The Ministry of Finance justifies the use of “surplus” credits from European funds to finance pensions in 2024 and affirms that it has “clear legal support”, after the doubts raised by the Court of Auditors in the General State Account.
The supervisory body detected incidents in the use of 2,389.4 million euros of these resources, intended for the payment of pensions for passive classes and minimum supplements, a practice that will also be analyzed by the European Commission.
The Treasury uncovers the improper collection of the Minimum Living Income by reviewing the income of a beneficiary and detecting income higher than the allowed limit
CSIF mobilizes in the middle of the Income campaign: “the workforce is overwhelmed and at its limit”
With these allegations on the table, the Treasury maintains its position and affirms that its actions are framed in current regulations and in the necessary adaptation after the extension of the General State Budgets of 2023. In its arguments, the department highlights that the budget law allows credit transfers between different items, including those linked to European funds, with the aim of ensuring their correct execution.
There is a “disconnect” between the funds received and their application
The ministry now headed by Arcadi Spain also defends itself by clarifying that the Recovery Plan is multi-year and that disbursements from Brussels depend on the fulfillment of milestones and objectives, not on the specific expenditure executed. This circumstance, he points out, generates a “disconnection” between the funds received and their annual budget application, which opens room for redistributing resources within legal limits.
The origin of the controversy is in the management of the credits available after the budget extension. Since new accounts were not approved for 2024, the Government adapted the items inherited from 2023 to the needs of the new year. This adjustment allowed 4,528 million euros to emerge in surplus credits, coming mainly from the ministries of Industry, Housing and Education.
A part of these funds was destined to finance the minimum pension supplement, with 667 million, and to expand the provision of the passive classes by another 1,722 million, according to the Treasury. The department insists that these modifications had favorable reports and were carried out through established budgetary procedures, without allocating expenses not directly related to European funds.
The debate, however, goes beyond the technical and points to something deeper about the use of resources from the European recovery mechanism, designed to boost investments and structural reforms after the pandemic. The review announced by the European Commission introduces an additional element of uncertainty regarding the interpretation of these rules and their application by Member States.
Pending this analysis, the Government defends that its actions comply with current legislation, while the Court of Auditors maintains its reservations about a practice that reopens the discussion on the limits in the management of community funds and their possible use to finance current spending.