Overview

• The Commission approved a net fifth disbursement of nearly €23 billion after trimming €1.1 billion tied to missed diesel tax and digitalization targets.
• It flagged another €600 million for future suspension due to Spain’s rollback of public sector temporary employment measures following ECJ rulings.
• Funds for completed reforms continue to be released while payments related to outstanding milestones remain frozen pending further compliance evidence.
• A failed amendment in the Congress of Deputies halted the planned removal of diesel tax exemptions, stalling a key fiscal reform.
• Madrid must complete the remaining reforms by January 2026 to avoid losing the suspended €1.1 billion in recovery aid.