On Friday, executives from four leading Spanish companies opened the second day of the fair, during the La Toja-Atlantic Link Forum. The discussions centered on political stability, legal security, and transforming the production model with the aim of bringing Spain closer to Europe in terms of sustainability, efficiency, and research and development.
Highlights from the colloquium titled An agenda for Spain were guided by an IE Business School professor. Attendees included the president of Abanca, Juan Carlos Escotet; the CEO of Iberdrola Spain, Mario Ruiz-Tagle; the CEO of IAG Group, Luis Gallego; and Deloitte Spain’s president, Héctor Flórez. The dialogue explored how Spain can align with European partners while ensuring strong national leadership.
Baena attended the event at Illa da Toja in O Grove, in the same setting where political discussions were unfolding in Congress. The focus turned to the uncertain global economy, shaped by lingering effects from the financial crisis, the Covid-19 pandemic, and the war in Ukraine. Observers noted that many of the financial shocks seen over the last century occurred in the last decade.
In this context, Abanca cautioned that Spain faces real difficulties in transforming its production model. Data presented indicated a 14 percent drop in productivity relative to the European average after the Covid disruption, and the sector’s share of GDP had fallen to about 15 percent, five points below its level from 15 years earlier when the European average hovered around 20 percent. These numbers underscore the need for structural reform to reignite growth.
The conversation emphasized that the necessary transformation requires European leadership and momentum. While supporting European integration, the speakers warned against overemphasizing Europeanism to the point of neglecting Spain’s strategic ties with Latin America. The United States and China are positioned to play influential roles in this landscape.
Regarding Spain’s banking sector, Escotet noted a notable shift over the past decade, with the industry achieving a high degree of convergence with European standards after receiving European support. He highlighted that this progress has also been tied to the consolidation of the sector and the stabilization of financial markets.
Escotet stressed that future improvements depend on industry actions such as reducing overbuilding and closing excess offices, a move that would also influence employment. He pointed to significant job losses that would need to be managed as part of a broader productivity push.
Bank tax a cautionary tale
Escotet called for moving toward a single European market and a reduction in regulatory fragmentation. He criticized a so-called capital tax on banks as a poor example of policy, arguing that it increases the cost of doing business and hurts competitiveness relative to other European nations, while also undermining investor confidence.
Deloitte Spain noted that the country houses pioneering companies that have invested heavily in transformation, though their footprint remains concentrated in certain sectors that may not reflect the broader economy. The firm’s leadership highlighted a model that could lift productivity but requires more robust innovation and technology adoption.
Héctor Flórez warned that Spain’s innovation and technology intensity is not as high as needed, which constrains long-term growth potential. To unlock higher growth, the economy must shift toward more valuable activities and accelerate transformation across public and private sectors. Growth should be faster and more balanced to better address other challenges as they arise.
Deloitte outlined three key challenges: narrowing the structural productivity gap, implementing reforms that boost public-sector transformation, and fostering a move toward higher-value activities such as tourism and hospitality. The emphasis remained on reducing energy dependence and strengthening commitments to strategic sectors, alongside leveraging European Next Generation funds to accelerate progress.
The CEOs of IAG Group stressed that tourism must be modernized after the Covid downturn. Travel remains a priority, but uncertainty persists about how long demand will stay strong. The leaders acknowledged the need for resilience in the travel sector as conditions evolve.
Ecological transition
Iberdrola Spain’s chief executive focused on the climate and energy transition amid global turmoil. He cautioned against delays in addressing climate change while noting Spain’s current strong position and the opportunities that lie ahead for the energy shift and renewable sources as engines of growth.
Advocating for political compromise and structural reforms, Ruiz-Tagle argued that energy transition should drive growth. He urged supportive policy and an expedited flow of European funds to maximize impact. The call was for realistic, progressive regulation that keeps pace with innovation while safeguarding competitiveness.
In sustainability terms, aviation was highlighted as a sector where growth depends on sustainable aviation fuel (SAF). Although a commitment exists for all aircraft to use SAF by 2030, current guarantees hover around 25 percent, underscoring the need for clear timelines and scalable production.
Gallego warned that aviation will either decarbonize or face existential questions about its future. He stressed the importance of balancing environmental goals with practical industry realities to maintain robust air travel.
The digitalization race
Escotet pressed for a practical revival of Spain’s digital push, arguing that investment in research and development should rise from about 1.4 percent of GDP to align with European and American levels. He warned that the country is losing ground in the digital arena and that the banking sector can play a sustaining role in this transition.
On sustainability, Abanca’s president reaffirmed the commitment but cautioned against turning banks into a rigid green enforcer. He argued for a balanced approach that respects the broader economic ecosystem and avoids overburdening financial institutions with rigid mandates.
He also criticized existing legislation for being impractical and urged policymakers to adopt more progressive, flexible rules that keep pace with technological advances and market needs.
[Citation: Forum discussions and figures provided by participating organizations and industry observers. Data reflects post-pandemic productivity trends and European integration efforts.]