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Daniel Kral highlights that EU governments, including Spain, have allocated more Recovery and Resilience Facility (RRF) funds to current expenditure such as salaries and social benefits compared to direct investment.
He suggests this trend is not unique to Spain but is common across EU member states, referencing a quote from PM Chernomyrdin to underscore recurring outcomes despite optimistic expectations.
Kral previously noted that Greek, Cyprus, and Portuguese public debt ratios have sharply declined since end-2020. Growth and deficit dynamics in Southern European economies were also highlighted by Tomasz Wieladek, who pointed to a shift toward high growth and low deficits for PIIGS nations in the 2020s, with a contrast to trends in Germany and France. These developments provide context for the current debate on the use of RRF funds across the EU.