MNI BRIEF: Gentiloni Warns 2026 Strict Deadline For NGEU Funds

The 2026 deadline for European Union countries to spend NextGenerationEU funds is a “strict one,” Economy Commissioner Paolo Gentiloni said on Thursday, warning that the Covid aid programme's final years would be more challenging.

Spain must accelerate implementation of its EUR163 billion NextGenEU plans, potentially boosting GDP by 3.5% by 2025, Gentiloni said in a speech in Madrid, adding that success for the country's programme could influence the chances of future EU joint borrowing. (See MNI: Italy Faces Tough Deadlines For NextGenEU Cash-Officials)

“We know the challenges involved, especially when it comes to absorbing such massive sums,” he said.

Spanish Finance Minister Carlos Cuerpo said earlier this week Madrid will only qualify for part of its next EUR10 billion NextGenEU payment. Thursday’s decision by Prime Minister Pedro Sanchez not to approve the 2024 budget could add further hurdles.

Gentiloni supports further EU borrowing, but lacks backing outside the bloc's south.