The tests that Pedro Sánchez will have to pass in Congress to receive the latest European funds

MadridAfter being launched more than five years ago, the European anti-pandemic funds are reaching their end, and consequently, so are the recovery plans that each member state had to develop. This August 2026 is the deadline for the various governments to fulfill their commitments to the European Commission. In fact, the Spanish government's request for the final disbursements of this European windfall will depend on this. But let's take it step by step. What are we talking about when we refer to successfully completing the race surrounding this exceptional mechanism approved in response to Covid-19?

To begin with, Spain has just approved, with the European Commission's approval, an addendum or modification to this plan with the intention of not leaving the work unfinished, given that the countdown has begun. Basically, the Spanish government has modified some of the reforms it had committed to, simplifying them or even discarding them altogether. It also declined to request all the loans to which it was eligible. Following this review process, approximately 230 goals and objectives remain to be met, upon which the arrival of the final European funds, both in the form of grants or transfers and loans, will depend. If all issues are resolved, Spain will receive around €31 billion in European funds in 2026. Of that money, €6.2 billion forms part of the first payment in the form of grants, which Spain plans to request in 2026, if all goes well this summer. This allocation is linked to the achievement of 69 goals and objectives. The remaining grant funds (€20.93 billion) depend on meeting 124 goals and objectives. Regarding the loans, these will also be requested in two separate payments: one for €1.1 billion and the other for €5.6 billion, according to data from the Ministry of Economy. 230 pending goals and objectives

However, some of these 230 targets and objectives are legislative changes, meaning reforms that will require parliamentary approval, which complicates matters. The current parliamentary weakness, marked by the fragile relationship between the coalition government and the parties that enabled its investiture—including Junts, with whom dialogue is currently broken—poses an obstacle to meeting Brussels' demands. In fact, part of this simplification has involved reviewing the legislation that needed to pass the Spanish lower house. For example, the approval of the land law, which the Spanish government had been trying to push through for months, even seeking the support of the People's Party (PP), has been discarded as a commitment. Now, Pedro Sánchez's administration has replaced this reform with the approval of Casa 47, the new state-owned public housing company. The law establishing the Financial Consumer Protection Authority has also been dropped, despite being one of the Ministry of Economy's flagship measures.

But which reforms have the force of law and will require congressional approval?

To begin with, the Spanish government remains committed to approving equal tax treatment for diesel and gasoline. In fact, Brussels has been demanding this for some time. This will mean that diesel will no longer be taxed less than gasoline. The Ministry of Finance already attempted to pass this change as part of the tax reform that was approved in 2024. but it failed due to Podemos's vote against itThis year, 2026, they will have to try again.

The sustainable mobility law, which Congress has already ratified, will also remain in place, as will the law on food loss and waste. However, it will also be necessary to approve the statutes of the new public evaluation body; the law on transparency and integrity of the activities of interest groups—popularly known as the law that should regulate the role of lobbyists—; a reform of the securities market law; and a review of some of Spain's current tax benefits.

"A fundamental element on the part of the European Commission was to maintain a high level of pragmatism in ensuring that these reforms can be implemented on time and in the proper manner so that by the summer of 2026 we can guarantee the fulfillment of these major transformative plans," acknowledged the Ministry of Economy, under its leadership. In total, if Pedro Sánchez's plans are implemented, the State will have accessed €103 billion over five years, representing more than 6% of current GDP. Of that amount, €80 billion will have been in the form of transfers and €22 billion in loans.