EU Warns Against Spain’s Plan to Restructure Pandemic Recovery Debt

Brussels is pushing back on Spain’s suggestion to stretch the repayment schedule for the EU’s pandemic recovery fund.

1. Spain wants to extend the loan term for the €600 billion fund, hoping to free up about €70 billion for its 2028‑2034 budget.
2. The European Commission says lengthening the schedule would increase the overall cost of the loan, according to a working paper seen by EL PAÍS.
3. Germany and other fiscally cautious members oppose the move, arguing it would strain the shared budget.
4. Negotiations for the 2028‑2034 EU budget are already tense, with member states taking firmer stances.

For now, the Spanish proposal remains on the back burner.