How Spain’s economy became a European hope

That modernization process is supported by post-pandemic recovery funding from the EU’s next-generation programme. Spain is expected to receive up to 163 billion euros ($169 billion, £136 billion) by 2026, making it the largest recipient of these funds along with Italy.

Spain is investing money in the national railway system, low-emission areas of towns and cities, the electric vehicle industry and subsidies to the small and medium-sized enterprises.

“Public spending is high and I’m responsible for about half of the growth since the pandemic,” said María Gesús Valdemoros, a lecturer in economics at the IESE business school in Spain.

Other major European economies have seen their growth be hampered by greater trust than industry Spain. She says, “they are suffering from a lot at this time due to factors such as high energy costs, China and other Asian countries. The cost of a more sustainable environmental model and the transition to trade protectionism.”

Since Covid, other major economic challenges for Spain have been the cost-of-living crisis caused by the supply chain bottleneck and the 2022 Russian invasion of Ukraine. Energy prices hit the Spaniards particularly hard, but by the end of 2024 it had It’s back to 2.8%., External

Madrid believes that subsidies have been introduced to reduce fuel consumption costs, reduce the impact of public transport use of mitigating the impact of rising energy prices, and reduce some increases to the minimum wage. Masu.

During the European energy crisis, Spain and Portugal will negotiate with Brussels with the so-called “Iberian exception” to reduce the price of gas used to generate electricity to reduce consumer bills. It’s done.

Cuerpo argues that such measures have helped counter economic disruption to traditional Spanish vulnerabilities.

“Spain has proven resilient due to its successive shocks, including the inflation shock that comes with the war in Ukraine,” he said. “And I think this is part of the overall protective shield we’ve put in place for our consumers and businesses.”