Europe's recovery plan closes on 31 August as inflation in Madrid hits 4.3 per cent
The European recovery plan's spending deadline falls on 31 August. Officials in Madrid say no new spending can be booked from Monday; Spain's allocation reached 140 billion euros. In the same week INE's flash reading lifted August inflation to an annual 4.3 per cent as fuel prices reversed last year's fall.
Economics & Markets··Evening
The spending books close on 31 August
The European recovery plan built after the pandemic reaches its spending deadline on 31 August. Manolo de la Rocha, who runs the Economic Affairs and G-20 Office at La Moncloa, says that from Monday not one more screw can be fitted. Spain's share came to 140,000 million euros, of which 80,000 million euros were non-repayable grants. The plan's real novelty was an incentive structure in which the receiving states designed their own reform agendas, and joint borrowing on behalf of all 27 countries.[1]
The model was built from scratch as the next budget debate opens
Mercedes Caballero, secretary-general for European Funds at the finance ministry, describes building from scratch a model with no prior experience in any member state or in the European Commission, starting with a team of five. Teresa Ribera, vice-president of the European Commission, argues that the idea of common protection through common funds should carry into the next European budget.[1]
August inflation jumped to 4.3 per cent
INE's flash consumer price indicator rose to an annual 4.3 per cent in August, seven tenths of a point above July, with a monthly increase of 0.7 per cent. The harmonised measure used across the European Union came in at an annual 4.5 per cent and a monthly 0.6 per cent. The core measure, which leaves out unprocessed food and energy, eased a tenth to 2.9 per cent; INE names fuel and lubricant prices for personal vehicles, which rose this August after falling in August 2025.[2]
