Canary Islands at Risk of Losing Over €200 Million in EU Funds
The management of European funds in the Canary Islands has entered a critical phase. This is not only due to the high volume of resources still unspent—€578 million—but because an increasingly large portion of that money is already being lost. The archipelago has returned €54.7 million to the Spanish state, and the regional Ministry of Finance, led by Matilde Asián, forecasts that reimbursements will rise to €149.9 million in 2026. This figure highlights the real risk of losing key financing for economic transformation, totalling over €204 million.
A Race Against Time to Avoid Losing Funds
The scenario paints a picture of a cycle’s end marked by administrative urgency. The ministries with the largest budgets—particularly Ecological Transition and Housing—will be decisive in preventing the loss of resources. Consequently, attempts are being made to negotiate an extension with the Spanish state for the MMR funds allocated to Mariano Hernández Zapata’s ministry during a bilateral meeting scheduled for 10 April.
Furthermore, the Canary Islands’ own finance ministry, in an official report, stresses that failed or incomplete projects not only imply the return of funds but can also incur late payment interest. This would increase the negative impact on public coffers and push the total loss even higher than the €204 million figure.
Political Criticism and Government Defence
PSOE deputy Manuel Hernández was blunt in his assessment of the data, which he called “a missed opportunity in areas necessary for transforming the productive model and diversifying the economy.” He has not ruled out questioning Minister Asián in Parliament this month.
Despite the data provided by the Finance Ministry itself, Asián’s department does not convey any particular concern and downplays the potential reimbursement, assuring that it would be limited and manageable. They also argue that criticism regarding the level of execution is premature while the deadline, set for August, has not expired.
The thesis from Asián’s department is clear: the time for definitive assessments has not yet arrived, and while there is still room to certify expenditure, there is no reason to question the Canary Islands’ ability to absorb the funds. In other words, the return of a limited amount would not, for the finance ministry, be proof of poor management, but a relatively minor consequence within a programme of enormous administrative complexity and high demands.
“It is a pathetic and shameful attitude. They have not taken the execution of European funds seriously,” insists the socialist politician.
Breakdown of Forecasted Returns by Department
The official report breaks down the forecasted reimbursements by department, with particularly significant figures in strategic areas. The Ministry of Ecological Transition and Energy tops the list, with €51 million expected to be returned in 2026, followed by the Canary Islands Housing Institute (Icavi), with €42.5 million.
Also notable are the forecasts for the Ministry of Universities, Science and Innovation, which could return €16.6 million, and the Ministry of Finance and Relations with the European Union, with €10 million.
A second tier includes departments such as the Presidency, with €8.2 million forecasted, and Social Welfare, with €8 million, alongside Education, which contemplates returning an additional €4 million on top of the over €20 million already reimbursed.
For its part, the Canary Islands Health Service (SCS) expects to return €3.3 million, while the Canary Islands Institute for Equality (ICI) plans for €2.8 million and the Canary Islands Employment Service (SCE) a total of €1.8 million.
Other areas show smaller figures, such as Public Works (€538,823), Tourism and Employment (€375,342), Agriculture (€65,205), and Territorial Policy (€120,978).
A Problem of Failed Execution
The data reflects that the problem is not just one of delays, but of failed execution. Although the regional government plans to execute around €568 million in 2026, the volume of forecasted returns confirms that a substantial part of the funds will not translate into real investments.
“It is negligence by the current government, which has ignored the opposition’s warnings,” concludes Hernández.
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