Spain can’t afford to keep its roads toll-free, says construction leader

Spain can’t afford to keep its roads toll-free, says construction leader

Since 2018, Spain has brought more than a thousand kilometres of motorways back under public management, abolishing tolls across key routes. However, the move has raised questions about sustainability, financing, and long-term competitiveness.

Julián Núñez, president of SEOPAN, the Spanish Association of Construction and Infrastructure Concession Companies, spoke with Euractiv to discuss how the removal of tolls has increased congestion and emissions, straining public finances.

Núñez also outlines a model based on moderate tolling and public-private partnerships that, in his view, could secure stable investment, improve safety, and support Spain’s contribution to Europe’s green transition.

EV: Spain has reverted to public management for more than a thousand kilometres of motorways since 2018. How did this impact emissions, congestion, and competitiveness? What is at stake with this shift?

JN: The first effect of the toll removal has been a sharp rise in traffic. It increased by 39.7 per cent for light vehicles and 89.2 per cent for trucks, representing a total rise of 48.9 per cent. This surge came not only from drivers switching from parallel free roads, but also, in some corridors such as the AP-7, from a shift away from rail.

This brought new challenges: more congestion, faster road wear, higher fuel consumption, more pollution, lower service quality, and longer travel times. When tolls are abolished, road transport becomes cheaper than high-speed rail, encouraging more vehicles on the road.

By 2029, three more concession contracts covering 527.4 kilometres will expire. If the current no-toll policy continues, only four per cent of Spain’s high-capacity road network will remain tolled. The public budget will then face even higher costs. While other countries channel public funds into competitiveness drivers such as research or innovation, Spain is spending inefficiently on roads.

EV: The model doesn’t sound environmentally sustainable, but what about the fiscal side? How has this affected Spain’s ability to attract more investment and meet its climate targets?

JN: It’s not sustainable at all – economically, fiscally, or environmentally. The government lost €409.8 million per year in tax revenue once private concessionaires stopped operating, and now it faces €89.7 million in additional annual maintenance costs. So, we have lower revenues and higher expenses.

The current maintenance deficit in Spain is estimated at €13 billion. At the same time, we must invest heavily in decarbonisation, digitalisation, climate adaptation, road safety, and even dual-use infrastructure. Yet the resources are not there.

Environmentally, there are no incentives for users to buy cleaner vehicles or shift to greener modes such as rail. Only 10 per cent of Spain’s high-capacity roads are tolled, meaning road use is effectively free, while users of other modes pay to use infrastructure: €690 million in rail, €515 million in maritime, and €2.24 billion in airports each year.

The result is clear: road transport carries 95.8 per cent of freight and 84.1 per cent of passengers, while rail carries only 1.2 per cent and 7.3 per cent respectively. Compared to other European countries, Spain’s dependence on roads is disproportionately high – a model that is fiscally and environmentally unsustainable.

EV: Considering this, and the EU’s green objectives, does Spain’s approach risk setting back the bloc’s decarbonisation agenda?

JN: Absolutely. To meet decarbonisation goals, we must encourage cleaner transport, particularly rail. By abolishing tolls, Spain has done the opposite – making road transport even more dominant.

We also lack the funds to deploy an extensive electric charging network. Spain has the third-largest highway system in the world, requiring billions in investment for charging infrastructure. Without a sustainable funding model, who will pay for it? Our current system works against the Green Deal’s objectives.

EV: Given these challenges, what is your solution? How can Spain finance its network while driving innovation and competitiveness?

JN: We don’t have to reinvent the wheel. Most European countries charge for road use through tolls or vignettes. Spain should do the same. We propose a moderate toll system across our 13,000 kilometres of interurban motorways, below the European average: €0.03 per kilometre for light vehicles and €0.14 for heavy vehicles.

Our model, already submitted to the government and the European Commission, would generate over €18 billion in motorway investments. Out of this, around €11.5 billion would be directed to several key areas: €870 million would upgrade the existing network, €1.8 billion would strengthen road safety, and a further €540 million would help develop secure parking areas. The largest share – about €3.7 billion – would go towards building a nationwide electric vehicle charging infrastructure. If renewable energy supply is included, the total investment would rise to nearly €6 billion.

We also plan €2 billion for the environmental transition, such as modernising lighting systems and creating carbon sinks, alongside €1.5 billion to ensure 5G connectivity along 3,000 kilometres of road and €800 million to establish an efficient toll collection system.

Overall, this scheme would generate €38 billion over 25 years, fully covering maintenance while ensuring long-term sustainability.

We also propose harmonising toll rates nationwide. If implemented, this would yield an additional €11 billion over 25 years. The model is built on public-private partnerships with 25-year concessions, enabling faster investment, efficiency, and risk sharing. For success, we need legal certainty and a stable regulatory framework – not only in Spain but across the EU.

EV: You mentioned you’ve already presented this to the government. Has there been any reaction? Could Spain change course?

JN: The proposal requires agreement from both central and regional governments. It’s politically sensitive, and politicians fear public backlash. Many prefer to wait for the European Commission to push for it.

Explaining it to citizens is key. For example, if families travel 3,500 kilometres per year, a €0.03 per kilometre toll equals roughly what they already pay in taxes for road maintenance – around €2 billion annually, which is less than half of what is needed.

So, users wouldn’t pay more overall; they would simply pay directly for what they use, freeing up tax money for education, healthcare, or pensions.

EV: What would be the worst-case scenario if Spain fails to act?

JN: The investment deficit would keep growing by €2 billion per year. We already face a €13 billion backlog. In five years, that would reach €23 billion, undermining road safety, service quality, and Spain’s image as a tourism leader. This is something we cannot accept.

We would also lose competitiveness compared to other European countries that are modernising their infrastructure. The question is: what are our priorities? Roads or essential public services? Spaniards will always choose education, pensions, and healthcare first.

If we truly believe in a united Europe, we must harmonise infrastructure financing across the bloc. This could be easier than harmonising tax policy. The EU must act decisively and establish a common framework for road charging.

EV: Finally, if you had 30 seconds in an elevator with the Spanish prime minister, what would your message be?

JN: Spain has the third-largest highway network in the world and depends heavily on roads. To meet the Green Deal goals by 2030, we must shift from a tax-funded model to a user-funded one. This will bring new income to decarbonise transport without burdening public finances, freeing resources for health, education, and pensions.

Europe also faces uncertainty in its car manufacturing industry. We must invest to stay competitive, encourage the uptake of electric vehicles, and digitalise our roads. Managing 27 countries is complex, but we must recover lost time and strengthen Europe’s competitiveness against China and the United States.

(BM)

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