Spain's Rail Funding for Morocco Sparks Domestic Debate

Spain's government faces growing criticism for allocating over 1.5 billion euros in public loans to fund rail projects in Morocco, Egypt, and Uzbekistan since 2018, while domestic rail infrastructure remains underfunded. This debate was reignited by a recent train collision in Toledo, Spain.

The Spanish government has directed substantial funds towards modernizing rail networks in other countries. In February 2025, Spain agreed to a financial deal exceeding 750 million euros to purchase 40 trains for Morocco's national rail network, ONCF. This initiative, facilitated through an agreement between the Spanish Official Credit Institute and ONCF, aims to enhance infrastructure in preparation for the 2030 World Cup, co-hosted by Spain, Portugal, and Morocco.

In addition, Spain has committed 190 million euros in 2019 for the construction of the Casablanca tram, awarded to the Spanish company 'Alstom España'. Egypt has also received significant funding for its transportation sector, including 159 million euros in 2021 for the renovation of Cairo's first metro line, followed by 200 million euros in 2022 for purchasing Talgo trains. In 2024, 228 million euros were allocated for materials for Cairo's metro, and in December 2025, the Spanish cabinet approved two additional loans totaling 112.78 million euros for maintenance and spare parts for Cairo's metro lines.

Uzbekistan received a 57 million euro loan in 2019 for a rail project linked to Talgo. Officials clarified that these funds are repayable loans, not free grants, and are tied to supporting the internationalization of Spanish companies, meaning they do not represent a net transfer of resources without compensation.

In response to the controversy, Pedro Sánchez, Spain's Prime Minister, defended his government's record before Congress in February, highlighting an increase in annual investment in rail infrastructure from 1.7 billion euros in 2018 to nearly 5 billion euros in 2025.