Commission recommends Council recommendation on Spain’s policies

The European Commission has issued a Recommendation for a Council Recommendation on the economic, social, employment, structural and budgetary policies of Spain.

• Main action: The Commission published the 2026 country report for Spain on 3 June 2026 and hereby recommends that the Council adopt a Recommendation asking Spain to ensure net expenditure respects the maximum growth rates endorsed on 21 January 2025, while making use of the flexibility under the national escape clause for higher defence expenditure; it also calls to implement the set of reforms and investments underpinning the extended adjustment period (timelines and milestones linked to the 2025-2028 medium-term plan).
• Background and details: The Recommendation references GDP, deficit and debt metrics (Real GDP growth 2025: 2.8%; HICP inflation 2025: 2.7%), notes total extreme weather losses of EUR 119.6 billion (1980–2024), projects the fiscal cost of recent energy measures at ~0.3% of GDP in 2026 (0.6% if maintained to end-2026), and highlights concrete policy priorities including climate resilience, water management, energy storage and grid investments, and continuity of Recovery and Resilience Facility and cohesion policy implementation.