth-tensions-ahead-of-tough-budget-talks&#8221;]<\/p>\n","protected":false},"excerpt":{"rendered":"<p>[analyse_image type=&#8221;featured&#8221; src=&#8221;https:\/\/images.euronews.com\/articles\/stories\/09\/76\/02\/65\/1200x675_cmsv2_f0b802f7-3045-52c3-b449-0fc4c510f1a0-9760265.jpg&#8221;] Europe News Hungarian roads may be contaminated with asbestos Culture news Pompeii: A doctor identified thanks to his instruments Europe News Norway confirms move to cancel missile system sale to Malaysia Top News Stories Today Latest news bulletin | May 15th, 2026 \u2013 Evening Europe News Hungarian roads may be contaminated with [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[90],"tags":[226,36],"class_list":["post-1937430","post","type-post","status-publish","format-standard","hentry","category-international","tag-crawlmanager","tag-euronews-com"],"_links":{"self":[{"href":"https:\/\/analyse.optim.biz\/index.php?rest_route=\/wp\/v2\/posts\/1937430","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/analyse.optim.biz\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/analyse.optim.biz\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/analyse.optim.biz\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/analyse.optim.biz\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1937430"}],"version-history":[{"count":0,"href":"https:\/\/analyse.optim.biz\/index.php?rest_route=\/wp\/v2\/posts\/1937430\/revisions"}],"wp:attachment":[{"href":"https:\/\/analyse.optim.biz\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1937430"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/analyse.optim.biz\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1937430"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/analyse.optim.biz\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1937430"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}