Rejection of State Accounts 2024: €2.389M in European funds misused and what it means for companies

Key data

Spain has gone years without approving new General State Budgets, violating article 134.3 of the Constitution, and now the General Courts themselves have rejected the accounts for fiscal year 2024. It is not a minor formality: the formal rejection of the opinion by the Joint Congress-Senate Committee, published in the Official State Gazette of November 9, 2026, reflects structural financial deterioration with direct consequences on budget transparency, public spending control, and future access to European funds.

What does this regulation establish?

The Joint Committee for Relations with the Court of Auditors has issued an opinion of rejection of the Declaration on the State General Account for fiscal year 2024. The opinion is returned to the Court of Auditors to note the parliamentary observations. The specific reasons for rejection are as follows:

The Recovery and Resilience Mechanism (MRR) is the central instrument of the Next Generation EU program, designed to finance investments and reforms that drive economic recovery and green and digital transition. Its use to cover current expenses such as pensions contravenes the eligibility conditions established by the European Commission and may compromise the traceability of the funds.

Economic and operational impact

This parliamentary rejection is not just a political pronouncement: it has concrete economic and operational implications for the private sector and for any company that operates with or aspires to operate with European public funds.

• Risk to Next Generation EU funds: If the European Commission detects that MRR credits have been used for non-eligible expenses (such as pensions), it may require the return of those funds or block the disbursement of future tranches. This directly affects calls for subsidies, PERTE projects and public procurement financed with these funds.
• Prolonged budget uncertainty: The absence of new budgets means that the State operates with extended budgets, which limits its capacity to launch new calls for aid, public contracts and investment programs.
• Financial cost of debt: A debt interest burden of €32.362 million in 2024 represents growing pressure on public spending available for productive investment, reducing the margin for new business support policies.
• Negative net equity: The deterioration of the State's balance sheet increases the sovereign risk perceived by markets, with possible impact on the cost of public debt financing and, by extension, on domestic market interest rates.

Who does it affect?

• General State Administration: Required to respond to the Court of Auditors and justify the use of questioned MRR funds.
• State public sector: Organizations, agencies and entities that manage or execute European funds from the Recovery Plan.
• Companies benefiting from Next Generation EU funds: Any company that has received or is pending receipt of subsidies, loans or contracts financed with MRR funds may see the availability or traceability of those funds affected.
• Companies bidding on public contracts: Budget uncertainty and possible blocking of European funds may delay or cancel planned procurement processes.
• Tax and financial advisors: Must inform their clients about the risk of delays in calls and the status of ongoing European funds.
• Court of Auditors and General Courts: Direct recipients of the opinion, with an obligation to follow up on the observations made.

Practical example

A technology sector company that in 2024 obtained a €500,000 subsidy within a PERTE financed with Recovery and Resilience Mechanism funds should take the following into account:

If the European Commission, after learning of the rejection opinion from the Courts and the €2.389.4 million in MRR funds used for non-eligible expenses, opens a verification procedure, it could require Spain to provide detailed justification of all projects financed with MRR funds. This may result in:

• Delays in receiving pending subsidy tranches.
• Additional requirements for supporting documentation on the use of funds received.
• In extreme cases, obligation to reimburse if the project does not strictly comply with MRR eligibility criteria.

The company should already review its justification file and ensure that all documentation correctly proves the productive and investment use of the funds received, differentiating it from any current or operational expense.

What should companies do now?

1. Review the status of your Next Generation EU fund files: If your company is a beneficiary of subsidies or contracts financed with MRR funds, verify that the supporting documentation is complete and that the executed spending complies with the eligibility criteria of the Recovery and Resilience Mechanism.
2. Anticipate possible delays in public calls: The budget uncertainty resulting from the indefinite extension of the General State Budgets may delay the publication of new calls for aid and procurement. Adjust your cash flow forecasts and financial planning accordingly.
3. Consult with your advisor about the impact on ongoing projects: If you have projects pending resolution or in the justification phase with European funds, request a review of the traceability risk in light of this opinion.
4. Monitor European Commission decisions: Any pronouncement from Brussels on the use of MRR funds in Spain may have direct impact on the timelines and conditions of funds already granted. Keep alert to information on this matter.
5. Document any communication with managing bodies: If you receive additional requirements for justification of European funds, respond on time and keep all documentation organized for any potential audit.

Official source

Consult complete regulation in official source

Notice: This article is for informational purposes only and does not constitute legal advice. For specific decisions, consult a qualified professional. Source: https://www.boe.es/diario_boe/txt.php?id=BOE-A-2026-23477